4 Common policies 05 Transport policy
played a crucial role in shaping the EU’s transport policy of the modes of transport. It stressed the importance of through numerous legislative procedures. creating an integrated global transport system. The shift of 2. General attitude emphasis towards environmentally friendly modes of transport, whilst maintaining the competitiveness of road The large majority of MEPs have long since demanded an transport, was approved as was the fair charging of integrated global approach to the common transport infrastructure and external costs for each mode of policy. Parliament’s aforementioned legal action against the transport. Additionally, Parliament demanded that Council did much to bring the common transport policy transport should be given the political and budgetary into being. Alongside fundamental support for the consideration warranted by its strategic character and its liberalisation of the transport markets carried out, the EP role as a service of general interest. Parliament continued to stress the necessity of implementing this supplemented this general approach with a multitude of alongside an all-embracing harmonisation of the prevailing speciic demands and proposals for each individual mode social, tax and technological conditions and of safety of transport, transport safety, the schedule, and inancing of standards. Moreover, the EP regularly supported the model the European transport network as well as better of sustainable mobility with speciic proposals and coordination with other EU policy areas. The same applies demands. for the further transport-related topics of intermodality, On 12 February 2003, Parliament adopted a resolution on research, development and new technologies. The the Commission’s White Paper ‘European Transport Policy Commission has already taken up many of these themes in for 2010: a time to decide’. The resolution stressed that the its most recent legislative proposals. idea of sustainability must be the foundation and the standard for the European Transport Policy. Parliament g Nils DANKLEFSEN shared the Commission’s analysis as regards the magnitude 09/2006 of problems relating to transport and the unequal growth
4.5.2. Land transport: market access
Legal basis agreements and had also been subject to restrictions, the Title V of the EC Treaty, and in particular Article 71. new regulation abolished all quantitative restrictions (quotas) and price regulations as of 1 January 1993. Since then, access to the market has been subject only to Objectives qualitative requirements that have to be met in order for a To create a single transport market by facilitating the carrier to be granted a Community authorisation, which is exercise, in practice, of freedom of establishment and issued by the Member State in which the company is freedom to provide services throughout the Community. established and which must be recognised by all the other Member States. Achievements Regulation (EC) No 3916/90 of 21 December 1990 A. Road transport introduced a ‘crisis mechanism’ in the event of serious 1. Opening up the freight transport market disruption of the market. (a) International freight transport (b) Cabotage Regulation (EEC) No 881/92 of 26 March 1992 consolidated Rules on so-called ‘cabotage’, i.e. the operation of transport existing legislation on international transport between services within a Member State by a carrier established in Member States and laid down deinitive arrangements on another Member State, have been laid down separately in access to the international freight transport market. The Council Regulation (EEC) No 3118/93 of 25 October 1993. rules apply to transport from or to a Member State or to This regulation introduced unrestricted access to the transport passing through one or more Member States. market for this type of road freight transport operation and Whereas, previously, transport between two Member lifted all existing quantitative restrictions as from 1998. In States had only been possible on the basis of bilateral the case of Member States acceding in 2004 (with the
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01_2006_4661_txt_EN.indd 201 30-10-2007 14:55:03 exception of Malta, Cyprus and Slovenia), the Accession It lays down the principle of the right of a railway Treaties provided, however, for staggered transitional undertaking in a Member State to have access to the periods of up to ive years. infrastructure in other Member States. The rail market has The above legal framework created the conditions for a also been further opened up by two so-called ‘rail liberalised road freight transport market in the European infrastructure packages’. Union. In order to create fair conditions of competition, Directive 91/440/EEC has been amended by Directive further harmonisation was, however, needed in terms of 2001/12/EC of 26 February 2001. The directive provided for social, technical and iscal conditions ("4.5.3.). access, from March 2003, by international freight transport 2. Opening up the passenger transport market services to the Trans-European Rail Freight Network. From 15 March 2008 the whole of the European network for (a) International passenger transport international rail freight services was to be opened up. In In contrast to road freight transport, progress in opening addition, the directive provided for the introduction of up the market for passenger transport services has been separate organisational units for the provision of rail slower. transport services and the operation of infrastructure, as Regulation (EC) No 684/92 of 16 March 1992 helped open well as introducing separate accounting for passenger and up the market for international coach and bus services, by freight transport services. The aim was to ensure that the permitting all carriers from the Community to operate allocation of infrastructure capacity, the levying of charges international passenger transport services between for use and the granting of authorisations is carried out Member States. The regulation was supplemented and independently of the provision of transport services, and revised by Regulation (EC) No 11/98 of 9 January 1998, to ensure balanced, non-discriminatory access to rail which introduced a Community licence for commercial infrastructure. Under the second rail infrastructure carriers that are entitled to carry persons by coach and bus package, the opening up of the market was taken a step in their country of establishment. Carriers must keep the further by Directive 2004/51/EC of 29 April 2004. The full Community licence with them as proof that they are opening up of the freight transport market, including entitled to operate services in their home country. cabotage, is now to take place from 1 January 2007. The International regular services also require authorisation, agreement on the second rail infrastructure package which is issued under a simpliied procedure. included a declaration by the European Parliament (EP/ (b) National transport (cabotage) Parliament) and the Council of Ministers that the aim was to open up the market for international rail passenger Regulation (EC) No 12/98 of 11 December 1997 has services by 2010. opened up the market for occasional services (by coach and bus), regular special services covered by a contract (b) Allocation of infrastructure capacity between the organiser and the carrier (such as for the Directive 95/19/EC of 19 June 1995 aimed to guarantee fair transport of workers or students) and regular services and non-discriminatory access to infrastructure. An operated as part of an international service. important aspect was the requirement to set up a system The market has not as yet been opened up for the following for the charging of infrastructure fees based on actual costs, services: national services operated independently of an with the fees being collected by an independent body. As international service and urban, suburban and regional part of the irst railway package, this directive was replaced services, even when supplied as part of an international by Directive 2001/14/EC of 26 February 2001, which gives a service. Non-resident carriers may be refused permission by more precise deinition of railway undertakings’ rights in the competent authorities to operate such services. relation to the allocation of infrastructure capacity, and introduces a procedure for alleviating capacity constraints. B. Rail transport With the adoption of the second railway package, this 1. Legislation directive and Directive 95/18/EC were amended by (a) Access to infrastructure Directive 2004/49/EC of 29 April 2004. The aim was to Directive 91/440/EEC of 29 July 1991 on the development harmonise the legislative framework in the Member States of the Community’s railways requires the Member States: and to develop common safety targets and methods. A system was introduced for the issuing, content and validity — to aford railway undertakings the status of independent of safety certiicates, and the principle of an independent operators and ensure that they are commercially technical investigation in the event of accidents was managed; established. The key elements of common safety systems — to separate the accounts for the operation of for infrastructure managers and railway undertakings were infrastructure and the provision of transport services. also laid down.
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2. Outlook: revitalising the railways Commission proposal of 26 July 2000 proposed replacing In 1996 the Commission already formulated a strategy for this with a new regulation aimed at developing revitalising the railways, which was reinforced in September competition in public passenger transport services, in 2001 by the publication of the White Paper entitled particular public local and regional transport services, with ‘European transport policy for 2010: time to decide’. This the help of compulsory public tendering. The proposal was comprises the following main elements: replaced in July 2005 by a new Commission proposal [COM(2005) 319], which is currently going through the — the opening up of national freight markets to cabotage; legislative procedures in the Council and the EP. — the establishment of a high safety level; — the development of interoperability; Role of the European Parliament — the gradual opening up of international passenger In the area of road transport, Parliament has called for, and services; supported, the gradual opening up of the market for road freight and passenger transport operations in numerous — the promotion of measures relating to quality of resolutions. At the same time, it has repeatedly emphasised services and strengthening of customer rights; that liberalisation must go hand in hand with — the creation of a European agency for safety and harmonisation, including in the area of social aspects and interoperability. transport safety. Thanks to the adoption of the irst and second railway In the area of rail transport, Parliament has also repeatedly packages, signiicant progress has been made in recent advocated the gradual opening up of national markets, years in revitalising the railways. Many of the obstacles in taking proper account of social aspects, and urged the the way of an integrated European railway area have been Member States to step up their eforts. Speciically: gradually removed. However, European railways still face — during the legislative procedures for the irst and considerable challenges if they are to maintain their current second railway packages, Parliament successfully share of total traic volume and increase it in the medium pressed for rail transport markets to be opened up more term. In the area of rail freight transport this will depend on quickly than originally envisaged by the Council of legislation already adopted being properly transposed into Ministers; national law and applied in all of the Member States. — Parliament has supported the other key elements of the In the area of rail passenger transport the opening up of strategy for revitalising the railways and creating an the market is still far from a reality. For that reason the integrated European railway area with a view to making Commission submitted a third railway package on 3 March a major contribution to strengthening rail transport, 2004, proposing, in particular, the opening up of the which is an environmentally-friendly mode of transport. market for international passenger services, including cabotage, by 1 January 2010, the strengthening of More recently Parliament has concentrated on the opening passenger rights and a directive on the certiication of train up of the market for urban, suburban and regional services. drivers. This third railway package is currently going In November 2001 Parliament substantially amended the through the legislative procedures in the Council of Commission proposal concerning such services by placing Ministers and the EP. stronger emphasis on the subsidiarity principle and freedom of choice for the competent authorities and C. Urban, suburban and regional services softening the compulsory tendering requirement. The Urban, suburban and regional rail and road transport Commission subsequently submitted a new proposal services frequently entail public service obligations in the [COM(2005) 319] in July 2005. Member States and are often provided by public companies. The main legislation governing this area is g Nils DANKLEFSEN Regulation (EEC) No 1191/69 of 26 June 1969 (as amended 09/2006 by Regulation (EEC) No 1893/91 of 20 June 1991). A
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Legal basis 2006 (known as the ‘Infrastructure Charging Directive’ or "4.5.1. ‘Eurovignette Directive’). Apart from harmonisation of rates in all Member States and uniform methods for calculating infrastructure costs, the new directive places far greater Objectives emphasis on the ‘polluter pays’ principle and the A common transport policy aimed at establishing fair internalisation of external costs. It provides for greater conditions of competition and guaranteeing freedom to diferentiation between charges, taking account of provide services implies the need to harmonise Member environmental aspects or congestion, and consequently States’ transport legislation. This particularly applies to provides the Member States with an instrument for traic taxation (VAT, vehicle taxes and fuel taxes), technical management. In certain regions additional toll charges may speciications (maximum authorised dimensions and be levied in order to tackle the problem of environmental weights, safety standards), social provisions and rules damage, including poor air quality, or to invest in more concerning other forms of State intervention, such as environmentally-friendly modes of transport such as railways. subsidies. By not later than two years following the entry into force of In the area of rail transport, this above all concerns the directive, the Commission is to present a generally technical requirements. Signiicant diferences between the applicable, transparent and comprehensible model for the individual Member States with regard to technical assessment of all external costs, including environment, requirements, safety rules, signalling, track gauge and noise, congestion and health-related costs, to serve as the control systems continue to stand in the way of creating a basis for future calculations of infrastructure charges. This is — legally and technically — integrated European railway to be accompanied by a strategy for the stepwise area, and are making it more diicult for the railway implementation of the model for all modes of transport. industry to compete with other modes of transport. 2. Technical harmonisation Gradual harmonisation of these technical requirements is (a) Maximum authorised dimensions and weights indispensable in order to establish interoperability between Directive 96/53/EC of 25 July 1996 laying down maximum the individual national rail systems. dimensions and weights settled an issue which is a Diferent authorisation procedures and measures on fundamental one for competition between transport environmental and consumer protection also necessitate a operators. In addition, Directive 97/27/EC concerning the degree of harmonisation in order to avoid distortion of masses and dimensions of certain categories of motor competition and make it easier for new companies to vehicles and their trailers was adopted on 22 July 1997. access the network. Directive 2002/7/EC of 18 February 2002, amending Directive 96/53/EC, harmonises the maximum dimensions Achievements of buses in the European Union. D. Road transport (b) Roadworthiness tests 1. Tax harmonisation Directive 96/96/EC of 20 December 1996 concerns the approximation of the Member States’ legislation relating to (a) VAT and excise duty roadworthiness tests for motor vehicles and their trailers. It General agreement has been reached on the levying of VAT provides for regular compulsory testing of motor vehicles on transport services. There has also been some for the transport of passengers or goods. Such tests include harmonisation of excise duties on fuels, with the adoption exhaust emissions and speed limitation devices where of Council Directives 92/81/EEC and 92/82/EEC of 19 these are compulsory. Directive 2000/30/EC of 6 June 2000 October 1992. introduces unannounced technical roadside inspections, in (b) Charging of infrastructure costs order to detect irregularities that may be covered up in Directive 99/62/EC of 17 June 1999 on the charging of heavy anticipation of the annual test. goods vehicles for the use of certain infrastructures laid 3. Administrative harmonisation down provisions on tolls and charges for the use of (a) Drivers’ legal obligations motorways and multi-lane roads, bridges, tunnels and Directive 91/439/EEC of 29 June 1991 on driving licences mountain passes, with minimum and maximum rates. This harmonises the format of licences and categories of directive was amended by Directive 2006/38/EC of 17 May
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vehicles, introduces the principle of mutual recognition penalty measures. In addition, the new regulation and lays down basic requirements in respect of health and amended Regulation (EEC) No 3821/85 of 20 December competence. Directive 96/47/EC of 23 July 1996 provides 1985, deinitively introducing the digital tachograph and for an alternative ‘credit card’ format for driving licences. In making it easier for checks to be made on infringements in October 2003 the Commission submitted a proposal on future. recasting the directive on driving licences Directive 2006/22/EC of 15 March 2006 is an accompanying [COM (2003) 621]. measure which lays down minimum requirements and the Regulation (EC) No 484/2002 of 1 March 2002 introduced a minimum number of checks to be carried out by Member uniform driver attestation. The attestation conirms that a States in connection with monitoring compliance with the lorry driver engaged in international freight transport is above regulations. employed in accordance with the legislation and (c) Users administrative regulations of the Member State in which The Council has adopted Recommendation 98/376/EC of 4 the carrier is established. The driver attestation is aimed at June 1998 on a parking card for disabled people. Since 1 countering social dumping and distortion of competition. January 1999 this has entitled card-holders to use special Directive 2003/59/EC of 15 July 2003 lays down minimum parking spaces throughout the Community. standards for the initial qualiication and periodic training of drivers of certain goods or passenger transport vehicles. E. Rail transport The aim is to ensure that drivers are able to adapt to the 1. Technical harmonisation changing conditions in their ield of work. (a) Interoperability (b) Vehicle registration With the adoption of Directive 96/48/EC of 23 July on the Council Directive 99/37/EC of 29 April 1999 harmonises interoperability of the trans-European high-speed rail vehicle registration documents and simpliies checks on system and Directive 2001/16/EC of 19 March 2001 on the ownership and transfers between residents of two diferent interoperability of the trans-European conventional rail Member States. Council Regulation (EC) No 2411/98 of 3 system, the EU began a process designed to enable the November 1998 on the recognition of the distinguishing through use of the diferent railway systems in the Member sign of the Member State in which motor vehicles are States and to allow a smooth, safe passage from one registered makes it compulsory for number plates to show Member State network to another. In order to implement the European lag and the international abbreviation for this legislation, a number of technical solutions (so-called the Member State of registration. ‘technical speciications for interoperability’ or TSIs) have already been drawn up, focusing initially on key aspects 4. Social harmonisation such as control/command, signalling, telematic (a) Working time applications for freight services, qualiications of staf The transport sector was excluded from Directive 93/104/ engaged in international transport operations, and noise EC of 23 November 1993 on working time. Directive problems. 2002/15/EC of 11 March 2002 on the organisation of the The two directives have been amended by Directive working time of persons performing mobile road transport 2004/50/EC of 29 April 2004 and brought up to date with activities is aimed at establishing minimum requirements in the latest developments in technology. At the same time, relation to working time in order to improve the health and the scope of the directive on the conventional rail system safety of drivers. Under the directive, average weekly has been extended to include the whole of the European working time is 48 hours. This may be increased to 60 hours rail network, in order to meet the demands posed by the provided that an average of 48 hours per week is not full opening up of the rail network to freight transport exceeded in any four-month period. services scheduled for 2007. In March 2005, (b) Driving time representatives of the rail industry and the Commission Regulation (EEC) No 3820/85 of 20 December 1985 laid signed a memorandum of understanding on the down rules on driving time, including maximum authorised deployment of the European Rail Traic Management periods of continuous driving, rest periods and driving time System (ERTMS). The ERTMS is designed to harmonise per week. It has been replaced by Regulation (EC) No European signalling systems and introduce a uniform 561/2006 of 15 March 2006, which amended the rules on automatic speed control system, based on the latest driving and rest periods for professional drivers in favour of developments in telecommunications technology. A the introduction of more frequent rest periods, a reduction timescale of 10 to 12 years has been set for universally in exemptions and improved, simpliied checking and introducing the ERTMS.
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01_2006_4661_txt_EN.indd 205 30-10-2007 14:55:04 (b) European Railway Agency infrastructure in all of the Member States, a railway In order to assist the Commission and the Member States undertaking must have an operating licence. The licence is in improving the interoperability and safety of the issued by the Member State in which the company is European rail network, a European Railway Agency, with its established, subject to compliance with certain common seat in Lille and Valenciennes in France, has been set up conditions (good repute, inancial itness and professional under Regulation (EC) No 881/2004 of 1 May 2004, within competence), and is valid throughout the Community. The the framework of the second railway package. The main directive has been amended by Directive 2001/13/EC of 26 task of the agency is the gradual harmonisation, February 2001, which extended the provisions on the registration and monitoring of technical speciications issuing of licences to cover almost all railway undertakings (TSIs) and the preparation of common safety targets for with just a few exceptions. In addition, the safety, economic European railways. The agency itself has no decision- and inancial conditions required to be met in order for a making powers, but, with the assistance of groups of licence to be granted, and the licensing procedure, were experts, draws up draft decisions for the Commission. laid down. 2. Social harmonisation Directive 2005/47/EC of 18 July 2005 lays down the Role of the European Parliament working conditions of mobile workers engaged in The European Parliament (Parliament) has used its interoperable cross-border services in the railway sector. It legislative powers to support, in principle, most of the is based on an agreement between the European social Commission’s proposals for harmonisation, whilst at the partners in the rail industry. same time emphasising certain aspects to which it attaches particular importance. In March 2004, as part of the third railway package, the Commission submitted a proposal on the certiication of — During the legislative procedure on the Infrastructure train crews operating locomotives and trains on the Charging Directive in 2005, Parliament successfully Community’s rail network [COM(2004) 142]. In addition to pressed for the scope of the directive to be extended to harmonisation in respect of recognition of the include all vehicles over 3.5 tonnes, and for the qualiications of drivers and other crew, the proposal aims environmental aspects of the directive to be to clarify responsibilities with regard to speciic training strengthened. In negotiations with the Council of relating to the route operated, the equipment used and the Ministers, Parliament was able, in particular, to operational and safety procedures speciic to a particular successfully argue that the new directive should include company. a roadmap for the internalisation of external costs for all modes of transport. 3. Passenger rights Also as part of the third railway package, the Commission — In the area of social legislation, Parliament made a has proposed a regulation concerning the protection of substantial contribution to improving and simplifying the rights of international rail passengers [COM(2004) 143]. the regulation on driving and rest time. In addition, The proposal covers minimum standards for information for Parliament secured a signiicant increase in checks on passengers, compensation in the event of delays or driving and rest time. In the negotiations on the accidents and assistance for individuals with reduced working time directive, Parliament successfully argued mobility. that the provisions should apply not only to employed drivers but also, from 2009, to self-employed drivers, 4. Administrative harmonisation who make up some 40 % of all drivers. (a) Admission to the occupation (operating licences) Directive 95/18/EC of 19 June 1995 provides that, in order g Nils DANKLEFSEN to be allowed to exercise its right of access to the 09/2006
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4.5.4. Road transport: traic and safety regulations
Legal basis 2. Technical condition of vehicles Article 71 of the EC Treaty Harmonisation of national legal provisions on the technical condition of vehicles concerns mainly the following: Objectives — vehicle testing (Directive 77/143/EEC of 29 December The aim is to improve road safety and, in this way, 1976, repeatedly modiied); contribute to long-term sustainable mobility. Every year in — compulsory use of seat belts in motor vehicles under the EU there are still more than 40 000 people killed and 3.5 tonnes (Directive 91/671/EEC of 16 December 1991). 1.7 million injured in 1.3 million accidents. There are two This directive was modiied by Directive 2003/20/EC of diferent areas of application of the safety concept: in 8 April 2003, which provides for children to be relation to road users and people on board vehicles protected by the use of special child restraint systems. It (passengers and staf), and in relation to goods transport also stipulates that seat belts must be worn in all and people and places involved with the transport of vehicles in which they are itted, which afects coaches, dangerous goods. for example; — Directive 92/6/EEC of 10 February 1992 which Achievements introduced compulsory installation of speed limitation 1. General devices in motor vehicles over 3.5 tonnes. Directive 2000/30/EC of 6 June 2000 introduced the possibility of In June 2003 the Commission published the ‘European roadside technical inspection of commercial vehicles. Road Safety Action Programme 2003 to 2010’. In 1993 and Directive 2002/85/EC of 5 November 2002 extended the 1997 the Commission had already proposed action obligation to use speed limitation devices to all vehicles programmes for road safety. The new action programme over 3.5 tonnes; endorsed the objective set out in 2001 in the White Paper on transport policy, to halve the number of road deaths in — Directive 2003/102/EC of 17 November 2003 on the the EU by 2010. The action programme envisages a protection of pedestrians and other vulnerable road package of measures in various areas, including: users before and in the event of a collision provided for less dangerous frontal structures on new vehicles from — improving road users’ behaviour, by pursuing eforts to 2005. Directive 2005/66/EC of 26 October 2005 on the combat dangerous practices, increased enforcement of use of frontal protection systems on motor vehicles the rules and harmonisation of penalties, and aims to provide better protection for road users in the dissemination of exemplary practices; event of a collision with a vehicle itted with a frontal — technical measures to make vehicles safer, in particular protection system; making it compulsory to wear seat belts in coaches, a — Directive 2003/97/EC of 10 November 2003 stipulates uniied system for ixing child seats, improved crash that from 1 January 2007, all HGVs registered in the EU protection in vehicles, using modern communications must be itted with additional rear-view mirrors or and information technologies (‘eSafety’) to develop devices to ensure vision in the ‘blind spot’. traic guidance and information systems, and automatic emergency calls when accidents occur; 3. Transport of dangerous goods — technical measures to improve the safety of road Directive 94/55/EC of 21 November 1994 extended to infrastructure. national transport the rules for international transport in the European agreement concerning the international carriage In February 2006 the Commission published a of dangerous goods by road (ADR). Directive 95/50/EC of 6 Communication on a mid-term review of the European October 1995 introduced uniform procedures for checks. Road Safety Action Programme (COM(2006) 74). This shows Directive 2001/26/EC of 7 May 2001 modiied Directive that, despite a reduction in the number of road deaths, 95/50/EC, to introduce uniform procedures for checks on the considerable further eforts are needed if the main aim of transport of dangerous goods by road. the action programme — halving the number of road deaths by 2010 — is to be achieved. Council Directive 96/35/EC of 3 June 1996 on the appointment and vocational qualiication of safety advisers
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01_2006_4661_txt_EN.indd 207 30-10-2007 14:55:04 for the transport of dangerous goods by road, rail and In its Recommendation 2004/345/EC to the Member States, inland waterway obliges every undertaking concerned the Commission proposed procedures for enforcement of with this transport to appoint one or more suitably the rules on drink driving, speeding and the use of seat qualiied safety advisers to monitor compliance with the belts. rules. 4. eSafety Role of the European Parliament In its communication ‘Information and communications In many resolutions the European Parliament (EP) has technologies for safe and intelligent vehicles’ underlined the importance of road safety in the (COM(2003) 542) of 15 September 2003, the Commission Community. Most recently it expressed its views in its expresses its intention of supporting the development, resolution of 29 September 2005 on the Commission’s large-scale deployment and use of modern safety systems latest action programme. Parliament endorsed the based on new information and communications Commission’s guiding principles for this programme and technologies. On this basis what is known as the eSafety called for further measures such as a Europe-wide road Initiative was introduced. Intelligent vehicle safety systems safety campaign, more uniform road signs and increased include automatic speed adjusters, devices to prevent use of new technologies such as: (a) seat belt reminders; (b) involuntary lane departures, collision warning devices and advanced restraint systems; (c) electronic speed limitation automatic emergency call systems in the event of an systems; (d) ‘alcolocks’, which block the car if the driver is accident (eCall). drunk; and (e) new cars to be itted with an automatic emergency call system (eCall) from 2009. Parliament also 5. Safety of road infrastructure called on the Commission to propose legislative measures Directive 2004/54/EC of 29 April 2004 lays down minimum with regard to maximum alcohol limits (in line with safety requirements for tunnels in the Trans-European Road Parliament’s recommendation of 0.5 mg/ml for adults and Network. These rules are concerned with the organisational, 0.2 mg/ml for new drivers). technical and operational aspects of tunnels. The directive In the context of its legislative powers, Parliament basically aims to impose new and harmonised safety rules on all supported the Commission proposals, and at the same tunnels longer than 500 metres that are in use, under time contributed a number of proposals for improvements construction or being planned. to the legislation. For example in the negotiations on the 6. Miscellaneous directive on safety in tunnels, Parliament improved the The Commission has introduced a databank on road traic provisions on emergency exits, lighting and escape routes. accidents (CARE), which makes it possible to undertake In addition the directive takes account of Parliament’s calls comparative studies of the circumstances in which for more attention to be paid to the needs of disabled accidents occur and facilitates dissemination of information people in the construction of emergency exits. and proposed solutions. In its Recommendation 2001/115/EC of 17 January 2001 to g Nils DANKLEFSEN 09/2006 the Member States on the maximum permitted blood alcohol content for drivers, the Commission proposed a maximum of 0.5 mg/ml for all vehicle drivers and 0.2 mg/ ml for HGV drivers.
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4.5.5. Air transport: market access
Legal basis the negotiation and implementation of air service Article 80 of the EC Treaty agreements. Ensuring a harmonised approach in the negotiation, implementation and application of bilateral agreements is an integral part of the regulation. Provision is Objectives made for standard clauses to guarantee the agreements’ — Creating an internal aviation market on Community compliance with Community law. In addition, under the territory; so-called horizontal mandate the Commission can — Taking account of the global aspect of air transport by negotiate Community agreements with third countries. In means of a coherent Community aviation policy the last few years, several agreements of this kind have towards third countries; been signed (including with Chile, Singapore, Ukraine, Croatia and Georgia) or concluded (for instance with — Improving the competitiveness of European airlines. Australia, Malaysia, Morocco and Lebanon). The Community is currently in talks with the United States on the creation of Achievements an ‘open aviation area’. A. Internal aviation market B. Additional achievements Following the adoption and entry into force of a total of 1. Access to the groundhandling market three ‘liberalisation packages’, a Community aviation market The groundhandling market is governed by Directive has been in place since 1997. 96/67/EC of 15 October 1996. Prior to this, the provision of 1. Harmonisation of professional requirements groundhandling services at airports within the EU was a Regulation (EEC) No 2407/92 of 23 July 1992 set out monopoly controlled by a small number of service requirements for the awarding of air carrier licences. Air providers. With the entry into force of this directive, these operators must be based in a European Union Member services were gradually opened up to competition and full State, be directly or indirectly monitored by a Member liberalisation was achieved in December 2002. The directive State, or national authorities of a Member State, and is primarily concerned with introducing free market access provide air transport as their main occupation. for the providers of groundhandling services. Furthermore, for certain categories of service there must be a choice of 2. Freedom of market access at least two providers at the larger airports in the EU. Regulation (EEC) No 2408/92 of 23 July 1992 abolished the restrictions regarding cabotage with efect from 1 April 2. Reservation systems 1997, permitting air carriers from all Member States access (a) Computer reservation systems to all intra-Community routes for the domestic and Computer reservation systems are crucial to the eiciency international transportation of passengers, cargo and mail. of air transport. There is strong interest from passengers 3. Open Skies agreements with third countries wishing to ind the best-value fares as well as from smaller companies anxious to have access to the system. Following the emergence of the internal aviation market in Regulation (EEC) No 2299/89 of 24 July 1989 on a code of 1992, the Commission was of the opinion that Member conduct for computerised reservation systems was, States should cease to conclude bilateral agreements with therefore, adopted. Experiences of applying this code and third countries. Since 1994, the United States had been developments in information technology, in particular as seeking ‘Open Skies agreements’ with other countries. regards the Internet, made it necessary to amend the Following a case brought by the Commission, the regulation to meet the objectives more efectively and to European Court of Justice ruled on 5 November 2002 that extend the use of computer reservation systems (CRS) to sections of the bilateral Open Skies agreements that eight rail travel. This was achieved with Council Regulation (EC) EU Member States had concluded with the United States No 323/99 of 8 February 1999. were incompatible with Community law. It also stated that Member States were not authorised to enter into obligations with third countries in areas in which common Role of the European Parliament rules applied, if the agreements in question would afect The European Parliament (EP/Parliament) has supported those common rules. The Court’s judgment provided the the development of the Community aviation market. It basis for Regulation (EC) No 847/2004 of 29 April 2004 on therefore argued in favour of ‘code-sharing’ and the
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01_2006_4661_txt_EN.indd 209 30-10-2007 14:55:04 extension of access rights, including to cabotage (see its Russia, Parliament stressed that no comprehensive resolution of 14 February 1995 on the Commission agreement should be concluded without the immediate communication ‘The way forward for civil aviation in and complete abolition of Russian overlight charges. Europe’). At the same time, it has recommended that In its resolution of 17 January 2006 on Community external liberalisation should proceed at a cautious pace to take into aviation policy, Parliament insisted on the need for a account its efects with regard to safety, quality of service, coherent strategy for developing a common external fare transparency and employee working conditions. In its aviation policy and outlined the requirements in terms of resolution of 4 May 2000, Parliament insisted that safety market opening, safety standards, social policy and the concerns should remain an underlying principle in all environment. measures and policies in air transport. The recently concluded aviation agreements with third g Nils DANKLEFSEN countries were approved by the EP. However, in its 09/2006 resolution of 17 January 2006 on air transport relations with
4.5.6. Air transport: competition and passenger rights
Legal basis sector, amended by Regulations (EEC) No 2410/92 and (EEC) Article 80(2) of the EC Treaty (ECT), completed by Article No 2411/92, which extended the original provisions to all air 153 of the ECT (consumer protection), the general transport within the Community. Through these provisions, provisions on competition (Articles 81 through 83) and on the Commission was empowered to grant exceptions to the freedom to provide services ("3.2.3). various categories of agreement and concerted practices, subject to certain conditions designed so that competition is not eliminated or unduly restricted. These regulations have Objectives been changed over time and adapted to current The objective is to lay down the procedure for developments (including Regulations (EEC) No 2410/92 and implementing the Treaty’s provisions on competition to air (EEC) No 2411/92 of 23 July 1992 as well as Regulation (EC) transport, taking into account the unique features of the No 1/2003 of 16 December 2002). sector, which to an extent is still characterised by State aid The Community took the global aspect of air transport into for national airlines and airports and also by cartel-related account in Regulations (EC) No 411/2004 of 26 February problems caused by the formation of global alliances. As 2004 and (EC) No 868/2004 of 21 April 2004. It thereby well as the creation of fair conditions of competition, the created the necessary legal basis for the application of the competition policy is intended to encourage airlines to rules of air traic competition between the Community provide passengers with a cost-eicient and high-quality and third countries, in order to avoid distortion to service. Recently, the European air transport policy has competition in the form of State aid or dishonest pricing concentrated on the strengthening of consumer rights policies from third-country companies. with regard to safety or overbooking. 2. State aid Achievements In 1984, the Commission established the criteria for the evaluation of State aid to airlines. In 1993, a committee of A. Competition civil aviation experts was set up which issued 1. Agreements and business practices recommendations on State aid in its report of 1 February This subject is governed by the regulations of 14 December 2004. According to these recommendations, the provision 1987, (EEC) No 3975/87, laying down the procedures for the of State aid must meet certain conditions: application of the rules on competition to undertakings in — it must be a ‘one-of’ measure; the air transport sector, and (EEC) No 3976/87 on the application of Article 85(3) of the Treaty to certain categories — it must be linked to a restructuring plan, which will be of agreements and concerted practices in the air transport assessed and monitored by
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— independent experts appointed by the Commission, event of denied boarding, and of cancellation or long delay and should ultimately lead to privatisation; of lights. It was aimed at securing a higher level of — the relevant government must undertake to refrain protection for passengers and as these events can cause from interfering in the commercial serious inconvenience, passengers have the right to claim compensation. In the event of denied boarding due to — decisions of the airline, which in turn must not use the overbooking or cancellation of lights, passengers’ rights aid to inance new capacities; include reimbursement of their tickets, a free return light — the interests of other airlines must not be adversely to the point of departure or a later light to their afected. destination, or compensation (staggered up to EUR 600 for lights of over 3 500 km). Additionally, meals, refreshments, In September 2005, the Commission approved guidelines means of telecommunication and hotel accommodation if on inancing airports and on granting start-up aid for necessary must also be made available. In the event of a airlines departing from regional airports. delay, passengers have the right to compensation 3. Tarifs depending on the length of the delay. The matter is currently governed by Council Regulation 2. Black list of unsafe airlines (EEC) No 2409/92 on fares and rates for air services (for The Council and the European Parliament (EP/Parliament) intra-Community routes alone), part of the ‘air transport drew up a blacklist of unsafe airlines in Regulation (EC) No package’ adopted in June 1992. As a rule, airlines can set 2111/2005 of 14 December 2005, thus strengthening their own prices, but the regulation contains a number of passengers’ right to information. The EU-wide black list will safeguard clauses to avoid overly high or low (dumping) be updated at least every three months. It contains the prices. names of all airlines where there is evidence of serious 4. Allocation of timetable slots safety defects or where it has become clear that the The continuous growth of air transport over the past authorities responsible for an airline are unwilling or unable decade has increased the pressure on airport capacity. to implement safety norms or oversee an aircraft. Airlines in Regulation (EEC) No 95/93 of 18 January 1993 was the irst this blacklist are prohibited from lying in EU territory. It will step towards establishing non-discriminatory rules for the no longer be possible for an aircraft which has been allocation of time slots for take-ofs and landings at banned from taking of or landing in one Member State to Community airports. As the procedure was not regulated ly to another Member State. suiciently clearly and was not uniformly applied in the The ticket vendor is required — regardless of how the Member States, there was a pressing need for an booking is made — to inform passengers of the identity of amendment. The new regulation of 21 April 2004 ((EC) No the airline with which they will ly, as soon as this has been 793/2004) aimed primarily at redeining these timeslots as determined. Passengers have the right to reimbursement a right of usage. According to the regulation, slots or an equivalent light, in the event of the reserved airline represent a right to use the airport infrastructure for take- being added to the blacklist after the booking was made. ofs and landings at speciied times and on speciied days, with no right of ownership. A coordinator, appointed by 3. Rights of passengers with reduced mobility the particular airport, is responsible for the allocation of The Council of Ministers and the EP agreed on a series of slots. Whilst taking into account the interests of established rights for passengers with reduced mobility in Regulation airlines, this regulation facilitated market access for new (EC) No 1107/2006 of 5 July 2006. The regulation includes competitors, as 50 % of timeslots were to be made the following elements: available to them. — the creation in all airports with over 150 000 passengers B. Passenger rights of designated points which people with reduced mobility can approach to request assistance. They 1. Overbooking, denied boarding, delays cannot be refused boarding, except in a few very strictly The irst common rules for a system of compensation deined cases; payment in the case of denied boarding on scheduled lights were set out in Regulation (EEC) No 295/91 of — the airport operators are responsible for the provision of February 4 1991. Package lights were governed by these services free of charge. Those afected cannot be Directive 90/314/EEC. charged for any additional costs. The request for assistance (for example to and from the aircraft) must On 17 February 2005, Regulation (EC) No 261/2004 of 11 be made known by the persons concerned at least 48 February 2004 came into force, establishing common rules hours before departure; on compensation and assistance to passengers in the
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01_2006_4661_txt_EN.indd 211 30-10-2007 14:55:05 — all airlines (according to their passenger share) are to However, it secured improvements for example with regard contribute to the inancing of these services. to the empowerment and independence of the 4. Insurance requirements for aircraft operators coordinator and to market entry chances for new competitors, as well as the introduction of sanctions in the The objective of Regulation (EC) No 785/2004 of 21 April event of misuse of a time slot. 2004 was the harmonisation of the level of insurance in air transport, establishing the minimum levels of insurance In 2005, the EP successfully pushed through the EU-wide cover per passenger and per item of luggage. The black list of unsafe airlines. The Commission’s proposal minimum level of insurance in respect of third-party originally planned 25 diferent lists, one per individual liability was also established. The rules are equally valid for Member State. Under pressure from Parliament, this Community airlines as for non-EU aircraft operators and regulation also considerably strengthened passenger rights apply to damage occurring in light and on the ground. As with regard to information and compensation. For the well as accidents, insurance must also cover the risks of war, transport of passengers with reduced mobility, the EP hijackings, acts of terrorism and sabotage. Aircraft operators insisted successfully during the legislative procedure that are obliged to present insurance certiicates to the the blind, visually impaired, deaf, those with impaired competent Member State authorities. hearing and the mentally handicapped should be included amongst those who must be given help at an airport. Role of the European Parliament On 30 May 2006, in a case brought by the EP, the European In numerous reports and statements, the EP emphasised Court of Justice annulled the EU-US agreement on the use the signiicance of a common air transport policy as well as of passenger data (PNR) in the ight against terrorism and stronger competition between airlines. In the resolution of cross-border crime. The EP brought a nullity suit against this 4 May 2000, Parliament put forward the opinion that the agreement on the grounds that it lacked legal basis and development of the internal market for European air clarity. Additionally, according to the EP, the collection of transport had contributed positively to competition and personal data permitted by the agreement was not that passengers now have at their disposal an extensive proportionate to the need to ight crime and terrorism. In range of lights at often cheaper prices. However, other its subsequent recommendation to the Council, the elements such as delays, overbookings, etc. must not be Parliament did not pronounce itself against passing on permitted to impair the beneits of liberalisation. With personal passenger details in general, where this was regard to State aid, the EP welcomed the end, as necessary in the interest of safety. However, the EP did announced by the Commission, of the transition period for express serious misgivings about the systematic access by State aid for airlines and put forward the view that state authorities to personal data linked to behaviour. This would airlines should be made to exist within an entirely include details such as credit card numbers, e-mail commercial environment. addresses, ailiation to a particular group, frequent lyer information and information on ordinary passengers (i.e. On the subject of time slot allocation, the EP requested in people that are not registered as dangerous or criminal in the same resolution that the Commission should submit a the receiving country). proposal for the revision of the relevant regulation. In the subsequent legislative procedure, the Parliament supported the Commission’s proposal in principle. g Nils DANKLEFSEN 09/2006
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4.5.7. Air transport: air-traic and safety rules
Legal basis European Parliament (EP/Parliament) agreed on the ‘Single Article 80(2) of the EC Treaty. Sky package’. This legislation represents the most signiicant reform of EU aviation policy thus far. It includes a framework regulation setting out overall goals, as well as Objectives three detailed regulations on the organisation and use of The creation of a single aviation market requires a irst-rate airspace, the provision of air navigation services and the air transport system that allows Community air transport to interoperability of the European Air Traic Management operate safely, smoothly and eiciently. This, in turn, Network. The aim was to turn Europe’s sky into an necessitates the application of high uniform safety integrated airspace governed by the same principles and standards by airlines, optimum use of European airspace rules by December 2004. Framework Regulation 549/2004 capacity and a high uniform level of air transport safety. of 10 March deines the overall goals. These include At the end of the 1990s, pressure grew on the Community optimising the use of airspace, establishing Community air to improve the existing air transport system. The reasons for traic management, creating larger and more eicient this were the steady rise in air travel, the fragmentation of operational airspace blocks and increasing lexibility with European airspace, shrinking airport capacity, the regard to civil and military use of airspace. increasing severity of delays and the use for military Service Provision Regulation (EC) No 550/2004 of 10 March purposes of a large section of the airspace. There was, 2004 is intended to ensure the uniform application of therefore, a particular need for (a) higher safety standards, common standards for air navigation services and lays (b) better overall eiciency of air transport and (c) better down rules for the certiication of air navigation service use of airspace capacity. providers. Airspace Regulation (EC) No 551/2004 of 10 March 2004 establishes common procedures for the Achievements design, planning and management of air traic. It restructures the upper airspace according to operational 1. International framework and practical criteria, so that airspace blocks are distinct On 13 December 1960 ive European countries signed the from the borders of Member States. Interoperability International Convention relating to Cooperation for the Regulation (EC) No 552/2004 of 10 March 2004 governs the Safety of Air Navigation, to which 17 countries have now interoperability of the individual systems within the acceded. Extensive amendments to the convention in 1981 European Air Traic Management Network. led to the emergence of the European Organisation for the Safety of Air Navigation, which includes the Permanent 3. European Aviation Safety Agency Commission and the Agency. The term ‘Eurocontrol’ refers Regulation (EC) No 1592/2002 of 15 July 2002 established to both the convention and the organisation. The the European Aviation Safety Agency (EASA). The EASA is organisation is responsible for setting long-term objectives, an executive agency of the European Union based in coordinating national policies and promoting vocational Cologne, Germany. It is responsible for adopting safety training. It also examines amendments to regional plans to rules applicable to products, persons and organisations and be submitted to the International Civil Aviation for conducting inspections and investigations to ensure Organisation (ICAO) and sets and collects route charges on that these rules are being observed. Further tasks of the behalf of the contracting States. EASA include awarding airworthiness certiicates, giving On 8 October 2001 the European Community signed a expert opinions and supporting the Commission in the protocol providing for its accession to Eurocontrol. The drafting of legislative proposals in the ield of air transport. accession aims to ensure consistency between the two and In November 2005, the Commission put forward a proposal to improve the regulatory framework for air traic to extend the EASA’s tasks to cover common rules on air management. operations, pilot licences and the authorisation of third country aircraft. 2. Single European Sky 4. Galileo and Sesar On 10 October 2001, the Commission presented an action programme for the creation of the Single European Sky. In (a) The Commission irst presented its proposal on the the ensuing legislative process, the Council and the satellite navigation system Galileo in February 1999. The aim of the programme is to equip the EU with
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01_2006_4661_txt_EN.indd 213 30-10-2007 14:55:05 independent technology that can be used for a broad 8. Air security range of activities, in particular in the transport ield. Following the attacks of 11 September 2001, Regulation Galileo, which was set up by Council Regulation (EC) No (EC) No 2320/2002 of 16 December 2002 was adopted, 876/2002 of 21 May 2002 as a joint undertaking (by the establishing common standards, measures and Commission and the European Space Agency (ESA)), procedures in the ield of civil aviation security. Some of should be ready for use by 2008. the areas covered by the regulation are passenger (b) A technological component of the Single European Sky, security checks, security restricted areas at airports, staf the Sesar programme aims to develop a new checks, cockpit security, training and air-to-ground generation of European air traic management. The communication. The regulation requires each Member project is to be carried out in three stages: the State to adopt a national civil aviation security Deinition Phase (2005–07), the Development Phase programme. In December 2005, the Commission (2008–13) and the Deployment Phase (2014–20). presented a proposal to revise the regulation. 5. Technical requirements and administrative 9. Dealing with accidents procedures for civil aviation (EU-OPS) (a) Directive 94/56/EC of 21 November 1994 establishing To ensure high safety standards, Regulation (EC) No the fundamental principles governing the investigation 3922/91 of 16 December 1991 set out to harmonise of civil aviation accidents and incidents seeks to provide technical requirements and administrative procedures in the competent authorities with an appropriate legal the ield of civil aviation. At the beginning of 2006, the framework. Council and Parliament agreed to proceed with a revision (b) The Warsaw Convention, which governs air carriers’ of this regulation (not yet published in the Oicial Journal). liability in the event of an accident, covers only This makes the technical requirements and administrative international transport. On 9 October 1997, the procedures (JAR-OPS) drawn up by the Joint Aviation Community adopted Regulation (EC) No 2027/97. It is Authority part of Community law as ‘EU-OPS’. The applicable to accidents that befall Community air regulation sets out detailed rules in a variety of areas, such carriers on domestic or international routes, in which as light and duty time limitations and rest requirements, passenger injury occurs. The liability limit is higher than instruments and equipment, communication and that of the Warsaw Convention. This regulation was navigation equipment, the transport of dangerous goods then amended by Regulation (EC) No 889/2002 of 13 and rules on cabin crew. May 2002. With regard to airline liability in the event of an accident, Community law was brought fully into line 6. Safety of third country aircraft with the Montreal Convention of 28 May 1999. This Directive 2004/36/EC of 21 April 2004 introduced a ensures the uniform application of certain rules harmonised procedure for the monitoring of the regarding international air transport. compliance of third country aircraft with safety standards. When an aircraft from a third country lands at a Role of the European Parliament Community airport, a safety inspection may be carried Parliament has always closely monitored issues relating to out even in the absence of any grounds for suspicion. air safety. In particular, it has advocated the establishment Airlines operating aircraft that have repeatedly been of a single control authority. The EP called for and identiied in the past as having safety laws should be supported the creation of a ‘Single European Sky’ (see, for subject to more frequent inspections. In the event of the example, its resolution of 6 July 2000). In the legislative discovery of safety laws, aircraft could be grounded. To process on this matter, Parliament was able to secure better ensure the best possible monitoring of safety standards, civil-military cooperation and closer cooperation in air the information gathered by a Member State during an traic management between national troops, in spite of inspection must be passed on to the Commission and the initial resistance from Member States. other Member States. In the legislative process on the safety of third-country 7. European air traic controller licence aircraft, Parliament was able to ensure that Member States Directive 2006/23/EC of 5 April 2006 introduced retained the option of carrying out spot checks on a non- common requirements for the granting of a Community discriminatory basis, even in the absence of any justiiable air traffic controller license. The rules on the training and suspicion. Parliament was also able to prevent the Council licensing of air traffic controllers were also harmonised. from curbing the Commission’s powers to take This should ensure the mobility of air traffic controllers Community-wide measures against foreign operators with within the EU. inadequate safety standards. If a Member State informs the
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Commission that it has banned a given air carrier from research and technological development (e.g. Galileo) for landing at its airports, the Commission can now choose to the creation of intelligent air transport systems should be extend that ban to the whole of the Union. made a top priority. In its resolution of 3 October 2001 on With regard to the harmonisation of technical requirements Galileo, Parliament emphasized the technical and industrial and administrative procedures in civil aviation, Parliament importance of the Galileo programme for European supported the Commission proposal. In addition, it insisted aeronautics and telecommunications. on practical rules for express freight services and detailed minimum requirements for cabin staf. g Nils DANKLEFSEN 09/2006 Parliament believes that the interoperability of new technologies and support for Europe-wide initiatives in
4.5.8. Sea transport: market access and competition
Legal basis B. Market access Article 80(2) of the EC Treaty supplemented by the Treaty’s 1. First action to apply the principle of freedom to general provisions on competition (Articles 81 to 89) and provide services freedom to provide services ("3.2.3.). Regulation (EEC) No 4055/86 of 22 December 1986, applying the principle of freedom to provide services to Objectives maritime transport between Member States and third countries, abolished the restrictions on EU shipowners after The aim is to apply the Treaty principle of freedom to a transitional period. It prohibited future cargo-sharing provide services to the Union’s sea transport industry and arrangements with third countries other than for liner ensure that competition rules are complied with. This shipping in exceptional circumstances. policy is based on the Community’s need to defend itself against the threat of unfair competition from the merchant Regulation (EEC) No 4058/86 of 22 December 1986, on leets of third countries and against protectionist trends. coordinated action to safeguard free access to cargoes in The Community is particularly concerned to ensure that ocean trade, enables the Community to take retaliatory the principal maritime transport routes are kept open to all measures if EU shipowners or ships registered in a Member operators. State encounter restrictions on the free access to cargoes. 2. The free market: liberalisation of cabotage Achievements In June 1992 the Council adopted a package of measures to phase in the liberalisation of cabotage, i.e. access for A. General carriers not resident in a given Member State to the Sea transport was the subject of a 1985 Commission maritime transport market between the ports of that memorandum entitled ‘Progress towards a common Member State. Council Regulation (EC) No 3577/92 of 7 transport policy — maritime transport’ and a 1996 December 1992 laid down deinitively the principle of communication, ‘Towards a new maritime strategy’. liberalisation of cabotage from 1 January 1993 for The Commission Green Paper on sea ports and maritime Community shipowners operating vessels registered in a infrastructures [COM(97) 678)] contained a detailed review Member State. The liberalisation process was completed on of the industry and took a close look at the problems of 1 January 1999. port charges and market organisation. It also discussed integrating ports into the trans-European networks and C. Competition rules maximising their role as transhipment points in the On 22 December 1986 the Council adopted Regulations intermodal transport chain. (EEC) No 4056/86 and (EEC) No 4057/86 as part of the
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01_2006_4661_txt_EN.indd 215 30-10-2007 14:55:05 maritime package. The irst of these regulations laid down Directive 1999/63/EC of 21 June 1999 was based on an the procedures for applying the rules on competition to agreement between the European Community Shipowners’ international maritime transport to or from one or more Associations (ECSA) and the Federation of Transport Community ports and aimed to ensure that competition Workers’ Unions in the EU. It concerns the organisation of was not distorted by means of agreements. It exempted the working time of seafarers on board ships lying the lag certain technical agreements and, in some cases, liner of an EU Member State. Directive 1999/95/EC of 13 conference agreements from the rules on competition laid December 1999 complements it, applying to ships lying down in Articles 81 and 82 of the Treaty (a ‘block the lag of a third country which call at Community ports. exemption’). On 13 October 2004, the Commission The aim is to ensure that the same health and safety rules adopted a White Paper on the review of Regulation (EEC) apply to all seafarers. No 4056/86, applying the EC competition rules to maritime transport [COM(2004) 675]. There it concluded that there Role of the European Parliament was no longer any justiication for retaining the exemption Parliament’s resolution of 24 April 1997 welcomed the for liner conferences, as price stability could also be Commission communication ‘Towards a new maritime achieved by means of other forms of cooperation which strategy’ and ‘consider(ed) it vital, with international would distort competition less. competition at its present level, to provide support for the The second regulation, Regulation (EEC) No 4057/86, European shipping industry to ofset the undeniable extra provided for a redressive duty to protect Community cost incurred by Community shipowners if they respect the shipowners against unfair pricing practices adopted by social and safety standards applying in the Union’. This plea certain third-country shipowners. is a counterweight to other statements in the same Regulation (EEC) No 479/92 granted a further block resolution in favour of a more open market. Parliament also exemption in favour of ‘consortia’ between liner shipping attached value to seafarers’ social protection in accordance companies (further details of which have been decided on with international agreements, with which Parliament a number of occasions over the years). considered that vessels lying lags of convenience should also comply. Parliament also called for clariication of the In 2004, the Commission also submitted revised guidelines legal status of second registers and for a Community for State aid to maritime transport (Communication register. C(2004) 43). This indicated what aid — particularly for the purpose of promoting the entry of vessels in the registers With reference to the Green Paper on sea ports, the EP of the Member States or a return to registration under their called on the Commission in its resolution of 13 January lags — was compatible with Community law. 1999 to submit a study of the structures of sea ports in order to help restore transparency of competitive In February 2001 the European Commission submitted a conditions between and within European sea ports. The EP package of measures to establish clear rules and to set up also called on the Commission to supervise all sea ports an open and transparent procedure for access to services in and port undertakings efectively and in the same way with ports — the ‘ports package’ [COM(2001) 35]. The purpose of reference to aid and compliance with competition rules. the proposal was to open up port services to competition Parliament proposed that public inancing of port and and thereby realise the fundamental freedoms guaranteed maritime transport infrastructure should be assessed on by the EC Treaty and comply with its competition rules, the basis of three categories: both at individual sea ports and between them. This was intended to increase the eiciency of sea ports. In addition, — public port infrastructure measures, the inancial relationships between sea ports or port — undertaking-related port infrastructure measures, systems and providers of port services on the one hand — undertaking-related port superstructure measures. and the State authorities on the other hand were to be rendered transparent. After the European Parliament (EP/ In Parliament’s opinion, the proposals for directives on Parliament) had rejected the proposal at third reading on market access in ports submitted after the Commission 20 November 2003, the Commission made a fresh attempt Green Paper were not suitable for regulating competition to tackle the matter and on 13 October 2004 submitted a in and between ports. Accordingly, the EP rejected these new proposal [COM(2004) 654], which was intended to proposals, as described above, and thus brought these overcome certain criticisms of points in the original, failed legislative procedures to a halt. proposal. However, the EP also rejected the new proposal, In its resolution of 12 April 2005 on short sea shipping, the this time at irst reading, on 18 January 2006, and some EP called for short sea shipping to be promoted more time later the Commission withdrew it. strongly, for administrative procedures to be reduced as
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much as possible, for the development of high-quality loading units, (c) electronic communication, (d) customs, corridors between Member States and for priority to be (e) support structures for short sea shipping, (f) given to investment in infrastructure in order to improve environmental aspects and (g) motorways of the sea. access to ports from both land and sea. The resolution also contained numerous proposals and requests concerning g Nils DANKLEFSEN (a) introducing a uniform system of liability, (b) intermodal 09/2006
4.5.9. Sea transport: traic and safety rules
Legal basis 1. Training of seafarers Title V of the EC Treaty, particularly Article 71(1)(c) and Directive 94/58/EC of 22 November 1994 on minimum Article 80(2). training conditions for seafarers gave the 1978 IMO Convention on Standards of Training, Certiication and Objectives Watchkeeping for Seafarers (STCW) the force of Community law. It has been amended a number of times in accordance Safety at sea to protect passengers and crew members and with new international requirements, and the various also to protect the marine environment and coastal regions provisions were consolidated by Directive 2001/25/EC of 4 is a fundamental objective of sea transport policy. The April 2001. global dimensions of sea transport necessitate the development by IMO (the International Maritime 2. Ships’ equipment Organisation) of safety standards which should be as Directive 96/98/EC of 20 December 1996 concerning on- uniform as possible and recognised worldwide. The board equipment aims to ensure uniform application of the principal international agreements include the SOLAS Convention on marine equipment for commercial International Convention for the Prevention of Pollution vessels and enforce the IMO resolutions deriving from it. from Ships (Marpol), the International Convention for the 3. Safety of passenger craft Safety of Life at Sea (SOLAS) and the International On 8 December 1995 the Community adopted Regulation Convention on Standards of Training, Certiication and (EC) No 3051/95 on the safety management of roll-on/roll- Watchkeeping for Seafarers (STCW). of passenger ferries (‘ro-ro’ ferries). This laid down that The prompt amendment of Community law to take safety management systems must be established and account of these international agreements is an essential maintained. objective of the EU’s sea transport policy. In the past, The safety of vessels providing scheduled services between however, not all IMO measures have proved adequate to two Community ports is the subject of Directive 98/18/EC improve safety at sea. It was therefore equally necessary of 17 March 1998. In addition to compulsory safety both for Member States and/or the Community to standards, the directive provides for regular inspections of participate in the further development and improvement ships and certiication by means of safety certiicates. This of these international agreements and to adopt additional directive was amended by Directive 2003/24/EC of 14 April measures at EU level. 2003 and Directive 2203/75/EC of 29 July 2003. Directive 98/41/EC of 18 June 1998 on the registration of Achievements persons sailing on board passenger ships makes it possible A. Fundamental legislation to monitor the number of passengers and thus improve As there are international rules to regulate safety at sea, the the efectiveness and speed of rescue operations in the Community’s main contribution has been to transpose event of an accident. them into Community law, ensuring that they have legal 4. Port State control force and uniform application throughout the Member The aim of Directive 95/21/EC of 19 June 1995 is to enforce States. In the 1990s, considerable progress was made in this international environmental and safety standards more regard. efectively by means of compulsory regular inspections at
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01_2006_4661_txt_EN.indd 217 30-10-2007 14:55:06 Community ports (port State control). As a result, hull oil tankers and provided for them to be replaced by enforcement of safety standards and inspections of living 2015 at the latest with safer double-hull vessels, the and working conditions on board ships are no longer left deadlines depending on the size, type and age of the purely to the lag states but have partly become a matter vessel. After the Prestige oil tanker disaster, the timetable for the competent authorities at EU ports. The directive was was again accelerated considerably by Regulation (EC) No amended as part of the Erika I package (see below). 1726/2003 of 22 July 2003. The use of single-hull tankers to 5. Ship inspection and survey organisations carry particularly toxic heavy oil to and from Community (classiication societies) ports was banned immediately. Council Directive 94/57/EC of 22 November 1994 lays 2. The Erika II package down common rules and standards for ship inspection and Directive 2002/59/EC of 27 June 2002 established a survey organisations (classiication societies). It was likewise Community vessel traic monitoring and information amended as part of the Erika I package. system. The operator of any vessel wishing to call at a port in a Member State must, in advance, supply various B. Developments after the Erika and Prestige disasters information to the relevant port authority, particularly After the accidents involving the Erika and Prestige, EU concerning dangerous or polluting cargoes. The vessel maritime safety standards were again tightened up must be itted with an automatic identiication system considerably. In March and December 2000 the (AIS), and a timetable was laid down for the compulsory Commission put forward the so-called Erika I and II itting of vessels with voyage data recording systems (VDR packages to bring about the necessary improvements. The systems or ‘black boxes’). The directive gave Member States following measures were adopted as a result: greater powers of intervention and authorised the 1. The Erika I package competent authorities to forbid vessels from departing in Directive 2001/105/EC of 19 December 2001 stepped up bad weather conditions. It also required Member States to and simpliied the Community rules and standards laid adopt plans for giving refuge to vessels in distress. down in the original directive concerning ship inspection Regulation (EC) No 1406/2002 of 27 June 2002 established and survey organisations (classiication societies). Its aim the European Maritime Safety Agency (EMSA). Its task is to was uniform compliance with standards, more stringent provide scientiic and technical advice to the Commission quality requirements applicable to classiication societies, and to monitor the implementation of legislation in the greater transparency of indings and making classiication ield of maritime safety. Its remit has recently been societies more independent of ship-owners or shipbuilding expanded to include new duties in the ield of pollution companies. The directive provides for the competent control. authorities of the Member States to monitor classiication 3. New Commission proposals societies. If their performance is shown to be inadequate, their recognition can be temporarily suspended or On 23 November 2005, the Commission submitted a third withdrawn altogether. In the event of proven negligence, a package of legislative measures on maritime safety classiication society can under certain circumstances be [COM(2005) 585], which comprises the following seven held liable for the consequences of an incident involving a proposals: ship. — a directive on the fulilment of lag state obligations; Directive 2001/106/EC of 19 December 2001 made port — an amendment to the directive on port State control; State control compulsory for certain potentially hazardous — an amendment to the directive on the Community’s vessels. Member States are required to carry out vessel traic monitoring and information system; inspections more frequently and more thoroughly and to conduct more extensive inspections of certain high-risk — an amendment to the directive on classiication vessels such as gas, oil and chemical tankers. In addition, societies; the directive introduced a so-called blacklist. It became — a directive on investigations after accidents at sea; possible to deny access to EU ports to ships sailing under — a regulation on liability and compensation for personal the lag of a blacklisted State (the blacklist being published injury caused by accidents at sea; in the annual report of the Paris memorandum of understanding) if previous inspections at other ports had — a directive on the third-party liability of ship-owners. shown safety on board to be inadequate. These proposals are currently passing through the Regulation (EC) No 417/2002 of 18 February 2002 laid legislative procedure at the Council and the European down a ixed timetable for phasing out the use of single- Parliament (EP/Parliament).
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C. Hazard control on ships and in port facilities March 2000, to submit concrete proposals for improving In response to the terrorist attacks on 11 September 2001, safety at sea. the so-called ISPS Code was adopted at the Diplomatic The Erika I and Erika II shipping safety packages which the Conference of the IMO in 2002, as were various Commission subsequently submitted received Parliament’s amendments to other international agreements. The aim is support. Parliament urged that the legislative procedure be to improve the protection of ships and port facilities, concluded swiftly and also secured important particularly against terrorist attack. Regulation (EC) No improvements. For example, despite the initial resistance of 725/2004 of 31 March 2004 is intended to ensure uniform some EU governments, Parliament inserted a provision interpretation and implementation of these IMO decisions. requiring ships to be equipped with voyage data recording The regulation requires Member States, inter alia, to carry systems (VDR systems or ‘black boxes’), which provide out security assessments at their port facilities and to information for use in investigations after an accident. monitor compliance with security regulations. After the Prestige oil tanker disaster of the coast of Spain in D. Environmental standards for shipping 2002, the EP decided to set up a temporary committee on In recent years, numerous measures have been taken to improving safety at sea (MARE). In the inal report of this protect the marine environment. These include: committee, which was adopted in April 2004, the EP made many recommendations for future measures in the ield of — Regulation (EC) No 782/2003 of 14 April 2003 on the safety at sea. It called for a comprehensive and coherent prohibition of organotin compounds on ships; these policy for maritime transport, based, inter alia, on the compounds are mainly used as anti-fouling products on following additional measures: a ban on non-compliant ships’ hulls and are highly polluting; ships, the introduction of a system of liability covering the — Directive 2005/33/EC of 6 July 2005 on reducing the entire maritime transport chain, and improvements to the sulphur content of marine fuels; living and working conditions and training for seafarers. — Directive 2000/59/EC of 27 November 2000 on port Parliament also called for the establishment of a European reception facilities for ship-generated waste and cargo coastguard, compulsory pilotage in environmentally residues, which provides for compulsory disposal of oil, sensitive and navigationally diicult sea areas, and a clear oily mixtures, ships’ waste and cargo residues at EU decision-making and command structure in Member ports and enforcement of the rules on this subject; States for dealing with maritime emergencies, in particular as regards the mandatory assignment of an emergency — Directive 2005/35/EC of 7 September 2005 on ship- mooring or port. Parliament took the view that EU action, source pollution and on the introduction of penalties such as, for instance, the banning of lags of convenience for infringements. from European territorial waters, might be necessary, and called upon the Commission to investigate the scope for Role of the European Parliament introducing mandatory insurance for vessels in European Parliament has strongly supported the initiatives relating to waters. The Commission has already taken account of some safety at sea and has helped to make progress in this ield of these requests in its proposed third package of measures by means of initiatives of its own. to promote safety at sea. After the Erika tanker disaster, Parliament urged the Commission, in its resolutions of 20 January 2000 and 2 g Nils DANKLEFSEN 09/2006
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Legal basis passengers by inland waterway between Member States "4.5.1. and in transit through them without discrimination provided that he is properly established in a Member State. The regulation does not afect the rights of third country Objectives operators under the Revised Convention for the Navigation Together with rail and short-sea shipping, inland waterway of the Rhine (Mannheim Convention) and the Convention transport is considered to be a mode of transport which on Navigation on the Danube (Belgrade Convention). can contribute to sustainable mobility and help improve (b) Freedom for non-resident carriers to operate inland the sustainability of the transport system. Per tonne- waterway transport services in a Member State (cabotage) kilometre, inland waterway transport is extremely energy- eicient and is regarded as one of the most This was introduced by Council Regulation (EEC) No environmentally-friendly and safest modes of transport. The 3921/91 of 16 December 1991. Since 1 January 1993, Community has more than 35 000 km of inland waterways carriers who are properly established and licensed in a linking many towns and areas of industrial concentration. Member State have been able to transport goods or Inland waterways exist in 18 out of the 25 Member States. passengers by inland waterway in a Member State in which The modal share of inland waterway transport currently they are not established (‘cabotage’). accounts for 7 % of total inland transport in the European (c) Harmonisation and mutual recognition of occupational Union. In the hinterland of the largest seaports, the modal qualiications share of inland waterway transport can reach up to 43 %. Council Directive 87/540/EEC of 9 November 1987 Besides safeguarding the proper application of the regulates access to the occupation of carrier of goods by legislation on market access and competition as well as the waterway in national and international transport and the harmonisation of speciic legal provisions, attention has mutual recognition of diplomas, certiicates and other recently focused on the promotion of inland waterway evidence of formal qualiications for this occupation. transport. In line with the objectives set out in the Reciprocal recognition of national boatmasters’ certiicates Commission’s transport White Paper, the intention is to for the carriage of goods and passengers by inland promote and improve the competitiveness of inland waterway in the Community was achieved with Council waterway transport in the freight sector. The aim is to Directive 91/672/EEC of 16 December 1991. Council achieve further and better integration of inland waterway Directive 96/50/EC of 23 July 1996 harmonised the transport into the intermodal logistics chain. conditions for obtaining these national boatmasters’ The promotion of intermodal transport logistics is a core certiicates. element of the Commission’s 2001 transport White Paper. (d) Competition rules Here, the aim is to create the technical, legal and economic Council Directive 96/75/EC of 19 November 1996 parameters for optimal integration of various modes of introduced a system of free chartering and pricing, thus transport for a door-to-door service. A particular focus is ending the system of minimum compulsory tarifs from the integration of more environmentally-friendly modes of 1 January 2000. transport such as rail, inland waterway transport and short sea shipping into the transport chain. 2. Harmonisation of legal provisions (a) Overcapacity Achievements The problem of existing overcapacity was addressed by Regulation (EEC) No 1101/89 of 27 April 1989. The A. Inland waterway transport ‘structural improvements’ in inland waterway transport 1. Market access and competition provided for in the regulation comprise: Since 1 January 2000, the inland waterway transport — the payment of premiums for the scrapping of vessels; market has been regarded as fully liberalised. — the obligation that the owner of the vessel to be (a) Market access for international goods transport brought into service scraps a tonnage of carrying Council Regulation (EC) No 1356/96 of 8 July 1996 aims to capacity equivalent to the new vessel (‘old-for-new’ ensure that any operator is allowed to transport goods or rule), or pays into a scrapping fund a special
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contribution equal to the scrapping premium ixed for a programme provides for numerous legislative, coordination tonnage equal to that of the new vessel. and support measures, and focuses on ive strategic areas: Commission Regulation (EC) No 336/2002 of 22 February — creating favourable conditions for services and the 2002 introduced amended ‘old-for-new’ ratios in order to development of new markets. This includes (a) testing maintain the overall balance, without reversing the and introduction of new logistical concepts, (b) structural improvements. supporting scheduled services for intermodal transport, (b) Technical requirements (c) facilitating access to capital for SMEs, and (d) improving the administrative and regulatory framework; Council Directive 76/135/EEC of 20 January 1976 requires Member States to recognise navigability licences for inland — incentives for the modernisation of the leet, e.g. by waterway vessels issued by another Member State. developing and promoting the use of innovative concepts and technologies for the construction of new vessels; Most of the provisions of Council Directive 76/135/EEC were amended by the provisions of Council Directive — measures to address the skills shortage, e.g. by 82/714/EEC of 4 October 1982. It also introduced a improving working and social conditions, greater Community inland navigation certiicate, valid on all mutual recognition of qualiications, and securing the Community waterways except the Rhine, attesting the existence of education and training institutions; compliance of vessels with the common technical — promotion of inland navigation as a successful partner requirements. For the Rhine, a valid certiicate issued in business, e.g. through more intensive publicity work pursuant to Article 22 of the Revised Convention for the or by setting up and expanding a European IWT Navigation of the Rhine applies, which is valid on all promotion and development network; Community waterways. — provision of appropriate infrastructure through the (c) Harmonised river information services on inland improvement and maintenance of the European waterways in the Community waterway network and development of transhipment Directive 2005/44/EC of the European Parliament (EP) and facilities, and by supporting and coordinating the of the Council of 7 September 2005 on harmonised river development and introduction of RIS. information services (RIS) on inland waterways in the Community provides a comprehensive framework for the B. Intermodality and logistics establishment and further development of a harmonised, Intermodal transport is deined as ‘a transport system interoperable RIS on the Community’s inland waterways. whereby at least two diferent modes are used in an The directive imposes an obligation on those Member integrated manner in order to complete a door-to-door States through which certain Community inland waterways transport sequence’. A priority, in this context, is to integrate low to establish these information services in line with the the more environmentally-friendly modes of transport — principles and speciications set forth in the directive. The rail, inland waterway transport and short sea shipping — technical speciications should be developed within a into the transport chain more efectively. Impediments and speciic timeframe. With these interoperable information friction costs arise primarily when there is a change of services based on modern information and mode during a journey. This may result in higher prices, communications technology, the aim is to integrate inland longer journeys and more delays, and may have an impact waterway transport more efectively into the intermodal on the competitiveness of intermodal transport. To that logistics chain. Among other things, RIS will provide fairway extent, improving the logistical quality and eiciency of and traic information as well as strategic traic intermodal transport is a key objective. information for time and journey planning. The system also 1. Marco Polo programme opens up new opportunities for better freight and leet On 22 July 2003, the EP and the Council adopted management. Regulation (EC) No 1382/2003 on the Marco Polo 3. Promotion of inland waterway transport programme. The inancial framework for implementation of On 17 January 2006, the Commission proposed a the Marco Polo programme for the period 1 January 2003 multiannual integrated European action programme for to 31 December 2006 is EUR 75 million. The aim of the inland waterway transport (NAIADES) [COM(2006) 6 inal]. It programme is to shift international road freight traic to recommends action to be taken between 2006–13 with short sea shipping, rail and inland waterways as well as to the aim of fully exploiting the market potential of inland promote innovative projects. navigation and deploying the ample free capacities of On 14 July 2004, the Commission presented a proposal to inland waterway transport more efectively. The establish a ‘Marco Polo II’ programme [COM(2004) 478].
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01_2006_4661_txt_EN.indd 221 30-10-2007 14:55:07 Relying on the proven mechanisms of the current Role of the European Parliament programme, Marco Polo II includes two new actions: (a) The EP has regularly voiced support for inland waterway larger geographical scope for intermodal transport transport and measures to promote intermodal transport. solutions and alternatives to road transport, including In its resolution of 12 February 2003 on the Commission’s outside the EU, and (b) motorways of the sea, which are transport White Paper, the EP called for the substantial intended to encourage a shift towards short sea shipping. expansion of the Marco Polo programme with signiicant During the negotiations on the inancial perspective, the EP additional funding. It also called for increased EU co- and the Council agreed a total budget of EUR 450 million inancing for key inland waterway projects undertaken for ‘Marco Polo II’ for the period 2007–13. within the framework of the trans-European infrastructure 2. Intermodal loading units networks (TEN) in a manner compatible with the In April 2003, the Commission presented a proposal for a requirements of EC environmental legislation, and called directive on intermodal loading units [COM(2003) 155]. It on the Commission to submit a proposal for harmonised aims to create new uniform technical norms for a European technical provisions for the implementation of RIS. It also intermodal loading unit which can be used in all modes of called for a signiicant increase in the number of transport transport. This would greatly simplify the process of centres and logistical centres and put forward speciic transhipment and make intermodal transport more proposals to improve and promote intermodality. competitive. An amended proposal by the Commission has The Commission’s proposal for a directive on intermodal now been published after the EP, but not the Council, gave loading units was adopted by the EP on 12 February 2004, its opinion on this proposal. subject to certain amendments. The NAIADES programme 3. Freight transport logistics and the communication on freight transport logistics are In June 2006, the Commission published its currently being examined by Parliament. communication on freight transport logistics in Europe — the key to sustainable mobility [COM(2006) 336]. It deines g Nils DANKLEFSEN a strategy to improve the framework conditions in which to 09/2006 increase the eiciency of individual modes of transport and their combinations. The aim is to utilise fewer units of transport, such as vehicles, wagons and vessels, to carry more freight.
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4.6. Trans-European networks
4.6.1. Trans-European networks: guidelines
Legal basis 1993 and set up two working groups, whose Title XV of the EC Treaty. recommendations were approved by recommendations of the European Councils of Corfu and Essen (including 14 priority projects for transport and 10 for the energy sector). Objectives The Maastricht Treaty gave the Community the task of B. Sectoral legislative measures establishing and developing trans-European infrastructure 1. Transport networks (TEN) in the areas of transport, (a) The 1996 guidelines telecommunications and energy, in order to help develop Decision No 1692/96/EC of 23 July 1996 on Community the internal market, reinforce economic and social guidelines for the development of the trans-European cohesion and to link island, landlocked and peripheral transport network (TEN-T) sets out broad lines for the regions with the central regions of the Community. The measures necessary to set up the network. The decision establishment of the TEN relates to Community-wide established characteristics of the networks for each mode collaboration, the improvement of the interoperability of of transport, eligible projects of common interest and national networks and facilitating access to them. priority projects. Emphasis was placed on environmentally- In line with the principle of subsidiarity, the Community has friendly modes of transport, in particular rail projects. no exclusive competence for the developing, inancing or Fourteen projects were designated as priority projects. building the infrastructures. The main responsibility for Decision No 1346/2001/EC of the EP and of the Council of doing so continues to lie with the Member States. 22 May 2001 amending the TEN-T guidelines as regards Nevertheless, the Community contributes substantially to seaports, inland ports and intermodal terminals added the development of these networks by acting as a catalyst criteria for these remaining elements missing from the TEN- and by providing inancial support, particularly at the T, thereby providing for a Community transport outset, for infrastructures of common interest. development plan encompassing all modes of transport. To this end, the Community lays down guidelines under (b) Revision of the TEN guidelines the co-decision procedure identifying eligible ‘projects of The impending enlargement of the EU in 2004, coupled common interest’ and ‘priority projects’ and covering the with serious delays and inancing problems in the objectives, priorities and broad lines of measures. realisation of the TEN-T — particularly cross-border sections — led to the need for a thorough revision of the TEN Results guidelines. On the basis of proposals made by a specially appointed working group headed by former European A. General guidelines and general ideas Commissioner Karel van Miert, this revision was adopted in The Commission White Paper on Growth, Competitiveness the form of Decision 884/2004/EC of 29 April 2004. The and Employment, presented to the Brussels European revision comprised the following main elements: Council in December 1993, emphasised the fundamental importance of the TEN for the internal market. The White — The number of priority projects was increased to Paper referred in particular to the contribution made to job approximately 30. Many of these projects now also creation — not only in building the infrastructure itself, but involved the Member States that joined in 2004; also through its subsequent role in economic — EU environmental rules were brought into sharper development. It identiied 26 priority projects for transport, focus, particularly through a strategic environmental 8 for energy and 9 for a data highway system. The Brussels impact assessment as a complement to the European Council adopted the White Paper in December conventional environmental impact assessment;
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01_2006_4661_txt_EN.indd 223 30-10-2007 14:55:07 — The concept of ‘motorways of the sea’ was introduced to These priorities include: (a) overcoming cross-border make certain sea routes more eicient and to integrate missing links; (b) taking account of enlargement; (c) short sea shipping into the intermodal transport chain. establishing energy networks in island and peripheral A total of four such motorways of the sea were regions through diversiication and renewable energy combined into one priority project; sources; and (d) interoperability of EU networks with the — ‘European coordinators’ would be appointed to networks of the new Member States and third countries. accompany future priority projects and to contribute to Twelve projects of common interest were deemed to be their swift and successful realisation. The Commission priority projects in annex I to the decision. has since appointed six coordinators for particularly On 10 December 2003, the Commission came forward with important projects; a further proposal on the trans-European networks in the — By 2020, TEN-T should cover 89 500 km of roads and ield of energy (COM(2003) 0742). The aim of the proposal 94 000 km of railways, including 20 000 km of was to adapt the guidelines to the changed circumstances high-speed railways. In addition, 11 250 km of inland in the European Union arising from the accession of 10 waterway networks, 210 inland waterway ports, 294 new Member States and to guarantee security of supply by seaports and 366 airports are part of the TEN-T. means of connections between the Member States and Completion of the TEN-T made it necessary to add neighbouring countries (south-east Europe, the approximately 4 800 km of roads and 12 500 km of Mediterranean states, Ukraine and Belarus). The proposal railways to the existing network. In addition, 3 500 km also aimed at further increasing the speed of preparation of roads, 12 300 km of railways and 1 740 km of inland and implementation of projects. waterways need to be improved or developed; 3. Telecommunications ("4.7.7. and 4.7.8.) — The total costs were estimated at around Decision No 2717/95/EC of 9 November 1995 established EUR 600 000 million, including between a series of guidelines for the development of the EUR 225 000 million and EUR 252 000 million for the 30 integrated services digital network (ISDN) as a trans- priority projects. (For more on the inancing of the TEN, European network. The decision deined the objectives, see Chapter 4.6.2.). priorities and common-interest projects for developing a range of services based on the Euro-ISDN in the prospect 2. Energy of a future European broadband communications (a) The 1996 guidelines network. At the Essen summit of December 1994, several energy Decision No 1336/97/EC of 17 June 1997 laid down projects were awarded priority status. Decision No guidelines for the trans-European telecommunications 1254/96/EC of 5 June 1996 laid down a series of guidelines networks. This set out the objectives, priorities and broad for trans-European energy networks. They contained an lines of the measures envisaged. The priorities adopted action plan by which the Community might identify included applications contributing to economic and social eligible projects of common interest and help create a cohesion and the development of the basic networks, framework to encourage their implementation. They also particularly satellite networks. These guidelines were laid down sectoral objectives for electricity. modiied slightly by Decision No 1376/2002/EC of 12 July (b) New guidelines 2002. Decision No 1229/2003/EC of 26 June 2003 abolished the These guidelines identify projects of common interest as old guidelines set out in Decision No 1254/96/EC. well as the procedure and criteria for their selection. The The objectives of the new guidelines were to diversify Community promotes the interconnection of supplies, to increase security of supply by strengthening telecommunications infrastructure networks, the creation links with third countries and to incorporate networks in and development of interoperable services and the new Member States. With these new guidelines, the EU applications, and access to them. The following objectives reformulated its priorities, objectives and broad lines of were envisaged: (a) to facilitate the transition towards the measures in the area of the trans-European energy information society; (b) to improve the competitiveness of networks. In relation to the previous legislation, additional the Community’s businesses, in particular SMEs; (c) to criteria were ixed for determining projects of common strengthen economic and social cohesion; and (d) to interest and priority projects for the electricity and natural accelerate the development of new, more growth- gas networks. intensive areas of activity with a view to creating new The priorities for the trans-European energy networks must jobs. be compatible with the goals of sustainable development
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Role of the European Parliament April 2004. Among other things, the guidelines’ Parliament strongly supported the trans-European network environmental rules were strengthened and the concept of policy. At the same time, Parliament has regularly drawn a strategic environmental impact assessment was attention to delays in implementation of priority transport introduced as a binding requirement, under pressure from projects, called for irm timetables for their realisation and the EP. Parliament also obtained a change to the list of called on the Member States to increase substantially the priority projects. Under pressure from Parliament, the budgetary resources available — particularly for the trans- realisation of priority projects was more strongly linked to a European transport networks (see the European Parliament timetable than the Member States had envisaged. For the (EP/Parliament) resolution of 4 May 2000). Furthermore, in irst time, the possibility of removing the status of ‘priority its resolution of 12 December 2001, the EP called for project’ was created. This was intended to tie the Member priority to be given to the promotion of those projects States to prompter realisation of projects. which clearly demonstrated positive and long-term efects Concerning the revision of the guidelines for the trans- on the environment and employment and which helped to European energy networks in June 2003, the EP saw a remove bottlenecks in the trans-European transport number of demands made to the Council of Ministers network, particularly in rail and combined transport. fulilled and reached an agreement whereby, among other Parliament also called for a range of administrative changes things, Community subsidies for construction and to improve implementation of the trans-European maintenance of energy structure would remain highly networks. For example, the Commission was asked to come exceptional. Moreover, priority projects had to be forward with new guidelines for the trans-European energy compatible with the objectives of sustainable development networks. In this connection, the EP has criticised delays to and increase the security of supply for the Community in the original plans. order to receive funding. During the revision of the guidelines for the trans-European transport networks, Parliament was able to make a number g Nils DANKLEFSEN of amendments in the negotiations with the Council in 09/2006
4.6.2. Financing the trans-European networks
Legal basis 1. Principles Title XV of the EC Treaty. Under Article 155 of the EC Treaty, The principles governing funding are set out in Council Community aid may be granted to projects of common Regulation (EC) No 2236/95 of 18 September 1995 laying interest that meet the requirements laid down in the down general rules for the granting of Community inancial guidelines. aid in the ield of trans-European networks (a) Conditions Objective Community aid for projects may take one or several of the To contribute to the establishment of trans-European following forms: networks (TEN) in the ields of transport, energy and — co-inancing of studies related to projects, including telecommunications through targeted Community support preparatory, feasibility and evaluation studies, and other ("4.6.1.). technical support measures for these studies (in general not exceeding 50 % of the total cost of these studies); Results — subsidies of the interest on loans granted by the A. Direct inancing through the Community budget European Investment Bank (EIB) or other public or Generally, EU funding serves as a catalyst for starting up private inancial bodies; projects. Member States must raise the majority of the — contributions towards fees for guarantees for loans from funding. the European Investment Fund or other inancial institutions;
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01_2006_4661_txt_EN.indd 225 30-10-2007 14:55:07 — direct grants to investments in duly justiied cases; B. Other inancing possibilities — Community assistance may be combined. However, 1. Community structural funds regardless of the form of intervention chosen, the total In the period 2000–06, these funds contributed amount of Community aid under Regulation (EC) No approximately EUR 20 000 million to TEN projects — 2236/95 may not exceed 10 % of the total investment particularly through the cohesion fund in Greece, Ireland, cost; Portugal and Spain. The Member States that joined the EU in 2004 were allocated EUR 2 480 million in pre-accession — Community aid for the telecommunications and energy aid. In addition, for the period 2004–06 these countries networks must not cause distortions of competition were allocated EUR 4 240 million from the Cohesion Fund between businesses in the sector concerned. and EUR 2 530 million from the other Structural Funds (b) Selection criteria ("4.4.3. and 4.4.2.) The following project criteria must be applied: 2. European Investment Bank aid — projects must help to achieve the networks’ objectives; No territorial restrictions apply to EIB loans. They are — projects must be potentially economically viable; granted on the basis of banking criteria. These include the inancial (ability to repay), technical and environmental — the maturity of the project; the stimulative efect of feasibility of the project. In the period 1995–2005, the EIB community intervention on public and private inance granted loans for TEN projects totalling approximately and the soundness of the inancial package; EUR 50 000 million. — direct or indirect efects on the environment and 3. Private sector contribution employment; On 30 April 2004, the Commission published a Green Paper — coordination of the timing of diferent parts of the on public-private partnerships, which examines PPPs in the project. light of Community law on public contracts and The projects inanced must comply with Community law concessions (COM(2004) 0327). and Community policies, in particular in relation to In addition, on 7 March 2005, the Commission published a environmental protection, competition and the award of communication on the design of an EU loan guarantee public contracts. instrument for TEN-Transport projects (COM(2005) 0076). Regulation (EC) No 2236/95 covers the period 2000–06 The instrument is intended to provide support for speciic and has been amended by, among others, Regulation (EC) types of PPPs. The aim is to stimulate private sector No 1655/1995 of 19 July 1999, Regulation (EC) No investment in priority TEN-T projects by providing credit 788/2004 of 21 April 2004 and Regulation (EC) assistance. No 807/2004 of 21 April 2004, which introduced a range C. The new inancial framework for 2007–13 of new elements: For the new inancing period 2007–13, the Commission, — indicative multiannual programmes intended to raise with Parliament’s support, initially proposed the proile of EU project inancing; EUR 20 350 million for TEN-T and EUR 340 million for TEN-E. — association of risk capital in EU inancial aid; However, the Council insisted on a drastic reduction of these funds. The agreement between the Council and — increase in the upper limit for EU inancial aid, i.e. from Parliament on the new TEN inancial framework provided 2003 up to 20 % of the total project costs in the case of for EUR 8 013 million in the area of transport and projects concerning satellite positioning and navigation EUR 155 million in the area of energy. Thus the amounts systems and since 2004 for cross-border sections of laid down in the inancial framework represent only 40 % of priority projects; the amount originally proposed in the area of transport and — the inancial framework for the period 2000 to 2006 45 % of the amount for energy. The Commission therefore allocated EUR 4 600 million to the TEN, submitted an amended proposal laying down general rules EUR 4 170 million of which for transport (TEN-T) and for the granting of Community inancial aid in the ield of EUR 430 million for energy (TEN-E) and the trans-European networks (COM(2006) 0245), in which it telecommunications networks (eTEN). proposes that, in order to complement national (public or — at least 55 % of the funding for the TEN-T to be devoted private) sources of inancing, these limited resources to railway projects and a maximum of 25 % to road should be focused on certain categories of projects which projects. will provide the greatest added value for the network as a whole. These include, in particular, cross-border sections
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and projects aimed at removing bottlenecks. In addition, coherence of completed projects with those inanced by the rates of support should be modiied for certain contributions from the Community budget, the EIB, the categories of projects (e.g. for certain waterways, ERMTS/ cohesion fund, the ERDF or other Community inancing ETCS or the SESAR programme). The proposal is currently instruments. going through the legislative procedure between the In its resolution of 8 June 2005 on the inancial framework Council and Parliament. for 2007 to 2013, Parliament welcomed the Commission proposal on TEN-E and on TEN-T priority projects. However, Role of the European Parliament Parliament noted that the resources allocated for 30 In the course of the legislative procedure on the adoption transport priority projects constitute a minimum amount of Regulation (EC) No 2236/95, Parliament requested which must be regarded as subject to upward revision. It amendments intended primarily to improve criteria, also declared its willingness to examine innovative objectives and procedures in order to provide Member inancing instruments such as loan guarantees, European States and businesses with more certainty and concessions, European loans and an interest relief fund, or transparency and to develop partnership between the EIB facilities. public and private sectors. After the Council had agreed massive reductions to the In the subsequent legislative procedure on amendment of original Commission proposal at the end of 2005, this regulation, Parliament urged that more Parliament, in the subsequent negotiations on the inancial environmentally-friendly modes of transport be given perspective, urged that the amount allocated to the TEN be priority in terms of funding. Thus the percentage share of increased. In the inal agreement with the Council, funding for transport infrastructure projects was ixed in Parliament obtained an increase of EUR 500 million as well such a way as to devote at least 55 % to railway projects as extra EIB funding for the realisation of the TEN. (including combined transport) and a maximum of 25 % to road projects. Furthermore, Parliament emphasised the g Nils DANKLEFSEN need for the Commission to ensure coordination and 09/2006
4.7. Industrial policy
4.7.1. General principles of EU industrial policy
Legal basis development and cooperation between undertakings and Since the Treaty of Maastricht, Article 157 of the EC Treaty foster the industrial potential of innovation, research and has laid down initiatives for industrial policy by which the technological development. Commission can coordinate the actions of Member States. A number of policies already well-integrated with industrial This article, which was amended by the Treaty of Nice, is policy can contribute to its objectives: governed by co-decision, giving Parliament the role of co- — greater openness of the world trading system — legislator. speciically, the opening of protected third country markets to EU producers and service suppliers. By giving Objectives EU producers cheaper access to foreign inputs while EU industrial policy aims to speed up the adjustment of subjecting them to increased competition from third industry to structural changes, encourage initiative, countries, it both enables and forces them to improve their competitiveness;
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01_2006_4661_txt_EN.indd 227 30-10-2007 14:55:08 — single market related policies generally have a positive harmonisation, research, innovation, investment and EU- impact on competitiveness, in particular, by fostering wide tendering. liberalisation of markets and harmonisation of rules; In 1990, the Commission communication on ‘Industrial — R & D policy, by reinforcing the knowledge base and Policy in an Open and Competitive Environment’ focusing on key enabling technologies; (COM(90) 0556) proposed a coherent industrial policy — competition policy induces irms to enhance their strategy aimed at creating general conditions for enterprise eiciency and better enable their survival within their to improve competitiveness of EU industrial policy and markets. It also helps to prepare EU companies for the compensate where necessary for market failure. The challenge of third-country markets; instruments provided by various other EU policies were to be used. Industrial policy strategy has been reined and re- — social and employment policies, including vocational examined in the ensuing years. training, have a key role in ensuring that the promotion of competitiveness is part of the balanced The 1993 Commission White Paper entitled ‘Growth, implementation of the Lisbon strategy. Constant competitiveness, employment — the challenges and ways upgrading of workers’ skills and quality helps meet forward into the 21st century’ (COM(93) 0700) referred to demand in the labour market and contribute to the the particular importance of expanding research and knowledge-based economy; technological development, adjusting education and training systems and accelerating the installation of trans- — consumer protection and public health policy are European networks, especially in the areas of transport, essential preconditions for consumer conidence which telecommunications and energy, in a partnership between is the basis for stable and growing demand; the public and private sectors. — environmental protection may need to restrict or even The 1995 Commission report (SEC(95) 0437 inal) on ban the use of certain inputs or technologies, which can ‘Implementation of Council Resolutions and Conclusions raise production costs in the short term. In the longer on Industrial Policy’ showed that action taken by the EU on term, however, it can help EU companies gain a industrial policy contributes to a general improvement in competitive edge at the global level and create new competitiveness. The Commission reviews the state of markets for clean products and technologies. competitiveness of EU industry in annual reports. The 2002 report on European competitiveness (SEC(2002) 0528) Achievements examined issues such as the role of human capital in economic growth, productivity in services, sustainable 1. Overall conception development in manufacturing industry, and links between Industrial policy is horizontal in nature and aims at securing industrial policy and competition policy. framework conditions favourable to industrial competitiveness. Its instruments, which are those of In December 1995, the Commission adopted the Green enterprise policy, aim to create the general conditions Paper on innovation (COM(95) 0688 inal), which identiied within which entrepreneurs and businesses can take factors which encourage or hamper innovation in the EU initiatives, and exploit their ideas and opportunities. and proposed, at all decision-making levels, practical measures to step up the EU’s overall innovation capacity, Industrial policy should take into account the speciic with special emphasis on SMEs. In 1996, Parliament needs and characteristics of individual sectors. Many endorsed the main principles of the Commission’s products, such as pharmaceuticals, chemicals, automobiles, conclusions on innovation. are subject to detailed sector-speciic regulations matching their inherent characteristics or use. The Commission Communication entitled ‘Competitiveness of European Enterprises in the face of globalisation’ 2. Major documents (COM(98) 0718) invited industry, trade unions and the EU The initiatives taken to complete the internal market institutions to deine a new industrial policy and proposed announced in the Commission’s 1985 White Paper entitled measures for improving the competitiveness of EU ‘Completing the Internal Market’ (COM(85) 0310), gave EU companies in the global market. industrial policy a major boost. An integrated market The Commission considered it necessary to examine the should give industry the advantages already enjoyed by its future of EU industrial policy in view of European American and Japanese competitors in their substantial enlargement. In 2002, its communication on ‘Industrial internal markets, including opportunities for mass policy in an enlarged Europe’ (COM(2002) 0714) underlined production, specialisation, economies of scale, the key role of knowledge and innovation in a global transnational cooperation among enterprises, technical
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economy. EU industry is faced with the challenge of — resolution of 14 May 1998 on the Commission paper on globalisation, which requires EU industry to respond ‘Competitiveness of European Industry’ identiied quickly to unanticipated developments, and an increased weaknesses in the European economy (e.g. inadequate convergence on regulatory issues. Other challenges presence in new areas of information technologies, low include technological and organisational changes, investment, unfriendly tax systems causing company improved innovation and entrepreneurship, improved relocations, a fragmented single market coupled with a investment in sustainable development and lastly the lack of a European company identity) and called on the recognition of changing societal demands. The Commission to come forward with a genuine European Commission proposes that all these challenges be met industrial policy based on a mix between incentives to through the promotion of innovation, knowledge and encourage investments, loans or direct inancial aid to research, of entrepreneurship, and of sustainable industrial help old industries modernise and the use of venture production. capital; The communication entitled ‘Fostering structural change: — resolution of 15 January 1999 called on the Commission an industrial policy for an enlarged Europe’ for a detailed analysis of the efects of the international (COM(2004) 0274) follows on from the December 2002 inancial crisis on EU industry, especially for textiles, steel communication on ‘Industrial policy in an enlarged Europe’ and shipbuilding; and the November 2003 communication on ‘Some Key — resolution of 13 June 2002 assessed the Commission Issues in Europe’s Competitiveness — Towards an communication of November 2001 on ‘Sustaining the Integrated Approach’, which had sketched out an analysis commitments, increasing the pace’ (COM(2001) 0641) of the problem of deindustrialisation. The Commission and, in particular, reiterated its support for the objective proposes three types of action to accompany structural of the Lisbon European Council in 2000 of making the change. Firstly, the EU must continue its eforts at better EU, by 2010, ‘the most competitive and dynamic legislation and creating a regulatory framework that is knowledge-based economy in the world, capable of favourable to industry. Secondly, the synergies between sustainable growth with more and better jobs and diferent Community policies having an impact on greater social cohesion’; industry’s competitiveness need to be better exploited. Thirdly, the Union must continue to develop the sectoral — resolution of 9 June 2005 welcomed the Commission’s dimension of industrial policy. decision to make industrial policy a priority on the EU agenda and supported the promotion of a proactive The Commission Communication on industrial policy, industrial policy to foster and anticipate structural announced as part of the EU’s Lisbon programme in July changes and develop a sound and competitive 2005, aims to strengthen the European Union’s industrial industrial base; sector by developing a more integrated approach to industrial policy (COM(2005) 0474). The health of — resolution of 5 July 2006 on ‘A policy framework to manufacturing industry is essential for Europe’s ability to strengthen EU manufacturing — towards a more grow. This communication aims to extend and complete integrated approach for industrial policy’ the existing framework of EU industrial policy by focusing (2006/2003(INI)) welcomed the Commission on its practical application in the various sectors. communication, which set out a policy framework and an enhanced work programme for the manufacturing industries for the coming years and considers this Role of the European Parliament communication a major building-block for shaping a The Maastricht changes to the EC Treaty dealt with the sound and balanced industrial policy by combining question of industrial policy for the irst time, an concrete sectoral actions with cross-sectoral policy achievement that can be attributed to initiatives by the initiatives. European Parliament (Parliament) which helped stimulate the reorganising of the steel sector and called for a more dynamic industrial policy. Parliament adopted numerous g Miklos GyöRFFI 09/2006 resolutions, e.g.:
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A. Legal basis 1997 to 26.6 million tonnes in 2001. The EU is second to the Fifty years after entering into force, the Treaty on the US in trading power, with Japan third. European Coal and Steel Community, as the legal base for The Luxembourg-based Arcelor Group, created in February the steel industry, expired as planned on 23 July 2002. 2002 following the merger of three steel producers — Before its expiry, it had been amended on various Aceralia, Arbed and Usinor — became the world’s second occasions by the following treaties: the Merger Treaty largest steel making group, with 5 % of the market. In 2006, (Brussels 1965), Treaties amending certain inancial following a bid of Mittal Steel, based in The Netherlands, a provisions (1970 and 1975), the Treaty on Greenland (1984), new group called Arcelor Mittal has been formed, which is the Treaty on European Union (EUT, Maastricht, 1992), the the world’s leading steel company, by both revenue and Single European Act (1986), the Treaty of Amsterdam production. The company operates 61 plants across 27 (1997), the Treaty of Nice (2001) and the Treaties of countries, employing some 320 000 employees. Accession (1972, 1979, 1985 and 1994). EU tarifs for steel products are relatively low. The average At the beginning of the 1990s, following extensive consolidated bound rate was around 2 % in 2000, and all debate, its expiry was considered the best solution as tarifs disappear in 2004 in line with the EU’s commitments opposed to renewing the Treaty or a compromise in the GATT Uruguay Round. Imports from many countries solution. Thus, the Commission proposed a gradual enter the EU at preferential rates under bilateral transition of these two sectors into the Treaty establishing agreements. Imports of steel products from all countries the European Community. The rules of this Treaty have except Russia, Ukraine and Kazakhstan enter the EU freely applied to the coal and steel trade since the expiry of the without facing quantitative restrictions or similar barriers. ECSC Treaty. Naturally, the global economic situation has had a great A protocol on the inancial consequences of the expiry of impact on demand for steel. World export prices for a the ECSC Treaty and on the research fund for coal and steel tonne of commonly traded hot-rolled coil rose to USD 400 is annexed to the Treaty of Nice. This protocol provides for during 2003, up from USD 260 in 2002 and USD 175 in the transfer of all assets and liabilities of the ECSC to the 2001. The rises have sparked anger on the part of big steel European Community and for the use of the net worth of users like Caterpillar, the US maker of construction these assets and liabilities for research in the sectors related machines, and Emerson, a leading electronics equipment to the coal and steel industry. producer. Since January 2002, the shares of Ispat, Corus, Some decisions of February 2003 contain the necessary Nucor and Arcelor (some of the largest steel making measures for the implementation of the provisions of the companies in the world) have risen 85 %, 31 %, 28 % and protocol, the inancial guidelines and the provisions 22 % respectively, relative to world stock markets. However, relating to the research fund for coal and steel. Thus, since while demand in the EU and the United States is the Treaty of Maastricht, Article 157 of the EC Treaty decreasing rapidly, China comes to the rescue of the constitutes the legal basis for the steel industry. This article, world’s steel makers. Unexpected surges in demand of as is governed by co-decision, giving the European Parliament much as 10 % in 2002 pulled global steel consumption to a (EP/Parliament) the role of co-legislator. record level in 2002. The high demand is primarily a result of the country’s booming construction industry. B. Objectives To reduce costs and increase competitiveness, many large steel producers are collaborating on the improvement of The EU is the world’s second largest steel producer after production technologies. In 2002, Eurostrip, and Arcelor, China, with total production of crude steel of 143 million ThyssenKrupp and Voest Alpine consortium, set up two test tonnes in 2004 (30 % of world production). The European plants in Germany and Italy, producing steel by a thin-strip steel industry comprises some 300 enterprises — almost all method called Castrip, based on technology originally of them large. They account for about 1.8 % of the value developed by BHP, an Australian mining and steel concern. added and 1.5 % of employment in EU manufacturing. The partners are currently attempting to license this There has been a rapid growth in steel production technology, which they say could lead to steel plants elsewhere in the world — mainly in Asia — leading to a making 500 000 tonnes a year with half the costs of sharp decline in the EU’s traditional surplus in iron and conventional mills. steel. EU imports have increased from 15.4 million tonnes in
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In March 2002, US President Bush announced tarifs for Lamy said the decision on whether to retaliate or not three years of up to 30 % on imported steel, guided by would depend on how many European steel companies section 201 of the Trade Act, a safeguard clause in US trade gained exemptions from the tarifs. legislation. This decision was made in order to protect the The climbing steel prices afect in particular the automotive country’s ailing steel industry during a restructuring of the industry. In Russia, car producers have had to break American industry. President Bush had followed the contract relations with regional steel producers and start International Trade Commission’s recommendation from building new ones with foreign suppliers, whose products 2001 to impose signiicant tarifs of between 20 % and can be cheaper. Russia exports steel worth up to 40 % on 17 steel products for three years in order to EUR 460 million a year to the USA, but its exports are remedy the steel crisis in the US. Under WTO rules, currently severely afected by the US tarifs. However, the countries can impose temporary increases in tarifs, known decrease in exports to the USA is being partly as safeguards, to give time for a domestic industry to compensated for by an EU–Russia trade agreement, signed restructure to improve competitiveness. The EU on 9 June 2002, designed to increase imports of certain Commission, however, claims the US action breaks WTO Russian steel products into the EU. The agreement rules. It is particularly concerned that there has been no increases quantitative limits for the import of steel products overall increase in steel imports — a precondition for such as lat and long products into the EU for 2002 to 2004. safeguard actions — and that some of the moves target Similar agreements have been made with both Ukraine the wrong steel products. Two thirds of EU steel exports and Kazakhstan. were afected by President Bush’s actions, which came into force two weeks after the announcement. From an environmental viewpoint the industry remains an important emitter of carbon dioxide, accounting for around In June 2002, the WTO’s Dispute Settlement Body accepted 30 % of all industrial CO2 emissions in the EU. During the the request by the Commission and by other world last 20 years, the energy required to produce a tonne of producers that a panel should be established to judge the steel has fallen by 40 %, and throughout the nineties there legality of the US steel safeguards. Their arguments has been a reduction of 20 % in CO2 emissions for the included the following: industry. Steel is 100 % recyclable with no downgrading in — the US hit a wide diversity of steel products on the basis quality. This makes steel the most recycled material in the of an arbitrary deinition of like-products; world. — the US action was not justiied by sudden, recent, sharp In many of the new Member States the steel industry is of and signiicant increase in imports; great importance. In March 2002, representatives from the — the US failed to ensure that the injury caused by other Czech Republic held meetings with the EU on the factors is not attributed to imports; restructuring of the Czech steel industry. Poland is seeking a privatisation of the industry with help from foreign — as a result, the US measures are disproportionate investors. Polish production in the irst quarter of 2002 fell because they go beyond the extent 11.3 % from the same period of 2001, and in the second — necessary to remedy the injury caused by imports; quarter fell a further 16 %, producing 8.8 million tonnes of steel compared to 10.5 million tonnes in 2000. Nearly half — the US excluded imports from certain WTO members of Poland’s 25 steel mills have been privatised since 1990, from the measures, in a manner incompatible with and over EUR 1 000 million have been invested in relevant WTO provisions; modernisation programmes over the same period. — the US failed to observe the obligation to grant equal Romania is attempting to retain its privileged status under treatment in excluding developing members from their the association agreement with the EU. protectionist measures. For some time now, the EU has been pressed by Japan to The tarifs afected two thirds of the EU’s steel exports and allow the new Member States of central Europe to prolong the Commission rapidly took action, imposing additional the favourable terms which they accord to foreign customs duties on imports of certain US products. On 12 investment. Japanese companies are concerned that their July 2002, the total number of steel products exempted investment advantages will be lost if Poland, the Czech from the tarifs was 250, or about 6 %. Most of the Republic, Hungary and other new EU members abolish the exempted products were smaller speciality items, which preferential rules designed to attract foreign capital. So far, are not sold in large volumes in the US. Retaliatory the EU has insisted on an end to the practice as a condition sanctions from the EU towards the US could amount to as of EU membership. much as EUR 378 million. EU Trade Commissioner Pascal
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01_2006_4661_txt_EN.indd 231 30-10-2007 14:55:08 C. Achievements job losses throughout Europe. The Commission was asked After the expiry of the ECSC Treaty, the Eurostat statistics to pursue, through both the OECD and the WTO, stricter system on the steel industry was meant to expire. However, multinational rules against unfair competition. both the steel industry and the Commission requested a Enlargement has afected the agreements with a number prolongation of the system until the end of 2002, since of countries. The customs duties applied to all of the new statistics have shown to be an important aid in the EU Member States and Turkey will be gradually reduced. decision-making process for both policy makers and the Similarly, the Council has amended its agreements with industry. In 2003, Regulation (EC) No 48/2004 of the EP and Ukraine (Decision 2004/521/EC), Russia and Kazakhstan, of the Council established a common framework for the which all relate to trade in certain steel products. statistics on the production of the steel industry for the The European Commission has also taken a more irm period 2003–09. Each year the Member States forward their position on imports originating from such countries as aggregated data to the Commission, which within ive Russia, India, Ukraine, China and other major non-European years of the entry into force of the Regulation must submit producers by introducing a set of anti-dumping duties. a report to the EP and the Council on its implementation. As a response to the US tarifs, a resolution of the ECSC D. Role of the European Parliament Consultative Committee was adopted unanimously in April The EP has on several occasions sought to defend Europe’s 2002. The Consultative Committee, whilst recognising that iron and steel industry. the US steel industry is faced with economic, social and regional problems, irmly contested that these problems — In its resolution of 12 February 2004, Parliament states were caused by imports, since the volume of imports into that it is necessary to ensure that a strong and modern the US in 2001 alone fell by more than 23 %. The steel sector is maintained in the EU, in order to meet the Consultative Committee doubted that there were suicient requirements of lasting development and job creation. grounds for taking measures under Article 201 of the US It urges the Commission to act irmly within the WTO Trade Act. The irst steps had already been taken in January and OECD to guarantee that there is a level playing ield 2002, when the Commission adopted Regulation (EC) No in the global steel market. It also welcomes the eforts 76/2002 introducing prior surveillance of imports of certain made by Commissioner Lamy in the steel conlict with iron and steel products covered by the ECSC and EU the US and expresses its concern about the steady loss Treaties originating in certain third countries as a response of market share of Italian and European steel to the already worsened situation of the steel industry and production. the possibility of American-imposed tarifs. — In its resolution of 24 February 2005, Parliament invites Council Regulation (EC) No 1031/2002 established the Commission, after the expiry of the ECSC Treaty, to additional customs duties on imports of certain products present a strategy for the future prospects of the steel originating in the US. Additional duty of 100 % was sector in order to promote independent European imposed on certain products such as some dried capacity in this sector. It also calls on the Commission to vegetables, fruits, juices and clothing. In February 2003, work for a decision at WTO and OECD level that would Parliament expressed its concern in two resolutions in ensure the protection of the Union’s steel industry on February 2003 about the continuing US tarifs and the the international market. overall crisis in the steel industry, pointing to the decision of the steel giant, Arcelor, to close hot rolling lines in all the g Miklos GyöRFFI group’s continental sites, which will lead to thousands of 09/2006
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4.7.3. Shipbuilding
Legal basis had been declared bankrupt were not closed down, but Since the Treaty of Maastricht, Article 157 of the EC Treaty freed of debt by the state without capacity restrictions in has laid down initiatives for industrial policy by which the return. The devaluation of the South Korean currency gave Commission can coordinate the actions of Member States. the yards an additional competitive advantage. In 1999, This article, which was amended by the Treaty of Nice, prices from the Korean yards had been reduced to down to governed by co-decision, giving the European Parliament 40 % below production costs, according to an EU (Parliament) the role of co-legislator is the one also to serve Commission report. And since the EU was pursuing a policy as the legal basis for the shipbuilding industry. to reduce the State aid granted to European shipbuilding companies, the lower prices of the Asian companies meant signiicant market shares for the Korean shipyards. Thanks Objectives to a historically high level of ordering in 2000, prices In 2004, Japan was the world’s largest shipbuilding country, recovered to some extent, but the signiicant drop in orders followed by Korea. Today the EU only accounts for 13 % of in 2001 led to a new reduction in prices (total orders were world tonnage (2002). The largest European shipbuilding 21 % lower in 2001 than in 2000 based on cgt). While the group is the Norwegian Aker Yards Group, the worlds decline in the world economy in 2001 mainly afected the fourth largest, with more than 10 shipyards. The industry in liquid bulk and the container segments, the events of 11 Europe covers the highest technological segment of world September had a strong impact on the cruise industry, production: advanced container vessels, ferries and ro-ro which saw three bankruptcies and a signiicant drop in ships, multipurpose and shuttle tankers, ofshore platforms bookings. and FPSO, chemical and gas carriers, sophisticated ishing Up to May 2001, the Commission tried to engage South vessels and small, specialised ships. Korea in talks aiming to stabilise the world shipbuilding The shipbuilding industry has for some time been facing market through market instruments. The investigation into major problems due to an imbalance of supply and subsidies carried out under the Trade Barrier Regulation demand. Past expansion of shipyards, mainly in Korea but (TBR) established that substantial subsidies had been increasingly in China too, has resulted in prices decreasing granted to Korean shipyards through both export and rapidly. The global economic situation has led to a sharp domestic programmes, which contradicted the WTO’s 1994 decline in demand; in 2001, only the segment of liqueied Subsidies Agreement. These eforts took place on a bilateral natural gas carriers (LNGs) saw an increase in absolute order level and in the OECD. However, no progress was achieved, volume. However, this is a niche market as it only as the Korean government claimed that it had no inluence represents around 8 % of world orders in compensated on the shipyards or on the inancial institutions supporting gross tonnes (cgt). Korean yards took 79 % of new LNG them, and further said that it was convinced business was carrier orders in 2001, without holding any patents on the conducted along free market principles. requisite key technologies. Daewoo Shipbuilding, the After the fruitless talks between Korea and the EU, the world’s second largest shipbuilder, is the world’s largest Commission drew up a TBR report in May 2001. It found constructor of LNG carriers, taking half of world LNG that Korean state aid to shipyards included, in particular, aid tonnage orders in 2000. Along with semiconductors and totalling EUR 2 600 million to Daewoo and steel, shipbuilding was the major driver of South Korea’s EUR 1 700 million to Sambo. In October 2000, the economic growth in 2001. Committee of European Union Shipbuilders’ Associations In the 1990s, South Korean shipyards tripled their (CESA) lodged a complaint under TBR in order to eliminate shipbuilding capacities, while ignoring demand levels in certain trade practices caused by the subsidising of order to achieve market leadership, which they achieved in commercial shipbuilding in Korea and adversely afecting 1999. This led to overcapacity and destructive prices for the EU sales of commercial vessels. The report found subsidies international shipbuilding market. Even the economic and in the form of the advance payment guarantees and loans inancial crisis in South Korea, which began in 1997, did not provided by the state-owned Export-Import Bank of Korea lead to a change of course, although the country had been (KEXIM), which were not consistent with WTO regulations, granted substantial international inancial support under debt forgiveness and interest relief by government-owned the condition that it incorporated the principles of a free and government-controlled banks, and special tax market economy. Shipyards that were heavily indebted and concessions.
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01_2006_4661_txt_EN.indd 233 30-10-2007 14:55:09 In the middle of the trade dispute with the EU, South Korea signiicantly from the Kosovo conlict. There are positive unveiled an ambitious programme on 17 June 2002 to signs in Lithuania and Latvia with the four Lithuanian yards extend the country’s leadership in the industry, ignoring expanding beyond their traditional Eastern European foreign pressure to reduce capacity. The programme — customer base to Scandinavia and western Europe. suggested at a meeting of government oicials and Europe’s third-largest shipbuilder, Poland’s Gdansk Shipyard, shipbuilders — called for USD 170 million to develop new iled for bankruptcy in 2002, with debts of USD 448 million. technology over the next 10 years. At the meeting, the However, the company reopened with fewer workers with Korean shipbuilders agreed to raise their global market the help of the Polish government, since the industry share from 30 % in 2001 to 40 % in 2010. It was suggested needed to be cleared up before EU entry. It employs about that high-end and high-margin vessels such as cruise ships 7 500 people, with revenue worth EUR 300 million in 2005. and supply vessels should account for 35 % of total production in 2010 compared to 13 % in 2001. Achievements Furthermore, they promised to boost exports of As regards the Republic of Korea and the EU, the shipbuilding equipment and parts to USD 2 000 million by Commission is claiming that the Korean shipbuilding 2010 from USD 370 million in 2001. In 2001, ship exports industry is contravening the WTO’s 1994 Subsidies accounted for 6.4 % of South Korea’s total exports. The Agreement. Also in 1994, Council Regulation (EC) No programme also highlighted concerns about Japanese 3286/94 (the Trade Barrier Regulation) was adopted. This shipbuilders who were teaming up to compete with regulation sought to establish the necessary EU procedures Korean rivals through mergers and strategic partnerships. in the ield of the common commercial policy to enable Still, the Korean shipbuilders had enough construction the EU to exercise its rights under international trade rules, orders to keep them busy until the end of 2003. In May in particular those established under WTO auspices. On 24 2002, the world’s largest shipbuilder, Hyundai Heavy October 2000, the Committee of European Union Industries won USD 400 million worth of orders from four Shipbuilders Associations’ (CESA) iled an oicial complaint shipping irms to build 12 petroleum carriers. At that time, under the Trade Barrier Regulation (TBR). Hyundai had captured orders for 22 ships worth about USD 800 million, bringing its backlog to 110 ships, enough With a view to achieving a quick settlement of the dispute, to occupy its shipyards for the next two and a half years. on 18–19 July 2000 the EU and Korea held a irst round of consultations on shipbuilding in Seoul. The EC and Korea In order to further increase sales in the EU, Korean adopted minutes on that occasion with a view to shipbuilders have been holding talks with several Dutch promoting fair and competitive conditions and stabilising companies, which are said to be very strong in ields like the market. In accordance with these minutes, the Korean navigation, consulting and high-tech equipment. government agreed to refrain from any direct or indirect Furthermore, the Netherlands has the asset of the Port of intervention to underwrite loss-making Korean shipyards Rotterdam, which has grown to become one of the busiest and to apply internationally accepted inancial and in the world. In 2001, the Netherlands was the second accounting principles to ensure that Korean shipyards set largest investor in Korea after the US. Korean shipbuilders prices that relected market conditions. The EU ended are also highly interested in the Czech Republic, which they operating aid in the form of subsidies to European hope to use as an entry point to the EU market. The shipbuilders on 31 December 2000, because the country was ideal for investments just before it became a Commission was convinced that State aid was in principle part of the EU, since there were a large number of a factor that distorted competition and did not necessarily advantages for foreign investors: cheap labour, 10-year tax help the industry to improve its competitiveness. holidays, job creation grants and duty-free import of machinery. Furthermore, the country’s steel production is Given the failure of the negotiations between the EU and known by shipbuilders worldwide to be of high quality. Korea, on 25 July 2001 the EU proposed adopting a Council regulation imposing a temporary defensive mechanism of As far as the new Member States are concerned, the providing EU shipbuilders with subsidies in order to make Commission carried out a study in 2000, in which it is them competitive once more. It was one element of the stated that eastern European yards need cash aid in order Commission’s two-stage strategy, which consisted of to withstand the competition after their accession to the proposing a temporary defensive mechanism and then EU. Bulgaria requires inancial support from outside the EU initiating dispute settlement proceedings. Competition because of the weakness of the country’s banking system, Commissioner Mario Monti stated that the proposal in no according to the report. However, low labour costs bring way aimed to reintroduce operating aid to shipbuilding, hope for the industry in the future. The Slovakian sector is which came to an end on 31 December 2000, but was having the same problems and is furthermore still sufering
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simply a way of bringing back the competitiveness of the No 1177/2002 was due to expire on 31 March 2004 and as European industry. The proposal was adopted on 27 June the Republic of Korea had not yet implemented the 2002, with the EU irstly aiming to resolve the dispute measures decided upon in the ‘agreed minutes’ and the amicably, after which it would immediately launch discussions in the WTO had little chance of inishing before procedures for the establishment of a panel of experts that date, it was decided that the temporary defensive responsible for preparing the EU–Korea case within the mechanism would be extended to 31 March 2005. WTO and activate the temporary defensive mechanism for Given the prospect of enlargement, the Commission European shipbuilding, disregarding the reservations of proposed a new programme, LeaderSHIP 2015, which Finland, Sweden, Denmark and the UK. France decided to deines the future of the European shipbuilding and ship back the Commission’s proposal at the meeting of the EU repair industry. This programme was drawn up within the Industry Council on 6 June 2002 in Luxembourg, thus framework of Industrial Policy in an Enlarged Europe. helping to create the qualiied majority in the Council LeaderSHIP 2015, which seeks to promote safe and required for the process. A year earlier, the Commission had environmentally-friendly shipbuilding together with a already proposed reintroducing subsidies temporarily for European approach to the needs of the shipbuilding European shipyards, but disagreement among the 15 industry, is the equivalent of ‘G10 Medicines’ for the States had blocked the plan. This time, Competition pharmaceutical industry and ‘STAR 21’ for the aerospace Commissioner Mario Monti said that the compromise plan industry. would reduce the amount of subsidies from the originally proposed 14 % and that it would also limit their duration and scope. The Commission will now hold a series of Role of the European Parliament further negotiations with the Korean authorities in an Parliament has for a long time defended the European attempt to restore normal trading practices. The proposal shipbuilding sector, particularly in light of the competition for the defensive mechanism was limited to those market from South Korea. In its resolution of 30 May 2002, in which segments in which the Commission and the Council found it states that, as early as November 2001, it approved the that the EU industry had been considerably injured by Commission proposal for a Council regulation concerning a unfair Korean trade practices, namely container ships and temporary defensive mechanism for shipbuilding, tankers carrying products in general and chemicals in Parliament ‘recalls that it asked the Commission to amend particular its proposal to include other market segments, namely gas tankers (LNG and LPG carriers), ferries and ro-ro vessels, as Seeing that the negotiations broke down between the EU these ship types are also referred to in the complaint and South Korean authorities in September 2002, the lodged with the WTO’. Parliament also reiterated its Commission stated in its Communication on the world demand that the proposed temporary defensive shipbuilding industry (6th report) of November 2002 that it mechanism should accompany the Community’s actions had again initiated WTO action against Korea through the against Korea in the WTO and that it should apply only for dispute settlement procedure. the duration of the WTO proceedings. On 11 June 2003, the Community called on the Dispute Settlement Body (DSB) to establish a panel on the unfair g Miklos GyöRFFI practices of Korea’s shipbuilding sector. As Regulation (EC) 09/2006
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Legal basis — tractors: Directive 2003/37/EC on type-approval of Although the Treaty of Rome contained no speciic agricultural or forestry tractors, their trailers and provisions on a common policy for the automobile attached equipment entered into force in July 2003. industry, the Treaty’s provisions on competition, State aid The EU Whole Vehicle Type-Approval (WVTA) system has (Articles 81–89) and the internal market empower the been mandatory for passengers cars and motorcycles since Commission to intervene in the automobile market. It may October 1998 and June 1999, respectively. As a result, the be authorised to negotiate with third countries (external manufacturers have only one set of rules to consider (the policy). Article 157 of the Treaty provides the legal basis relevant European type-approval directives) before generally used for the EU industrial policy. marketing their products anywhere in the EU. Optional harmonisation has been achieved for tractors Objectives since 1990. For this category, manufacturers may choose The EU is focused on strengthening the competitiveness of between applying the EU directives and obtaining a WVTA, the European automotive industry by implementing an or requesting a national type-approval based on the efective internal market and global regulatory framework technical requirements of a Member State. as well as promoting the interests of industry in other areas Partial harmonisation has been achieved for the remaining such as transport, the environment, competition, trade and vehicle categories, i.e. heavy goods vehicles. A directive has enlargement. been proposed to make the WVTA principle compulsory for these types of vehicles in stages, from 2007 to 2013. Achievements The principle of type-approval implies that each authority At the beginning of 2005 the Commission launched the granting an approval for a vehicle, a system, a component high-level group CARS 21 (‘Competitive Automotive or a technical unit is and remains solely responsible for Regulatory System for the 21st Century’), which brought ensuring the conformity of production (COP) during the together all the representatives of the car sector: from whole period of validity of the approval. manufacturers to oil companies and consumer In the ield of vehicle safety, a number of directives have associations. The task of this group was to relect upon the been adopted, i.e. protection of motor vehicle occupants in future of Europe’s automobile sector, which employs more the event of a frontal and side impact (Directives 96/79/EC than 2 million people and is the world leader in this ield. and 96/27/EC respectively), frontal underrun protection of By the end of 2005 the group has produced its inal report heavy goods vehicles (Directive 2000/40/EC), liquid-fuel in which it has determined the regulatory measures tanks and rear underrun protection of motor vehicles and required over the next 10 years. Its objectives include better their trailers (Directive 2000/8/EC), and roadworthiness tests lawmaking and simpliication of the legislation that exists. for motor vehicles and their trailers (Directive 99/52/EC). In addition to the aim of making the industry more The Commission is concerned with the safety of competitive, the EU made an overview of priorities in road pedestrians and cyclists through the voluntary agreement safety (COM(2000) 125) and policies on pollutant emissions. signed with the automobile industry. This system will A. Internal market eventually be supplemented with a directive on the frontal Harmonisation of technical requirements on motor vehicles protection of vehicles. The text is currently being examined has been achieved for three categories of vehicles: and the European Parliament (EP/Parliament) has passenger cars, motorcycles and tractors. In total, over 100 completed its irst reading. directives are in place regulating the construction and B. Competition policy functioning of motor vehicles: In promoting industrial cooperation to assist small suppliers — motor vehicles: Directive 70/156/EEC on type-approval of motor vehicle components, the Commission adopted of motor vehicles and their trailers, amended 19 times Regulation (EC) No 1475/95 on the application of the since 1970, lastly by Directive 2003/97/EC; competition rules of the Treaty to certain categories of — motorcycles: Directive 2002/24/EC on type-approval of motor vehicle distribution and service agreements valid for two or three-wheeled motor vehicles and tractors; a seven-year period. It provides an instrument to reduce price diferentials within the EU for cars, opening up the
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possibility of parallel trade. The Commission periodically In addition, the EU negotiated, through the UN-ECE, a new publishes surveys of car price diferentials between Global Agreement of 1998 to allow non-contracting parties Member States. to the 1958 Global Agreement, such as the US, to be associated more closely with the international C. Research and development policy harmonisation process. Both instruments have the same The car industry is a signiicant recipient of the EU funding scope as to harmonising technical regulations on motor set aside for research and development under the Sixth vehicles and parts, but the 1998 agreement does not Framework Programme (2002–06). In the Seventh provide for the mutual recognition of approvals granted on Framework Programme (2007–13) the industry will also the basis of global technical regulations. As regards receive signiicant funding, however, in a way to be able to decision-making, the 1998 agreement is based on respond to critical events and challenges of future consensus, whereas the 1958 agreement relies on majority transportation systems for example novel transport and voting of regulations. In addition, unlike the regulations vehicle concepts, automation, mobility or organisation. adopted under the 1958 agreement, those adopted under D. External trade policy the Global Agreement do not have direct efect in the contracting parties’ legal systems. The EU’s external trade policy is designed to protect its automobile market and to improve its industry’s access to E. Environment policy third countries through trade policy measures. As far as environmental protection is concerned, signiicant The Council’s 1994 measures establishing the EU’s import progress has been made in reducing pollutant emissions, system and rules governing external trade defence greenhouse gases and waste: instruments gave the EU a set of rules that enables it to — Directive 70/220/EEC on measures to be taken against deal with unfair trade practices more efectively than air pollution by emissions from motor vehicles lays before. down the limit values for motor vehicle carbon In 1991 the EU concluded a trade agreement with Japan monoxide and unburnt hydrocarbon emissions; aimed particularly at gradually opening the EU market to — Commission Directive 77/102/EEC added limit values for Japanese cars and light commercial vehicles during a emissions of nitrogen oxides (NOx); transitional period ending on 31 March 1999 and precluding market disruptions that such imports might — Directive 88/436/EEC introduced limit values for cause. Both Japanese and Korean markets have been particulate emissions from diesel engines; opened further to European imports. During 1998, the — Directive 94/12/EC introduced more stringent limit Commission continued to ensure correct application of the values and provided for a 50 % reduction in the most EU–Japan arrangement for Japanese exports of cars and harmful vehicle emissions compared to 1991 levels; light commercial vehicles. — Directive 98/69/EC introduced yet more stringent Global technical harmonisation is a key factor in values to apply from 2000 and 2005, according to the strengthening the competitiveness of the European type of vehicle. automotive industry worldwide. The EU strategy to reduce CO2 emissions from passenger The EU and its Member States have always been at the cars and improve fuel economy (COM(1995) 689 inal) was forefront of international harmonisation eforts by endorsed by the Council in 1996. It aims to achieve an
actively supporting the work within the Revised 1958 average speciic CO2 emission igure for all passenger cars
Agreement of the UN Economic Commission for Europe of 120g CO2/km by 2010 at the latest. The objective is to be (UN-ECE) on international technical harmonisation in the achieved by three instruments: motor vehicle sector. The EU became a contracting party — commitments by the automobile industry on fuel to the agreement on 24 March 1998 and over 100 economy improvements, to achieve an average speciic regulations have been developed under its auspices. CO2 emission igure for new passenger cars of 140g There is a very strong analogy between EU legislation CO2/km by 2008/9; and some of these regulations in terms of their technical provisions. The EU has adopted 78 regulations to date, — labelling of cars with information on fuel economy and most of which are considered to be equivalent to their CO2 emissions of new passenger cars ofered for sale or corresponding EU directives. As a result, type-approvals lease in the EU to enable consumers to make an based on these regulations are accepted in the EU as informed choice; equivalent to type-approvals based on the respective — the promotion of car fuel eiciency by iscal measures. separate directives. The Environment Council in October 1999 reiterated the
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01_2006_4661_txt_EN.indd 237 30-10-2007 14:55:10 need to study the possibility of establishing a reference Role of the European Parliament framework for iscal incentives. The EP has always taken a close interest in the EU The EU established a programme on air quality, road traic automobile industry. It has supported the Commission and emissions, fuels and engine technologies (the Auto-Oil encouraged it to establish a common automobile market, Programme) in 1997. Its objective is to develop an to promote the general competitiveness of the automobile enhanced methodology to assess measures to reduce industry and to ensure a better balance of trade with third noxious emissions from road transport and other sources. countries. Much attention has also been devoted to This technical input will help develop vehicle emission and problems relating to air pollution by emissions. fuel quality standards and other measures to achieve the air As far as CARS 21 is concerned, on 6 October 2005 quality standards and related objectives at least possible Parliament held a public hearing, organised jointly by the cost. Committees on the Internal Market, Transport and the A study on emission control technology for heavy-duty Environment. The hearing examined the competitiveness vehicles, delivered in May 2002 by a consortium of six of the car industry and issues concerning road safety and organisations, will assist the Commission in the environmental protection. development of future legislation. Two members of the EP participated in the CARS 21 high- The Auto-Oil II Programme was reviewed by the level group as Parliament’s representatives in the group: Commission in its communication COM(2000) 626. Garrelt Duin (PSE) and Malcolm Harbour (EPP-ED). Provisions to ensure that new passenger cars and light-duty trucks up to 3 500 kg are designed to comply with required g Miklos GyöRFFI minimum rates with respect to their ‘reusability’, ‘recyclability’ 09/2006 and ‘recoverability’ have been included in the Directive 2005/64/EC of the EP and Council of 26 October 2005.
4.7.5. The chemical and pharmaceutical industries
Legal basis Achievements The Treaty of Rome does not contain any speciic provisions A. Chemical industry for the chemical and pharmaceutical industry. However, Chemicals are used in all of today’s consumer products: the EU may undertake certain actions within the framework food production, medicines, textiles, cars, etc. They also of competition policy (Articles 81–89), the mandate of 30 contribute to the economic and social well-being of May 1980, which empowers the Commission to put citizens in terms of trade and employment. The global forward proposals particularly on industrial policy (Article production of chemicals has increased from 1 million 308), the common commercial policy and the completion tonnes in 1930 to 400 million tonnes today. In 2003, the EU of the internal market (Article 95), and, in certain cases, on chemical industry was the world’s largest, followed by that the basis of Article 152 on public health. Article 157 of the US, with 34 % of production value and a trade provides for the possibility of coordination by the surplus of EUR 60 billion. Commission of Member States’ initiatives on EU industrial policy. The chemical industry is also Europe’s third largest manufacturing industry. It employs 1.8 million people directly and up to 3 million jobs are dependent on it. As Objectives well as several leading multinationals, it comprises around The EU attempts to create favourable conditions for a 36 000 SMEs, which represent 96 % of the total number of single market, to have a uniied commercial policy and to enterprises and account for 28 % of chemical production. stimulate investment in this sector.
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1. Internal market 3. Research and development policy The current system of EU chemicals legislation consists of The bulk of investment in the chemical industry relates to four legal instruments: R & D. The principal pioneering sector is biotechnology, i.e. — Directives 67/548/EEC and 99/45/EC on classiication, the application of scientiic and engineering principles to packaging and labelling of dangerous substances and the treatment of matter with biological agents. Innovation preparations; is also taking place in a second ield, that of new materials (advanced composite materials, plastics, ceramics, etc.), — Regulation (EEC) No 793/93 on the evaluation of the which have themselves led to signiicant breakthroughs in existing substances; microelectronics and biotechnology. Many chemical irms — Directive 76/769/EEC on marketing restrictions on have taken part in projects sponsored under the framework dangerous substances. programme of EU research and technological development activities. Not only does the programme provide inancial There is consensus on using these instruments more contributions to meet 50 % of research costs, it also pools eiciently and implementing and enforcing them more the research carried out by various institutes and regions, rigorously. opening up new market opportunities. A 2001 Commission White Paper proposed a strategy on future EU chemicals policy with the overriding goal of B. Pharmaceutical industry sustainable development. In order to achieve this, the The sector is characterised by: Commission identiied a number of objectives to achieve — the high cost of research; sustainable development in the chemicals industry within the framework of the single market, namely: — concentration of the industry; — protection of human health and the environment; — market fragmentation, especially in price terms. — maintenance and enhancement of the competitiveness 1. Internal market of the EU chemical industry; In order to remove obstacles to the internal market in pharmaceuticals while at the same time ensuring a high — prevention of fragmentation of the internal market. level of public health protection, the EU has, since 1965, This White Paper gave rise to the Commission’s ‘REACH’ gradually developed a harmonised legislative framework proposal concerning the registration, evaluation and for medicinal products. The current system is based on two authorisation of all existing chemicals. This proposal for a separate procedures for marketing authorisation: directive seeks to ind a balance between the — the centralised procedure leads to a single marketing competitiveness of the chemical industry and authorisation valid throughout the EU based on a environmental and health protection by testing and scientiic evaluation by the committees created within registering almost 30 000 chemical substances. A European the European Agency for the Evaluation of Medicinal Chemicals Agency is also planned. Products (EMEA) in London. This procedure is 2. Competition policy mandatory for certain medicinal products developed by Under the terms of the EU’s competition policy, any means of biotechnological processes, and optional for agreement among chemical irms to restructure the market certain other categories of medicinal products, such as requires prior authorisation from the Commission. The those that contain new active substances, and those Commission used its investigative powers when it presenting a signiicant innovation. suspected price-ixing in the EU plastics market early in — for those medicinal products not eligible for the 1987. State aid for the chemical industry has also to be centralised procedure, or where the applicant chooses authorised (see annual reports on competition policy). EU not to follow the centralised procedure, the system legislation, such as the block exemption regulations on provides for a mutual recognition procedure. This specialisation, research and development and patent procedure has to be used by the applicant whenever an licensing, is particularly important for this industry. application for marketing authorisation for a medicinal Commission Communication COM(96) 187 set out a product concerns two or more Member States. framework for action to strengthen the chemical industry’s Regulation (EEC) No 2309/93 introduced the centralised long-term competitiveness on the basis of speciic actions: procedure, which entered into force in 1995. Within six improving the regulatory framework; ensuring efective years, the Commission was obliged to report on the competition; encouraging intangible investment and experience acquired in Chapter III of Directive 75/319/EEC developing industrial cooperation. on medicinal products for human use and in Chapter IV of
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01_2006_4661_txt_EN.indd 239 30-10-2007 14:55:10 Directive 81/851/EEC on medicinal products for veterinary discussions, Directive 76/768/EEC on cosmetic products use. The pharmacovigilance chapters of the latter were was adopted. This directive takes into account the needs of amended by Directives 2000/38/EC and 2000/39/EC the consumer while encouraging commercial exchange respectively. These amendments are now integrated into and eliminating barriers to trade. One of its objectives is to Directives 2001/82/EC and 2001/83/EC, which, to improve give clear guidance on what requirements a safe cosmetic clarity and rationality, codify and consolidate in a single text product should fulil in order to circulate freely within the all EU legislation on medicinal products for human and EU, without pre-market authorisation. The safety of veterinary use. products is taken into consideration in the composition, In view of the experience gained from 1995 to 2000 and the packaging and information and it falls under the Commission’s analysis report ‘on the operation of the responsibility of the producer or the importer. procedures for the marketing authorisation of medicinal Commission Directive 95/17/EC lays down detailed rules for products’, the Commission proposed amending Directives the application of Directive 76/768/EEC as regards non- 2001/83/EC and 2001/82/EC. This revision was implemented inclusion of one or more ingredients on the list used for the through Directives 2004/27/EC and 2004/28/EC. labelling of cosmetic products. This legislative framework Alongside this revision, Regulation (EC) No 726/2004 was completed by an inventory and common amended the operation of the European Agency for the nomenclature of ingredients employed in cosmetic Evaluation of Medicinal Products (EMEA) and changed it to products established by Commission Decision 96/335/EC. the European Medicines Agency. The changes to the Directive 76/768/EEC has already undergone seven centralised procedure (Regulation (EC) No 2309/93) are amendments and 44 technical adaptations to take account corrections of certain operating methods and adjustments of scientiic progress. to take account of scientiic and technological The most recent amendment (Directive 2003/1/EC) related developments as well as the enlargement of the EU. to the eventual ban on animal testing for cosmetic products. 2. Competition policy These products will no longer be tested on animals in the EU There are great price disparities for medicines in the after 2009, and products tested on animals outside the EU Community. Governments also intervene decisively to will not be authorised for sale in the Union after 2013. inluence price levels and the conditions governing market access. As regards prices, harmonisation will depend upon Role of the European Parliament the way in which national social security systems are administered and an equalisation of income levels. A. Chemicals The European Parliament (EP/Parliament) has stressed that Council Directive 89/105 related to the transparency of the restructuring of the European petrochemical industry measures regulating the pricing of medicinal products for should be European rather than national, bearing in mind human use and their inclusion in the scope of national the international context in which it has to operate. The EP health insurance systems. Given that medicines are highly advocated an approach in which the Commission should innovative products that take a long time to develop, it is monitor the situation closely. There is a need to increase not possible to secure a proitable return on investments specialisation of product ranges in which European irms without a period of patent protection, because imitations enjoy a comparative advantage. On 13 March 1997 the EP quickly appear on the market. adopted a resolution on the chemical industry stressing the 3. Research and development policy elimination of excessive regulations and the conclusion of In implementing Communication COM(93) 718 on the multinational agreements for the protection of investment. outlines of an industrial policy for the pharmaceutical Parliament has also adopted a resolution on the REACH sector, the Commission noted signs of weakness in the EU proposal on 17 November 2005 in which approves an industry, particularly as regards its capacity to inance R & D amended version of the Commission proposal. In addition of innovative therapeutic drugs, and reviewed the to the parliamentary and legislative work on REACH, prospects for concentration and restructuring, since these Parliament organised a public hearing on REACH in January were likely to reshape the industry up to the turn of the 2005 on the joint initiative of the Committees on Industry, century. the Environment and the Internal Market. C. Cosmetics industry B. Pharmaceuticals In the early 1970s the EU decided to harmonise Member In the discussion about the pricing of medicinal products States’ national cosmetic regulations to enable the free (proposal for a directive, COM(86)765), the EP proposed in circulation of these products. Following intensive March 1988 that a data bank be created by the Commission
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in order to improve competition in the pharmaceutical resolution and the Internal Market Council Conclusions of sector and insisted upon transparency of transfer prices. 18 May 1998, the Commission published a Communication The Commission accepted all the amendments tabled by on the single market in pharmaceuticals (COM(98) 588) the EP at irst reading of this proposed directive. outlining an agenda of possible approaches and speciic On 14 November 1994 the EP adopted two resolutions measures to complete a single European pharmaceuticals dealing with the speciic research programmes (in the 4th market. Framework R & D Programme) on ‘biotechnology’ and In its capacity as co-legislator, Parliament has participated ‘biomedicine and health’. in all of the revisions of the directives on human and animal The resolutions adopted by the EP in April 1996 on the pharmaceutical products and the European Medicines Communication on the outlines of an industrial policy for Agency. the pharmaceutical industry stressed the need to ensure the industry’s innovation capacity, the reduction in the g Miklos GyöRFFI time required for the approval of new medicines and the 09/2006 cost efectiveness of research. In response to Parliament’s
4.7.6. The aerospace industry
Legal basis than EUR 20 billion of the aerospace industry’s Air transport policy is based on Article 80(2) of the EC EUR 80 billion annual turnover. The entry into service of the Treaty. Aircraft construction is based on Article 308, which enormous A380 carrier, due in 2006, should lead to an covers the cases in which the Treaty does not make explicit increase in this igure. provision for means of attaining one of the EU’s objectives. According to the July 2002 report of the European Advisory Article 157 is the legal basis generally used for actions in Group on Aerospace ‘Strategic Aerospace Review for the the ield of industrial policy. 21st Century’ (STAR 21), which consists of seven aerospace industry chairmen, ive European Commissioners, the EU Objectives High Representative for the common foreign and security policy and two members of the European Parliament (EP/ Aerospace is vital to Europe’s objectives for economic Parliament), the following features give the industry its growth, security and quality of life. It is inluenced by a distinctive character: broad range of European policies such as trade, transport, environment, security and defence. European aerospace — close links between civil and defence activities, must maintain a strong competitive position in the global — cyclical nature of the industry, aerospace marketplace, a condition for achieving the EU’s economic and political objectives. The Cologne European — high level of capital intensity, Council (June 1999) also recognised the need for an — consolidation, industrial and technological basis for defence to enable the — privatisation, EU to respond to international crises. — EU–US relationships. Achievements In response to the STAR 21 report, the Commission has The European aerospace industry is one of the world’s published a communication (COM(2003) 0600), which leaders in large civil aircraft, business jets and helicopters, proposes a coherent framework for the aerospace aero-engines and defence electronics, accounting for one industry. third of all aerospace business turnover worldwide, A. Aircraft industry compared with almost half for US industry. The 1. Competition policy construction of large passenger planes accounts for the The Council Resolution of 1975 and Declaration of 1977 bulk of the European industry’s turnover, totalling more laid the foundations for coordinating Member States’
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01_2006_4661_txt_EN.indd 241 30-10-2007 14:55:10 aircraft construction policies given that aerospace B. The space industry technology is advancing rapidly and becoming increasingly 1. Competition policy expensive, requiring extensive cooperation. The Airbus European governments began cooperating in the space programme is exemplary in this respect. Launched in 1968 sector through the European Space Agency (ESA), banks as an economic interest grouping, Airbus Industrie is now and industrial enterprises also being involved. The Ariane one of the most important players in Europe’s aeronautical programme, involving 10 European countries, was industry. Other cooperative projects are the Tornado, Alpha launched in 1983. In 1987 the ESA Council of Ministers said Jet and Transall programmes, which, together with joint that if Europe wanted to maintain its role in space in the space projects, greatly increase the competitiveness of future, ESA’s 13 Member States should agree the broad- European manufacturers. In 1985 a number of EU countries based development of the Ariane programme. The future agreed to pool their resources in developing the EFA or of the European aerospace industry depends on European ‘Euroighter’ for the 1990s. cooperation, since no European country has suicient In its 1997 communications on the European aerospace inancial and economic resources to implement major and defence-related industries, the Commission recognised space projects on its own. In 1996 the Commission that the industry is too fragmented to face up to proposed a European Space Strategy fostering applications international competition and that restructuring is going in telecommunications, satellite navigation and Earth too slowly. Accompanying measures were needed — observation. The measures proposed were based on actions under the Fifth European Framework Programme existing resources (RTD Framework Programme, trans- for Research, the application of public procurement rules, European networks, national and ESA programmes, EIB–EIF the adoption of a European Company Statute, uniform inancing), the alignment of trade positions and better certiication by a European Civil Aviation Authority and coordination. The 1996 and 1997 communications on European standardisation — to avoid a de facto US defence-related industries proposed the application of EU monopoly. rules on the award of public contracts, intra-Community trade and competition to this sector, which also includes In its 1999 communication ‘The European Airline industry: large parts of the aerospace industry. Beyond the from single market to worldwide challenges’, the emblematic success of the Ariane launcher, space activities Commission assessed the progress of the European airline have evolved from being a research endeavour to ofering industry and identiied policies to safeguard its a unique and critical technology enabling Europe to competitiveness. address and achieve a large number of policy goals related With a view to ensuring the competitiveness of Europe’s to economic growth, the information society, transport industries, the communication ‘Industrial Policy in an infrastructure, environmental protection and peace- Enlarged Europe’ (COM(2002) 0714) mentioned the keeping. Space has the potential to become an integral aerospace sector as one of the sectors that required a clear component of the EU’s core policies. The irst beneits of commitment on the part of the EU and the Member States such a development are already highlighted by the Galileo to improve competitiveness. and GMES initiatives, respectively in the ield of navigation 2. Research and development policy by satellite and global monitoring for environment and The progress made in aerospace research and industry security. owes more to intergovernmental action and cross-border Following the 2000 Communication ‘Europe and Space: projects launched by aerospace enterprises than EU Turning To a New Chapter’, endorsed by subsequent EU intervention. In 1988 the major aircraft manufacturers and ESA Council Resolutions, the Commission and the ESA published a report entitled ‘Euromart’ (European Executive set up a Joint Task Force. Its aims are to further Cooperative Measures for Aeronautical Research and develop and implement the European strategy for space, Technology), which focuses on a programme of reporting to the EU and ESA Councils and the EP at the end cooperative research and development, which is crucial if of 2001. In December 2001 the Commission this European industry is to thrive. It called for the Communication ‘Towards a European Space Policy’ gave an promotion of a strategic programme for the aeronautics analysis and recommendations for the space sector, industry, similar to that for the electronics sector (Esprit). In highlighting in particular the need to cooperate with the June 1995 the Commission set up an Aeronautics Task European Space Agency. In the Green Paper on European Force to coordinate research projects in the industry. Space Policy (COM(2003) 0017), the Commission, together Aeronautics and space research have been designated as with the ESA, began a consultation process with a view to research priorities of the 6th (2002–06) and 7th (2007–13) launching a debate on the medium and long-term use of R & D Framework Programme. space for the beneit of Europe. These discussions resulted
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in the publication of a White Paper and an action plan of market share. In November 1996, the future of the (White Paper ‘Space: a new frontier for an expanding Union European aerospace industry was discussed in an EP — An action plan for implementing the European space symposium; policy’ (COM(2003) 0673)). — in 1997 a resolution welcoming the EU Action Plan for 2. Research and development policy Satellite Communications in the Information Society as For many years, Europe’s public inancial support for space well as the Franco–German–UK declaration in favour of research and development was channelled through national a European-level restructuring of the military and civil space organisations and the ESA, although several space- aerospace industry and endorsing the transformation of related R & D technology projects have been inancially Airbus Industrie into a single corporate entity; supported under EU research framework programmes. The — in 1998, reacting to the 1996 Commission 7th Framework Programme is supporting the European communication on space, Parliament called for a Space Programme, focusing on applications such as: strengthening of EU support for Europe’s space industry, — global monitoring for environment and security (GMES) and reacting to the Commission Communication ‘The to provide information to the user community as European Union and Space: fostering applications, speciied in the EU Action Plan (2001–03); markets and industrial competitiveness’, it emphasised the urgent need for a reshaping of the EU’s space policy. — applications of satellite telecommunications to provide afordable and economically viable services to the In 2000 Parliament adopted a resolution on the largest possible customer base; Commission working document ‘Towards a Coherent European Approach for Space’. — security aspects (complementary to security research and to GMES activities); In January 2002 the EP stated that it ‘welcomes the drafting of a coherent European strategy for space and emphasises — exploration of space the importance of close and efective cooperation — RTD for strengthening space foundations (space between the Commission and the European Space Agency technology and space sciences). on this initiative’. C. Relations between Europe and the USA In October 2003 Parliament adopted a resolution A number of attempts have been made between the ESA reairming the need for Europe to play a leading role on and the USA to resolve the problem of State aid in the the international stage and be able to gain access to space aeronautics industry. In 1992 the Council adopted Decision through its own eforts, and to develop the necessary 92/496 on an agreement between the EU and the USA on technologies, actively involving the countries that have trade in large civil aircraft providing for discipline regarding joined the Union. It emphasised in this connection the fact all forms of government support for manufacturers of large that independent access to space for Europe is fully in civil aircraft. In 1997 the Commission reviewed the 1992 keeping with the Lisbon process seeking to make Europe agreement and decided that it could be improved, the world’s most competitive area through the acquisition particularly as regards subsidies to military programmes, via and development of a high level of industrial and research credits from NASA and the Pentagon. In July 1997 technological know-how. the Commission also authorised the Boeing/McDonnell- In January 2004, in a resolution on the implementation of Douglas merger, which had raised deep concerns about the space policy, Parliament states that the European Union competition. must make a supreme inancial efort, including in In January 2005 the EU and the United States agreed to particular the development of space applications relating begin negotiations on the subsidies afecting the large to global security. carrier market, dominated by two companies: Airbus and Boeing. The aim is to use the negotiations to eliminate the g Miklos GyöRFFI various subsidies and ensure full and complete 09/2006 competition between the two irms.
Role of the European Parliament The EP has adopted the following resolutions: — in 1996 a resolution on the EU aircraft industry, in which it expressed concern about the European industry’s loss
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Legal basis group in European ilm/TV/video as yet rivals the global EC Treaty: reach of the US ‘majors’ which in part explains why the EU audiovisual industry has a negative trade balance with the — Articles 23, 25, 28 (free movement of goods, including USA. The US Telecommunications Act of 1996, which audiovisual products); liberalised the cable, television, telecommunications — Articles 39–55 (free movement of workers, right of industry in the US, is likely to increase the competitive establishment, freedom to provide services); pressure and spread into the area of all (electronics) information-entertainment services, in which the EU has — Articles 81 and 82 (rules on competition); opened up its markets both internally and externally. — Article 95 (technical harmonisation, including advanced television services). 2. Main achievements Directive 95/47/EC on the use of standards for transmission Objectives of television signals. — The establishment of a common information area, Directive 92/38/EEC on standards for satellite broadcasting including the setting up of common standards. of television signals. — The promotion of television programmes with Council decision 93/424/EEC on an action plan for the European content as a complement to existing national introduction of advanced television services in Europe. programmes. Council decisions 89/337/EEC and 89/630/EEC concerning — Regulatory consistency among the Member States with High Deinition Television. a view to deregulation (or re-regulation) of broadcasting Other main achievements have been Directive 97/36/EC of activities. 20 June 1997 (‘Television without Frontiers’) and the MEDIA Programme. Directive 97/36/EC, amending the 1989 Achievements Directive 89/552/EEC, sets up rules for TV programming in the EU. These rules include, inter alia, provisions for 1. State of integration advertising, sponsorship, independent producers, European Television still operates on analog transmission systems, broadcasting preferences and decency standards. using three diferent standards (NTSC e.g. in North America, PAL in most of Europe, SECAM e.g. in France and French The MEDIA Programme, originally adopted in 1990 for speaking countries). ‘Over-the-air’ transmission is the most 1991–95, dedicated EUR 200 million to the European widely-used system in Europe but poor reception and audiovisual industry. The MEDIA II Programme (1996–2000) problems of frequency capacity have led to the (Council Decision 95/563/EC) has a budget allocation of development of cable and satellite. The various terrestrial EUR 310 million and seeks to encourage the free circulation transmission systems have not yet been harmonised. of European audiovisual works and reinforce the Digital transmission will permit many more (interactive) competitiveness of the programme industry. In its services thanks to digital compression. The European Communication (COM(98) 446) of 14 July 1998 ‘Audiovisual Digital Video Broadcasting (DVB) Group has deined policy: next steps’, the Commission identiied main trends speciications for digital satellite and cable which have and initiated a review process of audiovisual policy. On 27 become ETSI standards and ITU recommendations. High July 1998, the Commission proposed a Council decision Deinition Television is closely linked, inancially and establishing an EU statistical information infrastructure for commercially, with three sectors: telecommunications, the audiovisual industry and markets (SEC(1998) 1325). On consumer electronics, professional equipment and the 11 March 1999, the Commission proposed a Council components industry where the USA, Japan and Europe decision concerning EU participation in the European have diferent strengths. Another fast-developing market is audiovisual observatory (COM(99) 111). wide-screen television. 3. Competition policy and media concentration Even though there has been a boost in demand for TV (a) With the 1980’s liberalisation of the media in Europe, programmes, supply of truly European products and intra- ierce competition began for market share and position EU audiovisual trade remain relatively limited. Not one between European groups and US companies. In 1994,
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the European Commission carried out a vast HDTV is an electronic medium for cinema-quality consultation process with the European audio-visual programmes and is a major innovation in electronics. It is industry on the competitiveness and competition in the also the platform of the struggle over television standards audiovisual sector, which the White Paper on ‘Growth, in programme production, transmission and reception. Competitiveness and Employment’ (COM(93) 700), Council Decision 93/424/EEC provides an action plan for identiied as one of the key sectors in the Information the introduction of advanced television sources in Europe, Society. The exercise was based upon the Green Paper aiming at promoting the wide-screen 16:9 format (625 or ‘Strategy options to strengthen the European 1250 lines), irrespective of the European television standard programme industry in the context of the audiovisual used and irrespective of the broadcasting mode (terrestrial, policy of the European Union’ (COM(94) 96). Major satellite or cable). European audiovisual group strategies have focused on Directive 95/47, replacing Directive 92/38 on the use of the need to achieve critical mass, the desire to diversify standards for the transmission of television signals, provides and to secure access to larger international markets. A the legislative framework necessary for the introduction of series of important mergers and acquisitions have taken digital television in Europe. The directive requires that place, though many have been limited to a national digital TV service use standardised transmission systems, scale. without dictating the details of the standards. The directive (b) The Commission has begun to apply the EU’s also sets requirements on conditional access systems for competition rules to broadcasting organisations and to digital television, following intensive industry consultation the supranational multi-media groups. In December with the Digital Video Broadcasting (DVB) Group. 1992 it submitted a Green Paper ‘Pluralism and media The introduction of HDTV services is no longer the concentration in the internal market’ (COM(92) 480), immediate objective. Instead, there is a consensus among which emphasised that it is primarily for the Member market players that the introduction of the HDTV screen States to maintain the diversity of the media and that format — 16:9 wide-screen — is more strategically there are for the time being, suicient means of important and achievable. The advantage of 16:9 as a preventing concentration in the audiovisual sector. It policy is that it bypasses the debate on technologies; 16:9 therefore sees three options: no action at EU level; can be delivered using analogue or digital technologies. harmonisation of national laws on media ownership; Unlike its predecessors (the so-called MAC directives), there and greater transparency regarding media ownership. is no longer a single objective (HDTV) with a particular The EP has demanded a directive on media mandated approach. The Commission publishes its regular concentration (resolutions of 16 September 1992, 24 reports on progress in implementing the action plan for October 1994, 14 July 1995, 15 June 1995). In its the introduction of advanced television services in Europe resolution of 19 September 1996, the European (e.g. Annual Report 1997, COM(98) 441). At the end of 1999, Parliament (EP/Parliament) called for both EU and the Commission published its review of the market for national support to underpin the values of public digital television services in the EU in the context of the TV service broadcasting, in a time of increasing standards Directive 95/47/EC (COM(99) 540). competition between private, multinational media groups and public broadcasters. In the meantime, the Role of the European Parliament Commission is considering options for a draft directive 1. The EP’s resolutions on television have repeatedly called on access to media ownership. for common technical standards for direct broadcasting 4. Telecommunications and advanced television by satellite (DBS) with a view to preventing a services (HDTV) proliferation of diferent transmission standards, as with The establishment of a common market in broadcasting PAL and SECAM for colour television in the 1960s runs parallel to the EU’s initiatives in the (resolutions of 28 October 1983 and 22 October 1986). telecommunications sector. Both sectors are at a The EP has supported the introduction of HDTV transitional stage, and most Member States have reacted standards which are compatible with existing television by re-regulating their (often interlinked) national sets and has advocated the Community’s adoption of a telecommunications and broadcasting systems. Parliament common position on the question of HDTV standards has repeatedly emphasised the importance of an EU (resolutions of 16 May 1986, 11 April 1989, 20 November framework for both broadcasting and telecommunications 1991 and 11 March 1992). In Directive 92/38/EEC of 11 in order to avoid divergent national re-regulation in these May 1992 concerning satellite broadcasting standards, related communications sectors. the Council included most of the EP amendments
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01_2006_4661_txt_EN.indd 245 30-10-2007 14:55:11 which sought to balance the interests of the various holders of industrial property rights to decoding groups concerned. systems may grant licences to manufacturers of 2. The EP also saw a need for the economic promotion of consumer equipment at equitable, reasonable and non- audiovisual production in the context of the HDTV discriminatory rates. The Member States must take strategy. This strategy must enable the European necessary measures to ensure that operators of programme industry to meet in quantitative and conditional access services ofer to all broadcasters on a qualitative terms the demand from the television fair reasonable and non-discriminatory basis, technical operators introducing the new services and to increase services enabling the broadcasters’ services to be the supply of competitive products from European received by viewers authorised by means of decoders producers (resolution of 22 January 1993 on administered by the service providers. In its resolution encouraging audiovisual production in the context of of 13 June 1995, the EP had reintroduced its the strategy for high-deinition television). Given the compromise amendments which were incorporated new technological developments, the EP took the into the directive. Parliament had insisted that the general view that minimum common standards should consumer should not pay the price of technological be formulated even before the introduction of the irst progress (successive purchases of decoders that are digital television systems. It emphasised a lexible incompatible and rapidly become obsolete). regulatory framework providing operators and On 14 June 1995, the EP adopted a resolution on the consumers with a suiciently stable environment Green Paper ‘Strategy options to strengthen the (resolution of 19 April 1994) on digital video European programme industry in the context of the broadcasting. audiovisual policy of the European Union’. On 16 June 3. The EP’s Committee on Economic and Monetary Afairs 1995, the EP approved the proposal for a Council and Industrial Policy organised a hearing on standards Decision on the development and distribution of for and access to digital television on 19/20 December European audiovisual works (MEDIA II — Development 1994. In Directive 95/47, the Council incorporated the and Distribution — 1996–2000). EP amendments. The compromise text provides that
4.7.8. Information technologies
Legal basis technology sectors, originally worlds apart, have converged The Treaties do not contain any special provisions for substantially in latter years and it is expected that they will Information Technology (IT), although Article 157 provides eventually merge into one technology. a legal basis for an EU industrial policy. However, the EU Priorities for action are: establishment of information may undertake certain actions within the framework of technology infrastructure; improvement of the many sectoral and horizontal policies at international, EU, competitiveness of the IT industry in Europe; better Member State and local levels, such as competition policy consideration for the industry’s needs in research policy; (Articles 81–89), trade policy (Articles 131–134), trans- establishment of the information society and promotion of European networks (TENs) (Articles 154–156), research and industrial cooperation. technological development (Articles 163–173) and approximation of laws (Article 95). Achievements
Objectives A. Internal market Directive 96/19 opened up the telecommunications market Strictly speaking, IT simply means computer hardware and to full competition on 1 January 1998 and included 23 software but it is often used interchangeably with measures spanning the whole of the telecom area. The Information and Communication Technologies (ICT), a term 1999 Communications Review launched a broad which covers both information technology and consultation on the regulatory framework and put forward telecommunications equipment and services. The two the essentials of a thoroughly revised framework for
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electronic communications infrastructure and associated reports and the Commission has opened a number of services. This review led to the adoption in December 2002 infringement procedures against some Member States for of a new regulatory package for the broadened scope of failing to transpose all legislation into national law. A electronic communication services, whilst reducing the related area currently attracting much attention is number of regulatory measures from the previous 23 to six spectrum management — new services generate need for directives and one decision. more spectrum, although some is freed up by the transfer The revised regulatory framework was applied in all to digital television, * 4.7.7. on the audiovisual industry for Member States from 25 July 2003 and encompassed: more on the directive on television without frontiers). — Framework Directive 2002/21/EC on a common B. Information society regulatory framework for electronic communications The Lisbon European Council (March 2000) set the target networks and services; for the EU to become ‘the most competitive and dynamic — Authorisation Directive 2002/20/EC on the authorisation knowledge-based economy in the world by 2010’. of electronic communications networks and services; Stimulating the development of technologies and applications in Europe is seen to be at the heart of the — Access Directive 2002/19/EC on access to, and transition to an information society in order to increase the interconnection of, electronic communications competitiveness of European industry and allow European networks and associated facilities; citizens the possibility of beneiting fully from the — Universal Service Directive 2002/22/EC on universal development of the knowledge-based economy. The service and users’ rights relating to electronic relaunch of the Lisbon strategy in 2005 reiterated the communications networks and services; importance of ICT and the information society: ‘It is essential to build a fully inclusive information society, based — Data Protection Directive (e-Privacy) 2002/58/EC on the on widespread use of information and communications processing of personal data and the protection of technologies (ICTs) in public services, SMEs and households’ privacy in the electronic communications sector; (European Council, March 2005). The activities carried out in — Radio Spectrum Decision 2002/676/EC on a regulatory the ield of the information society are pursuant to the framework for radio spectrum policy in the European Lisbon conclusions and are dominated by the eEurope Community; initiative and, more recently, the i2010 strategic framework. — Commission Directive on Competition 2002/77/EC on The Commission proposed the eEurope action plan 2002 in competition in the markets for electronic November 1999. The European Parliament (EP/Parliament) communication networks and services. adopted a resolution that was sent to the Lisbon European The package provided for a general review of the Council contributing to the irst steps of the eEurope regulatory framework in 2006, but it is not expected to initiative. One of the top priorities of eEurope 2002 was to cause as many substantial changes as the previous review. modernise the rules and regulations governing Internet However, in July 2006, the Commission launched a access and create a single market for all proposal for a separate regulation for roaming charges on telecommunications services. Subsequent action plans public mobile networks (COM(2006) 382). have set out roadmaps of what needs to be done by when. The eEurope 2002 initiative casts its net very wide, The proposed regulation aims to tackle the long-standing successfully putting the Internet at the top of the European problem of high prices and although an initiative in the political agenda. ield has been generally applauded, the proposal is controversial in that it proposes introducing price limits not A second eEurope action plan, eEurope 2005, narrowed the only at wholesale but, unusually, also at retail level. The focus, concentrating on efective access, usage and ready Commission has signalled a need for rapid introduction (it availability of the Internet. It aimed to ensure widespread could enter into force in the second half of 2007). availability and use of broadband networks throughout the EU by 2005, as well as security of networks and information. Apart from the abovementioned package, the area is also The eEurope 2005 plan emphasised the importance of regulated through a number of further decisions, broadband networks. The action plan seeks to accelerate recommendations and guidelines. Most of the legislative the deployment of broadband services over networks framework is in place, and the national regulatory including hardwire, wireless, ibre optics, satellite links and authorities play a central role in its implementation, inter third-generation mobile phones. alia through their market analysis. Implementation of the regulation of the electronic communications ield is In July 2005, the Commission adopted the i2010 initiative regularly monitored by the Commission in its annual which aims to provide a policy framework for the ICT area
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01_2006_4661_txt_EN.indd 247 30-10-2007 14:55:11 building on eEurope initiatives. The i2010 initiative was within the Community. It also seeks to develop a culture of taken on board in the relaunch of the Lisbon strategy and network and information security for the beneit of EU focuses on ‘ICT research and innovation, content industry citizens, consumers, businesses and public sector development, the security of networks and information, as organisations. This should also contribute to the smooth well as convergence and interoperability, in order to functioning of the internal market. ENISA is ultimately establish a seamless information area’. In its i2010 initiative, intended to serve as a centre of expertise where both the Commission outlines three policy priorities: Member States and EU institutions may seek advice on — to create an open and competitive single market for matters related to network and information security. Inter information society and media services within the EU; alia via own-initiatives, the EP continues eforts to maintain initiatives in this ield will inter alia include spectrum a focus on matters of ICT security — see for instance the management, audiovisual media services and digital recommendation on the protection of critical infrastructure rights; in the framework of the ight against terrorism (June 2005). — to increase EU investment in research on information With respect to security, the Commission adopted a and communication technologies (ICT) by 80 %; i2010 communication (COM(2006) 251), in May 2006, on a points to trans-European demonstrator projects to test strategy on Network and Information Security (NIS). Further out promising research results and to better integrate initiatives are under preparation in new areas such as the SMEs in EU research projects; use of Radio Frequency Identiication (RFID) technology. — to promote an inclusive European information society. Information society-related programmes: With a view to closing the digital gap, the Commission — Modinis is a programme (2003–05) adopted as a follow- is considering initiatives on e-government for citizen- up to and inancial support of the eEurope 2005 Action centred services, ICT lagship initiatives (technologies Plan. Modinis is intended to help disseminate good for an ageing society, intelligent vehicles that are practices, compare performances of the Member States smarter, safer and cleaner, and digital libraries); and a and support action to raise awareness in order to further initiative on e-inclusion. enhance the security of networks and information (Decision 2256/2003/EC). In July 2005 the Commission To stimulate Internet uptake, the EU has concentrated on proposed a one-year extension of the programme in providing a favourable environment in which companies order to ensure a smooth transition to the forthcoming and other types of organisation may develop digital skills ICT Policy Support Programme that comes into force in and services. In April 2002, a formal decision (Regulation January 2007. (EC) No 733/2002) was taken to create the EU Top Level Domain to allow European citizens, organisations and — Safer Internet Plus is a four-year programme (2005–08) businesses to have websites and e-mail addresses that end aiming to promote safer use of the Internet and new with ‘.eu’ (dot-eu) — in addition to the current domain online technologies, particularly for children, and to names with country indications or generic terms such as . ight against illegal, harmful content and content org, .net, etc. The independent organisation EURid was unwanted by the end-user (Decision No 854/2005/EC). selected to operate the new registry for .eu (www.eurid.eu), The programme succeeds the Safer Internet Action Plan and the irst pre-registrations under ‘.eu’ were made from 7 which ran from 1999 to 2004. December 2005 and general registration in April 2006. — eContent Plus is a four-year programme (2005–08) Shortly thereafter, the EU institutions transferred all web aiming to make digital content in Europe more and e-mail addresses to the new ‘.eu’. accessible, usable and exploitable (Decision No The more networks and computers become a central part 456/2005/EC). The eContent Plus programme supports of business and daily life, the greater the need for data the development of multilingual content for innovative security. The EU institutions have taken a number of online services across the EU. The programme addresses initiatives over the years regarding secure networks and speciic market areas where development has been information systems. One of the more important initiatives slow: geographic content (as a key constituent of public in recent years is the establishment of an agency. The sector content), educational content, cultural, scientiic European Network and Information Security Agency and scholarly content. The programme succeeds the (ENISA) is a temporary agency of the European Union eContent programme which ran from 2001 to 2004. which was formally established on 14 March 2004 — IDABC stands for Interoperable Delivery of European (following the adoption of Regulation (EC) No 460/2004). eGovernment Services to public Administrations, The agency, in Heraklion (Greece), works to achieve a high Businesses and Citizens. The programme runs from 2005 and efective level of network and information security to 2009 (Decision No 2004/387/EC). It aims to make use
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of opportunities ofered by information and — reinforce European cultural and linguistic identities by communication technologies to encourage and support for the production and distribution of European support the delivery of cross-border public sector digital content; services to citizens and enterprises in Europe; to — assist the development of an open and inclusive improve eiciency and collaboration between European Information Society by stimulating innovative European public administrations and to contribute to approaches to inclusion, quality of life and public making Europe an attractive place to live, work and services. invest. The programme builds on the previous IDA programmes. The World Summit on the Information Society (WSIS) was originally endorsed in a UN General Assembly Resolution in — eTEN is a programme designed to help the deployment 2001 (56/183) and was held in two phases. The irst phase of telecommunication network-based services (e- of WSIS took place in Geneva from 10 to 12 December 2003 services) with a trans-European dimension. It strongly and 175 countries adopted a Declaration of Principles and focuses on public services, particularly in areas where a Plan of Action. The second phase was held in Tunis from Europe has a competitive advantage. This programme is 16 to 18 November 2005, and eforts were made to put the part of the ‘Trans-European Networks’ (TENs) — Plan of Action into motion by setting up working groups to including the ields of transport and energy — ind solutions and reach agreements in the ields of established to remove barriers to the movement of Internet governance and inancing mechanisms. The EP people, goods and services across Europe and foster the participated in the Tunis Summit and is currently working common market. In 1997, the irst decision was adopted with the other EU institutions on the follow-up, inter alia on TEN Telecommunications Guidelines (Decision prior to the irst meeting of a new forum for multi- 1336/97/EC) setting out priorities for the development stakeholder policy dialogue — the Internet Governance of the European Information Infrastructure in ISDN, Forum (IGF), which was proposed in the Tunis Agenda for applications and generic services. The current the Information Society. The irst meeting of the IGF is programme runs from 2003 to 2006 (Decision scheduled for October/November 2006 in Athens. 1376/2002/EC). The EU has consciously made eforts to feed into the WSIS The Competitiveness and Innovation Framework process (e.g. COM/2005/0234 and Council Conclusions Programme (CIP) (COM(2005) 121) will bring together 10285/05). The EP has also adopted a resolution on the speciic Community support programmes into a common second phase in June 2005 (B5/2004/2204) stressing the framework. One of the three speciic programmes in the need to develop entrepreneurial and innovative capacities CIP framework is the ICT Policy Support Programme (the to enable countries to use ICTs to develop services and two others are the Entrepreneurship and Innovation systems that directly address their societal needs. The EP Programme and the Intelligent Energy-Europe Programme). felt that the development of Internet governance was key The ICT Policy Support Programme will build on the aims of to the success of the WSIS, but considered that an the previous e-TEN, Modinis and e-Content programmes international and independent Internet governance system and will support the aims of the integrated strategy i2010 should be maintained. The EP further stressed the — European Information Society 2010. The ICT programme importance of digital literacy programmes and the need to will stimulate the new converging markets for electronic safeguard cultural diversity when planning governance networks, media content and digital technologies. It will arrangements. Parliament encouraged the fostering of test solutions to the bottlenecks that delay wide European innovation in educational systems, lifelong learning deployment of electronic services. It will also support the programmes and e-learning initiatives. modernisation of public sector services to raise productivity and improve services. Actions under the ICT-policy support C. ICT and research programme aim to: In the context of the Research Framework Programmes — underpin regulatory and research actions to stimulate (FPs) information technologies have been given substantial emerging digital economy based on the convergence attention: between network services, media content and new — In the Fifth Framework programme (FP5) a number of electronic devices; speciic programmes concerned industrial technologies — provide a bridge between research investment and (user-friendly information society; competitive and wide adoption, by providing a testing ground for pan- sustainable growth; and promotion of innovation and European electronic services in both the public and encouragement of SME participation). Moreover, FP5 — private sectors; through the Information Society Technologies
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4.7.9. Biotechnology industry
Legal basis Achievements The Treaty does not contain any special provisions for The scientiic and technological advances made in the area biotechnology. Article 157 however provides a legal basis of life sciences and biotechnology continue at a hectic for an EU industrial policy. The EU may undertake certain pace. The Commission proposed a strategy for Europe and actions within the framework of many sectoral and an action plan in its communication ‘Life Sciences and horizontal policies at international, EU, Member State and Biotechnology’ (COM(2002) 27), which draws attention to local levels, such as competition policy (Articles 81–89), the three major issues: mandate of 30 May 1980, which empowers the — life sciences and biotechnology ofer opportunities to Commission to put forward proposals on industrial policy address many global needs relating to health, ageing, (Article 308), trade policy and the completion of the food and the environment, and to sustainable internal market (Article 95). development; The importance of the sector has also been addressed in — broad public support is essential, and ethical and the decision on competitiveness of industry and societal implications and concerns must be addressed; enterprises: Competitiveness and Innovation Framework Programme CIP, 2007–2013, based on the proposal by the — the scientiic and technological revolution is a global Commission, Proposal for a Decision of the European reality which creates new opportunities and challenges Parliament (EP/Parliament) and of the Council establishing for all countries in the world. a Competitiveness and Innovation Framework Programme A. Internal market (2007–2013). 1. Genetically modiied organisms (GMOs), including seeds, GM food and feed Objectives Recent food scares such as BSE and dioxins have reinforced The biotechnology industry is becoming an important the change in public policy focus and resulted in sector for the EU because of its economic, social and strengthening of regulations and safety criteria in the food environmental potential. In this ield it is important that EU and feed sectors. In the White Paper on Food Safety countries should cooperate with one another, since (COM(1999) 719), the Commission drew attention to the challenges and needs in the sector remain very large. issue of securing consumers’ and trading partners’
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conidence in the EU food supply. This was reconirmed in signed by the EU(COM(2000) 182) is appropriately the General Food Law proposal which established the implemented in EU legislation. European Food Authority (COM(2000) 716 inal) and which 2. Industrial biotechnology and bioremediation lays down the general objectives of EU food law and a Europe is a world leader in harnessing GMMs to produce number of principles, including precaution, traceability, pharmaceutical compounds and industrial enzymes. The liability and protection of consumers’ interests. main pharmaceutical uses are production of therapeutic The early regulatory framework for biotechnology was protein products such as insulin and growth hormones, founded on a ‘horizontal’ approach, which took account of while the industrial uses are mainly in the food and the protection of both human health and the environment detergent industries and bioremediation. This is done in across relevant sectors. sealed systems, and the inal product is neither a GMM nor Directive 90/220/EEC governs the deliberate release into directly derived from one. The approval procedure for these the environment of genetically modiied organisms (GMOs) activities is covered by Directive 90/219/EC on contained and the placing on the market of products containing or use of genetically modiied microorganisms. To the extent consisting of GMOs for use as foods, feed, seeds and that GMOs are released into the environment, e.g. for pharmaceuticals. bioremediation purposes, they have to be approved under Directive 2001/18/EC. Directive 90/219/EEC governs work activities involving the contained use of genetically modiied microorganisms 3. Non-food agricultural and silvicultural (GMMs) (extended by the majority of Member States to biotechnology include all use of GMOs under contained conditions in Non-food agricultural GMOs also need approval under national laws). Directive 2001/18/EC. Trees have been developed but not yet planted commercially, with the aim of producing paper As individual sectors have continued to expand, a move more eiciently. Such trees are subject to prior towards a more sector-based approach has developed, authorisation under Directive 1999/105/EC on the particularly in terms of the commercialisation of products. marketing of forest reproductive material. Outside the EU, For example: cotton is already a major GM crop. Cotton does not have — Regulation (EEC) No 2309/93 largely governs any food use in Europe beyond the small (and pharmaceutical and medicinal applications. It laid down economically irrelevant) quantities consumed as cotton procedures for the authorisation and supervision of seed oil. Fibre and wood/paper will probably remain the medicinal products for human and veterinary use and main candidates in this category for some time. There are established the European Medicines Agency (EMEA) in other plants that have dual uses. Conventional rape is London. already used for diesel production, apart from feed and oil. — Regulation (EC) No 258/97 governs GM foods and GM If a food/feed plant is genetically modiied to replace seeds under the various seed directives (66/401/EEC, petroleum products by producing ine chemicals, but not 66/402/EEC, 66/403/EEC, 69/208/EEC, 70/457/EEC and to be used for food/feed, it will need approval under 70/458/EEC on the marketing of seeds). 2001/18/EC. If it were also used for food or feed, further approval under the proposed GM Food and Feed This sector-based legislation has introduced provisions to regulation would also be necessary. A further example is a speciically address risk and other issues although the plant modiied to contain and be consumed as a environmental elements come under Directive 2001/18, pharmaceutical compound, for example a plant vaccine. which replaced 90/220/EEC in 2002. This modiication would have to be approved by EMEA, Directive 2001/18/EC introduces appropriate which would also have to perform an environmental risk implementing measures and guidance; ensures a assessment equivalent to that under Directive 2001/18/EC. harmonised framework for authorising and labelling feed 4. Pharmaceuticals consisting of, containing or produced from GMOs; sets up Biotechnology is a key driver of progress in the a comprehensive labelling regime to allow consumers/ pharmaceuticals sector, whose end-user beneits are easy users to fully exercise their choice; and addresses the issue to identify. Biotechnology makes possible the development of liability with respect to signiicant environmental of new cures; it also permits yields and quality to be damage arising from contained use of genetically improved and enables existing pharmaceutical products to modiied microorganisms (GMM) (within the scope of be manufactured with a lesser impact on the environment. Directive 90/219/EC) and deliberate release into the The pharmaceuticals sector is highly regulated and is environment of GMOs. It also ensures that the Biosafety already covered by substantial EU legislation; new Protocol to the 2000 Convention on Biological Diversity
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01_2006_4661_txt_EN.indd 251 30-10-2007 14:55:12 pharmaceutical products are subject to regulation under sciences should address emerging needs and strengthen Directive 65/65/EEC and its supporting legislation, notably links to other EU policies (health, food, environment, Regulation (EEC) No 2309/93. Any product (whether or not biotechnology, competitiveness, etc.). a biotechnology product) that makes medicinal claims is required to meet stringent standards of quality, safety and D. Ethical implications eicacy; under Regulation (EEC) No 2309/93 all new Life sciences and biotechnology address issues involving products with a major biotechnological component are the life and death of living organisms. They raise subject to centralised assessment by the EMEA. Given the fundamental questions of human existence and life on considerable barriers to market entry of these products, the Earth, the very factors that have shaped the deepest regulatory system should seek to avoid unnecessary religious, ethical and cultural heritage of humanity. The EU diiculties that would impede biotechnology companies’ is a community of law and of shared fundamental values eforts to compete and bring pharmaceutical products to and human rights while respecting diferences in cultural market. It costs an estimated EUR 250 million to develop a and ethical values and public morality. This is also relected new drug. Consequently pharmaceutical companies tend in the EU Charter on Fundamental Rights. Consideration of to concentrate on potential best-sellers that can be sold to ethical issues and respect for cultural and ethical values are millions of people: there is relatively little research into an integral part of EU action. ‘orphan drugs’ (treatments for rare diseases) and drugs to The Commission’s main contribution has been the treat diseases that are common only in low-income establishment of the European Group on Ethics in Science countries. However, changes in legal constraints can create and New Technologies, support for research in bio-ethics incentives for pharmaceutical companies to develop and the introduction of ethical principles and evaluation for ‘orphan drugs’: in 2000 the Commission introduced an EU research support. The European Group on Ethics has Orphan Drug Directive, which, though still in the early contributed actively to clarifying public debate, dialogue stages, is already having a positive impact on the use of with Member States and other interested parties, and biotechnology. giving speciic advice to guide the EU legislative process. Cross-border cooperation on research in ethics has initiated B. Competition policy a true relection on fundamental values and the reasons for Biotechnology focuses on solving speciic problems. The diversity of viewpoints in Europe, leading to better mutual Commission also paid special attention to building up the understanding. competitiveness of EU industries by improving the potential to create SMEs, whose activity is based on research and the spirit of enterprise. These new industries, Role of the European Parliament founded on scientiic knowledge, are a source of industrial In a number of own-initiative reports the EP called for competitiveness, technological innovation for investment greater coordination of national eforts, enhanced EU and job creation. support for industrial RTD activities and a common policy on biotechnology. The EP signiicantly inluenced the Directive 98/44/EC on the legal protection of content and funding of the Fourth Framework Programme biotechnological inventions establishes a sound legal (EUR 13.125 million) consisting of three thematic framework concerning criteria for obtaining a patent in this programmes related to life sciences and biotechnology: ield. In addition, the proposed Community Patent biotechnology, biomedicine and health, agriculture and Regulation will increase the competitiveness of EU isheries. The EP outlined its ideas on innovation, European companies in providing for efective, afordable and legally science and technology policy and its monitoring of the sound protection and counter the present trend of FP4 in a resolution of November 1996. biotechnology companies which prefer to patent in the US. In December 1998 Parliament approved the budget for the C. Research and development policy following speciic programmes in FP5 (EUR 14 960 million) The success of any knowledge-based economy rests upon for 1998–2002: the generation, dissemination and application of new — quality of life and management of living resources: knowledge. EU investment in research and development EUR 2 413 million; lags behind that of the USA. The Commission aims to restore EU leadership in life sciences and biotechnology — competitive and sustainable growth: EUR 2 705 million. research. The Sixth Framework Programme for research The EP approved the budget in June 2002 for the following (2002–06) gives this area irst priority in order to provide a thematic programmes under FP6 (EUR 17 500 million) for solid platform for constructing, with the Member States, a 2002–06: European Research Area. Europe’s research agenda for life
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— life sciences, genomics and biotechnology for health: overcome hunger in the world and that other methods, for EUR 2 255 million; example a better distribution of available food, are currently — food quality and safety EUR 685 million. more important. However, given the ever-increasing world population it might also be necessary to use genetically On 21 November 2002 the EP adopted a non-legislative modiied crops to produce enough food. Should a resolution on biotechnology, addressing the need to developing country wish to use biotechnology, the EU and enhance and broaden public debate and access to Member States ought to provide support so that it can objective information. Consumers must have the strengthen its own capacities. opportunity to address questions to scientists and to receive answers from them. On international cooperation, Parliament stated that biotechnology alone will not help to g Marcello SOSA IUDICISSA 11/2005
4.7.10 Defence industry
Legal basis A. Background issues EU action in this ield must be based on Article 308 which 1. Standardisation provides for cases in which the European Treaties do not A 1999 study on the defence industries in the EU and the make explicit provision for the action needed to attain one USA recommended formulating speciications in a of the EU’s objectives. Article 157 provides a legal basis for common manner in Europe to facilitate common EU industrial policy. However, progress towards applying procurement. As a follow-up, a Commission Conference internal market rules on the defence equipment market ‘European Defence Procurement in the 21st Century’ in have been restrained by article 296 paragraph 1 of the ECT November 2000 investigated options for the reform of that states ‘any Member State may take such measures as it defence standards in European defence procurement. The considers necessary for the protection of the essential Commission began work on a review of benchmarking U.S interests of its security which are connected with the defence procurement practices and its implications for production of or trade in arms, munitions and war material’. European defence industries. This exercise involves comparing US procurement practices against those Objectives applied in the EU, with particular reference to SMEs. The defence industry has been important for the EU 2. Research and development policy because of its technological and economic policy aspects. The EU R & D Framework Programme is aimed solely at civil The competitiveness of the European defence industry is objectives. Some of the technological areas covered (e.g. vital to the credibility of the nascent European Security and materials, Information and Communication Technologies Defence Policy. It is important that the EU Member States — ICT) can contribute to the improvement of the defence cooperate with one another in order to end policies and technological base and the competitiveness of this practices that prevent European defence companies from industry. One should therefore examine the best way to working together more eiciently. relect defence industry needs in the implementation of EU research policy. Achievements 3. Intra-EU transfers and public procurement The EU defence industry is important for the European The EU needs to simplify and harmonise the rules on economy as a whole. It employs around 800 000 people intra-EU transfers of defence products and equipment. A and over recent years has contributed between 2 and 2.5 % second fundamental task is to simplify and harmonise EU of EU GDP. Like all other industrial activities, the defence rules for public procurement. It is important to have the industry is required to deliver increased eiciency to guidelines in order to establish an EU framework in this provide value for money to its customers and, at the same area. time, to protect its shareholders’ interests.
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01_2006_4661_txt_EN.indd 253 30-10-2007 14:55:13 4. Exports identiied seven priority areas of action: standardisation, A common regime for dual-use goods and technologies monitoring of defence-related industries, intra-community export control was adopted by the Council based on transfers, competition, procurement rules, export control of Regulation (EC) No 1334/2000 (amended by (EC) No dual-use goods and research. In pursuit of this action it 2432/2001) and Joint Action 401/2000 under the CFSP concluded by listing the ongoing activities to achieve concerning the control of technical assistance related to progress: certain military end-users, which together form an — provide inancial assistance to for a European integrated system. This regime relects the international Standardisation Handbook to be ready in 2004; arrangements to prevent proliferation of weapons of mass destruction. — monitor defence-related industries; Regarding conventional arms exports, a major step was — launch an impact assessment study in 2003 as the basis, achieved in June 1998 with the adoption of an EU code of if appropriate, for elaborating at the end of 2004 the conduct on arms export. Its aim is to improve transparency, necessary legal instrument to facilitate intra-Community prevent unfair competition and clarify the rules applicable transfer of defence equipment; to common projects. The Council assesses implementation — continue its relection on the application of competition of the code on an annual basis. In June 2000 the Council rules in the defence sector in respect of the provisions adopted the common list of equipment covered by the of Article 296 of the EC Treaty; code of conduct. — initiate a relection on defence procurement at national B. EU defence industry policy and EU levels; 1. Initial developments — raise, in the appropriate Council working groups, the In January 1996, a Commission Communication outlined issue of the Commission’s involvement in export control the challenges facing EU defence-related industries and regimes; put forward suggestions to enable the sector to maintain — launch a preparatory action for advanced research in its short-term competitiveness. It proposed to subject the the security ield; sector as far as possible to EU law on public procurement, intra-EU trade and the monitoring of competition with — pursue work on a possible EU Defence Equipment particular regard to aid. Research and standardisation, both Framework overseen by an agency (or agencies). This civil and military, needed better coordination and import past point has now been overtaken by a new European duties better harmonisation. Distortions of competition Defence Agency. resulting from diferences in import and export control 3. Green paper on defence procurement policies should also be eliminated. This warning did not Furthermore, in September 2004 the Commission trigger action and the need to implement an EU strategy to presented a Green Paper on Defence Procurement keep up with major changes in the EU defence-related (COM/608/2004), with the objective of contributing to ‘the industries was becoming more pressing every day. In gradual creation of a European defence equipment market December 1997, another Commission Communication (EDEM) which is more transparent and open between entitled ‘Implementing European Union Strategy in the Member States’. The Green Paper forms part of the strategy ield of Defence-related Industries’ called for urgent ‘Towards a European Union defence equipment policy’ restructuring in the EU defence industry and for a single adopted by the Commission at the beginning of 2003. The market for defence products. This ground-breaking aim is to achieve more eicient use of resources in the area document encouraged the Council to adopt a common of defence and to raise the competitiveness of the industry position on the framing of a European armaments policy. in Europe, as well as to help bring about improvements in 2. Towards a defence equipment policy military equipment within the context of European security More recently, in an efort to take this agenda a step further and defence policy. The Green Paper puts forward, for the Commission has been deeply involved in examining discussion, that the existing derogation pursuant to Article diferent aspects of the state of play of the defence market 296 of the EC Treaty could be clariied by an Interpretative and defence industrial policy. This work is also supported Communication from the Commission, which could deine, by external experts such as in the July 2002 report on more precisely, contracts covered by the exemption under ‘Strategic Aerospace Review for the 21st century’ (STAR 21) Article 296; it also suggests a directive could be drawn up by the European Advisory Group on Aerospace. In a to coordinate the procedures for awarding contracts falling communication dated 11 March 2003 and entitled ‘Towards within the scope of rules on exemption set out in Article an EU Defence Equipment Policy’, the Commission 296; and inally it notes the arguments by some that a
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voluntary code of conduct could be established in this The product of the group’s work was a report entitled sector overseen by the European Defence Agency. ‘Research for a Secure Europe’. Its key conclusion was that 4. A European Defence Equipment Agency (EDA) security research is an essential pillar of future European security and as such should require substantial appropriate In June 2003 the European Council met at Thessaloniki and resources to the tune of EUR 1 billion (reaching up to committed to create [...] in the course of 2004, an EUR 1.8 billion) per year. Whilst meeting EU security needs intergovernmental agency in the ield of defence it would also help the EU in meeting the Lisbon economic capabilities development, research, acquisition and criteria and Barcelona target of 3 % spending on R & D of all armaments. On 12 July 2004 a Joint Action (2004/551/ Community research spending. It has yet to be seen if such CFSP) was adopted by the Council that established the a large igure will be met under the Financial Perspectives European Defence Agency. It had four main functions: to 2007–13. develop defence capabilities in the ield of crisis management; to promote and enhance European armaments cooperation; to work towards strengthening The Role of the European Parliament the European Defence Industrial and Technological Base In a resolution in April 2002 on European defence (EDTIB), and for the creation of an internationally industries, the European Parliament (EP/Parliament) competitive European Defence Equipment Market (EDEM); reiterated its view that a strong, eicient and viable and to enhance the efectiveness of European Defence European armaments industry and an efective Research and Technology (R&T). procurement policy were vital to the development of ESDP. 5. European Security Research Programme This was repeated in a more recent report on the Green Paper on defence procurement (2005/2030(INI) in response In parallel, the European Commission following on from to the Commission’s Green Paper consultation. The existing work during the 1990s and more recently under its Parliament report also encourages the Commission’s eforts Green Paper on Defence Procurement, has begun to to contribute to the gradual creation of a European accelerate its work under security research. Since the defence equipment market (EDEM) which is more communication dated 11 March 2003 and entitled ‘Towards transparent and open between Member States. The report an EU Defence Equipment Policy’ (2004/213/EC), the plays particular attention to the role of Article 296 and Commission has made progress to establish a security/ argues against its continued use and for eforts to focus on defence research programme under a new Preparatory its removal. It also urges the Commission to work closely Action (OJ L 67/18 (-22), 5/03/04). Between 2004 and 2006, with the EDA on the establishment, in parallel, of a a budget of EUR 65 million has been earmarked for the comprehensive action plan with accompanying measures Preparatory Action, which, the Commission hopes, will lead in related areas, such as security of supply, transfer, exports, to a full European Security Research Programme starting in State aid and of-sets, which are necessary in order to 2007. The Commission’s work in this area was supported by create a level playing-ield for fair intra-European the establishment of an expert group, the so-called ‘Group competition. The report also notes the lack of a ‘two-way’ of Personalities’ (GoP) tasked ‘with the primary mission […] street in transatlantic defence procurement, which needs to propose principles and priorities of a European Security to be addressed. Research Programme in line with the EU’s foreign, security and defence policy objectives and its ambition to construct an area of freedom, security and justice.’ g Gérard QUILLE 05/2006
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4.8.1. Social and employment policy: general principles
Legal basis In 1974, the Council adopted the First Programme of Social — Article 2 of the Treaty on European Union; Action. The measures proposed centred around: employment protection, employee participation, equal — Articles 2, 3, 13, 39–42, 125–130 and 136–148 of the EC treatment for men and women, health and safety at work. Treaty. By the mid-1980s, Member States’ governments focused more on the deregulation of labour markets. A number of Objectives directives on health and safety at work and equal treatment The promotion of employment, improved living and between women and men were adopted, but unanimity working conditions, proper social protection, dialogue voting in the Council paralysed progress in other areas. between management and labour, the development of human resources with a view to lasting high employment B. The Single European Act (1986) and the combating of exclusion. The Single European Act introduced Article 138, which on the basis of avoiding ‘social dumping’ (i.e. companies Achievements moving to areas with lower social standards in order to gain a competitive edge) provided for harmonisation of health A. The Treaty of Rome and safety conditions at work. Acting by qualiied majority The Treaty of Rome contained only a few provisions on the Council adopted directives laying down minimum social and labour market policy. Social policy was requirements. considered as an adjunct to economic policy. Articles 48 to The Single European Act also introduced the role of the 51 covered the free movement of labour and Title III dealt social partners in negotiating agreements and the title on with social policy. It comprised two parts: social provisions economic and social cohesion in the Community ("4.4.1.). in order to promote cooperation (including the principle of equal pay for equal work) were laid down in Articles 136– C. The Social Charter 145 and Articles 146–148 dealt with the European Social Everybody understood that the implementation of the Fund. Article 136 expressed the belief that improved internal market by 1992 would lead to widespread working conditions and an improved standard of living for restructuring of industry and services across the EC. workers would arise from the functioning of the common People’s working lives would be disrupted. There was a market, although law, regulation or administrative action growing consensus that greater account should be taken was also required. Clashes over the interpretation of this of the social aspects. ambiguous paragraph have been numerous. 1. The Community Charter of the Fundamental Social Until 1972, the harmonisation of social policy was mainly Rights of Workers left to the functioning of the common market. Measures After long debates, the Community Charter of the adopted are limited to the setting-up of the European Social Fundamental Social Rights of Workers, or ‘Social Charter’ Fund ("4.8.2.) and to the improving of mobility of labour for short, was adopted at the Strasbourg Summit in through the coordination of social security (Regulation (EEC) December 1989 by the Heads of State and Government of No 1408/71, "4.8.4.). Some steps were also taken to improve 11 Member States — with the UK opting out. Based on the ield of occupational health and safety ("4.8.5.). The the Council of Europe’s Social Charter and the common market brought many structural changes that conventions of the International Labour Organisation afected the employment situation. Increased awareness of (ILO), it lays down a range of social rights that are to be the unevenness of growth together with government guaranteed in the European labour market. It was changes led to a more proactive social policy. adopted as a political declaration of intent, but required
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the Commission to set out a social action programme to E. The Amsterdam Treaty accompany it. 1. Main results 2. The social action programme In Amsterdam the UK signed the Social Chapter and the The social action programme was adopted slowly, agreement was integrated in the Treaty, replacing Articles particularly as regards binding legal acts. It proposed 47 136–145, with a few changes: separate initiatives. The Council adopted Directive 91/533/ — reference was made to the European Social Charter of EEC on the obligation on employers to inform employees Turin and the Community Charter of the Fundamental of the conditions applicable to their employment Rights of Workers; relationship, but the main success has been the adoption — co-decision procedure replaced the cooperation of directives concerning the health and safety of procedure in many ields; employees at work ("4.8.5.). The European Court of Justice supported a broad interpretation of the concept of — action to tackle social exclusion was introduced; occupational health and safety, including also working — community action concerning equal opportunities was time. expanded. D. The Treaty of Maastricht 2. Other relevant changes The promotion of a high level of employment and of social The co-decision procedure also gained importance in protection was added by the European Summit of provisions relating to the European Social Fund (4.8.2.), the Maastricht as one of the tasks of the EC. The Social Fund’s free movement of workers and social security for remit ("4.8.2.) was speciied and an entirely new section Community migrant workers ("4.8.4.). was inserted on education and vocational training ("4.16.). The promotion of employment was added to the list of the A protocol and an agreement on social policy were added European Union’s objectives. In order to attain this to the new Treaty. objective the new Employment Title gives the EU a new During the Maastricht summit, it proved impossible to area of responsibility to complement the activities of the obtain an agreement by all 12 Member States regarding Member States, involving the development of a the changes proposed in the chapter on social policy. The ‘coordinated strategy’ for employment. The main element UK, in particular, did not agree with several changes. of this European Employment Strategy is formed by Rather than abandoning the proposed social chapter, the common guidelines ("4.8.3.). In order to promote other 11 Member States made an agreement amongst cooperation between Member States and with the themselves. This agreement is annexed to the protocol on Commission, an Employment Committee was created. social policy (Protocol No 14), which states that ‘eleven A new Article 13 authorises the Council to take appropriate Member States [...] wish to continue along the path laid action to combat any discrimination based on sex, race, down in the 1989 Social Charter’ and exempts the UK ethnic origin, religion or belief, disability, age or sexual from participation. orientation. Two directives have been adopted, i.e. Racial This meant that two sets of rules were applied in the social Equality Directive ‘2000/43/EC on implementing the area: the EC Treaty covering all Member States and the principle of equal treatment between persons irrespective Agreement on Social Policy. of racial or ethnic origin’ and the Employment Framework The agreement contained three signiicant innovations: Directive ‘2000/78/EC on establishing a general framework for equal treatment in employment and occupation’. — a more ambitious formulation of the objectives of social policy; The year 2007 has been declared as the ‘European Year of Equal Opportunities for All’ to stimulate a major debate on — a major boost for the role of management and labour at the beneits of diversity for European societies. The Community level ("4.8.6.); activities will focus on the discrimination some individuals — extension of qualiied majority voting in the Council in sufer due to their race or ethnic origin, religion or belief, the following areas: improvements in the working age, gender, sexual orientation or disability, all of which are environment to protect employees, working grounds for discrimination that may be addressed at conditions, information and consultation of workers, European level. equal opportunities for men and women on the The key objectives are (i) to make European Union citizens labour market and equal treatment at work, and aware of their right to non-discrimination and equal occupational integration of people excluded from the treatment, (ii) to promote equal opportunities for all — labour market. access to employment, education, in the workplace or in
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01_2006_4661_txt_EN.indd 257 30-10-2007 14:55:13 the healthcare sector, and (iii) to promote the beneits of the indicated period. It will complement the European diversity for the European Union. Social Fund as well as the inancial support provided for social dialogue, free movement of workers and social F. The Treaty of Nice studies. Due to Parliament’s intervention the budget of the A small number of changes have been made by the Treaty programme has been increased from EUR 628.8 million to of Nice: Article 137 describing the Community’s activities EUR 743.25 million. has been rewritten to make it more concise and a Social Protection Committee has been introduced. It will replace existing Community programmes and budget lines in these ields aiming at consolidating various Traditionally, European social policy initiatives have been programmes into one streamlined programme, simplifying contained in a series of Commission action programmes. procedures and increasing visibility, clarity and coherence For the new century, the name has been changed to the of the diferent policy areas covered by the programme. Social Policy Agenda. The agenda forms a part of the integrated European approach towards achieving the Role of the European Parliament economic and social renewal outlined at the Lisbon summit (March 2000): for the European Union to become by 2010 Since the creation of the Community, the EP has been ‘the most competitive and dynamic knowledge-based active in the development of EU employment and social economy capable of sustainable economic growth with policy. The EP’s goal has always been to combat more and better jobs and greater social cohesion’. The Nice unemployment, improve working conditions and living Summit endorsed the Social Policy Agenda up to 2005 and conditions for the poor and socially excluded, the elderly, invited the Commission to present annually a scoreboard children, handicapped people and migrant workers, and outlining the progress made in implementing it. ensure equal opportunities for women and men. Although, according to the Treaty of Rome, the EP’s role G. Partnership for growth and employment was only supervisory, it adopted many resolutions during On the basis of the November 2004 report of the high-level the 1960s, 1970s and 1980s. On the one hand, Parliament group chaired by Mr Wim Kok, the Commission presented supported the Commission’s diferent proposals and, on in February 2005 a new partnership for growth and the other hand, it called for a more active Community employment, relaunching and simplifying the Lisbon policy in the social area to counterpart the increasing strategy, now based on a three-year cycle 2005–08 ("4.8.3.). Community importance in the economic area. It also This approach was initiated by the European Council in strongly supported the concept of a European social March 2005, which recognised that ‘ive years after the dimension. The EP’s opinion was that the decision-making launch of the Lisbon strategy, the results are mixed’. In its procedure in the Treaty of Rome had to be changed resolution of 13 April 2005, the European Parliament (EP/ because unanimity was very diicult to obtain in the Parliament) calls on the Commission to set out a clear Council. roadmap for the three institutions and asks to be consulted on its content. The EP also wishes to see the creation of a The EP was more closely involved in the preparation of the mechanism for joint programming with the European Treaty of Amsterdam than in previous Treaty revisions. Commission and requests that national and European During the Intergovernmental Conference (IGC) in budgets, including the 2007–13 inancial perspective, be an 2003/2004, the EP adopted many resolutions setting out, expression of the goals of the strategy. inter alia, its proposals on social policy. The social provisions in the Amsterdam Treaty relect many of the In the context of the relaunched Lisbon strategy ‘Growth recommendations in these resolutions, such as the and Jobs’, the Community Programme for Employment and inclusion of the Social Agreement in the Treaty and the Social Solidarity, called Progress, will be established to insertion of an employment chapter, and constitute a support inancially the implementation of the objectives of successful outcome of the EP’s work. The EP, however, the European Union in the ields of employment and social regrets that unanimity and simple consultation of the EP afairs, as set out in the Commission Communication on have been maintained for many social matters. the Social Agenda, and thereby contribute to the achievement of the Lisbon strategy goals in those ields, for In 2003, when the Commission presented the third the period 2007–13. scoreboard on implementing the Social Policy Agenda, the EP stated that the structural weaknesses identiied on the Progress will be divided into the following ive sections (i) labour market were largely to blame for lasting poverty and employment, (ii) social inclusion and protection, (iii) social exclusion, which were being aggravated by other working conditions, (iv) anti-discrimination and (v) gender factors such as health problems and disability, family break- equality with an overall amount of EUR 743.25 million for ups, a lack of basic training and housing problems.
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Parliament underlined that social security was vital to In this regard, on 16 and 17 March 2005 the EP organised reduce the risk of poverty. It asked the Commission to the irst parliamentary meeting on the Lisbon strategy. provide new initiatives, inter alia with a view to Members of the EP and members of the national incorporating a social dimension in competition policy, parliaments of the 25 Member States, together with the revising the directives on European Works Councils and on President of Parliament, Mr Josep Borrell Fontells, the Working Time, drafting a directive on social protection for Luxembourg Prime Minister, Mr Jean-Claude Juncker, new forms of employment and adopting an initiative attending as President of the Council, and the President of making it easier to reconcile work and family life. It called the European Commission, José Manuel Barroso, discussed on the Commission and Member States to ensure the how to approach the review. The EP called for greater correct, full and timely implementation of the existing participation of the national parliaments, which had in their directives, in particular those adopted on the basis of hands the tools that could inluence the Lisbon strategy by Article 13 of the Treaty: the Commission must not hesitate modernising the economy, by legislating on education, in pursuing infringement actions against Member States in etc., in other words taking action in the areas in which the this regard. EP had a lesser degree of competence. The EP played an active role in the mid-term review of the Lisbon strategy. In its resolution of 9 March 2005 Parliament g Christa KAMMERHOFER insists on detailed consultation and on the establishment 9/2006 of joint programming with the European Commission. It also calls for ‘the Lisbon strategy to be made a central part of national as well as European debate’.
4.8.2. The European Social Fund
Legal basis The irst reforms Articles 146 to 148 and 158 to 162 of the EC Treaty (ECT). 1971 A review of the system at the end of the transitional period Objectives led to an initial reform (1971 Council Decision) that increased the fund’s resources substantially, replaced the system of Improving employment opportunities for workers in the retroactive funding with new rules providing for applications internal market by facilitating their adaptation to industrial for assistance to be submitted in advance, and introduced a changes and increasing their geographical and link between assistance and Community policies. occupational mobility, in particular through vocational training and retraining. 1983 A second reform (Council Decision 83/516/EEC of 17 Contributing to the strengthening of economic and social October 1983) laid down the guidelines for the fund’s cohesion in the Union. measures, which were to focus on: Achievements — training young people to combat the growing unemployment within this section of the population: A. Background they were to make up at least 75 % of the beneiciaries The early stages of the fund; Set up by the Treaty of Rome, the European Social Fund — the regions most in need. (ESF) is the oldest of the Structural Funds. During the transitional period (until 1970), it reimbursed the Member The essential reforms States half the cost of vocational training and resettlement Reforms following the Single Act allowances for workers afected by economic restructuring. By including in the ECT the objective of economic and In total, it assisted over two million people during this social cohesion within the Community by reducing period. disparities between regions, the Single European Act (1986)
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01_2006_4661_txt_EN.indd 259 30-10-2007 14:55:14 set the scene for the fundamental reform of the entire (b) Structural policy Structural Funds in 1988 (Regulations of 24 June and 19 The ESF forms part of the structural policy framework December 1988), which sought to: which covers several funds. While the ESF covered six of the — double the funds’ resources; seven structural policy objectives in the previous period (1994/99), it covers only three objectives with the new — use the funds in an integrated way through: created objectives 2 and 3: — common principles and objectives, Objective 1: regions whose development is lagging — a single operating framework. behind The ESF was fully integrated into this new mechanism and (where the level of development is less than 75 % of the was assigned some of the common objectives as well as Community average). The ESF provides assistance in these objectives speciic to the ESF (Regulation of 19 December regions together with the three other Structural Funds; 1988). Objective 2: regions undergoing economic and social Reforms following the Treaty of Maastricht (1991) conversion The Treaty enshrined regional policy as one of the major This objective is also covered by all the funds; Community policies with the use of the funds for structural purposes. In particular, it expanded the aims of the ESF to Objective 3: human resources include ‘adaptation to industrial changes and to changes in Speciic to the ESF, this objective involves support for the production systems, in particular through vocational training adaptation of employment, education and training systems and retraining’. It also did away with the detailed provisions and policies in the Member States. It should be on assistance that had previously been included in the ECT implemented with lexibility given the diversity of national and entrusted the Council with this responsibility. practices. As regards this new legal basis, there was a further reform 2. Scope of the ESF intervention in July 1996 with two common regulations governing the (a) Key areas funds (2081/93/EEC and 2082/93/EEC) and speciic As part of its own speciic objective, the ESF covers ive key regulations for each one. They consisted of: areas (Regulation (EC) No 1784/1999). — a further doubling of resources (for the period 1994/99), — Developing active labour market policies to (i) combat with the majority being allocated to the less-favoured unemployment, (ii) prevent long-term unemployment, regions, (iii) facilitate the integration of the long-term — the establishment of new objectives, unemployed and the integration of young people. — for the ESF in particular (Regulation (EC) No 2084/93), — Promoting equal opportunities, with particular concentration of aid on the most obvious needs and emphasis on those exposed to social exclusion. the most efective projects. — Promoting and improving education and training, as The most recent changes part of lifelong learning policy. These were brought about by: — Promoting a skilled and adaptable workforce, — Regulation (EC) No 1260/1999 of 21 June 1999, which innovation and entrepreneurship. lays down the general provisions governing the various — Improving women’s access to the labour market. Structural Funds; (b) Complementary concerns — Regulation (EC) No 1784/1999 of 12 July 1999, which In these areas of intervention, the ESF must take account of determines the role of the ESF within this overall three ‘horizontal’ complementary objectives: framework; — support for local authorities in the area of employment, — Regulation (EC) No 1081/2006 of 5 July 2006 on the ESF, repealing the Regulation (EC) No 1784/1999. — giving a social dimension to the information society, B. The role of the ESF for the period 2000–06 — promoting equal opportunities for men and women. 1. Role in relation to all Community policies The ESF inances the implementation of the Community (a) Employment policy initiative EQUAL, which seeks to combat discrimination and The ESF is the main inancial instrument of the Community inequalities in the labour market and facilitate the social employment policy deined by the European employment and occupational integration of asylum-seekers. In addition, innovative operations and pilot projects concerning labour strategy and the employment guidelines ("4.8.3.).
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markets, employment and vocational training are European employment strategy are reinforced to reach its supported by the ESF. employment objectives. Particular importance is given to (c) Eligible activities the strategy’s three main objectives of full employment, quality and productivity at work, social cohesion and social Three forms of assistance are eligible for ESF support: inclusion. First, assistance for individuals: The ESF will support the Member States’ policies to comply — education and vocational training, rehabilitation, with the guidelines and recommendations adopted within guidance, counselling; the framework of the European employment strategy. — advanced training in the ields of scientiic research and 2. Scope of the ESF intervention technological development. Under the regional competitiveness and employment and Second, assistance for structures and systems in order to convergence objectives assistance from the ESF should increase the efectiveness of the actions to assist focus in particular on four key areas for action set out by individuals, in particular: the European Council: — improvement of the training of teachers, trainers and — increasing adaptability of workers and enterprises; administrative staf; — enhancing access to employment and participation in — improvement of employment services; the labour market; — development of links between the world of work and — reinforcing social inclusion by combating discrimination the education, training and research sectors; and facilitating access to the labour market for disadvantaged people; — development of systems for anticipating changes in employment and in qualiication needs. — promoting partnership for reform in the ields of employment and social inclusion. Third, accompanying measures: In the least prosperous regions and Member States, the — assistance in the provision of services to beneiciaries; fund will focus on supporting structural adjustment, — promoting socio-educational measures; growth and job creation. To this end, under the — awareness-raising. ‘convergence’ objective and in addition to the above mentioned priorities, the ESF will also support (i) eforts to (d) Implementing methods expand and improve investment in human capital, in (i) Decision-making procedures particular by improving education and training systems, Assistance from the ESF is based on the priorities laid down and (ii) action aimed at developing institutional capacity in the national action plans for employment. Its and the eiciency of public administrations at national, management must be simpliied and decentralised, with regional and local level. greater involvement of the regional and local authorities The ESF will place particular emphasis on the promotion of and NGOs. Financial and control procedures will be good governance and partnership. The involvement of the improved. social partners is of particular importance in the (ii) Concentration of assistance programming and implementation of the fund’s priorities and operations. In particular under the ‘convergence’ ESF interventions are concentrated on a limited number of objective, social partners will be encouraged to actively areas or themes and are directed towards the most participate in capacity-building actions and to undertake important needs and the most efective operations. A joint activities in the policy areas in which they play a signiicant proportion of the funds allocated under decisive role. Objectives 2 and 3 must be made available in the form of small grants, with special arrangements for access by NGOs. The new ESF regulation relects more strongly the Union’s commitment to the elimination of inequalities between C. The role of the ESF for the period 2007–13 women and men: speciic actions aimed at women are 1. Framework for intervention combined with a gender mainstreaming approach to The new regulation No 1081/2006 on the ESF for 2007–13, increase women’s participation in the world of work. has been adopted by the EP and the Council on 5 July Finally, the promotion and mainstreaming of innovative 2006. It aims at contributing more efectively to the activities will be fully integrated in the scope of the ESF and employment objectives and targets of the ‘Lisbon strategy included in the national and regional operational for growth and jobs’. Links between the ESF and the programmes. Under both the ‘convergence’ and the
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01_2006_4661_txt_EN.indd 261 30-10-2007 14:55:14 ‘regional competitiveness and employment’ objectives, the therefore always advocated the eicient operation of the ESF will give priority to funding transnational cooperation, fund. It has criticised the complexity of the funds, which including joint actions and the exchange of experience and involve too many objectives and too many Community best practice across the Union, ensuring, where necessary, initiatives together with burdensome management coherence and complementarity with other Community or resulting in complications and delays in payment of transnational programmes. support to beneiciaries. In order to improve the eligibility criteria for projects, Role of the European Parliament Parliament hopes that for the period 2007–13 innovative A. Competence projects will be supported and transnational cooperation will be stepped up, including exchanges of experience and The European Parliament’s (EP/Parliament’s) inluence over best practice across the Union. Parliament believes that the the Structural Funds has increased: ESF should also improve the information made available to — since the Treaty of Maastricht, it has had to give its the public in order to combat discrimination and assent to the general provisions governing the funds; inequalities more successfully. — since the Treaty of Amsterdam, the implementing rules for the ESF have been subject to the co-decision procedure. g Christa KAMMERHOFER 09/2006 B. Role The EP takes the view that the ESF is the Union’s most important instrument for combating unemployment. It has
4.8.3. Employment policy
Legal basis 2. Actions in the 1980s Articles 2, 3, 125–130, 136, 137, 140, 143, 145–148 of the EC In the 1980s and early 1990s, action programmes on Treaty. employment focused on speciic target groups: ERGO (long-term unemployed), LEDA (local employment Objectives development) and ELISE (helping SME). In the same period a number of observatory and documentation systems were Important principles, objectives and activities mentioned in established. The European Commission and the Ministries the Treaty include promotion throughout the Community for Employment of the Member States decided in 1982 to of a high level of employment by developing a coordinated set up MISEP (Mutual Information System on Employment strategy, particularly with regard to the creation of a skilled, Policies in Europe). Sysdem (Community System of trained and adaptable workforce and labour markets Documentation on Employment) was established in 1989. responsive to economic change. At the end of 1989 the Council called upon the Commission and the Member States to set up a European Achievements Employment Observatory (EEO). The third EEO network, Resnet (Research Network), was established in 1997. A. The beginning 1. The Coal and Steel Community Treaty 3. EURES Workers have beneited from Readaptation Aid in the To encourage free movement and help workers to ind a European Coal and Steel Community (ECSC) since the job in another Member State, the former SEDOC system 1950s. Aid was granted to workers in the coal and steel was improved in 1992 and renamed EURES (European sectors whose jobs were threatened by industrial Employment Service). restructuring. The European Social Fund ("4.8.2.), created in In 2002, the Commission reformed the system by reinforcing the early 1960s, was the principal weapon in combating and consolidating EURES as a fundamental instrument in unemployment. linking the employment services in the EEA (European
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Economic Area) in a network. The reform improves EURES’ training, (ii) increase employment intensive growth, (iii) institutional framework by decentralising decisions to the reduce non-wage labour costs, (iv) increase active labour members of the network and by adapting its structure to the market policies, and (v) ight youth and long-term enlargement of the EU to include 25 members. unemployment. Member States should ensure that these Administrative coordination is the responsibility of the recommendations are translated into multi-annual European Coordination Oice, run by the European programmes monitored by the Commission and the Commission’s DG for Employment, Social Afairs and Equal Council. The European Council was informed annually on Opportunities. the result of the Commission’s and the Council’s review. The Essen Process contributed to raising awareness of high The reform is based on two instruments: unemployment in the Member States at EU level. — The EURES Charter, which governs operation of the 3. The contribution of the Amsterdam Treaty (1997) network and provides for the creation of a uniform In 1997, the Intergovernmental Conference in Amsterdam system for information exchange. Common models for sought a compromise between Member States in favour of content and form are used to facilitate the exchanges. more EU action in the ield of employment and those The members of the network have incorporated their reluctant to transfer decision-making competence to the databases on living conditions in the various countries EU. The compromise was based on an innovation in in the EURES database. The databases of job vacancies governance that had been part of the multilateral are gradually being pooled too. surveillance process for entering Economic and Monetary — The members and partners present three-year activity Union (EMU). plans based on the guidelines laid down by the The result was the new Employment Title in the Coordination Oice. Amsterdam Treaty which formally set up the European The members and partners of the network are: Employment Strategy and the permanent, constitutionally- — national and local employment services; based Employment Committee with advisory status to promote coordination of the Member States’ employment — employment services responsible for cross-border and labour market policies. regions; The Treaty has not changed the basic principle of the — other specialised employment services notiied to the Member States having the sole competence for Commission; employment policy but the Member States have — trade unions and employers’ organisations. committed themselves to co-ordinate their employment policies at Community level. The Treaty entrusts the Council In this context, the European Commission has designated and the Commission with a much stronger role and new 2006 as the European Year of Workers’ Mobility ("3.2.2.). The tasks and tools. The EP has been involved more closely in year aims to raise awareness and increase understanding of the decision-making process, too. The responsibilities of the beneits of working in a new country and/or social partners and their possibilities to contribute are also occupation, as well as highlighting how the EU can help enhanced through the inclusion of the social protocol in workers move. the Treaty. B. Towards a more comprehensive policy C. European employment strategy 1. The White Paper on Growth, Competitiveness and The extraordinary Luxembourg Job Summit in November Employment, 1993 1997 anticipated the entry into force of the Amsterdam In the early years of the 1990s, the fear spread that the high Treaty in 1998 and launched the European employment level of unemployment in most countries could become strategy (EES), also called the Luxembourg Process. permanent. To this end, the European Commission released the White Paper on Growth, Competitiveness and It created the framework for the annual cycle for Employment under president Jacques Delors in 1993. It set coordinating and monitoring national employment of a debate about European economic and employment policies. The coordination of national employment policies strategy and brought the issue of employment to the top at EU level is based on the commitment of the Member of the European agenda for the irst time. States to establish a set of common objectives and targets, and the strategy was built around the following 2. The Essen process (1994) components: In order ight unemployment, the European Council of Essen in December 1994 agreed on ive key objectives to — Employment Guidelines: based on a proposal from the be pursued by Member States, i.e. (i) to invest in vocational Commission, the Council shall agree every year on a
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01_2006_4661_txt_EN.indd 263 30-10-2007 14:55:14 series of guidelines setting out common priorities for another target has been added to raise the employment Member States’ employment policies; rate for older workers (55 to 64 years) to 50 % by 2010. — National Action Plans: each Member State shall draw up To relect these conclusions, ive new ‘horizontal objectives’ an annual National Action Plan describing how these were introduced in the 2001 guidelines: realising full guidelines are implemented into practice at national employment, stimulating lifelong learning, promoting the level; role of social partners, ensuring a proper policy mix — Joint Employment Report: the Commission and the between the four pillars, and developing common Council shall jointly examine the National Action Plans indicators in order to assess progress. The improvement of and present a joint employment report to the European the quality in work was added in 2002. Council. Based on this analysis, the Commission shall D. Review of the European employment strategy present a proposal for the employment guidelines for 1. The impact assessment the following year; Five years after its launch, the European employment — Recommendations: the Council may decide, by strategy (EES) was reviewed in 2002. Based on national qualiied majority, to issue country-speciic policy impact evaluations carried out by independent recommendations upon a proposal by the Commission. experts, the Commission made an assessment leading to The EES commits the Member States and the Community the Communication ‘Taking stock of ive years of the to achieve a high level of employment as one of the key European Employment Strategy’ (COM(2002) 416). One of objectives of the European Union and, for the irst time, has the main achievements of the EES is that it has succeeded been set on the same footing as the macroeconomic in identifying employment as an overarching objective and objectives of growth and stability. Employment has in fostering convergence of national employment policies become an issue of ‘common concern’. Member States and towards the European employment guidelines. Another the Community are committed to work towards step forward is the support for a new pro-active labour developing a coordinated strategy for employment at market policy, replacing the passive and curative measures Community level by using the newly introduced open of the past with active and preventive measures. method of coordination. The open method of coordination However, the report of the Employment Taskforce (‘Jobs, is based on ive key principles, i.e. subsidiarity, convergence, Jobs, Jobs — Creating more Employment in Europe’, management by objectives, country surveillance and an November 2003, also called the ‘Kok report’) identiied integrated approach. economic and social problems with a low overall rate of The irst set of 19 guidelines were adopted in 1998 and economic growth and a high unemployment rate in the organised around four pillars: eve of enlargement and recommended to focus on implementation of the strategy. — Employability: policies to make unemployment systems more active and increase the skills of workers; 2. Relaunch of the European employment strategy Based on the report by Wim Kok, the Commission came — Entrepreneurship and job creation: policies to forward with the Communication ‘Working together for encourage new, smaller and more innovative growth and jobs — A new start for the Lisbon Strategy’ businesses and make tax systems more employment- (COM(2005) 24) stating that the progress of the EU towards friendly; the targets set by the Lisbon strategy showed insuicient — Adaptability: policies to increase the lexibility of progress and missed the intermediate employment rate workers and work organisation arrangements; targets set for 2005. It suggests that the Lisbon strategy be — Equal opportunities: policies to promote gender relaunched, simpliied and streamlined, with the focus on equality. growth and jobs, mobilising support for change. In 2000, the Lisbon European Council agreed on the new The proposal has led to a complete revision of the EES strategic goal of making the EU ‘the most competitive and based on a multi-annual time framework (2005–08) and a dynamic knowledge-based economy in the world’, capable better streamlined presentation of the strategy in form of of sustaining economic growth with more and better jobs the implementation package. The new process is as follows: and greater social cohesion. It embraced full employment — In January, the Commission presents the conclusions of as an overarching objective of employment and social its review of the National Reform Programmes in the policy and set concrete targets to be achieved in 2010, i.e. form of the Implementation Package, together with its increase the overall employment rate to 70 % and the Spring Report to the Spring European Council. The women’s employment rate to more than 60 %. In 2001, Spring Report presents the Commission’s strategic
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policy priorities for the EU. The Implementation Package — 22: to expand and improve investment in human includes (i) the Implementation Report of the Broad capital; Economic Policy Guidelines, (ii) the draft Joint — 23: to adapt education and training systems in response Employment Report and (iii) the implementation report to new competence requirements. on the Internal Market Strategy with a detailed assessment of implementation in these policy areas; The eight employment guidelines are essential to reach the three priorities for action in the ield of employment (i) — In April, following the general political orientations attract and retain more people in employment, increase given by the Spring European Council, the Commission labour supply and modernise social protection systems, (ii) presents its proposals for further action in these policy improve adaptability of workers and enterprises, (iii) areas in a single document, the ‘Guidelines Package’, increase investment in human capital through better composed of the Broad Economic Policy Guidelines, the education and skills. Employment Guidelines and the Employment Recommendations. Subsequent to further consideration by the European Parliament (EP), the Role of the European Parliament relevant Council formations adopt the Broad Economic A. General Policy Guidelines, the Employment Guidelines and The EP considers employment as the most important Recommendations and the June European Council priority for the EU and has always been of the opinion that draws up conclusions; the EU and its Member States have to coordinate their — In October, the new cycle starts when Member States eforts and that working towards full employment should present their National Reform Programmes to the be made an explicit goal of the Member States and the EU. European Commission. Since April 1983, when the EP held a special part-session on combating unemployment, it has adopted many This new process of streamlining the existing and the resolutions on the issue. Employment Guidelines is in practice since July 2005, with the approval of the Integrated Guidelines for Growth and B. Detailed actions Jobs by the European Council. In 1994 a special Temporary Committee on Employment In addition, Member States have appointed a ‘Mr or Ms was created. The EP adopted the Committee’s inal report Lisbon’ at government level to coordinate the diferent in July 1995. The EP found that the EU and the Member elements of the strategy nationally and to present the States should adopt an integrated strategy dedicated to Lisbon programme in order to strengthen the job creation, encompassing all policies which have an implementation at national level impact on employment. 3. The Employment Guidelines 2005–08 During the 1996 Intergovernmental Conference, the EP was On 12 April 2005, the Commission proposed the Integrated very active in ensuring that employment policy got a much Guidelines for the period 2005–08 with a total of 23 higher priority in the Amsterdam Treaty than was the case guidelines, of which 8 are devoted speciically to with the previous Treaties and called for a speciic employment, i.e. guidelines 16 to 23 in order to boost the employment chapter in the Treaty. The Treaty of Lisbon strategy: Amsterdam takes up many of the EP’s proposals on employment policy. — 16: to implement employment policies aimed at achieving full employment, improving quality and The EP set out its proposals for the Luxembourg European productivity at work, and strengthening social and Council on Employment in October 1997. The conclusions territorial cohesion; of the Council, and the following Employment Guidelines, relect many of Parliament’s recommendations. — 17: to promote a lifecycle approach to work; In its resolution of June 2003 on the Employment — 18: to ensure inclusive labour markets for job-seekers Guidelines, the EP asked for the inclusion of the following and disadvantaged people; elements: — 19: to improve matching of labour market needs; — better coordination between Broad Economic Policy — 20: to promote lexibility combined with employment Guidelines, Employment Guidelines, Social Inclusion security and reduce labour market segmentation; Strategy and Sustainability Strategy; — 21: to ensure employment-friendly wage and other — better involvement of all relevant actors (social partners, labour cost developments; among others);
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01_2006_4661_txt_EN.indd 265 30-10-2007 14:55:15 — quantitative targets to be developed to measure supports ‘the economic and social principles that deine progress on quality at work; the Integrated Guidelines’ but calls on ‘the Member States — integrated approach on equal opportunities and to adopt ambitious national reform programmes that are gender equality in the labour market to be developed; totally coherent with the Guidelines’. The EP also insisted in involving more national parliaments in the Lisbon strategy — call on Member States for a signiicant reduction in unemployment gaps regarding disabled and non- The EP stresses in its Report on a European Social Model for disabled people; the future (A6-0238/2006) that the open method of coordination should enhance the role of parliaments and — call for a 50 % reduction in the number of working poor calls on the Commission to democratise the open method in all Member States by 2010; of coordination to ensure that not only the EP but also — call on Member States to give priority to policies for national parliaments play a full role in setting and achieving innovation and job creation for low performing areas, of targets by Member States’ governments. Further it with regional employment disparities to be reduced by expresses its disappointment that many Member States 10 % annually until 2010; have not achieved the Lisbon strategy objectives and calls on Member States to fully implement the revised strategy — National Action Plans to be discussed and adopted by and to set concrete targets for employment. the relevant parliamentary assembly. The new Employment Guidelines, an integral part of the g Christa KAMMERHOFER mid-term review of the Lisbon strategy, have also been 9/2006 backed by the EP, which, in its resolution of 22 June 2005,
4.8.4. Social security cover in other Member States of the Union
Legal basis A. The four main principles of Regulation (EEC) 1408/71 Articles 42, 63 and 308 of the EC Treaty. 1. Equal treatment Workers and self-employed persons from other Member Objectives States must have the same rights as the host State’s own nationals. For the principle of equal treatment to apply, The basic principle enshrined in the Treaty of Rome is the three conditions must be met: equivalence of facts, removal of obstacles to freedom of movement for persons aggregation of periods and retention of rights. In other between the Member States ("3.2.2). To achieve this, it is words, a Member State may not conine social security necessary to adopt social security measures which prevent beneits to its own nationals. The right to equal treatment EU citizens working and residing in a Member State other applies unconditionally to any worker or self-employed than their own from losing some or all of their social person from another Member State having resided in the security rights. host State for a certain period of time. Achievements 2. Aggregation This principle applies where, for example, national In 1958, the Council issued two regulations on social legislation requires a worker to have been insured or security for migrant workers which were subsequently employed for a certain period of time before he is entitled superseded by Regulation (EEC) No 1408/71, to certain beneits, e.g. sickness, invalidity, old age, death or supplemented by implementing Regulation (EEC) No unemployment beneits. The aggregation principle means 574/72. Nationals from Iceland, Liechtenstein and Norway that the competent Member State must take account of are also covered by way of the European Economic Area periods of insurance and employment completed under (EEA) Agreement and Switzerland by the EU-Swiss another Member State’s legislation in deciding whether a Agreement. worker satisies the requirements regarding the duration of
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the period of insurance or employment. As regards the C. Beneits covered right to membership of unemployment or sickness funds, Article 4(1) of Regulation (EEC) No 1408/71 lists the social for example, application of the aggregation principle security beneits covered by the regulation and the means that the person can be transferred directly from a provisions which seek to prevent migrant workers and self- fund in one Member State to a fund in another Member employed persons from sufering losses because they work State. or have worked in one or more Member States: 3. Prevention of overlapping of beneits — sickness and maternity/paternity beneits; This principle is intended to prevent anyone obtaining — invalidity beneits intended for the maintenance or undue advantages from the right to freedom of movement. improvement of earning capacity; Contributing to social security systems in two or more Member States during the same period of insurance does — old-age beneits; not confer the right to several beneits of the same kind. — survivors’ beneits; 4. Exportability — beneits in respect of accidents at work and This principle means that social security beneits can be occupational diseases; paid throughout the Union and prohibits Member States — unemployment beneits; from reserving the payment of beneits to people resident in the country, but it does not apply to all social security — family beneits. beneits. Special rules apply to the unemployed, for Pre-retirement beneit schemes do not fall within the scope example. Diferent rights apply to exporting cash beneits of the regulation. According to Regulation (EEC) No (e.g. sickness beneit or pensions) and beneits in kind (e.g. 1408/71, insured persons resident in another Member State medical assistance). Cash beneits are usually paid in for a short period may avail themselves of emergency accordance with the rules of the country in which the medical services there. Where non-emergency services are person entitled to them lives or is staying. Generally concerned, the relevant insurance fund must irst give its speaking, beneits in kind are governed by the rules of the approval. Two judgments by the Court of Justice in the country in which the fund member is staying. If the Decker (C-120/95) and Kohll (C-158/96) cases suggest that competent State is not the State of residence, the all insured persons might in the future be able to obtain competent State must reimburse the State of residence or medical treatment or medical products anywhere in the stay for its expenditure on beneits in kind. Union, provided that this did not result in an excessive rise in costs. B. Persons covered Originally, Regulation (EEC) No 1408/71 only covered D. Future outlook workers but, with efect from 1 July 1982, its scope was 1. Prospects for the reform of Regulation (EEC) extended to cover the self-employed too (see Regulation No 1408/71 (EEC) No 1390/81). The regulation also covers members of Since 1971 Regulation (EEC) No 1408/71 has been workers’ and self-employed persons’ families and their amended on numerous occasions in order to take into dependants, as well as stateless persons and refugees (see account developments at Community level, changes in Article 2(1)). legislation at national level and the case law of the Court of By Council Regulation (EC) No 1606/98 of 29 June 1998 the Justice. As the regulation was a complex and rather Council extended the scope of Regulation (EEC) No impractical piece of legislation the Commission presented 1408/71 in order to set civil servants on an equal footing a proposal for a fundamental reform of the whole with the rest of the population as regards the general legislative system at the end of 1998 (COM(98) 0779). statutory pension rights provided in the Member States. 2. Towards better coordination of social security Regulation (EC) No 307/1999 of 8 February 1999 extended systems the scope of the regulation to include all insured persons, Based on the Commission’s proposal, the EP and the Council particularly students and persons not in gainful approved Regulation (EC) No 883/2004 of 29 April 2004 in employment. order to replace the Regulation (EEC) No 1408/71. The aim of Council Regulation (EC) No 895/2003 of 14 May 2003 the new regulation is to simplify the existing Community extended the scope of the regulation to cover nationals of rules for the coordination of Member States’ social security third countries provided they are legally resident on Union systems by strengthening cooperation between social territory. security institutions and improving the methods of data exchange between social security institutions. The obligation
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01_2006_4661_txt_EN.indd 267 30-10-2007 14:55:15 on administrations to cooperate with one another in social extended to statutory pre-retirement schemes, which security matters should be improved and the movement means that the beneiciaries of such schemes will be from one Member State to another, whether for professional guaranteed payment of their beneits, will be covered for or private purposes, without any loss of social security medical care and will be entitled to draw family beneits entitlements will be facilitated. even when they are resident in another Member State; For example, in the area of old-age pensions, it is necessary — amendment of certain provisions relating to to specify what steps the insured person must take in order unemployment: retention for a certain period (three to apply for payment of his/her pension, to which months which can be extended up to a maximum of six institution the claim must be submitted (where the insured months) of the right to receive unemployment beneit person has worked in several Member States), how the by persons moving to another Member State in order to institutions are to exchange information to ensure that the seek employment; insured person’s full career is taken into account, and how — strengthening of the general principle of equal each institution is to calculate the pension to be paid for treatment; the relevant period. — strengthening of the principle of exportability of However, the new rules on coordination in Regulation (EC) beneits: insured persons temporarily staying in another No 883/2004 cannot be applied until the corresponding Member State will be entitled to healthcare which may implementing regulation has been adopted to replace prove medically necessary during their stay; Implementing Regulation (EEC) No 574/72. — introduction of the principle of good administration: The proposal to revise the implementing regulation has obligation on the institutions of Member States to been tabled by the Commission in January 2006 cooperate with one another and provide mutual (COM(2006) 16) and is in the process of irst reading in the assistance for the beneit of citizens. European Parliament (EP) and the Council. 3. European Health Insurance Card The proposal completes the modernisation work done by European citizens who travel within the European Economic Regulation (EC) No 883/2004 and is intended to clarify the Area (EEA) may henceforth use the European Health rights and obligations of the various stakeholders as it Insurance Card. This card facilitates access to medical care on deines the necessary measures for the persons covered to a visit to another EEA country for personal or professional travel, stay or reside in another Member State without reasons. Previously, individuals had to carry a paper form losing their social security entitlements. The proposal with them: E110 for international hauliers, E111 for tourists, contains general principles to allow the coordination to E119 for jobseekers looking for work in another Member function. These principles include single applicable State or E128 for employees on temporary assignments in legislation, assimilation of the facts, and equal treatment. another Member State and students. Member States are required to comply with these but have exclusive competence in deining, organising and inancing Initially the card will replace form E111 (for tourists) from their national social security systems June 2004, and the other forms subsequently. The card will be issued by the institution of the competent State or State The following elements will be covered by Regulation (EC) of residence. In order to facilitate acceptance of cases and No 883/2004 and its implementing regulation: refund of the costs of care provided, the three main entities — improvement of the rights of insured persons by the involved — the insured persons, the providers of care and extension of coverage in respect of persons and scope the institutions — must recognise the single model and in respect of social security areas covered: the the uniform speciications of the card. population covered by the regulation will include all Distribution of the card is scaled over the following periods: nationals of Member States who are covered by the social security legislation of a Member State. Hence not — from summer 2004: Germany, Belgium, Denmark, Spain, only employees, self-employed, civil servants, students Estonia, Finland, France, Greece, Ireland, Luxembourg, and pensioners but also persons who are not part of the Norway, Czech Republic, Slovenia, Sweden; active population will be protected by the coordination — by summer 2005: Austria, Italy, Latvia, Liechtenstein, rules. That simpliies and clariies the rules determining Lithuania, Portugal; the legislation applicable in cross-border situations; — from January 2006: Cyprus, United Kingdom, Hungary, — expansion of the ields of social security subject to the Iceland, Malta, Netherlands, coordination system in order to include pre-retirement legislation: The material coverage of the regulation is — Poland, Slovakia and Switzerland.
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Role of the European Parliament unemployment beneit in another Member State and to The EP has always shown a keen interest in the problems widen the scope of Regulation (EEC) No 1408/71 so as to encountered by migrant workers, frontier workers, the self- include all insured persons. Some of these demands will be employed and nationals of third countries working in other met by the inal adoption of the radically revised version of Member States, and has adopted various resolutions with a Regulation (EEC) No 1408/71. The EP is seeking to improve view to improving their lot. The EP has on several occasions the situation of frontier workers, especially as regards their deplored the persistence of obstacles to full freedom of social security and taxation (Resolution of 17 January 2001). movement and has called on the Council to adopt pending proposals, such as those intended to bring early retirement g Christa KAMMERHOFER pensions within the scope of Regulation (EEC) No 1408/71, 09/2006 to extend the right of unemployed persons to receive
4.8.5. Health and safety at work
Legal basis — Directive 82/130/EEC, as amended by Directives 88/35/ Articles 71, 94, 95, 136, 137 and 308 of the EC Treaty. EEC, 91/269/EEC, 94/44/EC and 98/65/EC, on electrical equipment for use in potentially explosive atmospheres in mines susceptible to iredamp; Objectives — Directive 82/605/EEC, replaced by Directive 98/24/EC, On the basis of Article 137, the EU encourages on protection against the risks associated with metallic improvements in the working environment in order to lead; protect workers’ health and safety by harmonising working conditions. To this end, minimum requirements are laid — Directive 83/477/EEC, as amended by Directives 91/382 down at EU level, allowing Member States to introduce a EEC, 98/24/EC and 2003/18/EC, on asbestos; higher level of protection at national level if they so wish. — Directive 86/188/EEC, as amended by Directive 98/24/ Such directives shall avoid imposing administrative, EC, on noise; inancial and legal constraints in a way which would hold back the creation and development of small and medium- — Directive 88/364/EEC, replaced by Directive 98/24/EC, sized undertakings. on protection against certain agents; — Directive 91/322/EEC, as amended by Directives 96/94/ Achievements EC and 2000/39/EC, on indicative limit values. A. Up to 1987 B. From 1987 to 1989 1. First steps 1. The innovations by the Single European Act (1986) Since the establishment of the EEC, steps towards a global Since the introduction of Article 138 into the Treaty by the approach to health and safety at work have been taken, Single European Act (SEA) of 1986 measures in the ield of such as setting up a Standing Committee on Safety in Coal health and safety at work can be taken by qualiied majority Mines, and an Advisory Committee on Safety, Hygiene and vote in the Council. The introduction of Article 138 had four Health Protection at Work to assist the Commission in main objectives: drawing up and implementing measures relating to the — greater efort to improve workers’ health and safety at working environment. work; 2. The 1980 Framework Directive and its follow-up — harmonising conditions in the working environment; In 1980, the Council adopted Framework Directive — preventing ‘social dumping’ as the internal market was 80/1107/EEC on protection against the risks of exposure to completed; chemical, physical and biological agents at work. The directive led to a number of ‘daughter directives’ in the — preventing companies from moving to areas with a lower following years: level of protection simply to gain a competitive edge.
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01_2006_4661_txt_EN.indd 269 30-10-2007 14:55:16 Article 95, introduced by the SEA, was also instrumental in — Directive 99/92/EC on minimum requirements for lifting all barriers to trade. improving the safety and health protection of workers 2. Results potentially at risk from explosive atmosphere; Directives adopted under Article 138 lay down minimum — Directive 2000/54/EC on the protection of workers from requirements concerning health and safety at work. risks related to exposure to biological agents at work; Directives under Article 95 are intended to ensure the — Directive 2004/37/EC on the protection of workers from placing on the market of safe products including machines the risks related to exposure to carcinogens or and personal protective equipment for professional use. mutagens at work; Member States are not permitted to set higher — Four directives on the minimum health and safety requirements for their products than those laid down by requirements regarding the exposure of workers to the the directives. risks arising from physical agents: The Community Charter of Fundamental Social Rights for — Directive 2002/44/EC (vibration) Workers of 1989, though not legally binding, airms the — Directive 2003/10/EC (noise) right to health and safety at the workplace. — Directive 2004/40/EC on electromagnetic ields C. After 1989 — Directive 2006/25/EC on artiicial optical radiation. 1. Framework Directive 89/391/EEC 2. Framework Directives having an impact on other The framework directive aims to improve the protection of legislative acts: workers from accidents at work and occupational diseases — Directive 91/383/EEC on temporary workers: the by providing preventive measures, information, Commission tabled in 2002 a new proposal to consultation, balanced participation and training of guarantee the same conditions of health and safety as workers and their representatives. The directive covers all for workers in the user undertaking. Since 2003, the workers in the EU, employed by private companies and proposal has been blocked in the Council; public institutions/organisations. Self-employed and domestic servants are not covered by the framework — Directive 92/29/EEC on medical treatment on board directive. The framework directive is the basis for the vessels; following ‘daughter directives’: — Directive 93/104/EC, as amended by Directives 98/662/ — Directive 89/654/EEC on requirements for working places; EEC, 2000/34/EC and 2003/88/EC, on certain aspects of the organisation of working time: in 2004, the — Directive 89/655/EEC, as amended by Directive Commission proposed to amend the existing Working 2001/45/EC, on the use of work equipment; Time Directive 2003/88/EC with a view to improving the — Directive 89/656/EEC on the use of personal protective working environment to protect workers’ health and equipment; safety as concerns in particular the weekly working — Directive 90/270/EEC on work with display screen time. equipment; — Council Regulation (EC) No 2062/94/EEC established — Directive 90/269/EEC on manual handling; the European Agency for Health and Safety at Work in Bilbao (Spain) which provides EU bodies, the Member — Directive 90/394/EEC on exposure to carcinogens; States and those involved in this area with technical, — Directive 92/57/EEC on temporary or mobile scientiic and economic information on safety and construction sites; health at work; — Directive 92/58/EEC on provision of safety and health — Directive 96/29/EC on protection against the dangers signs at work; arising from ionising radiation; — Directive 92/85/EEC on pregnant workers; — Directive 99/95/EC on working time provisions in — Directive 92/91/EEC on mineral-extracting industries maritime transport; (drilling); — Directive 2000/34/EC amending Directive 93/104/EC — Directive 92/104/EEC on mineral-extracting industries; concerning certain aspects of the organisation of working time to cover sectors and activities excluded — Directive 93/103/EC on ishing vessels; from that directive (road, air, sea and rail transport, — Directive 98/24/EC, as amended by Directive 2000/39/ inland waterways, sea ishing, other work at sea and the EC, on chemical agents; activities of doctors in training);
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— Directive 94/33/EC on the protection of young people E. Community strategy on health and safety at work at work. (2002–06) 3. Contribution of the Treaty of Amsterdam (1997) In March 2002, the Commission adopted a new strategy to The Treaty of Amsterdam strengthened the status of facilitate application of existing legislation on health and employment issues by introducing the Employment Title safety at work and to promote new initiatives over the period and the Social Agreement. Minimum directives in the ield concerned. It is based on a survey of the situation before of protection of health and safety at work and concerning 2002, which prompted the Commission to emphasise three working conditions are adopted by qualiied majority and key steps for ensuring that workers have a safe and healthy in co-decision with the European Parliament (EP/ working environment through reinforcing a culture of risk Parliament). The scope of the notion of ‘working conditions’ prevention, applying existing laws more efectively and in Article 138 was a highly controversial issue and diverging pursuing a global approach to well-being at work. approaches have been taken by Parliament, the Council, There are three main strands in the Community strategy: Commission and by the Member States. In its judgement of — It adopts a global approach to well-being in the 12 November 1996 (Case No C-84/94) the European Court workplace, taking account of changes in the world of of Justice ruled that Article 138 should not be interpreted work and the emergence of new risks, especially of a restrictively. psycho-social nature. It is geared to enhancing the 4. The Charter of Fundamental Rights (December 2000) quality of work, and one of the essential quality factors Article 31 of the Charter of Fundamental Rights states that is a safe and healthy working environment; ‘every worker has the right to working conditions which — It is based on consolidating a culture of risk prevention, respect his or her health, safety and dignity’. However, the on combining a variety of political instruments — charter is not yet legally binding. legislation, social dialogue, progressive measures and 5. The European Week for Safety and Health at Work the identiication of best practices, corporate social This is an annual information campaign backed by all responsibility and economic incentives — and on Member States, the European Commission and Parliament, building partnerships between all the players on the trade unions and employers’ federations. It provides an safety and health scene; opportunity to focus on the importance of safety and — It points up the fact that an ambitious social policy is a health at work in a certain area of safety and health at work. factor in the competitiveness equation and that, For instance, in 2006 the European Week for Safety and conversely, having a ‘non-policy’ engenders costs which Health at Work raises awareness for young workers on ‘Save weigh heavily on economies and societies. Start’. The campaign of 2005 focused at the issue of noise at The EP was involved in the consultation procedure and work with the slogan ‘Stop that noise’ and in 2004 safety in requested a detailed action plan with concrete timetable the construction sector was addressed. for implementation of the strategy. The strategy should in particular pay special attention to women at work and the D. The European Social Agenda Framework Directive 89/391/EWG should be extended in The European Social Policy Agenda approved by the its scope of application (report A5-310/2002). European Council in Nice in December 2000 initiated a more strategic approach on health and safety at work at EU The Commission has announced in the work programme level with the objectives: for 2006 the putting forward of a new strategy for the period 2007–12 focusing on prevention: less work-related — to consolidate, adapt and, where appropriate, simplify accidents and diseases push up productivity, contain costs, existing standards; strengthen quality in work and hence valorise Europe’s — to respond to new risks such as work-related stress, by human capital. The new strategy should focus on new and initiatives on standards and exchanges of good practice; emerging risks and safeguarding minimum levels of — to promote the application of legislation in small and protection in workplace situations and to workers not medium-size enterprises (SMEs) — taking into account adequately covered. Speciic attention should also be given the special constraints to which they are exposed — by to the quality of prevention services, health and safety means of a speciic programme; training, as well as other tools to ensure a better application of health and safety standards. The Commission will — to develop from 2001 onwards, exchanges of good monitor the transposition and implementation of practice and collaboration between labour inspection legislation. In order to ensure efective implementation, all institutions in order to satisfy the common essential the players concerned must have the capacity to take on requirements more efectively. their responsibilities.
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01_2006_4661_txt_EN.indd 271 30-10-2007 14:55:16 Role of the European Parliament allocate the resources necessary to relect the high priority The EP has frequently emphasised the need for optimal to be accorded to occupational health and safety and protection of workers’ health and safety. In several urgently calls for a detailed action plan with inancial and resolutions, it has called for all aspects directly or indirectly timing commitments against each major proposal. afecting the physical or mental well-being of workers to be The EP calls for an extension of the scope of the Framework covered. Parliament has had a signiicant inluence on Directive 89/391/EEC to excluded groups of workers such directives improving the working environment. as the military, the self-employed, domestic workers and The EP supports the Commission’s activities to increase the home workers. It also calls for a directive laying down provision of information to SMEs. Work must be adapted to minimum standards for the recognition of occupational people’s abilities and needs and not vice versa. Working diseases. environments should be developed to take greater account In its report on promoting health and safety at workplace of the special needs of disabled and older workers. (2004/2205 INI) Parliament pleads for better Parliament urges the Commission to investigate the new implementation of existing directives. problem areas which are not covered by current legislation: these include stress, burn-out, violence and harassment in g Christa KAMMERHOFER the workplace. The Parliament calls on the Commission to 09/2006
4.8.6. Social dialogue: information, consultation and participation of workers
I. Dialogue between the social 2. Val Duchesse social dialogue partners Initiated in 1985, the Val Duchesse social dialogue process aimed to involve the social partners, represented by the European Trade Union Confederation (ETUC), the Union of Legal basis Industries of the European Community (UNICE) and the Articles 136–140 of the EC Treaty. European Centre of Public Enterprises (CEEP), in the internal market process. The Council is not represented. The Objectives meetings of the Social Dialogue Committee have resulted in a number of joint statements on employment, education To promote dialogue between the social partners in order and training and other issues. to facilitate contractual relations or the conclusion of agreements at Community level. 3. Single European Act Article 139, which was incorporated into the Treaty by the Achievements Single European Act in 1986, extended the scope of Article 138 and created a legal basis in the Treaty for the development A. General development of the social dialogue of a ‘social dialogue’. The promotion of the social dialogue at European level became one of the Commission’s oicial tasks and collective At European level, the trend has been towards greater agreements at Community level were made possible. inluence of the social partners on social and labour market 4. Agreement on social policy policy. In October 1991, UNICE, ETUC and CEEP adopted a joint 1. Treaty of Rome agreement which called for mandatory consultation of the Under Article 138, one of the Commission’s tasks was to social partners on the preparation of legislation in the area promote close cooperation between Member States with of social afairs and a possibility for the social partners to regard to the right of association and collective bargaining negotiate framework agreements. This agreement was between employers and workers. embodied in the Agreement on Social Policy (ASP) which
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was adopted by all Member States, with the exception of Since the 1960s a number of advisory committees have the United Kingdom, and annexed to the Treaty of existed whose role is to advise the Commission on the Maastricht on European Union. formulation of speciic policies. In general, these At national level, the social partners are given the committees, such as the Committee on Social Security for opportunity of implementing directives by way of Migrant Workers, the Committee on the European Social agreement. At Community level, speciic rules are laid Fund and the Committee on Equal Opportunities for down in the agreement. The Commission must consult the Women and Men, are made up of representatives of social partners before taking any action in the social policy national employers’ and trade union organisations as well ield. The negotiation process may take up to nine months, as governments. and the social partners have the following possibilities: Some of the earliest social dialogue structures were — they may conclude an agreement and jointly request established in the main sectors. The sectoral social dialogue the Commission to propose that the Council adopt a at European level has made considerable progress since its decision on implementation; or structures were reformed on the basis of Commission proposals in 1998. The sectoral social dialogue is organised — having concluded an agreement between themselves, either on the basis of joint committees appointed by the they may prefer to implement it in accordance with the Commission in sectors usually corresponding to one of the procedures and practices speciic to the social partners common policies or on that of informal working groups and to the Member States; or organised in response to a joint request of the social — they may be unable to reach an agreement. partners. A series of joint texts have been negotiated by the committees on questions including equal opportunities, In the last case, the Commission will resume work on the modernisation of work, training, enlargement and the proposal in question and will forward the result of its social responsibility of enterprises. deliberations to the Council. From 1970 to 2003, the key tripartite body at European The irst practical results of this process were the adoption level concerning discussion on employment was the of framework agreements on parental leave, on part-time Standing Committee on Employment. The ongoing work and on ixed-term work, and two framework consultation between the Council of Ministers, the agreements on the organisation of working time for Commission and the social partners aimed to facilitate seafarers and in air transport. The agreement on telework cooperation on employment policies. The Standing concluded in May 2002 will be implemented for the irst Committee on Employment was reformed in 1999 and time in accordance with the procedures and practices integrated into the coordinated employment strategy. The speciic to the social partners and the Member States. The Standing Committee included 20 representatives of the negotiations on temporary work ended in failure in May social partners, divided between the trade unions and 2001. Nevertheless, in March 2002 the Commission employers’ organisations. adopted a proposal for a directive on temporary work based on the consensus which emerged among the social On the basis of a joint contribution of the social partners to partners despite the failure of their negotiations but the the Laeken social afairs summit in December 2001, the negotiation is blocked in Council since 2003. The irst Council launched a Tripartite Social Summit for Growth and European multi-sector agreement was signed in May 2006 Employment in March 2003. The Tripartite Social Summit to protect workers exposed to crystalline silica dust which replaces the Standing Committee on Employment and will can lead to silicosis, a potentially fatal lung condition. facilitate ongoing consultation between the Council, the Commission and the social partners on economic, social 5. Treaty of Amsterdam and employment questions. The Tripartite Social Summit The incorporation of the Agreement on Social Policy into will meet at least once a year. the Treaty on European Union, following the Treaty of Amsterdam, means that the EU Treaty provides a single In the autumn of 1995, the European Centre for Industrial coherent structure for the social and employment policies Relations (CERI) was inaugurated. This was the result of an of all the Member States. initiative taken by the social partners with the aid of the Commission (COM(95) 0445). The aim of the centre is to B. Bodies at Community level promote an understanding of the European dimension in It was considered important from the start of European industrial relations by way of training for leaders and cooperation to involve various economic and social groups representatives of employers’ and trade union in drawing up Community legislation. The Economic and organisations. Social Committee ("1.3.11) bears witness to this.
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01_2006_4661_txt_EN.indd 273 30-10-2007 14:55:16 C. Future outlook area, however, have often encountered resistance in the Following the changes introduced by the Treaty of Council and a great many proposals have still not been Amsterdam the consultation process has become even adopted. It should nevertheless be remembered that more important, since it covers all proposals falling under Community legal acts in this ield could only be adopted Article 137 and presented by all the Member States. by a unanimous vote before the changes introduced by the Treaties of Maastricht and Amsterdam. The Treaty of Role of the European Parliament Amsterdam strengthened the EP’s inluence. The procedure is now co-decision with a qualiied majority in the Council. The European Parliament (EP/Parliament) has always supported the development of the social dialogue and has A. Present legislation made a practical contribution by extending frequent Most of the directives adopted by the Council deal with the invitations to the social partners at EU level to present their right of workers to be informed and consulted on a views before the Committee on Employment and Social number of important issues concerning the soundness of Afairs delivers a report on any proposal which afects the company or their interests. However, these directives them. Parliament considers it vital to promote and ensure do not contain any provision conferring on them the right the broadest possible participation by organisations to participate in decision-making: representing the social partners, particularly at SME level. — Directive 75/129 of 17 February 1975 on collective In its communication of 26 June 2002, the Commission redundancies, as amended by Directive 98/59 of 20 July speciied its approach to the social dialogue which it views 1998. Under this directive, employers must enter into as both a key to better governance in an enlarged Union negotiations with workers in the event of mass and a driving force of economic and social reform. The redundancy; communication refers to the report of the High Level — Directive 77/187 of 14 February 1977 on the Group on Industrial Relations and Change (February 2002) safeguarding of workers’ rights in conjunction with the and the joint contribution of the social partners presented transfer of undertakings, as amended by Directive at the Laeken summit (December 2001). 98/50, under which workers must be informed of the In its communication on partnership for change in an reasons for the transfer and the consequences; enlarged Europe (COM(2004) 0557), the Commission sets — Directive 78/855 of 9 October 1978 on mergers of out to promote the results of the European social dialogue, limited companies, pursuant to which workers in seeking to improve its impact and encourage further companies which merge are protected to the same developments. EU enlargement represents a major extent as laid down in the directive on the transfer of challenge to the social dialogue which, by involving the undertakings; social partners, will help to manage economic restructuring in the new Member States. — Directive 94/45 of 22 September 1994 on the introduction of European Works Councils. The adoption II. Information, consultation of this directive was an innovation in that, unlike and participation of workers previous directives in this area, it does not address speciic situations. It contains general rules to ensure that workers in large multinational companies and Legal basis merging undertakings are informed and consulted. It is Articles 44, 94, 95 and 137 of the EC Treaty. also the irst directive adopted under the Agreement on Social Policy. Workers have also been given certain Objectives rights to information and consultation in regard to the working environment; To support the Member States’ action relating to the information and consultation of workers. — Directive 2002/14 of 11 March 2002 establishing a general framework for informing and consulting employees in the EU; Achievements — The Statute for a European public limited-liability Training, consultation and participation of workers have company (SE). The regulation on the Statute for a been a key theme in European debate since the irst social European company (2157/2001/EC) was accompanied action programme was adopted by the Council in 1974. by a directive supplementing the Statute for a European The Social Charter stresses the desirability of promoting company with regard to the involvement of employees employee participation. The Commission’s proposals in this (2001/86/EC) ("3.4.2);
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— In the same way the Statute for a European Cooperative believes that workers should be involved in company Society (SCE) (Regulation (EC) No 1435/2003) was decision-making concerning the introduction of new supplemented by Directive 2003/72 with regard to the technology, changes in the organisation of work, involvement of employees ("3.4.2). production and economic planning. It hopes that the rules on worker involvement in the European Company (SE) can B. Future Outlook also be applied to the ‘European Association’ and the It has not always been possible to get a decision on other ‘European Mutual Society’. proposals. The proposals for Council regulations on a ‘European association’ and a ‘European mutual society’, B. More speciically together with the associated proposals for Council In a resolution of 5 June 2003 on the Commission directives containing supplementary provisions on the Communication on a ‘Framework for the promotion of involvement of workers (COM(93) 0252), have been on the employee inancial participation’ (COM/2002/0364), the EP Council table since the Parliament’s irst reading on 15 reairmed its support for the participation of employees in February 1993. proits and enterprise results. Its resolution on the Commission Report (COM(2000) 0188) Role of the European Parliament on the application of the directive on the establishment of A. General a European works council called for the speedy revision of the 1994 directive. Parliament has adopted several resolutions calling for workers to have the right to be involved in company The EP has also demanded the imposition of sanctions in decision-making. The EP’s position is that workers should the event of non-compliance with the directive on the part not only be entitled to be informed and consulted but that of representatives of the social partners. The EP has backed they should also have the right to participate in decision- the establishment of works councils on a global scale. making. The right to information, consultation and participation in decision-making should apply in both g Christa KAMMERHOFER national and transnational companies and the right should 09/2006 apply to all companies irrespective of legal status. The EP
4.8.7 Equality for men and women
Legal basis However, the irst directives on equality for men and Article 2, Article 3(2) and Articles 13, 94, 137 and 141 of the women were not adopted on this basis but on the basis of EC Treaty (ECT). Article 308 (ex Article 235, supplementary powers), Article 94 (ex Article 100, the approximation of laws) and Article Articles I-2, I-3(2)(3), II-81, II-83, II-93, III-116, III-118, III-124, III- 137 (ex Article 118, workers’ health and safety). On these 210j, III-214 in the Treaty establishing a Constitution for bases a series of directives have been adopted: Europe (not yet in force). — approximation of laws in the Member States relating to the application of the principle of equal pay for men Objectives and women: Directive 75/117/EEC of 10 February 1975; Ensure equal opportunities and treatment for men and — implementation of the principle of equal treatment for women through legislation, mainstreaming and positive men and women as regards access to employment, actions. vocational training and promotion and working conditions: Directive 76/207/EEC of 9 February 1976; Achievements — progressive implementation of the principle of equal A. The irst directives on equality treatment for men and women in matters of social Article 141 (ex Article 119) of the ECT enshrines the principle security: Directive 79/7/EEC of 19 December 1978; that men and women should receive equal pay for equal work.
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01_2006_4661_txt_EN.indd 275 30-10-2007 14:55:17 — implementation of the principle of equal treatment for C. Recent developments men and women in occupational social security The Treaty of Amsterdam made the principle of equality for schemes: Directive 86/378/EEC of 24 July 1986, men and women an objective and a fundamental amended by Directive 96/97/EEC of 20 December 1996; Community principle (Article 2). Article 3(2) also gives the — application of the principle of equal treatment between Community the task of integrating equality for men and men and women engaged in an activity including women into all its activities (also known as ‘gender agriculture, in a self-employed capacity, and on the mainstreaming’). To this end, a high level group on gender protection of self-employed women during pregnancy mainstreaming was established in 2001. and motherhood: Directive 86/613/EEC of 11 December The Treaty of Amsterdam also expanded the legal basis for 1986; promoting equality for men and women and introduced — introduction of measures to improve the safety and new elements of major importance. The new Article 13 health at work of pregnant workers and workers who makes provision for combating all forms of discrimination have recently given birth or are breastfeeding: Directive and Articles 137 and 141 allow the EU to act not only in the 92/85/EEC of 19 October 1992. area of equal pay but also in the wider area of equal opportunities and treatment in matters of employment B. Progress in case-law of the European Court and occupation. Within this framework, Article 141 of Justice (ECJ) authorises positive discrimination in favour of women. The ECJ has played an important role in this ield, by The European Union’s most recent actions in the ield of developing case-law promoting equality for men and equality for men and women have been: women. The most notable judgments have been: 1. The inancial framework — Defrenne II judgment of 8 April 1976 (Case 43/75): the (a) Fifth Community Action Programme on Equal Opportunities Court recognised the direct efect of the principle of (2001–05) (Decision 2001/51/EC of 20 December 2000). equal pay for men and women and ruled that that principle not only applied to the action of public The action programme is the instrument for authorities but also extended to all agreements which implementing the Community’s framework strategy on are intended to regulate paid labour collectively; gender equality (2001–05). It provides for the coordination and funding of transnational projects to — Bilka judgment of 13 May 1986 (Case 170/84): the Court promote equal opportunities. This programme has a felt that a measure excluding part-time employees from budget of EUR 50 million for the period 2001–05. A an occupational pension scheme constituted ‘indirect priority theme for action is chosen each year: in 2001 it discrimination’ and was therefore contrary to Article 119 was equal pay for women and men; in 2002, the balance if it afected a far greater number of women than men, between work and family life; in 2003, women in decision- unless it could be shown that the exclusion was based making; and in 2004, promoting the change in gender on objectively justiied factors unrelated to any roles and overcoming sexist stereotypes. discrimination on grounds of sex; The programme has been extended to the end of 2006 and — Barber judgment of 17 May 1990 (Case 262/88): the will become an integral part of the new programme Court decided that all forms of occupational pension Progress 2007–13 ("4.8.1.). constituted pay for the purposes of Article 119 and the principle of equal treatment therefore applied to them. (b) Community action programme to promote organisations The Court ruled that men should be able to exercise active in the ield of equality between men and women their pension rights or survivor’s pension rights at the (Decision No 848/2004/EC of 29 April 2004). same age as their female colleagues; This programme enables inancial support to be given to the European Women’s Lobby and other organisations — Marschall judgment of 11 November 1997 (Case C- active in promoting gender equality. 409/95): the Court declared that a national rule which, in a case where there were fewer women than men in a (c) The Community Initiative EQUAL 2000–06 sector, required that priority be given to the promotion As part of the Community strategy to combat of female candidates (‘positive discrimination’) was not discrimination, the Commission has developed a precluded by Community legislation, provided that that Community initiative to promote ways of combating advantage were not automatic and that male applicants discrimination in connection with the labour market. The were guaranteed consideration and not excluded a gender equality objectives are reconciling family and priori from applying. professional life and reducing the gender pay gap.
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2. Women in the labour market The proposed regulation is in irst reading process in the (a) European framework agreements Council. Parliament delivered its opinion in February 2006 Consulting the social partners — the ETUC (European Trade requesting that the institute should be independent, Union Confederation), UNICE (the Union of Industries in the provide analysis on gender equality data and delivery European Community) and the CEEP (European Centre of expertise, contribute to raise awareness of gender equality Public Enterprises) — led to the signing of two framework issues and be consulted in appointing the management agreements on gender equality: board of the institute by the Council. — on parental leave (Directive 96/34/EEC of 3 June 1996); (d) Roadmap The Roadmap for equality between women and men — on part-time work (Directive 97/81/EEC of 15 December (COM(2006) 92) builds on the experience of the Framework 1997). Strategy for equality between women and men for the (b) Legislation period 2001–05 and outlines six priority areas for EU action Modiication of the ‘burden of proof’ in cases of sex on gender equality for the period 2006–10: equal economic discrimination (Directive 97/80/EEC of 15 December 1997). independence for women and men; reconciliation of Under the directive, it is up to defendants taken to court for private and professional life; equal representation in direct or indirect discrimination to prove that they have not decision-making; eradication of all forms of gender-based infringed the principle of equal treatment violence; elimination of gender stereotypes; promotion of Directive 2002/73/EC of 23 September 2002 amending gender equality in external and development policies. The Directive 76/207/EEC of 9 February 1976 on the roadmap represents the Commission’s commitment in the implementation of the principle of equal treatment for ield equal opportunities between women and men. men and women as regards access to employment, (e) Gender Pact 2006 vocational training and promotion, and working conditions. The European Pact for Gender Equality, initiated by the This directive provides a Community deinition of direct Swedish, French, Spanish, Finnish, Czech and Danish and indirect discrimination, harassment and sexual governments was adopted by the Spring European Council harassment. It also encourages employers to take in 2006. The main purpose is to recall and enhance preventive measures to combat sexual harassment, women’s participation in the labour market, fostering reinforces the sanctions for discrimination and provides for measures to improve work-life balance for women and the setting up within the Member States of bodies men, and promoting gender equality. The pact should responsible for promoting equal treatment between build on already existing objectives, targets and women and men. instruments within the Lisbon process and reinforce the The Directive 2006/54/EC on the implementation of the implementation of National Reform Programmes ("4.8.3.) to principle of equal opportunities and equal treatment of raise the employment rate of women. men and women in matters of employment and 3. Violence against women and children occupation (recast) merges the Directive 75/117/EEC on (a) Daphne II Community action programme (2004–08) equal pay, Directive 76/207/EEC as amended by Directive This programme (Decision 803/2004/EC of 21 April 2004) 2002/73, Directive 86/378/EEC as amended by Directive aims to prevent and combat violence against children, 96/97/EC, and Directive 97/80/EC on the burden of proof in young people and women and to protect victims of such order to contribute to legal certainty and clarity in the violence. It follows on from the Daphne programme (2000– implementation of the principle of equal treatment. 03) and has a budget of EUR 50 million for the whole (c) European Institute for Gender Equality period. The Commission tabled a proposal to establish a European 4. Gender equality in EU external policy Institute for Gender Equality (2005/0017 COD) with the (a) Promoting gender equality in development cooperation overall objective to contribute to and strengthen the Regulation (EC) No 806/2004 of 21 April 2004 provides for promotion of gender equality, including gender gender mainstreaming in EU cooperation and mainstreaming in all Community and national policies. It development policy as a whole and the adoption of will also ight against discrimination based on sex and raise speciic measures to improve the situation of women. awareness of gender equality by providing technical assistance to the Community institutions. To mention a few The Treaty establishing a Constitution for Europe goes activities: the institute will collect, analyse and disseminate further than the Treaty of Amsterdam in that it includes the data and methodological tools. A European Network on principle of equality between women and men among the Gender Equality will be established. Union’s values (Article I-2) whilst keeping the articles on
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01_2006_4661_txt_EN.indd 277 30-10-2007 14:55:17 gender equality already in the Treaties. In an annex to the The EP has had an inluence in other speciic areas, too. draft treaty, the IGC also adopted a declaration in which the — Parliament resolutions greatly assisted the EU position Member States undertake to combat domestic violence at the World Conference on Women in Beijing in (Declaration 13). September 1995, at which the Council, Commission and Parliament were unanimous in their agreement on the Role of the European Parliament action platform. The EP also had a major inluence on The EP has played a signiicant part in supporting the equal the follow-up to the Beijing Action Platform (resolution opportunities policy, particularly since it established its of 18 May 2000). Committee on Women’s Rights and Gender Equality in July — the EP contributed to the inclusion of the principles of 1984. equal treatment and equal opportunities in the Parliament’s action has been facilitated by extending the European Union’s Charter of Fundamental Rights application of the co-decision procedure in the following (resolutions of 17 May 1995 and 13 March 1996). areas: — through the votes of its representatives from the — measures to promote equality between men and Committee on Women’s Rights and Gender Equality, the women with regard to labour market opportunities and EP, has reinforced dialogue and cooperation between treatment at work (Article 137 of the ECT as amended the national parliaments on equal opportunities within by the Treaty of Amsterdam); the Network of Parliamentary Committees for Equal Opportunities for Women and Men in the European — measures aimed at applying the principle of equal Union (NCEO) since it was set up in 1997. opportunities and equal treatment of men and women in matters of employment and occupation (Article — pointing out that violence profoundly afects women’s 141(3) of the ECT as amended by the Treaty of lives and prevents them from attaining true equality of Amsterdam). Parliament thus played a signiicant role in opportunity, Parliament adopted a resolution on the the adoption of Directive 2002/73/EC of 23 September need for a European ‘zero tolerance’ campaign on 2002 on the implementation of the principle of equal violence against women, which urged the Commission treatment for men and women as regards access to and Council to declare 1999 ‘European Year of action to employment, vocational training and promotion, and combat violence against women’ (resolution of 16 working conditions; September 1997). Following this resolution, a Community action programme to combat violence — Community incentive measures to support actions against women and children (Daphne) was adopted. taken by the Member States to combat discrimination (Article 13(2) of the ECT as amended by the Treaty of — strengthening the principle of gender mainstreaming in Nice), in particular the Community action programme European and national policies. to promote organisations active in the ield of equality The Parliament’s commitment to gender equality was between men and women (Decision No 848/2004/EC conirmed in 2002 when MEPs adopted a resolution on 4 of 29 April 2004). September calling for the Daphne programme to be In addition, Parliament contributes not only to the overall continued after 2003. Through Parliament’s pressure the policy development on equality between women and budget of the programme was increased from men (for example by participating in deining and EUR 41 million to EUR 50 million. implementing the Community Framework Strategy and Finally, the EP provides impetus through its own-initiative the action programme on gender equality), but also to reports, which allow it to draw the attention of other the development of Community policy in more speciic institutions to speciic problems. areas, such as the ight against traicking in women (see the resolution of 19 May 2000) or the participation of women in the decision-making process (see resolution of g Christa KAMMERHOFER Markus WARASIN 18 January 2001). 09/2006
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4.8.8. Disabled persons, the elderly and the excluded
Legal basis all appropriate EU policies, such as social policy, education Although competence in these matters lies essentially with and training, research, transport, telecommunications and the Member States, action at the EU level is possible on the public health. While responsibility in this ield lies with the basis of several provisions of the EC Treaty (ECT): Member States, the communication emphasised that the European Community would make a signiicant A. In general contribution to the promotion of cooperation between Articles 13, 39, 42, 125–130, 136–145, 150 and 308 of the ECT Member States and of eforts to exchange and develop and Declaration No 22 annexed to the Amsterdam Treaty. best practice. Article 13 of the ECT, relating to the general principle of non- In 1996, a high-level group on disability was set up to discrimination, includes discrimination based on disability monitor the policies and priorities of governments, to pool and age among the forms of discrimination which the information and experience and to advise the Commission. Council may take appropriate action to combat. In 1997, the representative bodies of management and B. In particular labour in the EU (the ‘social partners’) undertook to collect examples of good practice and adopted, as one result of Articles 136 and 137 of the ECT, added by the Treaty of this work, a declaration on the employment of people with Amsterdam in 1999, list the combating of exclusion and disabilities on 19 May 1999. the integration of persons excluded from the labour market among the ields in which the Community is to support On the basis of Article 13 of the ECT, the Council adopted and complement the activities of the Member States. Directive 2000/78/EC of 27 November 2000 establishing a general framework for equal treatment in employment and Article 308 ofers a general legal basis for action necessary occupation to prohibit discrimination of people with to attain one of the objectives of the Community in cases disabilities and others on the labour market and in the where the Treaty has not provided the requisite powers. workplace and in vocational training. Objectives The resolution on equal employment opportunities for people with disabilities adopted by the Council on To promote equal rights for people with disabilities and 17 June 1999 calls on Member States to develop, evaluate older people. and review support programmes for the integration of To combat social exclusion. people with disabilities in various ways. The resolution prepared the Decision 2000/750/EC establishing the Achievements Community action programme to combat discrimination for the period from 2001 to 2006. The action programme will be A. People with disabilities integrated into the programme Progress 2007–13 ("4.8.1.). A society open and accessible to all is the goal of the By virtue of its Decision 2001/903/EC of 3 December 2001, European Union Disability Strategy. Eurostat estimates that the Council declared 2003 to be the European Year of about 15 % of the active population sufer from a long- People with Disabilities. In the course of that European Year, term disability or medical condition. In the 25 countries in the Council adopted several resolutions: which it conducted its survey, it found that almost 45 million persons of working age, i.e. 15 to 64, had a long- — OJ (2003) C 39, p. 3: resolution on eAccessibility — term disability or medical condition. improving the access of people with disabilities to the knowledge-based society; 1. Community disability strategy In pursuance of the United Nations Resolution of 1993 — OJ (2003) C 134, p. 6: resolution on equal opportunities entitled the ‘Standard Rules for the Equalisation of for pupils and students with disabilities in education Opportunities for Persons with Disabilities’, the Commission and training; adopted a communication in July 1996 [COM(96) 406]. The — OJ (2003) C 175, p. 1: resolution on promoting the Community disability strategy set forth in that employment and social integration of people with communication was based on equal rights and non- disabilities. discrimination and on mainstreaming disability issues into
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01_2006_4661_txt_EN.indd 279 30-10-2007 14:55:18 A European Year of Equal Opportunities for All 2007 has 1984, the Community has conducted a number of studies been proclaimed ("4.8.1). and seminars focusing on the contribution of the elderly In October 2003, a communication from the Commission to economic and social life. The irst action programme for [COM(2003) 650] served as the basis for the establishment the elderly began back in 1991. The 1990s were marked of a European action plan to promote equal opportunities by important developments in Community cooperation for people with disabilities, designed to foster their on matters relating to ageing. In 1999, the European inclusion in an enlarged EU economy and in society as a Commission presented a communication on strategic whole and comprising three basic operational objectives: responses to ageing entitled Towards a Europe for all Ages — Promoting Prosperity and Intergenerational Solidarity — achieving full application of Directive 2000/78/EC as part of its contribution to the United Nations’ establishing a general framework for equal treatment in International Year of Older Persons. Since then, the employment and occupation; Member States have undertaken to study questions of — reinforcing mainstreaming of disability issues in relevant ageing in the context of their quest for sound public Community policies; and inances, employment, social protection and sustainable development while continuing to mainstream the issue in — improving accessibility for all. their national policies. People with disabilities and employment (b) Strategic approach People with disabilities are hard hit by unemployment. One The response to ageing developed by the EU is set in the of the key issues of Community initiatives is to broaden context of an overarching strategy which consists in their job prospects and to change attitudes towards people formulating mutually reinforcing policies and covers the with disabilities in the area of employment. Disability economic, social and employment implications of ageing. aspects are included in the National Reform Programmes The EU approach is designed to mobilise the full potential ("4.8.3.) and in the National Strategies for social protection of people of all ages. The basic principle is that the search and social inclusion (see C. Social inclusion). for efective responses to the problem of an ageing In accordance with the EU employment strategy, launched population must go beyond a narrow focus on the interests in 1998, the employment guidelines contain commitments of today’s oldest generations. to promote the employability of people with disabilities on To this end, new active policies and active ageing the basis of the open method of coordination ("4.8.3.). strategies have to be adopted to (i) encourage people to In the framework of the European Social Fund for the engage in lifelong learning, (ii) support for active ageing, period from 2000 to 2006, the EQUAL initiative promoted including appropriate working conditions, improved the adoption of new approaches to discrimination in the occupational health status and adequate incentives to labour market ("4.8.2.). work longer ("4.8.3., Employment Guideline No 18); and In addition, the Council’s Resolution of 15 July 2003 calls on (iii) enterprises will have to cope with an ageing workforce the Member States and the Commission, within the and fewer young recruits ("4.8.3., Employment Guideline framework of their respective powers, to take new practical No 21). measures to promote the employment and social 2. Priority tasks integration of people with disabilities. Two communications from the Commission, the irst B. The elderly entitled Towards a Europe for all Ages —- Promoting Prosperity and Intergenerational Solidarity [COM(99) 221] In 2000, more than 60 million people (16.4 % of the EU and the second entitled Europe’s response to world ageing population) were aged 65 or over. The rise in life — promoting economic and social progress in an ageing expectancy is set to continue; combined with falling birth world [COM(2002) 143], identify the following priority tasks: rates, this will accelerate the ageing of the population. The EU population aged 60 and over is expected to rise by 37 % — tackling the economic efects of ageing with a view to by 2050. maintaining growth and sound public inances; 1. Strategic approach of the EU to the problem — adapting successfully to a situation in which the labour of an ageing population force is older and fewer in number; (a) Importance of the issue — guaranteeing appropriate, viable and lexible pensions; Having been one of the irst regions in the world to be — ensuring that everyone has access to high-quality afected by the problem of an ageing population, Europe healthcare while guaranteeing the inancial viability of has developed a whole raft of strategic responses. Since health services.
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3. Green Paper ‘Confronting demographic change: A set of four objectives was deined: (i) to promote a new solidarity between the generations’ — participation in the labour market and access to all COM(2005) 94 resources, rights, goods and services, (ii) to avert risks of The EU is facing unprecedented demographic changes exclusion, (iii) to act on behalf of the most vulnerable, (iv) to that will have a major impact on the whole of society. mobilise all players. Figures in the Green Paper on Demographic Change show In 2005, the Commission proposed a new framework for that from now until 2030 the EU will lack 20.8 million the OMC of social protection and inclusion policies in the (6.8 %) people of working age. The demographic changes EU (COM(2005) 706) addressing three common overarching have major implications for prosperity, living standards and objectives providing a general framework for the work relations between the generations. across the OMC as a whole, (i) promote social cohesion and The development is the result of two factors — rise in life equal opportunities, (ii) interact with the Lisbon objectives expectancy and decreasing birth rate: from 2005 to 2030 the on achieving greater economic growth and more and number of people in the age group 65+ will rise by 52.3 % better jobs ("4.8.3.) and (iii) strengthen governance, (40 million), while the age group of 15–64 will decrease by transparency and involvement of stakeholders in the 6.8 % (208 million). In 2030 roughly two active people (15– design, implementation and monitoring of the policy. 65) will have to take care of one inactive person (65+). Particular importance is placed on a decisive impact in Modern Europe has never had economic growth without eradication of poverty and social exclusion, on providing births. Now low birth rate is the result of late access to adequate and sustainable pensions and on ensuring employment, job instability, expensive housing and lack of accessible, high-quality and sustainable healthcare and incentives (family beneits, parental leave, childcare, equal pay). long-term care. C. Social inclusion Based on these objectives the Member States will draw up National Strategies for Social Protection and Social The European Union is committed to modernising its social Inclusion for the period of 2006–08. Subsequently, the model based on shared values and to continue to promote Commission will draft a Joint Social Protection and Social social cohesion, equal opportunities and solidarity between Inclusion Report for Council/Commission adoption prior to generations while responding better to economic and the following Spring European Council. social change and promoting growth and employment. 2. The programmes According to Eurostat, some 18 % of the population of the EU, in other words about 65 million people, have to live on (a) Anti-poverty programmes less than 60 % of the average national income. A little more Between 1975 and 1980, in the framework of its irst anti- than one third of poor people live in working households, poverty programme, the European Economic Community the ‘working poor’. Another one third lives in retirement conducted an initial set of pilot projects and pilot studies and the remaining third are either inactive (19 %) or designed to combat poverty. That irst programme was unemployed (13 %). followed by two others. Community activity in this area, however, was continually being contested in the absence 1. The instrument: the open method of coordination of a legal basis. This was why the fourth anti-poverty (OMC) programme, proposed in 1993, was never adopted by the On the basis of the communication from the Commission Council. The situation changed in 1999 with the entry into entitled Building an inclusive Europe [COM(2000) 79], the force of the Treaty of Amsterdam, which enshrined the European Council debated the subject of social exclusion eradication of social exclusion as an objective of for the irst time at its Lisbon summit in March 2000. In Community social policy in Articles 136 and 137 of the ECT. December 2000, it agreed that policies designed to combat social exclusion should be based on an open method of (b) Social Inclusion Programme 2002–06 coordination combining national action plans and In December 2002, the European Parliament (EP/Parliament) Commission initiatives promoting cooperation. and the Council adopted Decision 50/2002/EC establishing a programme of Community action encouraging cooperation The main elements of this method are (i) common aims in between Member States to combat social exclusion. The the ight against poverty and social exclusion, (ii) national programme covers the period from 2002 to 2006 and was action plans for ighting against poverty and social allocated a budget of EUR 75 million. The programme exclusion, (iii) joint reports on social inclusion and regular activities fall into three categories: monitoring, joint evaluation and peer review and (iv) common indicators to measure progress and compare — analysis of the characteristics, causes, processes and good practices. development of social exclusion;
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01_2006_4661_txt_EN.indd 281 30-10-2007 14:55:18 — cooperation and exchanges of information and best life in October 1998 and, in November 2003, organised a EP practices; of Disabled People. — promotion of a dialogue involving the various Together with the Commission, Parliament has celebrated stakeholders and support for networking. 3 December as the European Day of Disabled People every The programme will become an integral part of the new year since 1993. In several resolutions, it has also called for all EU education, training and youth policies and programme Progress 2007–13 ("4.8.1.). programmes to include support measures designed to promote the integration of all disabled people into Role of the European Parliament mainstream education and training systems. The EP has adopted resolutions with the aim of improving In recent times, the EP has called on Member States, in the conditions for the socially excluded, the elderly and people Mantovani report of 2004, to transpose Directive 2000/78/ with disabilities. It emphasises that the Community must EC establishing a general framework for equal treatment in show greater solidarity with these groups and work for employment and occupation and to make more use of their integration into society. In this context, it has urged qualiied majority voting in the Council for the adoption of the Member States to set minimum incomes so that the anti-discrimination legislation. Parliament also used the most disadvantaged groups obtain the necessary means to occasion to reairm its support for a United Nations achieve a reasonable standard of living and are guaranteed convention on the rights of people with disabilities and to social protection and adequate healthcare. Parliament encourage the Member States to back that initiative. considers it essential that Community activities in this ield, in the form of action programmes, be continued and has The EP supports active ageing in its Report on a European called on the Council on several occasions to adopt the Social Model for the future (A6-0238/2006). In the same programme for the elderly and the socially excluded report it considers that employment is a decisive factor in proposed by the Commission. achieving social inclusion. In 1993, the EP initiated the organisation of a Senior Citizens’ Parliament. The EP held a European conference g Christa KAMMERHOFER entitled Older people in the 21st century — a new lease of 09/2006
4.9. Environment policy
4.9.1. Environment policy: general principles
Legal basis this subject to the Treaty establishing the European European environmental protection law dates back to a Community, is generally acknowledged as a turning point conference of Heads of State or Government in October for the environment. Since the Rome Treaties were revised 1972 which decided that a common environmental policy by the Treaties of Maastricht and Amsterdam, the legal was essential. Since 1972 the Community has adopted basis for Community environment policy has been Articles some 200 pieces of legislation, chiely concerned with 174 to 176 ex Articles 130(r) to 130(t) of the EC Treaty (ECT). limiting pollution by introducing minimum standards, notably for waste management, water pollution and air Objectives pollution. A number of action programmes provide the The Treaty of Amsterdam heightened the proile of framework for this legislation. The entry into force of the European Union environment policy. Changes to the Single European Act in 1987, adding a title speciically on preamble and Article 2 ex Article B of the EU Treaty
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strengthened the principle of sustainable development, so of strategic action are proposed: improving the that it is now one of the EU’s main objectives. Article 6(3)(c) implementation of existing legislation; integrating of the ECT explicitly mentions the need to integrate environmental concerns into other policies; working more protection of the environment into all Community sectoral closely with the market; empowering people as private policies. This new clause has widespread application; by citizens and helping them to change behaviour; and taking moving it from an article on the environment to an account of the environment in land-use planning and important position at the beginning of the Treaty, the EU’s management decisions. leaders underlined their commitment to the objective of Moreover, the programme requires the European sustainable development. And the inal act noted the Commission to prepare thematic strategies covering Commission’s undertaking to draw up impact assessment seven areas: Air Pollution (adopted 21 September 2005); studies when putting forward proposals that were likely to Prevention and Recycling of Waste (adopted 21 have signiicant environmental implications. December 2005); Protection and Conservation of the Under Article 174 ex Article 130(r)(2) of the ECT, Marine Environment (adopted 24 October 2005); Soil Community environment policy rests on the principles of Protection (not yet adopted); Sustainable Use of Pesticides precaution, prevention, rectifying pollution at source and (adopted 12 July 2006); Sustainable Use of Resources ‘polluter pays’. Article 95 ex Article 100(a)(3) of the ECT (adopted 21 December 2005); Urban Environment expressly states that ‘health, safety [and] environmental (adopted 11 January 2006). protection’ must take as a base ‘a high level of protection, The thematic strategies represent the next generation of taking account in particular of any new development environment policy. As their name suggests, they work based on scientiic facts. Within their respective powers the with themes rather than with speciic pollutants or European Parliament (EP/Parliament) and the Council will economic activities as has been the case in the past. They also seek to achieve this objective’. The Union thus pursues take a longer-term perspective in setting clear an active policy to protect the soil, water, climate, air, lora environmental objectives to around 2020 and will thus and fauna. But in accordance with the subsidiarity principle provide a stable policy framework. Finally, they focus on ("1.2.2.), the Union will tackle environmental problems only identifying the most appropriate instruments to deliver when it can deal with them more efectively than national European policy goals in the least burdensome and most or regional government. cost-efective way possible. Each strategy is founded on thorough research and science, Achievements and follows an in-depth review of existing policy and wide- A. Environmental instruments ranging stakeholder consultation. The aim has been to 1. Community environment programmes create positive synergies between the seven strategies, as The Fifth Community Action Programme on the well as to integrate them with existing sectoral policies, the Environment, entitled ‘Towards Sustainability’, established Lisbon strategy and the sustainable development strategy. the principles of a European strategy of voluntary action for Each thematic strategy will thus help achieve the long-term the period 1992–2000 and marked the beginning of a goal of environmental sustainability while contributing to ‘horizontal’ Community approach which would take the Lisbon goals of enhancing growth and employment account of all the causes of pollution (industry, energy, and promoting eco-innovation. tourism, transport, agriculture, etc.). 2. Assessment of the efects of certain plans The Sixth Community Environment Action Programme, and programmes on the environment adopted by the EP and the Council in 2002, entitled The directive on the assessment of the efects of certain ‘Environment 2010: Our future, our choice’ (Decision plans and programmes on the environment (2001/42/EC) 1600/2002/EC), provides a strategic framework for the supplements the environmental impact assessment system Community’s environmental policy up to 2012 and is for projects introduced by Directive 85/337/EEC. Directive regarded as the central environmental component of the 85/337/EEC covers construction work and other Community’s sustainable development strategy. It is based installations or schemes, as well as other measures afecting particularly on the polluter-pays principle, the the natural environment or landscape. The new directive precautionary principle and preventive action, and the introduces a system of prior environmental assessment at principle of rectiication of pollution at source. It focuses on the planning stage. Environmental assessment is four priority areas for action: climate change; biodiversity; automatically required for plans and programmes which environment and health; and sustainable use of natural are prepared for town and country planning, land use, resources and management of waste. Five priority avenues transport, energy, waste management, water management,
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01_2006_4661_txt_EN.indd 283 30-10-2007 14:55:18 industry, telecommunications, agriculture, forestry, isheries and existing national schemes. In 2005, the Commission and tourism. inished the evaluation process of the eco-label scheme, as 3. European Environment Agency required under the eco-label regulation, and published inal recommendations, research indings and an executive On 7 May 1990 the Council adopted a regulation summary. establishing the European Environment Agency (EEA) and the European Environment Information and Observation 5. Eco-audits Network (Regulation (EEC) No 1210/90 and amended Regulation (EEC) No 761/2001 (replacing Regulation (EEC) Regulation (EC) No 933/1999). It deines the agency as a No 1836/93), allowing voluntary participation by central Community body. organisations in a Community eco-management and audit The EEA’s objective is to protect and improve the scheme (EMAS), set up a new scheme to improve industrial environment in accordance with the provisions of the environmental protection by introducing a form of Treaty and Community environment action programmes, environmental management. with a view to establishing sustainable development within The objective of this regulation is to promote the Community. improvements in the environmental performance of To achieve this, the agency must provide the Community organisations in all sectors through: and the Member States with information which is — the introduction and implementation by organisations objective, reliable and comparable at European level and of environmental management systems as set out in which will enable them to take the measures required to Annex I to the regulation; protect the environment, evaluate the implementation of — objective and periodic assessment of those systems; those measures and ensure that the public is properly informed on the state of the environment. — training and active involvement of the staf of such organisations; The agency may cooperate in the exchange of information with other bodies, including the IMPEL network — provision of information to the public and the other (‘Implementation of Environment Law’ — information interested parties. network on environment legislation linking the Member The EMAS scheme has been evaluated by the Commission States and the Commission). Member States are obliged to in 2005 through the EVER study (Evaluation of EMAS and inform the agency of the main component elements of Eco-label for their revision). On 24 January 2006, Parliament their national environment information networks. The signed a ‘EP Environmental Statement’, which expresses agency is also open to countries that are not members of that the EP will ensure that its activities are consistent with the European Union. best current practice in environmental management. 4. The Community eco-label award scheme 6. Environmental inspections in Member States According to Regulation (EEC) No 880/92 (revised by A recommendation of the EP and of the Council of 4 April Regulation (EEC) No 2000/80) on a Community eco-label 2001 (Recommendation 2001/331/EEC) provides for award scheme, the EU-eco-label may be awarded to minimum criteria for environmental inspections in the products available in the Community which meet certain Member States. By putting forward minimum criteria environmental requirements and speciic eco-label criteria. regarding the organisation, performance, follow-up and The criteria are set and reviewed by the European Union publicising of environmental inspections, this Eco-Labelling Board (EUEB), which is also responsible for recommendation aims to ensure a more uniform the assessment and veriication requirements relating to implementation and application of environmental them. They are published in the Oicial Journal of the legislation in the Member States. The recommendation European Communities. covers environmental inspections of all industrial The Community eco-label award scheme is designed to installations, enterprises and facilities subject to promote products which have a reduced environmental authorisation, permit or licensing requirements under impact compared with other products in the same product current Community environmental legislation (‘controlled group and to provide consumers with accurate and installations’). scientiically based information and guidance on products. 7. Environmental taxes and charges in the single The Commission and the Member States must promote market the use of the eco-label by means of awareness-raising In addition to framework measures harmonised at actions and information campaigns. They must ensure Community level, the implementation of an environmental coordination between the Community eco-label scheme policy also requires a number of economic, technical and
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iscal instruments. Environmental taxes and charges can be second reading and Parliament will adopt a draft a way of implementing the ‘polluter-pays’ principle by recommendation in the Environment Committee in inducing consumers and producers to adopt more September 2006. environmentally compatible behaviour. 9. International environmental cooperation The Commission set out the applicable legal framework Notable EU international cooperation concerning the and Member States’ options and obligations in accordance environment includes: with single market rules in a communication (COM 97/9). In — cooperation with Russia: the EU–Russia Partnership and its corresponding resolution of 15 July 1998, the EP Cooperation Agreement (in force since 1997) includes a recognised that the use of environmental levies could Joint Work Programme on the environment; distort competition between those Member States which introduced them and those which did not, thus making it — the Europe–Asia cooperation strategy aims to help desirable for such levies to be introduced by all Member Asian countries build up environmental management States together. capacities (more eicient and rational use of natural resources, introduction of a sustainable wealth-creation 8. LIFE: A inancial instrument for the environment model and creation of environmental institutions) and (a) LIFE+ adopt market-based environmental measures; In 2004, the Commission has proposed a new single instrument for funding environmental work, called LIFE+ — UN World Summit on Sustainable Development (COM(2004) 621). This instrument, replacing existing (Johannesburg, 26 August to 4 September 2002): the inancial programmes such as LIFE, the ‘Urban Programme’, Community played a major role and contributed the ‘NGO Programme’ and Forest Focus, will cover the actively to the adoption of the political declaration and period from 2007 to 2013. On 27 June 2006, the EU plan of implementation (to improve access to basic Environment Council reached agreement on LIFE+. The sanitation and drinking water; to reduce biodiversity inal budget for LIFE+ is EUR 2 097.9 million for the period loss, to halt the decline of ish stocks; to minimise 2007–13, compared to an original budget proposal of harmful efects on human health from the production EUR 2.19 billion made by the European Commission in and use of chemicals by 2020). 2004. The Commission proposal of 2004 included two 10. Environmental liability components: ‘Implementation and Governance’ and Directive 2004/35/CE approved by Parliament and the ‘Information and Communication’. In irst reading in July Council in February 2004 establishes a framework of 2005, the EP proposed adding a third component, ‘Nature environmental liability based on the ‘polluter-pays’ and Biodiversity’. The new budget igure was proposed by principle for preventing and remedying environmental the Commission after the EP and Member States reached damage. The directive applies to environmental damage agreement on the overall EU inancial perspectives for the or to an imminent threat of such damage caused by 2007–13 period. The new LIFE+ programme is now divided pollution of a difuse character, where it is possible to into three strands: establish a causal link between the damage and the — LIFE+ Nature and Biodiversity: this focuses on the activities of individual operators. This legislation is a implementation of the EU directives on the response to a series of disasters in recent decades, conservation of habitats and of wild birds, as well as including the Seveso chemicals factory accident in 1976, further strengthening the knowledge needed for the ire at the Sandoz plant in Basle in 1986 and oil spills developing, assessing, monitoring and evaluating EU such as the Amoco Cadiz, the Erika and the Prestige. The nature and biodiversity policy and legislation; directive applies without prejudice to more stringent Community legislation regulating the operation of any of — LIFE+ Environment Policy and Governance: this covers the activities falling within its scope. Companies could the other Sixth Environmental Action Plan Programme cover themselves against possible costs by taking out (6EAP) priorities besides nature and biodiversity, as well insurance or using other forms of inancial guarantee. As as strategic approaches to policy development, proposed by Parliament, the directive will be reviewed implementation and enforcement; after six years and the Commission will check whether — LIFE+ Information and Communication on insurance and guarantees have become available at environmental issues. reasonable cost throughout Europe. If not, the Of the total budget for LIFE+, 40 % has been reserved for Commission will, if appropriate, propose legislation spending on the ‘nature and biodiversity’ part of the setting up a standardised compulsory inancial guarantee programme. The text of the common position is now in scheme.
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01_2006_4661_txt_EN.indd 285 30-10-2007 14:55:19 11. The precautionary principle Role of the European Parliament A Commission communication (proposal COM(2000) 0001) Parliament has been behind a large amount of legislation, and an EP vote on the precautionary principle on 14 such as environmental impact assessments, free access to December 2000 sought to establish common guidelines information and the eco-label for environmentally friendly for applying that principle in a wider context and to products. The Treaty of Amsterdam strengthened its role by provide criteria on how to assess, appraise and extending the co-decision procedure to all measures under communicate risks that science is not yet able to evaluate Article 175, except those dealing with taxation and the fully. management of water resources. After a long debate 12. European environment and health strategy between Parliament, the Commission and the Council, (SCALE) agreement was reached on a joint text for the 6th There is a strong link between poor health and Community Environment Action Programme (2001–2010). environmental problems: as many as 60 000 deaths per At Parliament’s request, the programme contains provisions year in large European cities are caused by long-term for listing and phasing out environmentally harmful exposure to air pollution. Being more exposed to subsidies, for environmental taxes at appropriate national environmental risks than adults, one child in seven is or Community level, for Kyoto Protocol emission targets afected by asthma. Seeking to reverse this alarming trend, and for thematic strategies for tackling environmental the European Commission launched in June 2003 a priorities. All legislation arising from the thematic strategies European Environment and Health Strategy will be adopted by co-decision. (COM(2003) 0338), called SCALE, aimed at achieving a Also at Parliament’s request, additional targets will be better understanding of the complex relationship between sought under the programme for cutting greenhouse gas environment and health and identifying and reducing emissions, linked to an assessment by the International diseases caused by environmental factors. The strategy Panel on Climate Change. The programme will promote the focuses on ive key elements: science, children, awareness, development of alternative fuels and fuel-eicient vehicles. legal instruments and evaluation. It will be implemented in Under the agreement, the rising volumes of urban traic cycles. The irst cycle, from 2004 to 2010, will focus on four will also be tackled and eforts made to improve the quality health efects: childhood respiratory diseases, asthma and of the urban environment. allergies; neurodevelopment disorders; childhood cancer; Furthermore, environmental concerns will be endocrine disrupting efects. In June 2004 the Commission mainstreamed into Community policy-making, which presented a European Environment and Health Action Plan Parliament called for, and special attention will be devoted 2004–2010 (COM(2004) 416), comprising points aimed at to increasing environmental awareness among the general improving coordination between the health, environment public and local authorities. and research sectors. A mid-term review of the action plan is scheduled in 2007. In January 2005, Parliament adopted Lastly, the programme will seek to improve the an own-initiative report (rapporteur Frédérique Ries) on the management and use of natural resources and improve action plan. Parliament considers the action plan to be waste management, with the aim of adopting more insuiciently ambitious and insuiciently promoting sustainable production methods and patterns of preventive action. Furthermore, it might have no added consumption. value for certain Member States where an ‘environment Parliament also played an active role in the Johannesburg and health’ strategy is already in place. Summit on Sustainable Development and stressed the 13. Programme promoting NGOs active in the ield importance of the EU taking the lead in ensuring of environmental protection demonstrable progress towards sustainable development. According to Decision 466/2002/EC laying down a In June 2006, Parliament adopted a resolution on the Community action programme promoting non- revised Sustainable Development Strategy. governmental organisations primarily active in the ield of During the long negotiations with the accession countries, environmental protection, a budget of EUR 32 million is Parliament played an active role as far as enlargement in planned for the period 2002–06. Support from the general and the environmental consequences in particular programme will target the priority areas under the Sixth were concerned (Workshop on ‘Enlargement and Environment Action Programme. The Commission is Environment’ in November 2003). required to submit a report to the EP and the Council on With a view to improving legislative assistance to members, the achievement of the objectives of the programme Parliament’s Environment Committee has concluded two during the irst three years. framework contracts with independent research institutes.
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Under the terms of these contracts, the committee can ask technical and scientiic nature relating to the environment, for independent expert advice on a variety of emerging public health and food safety. issues falling within its area of responsibility. The irst framework contract focused on regulatory issues and g Yanne GOOSEENS policy assessments concerning the environment. The Gianpaolo MENEGHINI second framework contract covered evaluations of a more 07/2006
4.9.2. Application and control of Community environmental law
Legal basis and objectives — promote environmental education and environmental "4.9.1. awareness among the public; — provide for recognition of and support to associations, Achievements organisations or groups promoting environmental protection. A. Aarhus Convention on access to information, public participation and access to justice in environmental The signing of the Aarhus Convention obliges the matters European Community to bring its legislation into line with the requirements of the convention. The Community has In 1998 the European Community, together with the 15 undertaken to take the necessary measures to ensure the Member States, signed the UN/ECE Convention on Access efective application of the convention. to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters (the ‘Aarhus 1. Public access to information Convention’). The convention, in force since 30 October The irst pillar of the convention on public access to 2001, is based on the premise that greater public information was implemented at Community level by awareness of and involvement in environmental matters Directive 2003/04/EC on public access to environmental will improve environmental protection. It is designed to information. This directive sets out the basic terms and help protect the right of every person of present and future conditions for granting access to environmental generations to live in an environment adequate to his or information held by or for public authorities and aims to her health and well-being. To this end, it provides for action achieve the widest possible systematic availability and in three areas: dissemination of this type of information to the public. The — ensuring public access to environmental information directive comprises the following key elements: held by the public authorities; — disclosure of information is the general rule, unless — fostering public participation in decision-making which there is an overriding public interest in refusal; afects the environment; — access to information is in principle free of charge; — extending the conditions of access to justice in however, public authorities may, under certain environmental matters. circumstances, charge a reasonable amount for supplying environmental information; The parties to the convention undertake to apply its provisions, and must therefore: — information on contamination of the food chain is also covered, where relevant; — take the necessary legislative, regulatory and other measures; — requests for information must be answered within one month of being received. This deadline may be — enable public oicials and authorities to help and extended by an additional month if necessary; advise the public on access to information, participation in decision-making and access to justice; — when replying to requests for information, public authorities must specify the diferent procedures used
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01_2006_4661_txt_EN.indd 287 30-10-2007 14:55:19 in compiling it or refer to the standardised procedure 5. Council Decision 2005/370/EC on the conclusion on used. Moreover, Member States will be obliged to behalf of the European Community of the Aarhus report by no later than 14 February 2009 on their Convention experience gained in applying this directive, and will be This decision approved the Aarhus Convention on behalf of required to submit a report to the Commission by no the Community. Community institutions are covered by the later than 14 August 2009. In the light of this experience Convention’s deinition of a public authority and are and taking into account developments in computing, therefore on the same footing as national or local telecommunications and electronics, the Commission authorities. will report to the European Parliament (EP) and to the Council, including any proposals for revision which it B. Establishment of a European Pollutant Release and may consider appropriate. Transfer Register In 2004, the Commission adopted a proposal for a 2. Public participation regulation aiming to enhance public access to The second pillar, which deals with public participation in environmental information through the establishment of a environmental procedures, was transposed by Directive coherent, integrated, Europe-wide ‘Pollutant Release and 2003/35/EC. This directive contributes to the Transfer Register’ (PRTR). On 18 January 2006, Parliament implementation of obligations arising from the Aarhus and Council signed a Regulation (EC) No 166/2006 Convention, in particular by providing for public concerning the establishment of a European Pollutant participation in drawing up certain plans and programmes Release and Transfer Register and amending Council relating to the environment and amending Council Directive 91/689 and 96/61. The European PRTR succeeds Directives 85/337/EEC and 96/61/EC with regard to public the existing ‘European Pollutant Emission Register’, or EPER participation and access to justice to ensure that they are (based on Commission Decision 2000/479/EC) and the fully compatible with the provisions of the Aarhus ‘Integrated Pollution Prevention and Control’ instrument, or Convention. IPPC (based on Council Directive 96/61/EC). It will take the 3. Access to justice form of a publicly accessible electronic database and will A proposal for a directive (COM(2003) 246) intended to lay down the rules in order to implement UNECE Protocol transpose the third pillar, which guarantees public access on Pollutant Release and Transfer Registers. Its purpose will to justice in environmental matters, was brought forward in be to facilitate public participation in environmental 2003, but has so far only had its irst reading in Parliament. decision-making, as well as contributing to the prevention Parliament wants the directive to establish a minimum and reduction of pollution in the environment. framework for access to justice in environmental matters C. Implementation and enforcement of Community and for Member States to be free to grant broader access. It environmental law proposed amendments which would extend access to justice in environmental matters to citizens’ organisations The Dublin European Council in June 1990 stressed that confronted with a tangible environmental problem and not Community environmental legislation would only be only to environmental entities as in the original proposal. efective if fully implemented and enforced by Member States. On 14 May 1997, in its resolution on the 4. Application in European Community institutions Commission’s communication (COM(96) 500 inal), and bodies Parliament called on the Commission to produce and A Commission proposal for a regulation (COM(2003) 622) publicise an annual report on progress in adopting and intended to guarantee that the provisions and principles of implementing Community environmental law. the Aarhus Convention are applied by Community The Sixth Annual Survey, which covers the year 2004, institutions and bodies. In May 2006, the Conciliation follows on previous Surveys by providing up-to-date Committee reached agreement on a joint text for a information on the state of application of Community regulation of the EP and of the Council on the application environmental law. This is in response to the Commission of the provisions of the Aarhus Convention. Parliament Communication on implementing Community considers the inal text as a very satisfactory and well environmental law (COM(96) 500 inal) and the related balanced compromise, given that many of the EP second resolutions thereon of the Council and EP. reading amendments have been accepted and satisfactory compromises were reached on the others (report Korhola, Implementation of EU environmental law by Member June 2006). In July 2006, Parliament adopted a legislative States has improved in recent years. This is relected in the resolution approving the joint text agreed by the much lower number of new complaints and infringement Conciliation Committee. cases opened by the Commission in 2004 in the
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environment sector. Such complaints often take the form to replace Directive 90/313/EEC) on better public access to of written questions and petitions to the EP. This relects the (environmental) information held by public authorities and concern of European citizens about the state of the on that information being disseminated using the latest environment and Member States’ ‘green record’. technology available. This would enable Community In this context, new working methods need to be legislation to be brought into line with the Aarhus developed with Member States at all stages of the Convention. implementation life cycle. Moreover, full implementation of The EP also considers simplifying and improving the Aarhus Convention will improve access to justice in Community legislation to be one of its duties and has Member States and thus also facilitate the handling of stressed the importance of clearer legislation which is complaints by the Commission. better supervised and implemented, in particular in view of enlargement. D. Serious environmental crimes — protection of the environment through criminal law In addition, the EP supported proposals to establish a In order to guarantee a high level of protection of the system of minimum criminal sanctions for the most serious environment the increasing problem of environmental breaches of Community law protecting the environment. crime must be tackled. The Community has adopted The efectiveness of EU environmental policy is largely numerous pieces of legislation protecting the environment. determined by its implementation at national, regional and Member States are required to transpose and implement local levels. At present however, although the number of those acts. Experience has shown, however, that the complaints concerning instances of non-compliance with sanctions currently applied by Member States are not Community law is slightly decreasing, deicient application always suicient to achieve full compliance with and enforcement remains an important issue in the ield of Community law. Not all Member States provide for criminal environmental law. The need for improved implementation sanctions against the most serious breaches of Community has been recognised as a key priority of both the Fifth and law protecting the environment. Therefore a minimum the Sixth Environmental Action Programmes. standard on the constituent elements of criminal ofences The EP stressed (see Decision 1600/2002/EC on the 6th in breach of Community law protecting the environment Community Environment Action Programme. "4.9.1.) that needs to be established. In order to ensure its better and ‘more efective implementation and enforcement of harmonised application in all Member States, this objective Community legislation on the environment’ should be can be better achieved at Community level rather than at regarded as one of the strategic objectives of EU national level. environmental policy. The EP thus called for measures to On 13 March 2001, the Commission put forward a draft improve respect for Community rules on the protection of directive on ‘Environmental protection: combating crime, the environment, the promotion of improved standards of criminal ofences and penalties’. The EP irst reading report inspection, monitoring and enforcement by Member States was then adopted on 9 April 2002 (Mrs Oomen-Ruijten and a more systematic review of the application of rapporteur). The Council never adopted a political environmental legislation across the Member States. agreement on this proposal but adopted instead a third The EP strongly supports the objective of prompt, uniform pillar Framework Decision on the same subject (Council and efective implementation of EU environmental law. In Framework Decision 2003/80/JHA of 27 January 2003 on 1997 the EP passed a resolution calling on the Commission the protection of the environment through criminal law, OJ to produce and publicise annual reports on progress in 2003 L 29, p. 55). This was challenged by the Commission adopting and implementing EU environmental legislation. and the Parliament in front of the European Court of Justice That the Commission is now publishing annual surveys on and, on 13 September 2005, the Court annulled the the implementation and enforcement of Community framework decision. To see what the Commission and environmental law is in response to the EP calling on it to Council plan to do in response to the Court of Justice do so. decision, the EP proposed adoption of two oral questions, as well as a draft resolution. Implementation issues have been high on the agenda of Environment Committee meetings over the last few years. The Committee now draws up three follow-up reports each Role of the European Parliament year, in which it looks at adopted EU legislation in the The EP has always insisted on the need for better public environment and related ields, examines problems of access to environment-related information and for implementation and assesses whether or not the improving public participation and access to justice in legislation is meeting its initial objectives. environmental matters. The EP insisted (recommendation
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4.9.3. Sustainable development
Legal basis and objectives governance at all levels, including harnessing globalisation "4.9.1. (trade for sustainable development); combating poverty and promoting social development (reducing extreme poverty in the world — i.e. people who live on a euro a day Achievements or less — by 2015); sustainable management of natural and A. Global partnership for sustainable development environmental resources (reversing the trend of the loss of Globalisation acts as a powerful force for sustaining global environmental resources by 2015 as well as developing growth and providing ways of dealing with international intermediate objectives in the sectors of water, land and problems such as health, education and the environment. soil, energy and biodiversity); better governance at all levels However, market forces cause and exacerbate inequality (meaning strengthening the involvement of civil society, and exclusion and can cause irreparable damage to the and the legitimacy, coherence and efectiveness of global environment. Globalisation should therefore go hand in economic, social and environmental governance); and hand with measures designed to prevent or mitigate these inancing sustainable development. efects. The EU Strategy for Sustainable Development has been On 16 May 2002, the EP adopted a resolution on a revised by the European Commission with the goal of Commission communication entitled ‘Towards a global better integrating the domestic and international partnership for sustainable development’ (COM(2002) 82) dimensions of sustainable development. Following the in view of the World Summit on Sustainable Development review of the EU Sustainable Development Strategy 2001 (WSSD) held in Johannesburg in September 2002. For 2004 (COM(2005) 658) of December 2005 and on the basis of and 2005, the political focus lay on water, sanitation and contributions from the Council, the European Parliament human settlements. The cycle for 2006 and 2007 deals with (EP/Parliament), the European Economic and Social energy, industrial development, air pollution and climate Committee and others, the European Council adopted in change, as decided by the 14th session of the UN June 2006 an ambitious and comprehensive renewed Commission on Sustainable Development (CSD-14) in May Sustainable Development Strategy (DOC 10117/06) for an 2006. Moreover, all cycles address cross-cutting issues, such enlarged European Union. This document sets out a single, as governance, inance, and sustainable consumption and coherent strategy on how the EU will more efectively live production. With a view to achieving the Millennium Goal up to its long-standing commitment to meet the of reducing poverty by half by 2015, the Commission called challenges of sustainable development. The overall aim of on Member States to increase their development aid, irst the renewed EU SDS is to support and promote actions to of all, to an EU average of 0.39 % of GDP and then to 0.7 % enable the EU to achieve continuous improvement of by 2010. It also urged them to agree on an immediate quality of life for both current and future generations, moratorium on debt servicing for all least developed through the creation of sustainable communities able to countries (LDCs) with debt problems. manage and use resources eiciently and to tap the ecological and social innovation potential of the economy, This EU strategy for sustainable development sets out a ensuring prosperity, environmental protection and social roadmap for implementing sustainable development in the cohesion. Union and covers economic, social, environmental and inancial aspects, as well as coherence of EU policies and In adopting a joint resolution on the revised sustainable development strategy on 15 June 2006, the EP expresses its
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disappointment at the lack of progress in developing and C. Integration of environmental policy following up the Sustainable Development Strategy On 1 June 2004, the Commission adopted the Working adopted in Gothenburg in 2001. It considered that the Document ‘Integrating environmental considerations into Commission’s platform for action on the review of the SDS other policy areas — a stocktaking of the Cardif process’ was overly cautious and weak, and in its present form (COM(2004) 394). This stocktaking of environmental would not succeed in mobilising public opinion and integration follows from the Cardif Summit of June 1998 policy-makers behind the vital tasks that lie ahead. and from the 2003 Spring European Council, which noted ‘the Commission’s intention to carry out an annual B. Environmental technology for sustainable stocktaking of the Cardif process of environmental development integration and a regular environment policy review and to A Commission report (COM(2002) 122) summarises the report in time for the outcomes of these exercises to be main issues concerning environmental technology, taken into account in the preparation of its future Spring including an action plan. reports, starting in 2004’. The stocktaking complements the At the European Council in Lisbon in March 2000, the EU 2003 Environment Policy Review (EPR) adopted in set itself the objective of becoming ‘the most competitive December 2003, and should be read in the context of the and dynamic knowledge-based economy in the world’. At information presented in the 2003 EPR. the Gothenburg European Council in June 2001, a strategy In response to the ‘Communication from the Commission for sustainable development was agreed by adding an to the Council and the EP — The 2005 Review of the EU environmental dimension to the Lisbon strategy. Sustainable Development Strategy: Initial Stocktaking and Environmental technologies are an important bridge Future Orientations (SEC(2005) 225) (COM/2005/0037 inal)’, between the Lisbon strategy ("4.0.0) and sustainable the EP adopted a resolution on 18 January 2006, based on development, having the potential to contribute to growth the own-initiative report drafted by Anne Ferreira on the while at the same time improving the environment and environmental aspects of sustainable development. The protecting natural resources. report said that it was regrettable that most of the New and innovative environmental technologies can add orientations contained in the communication failed to to economic growth in a number of ways. They can allow respond to the magnitude of the challenges. It underlined us to get more environmental protection for less money, or the worsening of unsustainable trends in a number of to meet current standards at a lower cost. This frees up ields: pollution-generating misuse of natural resources, resources for use elsewhere in the economy. They also help loss of biodiversity, aggravation of climate change, the to decouple environmental pollution and resource use inequalities of poverty and the accumulation of public debt from economic growth, allowing our economies more both in the EU and in third countries. scope to grow in the long run while still remaining within 1. Environment and employment the environment’s limits. This is central to sustainable A Commission proposal (COM(97) 592) and a EP resolution development. Finally, an innovative environmental adopted on 16 July 1998 encouraged Member States to technology sector can help underpin growth if it is capable speed up the transition to new and clean technologies to of tapping into rapidly growing export markets. replace polluting technologies and reconsider ways of On 5 July 2005, the EP adopted a resolution inancing the provision of public goods. The most (2004/2131(INI)) on the Commission’s Communication on favourable time for making this shift is when old capital is Stimulating Technologies for Sustainable Development: An to be replaced with new investment integrating high Environmental Technologies Action Plan for the EU environmental standards. The beneits would be twofold: (COM(2004) 38). Main issues addressed were: boosting investment would create jobs and business opportunities; demand for environmental technologies; creating a fair and new technologies would lead to a better environment. competitive market for environmental technologies; 2. Environment and energy policy meeting the demand for environmental technology (such as providing research with suicient means); and coherent A Commission package of four directives (COM(2003) 739, policies on an internal as well as an external level. Finally, 740, 741 and 742) have been discussed within the EU Parliament emphasised that sustainable development institutions. On 28 September 2005, Parliament and Council requires global solutions and welcomed all initiatives to adopted Regulation (EC) No 1775/2005 on conditions for promote environmental technologies in developing access to the natural gas transmission networks. On 18 countries. Exports of outdated and polluting technology to January 2006, the directive of the EP and of the Council third countries must be discouraged. concerning measures to safeguard security of electricity supply and infrastructure investment (2005/89/EC) was
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01_2006_4661_txt_EN.indd 291 30-10-2007 14:55:20 adopted. And on 5 April 2006, the EP and the Council 5. Strategy for integrating the environment signed the Directive 2006/32/EC on energy end-use into the single market eiciency and energy services and repealing Council Environmental standards are often perceived as barriers to Directive 93/76/EEC. In agreeing on this Act the EU intends market access (strict technical standards), just as open to contribute towards the improved security of energy markets are frequently seen as a threat to the quality of the supply as well as reducing the emission of dangerous environment. A Commission proposal (COM(99) 263) tries greenhouse gases. The irst energy eiciency action plan to develop the synergies between the single market and must be submitted no later than 30 June 2007. EU environment policy following the strategy formulated Furthermore, on 4 April 2006, the EP adopted a second by the European Council in Vienna, with the aid of a series reading report by Anne Laperrouze amending the Council’s of measures on public procurement, State aid, common position on the directive on Trans European standardisation, inancial reporting and eco-labelling. Energy Networks. On 6 July 2006, the Commission gave its Furthermore, a strong correlation between the opinion on the EP amendments to the common position environment and the single market is deined as a principle (COM(2006) 0381). step towards the achievement of the Lisbon objectives. Economic instruments such as taxes (environmental taxes 3. Approaches to sustainable agriculture and charges) can be an appropriate way of implementing The political agreement in the Council concerning the the ‘polluter pays’ principle. Commission reform proposals ‘CAP reform — a long-term perspective for sustainable agriculture’ (26 June 2003) is 6. Strategy for integrating the environment therefore increasingly aimed at heading of the risks of into industry environmental degradation, while encouraging farmers to Industry has made considerable progress in environmental continue to play a positive role in the maintenance of the protection, by implementing environmental management countryside and the environment by targeted rural and audit systems and new strategies and objectives development measures and by contributing to securing (introducing the concept of eco-eiciency, for example). farming proitability in the diferent EU regions. The agri- According to the Council Conclusions of 29 April 1999, environmental strategy of the common agricultural policy environmental policy and sustainable development should is largely aimed at enhancing the sustainability of agro- be integrated into industrial policy. On 14 and 15 May 2001 ecosystems. The measures set out to address the the industry integration strategy was adopted at the integration of environmental concerns into the CAP Industry/Energy Council. The Communication ‘Industrial encompass environmental requirements (cross- policy in an enlarged Europe’ (COM(2002) 714 inal) compliance) and incentives (e.g. set-aside) integrated into adopted by the Commission on 11 December 2002 the market and income policy, as well as targeted recognises the need to develop and strengthen policies in environmental measures that form part of the rural the area of sustainable production. development programmes (e.g. agri-environment 7. Promoting sustainable development schemes). in the non-energy extractive industry 4. Integration of the environment dimension Extractive operations raise two types of concern: the use of in developing countries non-renewable resources and the damage done to the The current Regulation (EC) No 2493/2000 is designed to environment (air, soil and water pollution, noise, continue action on the basis of experience gained in destruction or disturbance of natural habitats, visual impact implementing the earlier regulation, promoting the full on the surrounding landscape, and efects on groundwater integration of the environmental dimension into the levels). Mining waste is one of the largest waste streams in development process of developing countries. the EU. Some of the waste involved is dangerous. Abandoned mine sites and unrestored quarries spoil the The regulation lays down the rules under which landscape and can pose severe environmental threats cooperation projects initiated by various players particularly as regards acid mine drainage. (governments, public bodies, regional authorities, traditional or local communities, cooperatives, international 8. Integrating environmental protection requirements organisations, non-governmental organisations, private into the common isheries policy actors) in developing countries and which are intended to On the basis of an analysis of the existing situation and the promote sustainable development may receive EU inancial international debate on responsible ishing, a certain aid and technical assistance. The budget for applying the number of ideas have been presented by the Commission regulation over the period between 2000 and 2006 is during the last few years. In the framework of the reform of EUR 93 million. the common isheries policy (CFP), these ideas have been
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incorporated into an action plan to integrate and responsibilities together — integrating environmental environmental protection elements into the CFP by issues with economic policy’ (‘irst step toward a strategy’) deining guiding principles, management measures and a of 27 November 2000. Achieving the Kyoto targets through work programme with a view to promoting sustainable market instruments, such as an emissions trading system, development. A communication from the Commission was the underlying objective of the report. Furthermore, (COM(2002) 0186 inal) set out a Community action plan to the report stressed the need for annual broad economic integrate environmental protection requirements into the policy guidelines fully incorporating the objectives of common isheries policy. In the context of ‘conservation environmental integration. and environment’ two communications addressed the 11. Integration of the environment into air transport problems head-on: COM(2001) 143(01) set out the The communication COM(1999) 640 (EP resolution ‘elements of a strategy for the integration of environmental adopted on 7 September 2000) aims to improve the protection requirements into the common isheries policy’; environmental performance of air transport activities so as and COM(1999) 363 deined ‘the basic elements of isheries to ofset the environmental impact of growth in this sector. management and nature conservation in the marine Following the Communication from the Commission on environment’. reducing the climate change impact of aviation 9. Integrating the environmental dimension into (COM(2005) 459), the EP adopted a resolution on 4 July sustainable development of the urban environment 2006, based on the own-initiative report of Caroline Lucas Following a communication entitled ‘Sustainable urban (2005/2249 (INI)). This report calls for tough new measures development in the EU: a framework for action’ (COM(1998) to reduce the global warming impact of aviation and apply 605), Decision No 1411/2001/EC put in place a framework the ‘polluter pays’ principle to the airline industry. MEPs for cooperation to deine, exchange and implement good supported the introduction of a kerosene tax for all practice in sustainable urban development (in the domestic and intra-EU lights as a irst step towards a global framework of Agenda 21). The main partners are the kerosene tax. The Environment Committee also supported
Commission and the networks of towns and cities a Commission proposal to cap CO2 emissions for all organised at European level. Following on from Decision aeroplanes departing from EU airports. Airlines would be No 1600/2002/EC of 22 July 2002 laying down the Sixth able to trade their potential surplus ‘pollution credits’ on the Community Environment Action Programme, the European EU ‘carbon market’ (Emissions Trading Scheme).The Commission adopted the Thematic Strategy on the Urban Commission is expected to put forward a formal proposal Environment on 11 January 2006. The strategy builds on to include aviation in the EU ETS by the end of the year existing European policy initiatives for improving the 2006. quality of the urban environment and sets out new measures to support and facilitate the adoption of Role of the European Parliament integrated approaches to the management of the urban "4.9.1. and 4.9.2. environment by national, regional and local authorities. At the end of 2005, the Commission published a 10. Integration of the environment into economic communication reviewing the EU Sustainable policy Development Strategy (SDS) adopted at the Gothenburg The best strategy for integrating the environment into Summit in 2001. In June 2006, the Council adopted this economic policy is to create or improve the functioning of renewed SDS. The EP’s contribution to this debate was the markets for environmental goods; create and assign well- ENVI Committee’s own-initiative report on the deined property rights for environmental goods and environmental aspects of sustainable development (Anne services which are enforceable by law and tradable; ix a Ferreira, PES, France), which was adopted in plenary in price to pay (in the form of a tax or charge) for pollution; January 2006 and underlines the worsening of establish deposit-refund schemes to encourage recycling; unsustainable trends in a number of ields where ofer subsidies to goods and services which generate improvements are needed: pollution-generating misuse of positive environmental efects; negotiate agreements with natural resources, loss of biodiversity and worsening of industry, and provide information about the environmental climate change, among others. There is a risk, for instance, characteristics of goods and services. that the Union will not attain the Kyoto Protocol objectives The Commission communication on integrating for 2012, as a result of the absence of suitable measures to environmental issues into economic policy of 20 curb the rise in road transport. In its joint resolution, September 2000 was the basis for the Ecoin Council’s adopted in Strasbourg on 15 June 2006, the EP expresses Report to the Nice European Council — ‘Bringing our needs its disappointment at the lack of progress in developing
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01_2006_4661_txt_EN.indd 293 30-10-2007 14:55:20 and following up the Sustainable Development Strategy — reduction at source of the production of waste; adopted in Gothenburg in 2001. Parliament welcomed, — promotion of sustainable town planning; however, the valuable work of the Austrian presidency in seeking to relaunch the SDS. — increase of resource and energy eiciency; Parliament’s ENVI Committee also showed its concern at — reinforcement of the environmental and social aspects the large and rapid increase in air transport and polluting of the impact assessments for all its legislative emissions in that sector unless swift action is taken. This is proposals; why MEPs in the committee supported the creation of a — new proposals for a irst European eco-tax; pilot trading scheme for aviation emissions for the period — adoption of all the thematic strategies announced by between 2008 and 2012 covering all lights to and from any summer 2006 at the latest. At July 2006, only the TS on EU airport. The European Commission hopes to make a soil protection has not been adopted yet. legislative proposal towards the end of 2006. The committee concluded that sustainable development The inal report on the environmental aspects of must be a guiding principle for EU policies in all areas. It sustainable development, as adopted in January 2006, points out that inaction will come at an increasingly high asked the Commission to step up its action in many ields, price and will have ever more considerable direct including: consequences. — transfer of a large proportion of road transport to more environmentally friendly modes of transport; g Yanne GOOSEENS — promotion of the use of biofuels; Gianpaolo MENEGHINI 07/2006 — reversal by 2010 of the current loss of biodiversity;
4.9.4. Treatment of waste
Legal basis and objectives pollution and the protests of local inhabitants. Recourse to "4.9.1. dumping will depend on the availability of conveniently situated and well-planned sites and the pre-treatment of certain waste before inal dumping. Achievements Waste incineration is an option in many cases, having the A. General background advantage of energy recovery. However, investment is Total waste generation in the EU is about 2 billion tonnes required to prevent toxic emissions, as well as careful per year (excluding agricultural waste). This means that planning and management of the plant and sensitive approximately 3.5 tonnes per capita of waste is produced selection of sites. The best way to cut down the volume of in the EU every year. According to information published waste is to prevent waste production and to recycle. by the European Environment Agency (EEA), six major Recycling has great potential for reducing pollution. Energy waste streams make up the bulk of total waste generation consumption is cut by between a quarter and three-ifths in the EU: manufacturing waste (26 %), mining and for every tonne of paper produced from waste paper rather quarrying waste (29 %), construction and demolition waste than wood, while atmospheric pollution is cut by 75 %. (22 %) and municipal solid waste (14 %). To this should be Recycling of paper, cardboard and glass is therefore of added agricultural and forestry waste, which is estimated to prime importance. Levels of recycling in the Member States be of similar magnitude to construction and demolition in range from 28 % to 53 % for paper and cardboard (EU terms of weight. average: 49.6 %) and between 21 % and 70 % for glass. In the EU’s most densely populated areas, disposal by 1. Main thrust of EU policy dumping is reaching its limits, and while it remains a The thematic strategy on the prevention and recycling of possible solution in other areas the opportunities are waste, adopted by the European Commission on 21 limited in the long term by the threat of water and soil December 2005, deals with substantial environmental
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impacts. EU policy has several main objectives, including unclear provisions in all three directives should be avoiding waste by promoting environmentally-friendly and modiied or removed. Furthermore, in the ield of less waste-intensive technologies and processes and by permitting of waste installations, the waste framework producing environmentally sound and recyclable products; directive operates in conjunction with Directive 96/61/ promoting reprocessing, in particular the recovery and EC concerning integrated pollution prevention control reuse of waste as raw materials; improving waste disposal (the IPPC Directive). by introducing stringent European environmental The proposal for the new directive links the waste hierarchy standards, particularly in the form of legislation; tightening (prevention, reuse, recycling, incineration, and inally, up the provisions governing the transport of dangerous disposal in landills) with its objectives of reducing the substances and reclaiming contaminated land. These environmental impacts of the generation and objectives are to be achieved by disposing of waste at management of waste. appropriate facilities as close as possible to the place where it was produced. 2. Hazardous waste (a) Controlled management of hazardous waste B. Framework legislation Council Directive 91/689/EEC concerns the management, 1. Basic directive recovery and correct disposal of hazardous waste. Decision Directives 75/442/EEC and 91/689/EEC lay down the 2000/532/EC (amended by Decision 2001/573/EC) general and basic provisions for all waste and hazardous established a single list which incorporates the list of waste, while Directives 75/439/EEC and 86/278/EEC set out dangerous waste laid down in previous decisions. The new requirements for speciic waste streams (waste oil and waste framework directive would integrate the old sewage sludge), which difer due to the diferent waste hazardous waste directive. A number of the elements from types and problems involved. the hazardous waste directive that have not been taken up On 21 December 2005, the Commission adopted a in the proposal for the new framework are adequately proposal for a new directive on waste (COM(2005) 667). The covered by other Community legislation such as Directive thematic strategy on the prevention and recycling of waste 2000/76/EC on the incineration of waste and Directive has identiied three principal reasons for undertaking a 96/59/EC on PCB/PCT. revision of Directive 75/442/EEC, the waste framework (b) Disposal of polychlorinated biphenyls (PCB) and directive: polychlorinated terphenyls (PCT) and environmental issues — the need for clearer deinitions and/or a mechanism to of PVC clarify the waste issue at the EU level; Directive 96/59/EC approximates the Member States’ laws on the controlled disposal of PCBs, the decontamination or — the need for a new approach to waste policy, better disposal of equipment containing PCBs and/or the disposal adapted to a situation where most of the signiicant of used PCBs in order to eliminate them completely. In a waste management operations are now covered by resolution adopted on 17 January 2001 the EP environmental legislation. This requires the introduction recommended improving implementation of Directive of an environmental objective in the revised directive 96/59/EC on the disposal of polychlorinated biphenyls and on waste (focused on the reduction of environmental polychlorinated terphenyls (PCBs and PCTs) rather than impacts from waste generation and management, redrafting it. On 24 October 2001, the Commission adopted taking into account the whole life-cycle) and the move a Community Strategy on Dioxins, Furans and PCBs to a more standards based approach (application of (COM(2001) 593) aimed at reducing as far as possible the minimum standards, clear recovery deinitions and the release of these substances into the environment and their use of end of waste criteria); and introduction in the food chains. — the need to simplify the existing legal framework. The In another resolution on 3 April 2001, Parliament made a new waste framework directive would repeal Directive series of recommendations concerning the Green Paper 75/439/EEC on the disposal of waste oils and integrate published by the Commission in July 2000 on Directive 91/689/EEC on hazardous waste. The waste oil environmental issues of PVC (COM(2000) 469). The directive (Council Directive 75/439 of 16 June 1975) is European Parliament (EP/Parliament) criticised the considered to be outdated and the provisions of the Commission for not having performed any lifecycle analysis hazardous waste directive are closely connected with of PVC products to compare them with alternative the waste framework directive. Therefore, integrating materials and called on the Commission to bring forward them into one framework would consolidate and as soon as possible a draft long-term horizontal strategy on simplify legislation. In addition, some obsolete or the replacement of PVC. It proposed that the ‘polluter pays’
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01_2006_4661_txt_EN.indd 295 30-10-2007 14:55:21 principle should be applied to PVC waste. It also called on C. Waste treatment the Commission to propose appropriate measures to 1. Use of sewage sludge in agriculture ensure separate collection of PVC products and proposed Council Directive 86/278/EEC on the protection of the that all use of lead and cadmium in PVC should be banned. environment, and in particular of the soil, when sewage It suggested that a recycling system similar to that for end- sludge is used in agriculture has been quite successful in of-life vehicles be set up and that labelling of all plastic preventing crop contamination by pathogens which could materials be made compulsory. have been caused by the use of sludge on agricultural soils. (c) Disposal of spent batteries and accumulators Some Member States have a particularly high reuse rate, On 4 July 2006, the EP adopted a resolution approving the others prefer to landill or re-incinerate the sludge they joint text agreed by the Conciliation Committee in May produce. 2006 on the proposed directive on batteries and 2. Landill sites accumulators (COM(2003) 0723). They agreed on a Directive 1999/31/EC is intended to prevent or reduce the compromise that provides for a minimal ban of cadmium adverse efects of the landill of waste on the environment, in batteries as well as for a recycling target of 50 % by in particular on surface water, groundwater, soil and air, as 2016. well as on human health. The directive sets up a system of 3. Shipments of waste operating permits for landill sites. Supervision and control of cross-border shipments of 3. Incineration waste are regulated by Council Regulation (EEC) No Directive 2000/76/EC will apply to existing plants as from 259/93. In June 2003, the Commission proposed a revision 28 December 2005 and has applied to new plants since of the 10-year-old waste shipment regulation December 2002, to prevent or reduce, as far as possible, air, (COM(2003) 379) to simplify control procedures for water and soil pollution caused by the incineration or co- shipments of waste. This regulation sets environmental incineration of waste. criteria for waste shipments within, into and outside the EU. It covers shipments of practically all types of waste by In the proposal for the new waste directive, the all means, including vehicles, trains, ships and planes. The Commission calls for more lexibility in the waste hierarchy proposal strengthens the current control procedures, to allow waste to be treated in a cheaper and more energy- simplifying and clarifying them to the beneit of both the eicient way. The Commission has put forward an energy- environment and waste shipment companies. It is also a eiciency threshold to determine whether an incineration step towards greater international harmonisation of waste facility should be considered as a recovery instead of a shipments, as it fully implements the UN Basel disposal facility. Assessment is necessary to deine the Convention, which regulates shipments of hazardous energy-eiciency thresholds, the countries in which waste at international level. The proposal streamlines incinerators are located, as well as an estimated number of procedures and reduces the number of waste lists from facilities which would then qualify as ‘recovery’ or ‘disposal’ three to two. It has four main objectives: operations. — implementing OECD Council Decision C(2001) 107 of 14 D. Speciic waste June 2001 in EU legislation; 1. Titanium dioxide — addressing the problems encountered in the Council Directive 78/176/EEC aims to prevent, gradually application, administration and enforcement of the reduce and ultimately eliminate pollution from titanium 1993 regulation and establishing greater legal clarity; dioxide industrial waste. Council Directive 82/883/EEC sets common reference methods of measurement for sampling — pursuing global harmonisation in the area of trans- in order to conserve environments afected by titanium boundary shipments of waste; dioxide waste. Council Directive 92/112/EEC introduces — improving the structure of the articles of the regulation. rules on programmes for the reduction of pollution. In line The Commission’s proposal brings clariication to the with the action plan of the Commission ‘Simplifying and application and implementation of the current improving the regulatory environment’, the Commission regulation but does not change its basic logic. has set up a stakeholders consultation on a draft working On 14 June 2006, the EP and the Council came to a new document in order to simplify the three more than 15 years Regulation (EC) No 1013/2006 on shipments of waste. At old titanium dioxide directives. international level, the Community signed the Basel 2. End-of-life vehicles Convention on transboundary movements of hazardous At the moment, 75 % of end-of-life vehicles are recycled waste in 1989. (metal content). The aim of Directive 2000/53/EC is to
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increase the rate of reuse and recovery to 85 % by average — a binding annual collection target of four kilograms of weight per vehicle and year by 2006, and to 95 % by 2015, such waste per person from private households and and to increase the rate of reuse and recycling over the free-of-charge collection facilities; same period to at least 80 % and 85 % respectively by — the possibility for producers to put into practice average weight per vehicle and year. Less stringent individual or collective inancing schemes for the objectives may be set for vehicles produced before 1980. collection of WEEE from private households; In November 2005, a Stakeholder Working Group — inancing by producers, or by users other than private presented its inal report on the review of the 2015 targets. households, of the costs of ‘historical waste’ They stress that these targets will probably not be achieved management (WEEE from products put on the market due to high treatment cost and the lack of adequate prior to 2005); governance infrastructure in place. They also question the reliability of the data that will be gathered following — clear marking by producers of electrical and electronic Commission’s Decision (2005/293/EC) laying down detailed equipment in order to facilitate their identiication and rules on monitoring and reporting on achievement of the dating, as well as the later treatment and disposal of targets set out in the ELV Directive. WEEE. 3. Waste electrical and electronic equipment At July 2006, the Commission is reviewing Directive Directive 2002/95/EC on the restriction of the use of certain 2002/96/EC through inter alia stakeholders’ consultations. hazardous substances in electrical and electronic 4. Radioactive waste and substances equipment (the so-called RoHS Directive) was adopted In accordance with Directive 80/836/Euratom, each after a long and controversial debate in the EP. Member State must make compulsory the reporting of This aims to protect the soil, water and air against pollution activities which involve a hazard arising from ionising through the restriction of the use of certain substances, radiation. In the light of possible dangers, activities are such as lead, mercury, cadmium, chromium and certain subject to prior authorisation in certain cases decided upon hexavalent brominated lame retardants (e.g. by each Member State. Shipments of radioactive waste polybrominated biphenyls or polybrominated diphenyl between Member States and into and out of the EU are ethers) in that type of equipment. It lays down provisions subject to the speciic measures laid down by Council to ensure that from 1 July 2006 new electrical and Regulation (Euratom) No 1493/93 and Directive 92/3/ electronic equipment put on the market does not contain Euratom. Each Member State must ensure that its own any of these substances. Certain exemptions apply, inter radioactive waste is properly managed. The provisions of alia, to the use of mercury in compact and straight this directive prohibit the export of radioactive waste to the luorescent lamps, as well as to the use of lead in diferent ACP countries, in line with the Lomé IV Convention signed types of solders and as an alloying element. on 15 December 1989, to a destination south of latitude 60° south or to a third country which does not have the It provides for the prohibition of other hazardous resources to manage the radioactive waste safely. substances and for their replacement by more environmentally friendly alternatives as soon as new 5. Packaging and packaging waste scientiic evidence is available, on the basis of a new First signed in 1994, the Packaging and Packaging Waste proposal from the Commission. In 2005 and 2006, the Directive (94/64/EEC) covers all packaging placed on the Commission has adopted several decisions amending market in the Community and all packaging waste, Directive 2002/95/EC on establishing maximum whether it is used or released at industrial, commercial, concentration values for certain hazardous substances oice, shop, service, household or any other level, (2005/618/EC) and on adapting to the technical progress regardless of the material used. Directive 2004/12/EC the annex on exemptions for applications (2005/717/EC, (amending Directive 94/62/EC) establishes criteria clarifying 2005/747/EC, and 2006/310/EC). the deinition of the term ‘packaging’. Clear examples are given in Annex I, such as tea bags, which are non- Directive 2002/96/EC on waste electrical and electronic packaging, and the ilm overwrap around a CD case, or equipment (WEEE) was also adopted after a long and labels hung directly on or attached to a product, which are controversial debate in the European Parliament (EP/ packaging. Parliament). It has as its objective the protection of the soil, water and air against pollution, through better disposal of 6. Directive on the management of waste waste electrical and electronic equipment. The directive from extractive industries provides mainly for: On 15 March 2006, a directive on the management of waste from extractive industries was adopted (2006/21/EC),
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01_2006_4661_txt_EN.indd 297 30-10-2007 14:55:21 based on the Commission proposal COM (2003)319. This declassiication of waste that could lead to inappropriate directive seeks to tackle the signiicant environmental and environmental treatment and lack of traceability; health risks associated with the management of mining emphasises the key importance of the 5 stage waste waste as a result of their volume and pollution potential. hierarchy; asks the Commission to propose concrete measures on prevention of waste and to develop a set of Role of the European Parliament indicators; asks the Commission to propose speciic directives on biodegradable waste, construction and The EP has long pressed for further development of EU demolition waste and sewage sludge. strategy on waste management and urged the Commission to develop appropriate proposals placing Concerning the two directives in 2001 on waste electrical stronger emphasis on waste prevention, more extensive and electronic equipment, the EP insisted that the recycling and market and iscal incentives. prevention of such waste should have absolute priority. It also urged the reuse, recycling and other forms of recovery The EP has often been the driving force and a critic of EU of such waste so as to reduce the disposal thereof. The EP waste management policy. It called on the Commission to has also called for restrictions on the use of hazardous put in place a real waste management strategy based on substances in electrical equipment in order to contribute to sustainable development, ensuring that the present the environmentally sound recovery and disposal of waste generation’s use of resources did not jeopardise their use electrical and electronic equipment by ensuring that by future generations. Concerned to avoid ‘waste tourism’, substances causing major problems during the waste Parliament also advocated implementation of the polluter- management phase — such as lead, mercury, cadmium, pays principle, elimination of waste at source and hexavalent chromium and certain brominated lame- development of the recycling market. retardants — are substituted. The EP is expected to adopt a report in October 2006 During the conciliation process on batteries and (Rapporteur Caroline Jackson) on the new Directive on accumulators, Parliament called for a more ambitious target Waste (COM(2005/667). The rapporteur tabled 38 (55 %) than that proposed in the common position (50 %) amendments aiming at: reinstating the existing 5 stage for recycling of batteries other than nickel-cadmium and waste hierarchy; asking the Commission to put forward lead-acid batteries. The EP also supported the introduction proposals to determine whether certain waste streams of a closed-loop for recycling of all the lead and cadmium should be classiied as secondary products materials and, if contained in waste batteries; and wished to oblige Member so, what speciications should apply to them; making use States to ensure that recycling processes achieved these of the normal legislative procedure, instead of the targets. Given the other improvements secured in the comitology procedure as proposed by the Commission, for course of the procedure and as part of an overall decisions of a political nature. agreement, the Parliament delegation was willing to accept Also on the Thematic Strategy on Prevention and recycling the Council’s position on a recycling target of 50 %, and on of waste, Parliament drafted a report (Rapporteur Hans 4 July 2006, Parliament adopted a resolution on a joint text. Blokland), which is expected to be adopted in the Committee in October 2006. It stresses that the use of the g Yanne GOOSEENS comitology procedure should be limited to decisions of a Gianpaolo MENEGHINI technical and scientiic nature; opposes a general 07/2006
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4.9.5. Noise
Legal basis and objectives — aims to gather noise exposure information in the form "4.9.1. of ‘noise maps’; — requires Member States to ensure by no later than 30 Achievements June 2007 that strategic noise maps showing the situation in the preceding calendar year are available A. General and, where relevant, approved by the competent In its Fifth Community Environmental Action Programme authorities; (1992–2000, "4.9.1.), combating noise emerged for the irst — provides that all information should be made available time as one of the basic priorities of an integrated to the public; environmental policy. The Green Paper on ‘Action against noise’ (COM(96) 540) adopted on 5 November 1996 sought — requires Member States to ensure that by no later than to develop a new approach to the problem of noise and a 18 July 2008 the competent authorities have drawn up irst step towards an integrated programme for combating action plans designed to manage, within their noise. According to the Green Paper, around 20 % of the territories, noise issues and efects, including noise population of western Europe (some 80 million people) reduction if necessary for: sufer from noise levels that experts consider unacceptable — places near major roads which have more than (exceeding 65 dB(A)) and over 50 % of the EU population is six million vehicle passages a year, major railways constantly exposed to single-source noise levels of which have more than 60 000 train passages per between 55 and 65 dB(A). This noise is caused by traic and year and major airports; by industrial and recreational activities. — agglomerations with more than 250 000 inhabitants. Economic incentives are an essential part of EU noise In January 2004 the Commission submitted a report to the abatement policy. Possible measures are: Council and the EP on existing EU measures relating to — subsidies for the purchase of quieter products; sources of environmental noise. — a legal requirement to provide information on products; C. Sectoral legislation — noise levies in accordance with the polluter-pays A series of directives has been adopted on noise abatement. principle; Noise emission levels have been established for motor — the introduction of noise licences; vehicles, motorcycles, agricultural and forestry tractors, domestic appliances, earth-moving equipment, construction — subsidies for the development of quieter products. equipment, lawnmowers and civil subsonic aircraft. In relation to air transport and airports, Directive 2002/30/ Particular attention has been paid to road and air traic, EC of the European Parliament (EP/Parliament) and of the which poses a major noise nuisance. Council on the establishment of rules and procedures with regard to the introduction of noise-related operating 1. Motor vehicles restrictions at Community airports (text with EEA relevance) The basic directive on the permissible sound level and the was published on 26 March 2002. exhaust system of motor vehicles (70/157 adapted by 1999/101) covers all motor vehicles with a maximum speed In 2005 the Commission launched a proposal for a directive of more than 25 km/h. of the EP and of the Council amending Directive 2000/14/ EC on noise emission by equipment for use outdoors The directives lay down limits for the noise level of the COM(2005) 0370. mechanical parts and exhaust systems of the vehicles concerned. The limits range from 74 dB(A) for motor cars to B. Framework directive for the assessment and 80 dB(A) for high-powered goods vehicles. This is management of exposure to environmental noise equivalent to halving noise output, i.e. two cars of the next Directive 2002/49/EC relating to the assessment and generation will together produce only as much noise as management of environmental noise: one of the previous generation. However, the marked — aims to harmonise noise indicators and assessment reduction in noise output by cars will be partly ofset by the methods for environmental noise; rise in the number of cars and the distance they travel and by the increase in powerful and heavy vehicles.
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01_2006_4661_txt_EN.indd 299 30-10-2007 14:55:21 The limit value for heavy lorries introduced by the EU in whole system, of up to 23 dB(A), by new goods train November 1992 is 80 dB(A), thus ensuring that this so- designs which optimise noise reduction. A parallel aim is to called ‘low-noise’ lorry will become the norm for road make rail freight more attractive, and hence more haulage in Europe. With efect from 1995/96, in urban competitive, by reducing life-cycle costs by 40 % from their traic 25 new lorries will together only produce the same present level and by achieving speeds of up to 160 km/h. amount of noise as a single lorry at the beginning of the One or two diferent locomotives and between three and 1980s (measured in terms of noise limit values and taking ive diferent types of wagon, geared to the products to be measurement techniques into account). Lorries which transported, will be developed within the next few years. comply with the noise limit values have been permitted to At EU level, a proposal dating back to 1984 to harmonise carry a distinguishing mark since 1994, which has made the the regulations governing noise emissions from trains was monitoring of preferential user arrangements for low-noise withdrawn by the Commission on 28 July 1993. lorries considerably easier. It is particularly important for the current ban in Austria on night travel (10 p.m. to 5 a.m.) on 5. Airborne noise emitted by household appliances all transit motorways and associated trunk roads, from Legislative harmonisation must be conined to those which low-noise lorries (limit value: 78dB(A) for lorries < requirements necessary to measure the airborne noise 150 kW and 80 dB(A) for lorries > 150kW) are exempted. emitted by household appliances and to carry out checks on the declared level. Such measures are provided by 2. Two- and three-wheeled motor vehicles: Directive 86/594/EEC. Directives 88/180/EEC and 84/538/ permissible sound level of motorcycles EEC (amended by 88/181/EEC) relate to the permissible Directive 78/1015/EEC established common limits for the sound-power level of lawnmowers. The permitted sound- sound level of motorcycles and technical requirements power level ranges between 96 dB/pW and 105 dB/pW relating to exhaust systems (construction, materials and according to the corresponding cutting width of the durability). lawnmower. For lawnmowers with a cutting width The most recent reduction lays down noise limit values of exceeding 120 cm, the sound-pressure level of airborne 75 dB(A) for vehicles of up to 80 cc, 77 dB(A) for those noise, in dB(A), measured at the operator’s position under between 80 and 175 cc and 80 dB(A) for those of more the conditions speciied in Annex Ia of Directive 88/180/ than 175 cc. EEC, must not exceed 90 dB(A). 3. Subsonic civil jet aircraft 6. Construction plant Regulation (EC) No 925/1999 applies to modiied subsonic Noise emitted by hydraulic excavators, rope-operated civil jet aircraft re-certiied as a result of their compliance excavators, dozers, loaders and excavator-loaders has long with the standards set out in Volume I, Part II, Chapter 3 of been limited by EU ds. The reduction in the noise levels of Annex 16 to the Convention on International Civil Aviation certain types of earth-moving machines was provided for (third edition July 1993). in two stages. The second stage established the permissible On 29 September 1999 the Commission presented a sound-power level at between 93 and 114 dB(A)1pW as communication on progress made in consultations with from 30 December 2001. Speciic measures for tower the US on the development of a new-generation noise cranes are provided for by Directive 87/405/EEC. EC type- standard for civil subsonic jet aeroplanes and phase-out examination certiicates shall be issued to tower cranes measures for the noisiest categories of civil subsonic jet which satisfy the following requirements: the lifting aeroplanes within Chapter 3 (COM(1999) 452). mechanism must emit less than 100 dB(A)/1 paw and the sound-pressure level at the operator’s position must not The directive on environmental impact assessment exceed 80 dB 20 µ pA from 1992. (85/337) applies to private and public-sector projects, i.e. to construction works and other interventions in nature and 7. Noise emission by equipment used outdoors landscape. For airports with a runway length of 2 100 The 1996 Commission Green Paper on Future Noise Policy metres or more, Member States must carry out an highlighted the increase in noise pollution in urban areas. assessment to ascertain and evaluate the project’s main While most external noise is caused by transport efects on the environment. The procedure provides, in equipment, noise emissions from the use of outdoor particular, for public consultation. equipment are constantly increasing. 4. Railways Directive 2000/140/EC relating to the noise emission in the The Low Noise Train development programme launched environment by equipment for use outdoors is a jointly by the German, Austrian and Italian railways aims to framework directive designed to control noise emissions by achieve a substantial reduction in noise emissions for the more than 50 types of equipment used outdoors.
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The noise emission limits laid down for certain types of With regard to air traic over residential areas near airports, equipment involve two stages, so as to enable consideration should be given to a ban on night lying, undertakings to adapt to the new rules. The emission limits landing fees graded according to noise levels and measures for stage 1 take efect two years after the entry into force of to avoid particularly noise-intensive take-of and landing the directive. More stringent limits will enter into force in manoeuvres. Parliament has called for the setting of EU stage 2 four years later. values for noise around airports and also for noise The new framework in this ield will be provided by the reduction measures to be extended to cover military directive based on Commission proposal COM(2005) 0370, subsonic jet aircraft. as described above under ‘General’. g Marcello SOSA IUDICISSA Role of the European Parliament 11/2005 Parliament has repeatedly stressed the need for further cuts in limit values and improved measurement procedures.
4.9.6 Air pollution
Legal basis and objectives materials and damage vegetation, have a detrimental "4.9.1. efect on agricultural and forestry production and cause unpleasant smells. Many of these pollutants, such as
carbon dioxide (CO2), methane, nitrogen oxides (NOx) and Achievements chloroluorocarbons (CFCs), are responsible for the A. General greenhouse efect. Some substances such as arsenic, Community activities to protect the air relate to a wide cadmium, nickel and polycyclic aromatic hydrocarbons range of problems: limiting depletion of stratospheric are human genotoxic carcinogens and there is no ozone and controlling acidiication, ground-level ozone identiiable threshold below which they do not pose a risk and other pollutants and climate change. to human health. Benzene (an aromatic hydrocarbon) is carcinogenic while ozone is a powerful oxidant that can Atmospheric pollutants, which enter the air from a wide damage the respiratory tract, causing inlammation and variety of sources, can be subdivided into three broad irritation. categories. The EU has taken important steps over the past decade, — Emissions from mobile sources (transport industry): leading to a decrease in the emissions to air and water of apart from CO2, the main emissions are nitrogen oxides a number of pollutants such as SO2 (a 50 % reduction (NOx), carbon monoxide (CO) and hydrocarbons (HC), i. since 1980), lead (a 60 % reduction since 1980), e. volatile or non-volatile organic compounds, soot phosphorous in many water catchment areas (a 30 % to particles (or PM) and ozone (O ). 3 60 % reduction since the 1980s) and to a lesser extent — Emissions from immobile sources (businesses, homes, NOx and volatile organic compounds (a 14 % reduction
farms and rubbish dumps): apart from CO2, the main since 1990). emissions are sulphur dioxide (SO ), nitrogen oxides 2 EU action has focused on establishing minimum quality (NOx), hydrocarbons (HC), soot particles, standards for ambient air and tackling the problems of acid chloroluorocarbons (CFCs) and methane. rain, ground-level ozone and reducing human exposure to
— Emissions caused by power generation: these are CO2, protect human health. Polluting emissions from large
sulphur dioxide (SO2) and soot particles. combustion plant and mobile sources have been reduced; High concentrations of these gases and pollutants arising fuel quality improved and environmental protection from them through chemical reactions in the atmosphere requirements integrated into the transport and energy or in the soil are harmful to human health, corrode various sectors.
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01_2006_4661_txt_EN.indd 301 30-10-2007 14:55:22 B. Thematic strategy on air pollution and the Clean Air 1980, while in the past 10 years passenger transport by for Europe (CAFE) programme road in the EU has gone up by 46 % and passenger The Community’s sixth environmental action programme transport by air by 67 %. calls for the development of a thematic strategy on air The main emissions caused by motor traic are nitrogen pollution with the objective to attain ‘levels of air quality oxides (NOx), hydrocarbons (HC) and carbon monoxide that do not give rise to signiicant negative impacts on, and (CO), accounting for 58 %, 50 % and 75 % respectively of all risks to, human health and the environment’. To achieve such emissions. Whilst emission levels in the economically this, a Clean Air for Europe (CAFE) programme more developed countries have increasingly stabilised, (COM(2001) 245) was launched in 2001 leading to the they are continuing to rise in the less developed countries. adoption by the Commission in September 2005 of a thematic strategy on air pollution (COM(2005) 446). Several directives have been adopted at Community level in order to limit pollution due to transport: setting maximum The objectives proposed in the strategy are to reduce by emission limits for vehicles and other sources of pollution 2020 the concentration of PM2.5 by 75 % and of ground- and introducing tax measures in the transport sector aimed level ozone by 60 %, as well as to reduce the threat to the at encouraging the consumer to act in a more environment- natural environment from both acidiication and friendly manner. Community directives establishing stricter eutrophication by 55 %, which is technically possible by standards for the emission of pollutants by motor vehicles 2020. This means cutting SO2 emissions by 82 %, NOx by have had positive results, but the progress achieved to date 60 %, volatile organic chemicals (VOCs) by 51 %, ammonia is threatened by the rising number of vehicles on the road by 27 % and primary PM2.5 by 59 % from 2000 levels. It is and vehicle use. In recent years, fuel consumption in the EU estimated that these reductions would save 1.71 million life has increased by 1.5 % a year. years by lowering exposure to PM, reduce acute mortality 1. Road vehicles: petrol and diesel engines from exposure to O3, deliver EUR 42 billion per year in health beneits, reduce environmental damage to forests, In cooperation with the oil and motor vehicle industries, lakes and streams and to biodiversity, reduce damage to the Commission has drawn up an auto-oil programme to buildings and materials, and reduce the cost of damage to reduce exhaust gas emissions. The Auto-Oil II programme agricultural crops by EUR 0.3 billion per year. (COM(2000) 626) was launched in 1997 to assess policy options for achieving air quality objectives, with a particular According to the proposed strategy, a large part of these focus on reducing road transport emissions. Estimates of reduction objectives will be delivered through improved road transport emissions carried out as part of the implementation of measures already adopted. Part of the programme suggest that emissions of the traditionally strategy will be implemented through a simpliication and regulated pollutants will fall to less than 20 % of their 1995 revision of the current legislation. Other measures will levels by 2020, while CO emissions will continue to rise at address the integration of air quality concerns into policy 2 least until 2005. The share of overall non-CO2 emissions areas such as energy, transport, agriculture, structural funds attributable to road transport will have fallen substantially and international cooperation. Further initiatives will be between 1990 and 2010 and the relative importance of taken on new vehicles and new measures may be envisaged other sectors will have risen correspondingly. for small combustion plants, ships and aircraft emissions. The new phase of CAFE — implementation of the thematic Under the auto-oil programmes, several measures have strategy on air pollution — began in September 2005. been adopted to tackle air pollution from motor vehicle emissions and address the quality of petrol and diesel fuel. At its meeting of 20 and 21 June 2006, the ENVI Committee of the European Parliament (EP/Parliament) adopted the — Lead in petrol has been banned from the market since draft report (rapporteur: Dorette Corbey) on the thematic 2000 and progressive improvements in the strategy on air pollution, which calls for a more ambitious environmental quality of unleaded petrol and diesel fuel have been required (Directive 98/70/EC). strategy with respect to targets for NOx, VOC and PM2.5 and for focusing more on measures aiming at the sources of — Emission limit values for petrol and diesel cars have pollution, especially in the shipping and the agricultural been introduced, according to the type of vehicle, sectors. This report is expected to be adopted in plenary in applicable from 2000 and 2005, and a new European autumn 2006. test cycle and permission for tax incentives by Member States to encourage compliance (Directive 98/69/EC). C. Emissions from the transport sector Emissions from the transport sector have a particular — EC approval of replacement catalytic converters and EC importance because of their rapid rate of growth: goods approval of vehicles which can run on liqueied transport by road in Europe has increased by 54 % since petroleum gas or natural gas (Directive 98/77 EC);
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— Emission limit values for diesel-powered lorries as well 2. Volatile organic compounds as limit values for heavy-duty engines fuelled by natural Council Directive 1999/13/EC on the limitation of emissions gas or liqueied petroleum gas (Directive 1999/96/EC); of volatile organic compounds (VOCs) due to the use of — Sulphur content of certain liquid fuels of less than 10 organic solvents in certain activities and installations is part mg/kg (ppm), down from the current limit value of of the overall strategy to reduce pollution. It complements 50 ppm as from 1 January 2005 and full conversion to the auto-oil programme, by combating emissions of zero sulphur fuels by 1 January 2009 (Directive 2003/17/ organic solvents from stationary commercial and industrial EC), and the entry into force of new emission limits for sources, and the 1994 directive on volatile organic EURO IV vehicles. compound (VOC) emissions resulting from the storage of petrol and its distribution chain. The requirements on the 2. Non-road mobile machinery: gaseous pollutants solvent content of paints and varnishes are established in Directive 97/68/EC, as amended by Commission Directive the paints directive (Directive 2004/42/EC). 2002/88/EC, approximates the laws of Member States with regard to emission standards and type-approval 3. Integrated pollution prevention and control (IPPC) procedures for engines intended to be itted to non-road The IPPC framework directive (96/61/EC) concerns highly mobile machinery. Directive 2004/26/EC extends the scope polluting industrial activities, as deined in Annex I (energy of Directive 97/68/EC to cover locomotives and inland industries, production and processing of metals, mineral waterway vessels. It also reinforces the emission standards industry, chemical industry and waste management). The applicable to the machinery in question, in particular as directive deines the basic obligations to be met by all the regards oxides of nitrogen and particles, and provides for industrial installations concerned, whether new or existing. means of improving the methods of testing new engines These basic obligations cover a list of measures for prior to marketing. In addition, manufacturers who comply preventing the pollution of water, air and soil by industrial with the requirements before the deadline can display a eluent and other waste. They serve as the basis for label on their engines to give them greater market visibility. drawing up operating licences or permits for industrial installations. 3. Wheeled agricultural or forestry tractors: pollutant gases The IPPC directive was amended twice in 2003: the irst Directive 2000/25/EC amending Council Directive 74/150/ amendment (2003/35/EC) reinforced public participation EEC concerns emissions from agricultural or forestry (in line with the Aarhus Convention), while the second tractors. It is particularly concerned with the deinition of (2003/87/EC) clariied the relationship between the permit type-approval procedures by type of engine intended to conditions established in accordance with the IPPC be itted to tractors and with the deinition of type- directive and the greenhouse gas emission trading scheme. approval procedures by type of vehicle from the point of The Commission has recently launched a review process of view of emission pollutants. the IPPC directive and related legislation on industrial emissions (such as the LCP directive). This review process is 4. CO2 emissions from new passenger cars expected to be concluded by the end of 2007. Decision No 1753/2000/EC established a new scheme to E. Management and quality of ambient air monitor the average speciic emissions of CO2 from new passenger cars, with the aim of measuring the efectiveness 1. The air quality framework directive and its daughter directives of the Community strategy to reduce CO2 emissions from cars. The Commission reports regularly on the efectiveness The air quality framework directive (96/62/EC) sets out the of this strategy (COM(2002) 693). basic principles of a common strategy for establishing ambient air quality objectives with a view to reducing or D. Emissions from industry preventing harmful efects on the environment and health. It 1. Pollution from large combustion plants establishes quality objectives for ambient air (outdoor air in Directive 2001/80/EC (the LCP directive) applies to the troposphere), common methods and criteria for assessing combustion plants with a rated thermal input equal to or air quality and requirements for obtaining and disseminating greater than 50 MW, irrespective of the type of fuel used. It information on air quality. It is supplemented by so-called
aims at gradually reducing the annual emissions of SO2 and ‘daughter’ directives relating to speciic pollutants. NOx from existing plants and lays down emission limit (a) Sulphur dioxide, nitrogen dioxide and nitrogen oxides, values for SO , NOx and dust in the case of new plants. 2 particulates (PM 10) and lead in ambient air Further requirements for plants below 50 MW are under consideration as part of the implementation of the The irst ‘daughter’ directive (1999/30/EC) introduces the thematic strategy on air pollution. requirements to assess concentrations of these substances
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information threshold, an alert threshold (higher than the change: carbon dioxide (CO2), methane, nitrous oxide, information threshold), target values and long-term aims hydroluorcarbons, perluorcarbons and sulphur for ozone concentration in ambient air and the provision of hexaluoride. The European Community committed itself to
adequate public information on these concentrations. achieving an overall reduction in CO2 emissions of 8 % in the period 2008–12 compared with 1990 levels. For the (d) Arsenic, cadmium, mercury, nickel and polycyclic aromatic protocol to enter force, it had to be ratiied by 55 hydrocarbons contracting parties, accounting for 55 % of total CO2 The fourth ‘daughter’ directive (2004/107/EC) establishes emissions in 1990. The protocol entered into force in target values for concentrations of these substances in the February 2005. air, deines methods and criteria for assessing concentrations and deposition levels and ensures that The Council adopted a decision on the ratiication by the adequate information on these substances is obtained and European Community of the Kyoto Protocol (Decision made available to the public. 2002/358/EC). It was agreed that Member States would endeavour to take the necessary steps with a view to In September 2005 the Commission submitted a proposal depositing their instruments of ratiication or approval for a CAFE directive (COM(2005) 447) together with the simultaneously with those of the European Community thematic strategy on air pollution. It aims to combine the and the other Member States and as far as possible not framework directive with the irst, second and third later than 1 June 2002. The EC and Member States will fulil ‘daughter’ directives, set more stringent requirements for their commitments jointly. The emission levels are set as a the removal of non-compliance, and introduce a percentage of the igures for the base year or period in the concentration cap for ine particles (PM ) and a system of 2.5 ‘Burden Sharing Agreement’. The quantiied emission electronic reporting as part of the Inspire initiative. In June limitation and reduction commitment agreed by the 2006, the ENVI Committee of the EP adopted a draft report European Community and its Member States for the on the Commission proposal seeking to revise existing purpose of determining the respective emission levels Community legislation on ambient air quality. Parliament allocated to each of them for the irst quantiied emission asked for a two-step approach with regard to the limitation and reduction commitment period 2008–18 are concentration cap for PM . In the initial stage there should 2.5 set out in Annex II. only be a target value set. In the long run the limit values (a) Monitoring mechanisms and reporting should, however, be stricter both for PM2.5 and PM10 than those proposed by the Commission. Decision 280/2004/EC of the European Parliament and of the Council, (amending Council Decisions 93/389/EEC and 2. National emission ceilings for certain atmospheric 99/296/EC) provides for a mechanism for monitoring pollutants Community greenhouse gas emissions and for Directive 2001/81/EC is part of the follow-up to the implementing the Kyoto Protocol. It enables the Commission’s communication on a strategy to combat Community and the Member States to improve acidiication (COM(97) 88 inal), which sought to establish, compliance with obligations in relation to monitoring, for the irst time, national emission ceilings for four evaluation and the preparation of reports laid down in the pollutants — sulphur dioxide (SO ), nitrogen oxide (NOx), 2 UNFCCC and the Kyoto Protocol. In addition, the volatile organic compounds (VOC) and ammonia (NH ) — 2 Community is considering enhancing its monitoring
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capabilities, notably through information technologies and the impact of aviation on climate change. The satellite observation systems. communication recommends that aviation emissions 2. Greenhouse gas emissions trading scheme should be included in the EU emissions trading scheme as part of a comprehensive approach which includes research (a) A scheme for greenhouse gas emission allowance trading into cleaner air transport, better air traic management and within the Community the removal of legal barriers to taxing aircraft fuel. It was established by Directive 2003/87/EC. It aims to create an instrument of environmental protection to reduce On 4 July 2006, Parliament adopted an own-initiative report emissions of greenhouse gases in a cost-efective manner, drafted by Caroline Lucas (INI/2005/2249). Parliament in order to allow the Union to meet its obligations under advocates an aviation scheme as well as its inclusion in the the UNFCCC and the Kyoto Protocol. While seeking an EU emissions trading scheme (ETS). overall reduction in greenhouse emissions, it also aims to 3. European Climate Change Programme ensure the proper functioning of the internal market and The European Climate Change Programme (ECCP) was prevent any distortions of competition which might result established in June 2000 on the basis of two from the establishment of separate national trading communications (COM(2000) 88 and COM(2001) 580) to schemes. The irst phase of the proposed scheme covers help identify the most environment-friendly and cost- the period between 2005 and 2007. It proceeds the Kyoto efective EU measures enabling the EU to meet its targets Protocol’s irst commitment period 2008–12, which under the Kyoto Protocol. With current measures, it is corresponds to the second phase of the Community estimated the EU will achieve an overall reduction of 4.1 % scheme. The EU emissions trading system started in by 2008–12. More work is needed to reach the Kyoto January 2005 and covers in a irst phase CO2 emissions from Protocol targets and a second ECCP was launched in large industrial and energy activities. These are estimated to October 2005. account for 46 % of the EU’s CO2 emissions in 2010, and about 4 000 to 5 000 installations across the EU will be 4. The EU’s post-2012 strategy afected. Each installation covered by the directive will The Commission has issued a communication on ‘Winning apply to the competent authority in its Member State for a the battle against global climate change’ (COM(2005) 35), permit allowing it to emit greenhouse gases. The permit which recommends a number of elements to be included procedure will be fully coordinated with the procedure in the EU’s future climate change strategies and proposals under Directive 96/61/EC on integrated pollution to prepare the EU’s position for future international prevention and control (IPPC) in order to avoid unnecessary negotiations. A Parliament resolution on winning the battle bureaucracy. On the basis of the permits, Member States against climate change was adopted on 16 November will allocate emission allowances to each installation on an 2005. annual basis. On 22 December 2005, the Commission adopted a communication entitled ‘Further guidance on Role of the European Parliament allocation plans for the 2008 to 2012 trading period of the The EP has played a decisive role in the formulation of a EU emission trading scheme’ (COM(2005) 703). progressive environmental policy to combat air pollution (b) Greenhouse gas emission trading in respect of the Kyoto and played a leading and active role in the long discussions Protocol’s project mechanisms between Parliament, the Commission and the Council The so-called ‘linking directive’ (2004/101/EC) links the EU concerning the EU’s policy on climate change and on emissions trading system with the other Kyoto lexible emissions trading. In the discussion on including aviation in mechanisms: joint implementation (JI) and the clean the EU emissions trading scheme, Parliament stressed that development mechanisms (CDM). This directive allows the policy instruments must be chosen in such a way as to European companies to carry out emissions-curbing ensure that the reduction of greenhouse gas emissions was projects around the world and convert the credits earned as high as possible while the distortion of competition into emissions allowances under the European Union between Europe-based air carriers and carriers from emissions trading scheme. This ‘linking’ increases the outside the EU is minimised and the unfair competition diversity of compliance options within the Community between the air transport sector and other transport scheme, thereby leading to a reduction in compliance sectors within the EU is reduced. Another issue addressed costs for installations in the scheme. was the worldwide introduction of kerosene taxes. Parliament underlined that the tax exemptions on air (c) Climate change and aviation transport led to very unfair competition between aviation In September 2005 the Commission adopted a and other transport sectors such as the railway sector. communication (COM(2005) 459) outlining plans to reduce Parliament went on to urge the Commission to promote
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01_2006_4661_txt_EN.indd 305 30-10-2007 14:55:22 the introduction of bio-fuels for aviation as a contribution strategic partnership with countries like China, South Africa, to reducing the impact on climate change. With regard to Brazil and India to help them develop sustainable energy the seventh framework programme, research and strategies; vigorously promoting research and innovation development relating to clean engine technologies and for sustainable energy technologies and removing alternative fuels must be assigned priority. ‘perverse’ incentives such as fossil fuel subsidies; using Parliament proposed the introduction of a separate legislation to stimulate greater energy eiciency; and dedicated scheme for aviation emissions, recognising that, encouraging citizens to become directly involved to a due to the lack of binding commitments for international much greater extent in mitigation eforts, inter alia through aviation emissions under the UNFCCC and the Kyoto the provision of detailed information about the carbon Protocol, the aviation sector would be unable to actually sell content of products and services. The report said that a into the ETS. If aviation were to be eventually incorporated future regime should be based on ‘common but into the wider ETS, there should at least be a pilot phase of a diferentiated responsibilities aiming at contraction and separate scheme covering the period 2008–12. Special convergence, on continued and progressively greater conditions should be applied to ensure it does not distort emission reductions and the involvement of more the market to the detriment of less protected sectors: a cap countries in the reduction eforts’. Any targets for emission on the number of emission rights it is permitted to buy from cuts should be based on recent science and aiming to not the market, and a requirement to make a proportion of the exceed a global average temperature increase of 2 °C with necessary emissions reductions without trading, before reasonable certainty. Cost-efectiveness should be a being allowed to buy permits. characteristic of all measures considered and a long-term goal should therefore be to develop a global carbon In the report on winning the battle against climate change, market, based on cap and trade. Parliament supported the Parliament stressed that the EU strategy on climate change introduction of ecotaxes at Community level and should be based on a seven-pronged approach, involving: underlined that efective climate change mitigation would building on key Kyoto elements (i.e. binding greenhouse require a major transformation of the energy and gas emission targets, a global cap-and-trade system, and transportation systems. lexible mechanisms); undertaking strong emissions reductions at home (starting with 20 to 30 % domestic reductions by 2020); adopting a proactive approach to g Yanne GOOSEENS Gianpaolo MENEGHINI engage other main actors, notably the USA; developing a 07/2006
4.9.7 Water protection and management
Legal basis and objectives December 2003, Member States had to identify all the river "4.9.1. basins lying within their national territory and assign them to individual river basin districts. River basins covering the territory of more than one Member State are assigned to an Achievements international river basin district. A. Framework directive in the ield of water policy By 2007, Member States must complete an analysis of the (FWD) characteristics of each river basin district, a review of the The objective of the framework directive (2000/60/EC) is to impact of human activity on the water, an economic establish an EU framework for the protection of inland analysis of water use and a register of areas requiring surface waters, transitional waters, coastal waters and special protection. All bodies of water used for the groundwater, in order to prevent and reduce pollution, abstraction of water intended for human consumption, promote sustainable water use, protect the aquatic providing more than 10 m³ a day as an average or serving environment, improve the status of aquatic ecosystems more than 50 persons, must be identiied. Nine years after and mitigate the efects of loods and droughts. By the date of entry into force of the directive, a management
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plan and programme of measures must be produced for 5. Helsinki Convention on the protection of the Baltic each river basin district. The objective of the framework Sea directive is to be achieved no later than 15 years after it This convention, signed in March 1974 by all States enters into force, although this deadline may be extended bordering the Baltic, is intended to abate pollution of the or relaxed under certain conditions. Baltic Sea area caused by discharges through rivers, By 2010, Member States must ensure that water pricing estuaries, outfalls and pipelines, dumping and normal policies provide adequate incentives for users to use water operations of vessels as well as through airborne pollutants. resources eiciently and that the various economic sectors The convention entered into force in 1980. contribute to the recovery of the costs of water services, 6. Paris Convention on the protection of the marine including those relating to the environment and resources. environment of the north-east Atlantic By 2012 at the latest and every six years thereafter, the This convention was signed in Paris on 22 September 1992. Commission will publish a report on the implementation of The parties to the convention must observe two principles: the directive and will convene, where appropriate, a the precautionary principle and the polluter-pays principle. conference of interested parties on EU water policy, involving Member States, representatives from competent C. Thematic strategy on the conservation authorities, the European Parliament (EP), NGOs, social and and protection of the marine environment economic partners, consumer bodies, academics and other 1. Measures for marine pollution experts. Decision No 2455/2001/EC added Annex X to the On 24 October 2005, the European Commission adopted a framework directive. This ranks in order of priority the thematic strategy on the conservation and protection of substances for which quality standards and emission the marine environment, which aims to achieve a good control measures will be set. biological, chemical and physical status in the marine environment by 2021, and which will constitute the B. EU international agreements environmental pillar of the future maritime strategy. The 1. Helsinki Convention: transboundary watercourses identiied principal threats to the marine environment are and international lakes overishing, the discharge of pollution from land-based Signed on behalf of the EU in Helsinki in 1992. sources, oil spills, discharges from ofshore oil and gas 2. Convention on the protection of the Rhine exploration, pollution from ship dismantling, climate The EU signed the new convention in April 1999 in Berne. change, nutrient enrichment and associated algal blooms, the illegal discharges of radio-nuclides, and noise pollution. 3. Danube–Black Sea region The proposed directive (COM(2005) 505) deines common Environmental cooperation in the Danube–Black Sea objectives and principles at EU level, and European marine region (COM(2001) 615): with enlargement, many of the regions will be established as a basic unit for managing the Danube countries will become members of the EU, and the marine environment. Member States will be expected to Black Sea will ultimately become a coastal area of the EU. As develop a strategy for each of their marine regions and to the environmental situation in the region is extremely actively cooperate with one another. critical, a strategy is required to address it. 2. Accidental marine pollution 4. Barcelona Convention on the protection EU action on accidental marine pollution has been based of the Mediterranean on the following three elements since 1978: action Today, 20 Mediterranean coastal States and the EU are the programmes on the control and reduction of pollution contracting parties to the Barcelona Convention, signed in caused by hydrocarbons discharged at sea, EU information 1976 by all Member States. In 1995 amendments to the systems, and task forces, composed of experts from the convention established the precautionary principle and set Member States, who are called on to provide practical as a new and ultimate target the full elimination of assistance in the event of accidental marine pollution. pollution sources. The most signiicant aspect of the Decision No 2850/2000/EC is designed to improve these Barcelona Convention and the Mediterranean action plan three elements and integrate them into a single framework are its six protocols, dealing, for example, with pollution for cooperation, covering the period 1 January 2000 to 31 from ships and aircraft, pollution from land-based sources, December 2006. pollution by transboundary movements of hazardous wastes and their disposal, and Mediterranean specially 3. Compensation for oil pollution damage occurring protected areas. When a suicient number of Member in European waters States have ratiied the convention, these protocols will A compensation fund for oil pollution in European waters become binding in international law. (the COPE Fund) is being set up (COM(2000) 802) to
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01_2006_4661_txt_EN.indd 307 30-10-2007 14:55:23 provide compensation to any person entitled to pollution from agricultural sources. The main issue compensation for pollution damage but who has been addressed during the conciliation procedure, was the unable to obtain full compensation under the international severity of the health standards that bathing sites must regime due to insuicient compensation limits. Member attain to comply with the directive. States must lay down a system of inancial penalties to be 3. Surface water imposed on any person involved in the transport of oil by The European Commission adopted a proposal for a new sea convicted of grossly negligent behaviour. directive to protect surface water from pollution on 17 July D. Water quality legislation 2006 (COM(2006) 397 inal). The proposed directive, which 1. Intended for human consumption is required to support the water framework directive, will As groundwater supplies 75 % of the EU’s drinking water, set limits on concentrations in surface waters of 41 pollution from industry, waste dumps and nitrates from the dangerous chemical substances (including 33 priority agricultural sector is a serious health risk. It is estimated that substances and eight other pollutants) that pose a 800 000 people in France, 850 000 in the UK and 2.5 million particular risk to animal and plant life in the aquatic in Germany are drinking water with nitrate concentrations environment and to human health. The proposal will above the permitted EU limit (Directive 75/440/EEC on the contribute to the Commission’s better regulation initiative quality required of surface water intended for the by replacing ive older directives, allowing their repeal. abstraction of drinking water, as last amended by Directive This proposal is part of the new strategy against chemical 91/692/EEC). Following Commission proposals for the pollution of waters introduced by the water framework extensive modiication of the legislation on the quality of directive. The proposal is accompanied by a water intended for human consumption, Directive 98/83/ communication (COM(2006) 398 inal) which elaborates on EC adapted Directive 80/778/EEC to take account of this approach and an impact assessment which illustrates scientiic and technological progress and reduced the limit the choices that the Commission made. value on lead from 50 µgrams/litre to 10 µgrams/litre. It 4. Quality required of shellish waters and water was claimed that this would have serious inancial to support ish life implications because of the need to replace pipes. Speciic measures are intended for the protection and/or Given that many of the pollutants washed out of the soil improvement of the quality of freshwaters which support over the past decade have not yet reached the water table, certain ish species and shellish. These are Directive it will take between 25 and 50 years for groundwater nitrate 79/923/EEC on the quality required of shellish waters and levels in the watersheds of the Netherlands, Belgium, Directive 78/659/EEC on the quality of freshwaters needing Denmark and Germany to fall to an acceptable igure in protection or improvement in order to support ish life. On accordance with the drinking water directive, despite 12 May 2006, in accordance with the EU’s policy to simplify recent cuts in the use of fertilisers in some Member States. legislation, the Commission has proposed a codiication of 2. Bathing water Directive 79/923/EEC and its subsequent amendments into The bathing water directive (76/160/EEC, as last amended a single text (COM(2006) 205). by 91/692/EEC) concerns the quality of bathing water (with 5. Urban wastewater treatment the exception of water intended for therapeutic purposes Directive 91/271 (as amended by 98/15/EC) concerns and water used in swimming pools) and lays down urban wastewater treatment. Aid under the Structural minimum quality criteria (physical, chemical and Funds and the Cohesion Fund may be allocated for the microbiological parameters). Protection of bathing waters investment required to comply with the directive. The has been one of the most successful elements of EU water Commission also intends to increase its support to small policy, resulting in unprecedented public awareness. On 15 and medium-sized agglomerations afected by the February 2006, the Commission adopted a new bathing deadline of 31 December 2005 as well as to the candidate water directive (2006/7/EC). This directive aims to enhance countries, for which the implementation of the directive public health and environment protection by laying down represents a major challenge. provisions for the monitoring and classiication (in four categories) of bathing water. It also provides for extensive E. Discharges of substances public information and participation (in line with the 1. Nitrates Aarhus Convention) as well as for comprehensive and The protection of waters against pollution caused by modern management measures. The new directive will nitrates from agricultural sources is laid down by Directive complement the water framework directive as well as the 91/676/EEC. In its most recent report (COM(2002) 407), the directives on urban wastewater treatment and on nitrates Commission noted that monitoring networks indicate that
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over 20 % of groundwater in the EU and between 30 % and quality objectives for the discharge of cadmium, 40 % of lakes and rivers are showing excessive nitrate hexachlorocyclohexane (HCH) and mercury. A directive on concentrations. Nitrogen from agricultural sources reduction and eventual elimination of pollution caused by accounts for between 50 % and 80 % of the nitrates waste from the titanium dioxide industry (89/428/EEC) was entering European water. Although it will take some years adopted in June 1989. for the full impact of the directive be felt, positive results Articles 22 and 16 of the water framework directive set out are already starting to be seen in some regions. the transitional provisions for integrating the existing 2. Directive on the protection of groundwater directive on discharges of certain dangerous substances against pollution (76/464/EEC) and its supplementary directives. On 17 July Rules to protect against groundwater pollution have been 2006, the Commission adopted a proposal (COM(2006) 397 in place since the adoption of Directive 80/68/EEC. This inal) for a new directive on environmental quality directive should be repealed in 2013, after which the standards in the ield of water policy, amending the water protection regime should be continued through the water framework directive (2000/60/EC) by establishing a list of framework directive (WFD) and the present groundwater priority substances. This list contains 33 priority substances daughter directive (required under Article 17 of the WFD). and eight other pollutants. The emission reduction Article 17 of the directive provides for the adoption of programmes, as mentioned in the old directive (76/464/ speciic criteria for the assessment of good chemical status EEC), will still be in place until 2013. and the identiication of signiicant and sustained upward trends and for the deinition of starting points for trend Role of the European Parliament reversals. Beyond the principles set out in Article 17, the The EP has frequently taken the initiative in the ield of WFD also lays down fundamental requirements for water protection. In addition to the situation in general, it is groundwater protection: speciic environmental aims concerned with the serious environmental damage caused (Article 4), monitoring of the state of groundwater (Article by oil spills from ships. In January 2000, following the oil 8), prohibition of direct discharge in the context of a slick disaster caused by the wreck of the Erika, the EP called planned programme of measures (Article 11), and special for a sustainable, long-term European transport policy to regulations for ‘water bodies for the withdrawal of drinking be implemented to prevent the risk of any further oil water’ (Article 7). On 13 June 2006, Parliament adopted pollution disasters. It welcomed the initiative seeking to set second reading on the proposal for a directive on up an EU cooperation framework in the ield of accidental groundwaters (COM(2003) 550) which sought to improve marine pollution (COM(1998) 769), and insisted that this sampling methodologies, tightening up the wording of the decision should be taken as quickly as possible in order to legislation, closing loopholes to prevent the directive being create the optimum conditions for managing crises such as undermined. that caused by the Erika. The second semester of 2006 will be very active with Concerning the framework directive on water policy, the EP respect to policy development: the conciliation process urged an efective, coherent, integrated policy on water, (expected to start in early September) of the groundwater which would take account of the vulnerability of aquatic directive should enable its adoption before the end of the ecosystems near coasts and estuaries. The EP set four year. objectives: coordination of Member State initiatives, F. Dangerous substances charges for water use, a programme of measures for EU legislation has introduced a system of strict limit values Member States, and exemptions. for dangerous substances discharged into the aquatic The EP is expected to adopt a irst reading on the thematic environment by industrial plants, while at the same time strategy for the conservation and protection of the marine leaving Member States free to choose the system of quality environment and on the marine strategy directive by the objectives, with the corresponding obligation to show that end of 2006. Parliament calls for a directive with clear, these objectives are being met. The ‘basic directive’ on measurable targets to be achieved within shorter deadlines discharges of certain dangerous substances (76/464/EEC) than in the proposal, and introduces the obligation of the contained a blacklist of 132 substances declared dangerous establishment of ‘marine protected areas’ in EU legislation. by virtue of their toxicity and bio-accumulation. It was supplemented by Directive 80/68/EC on the protection of g Yanne GOOSEENS groundwater against pollution caused by certain Gianpaolo MENEGHINI dangerous substances. Pursuant to these directives, speciic 07/2006 directives were introduced prescribing limit values and
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Legal basis and objectives European ecological network known as ‘Natura 2000’. The "4.9.1. network comprises ‘special conservation areas’ designated by Member States in accordance with the directive, and special protection areas classiied pursuant to Directive Achievements 79/409/EEC (conservation of wild birds). The habitat A. General directive aims principally to promote the conservation of The EU and its Member States have played an important biological diversity while taking account of economic, international role in seeking solutions to global problems social, cultural and regional requirements. such as climate change and the destruction of the tropical 2. International conventions for the protection rainforests. The United Nations Conference on the of fauna and lora Environment and Development (UNCED), held in Rio de The EU is a party to the following international conventions, Janeiro in June 1992, was of major importance for among others: environmental policy. It ended with the adoption of the Framework Convention on Climate Change, the Biological — the Bonn Convention of 23 June 1979 on the protection Diversity Convention, both of which are new treaties in of migratory species of wild fauna; international law, the Rio Declaration, a statement of forest — the Berne Convention on the protection of European principles and the ‘Agenda 21’ programme. At the wildlife and natural habitats; Gothenburg summit in 2001, the EU Member States agreed — the Washington Convention (CITES) of 3 March 1973 on to halt biodiversity loss in the EU by 2010 and to restore international trade in endangered species of wild fauna habitats and natural ecosystems. At the Johannesburg and lora; and World Summit on Sustainable Development, in 2002, over 100 world leaders agreed to ‘signiicantly reduce the rate of — the Rio de Janeiro Convention on biological diversity. biodiversity loss globally by 2010’. For many years there has been a substantial loss of biological diversity due to human activities (pollution, B. Biodiversity action plans deforestation, etc.). The UNEP estimates that up to 24 % of In 2002 the Council adopted a Commission species belonging to groups such as butterlies, birds and communication (COM(2001) 162) containing biodiversity mammals have completely disappeared from the territory action plans, each covering individual areas: conservation of certain European countries. of natural resources, agriculture, isheries, and development and economic cooperation. It outlined the steps which it The convention on biological diversity was signed by the considered necessary in each area and identiied indicators EU and all the Member States at the United Nations for evaluating their efectiveness, some of which already Conference on environment and development in Rio de exist; others have yet to be developed. The main objectives Janeiro from 3 to 14 June 1992 anticipating, preventing and of these action plans are to improve or maintain the attacking the causes of signiicant reduction or loss of biodiversity status and prevent further biodiversity loss. biological diversity at source. In May 2006, the Commission adopted a communication 3. Fauna and lora (COM(2006) 216) entitled ‘Halting the loss of biodiversity by The basic regulation ((EC) No 338/97) on the protection of 2010 — and beyond — Sustaining ecosystem services for species of wild fauna and lora by regulating trade therein, human well-being’, which provides an EU action plan with applies in compliance with the objectives, principles and concrete measures and which outlines the responsibilities provisions of the convention on international trade in of EU institutions and Member States. endangered species of wild fauna and lora (CITES). The species covered by the regulation are listed in four annexes. C. Sectoral action Other directives concerning fauna and lora protection are: 1. Conservation of natural habitats and of wild fauna and lora — Directive 1999/22/EC which sets minimum standards for Directive 92/43/EEC (the habitat directive) on the housing and caring for animals in zoos and reinforces conservation of natural habitats and of wild fauna and lora the role of zoos in conserving biodiversity while (as amended by Directive 97/62/EC) established a retaining a role in education and scientiic research;
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— Directive 86/609/EEC, adopted by the Council in Regulations (EEC) No 3528/86 and (EEC) No 2158/92 on the November 1986 following an EP resolution on limiting protection of the EU’s forests against atmospheric pollution animal experiments and on the protection of laboratory and ire respectively, which expired in 2002, have been animals, in which it called for a limitation on animal integrated into the forest focus regulation ((EC) No experiments if similar results could be obtained by 2152/2003). other methods and if the results were stored in a central 5. Genetically modiied organisms European data bank. The main objective of the basic directive (90/219/EEC) was Acts concerning marine fauna are: to lay down common measures for the contained use of — Regulation (EEC) No 348/81 on common rules for genetically modiied microorganisms (GMOs) for the imports of whale or other cetacean products, restricting purposes of protecting human health and the imports into the EU of cetacean products; environment. — Decision 1999/337/EC on the signature by the EU of the Member States are required to regulate the contained use agreement on the International Dolphin Conservation of genetically modiied microorganisms in order to Programme, to help reduce incidental dolphin mortality minimise their potential negative efects on human health during tuna ishing. and the environment, as microorganisms released in the environment of one Member State in the course of their The Council adopted Regulation (EEC) No 3254/91 banning contained use may spread into other Member States. the use of leghold traps in the EU and the import into the EU of pelts and manufactured goods of certain wild species The directive classiies genetically modiied microorganisms originating in countries which allow leghold traps or into two groups according to the level of hazard. trapping methods which do not meet international Directive 2001/18/EC introduced a new regulatory system, humane trapping standards. However, the Commission more eicient and transparent than that established by failed to come to an agreement, as required in the Directive 90/220/EEC, on the deliberate release into the regulation, on humane trapping methods with the environment of genetically modiied organisms. In countries where leghold traps are used (Canada and addition, in 2001, the Council adopted Decision 2001/204/ Russia). In its resolution of 21 February 1997 the EP severely EC supplementing Directive 90/219/EEC as regards the criticised the Commission and, in agreement with the criteria for establishing the safety, for human health and the Council of Environment Ministers, called for a ban to be environment, of types of genetically modiied introduced not later than 31 March 1997 on imports of the microorganisms. skins of animals caught with leghold traps. Regulation (EC) No 1829/2003 lays down procedures for 4. Forests the authorisation, supervision and labelling of genetically There are several measures aimed at the protection of forests: modiied food and feed and aims to guarantee a high level — an EU scheme to protect forests against ire; of protection for human life and health, animal health, the environment and consumers’ interests while ensuring that — an EU scheme to protect forests against atmospheric the internal market functions properly. It also establishes pollution by fostering the monitoring and study of transparent procedures to assess, authorise and monitor forest ecosystems; genetically modiied food and feed and a system for the — measures to promote the conservation and sustainable labelling of genetically modiied food and feed. Regulation management of tropical forests and other forests in (EC) No 1830/2003 broadens the concept and includes all developing countries; types of foodstufs containing or produced from GMOs (e.g. proteins), additives and lavourings for human — establishment of a European forestry information and consumption, and GMO animal feed. communication system (EFICS) to set up a system to collect, coordinate, standardise, process and disseminate information concerning the forestry sector Role of the European Parliament and its development. The European Parliament (Parliament) has always played a The Council adopted Regulation (EC) No 3062/95 on decisive part in establishing EU systems concerning the operations to promote tropical rainforests, intended to protection of nature and biodiversity. On 16 March 2006, preserve the biological diversity of tropical forests and Parliament adopted a resolution on preparations for the ecosystems by making inancial and technical aid available COP–MOP meetings on biological diversity and bio-safety to the developing countries concerned, and by securing in Curitiba, Brazil. Parliament was deeply concerned at the the active participation of local people. continued loss of biodiversity and at the EU’s ever
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01_2006_4661_txt_EN.indd 311 30-10-2007 14:55:24 increasing ecological footprint, which extended the impact Florenz of the ENVI Committee underlined the need to take on biodiversity well beyond the borders of the EU. the biodiversity debate beyond ‘green circles’ and include Parliament pointed out the direct link between the debate with industry, farmers and regions. conservation of biological diversity and the provision of ecosystem services, such as food production, water g Yanne GOOSEENS puriication, nutrient circulation and climate regulation. Gianpaolo MENEGHINI During the ‘Biodiversity on the political decision table’ 09/2006 debate of the EU’s Green Week, Chairman Karl-Heinz
4.9.9 Industrial risks: dangerous substances and technologies
Legal basis and objectives These rules apply to all chemical substances marketed in "4.9.1. the EU for the irst time after 10 September 1981. The directive also provides for the classiication and labelling of existing chemical substances. All substances, which were Achievements on the market between 1 January 1971 and 18 September A. Dangerous substances 1981 are listed in the European inventory of existing 1. Classiication and labelling commercial chemical substances (Einecs). This unique Before an environmental policy had even been deined, in inventory lists more than 100 000 chemical substances. To 1967 the Council adopted Directive 67/548/EEC on the date, 2 500 of these substances have been shown to be classiication, packaging and labelling of dangerous dangerous and classiied and labelled accordingly. Of the substances, last amended by Directive 98/98/EC. These remaining substances, a further 20 000 are probably also measures aimed to achieve the following objectives: dangerous. However, analysis and assessment of all substances will probably take a few more years. — to guarantee adequate protection for humans and the environment against the potential risks of chemical The aim of Regulation (EEC) No 793/93 on the evaluation substances; and control of the risks of existing substances is to permit the systematic evaluation at EU level of the risks posed by — to introduce a uniform notiication procedure for new the substances listed in the Einecs (Regulation (EC) No chemical substances and provisions on packaging and 1488/94 established the appropriate principles for such an temporary labelling for dangerous substances; evaluation.) — to introduce an environmental hazard mark; Directive 94/48/EC, which emerged from the 1990–94 — to reduce as far as possible the number of experiments action plan and the ‘Europe against cancer’ programme, on animals. aims to restrict the marketing and use of carcinogenic and mutagenic substances and those causing birth defects, and The directive creates a single ‘gateway’ through which all of certain aliphatic chlorinated hydrocarbons and coal-tar new chemical substances must pass before entering the EU oils. market. It obliges manufacturers and importers to label chemical substances with information indicating the 2. Restrictions on use quantities manufactured, uses, safety precautions, the The EU has restricted the use of other dangerous results of toxicological and environmental pollution tests substances and preparations by Directive 76/769/EEC, as and the possibilities of ‘neutralising’ the substance. More last amended for the 29th time by Directive 2005/90/EC. stringent tests are necessary for substances for which (a) PCBs and PCTs production igures exceed 100 tonnes per year or a total of Polychlorinated biphenyls (PCBs) and terphenyls (PCTs), 500 tonnes and for substances for which marketing igures used as components in electrical transformers, can turn exceed 1 000 tonnes per year or a total of 5 000 tonnes.
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into dioxin if exposed to ire (as at Seveso). Directive 96/59/ pesticides (COM(2006) 372) and a proposal for a directive EC on the elimination of PCBs and PCTs aims to harmonise establishing a framework for Community action to achieve national rules on the controlled disposal of PCBs, a sustainable use of pesticides (COM(2006) 373). decontamination or disposal of equipment containing (e) Biocide products on the market PCBs and/or the disposal of used PCBs, in order to eliminate Directive 98/8/EC established a regulatory framework for them completely. placing biocides on the market while ensuring a high level (b) PCP of protection for man and the environment. These Directive 91/173/EEC restricted the use of substances are authorised only if they appear on a positive pentachlorophenol (PCP) since this substance, which is list. Pursuant to the mutual recognition principle, a used in wood preservatives among other things, is substance authorised in one Member State may be used considered to be a carcinogen. In a judgment of the Court throughout the EU. of Justice, the Federal Republic of Germany, which had set (f) Detergents a limit value for PCP of 0.01 % before this directive was Regulation (EC) No 648/2004 of the EP and of the Council adopted, was forbidden — at the request of France — to on detergents seeks to achieve these objectives by set a more stringent national limit value than that modernising the directives that lay down rules for the established in the directive, after the Commission had biodegradability of surfactants used in detergents and by earlier approved an exemption pursuant to Article 100(a)(4) incorporating and expanding labelling rules contained in of the Treaty. Commission Recommendation 89/542/EEC. Modernisation (c) Asbestos is provided by new biodegradability tests which will The ifth amendment to Directive 76/769/EEC deined provide an enhanced level of protection to the aquatic asbestos as a dangerous substance within the meaning of compartment. In addition, the scope of the tests is the original directive. Directives 91/382/EEC and 2003/18/ extended to all classes of surfactant, thereby including the EC, amending Council Directive 83/477/EEC, intend to 10 % of surfactants that escape current legislation. As protect workers against the dangers of asbestos. The main regards labelling, rules are extended to include fragrance point of Directive 2003/18/EC is the introduction of a single ingredients that could cause allergies, and manufacturers limit value (of a maximum airborne concentration of 0.1 are obliged to disclose a full list of ingredients to medical ibres per cm3 as an 8-hour time-weighted average) for the practitioners treating patients sufering from allergies. exposure of workers instead of the two years in the original By 8 April 2007 the Commission will evaluate, submit a directive. This directive applies to both the maritime and air report on and, where justiied, present a legislative proposal transport sectors, which was not the case under the on the use of phosphates with a view to their gradual original directive. phase-out or restriction to speciic applications. Directives 91/659/EEC and 1999/77/EC, adapting Annex I to By 8 April 2009 the Commission will carry out a review of Directive 76/769/EEC, aim to restrict still further its the application of Regulation (EC) No 648/2004, paying marketing and use. particular regard to the biodegradability of surfactants, and (d) Pesticides will evaluate, submit a report on and, where justiied, Two measures apply to plant protection products: a present legislative proposals relating to: European Parliament (EP) and Council regulation on — anaerobic biodegradation; and maximum residue levels of pesticides in products of plant and animal origin adopted in April 2004, and Directive — the biodegradation of main non-surfactant organic 79/117/EEC, concerning the harmonisation of legislation, detergent ingredients. which is intended to prohibit the sale and use of plant No later than 8 October 2005, Member States had to adopt protection products containing certain active substances. appropriate legal or administrative measures in order to Directive 91/414/EEC on the placing of plant protection deal with any infringement of the regulation and products on the market (as last amended by Directive dissuasive, efective and proportionate sanctions for any 99/1/EC) aims to create uniform conditions for the such infringement. authorisation of pesticides and to establish an authorisation procedure. It complements provisions on classiication, B. The risk of major accidents associated with certain packaging and labelling. On 12 July 2006, the Commission industrial processes adopted a proposal (COM(2006) 388) for a regulation to 1. Major accidents: Seveso directives replace this directive. Complementarily, the Commission After the accident at Seveso, the EU took steps to prevent adopted a thematic strategy on the sustainable use of major accidents and to limit their consequences.
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01_2006_4661_txt_EN.indd 313 30-10-2007 14:55:24 Directive 82/501/EEC, updated in 1987, imposes the same on human health and the environment, the Commission obligation on manufacturers in all Member States to inform considers that a strategy must be developed to guarantee the authorities about substances, plants and risks of major the protection of human health and the environment in a accidents (excepting nuclear installations). It requires sustainable development context. Member States to inform persons likely to be afected by a The White Paper refers to four current EU legal instruments major accident. The Commission maintains iles containing concerning chemicals: on the marketing and use of certain an account of major accidents, including an analysis of their dangerous substances and preparations; on the causes and the measures taken in response. classiication, packaging and labelling of dangerous Directive 88/610/EEC extended the original directive’s substances; on the classiication, packaging and labelling of scope to include the storage of dangerous chemical dangerous preparations; and on the evaluation and control products, whether packaged or not, at any site. The of the risks of existing substances. The objectives are in line provisions on informing the public have also been made with the overriding goal of sustainable development and more stringent; details are given of the minimum seek to make the chemical industry accept more information which must be made available, for example responsibility while respecting the precautionary principle the nature of the risk to the public and the environment, and safeguarding the single market and the measures to be taken in the event of an accident, existing competitiveness of European industry. emergency plans, and provisions on access to further The EP adopted on irst reading in November 2005 two information. draft reports on the Commission proposal on the new EU The Seveso II directive (96/82/EC) replaced the original regulatory framework for the registration, evaluation and Seveso directive (82/501/EEC). It revised and extended the authorisation of chemical substances (REACH) and on scope of the directive, introduced new requirements setting up a European Chemicals Agency (COM(2003) 644). relating to safety management systems, emergency On 27 June 2006, the Council reached a common position. planning and land-use planning and tightened up the The Commission expects the inal adoption of the proposal provisions on inspections to be carried out by Member by 2007. States. The directive constitutes the instrument for 3. Test on chemical substances transposing into law the EU’s obligations under the Directive 2004/10/EC (amending and repealing Directive Convention on the trans-boundary efects of industrial 87/18/EEC) aims to harmonise laws, regulations and accidents of the United Nations Economic Commission for administrative provisions relating to the application of the Europe. principles of good laboratory practice and the veriication The Seveso II directive was amended by Directive of their applications for tests on chemical substances. 2003/105/EC. In view of recent industrial accidents (the Directive 2004/9/EC amends and repeals Directive 88/320/ Netherlands, France and Romania), the amended directive EEC on the inspection and veriication of good laboratory provides for an obligation on industrial operators to put practice. into efect safety management systems, including a detailed risk assessment using possible accident scenarios. C. Biotechnology In 1990 the Council adopted Directives 90/219/EEC and 2. Chemical products 90/220/EEC (both amended in 1994) on, respectively, the The objective of the White Paper COM(2001) 88 is to contained use of genetically modiied microorganisms and develop a strategy for a future chemicals policy promoting the deliberate release into the environment of genetically sustainable development. Although EU legislation already modiied organisms. Measures to control the contained use prohibits some harmful chemicals (asbestos, for example), of genetically modiied microorganisms (GMOs) (e.g. in there are gaps with regard to existing chemical substances. research and development) have been drawn up on the There is a lack of information on the efects of many basis of the irst directive. These include a notiication existing substances placed on the market prior to 1981, system, the implementation of speciic containment when the requirement for the testing and notiication of measures depending on the type of microorganism and the new substances was introduced. Such substances account nature of the activity and measures relating to accidents for approximately 99 % of the total volume of substances and waste management. Regulation (EC) No 258/97 on available on the market and, although the Commission has novel foods and novel food ingredients was adopted after a initiated an assessment of these substances, it is a lengthy long process of conciliation. Agreement was reached on process and does not subject existing substances to the compulsory Europe-wide labelling of foods and food same stringent test criteria as new substances. In view of ingredients containing GMOs, which may not be marketed concerns about the harmful efects of chemical substances unless authorised and proven harmless (see "4.9.8).
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D. Export and import of dangerous substances Council adopted most of Parliament’s irst reading Regulation (EC) No 304/2003 concerning the export and amendments on registration and evaluation; while import of dangerous chemicals, aims to implement the signiicant diferences between the position of Parliament Rotterdam Convention of 1998 (on the prior informed and the Council on the authorisation chapter remain. In the consent procedure (PIC)) and to establish import and second reading, the rapporteur (Guido Sacconi) focuses on export notiication procedures for dangerous chemicals. the issues of duty of care, the role of Parliament in the agency, SMEs, and animal testing. Role of the European Parliament Parliament has strongly criticised the Commission, in The EP played a leading and active role in the long particular for having authorised the marketing of discussions with the Commission and the Council genetically modiied maize despite the reservations concerning the new Seveso II directive (2003/105/EC — expressed by some scientists and despite the opposition preparing for emergencies, informing the public, and shown by 13 of the 15 Member States to marketing this mapping areas that might be afected by the type of maize (cf. in particular the resolution adopted on 8 consequences of major accidents). April 1997). Austria and Luxembourg have since adopted measures under Article 16 of Directive 90/220/EEC to In the ongoing discussion concerning the future of prohibit the marketing of genetically modiied maize. chemicals policy in the EU the EP is trying to ind a compromise between the diverging positions of the Commission and industry. The most controversial areas g Yanne GOOSEENS Gianpaolo MENEGHINI within the REACH discussions have been ‘registration’, 09/2006 ‘authorisation’ and ‘substitution’. In its common position, the
4.9.10 Integrated product policy
Legal basis and objectives prolong their shelf life and reduce their impact on the "4.9.1 environment. Stakeholders could play a role in identifying problems and solutions with a view to creating products Articles 174 to 176 of the EC Treaty. that are more environment friendly. The integrated product policy (IPP) strategy focuses on the Achievements three stages in the decision-making process which strongly A. Green Paper on integrated product policy inluence the life-cycle environmental impacts of products: The objective of the Green Paper on integrated product application of the polluter pays principle in ixing the prices policy (IPP) (COM(2001) 68) is to present a strategy for of products, information for consumer choice and strengthening and refocusing product-related deinition of eco-designed products. environmental policies with a view to promoting the 1. Setting product prices development of a market for greener products and, The environmental performance of products can be ultimately, to stimulating public discussion. In principle, all optimised by the market once all prices relect the true products and services fall within the scope of this Green environmental costs of these products. This is not normally Paper. The strategy proposed in the Green Paper calls for the case, but application of the polluter pays principle the involvement of all the parties concerned at all possible would enable these market failures to be corrected by levels of action and throughout the life-cycle of the ensuring that the environmental costs were integrated into products. Eco-design must be promoted by the the price. The main idea advanced in the Green Paper as a manufacturers to ensure that products on the market are means of implementing the polluter pays principle is more environment friendly. Distributors should put green diferentiated taxation according to the environmental products on the shelves and should inform consumers of performance of products, e.g. the application of lower VAT their existence and beneits. Consumers should preferably rates to products carrying the eco-label or the introduction choose green products and use them in such a way as to of other environmental taxes and charges.
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01_2006_4661_txt_EN.indd 315 30-10-2007 14:55:24 2. Informed consumer choice given to the whole of a product’s life cycle, from ‘cradle The Green Paper sees the process of educating consumers to grave’; (including children) and companies as an important way of — lexibility of policy measures to be used: among promoting demand for more environment-friendly products, diferent policy measures such as taxes, product thereby making for greener consumption. Another way of standards and labelling, and voluntary agreements, the ensuring informed consumer choice is to provide consumers focus should be on the most efective measure, working with understandable, relevant and credible technical with the market where possible; information either through product labelling or through other readily accessible sources of information. In order to — stakeholders involvement: designers, industry, minimise the environmental impact, attention should be distributors, retailers and consumers should be involved drawn to the appropriate conditions governing the use of and take action in their sphere of inluence in order to these products. The Internet and other new information reduce products’ impacts. technologies open up prospects for data exchange, The communication proposes two approaches: including assessment and best practice data. — improve existing tools, such as the EU eco-management The European eco-label represents a source of information and audit scheme (EMAS), environmental labelling and for consumers, but its scope needs to be widened to take the provision of life-cycle information, to make them in a broader range of products. Public funding of this kind more product-focused and improve coordination of eco-labelling should be increased, both at European and between the diferent instruments to better exploit at national level. their synergies; 3. Eco-design of products — take action towards a better environmental With a view to extending eco-design across a broader performance. range of products, steps must be taken to produce and Those approaches result in the following concrete actions: publish information on the environmental impact of products throughout their life cycle. Life-cycle inventories — in 2003, identiication and launch of pilot projects for (LCIs) and life-cycle analyses (LCAs) are efective particular products on the basis of stakeholders’ instruments to this end, as are other tools designed to suggestions to the Commission; permit rapid environmental impact monitoring. The Green — in 2005, on the basis of a stakeholders’ dialogue, Paper notes that eco-design guidelines and a general publication of a practical handbook on best practice strategy for integrating the environment into the design with life-cycle assessment (LCA); process could be used as instruments to promote the life- — in 2005, publication of a discussion document on the cycle concept within companies. need for product design obligations on producers; 4. Other instruments — in 2006, development of a Commission action Eco-management and environmental audit schemes, such programme for greening its procurement; as the EMAS systems, are important instruments in the quest to ascertain and control the efects of products on — in 2007, identiication of a irst set of products with the environment. They have a potential role to play in the greatest potential for environmental improvement. promotion of IPP. C. Integration of environmental considerations Other Community instruments, such as the research and into public procurement development programmes and LIFE, are listed as New public procurement directives (2004/18/EC) were instruments that could help to promote IPP. adopted by the Council and the EP on 31 March 2004. The main objectives of the new directives are to simplify, clarify B. ‘Integrated product policy — Building and modernise the procedures (notably through the on environmental life-cycle thinking’ introduction of electronic or e-procurement). The basic Commission communication of June 2003 (COM(2003) 302) principles of non-discrimination and transparency remain further outlines the strategy for reducing the at the core of public procurement law. The recitals refer to environmental impact caused by products. It sets out a Article 6 of the EC Treaty, underlining the directives’ aim of number of actions to encourage improvement in a clarifying how contracting authorities may contribute to product’s environmental impact throughout its life cycle. It the protection of the environment. They consolidate recent emphasises three aspects: case-law of the Court of Justice in this ield (C-448/01 — ‘life-cycle thinking’: which means that when pollution- ‘Wienstrom’ of 4 December 2003 and C-513/99 ‘Finnish reduction measures are identiied, consideration is Buses’ of 17 September 2002), referring explicitly to the
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latter case in the irst recital. As such, they stress the advantage to the contracting authority itself (e.g. if possibilities indicated by the Commission in its additional points were to be awarded for timber interpretative communication of 4 July 2001 on the products from woods harvested in an environmentally possibilities for integrating environmental considerations sustainable manner). Award criteria should always be into public procurement. linked to the subject of the contract (which excludes Relevant provisions on ‘green’ public procurement are listed criteria related to the operation of environmental below. management schemes because such schemes cover a wide variety of measures, most of which would not be — The deinition of technical speciications, which related to the subject of the contract). All technical includes environmental performance standards and speciications (including environmental performance production methods. This enables contracting standards and environmental production methods) can authorities to ask for products with environment- be translated into award criteria. friendly production methods or to award extra points for products manufactured as such. In February 2004, — Environmental considerations can be included among the Commission adopted COM(2004) 130 on the the conditions relating to the performance of a contract integration of environmental aspects into European (e.g a requirement to deliver the products in bulk), standardisation. provided they are not discriminatory. — The possibility of deining technical speciications in Role of the European Parliament terms of performance or functional requirements, including environmental characteristics. The integrated product policy strategy developed in the Commission Green Paper is fully in line with the objectives — Environmental characteristics in terms of performance and ideas of the EP (as underlined on various occasions). or functional requirements may be deined in tender The EP has stressed the need for environmental criteria to documents by using the speciications as deined by be incorporated into government procurement European or (multi)national eco-labels (under certain procedures, and has expressed the view that a more conditions relating to the scientiic basis, accessibility exhaustive study should have been carried out into the and stakeholder consultation). success and failures of existing IPP policies, such as the — Member States may oblige contracting authorities to European eco-label scheme and the directive on make sure that candidates or tenderers are informed of packaging. It also regretted the lack of clear objectives with obligations relating to environmental protection. timetables and the lack of methods and indicators for — The possibility for contracting authorities to ask for monitoring IPP. environmental management measures as a means to Furthermore, the EP felt that the subsequent prove a tenderer’s capacity to execute a speciic works communication in 2003 provided only limited guidance on or service contract (e.g. in a works contract to build a how to move society in the direction of truly sustainable bridge in a nature reserve, implying the need for systems for product development and design, and called continuous environmental management, and adoption on the Commission to formulate tangible objectives aimed of speciic protection measures during the work). at establishing coherence and consistency in the area of — Explicit preference for EMAS (and equivalent means of product-related environmental protection. The EP also proof) when asking for environmental management played a strong role in the introduction of provisions measures, as a way to certify the measures put in place. allowing greener procurement in public procurement directives. — Environmental characteristics listed as a possible award criterion: it follows from the wording of the relevant provision that environmental criteria may be of a g Yanne GOOSEENS Gianpaolo MENEGHINI qualitative (e.g. emission level) or economic nature (e.g. 09/2006 energy consumption), and there need not be a direct
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4.10.1 Consumer policy: principles and instruments
Legal basis Achievements Articles 95 and 153 EC Treaty A. General EU action in favour of consumers has started in the form of Objectives a series of action plans, beginning with the Council Article 95 is the legal basis for the harmonisation measures resolution of 14 April 1975. which have as their object the establishment of the internal Following the completion of the single market, consumer market and emphasises the objective of a high level of policy objectives have now to be considered as part of the protection, taking into account any new development EU’s major policies. based on scientiic facts, when concerning consumer protection measures. The most recent programme on the strategy for consumer policy at European level for the period 2002–06 (Council Article 153, as modiied by the Amsterdam Treaty, resolution of 2 December 2002) sets out three mid-term introduced a legal basis for a complete range of actions at objectives, implemented through actions in a short-term European level. It stipulates that ‘the Community shall rolling programme (Decision No 20/2004/EC), which will be contribute to protecting the health, safety and economic regularly reviewed: interests of consumers as well as to promoting their right to information, education and to organise themselves in order — high common level of consumer protection; to safeguard their interests’. It also provides for greater — efective enforcement of consumer protection rules; consideration to be given to consumer interests in other EU — involvement of consumer organisations in EU policies. policies. Article 153 strengthens, in this sense, Article 95 and broadens its remit beyond single market issues to EU consumer policy aims nowadays to: include access to goods and services, access to the courts, — guarantee essential health and safety standards, so that the quality of public services, and certain aspects of buyers are conident about making cross-border nutrition, food, housing and health policy. It states also that purchases and sure that the products are safe (see in EU actions shall not prevent any Member State from this sense the numerous European normative acts on maintaining or introducing more stringent measures as the Community eco-label); long as they are compatible with the EC Treaty. — guarantee that they are protected against illegal and As a consequence, consumer policy is nowadays part of abusive practices; the Union’s strategic objective of improving the quality of — enable individuals to be informed and understand life of all its citizens. In addition to direct action to protect policies that afect them; their rights, the Union ensures that consumer interests are built into EU legislation in all relevant policy areas (Council — establish a coherent and common environment across resolution of 31 December 1986). It is important that all 460 the Union for an efective enforcement of consumer million citizens in the EU beneit from the same high level protection rules; of consumer protection (Council regulation of 9 November — ensure that consumer’s concerns are integrated into the 1989 on future priorities for relaunching consumer whole range of relevant EU policies from environment protection policy). EU legislation, cooperation with the and transport to inancial services and agriculture. national authorities, common actions, co-regulation The Commission estimates that a major future objective is between consumer and business organisations, good to harmonise and simplify all rules and actions in the area practice guidelines and support of consumer organisations of consumer protection nowadays involving many are all considered as a major instrument.
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directives, in addition to the case-law and the various rules the same role for complaints about cross-border inancial of the Member States. Simpliication of existing rules, where services. possible, could help both consumers (access to a greater The Commission also published a practical guide for choice of products at better prices) and businesses consumers. (reducing their burdens). The methods of achieving this simpliication are the adoption of new directives or the 4. Legal protection of consumer rights adoption of framework directives to be supplemented by One of the major assets to be dealt with is, since the targeted directives and national rules. The method of Amsterdam Treaty, the guarantee of the highest possible framework directives is estimated by the Commission to be level of efective legal protection of consumer interests, via more efective in combination with the current self- administrative, jurisdictional and non-jurisdictional regulation rules or codes of good conduct and the procedures. voluntary undertakings from businesses with regard to Almost all directives have introduced rules concerning consumers (amended proposal for a decision establishing a jurisdictional and alternative dispute resolutions that programme of Community action in the ield of health and consumers can use to protect their rights when intra- consumer protection policy 2007–13 (COM(2006) 235 inal). national conlicts arise, in order to guarantee the B. Sectoral measures efectiveness of the actions and avoid excessive burdens and costs for the consumers themselves, in particular with "4.10.2 the alternative dispute resolution (ADR) procedures and the 1. Consumer groups injunctions. EU institutions wish to involve representatives of 5. Scientiic support consumers’ interests. Decision 93/53/EEC set up a scientiic committee for Decision No 20/2004/EC establishing a general framework designations of origin, geographical indications and for inancing Community actions in support of consumer certiicates of speciic character. policy provides that the Commission shall be assisted by an Three scientiic steering committees were created by advisory committee (see also Decision 2003/709/EC). Decision 2004/210/EC to bring wider scientiic experience 2. Consumer education and overview into questions related to consumers. The The EU has organised actions for consumer education at advice of the scientiic committees is now public (including various stages, for example in primary and secondary on the Internet). schools, with the gradual inclusion of consumer education 6. Warning systems in school syllabuses. The Commission has also piloted Existing information networks are: the European Consumer teacher-training schemes. Centres Network ‘Réseau CEC’ or ‘ECC-Net’; RAPEX (a system The draft 2007–13 programme aims to introduce other for the rapid exchange of information on non-food special actions in this sense, as the support for the creation products); a rapid alert system in case of food risks; a of master courses on consumer’s rights and consumer network for the surveillance and control of communicable policy at university level. diseases; the European Centre for Disease Prevention and 3. Consumer information Control; the European Judicial Network; and the Solvit The ability of consumers to protect themselves is directly network (the internal market problem solving system). An linked to knowledge. Broad policy lines included the internal market ‘product warning system’ now exists in the transparency of prices, product information, the Commission and is at available to receive consumers’ development of consumer information services, and complaints. increased comparative testing of products. Role of the European Parliament A irst step was reached with Directive 98/6/EC which established common rules for the indication of the prices The strong and persistent pressure exerted by Parliament of products ofered in the internal market. for consumer concerns to be dealt with comprehensively by the other EU institutions has brought to the Single Directives 90/313/EEC and 2003/4/EC introduced rules on European Act modiications which shifted consumer public access to environmental information. protection policy from a technical harmonisation of The EU has set up European consumer information centres standards policy in furtherance of the internal market to (ECC-Net) to provide information and handle consumer the recognition of consumer protection as part of the drive complaints and has reinforced the link with and between to improve the objective of establishing a ‘citizens’ Europe’. consumer organisations. A parallel network, FIN-NET, fulils The introduction of the co-decision procedure and the
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01_2006_4661_txt_EN.indd 319 30-10-2007 14:55:25 widening of the areas of legislation to be adopted under — the need for a detailed consumer protection policy; the qualiied majority voting procedure in the Council, gave — a greater coordination at EU level of the activities of to Parliament the power to increase the Community action national consumer groups; in this area. — the need for European consumer information centres. Parliament has been particularly active in ensuring higher budgetary provisions for: g Azelio FULMINI — the information and education of consumers; 06/2006 — the development of consumer representation in the Member States;
4.10.2 Consumer protection measures
Legal basis Directive 2001/18/EC and Regulations (EC) No 1830/2003 Articles 95 and 153 of the EC Treaty. and (EC) No 65/2004 strengthened the EC rules on the release into the environment and improved the eiciency and the transparency of the authorisation procedures for Objectives placing of genetically modiied organisms (GMOs) on the — To ensure that all consumers in the Union, wherever market. It introduce a common methodology for risk they may live, travel or shop in the EU, enjoy a high assessment, a mandatory public consultation safety common level of protection against risks and threats to mechanism and GMOs labelling and traceability, in their safety and economic interests. accordance with the precautionary principle. — To increase the ability of consumers to defend their own 3. Medicinal products interests. Directive 89/381/EEC, as amended, contains special provisions to promote particularly high standards for Achievements medicinal products derived from human blood. A. Protection of consumers’ health and safety Directive 2001/83/EC introduces a code relating to 1. Community actions in the ield of public health medicinal products for human use (governing production, Directive 2001/37/EC and Decision 2003/641/EC harmonise placing on the market, distribution and utilisation). The national rules on tobacco products. good practices regarding clinical trials for medicinal products for human use are laid down in Directive Decision No 1786/2002/EC adopted a programme for 2003/94/EC. Directive 92/28/EEC sets out rules on the 2003–08 (health, cancer, drug addiction, health surveillance advertising of medicinal products for human use. and pollution-related diseases, injury prevention and rare diseases). The precautionary principle may be invoked Set up in 1993, the European Medicines Agency (EMEA) where urgent measures are needed to face a danger to manages the procedures for the authorisation of marketing public health. Decision 2004/210/EC set up three advisory of pharmaceutical products. No medicinal product may be scientiic committees (consumer safety, public health and placed on the market unless an authorisation has been environment). A decision of 15 December 2004 and issued. Regulation (EC) No 58/2003 set up an executive agency. 4. General product safety system 2. Foodstufs safety legislation and genetically Directive 2001/95/EC organises a general product safety modiied organisms system requiring the respect of standards by any product Directives 90/496/EEC, 94/54/EC, 1999/10/EC, 2000/13/EC put on the market for consumers, including all products and Regulations (EC) No 1468/1999, (EC) No 178/2002 and that provide a service, products which are not eatable but (EC) No 1304/2003 harmonised the rules on labelling, could easily be confused with foodstuf by their presentation and advertising of foodstufs and established appearance, smell or packaging (Directive 87/357/EC), the European Food Safety Authority (EFSA). excluding second-hand products and antiques. Distributors
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and manufacturers must provide consumers with the services (solicitors, doctors, accountants and estate agents), necessary information, take the necessary measures to entertainment services (video on demand), direct avoid such threats (e.g. withdraw products from the market, marketing and advertising and Internet access services. inform consumers, recall products which have already been Directive 2002/38/EC stipulates rules on taxation for supplied to consumers), monitor the safety of products and services supplied in electronic form over electronic provide the documents necessary to trace the products. If a networks (information, cultural, artistic, sporting, scientiic, product poses a serious threat calling for quick action, the educational, entertainment or similar services, as well as Member State involved immediately informs the software, computer games and computer services). Commission via RAPEX, a system for the rapid exchange of information between States and the Commission. Directive 97/5/EC and Regulation (EC) No 2560/2001 ensure that charges for cross-border payments in euro 5. Safety of cosmetic products, explosives for civilian (cross-border credit transfers, cross-border electronic use and toys payment transactions, cross-border cheques) are the same Various directives (80/1335/EEC, 82/434/EEC, 83/514/EEC, as those for payments in that currency within a Member 85/490/EEC, 93/73/EEC, 95/32/EC and 96/45/EC) have been State. adopted to improve the safety of cosmetic products, as well as protecting consumers by providing for ingredient Directive 98/26/EC reduces the risks associated with the inventories and more informative labelling. participation in payment and security systems. It lays down common rules stating that transfer orders and netting must Safety requirements for explosives for civilian use and be legally enforceable and cannot be revoked once they similar products such as explosives and pyrotechnic articles have been entered into the system. The insolvency of a are set out in Directives 93/15/EEC, 99/45/EC, 2004/57/EC participant may not have retroactive efects and the and Decision 2004/388/EC. The directives do not apply to insolvency law of the State whose system is involved is explosives for military or police use and munitions. applicable. Toy safety requirements (mechanical and physical danger, Directives 2002/58/EC, concerning the processing of toxicity and lammability, toys for children less than three personal data and the protection of privacy in the years old) are stipulated by Directives 88/378/EEC, as electronic communications sector, and 2002/22/EC, amended, and 76/769/EEC and by Decisions 93/465/EEC concerning the ‘universal service’ and the users’ rights and 1999/815/EC. The Standardisation Committee (CEN) related to electronic communications and services, dealt revises and develops new standards. Toys that meet these with consumer protection. standards bear the ‘CE’ conformity marking. 2. TV without frontiers 6. European exchange of information and surveillance Directive 89/552/EEC, as amended, ensuring the free systems movement of broadcasting services, preserves certain Decisions 93/683 and 93/580 established an European public interest objectives, such as cultural diversity, the home and leisure accident surveillance system (Ehlass), a right of reply, consumer protection and the protection of regular information system on accidents at home and minors. The provisions relate to, inter alia, ethical during leisure activities and a Community system for the considerations (in particular the protection of minors — exchange of information between Member States on the programmes broadcast in unencoded form are to be dangers arising from the use of consumer products, except preceded by an acoustic warning or identiied by a visual pharmaceuticals and products for trade use. symbol) and compliance with criteria concerning B. Protection of consumers’ economic interests advertisements for alcoholic beverages and teleshopping. Advertising of tobacco and medicines and programmes 1. Information society services, electronic commerce involving pornography or extreme violence are prohibited. and electronic and cross-border payments Events of major importance for society are to be broadcast Directive 2000/31/EC covers the liability of service providers freely in unencoded form, even if exclusive rights have established in the EU for services (services between been purchased by pay-TV channels. enterprises, services between enterprises and consumers, and services provided free to the recipient which are 3. Distance selling contracts and contracts negotiated inanced, for example, by advertising income or away from business premises sponsoring), online electronic transactions (interactive Directives 85/577, as amended, and 2002/65/EC, amending telesales of goods and services and online purchasing Directives 90/619/EEC, 97/7/EC and 98/27/EC, protect the centres in particular), and online activities such as consumer in respect of contracts: negotiated at a distance newspapers, databases, inancial services, professional (via the press and post, television, home computer, fax and
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01_2006_4661_txt_EN.indd 321 30-10-2007 14:55:25 telephone); stipulated away from business premises; as imitations or replicas of protected trade-mark or trade- ofered without the express wish of the consumer; in name goods or services. respect of which the consumer receives a visit from or takes 6. Liability for defective products and price indication part in an excursion organised by a trader. The consumers Directive 85/374/EEC, modiied by Directive 99/34/EEC, must be informed in advance and by writing of: identity establishes the principle of objective liability or liability and the address of the supplier; characteristics of the goods without fault of the producer in cases of damage caused by or services; their price; delivery costs; arrangements for a defective product. The injured consumer seeking payment, delivery or performance; the existence of a right compensation needs to prove the damage, a defect in the of withdrawal; the period for which the ofer or the price product and a causal link, within three years. remains valid and the minimum duration of the contract; the cost of using the means of distance communication. Directive 98/6/EC, on unit prices, obliges traders to indicate Commission recommendation 92/295/EEC introduced a sale prices and prices per measurement unit in order to code of practice. improve and simplify comparisons of price and quantity between products on the market. 4. The sale of goods and guarantees, unfair terms in contracts and unfair commercial practices 7. Consumer credit and insurance Directives 93/13/EEC and 99/44/EC harmonise national Directive 87/102/EC, as amended, aimed to make provisions on the sale of consumer goods (the principle of uniform the level of protection of rights enjoyed by conformity of the product with the contract) and consumers in the single market. Credit agreements are to associated guarantees in order to ensure a uniform level of be made in writing and must state the annual protection. A contractual term not individually negotiated percentage rate of charge and the conditions under (particularly in the context of a pre-formulated standard which it may be amended. The consumers must be contract) shall be regarded as unfair if, contrary to the good informed on any change of the annual rate of interest or faith, it causes a signiicant imbalance in the parties’ rights of the relevant charges and may discharge their and obligations, to the detriment of the consumer. obligations before the ixed time, with an equitable reduction in the cost of the credit (communication of the Directive 2005/29/EC, to be implemented for the end of Commission of 1 March 2001). 2007, simpliied existing EC legislation. Unfair commercial practices (misleading and aggressive practices, ‘sharp The harmonisation of the laws on compulsory insurance practices’, such as pressure selling, misleading marketing against civil liability (Directive 72/166/EEC as amended, on and unfair advertising, and practices which use coercion as the use of vehicles and Regulation (EC) No 785/2004 on a means of selling) are prohibited, irrespective of the place insurance requirements for air carriers and aircraft of purchase or sale. Criteria to determine aggressive operators), life insurance (Directive 2002/83/EC), cross- commercial practice (harassment, coercion and undue frontier non-life insurance (Directives 88/357/EEC and inluence) and a ‘blacklist’ of unfair commercial practices 92/49/EEC) and legal expenses insurance (Directives (pyramid schemes, unsolicited supply or use of bait 87/343/EEC and 87/344/EEC) concerns also the protection advertising, when the low-priced product is not available, of consumers’ economic interests. or use of advertorial — advertisement written in the form 8. Package holidays and timeshare properties of editorial copy) are included. Directive 90/314/EEC protects consumers purchasing 5. Comparative and misleading advertising package holidays within the EU stating that: the Directives 84/450/EEC, 97/55/EC and 2005/29/EC information contained in the brochure is binding on the harmonise national legislations. The Member States will organiser if the consumer withdraws from the contract or if ensure efective actions to a court, or before a competent the organiser cancels the package; the consumer is entitled administrative body, against misleading advertising. In this either to take an alternative package or to be reimbursed; context, Member States will invest the jurisdictional or where appropriate, the consumer is entitled to be administrative bodies with efective powers. compensated for non-performance or improper performance of the contract, except cases of fault or force Comparative advertising is ‘any advertising which majeure. explicitly or by implication identiies a competitor’. It is permitted if it is not misleading, compares comparable Directive 94/47/EC covers the obligation of information on goods or services, compares objectively, does not create the constituent parts of the contract and the right to confusion, does not discredit or denigrate, relates to withdraw without giving any reason within 10 days, paying products with the similar designation of origin, does not exclusively those expenses efectively incurred. The take unfair advantage, does not present goods or services purchaser’s right of withdrawal may be exercised, with no
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costs, within three months if the information required by injunctions’, which can be opened, at the competent the directive were not included in the contract. national courts level, against infringements (misleading 9. Air transport advertising, unfair commercial practices, contracts negotiated away from business premises, consumer credit, Regulations (EC) No 261/2004 and (EC) No 2027/97, as package travel, medicinal products for human use, unfair amended, establish common rules on compensation and contractual terms, time-shares, distance contracts, sale of assistance to passengers in the event of denied boarding consumer goods and associated guarantees) made by and cancellation or long delay of lights and on air carrier commercial operators from other countries. Consumers liability (passenger and baggage), in case of accidents. associations may seek to: stop or prohibit, under an urgent Passengers now have the right to demand a cash procedure, any illegal act; adopt the needed measures to compensation payable within one month under the rules eliminate the efects of the infringement; order the to be displayed at airports. payment of a penalty in the event of failure to comply with Regulation (EEC) No 2299/89, as amended, on the former decision within the speciied time limit. computerised reservation systems (CRS) for air transport 2. European judicial network in civil and commercial products establish obligations for the system vendor (to matters and obligation to cooperate for national allow any carrier on equal basis) and for the carriers (to authorities communicate with equal care and timeless information to all systems). Decision 2001/470/EC established such a network to simplify the life of citizens facing cross-border litigations by Regulation (EEC) No 2409/92 introduces common criteria improving the judicial cooperation mechanisms between and procedures governing the establishment of the air Member States in civil and commercial matters and by fares and air cargo rates charged by air carriers on air providing them with practical information to facilitate their services within the Community. access to justice. Regulation (EC) No 2320/2002, as amended, introduces Regulation (EC) No 2006/2004 establishes a network of common rules in the ield of civil aviation security standards, national authorities responsible for the efective following the criminal acts of September 11th, 2001. enforcement of the EC consumer protection law and 10. European Consumer Centres network obliges them, since 29 December 2005, to cooperate to (Euroguichets) guarantee the enforcement of EC law and to stop any The European Consumer Centres network (ECC-Net) — the infringement, using appropriate legal instruments such as ‘Euroguichets’ — gives information and assistance to injunctions, in case of intra-Community infringements. consumers within the context of cross-border transactions. This network also works together with other European Role of the European Parliament networks, notably FIN-NET (inancial), Solvit (internal The European Parliament (Parliament) has been at the market) and the European judicial network in civil and origin of most of the adopted measures (inter alia, commercial matters. European Food Safety Authority, European Medicines C. Protection of consumers’ legal interests Agency, GMOs, safety in the areas of cosmetics, tourism, unfair contract terms, distance selling, door-to-door sales, 1. Alternative dispute resolution (ADR) procedures use of hormones, exports of various dangerous substances and injunctions as pesticides, greater protection to workers and consumers Recommendation 98/257/EC, Decision No 20/2004/EC and in the destination countries for EU exports and Directive a Council resolution of 25 May 2000 lay down the principles 76/768/EEC on animal experiments for cosmetic products). to be followed in ADR proceedings, aimed to guarantee the single consumer with cheaper and faster intra-national Parliament has also supported traditional food and legal remedies. producers located in isolated areas. Directive 98/27/EC, as modiied, harmonises existing EU and national law and, in order to protect the collective g Azelio FULMINI interests of consumers, introduces the ‘actions for 06/2006
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Legal basis The emergence of drug addiction, cancer and AIDS (among The EC Treaty, whilst not introducing an EU health policy, others) as major health issues, coupled with the increasingly nonetheless takes a number of steps in that direction. Article free movement of patients and health professionals within 152 stipulates that ‘a high level of human health protection the EU, pushed public health ever further on to the EU shall be ensured in the deinition and implementation of all agenda. Major initiatives launched included the ‘Europe Community policies and activities’ and that ‘by way of against cancer’ and ‘Europe against AIDS’ programmes in derogation from Article 37’ (CAP), the Council will adopt 1987 and 1991, respectively. In addition, several key ‘measures in the veterinary and phytosanitary ields which resolutions were adopted by the Council’s health ministers have as their direct objective the protection of human on health policy, health and the environment, and health’. These measures, plus measures concerned with monitoring and surveillance of communicable diseases. human blood and organ quality and incentive measures B. Developments following the Maastricht Treaty designed to protect and improve human health, are subject In November 1993 the Commission published a document to qualiied majority voting in the Council. entitled ‘Communication on the framework for action in the ield of public health’, which identiied eight areas for Objectives action. Historically, EU health policy originated from health and 1. Health promotion safety provisions, and later developed as a result of free This Community action programme focused on promoting movement of people and goods in the internal market, healthy lifestyles and behaviour, particularly in the areas of which required coordination in public health. In nutrition, alcohol consumption, tobacco and drugs, harmonising measures to create the internal market, a high medicines and medication. level of protection formed the basis for proposals in the ield of health and safety. 2. Health monitoring This programme based on cooperation is less than that Various factors, including the BSE crisis towards the end of proposed by Parliament, which wanted a speciic budget the century, put health and consumer protection high on and much tighter speciications for an EU, as opposed to the political agenda. As a result, DG XXIV (renamed the Member State, programme, including a centre for data Directorate-General for Health and Consumer Protection) collection. was considerably reinforced. 3. Cancer Achievements The ‘Europe against cancer’ programme ran until the end of 2002. New areas of activity include epidemiological studies A. Early development to measure the impact of cancer on the population, and Despite the absence of a clear legal basis, public health research collaboration and dissemination. In recognition of policy had developed in several areas prior to the current the strong link between cancer and lifestyles, a special part Treaty, including the following. of the plan is dedicated to alcohol consumption, diet and, — Medicines: legislation introduced since 1965 sought to most importantly, smoking, both active and passive. This achieve high standards in medicine research and runs in conjunction with existing EU legislation on tobacco, manufacturing, harmonisation of national drug which includes: licensing procedures, and rules on advertising, labelling — a Council resolution on banning smoking in public and distribution. places (1989); — Research: medical and public health research — two directives on labelling of tobacco products, with programmes date back to 1978 on subjects such as age, obligatory health warnings as well as tar and nicotine environment and lifestyle related health problems, yields, and also banning oral tobacco products (1989 radiation risks, and human genome analysis, with and 1992) and a directive on the maximum tar yield of special focus on major diseases. cigarettes (1990); — Mutual assistance: in the event of disaster and — an agreement reached by the Council and Parliament extremely serious illness. on the text of a new directive to replace Directive
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98/43/EC (which was the object of a successful legal C. Recent developments challenge) on the advertising and sponsorship of 1. Evaluation of the current programmes tobacco products. Together with the directive on The eight programmes carried out between 1996 and 2002 television advertising of tobacco products, this directive were evaluated during 2003. During their lifetime the will ban the advertising and sponsorship of tobacco overall design of the programmes was criticised for being products in the EU. limited in efectiveness because of the dilution caused by 4. Drugs its disease-by-disease approach. Calls were made for a This is the only major scourge to be speciically mentioned more horizontal, interdisciplinary approach concentrating in the EU Treaty, and recognised in the Commission’s on areas where EU action could produce ‘added value’. communication as a multi-faceted problem linked to social 2. The 2003–09 programme exclusion and unemployment. The EU set up a European In May 2000 the Commission put forward a proposal for a Committee to Combat Drugs (CELAD) in 1990, and a new programme to replace the existing eight programmes European Monitoring Centre for Drugs and Drug Addiction with a single, integrated, horizontal scheme. The proposal (based in Lisbon) in 1995. The EU has also signed the UN was adopted after a long co-decision procedure and the Convention against illicit traic in narcotics, as well as inal decision was published in October 2002. The scheme developing bilateral contacts with producer countries. came into efect on 1 January 2003 to run for six years with 5. AIDS and communicable diseases a budget of EUR 312 million. The new programme will The current programme comprises information, education focus on key priorities where a real diference can be made. and preventive measures to combat AIDS and other related It focuses on three strands of action. communicable diseases. Emphasis is also placed on (a) Mutual exchange of information collaborative research, international cooperation and This concerns knowledge about people’s health, health information pooling. The Commission has also proposed interventions and health system functioning. The inclusion the creation of a network for the epidemiological of health system comparisons is a new element here since surveillance and control of AIDS and other communicable this had always been considered a purely national matter. diseases such as CJD. In terms of organisation it still is, but systems have much to 6. Injury prevention learn from each other and Court of Justice decisions on This programme focuses on home and leisure accidents citizens seeking medical help in other Member States have and targets children, adolescents and older people. increased the importance of this aspect, as has the fact that Activities are complementary to those pursued in other Member States face the same kinds of problems in ields such as consumer protection, transport, civil providing health services to an increasingly elderly protection and the Ehlass programme. population. 7. Pollution-related diseases (b) Strengthening rapid response capacity Many of the provisions of the ifth environmental action It is now seen as essential for the EU to have a rapid plan — on energy, transport and agriculture — will have a response capacity to react to major health threats in a signiicant indirect health impact. The pollution-related coordinated manner, especially given the threat of diseases programme concentrates on improving data and bioterrorism and the potential for worldwide epidemics in risk perception as well as disease-speciic actions for an age of rapid global transport making it easier for respiratory conditions and allergies. diseases to spread. 8. Rare diseases (c) Targeting actions to promote health and disease This programme targets those diseases with a prevalence prevention rate of less than ive people per 10 000 of the EU This is to be undertaken by tackling the key underlying population. It is intended to create an EU database and causes of ill health relating to personal lifestyles and information exchange to improve early detection and economic and environmental factors. This will entail, in identify possible ‘clusters’, as well as encouraging the particular, working closely with other EU policy areas such setting-up of support groups. as environment, transport, agriculture and economic development. 9. Other activities Activities outside the eight programmes have included In addition, it will mean closer consultation with all tobacco control, surveillance and control of communicable interested parties and greater openness and transparency diseases, safety of blood and blood products and various in decision-making. A key initiative in this is the setting-up reports and studies. of an EU health forum as a consultative mechanism.
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01_2006_4661_txt_EN.indd 325 30-10-2007 14:55:26 Provisions have been made for structural arrangements, — radiation protection for patients undergoing medical establishing a new programme committee and treatment or diagnosis; strengthening the Commission’s coordinating and — respect for life and care of the terminally ill; technical capabilities by externalising certain functions, and possibly by creating an executive agency for certain — a European charter for children in hospital; functions once a regulation on the establishment of such — research in biotechnology including organ transplants agencies has been adopted. and surrogate motherhood; In addition to projects on speciic areas of the three policy — safety and self-suiciency in the EU’s supply of blood for strands, there will be cross-cutting projects involving transfusion and other medical purposes; elements of all three. Projects will be much more clearly — hormones; linked to policy development needs and will be larger than in the past to ensure added value at EU level and a — drugs; measurable and sustainable contribution to public health. — tobacco and smoking; Some projects will involve all Member States and accession countries, whose inclusion in the programme from an early — breast cancer and women’s health in particular; stage is seen as essential. — ionising radiation; In recent years a number of initiatives have been taken to — an EU health card — a European health card reinforce Community involvement in public health and incorporating a microchip containing essential medical consumer protection, notably the establishment of data which could be read by any doctor; specialised agencies in these two areas. Developments — BSE and its aftermath and food safety and health risks; include the setting-up of a European Food Safety Authority in Parma, Italy, and a European Centre for Disease — biotechnology and its medical implications; Prevention and Control in Stockholm, Sweden. The latter — the rights of patients to seek medical assistance and was created by Regulation (EC) No 851/2004 of the care in other Member States. European Parliament and of the Council of 21 April 2004 In 2005 work was initiated leading to the approval by co- establishing a European Centre for Disease Prevention and decision (following a single reading) of a programme of Control, published in the Oicial Journal of the European Community action in the ield of health, 2007–13 (COD/ Union on 30 April 2004. 2005/0042A), based on a communication from the Commission to the European Parliament, the Council, the Role of the European Parliament European Economic and Social Committee and the Parliament has consistently promoted the establishment of Committee of the Regions on healthier, safer, more a coherent public health policy. It has also actively sought conident citizens: a health and consumer protection to strengthen and promote health policy through strategy (SEC(2005) 425 and COM(2005) 115 inal). numerous opinions and own-initiative reports on issues including: g Marcello SOSA IUDICISSA 11/2005
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4.11. An area of freedom, security and justice
4.11.1. An area of freedom, security and justice: general principles
Legal basis enshrined under three aspects: ‘freedom, security and Title IV (Articles 61 to 69) of the EC Treaty (ECT) entitled justice’: ‘Visas, asylum, immigration and other policies related to — freedom, which includes free movement of persons, free movement of persons’: these provisions, created by the asylum, legal immigration; Treaty of Maastricht outside the Community context (third — justice, which includes both civil and criminal matters; pillar), were incorporated in the ECT by the Treaty of Amsterdam and to some extent come under the — security, which includes both internal and external Community decision-making system. aspects — terrorism, crime, drug traicking, trade in human beings, illegal immigration. Title VI of the Treaty on European Union (EUT) entitled ‘Provisions on police and judicial cooperation in criminal 2. Partial ‘communitarisation’ matters’: these provisions remain outside the Community The Amsterdam Treaty moved a good deal of the context and are the subject of intergovernmental Maastricht third pillar into the Community sphere, in decisions. particular customs cooperation and judicial cooperation in civil matters (see Section C.3). However, this Objectives ‘communitarisation’ is only partial insofar as the decision- making procedures and the powers of the Court of Justice The gradual creation of an area of freedom, security and in this respect do not comply with the normal rules under justice (AFSJ) was introduced by the Treaty of Amsterdam. Community law. It replaces the concept of justice and home afairs introduced by the Treaty of Maastricht. As highlighted by (a) Decision-making procedure (Article 67 of the ECT) the European Council (Tampere, 15 and 16 October 1999), (i) During a transitional period of ive years: the aim is to reconcile the right to move freely throughout — the Commission’s right of legislative initiative is the Union with a high degree of protection and legal shared with the Member States (except in a few guarantees for all. areas: Article 67(3)); A new stage in the development of the AFSJ was — decisions are adopted by the Council acting by a embarked upon with the signing of the European qualiied majority except in the areas referred to in Constitution in October 2004 and the adoption of the paragraph 3; Hague programme in November 2004 and the Hague — Parliament is simply consulted. action plan in June 2005. (ii) After the transitional period: Achievements — the Commission largely regains its monopoly over initiative as the Member States’ right of initiative is A. Developments brought about by the Treaty limited to calling on the Commission to submit a of Amsterdam proposal to the Council, a request that the 1. Scope Commission is only required to examine (paragraph 2); The policies which were originally grouped under the — a few areas become subject to co-decision (between heading of Justice and Home Afairs (JHA) in the Maastricht Parliament and the Council) (paragraph 4) and the Treaty are quite numerous and diverse. In the Amsterdam Council may decide (but only unanimously) to apply Treaty, which entered into force on 1 May 1999, they were this system to other areas (paragraph 2).
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01_2006_4661_txt_EN.indd 327 30-10-2007 14:55:27 (b) Jurisdiction of the Court of Justice (Article 68) creation of a range of new cooperation bodies. The The Court’s jurisdiction is restricted in relation to ordinary Council broadly subscribed to these conditions. law under the ECT. (d) The Seville European Council (June 2002) highlighted (c) Police and judicial cooperation in criminal matters the need to develop a common policy in the ield of remains outside the ECT and thus in the asylum and immigration. It stressed the importance of intergovernmental sphere, although it is subject to adopting tangible measures to combat illegal some Community rules. immigration and manage external borders on the basis of two plans adopted in this ield during the irst half of (d) The entire system is highly complex: it includes three 2002. types of lexibility clause, seven supplementary protocols, 17 declarations by Member States, several (e) At the end of 2002 the Commission noted that timetables for implementation and the option to although the impetus given at the Laeken European engage in closer cooperation. It is thus extremely Council was continuing to bear fruit in certain areas, this diicult to implement. had not made up for the delay with regard to asylum and immigration in particular, despite the fact that all of C. Developments since Amsterdam the necessary proposals had been submitted to the 1. Contributions of the Treaty of Nice Council. It extends the co-decision procedure (Article 67(5)): (f) The Hague European Council of 4 and 5 November — to certain measures relating to asylum and refugees 2004 adopted the Hague programme, which aims to provided that the Council has already adopted build upon the work achieved during the now-expired legislation deining the common rules and basic Tampere programme. The Hague programme sets principles governing these issues; ambitious objectives for the next ive years. It takes into — to judicial cooperation in civil matters, with the account the objectives set by the Constitution for the exception of aspects relating to family law. creation of an area of freedom, security and justice. The main steps forward concern the adoption of measures 2. Slow progress for: (a) The Cardif European Council (June 1998) instructed the — completing the second phase of the common Council and Commission to produce an action plan on asylum policy by 2010; the best method of implementing the new provisions. The plan, approved by the Vienna European Council — initiating a debate on the possible creation of a (December 1998), establishes a calendar of priorities European corps of border guards; lasting two and ive years. — setting up the Schengen information system (or SIS (b) The Tampere European Council (October 1999) stressed II, due to be up and running by 2007) and the visa its intention to turn the EU into an area of freedom, information system (VIS); security and justice. It called on the Commission to — establishing the Internal Security Committee as set produce a scoreboard indicating the progress made out in the Constitution; and compliance with deadlines. This scoreboard, which — introducing the European evidence warrant by 2005; has been in operation since 2000, is updated twice a — setting up a European police record information year and has three objectives: guaranteeing system. transparency for citizens, maintaining the momentum generated by the Tampere European Council and The Hague programme is translated into a series of highlighting any delays that have been identiied. concrete measures by the Hague action plan, which was approved by the European Council meeting on 16 (c) The December 2001 meeting of the European Council and 17 June 2005. The Hague action plan will be in Laeken provided an opportunity to assess the updated at the end of 2006. progress made. The Commission, in its update of the scoreboard for the second half of 2001, concluded that 3. List of the main legal texts the situation was positive overall but that certain (a) Action plan of the Council and the Commission on how deadlines had not been respected, notably with regard best to implement the provisions of the Amsterdam to immigration and asylum. It noted that the ‘change of Treaty on the creation of an area of freedom, security pillar’ had not accelerated the process but that progress and justice (OJ C 19, 23.1.1999, p. 1). had been made as regards mutual recognition and the (b) Conclusions of the Tampere European Council, 15 and 16 October 1999.
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(c) Treaty establishing the European Community highlights the negative consequences that the division (consolidated version) (OJ C 325, 24.12.2002) — Title IV between the irst and third pillar entails for the (Articles 61 to 69): achievement of an area of freedom, security and justice, — external borders; including a serious lack of parliamentary control. Cooperation with the Council is considered to be — asylum policy; insuicient. The EP hopes that the post-Nice process will — immigration and the rights of third country see the co-decision procedure being extended to all areas nationals; within justice and home afairs. The EP strongly supports — ight against fraud and cross-border corruption; the developments which the Constitution, particularly — ight against drug traicking; Article III-396 thereof, would bring in the ield of freedom, security and justice as it would give the EP co-decision — customs cooperation. powers on almost all AFSJ matters. In addition, most (d) Treaty on European Union (consolidated version) (OJ C Council decisions would be taken by qualiied majority 325, 24.12.2002) — Third pillar (Title VI, Articles 29 to 42): voting (QMV), which would speed up the development of — police cooperation; the AFSJ. — judicial cooperation in criminal matters; It is critical of the current system, which encourages — ight against organised crime; haphazard initiatives by Member States instead of proposals that are coherent and carefully prepared from a — ight against traicking in human beings. strategic point of view. (e) European Constitution (OJ C 310, 16.12.2004). As regards the common asylum and immigration policy, (f) The Hague programme. the EP notes that moving this area from the third to the irst pillar under the Treaty of Amsterdam has not resulted in Role of the European Parliament any greater eiciency and regrets the fact that there are still In accordance with Article 39 of the EUT, the European many obstacles within the Council. Parliament holds a debate each year on the progress made Main European Parliament resolutions: in the area of police and judicial cooperation in criminal — resolution of 27 October 1999 on the European Council matters. In fact, its annual report covers all the progress meeting in Tampere; made in establishing an area of freedom, security and justice. — resolution of 10 March 2003 on progress in 2002 on implementing the AFSJ; The EP fully supports the creation of the AFSJ. Its role is simultaneously to: — resolution of 19 December 2003 on the outcome of the intergovernmental conference; — legislate, by participating in the decision-making process; — resolution of 11 March 2004 on the progress made in — provide impetus, by initiating new projects; 2003 in creating an area of freedom, security and justice — act as a watchdog, by monitoring respect for adoption (AFSJ); deadlines for texts and their compatibility with civil — recommendation of 14 October 2004 on the future of liberties. the area of freedom, security and justice as well as on Parliament notes that the establishment of such an area is the measures required to enhance the legitimacy and today one of the main priorities of European integration. It efectiveness thereof; believes that it is vital to ensure a balance between the — resolution of 8 June 2005 on the progress made in 2004 aims of freedom, security and justice, taking account of in creating an area of freedom, security and justice fundamental rights and citizens’ freedoms. However, it (AFSJ) (Articles 2 and 39 of the EUT). considers that as a representative of the peoples of the EU, and without prejudice to its formal competences, it should be involved in the adoption of all measures, including g Johanna APAP those adopted within the framework of the third pillar. It 11/2005
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Legal basis which brings together the most important provisions, is Article 63 of the EC Treaty (ECT) subject to a special institutional mechanism providing for derogation on numerous points from the supranational approach (Article 67 — see below) and allowing for a Objectives transition period (ive years after the entry into force of the Setting up a common asylum procedure: the aim is to set Treaty before majority voting is introduced). up a harmonised and efective asylum procedure to bring (a) Decision-making procedure (Article 67 ECT) about a common procedure and status for refugees. (i) During a transitional period of ive years: Deining a balanced approach to immigration: the aim is to set up a balanced approach to dealing with legal migration — the Commission’s right of legislative initiative is and illegal immigration. Proper management of migration shared with the Member States (except in a few lows also entails ensuring a more efective integration areas: Article 67(3)); policy and access to rights by third-country nationals — decisions are adopted by the Council acting by a within the EU as well as greater cooperation with non- qualiied majority except in the areas referred to in member countries in all ields, including the readmission paragraph 3; and return of migrants. — the European Parliament (EP/Parliament) is simply consulted. Achievements (ii) After the transitional period (see also Section B.1): A. Developments brought about by the Treaty — the Commission largely regains its monopoly over of Amsterdam initiative as the Member States’ right of initiative is The entry into force of the Amsterdam Treaty on 1 May limited to calling on the Commission to submit a 1999 marked a new stage in asylum and immigration proposal to the Council, a request that the matters. It provides for the establishment of an ‘area of Commission is only required to examine (paragraph 2); freedom, security and justice’ (AFSJ) and gives EU — a few areas become subject to co-decision (between institutions new powers to develop legislation on Parliament and the Council) (paragraph 4) and the immigration and asylum matters. For the irst time it Council may decide (but only unanimously) to apply became possible to talk meaningfully of a European asylum this system to other areas (paragraph 2). policy and a European migration policy. (b) Jurisdiction of the Court of Justice (Article 68 ECT) 1. Scope The Court’s jurisdiction is restricted in relation to ordinary The scope of Article 63 ECT covers: law under the ECT. — asylum, refugees and temporary protection; B. Developments since Amsterdam — regular immigration (and relevant measures on 1. Contributions of the Treaty of Nice integration of third-country nationals); Under the Treaty of Nice visa (see "4.11.3), asylum and — rights of regular third-country nationals including the immigration policy are to be decided mainly by the co- right to reside in another Member State; decision procedure. The shift to qualiied majority voting is provided for under Article 63 of the ECT for matters — irregular immigration (including return measures). concerning: 2. Communitarisation of asylum and immigration — asylum and temporary protection, provided that the matters Council has already adopted unanimously legislation With the Amsterdam Treaty, the transfer of competence of deining the common rules and basic principles the third pillar towards the irst pillar seemed impressive: all governing these issues; the matters listed under Article K.1 of the Maastricht Treaty were transferred to the irst pillar, except for police and — illegal immigration and the repatriation of illegally judicial cooperation in criminal matters, which remains in resident persons — the shift to qualiied majority voting the third pillar. The new Title IV ‘Visas, asylum, immigration and co-decision would take place as of 1 May 2004 and other policies related to free movement of persons’, (without the need for a unanimous decision as initially laid down by Article 67 of the EC Treaty);
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— regular migration once a ‘common framework’ has been efective application of the Dublin Convention of 28 completed — which is still not the case. February 2002 (OJ L 62, 5.3.2002, p. 1); 2. Slow rate of progress — Council Directive 2003/9/EC of 27 January 2003 The Treaty of Amsterdam established Community laying down minimum standards for the reception competence in asylum and immigration matters. However, of asylum seekers (OJ L 31, 6.2.2003, p. 18); in matters of regular immigration the Council will continue — Council Regulation (EC) No 343/2003 of 18 February to act unanimously and the EP is simply consulted as the 2003 establishing the criteria and mechanisms for condition of a ‘common framework’ is still far from fulilled. determining the Member State responsible for The Hague programme retains the current procedure. examining an asylum application lodged in one of Decisions will continue to be taken unanimously by 22 the Member States by a third-country national (OJ L States. 50, 25.2.2003, p. 1); — By virtue of a Protocol annexed to the Treaty of — Commission Regulation (EC) No 1560/2003 of 2 Amsterdam, Denmark has no vote. September 2003 laying down detailed rules for the application of Council Regulation (EC) No 343/2003 — The United Kingdom and Ireland also abstain from establishing the criteria and mechanisms for voting, by virtue of another Protocol to the Treaty of determining the Member State responsible for Amsterdam, but an opt-in clause allows them to examining an asylum application lodged in one of participate, on a case-by-case basis, in texts negotiated the Member States by a third-country national, OJ L by the EU. 222/3, 5.9.2003; 3. List of the main EU legislative measures and other — Council Decision 2004/904/EC of 2 December 2004 relevant legal texts since the Treaty of Amsterdam establishing the European Refugee Fund for the (a) Asylum, refugees and temporary protection (Article 63(1) period 2005 to 2010 (OJ L 381, 28.12.2004, p. 52); and (2) of the ECT) — Council Directive 2004/83/EC of 29 April 2004 on (i) Relevant international legal texts: minimum standards for the qualiication and status — 1951 Geneva Convention relating to the status of of third-country nationals and stateless persons as refugees and the 1967 Protocol relating to the status refugees or as persons who otherwise need of refugees, the prohibition of expulsion or ‘principle international protection and the content of the of non-refoulement’; protection granted (OJ L 304, 30.9.2004, p. 12). — agenda for protection of the United Nations, 26 June (iii) What are the next steps in EU policy as regards asylum? 2002. The Hague programme reinforces the idea of the ‘external (ii) The main EU legislative measures: dimension of asylum’, i.e. integrating asylum into the EU’s — Council Decision 2000/596/EC of 20 September external relations with third countries. The programme 2000 establishing a European Refugee Fund (OJ L invited the Commission ‘to develop EU regional protection 252, 6.10.2000, p. 12); programmes (RPP) in partnership with the third countries concerned and in close consultation and cooperation with — Council Regulation (EC) No 2725/2000 of 11 UNHCR’ (see COM(2005) 388 inal, 1.9.2005). December 2000 concerning the establishment of ‘Eurodac’ for the comparison of ingerprints for the Also, according to the action plan implementing the Hague efective application of the Dublin Convention (OJ L programme, the Commission is to present a proposal 316, 15.12.2000, p. 1); before the end of 2005 extending the ‘EC long-term — Council Directive 2001/55/EC of 20 July 2001 on resident status’ to refugees. minimum standards for giving temporary protection (b) Regular immigration (Article 63(3)(a) and (4) of the ECT) in the event of a mass inlux of displaced persons (i) The main EU legislative measures: and on measures promoting a balance of eforts — Council Directive 2003/86/EC of 22 September 2003 between Member States in receiving such persons on the right to family reuniication (OJ L 251, and bearing the consequences thereof (OJ L 212, 3.10.2003, p. 12); 7.8.2001, p. 12); — Council Directive 2003/109/EC of 25 November 2003 — Council Regulation (EC) No 407/2002 laying down concerning the status of third-country nationals certain rules to implement Regulation (EC) No. who are long-term residents (OJ L 16, 23.1.2004, 2725/2000 concerning the establishment of p. 44); ‘Eurodac’ for the comparison of ingerprints for the
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01_2006_4661_txt_EN.indd 331 30-10-2007 14:55:27 — Council Directive 2004/114/EC of 13 December 2004 territory of two or more Member States, of third- on the conditions of admission of third-country country nationals who are the subjects of individual nationals for the purposes of studies, pupil removal orders (OJ L 261, 6.8.2004, p. 28); exchange, unremunerated training or voluntary — Council Regulation (EC) No 377/2004 of 19 February service (OJ L 375, 23.12.2004, p. 12); 2004 on the creation of an immigration liaison — proposals for a Council directive and two oicers network (OJ L 64, 2.3.2004, p. 1). recommendations on the admission of third-country (ii) What are the next steps in EU policy as regards nationals to carry out scientiic research in the immigration? European Union (COM(2004) 178, 16.3.2004). As part of the work under the Hague programme, a policy (ii) Other relevant EU legal measures: plan on regular migration, including admission procedures, — Council Directive 2000/43/EC of 29 June 2000 is to be presented at the end of 2005. This will build on the implementing the principle of equal treatment results of the discussions on the Green Paper on an EU between persons irrespective of racial or ethnic approach to managing economic migration origin (OJ L 180, 19.7.2000, p. 22). (COM(2004) 811 inal, 11.1.2005). The integration of — Council Directive 2000/78/EC of 27 November 2000 migrants has been placed at the top of the AFSJ agenda by establishing a general framework for equal the Hague programme, where the Council reconirmed the treatment in employment and occupation (OJ L 303, need for greater coordination of national integration 2.12.2000, p. 16). policies and EU initiatives in this ield. (c) Irregular immigration (including return measures) (Article On the external dimension of migration, the Hague 63(3)(b)) programme establishes that ‘policies which link migration, (i) The main EU legislative measures: development cooperation and humanitarian assistance should be coherent and be developed in partnership and — Council Decision 2000/261/JHA of 27 March 2000 on dialogue with countries and regions of origin’. the improved exchange of information to combat counterfeit travel documents (OJ L 81, 1.4.2000, p. 1); With regard to irregular migration, the Hague programme calls for an integrated approach towards return and — Council Directive 2001/51/EC of 28 June 2001, repatriation procedures. The instruments adopted should supplementing the provisions of Article 26 of the cohere with other external policies of the Community that convention implementing the Schengen Agreement include migration aspects (e.g. partnerships with the of 14 June 1985 (OJ L 187, 10.7.2001, p. 45); countries of origin or readmission agreements). In light of — Council Framework Decision 2002/629/JHA of 19 this, the ‘external dimension of asylum and immigration’ has July 2002 on combating traicking in human beings become a principal focus within the programme. (OJ L 203, 1.8.2002, p. 1); In view of the next steps on immigration, on 1 September — Council Framework Decision 2002/946/Jha Of 28 2005, the Commission published a ‘migration package’ November 2002, on the strengthening of the penal consisting of four communications. framework to prevent the facilitation of unauthorised entry, transit and residence (OJ L 328, 5.12.2002, p. 1); Role of the European Parliament — Council Directive 2002/90/EC of 28 November 2002 The EP very much supports the developments which deining the facilitation of unauthorised entry, transit Article III-396 of the Constitution would bring about in this and residence (OJ L 328, 5.12.2002, p. 17); ield as a result of the extension of its co-decision powers as well as qualiied majority voting to all matters under — Council Framework Decision 2002/946/JHA of 28 Article 63 of the EC Treaty. November 2002 on the strengthening of the penal framework to prevent the facilitation of On immigration policy the Constitution would incorporate the unauthorised entry, transit and residence (OJ L 328, provisions of the Treaty of Amsterdam. It would provide for: 5.12.2002, p. 1); — placing European policy for legal immigration in the — Council Directive 2003/110/EC of 25 November 2003 context of the management of migration lows; on assistance in cases of transit for the purposes of — the creation of a clear legal basis for the integration of removal by air (OJ L 321, 6.12.2003, p. 26); third-country nationals. — Council Decision 2004/573/EC of 29 April 2004 on The EP actively supports the introduction of a European the organisation of joint lights for removals from the immigration policy. On the admission of third-country
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nationals, it calls for the development of legal means, On asylum policy, the EP calls for the establishment of a particularly to reduce incentives for illegal immigration. The single procedure for the European asylum system EP supports ‘controlled immigration’ and considers that the (resolution of 15 December 2004). It regrets the ‘Council’s EU’s admission policies must take into account reception inability to respect the deadlines laid down by the capacity and enhanced cooperation with the countries of European Council at Tampere, Laeken, Seville and origin. Thessaloniki for the adoption of the texts aimed at The EP adopted a resolution on 9 June 2005 on the link introducing the irst stage’ (resolution of 1 April 2004). between legal and illegal migration and the integration of As for the next stage under the Hague programme, immigrants. Parliament agreed with the Commission that Parliament supports the ‘Commission’s new approach’: the mass regularisation of illegal immigrants is not a — It considers that: solution to the problem of illegal immigration. In the absence of a common immigration and asylum system, it • this new approach should be based on the should be a one-of event, since such measures do not prerequisite of the harmonisation of national laws; resolve the real underlying problems. It called upon the • such harmonisation cannot be founded on the Commission to study the Member States’ good practices, to lowest common denominator. be developed in the framework of an information-sharing — It also rejects: and early-warning system. • the creation of regional protection zones and transit In response to the Commission’s Green Paper on an EU centres located outside the EU, which might not approach to managing economic migration, the EP guarantee an equivalent level of protection; adopted a resolution on economic migration on • outsourcing of the application process, which 26 October 2005. The EP regretted that the Council had deprives the asylum seeker of democratic scrutiny. decided to maintain unanimity and the consultation procedure in the whole area of legal immigration. The EP The creation of a European asylum policy implies greater felt that only by means of the co-decision procedure would solidarity between the Member States. Such solidarity must it be possible to adopt efective and transparent legislation enable those most exposed to an inlux of asylum seekers in that ield. It recalled that migrants have made a major to be assisted by the Union, without such intervention contribution to the prosperity and the economic, cultural being limited to cases of massive inlux. In its and social development of the Member States, and communication of 3 June 2003, the Commission suggests a continue to do so. Economic migration is a positive human fairer sharing of burdens and costs between the Member phenomenon which has always promoted the States. It proposes the establishment of an integrated development of civilisations and cultural and technological approach, taking into account not only the inancial exchanges. Parliament also regretted that the Council had aspects, but also the material aspects involved in the not yet managed to adopt a common immigration policy, reception of asylum seekers. and has concentrated essentially on the punitive aspect Parliament supports the idea of greater solidarity: (readmission agreements, police checks at borders, etc.). It — between Member States; in a resolution adopted on 11 indicated that the efective development of a common April 2000, Parliament called for the introduction of a migration policy with due regard for fundamental rights system allowing for a sharing of resources in proportion and international human rights obligations is a priority goal to the relative eforts made by each Member State; of European integration. — between the EU and third countries, in a resolution On the integration of third-country nationals, the EP: adopted on 1 April 2004, it advocated sharing the — supports the Commission’s idea of civic citizenship; it burden of taking in refugees ‘with third countries on the calls for the granting of political rights, including the basis of a partnership involving the countries of origin, right to vote in local and European elections; transit, initial refuge and destination’. — considers that EU policy must ind the ‘golden mean’ between immigrants’ rights and obligations and those g Johanna APAP of the host society; 11/2005 — warns Member States not to misuse integration policy as a way of rendering immigration impossible in practice.
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Legal basis (b) Jurisdiction of the Court of Justice (Article 68 ECT) Article 62 EC Treaty (ECT) The Court’s jurisdiction is restricted in relation to ordinary law under the ECT. Objectives B. Developments since Amsterdam To establish common standards with regard to border The Member States developed a set of rules on to cover the management and controls at the Union’s external borders control of external border crossing points and their and thus create an ‘area of freedom, security and justice’ surveillance. A new agency was set up on 26 October 2004 without controls at internal borders for persons, whatever to enhance this cooperation. In the context of enlargement their nationality, within the European Union. and of strengthening relations with its new neighbours, the Union would like to improve ‘management of external Achievements borders’. This action is being pursued under the Hague programme and two action plans: one of general scope, A. Developments brought about by the Treaty approved by the European Council of 21 and 22 June 2002, of Amsterdam and the other on maritime borders, updated by the Council In 1999, a protocol attached to the Amsterdam Treaty on 2 December 2004. integrated part of the Schengen acquis into the EU legal 3. Contributions of the Treaty of Nice framework. Article 62 ECT was designated as the legal base of any measure dealing with visas and borders. This It extends the co-decision procedure (Article 67(5)). provision asks the Council to adopt instruments ‘with a Pursuant to a Council Decision of 22 December 2004, view to ensuring the absence of any controls on persons questions of control and surveillance of EU external borders when crossing internal borders […] [and] on the crossing (Article 62 ECT) have been addressed under the co- of the external borders of the Member States’ along with decision procedure since 1 January 2005. Therefore setting out the conditions under which nationals of third decisions are taken in the Council by qualiied majority countries shall have the freedom to travel in ‘the territory of voting. the Member States during a period of no more than three 4. Further steps months’. The adoption of measures for the control and surveillance 1. Scope of the EU’s external borders is in keeping with the — Management of the low of persons entering and development of the area of freedom, security and justice. leaving the common area of freedom of movement; With the entry into force of the Treaty of Amsterdam, these — Deining a common approach to internal security in the matters came under the Community’s competence (see absence of internal controls. Section A). 2. Communitarisation of the management The conclusions of the Laeken European Council of 14 and of the external borders 15 December 2001 introduced a new concept, i.e. an ‘integrated management system for external borders.’ This (a) Decision-making procedure (Article 67 ECT) concept covers all activities exercised by the public During a transitional period of ive years from the entry into authorities of the Member States with the aim of: force of the Amsterdam Treaty: — accomplishing border control and surveillance, — for all the other measures related to Article 62 ECT (apart from those related to Article 62(2)(b)) the — analysing the risks, Commission’s right of legislative initiative was shared — anticipating personnel and facility needs. with the Member States; Parliament was simply The Treaty establishing a Constitution for Europe enshrines consulted and decisions were taken by unanimity; this concept and, should it enter into force, provides in — for measures related to Article 62(2)(b) ECT (rules on Article III-265 for its ‘gradual introduction’. The integrated visas for intended stays of no more than three months) system is based on the principle already stated in the the co-decision was used and decisions were adopted Tampere conclusions and reiterated in the Laeken by the Council acting by qualiied majority. conclusions that ‘better management of the Union’s
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external border controls will help in the ight against The European Council of 17 and 18 June 2004 called for a terrorism, illegal immigration networks and traicking in revision of the 2003 action plan to combat illegal human beings’. immigration. The Council of 2 December 2004 carried out Based on a Commission communication of 7 May 2002 on an evaluation and drew up new recommendations. integrated border management and a feasibility study of The Hague programme, adopted by the Hague Council on 30 May 2002 on a European Border Police, the Seville 4 November 2005, which sets out the objectives for European Council of 21 and 22 June 2002 approved an development of the area of security and justice for the next action plan on the management of external borders of ive years, building upon the previous ive years of the the European Union (APMEB). This document, drafted by Tampere programme, represents a new phase in the the Council, sets measures to be taken on the following development of a European policy for the management of levels: its external borders. It calls for: — legislative: the APMEB recommends adopting a — further gradual establishment of the integrated ‘common body of legislation’; management system for external borders, — operational: the APMEB contemplates implementing — the strengthening of controls at and surveillance of joint operations between national services responsible external borders. for external border control and surveillance. It also (a) Controlling the external border anticipates the introduction of pilot projects in various The crossing external borders is only allowed at ‘authorised areas, such as training, repatriation of illegal aliens or crossing points’, and during a set schedule. The list of cooperation with third countries. crossing points is found in the annex to the common The European Council of Thessaloniki on 19 and 20 June manual. This document allows for exceptions for local 2003 held that ‘a coherent approach is needed in the EU on border traic. On 14 August 2003, the Commission biometric identiiers or biometric data, which would result published a draft regulation that deines an applicable legal in harmonised solutions for documents for third-country framework on crossing the external borders. The document nationals, EU citizens’ passports and information systems sets out more lexible conditions that favour persons who (VIS (visa information system) and SIS II (second generation legally reside in the border zone. In particular, this proposal, of the Schengen information system))’. The project of which follows the 9 September 2002 communication, setting up a VIS had been decided upon by the Council in introduces a special ‘L’ visa (for local border traic), for which June 2002 following recommendations by both the Laeken the acquisition rules are less strict than those for classic and Seville European Councils. It is a system for the Schengen visas. exchange of visa data among Member States. The main objectives of the VIS are to: On 12 December 2003 the Council adopted an action plan — facilitate the ight against the use of fraudulent to combat illegal immigration through maritime routes. documents; This programme, which supplements the plan for the management of external borders, follows a study published — improve visa consultation and identiications for the in September 2003 stressing the urgent need for a application of provisions in relation to the Dublin II European policy for the management of maritime borders. regulation (which establishes the criteria and mechanism for determining the State responsible for The European Justice and Home Afairs Council of 19 examining an asylum application in one of the Member February 2004 adopted conclusions on the architecture, States of the EU) and the return procedure; functionalities and biometric identiiers to be included in the future European visa system. — enhance the administration of the common visa policy; prevent ‘visa shopping’ by ensuring the ‘traceability’ of The VIS will constitute a new instrument intended to every individual applying for a visa and strengthen EU improve external border control. It will comprise two internal security. interfaces: a central visa information system (C-VIS) and a national visa information system (N-VIS). The border guards will be able to use the VIS system to access a database on: All visas and residence permits issued to third-country nationals by Member States will contain biometric data — visas (issued, cancelled or refused), about them that can be checked against the C-VIS. Council — the holder’s biometric data. Regulation (EC) No 2252/2004 of 13 December 2004 lays down the standards for security features and biometrics in Pursuant to the provisions of the convention applying the travel documents issued by Member States. Schengen Agreement, the controls are carried out at the
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01_2006_4661_txt_EN.indd 335 30-10-2007 14:55:28 external borders of the Schengen area. This area included — training national border guards; 26 Member States, excluding the United Kingdom and — carrying out risk analyses; Ireland but including Norway, Iceland and Switzerland. The 10 new countries that joined the EU in 2006 and — following up research on control and surveillance of the Switzerland belong to the Schengen area, even if the external borders; border controls with the other Member States are being — supporting Member States in circumstances wherein temporarily maintained. On 28 November 2003, the they request increased technical and operation Council adopted conclusions to improve the low of traic assistance at external borders; and with the new Member States. In the conclusions, it — supporting Member States in organising joint return recommends adopting bilateral agreements that are operations. intended to ensure that persons should only have to stop once to undergo both entry and exit control procedures. 3. List of the main legislative measures The Hague programme underlines the necessity to rapidly — Council Decision 2002/463/EC of 13 June 2002 abolish border control with the 10 new Member States. It adopting an action programme for administrative should happen ‘as soon as possible so far as the conditions cooperation in the ields of external borders, visas, for membership to the Schengen area are fulilled and SIS II asylum and immigration (ARGO programme); is operational.’ — Council Decision 2004/512/EC of 8 June 2004 Controls on external borders are carried out at crossing establishing the Visa Information System (VIS); points situated at various locations on all the outermost — Council Regulation (EC) No 2007/2004 of 26 October limits of the Union (roads and ports) and within it (airports, 2004 establishing a European Agency for the railway stations). Surveillance of the Union’s external Management of Operational Cooperation at the borders is carried out mainly at its eastern and southern External Borders of the Member States of the European borders (Russia, Ukraine, the western Balkans, and the Union; Mashreq and Maghreb countries). — Council Decision 2004/867/EC of 13 December 2004 (b) Supervision of the external borders amending Decision 2002/463/EC; Supervision of the external borders is carried out by national — Council Regulation (EC) No 2252/2004 of 13 December authorities in the same way as it is carried out at the crossing 2004 on standards for security features and biometrics points. National cooperation between these authorities falls in passports and travel documents issued by Member under mutual assistance in police and customs matters. The States; Union encourages this cooperation through the ARGO programme. Based on a Council decision of 13 June 2002, — Council Regulation (EC) No 562/2006 of the European this programme, which also concerns the operational Parliament and of the Council of 15 March 2006 aspects of border control, supports Member States’ measures establishing a community code on the rules governing aimed at strengthening the eiciency of authorised crossing the movement of persons across borders (Schengen point controls and to ofer an equivalent level of efective Borders Code). protection and surveillance at the external borders. Also, the idea of the possible creation of a European corps of border Role of the European Parliament guards is mentioned in the Hague programme, though no The European Parliament (Parliament) supports the deadline is given due to divergence of opinion between the introduction of a European policy for the management of Member States. external borders. Parliament endorses the idea of Council Regulation (EC) No 2004/2007 establishes the strengthening international cooperation between national European Agency for the Management of Operational services and supported the creation of the European Cooperation at the External Borders. This agency, which is Agency for the Management of Operational Cooperation at also known as Frontex and is based in Warsaw, will the External Borders. However, it is against the attribution coordinate and assist Member States’ various actions in of powers to the agency for the repatriation of foreigners, managing (controlling) the common EU frontier. which could make it simply an ‘expulsion agency’ (resolution of 9 March 2004). It also supports the creation, The tasks allocated to Frontex are summarised below: in the medium term, of a Community-inanced European — coordinating the operational cooperation between the corps of border guards ‘which would in an emergency and Member States as regards the management of the at the request of the Member States, be deployed to assist external borders; national authorities temporarily at vulnerable sections of
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the EU’s external borders’ (resolution of 15 January 2003). It g Johanna APAP calls for Member States to share the burden of border 09/2006 control and surveillance and likewise encourages sharing of the efort between Member States and third countries.
4.11.4. Judicial cooperation in civil and criminal matters
Legal basis 2. The contribution of the Treaty of Amsterdam Judicial cooperation in civil matters: Article 65 of the EC and the Treaty of Nice Treaty (ECT). The Treaty of Amsterdam brought judicial cooperation in civil matters within the Community sphere although it did Judicial cooperation in criminal matters: Articles 29 and 31 not make it subject to the Community decision-making of the Treaty on European Union (EUT). procedures under ordinary law: These provisions are supplemented by Article 293 of the — the Commission does not have a monopoly on right of ECT. initiative, Objectives — the Council almost always takes decisions in this area unanimously, To enable EU citizens to apply to the courts and authorities in all the Member States just as easily as in their own — Parliament only has a consultative role. country. The Treaty of Nice allows measures relating to judicial To ensure legal certainty through recognition and cooperation in civil matters — except family law — to be enforcement of judgments and decisions throughout the adopted using the procedure in Article 251 of the ECT, in European Union. co-decision with the EP, with the Council acting by a majority. To align the legal systems in order to facilitate judicial cooperation and prevent criminals from taking advantage 3. The Tampere European Council (1999) of the diferences between the Member States. and the Hague programme (2004) The Tampere European Council stressed that citizens can Achievements enjoy freedom only in a genuine common area of justice, where everyone can apply to the courts and authorities in A. Judicial cooperation in civil matters all the Member States just as easily as in their own country. 1. Before the Treaty of Amsterdam It concluded that there was a need for closer convergence Initially, judicial cooperation in civil matters took the form of legislation, in particular with regard to cross-border of international agreements. As long ago as 1957, Article matters and automatic referral to the principle of mutual 220 of the Treaty of Rome included the option for the recognition of court decisions and pre-court decisions, Member States to act within the European Community in such as those relating to evidence. order to simplify the formalities governing the reciprocal The Hague programme stresses the need to make cross- recognition and enforcement of court judgments. border civil law procedures easier by developing judicial Since the Single European Act of 1987, which enshrined in cooperation in civil matters and mutual recognition. the Treaty of Rome the concept of a European Community Continuing to implement mutual recognition measures is without borders, the idea of a ‘European judicial area’ has an essential priority. been acknowledged. The Treaty of Maastricht incorporated 4. Main legislation adopted judicial cooperation in civil and criminal matters under Title — Council Regulation (EC) No 1346/2000 of 29 May 2000 VI as an area of common interest to the EU Member States. on insolvency proceedings;
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01_2006_4661_txt_EN.indd 337 30-10-2007 14:55:29 — Council Regulation (EC) No 1347/2000 of 29 May 2000 — work began in 1996 on a draft convention on legal on jurisdiction and the recognition and enforcement of assistance to supplement the 1959 Council of Europe judgments in matrimonial matters and in matters of convention, extending mutual assistance between parental responsibility for children of both spouses; judicial authorities and modernising the present — Council Regulation (EC) No 1348/2000 of 29 May 2000 methods; on the service in the Member States of judicial and — special instruments adopted in the area of fraud and extrajudicial documents in civil or commercial matters; corruption in the EU took the form of a 1995 convention — Council Regulation (EC) No 44/2001 of 22 December on protecting the Communities’ inancial interests and a 2000 on jurisdiction and the recognition and 1997 convention on combating corruption involving enforcement of judgments in civil and commercial civil servants of the European Communities or the EU matters; Member States; — Council Regulation (EC) No 1206/2001 of 28 May 2001 2. The contribution of the Treaty of Amsterdam on cooperation between the courts of the Member and the Treaty of Nice States in the taking of evidence in civil or commercial The last-named initiative anticipated the entry into force of matters; the Treaty of Amsterdam. The new Title VI in the EUT, dealing with police and judicial cooperation in criminal — Council Decision of 28 May 2001 establishing a matters, underlines the importance of ighting organised European Judicial Network in civil and commercial crime. It makes provision for coordinating the national rules matters; on ofences and penalties applicable to organised crime, — Council Regulation (EC) No 743/2002 of 25 April 2002 terrorism and drug traicking. establishing a general Community framework of The Treaty of Nice introduces several references to Eurojust. activities to facilitate the implementation of judicial cooperation in civil matters; 3. The Treaty establishing a Constitution for Europe This profoundly changes the existing situation by — Council Directive 2003/8 of 27 January 2003 to improve integrating most of the provisions on judicial cooperation access to justice in cross-border disputes by establishing in criminal matters into the common procedures of the minimum common rules relating to legal aid for such future Union. It provides for the possibility of establishing a disputes; European Public Prosecutor’s Oice from Eurojust. — Council Regulation (EC) No 2201/2003 of 27 November 4. The Tampere European Council and the Hague 2003 concerning jurisdiction and the recognition and programme enforcement of judgments in matrimonial matters and the matters of parental responsibility, repealing The European Council stated that it was in favour of an Regulation (EC) No 1347/2000; eicient and comprehensive approach in the ight against all forms of crime and in particular the serious forms of — Regulation (EC) No 805/2004 of the European organised and transnational crime. It highlighted the Parliament and of the Council of 21 April 2004 creating aspects linked to prevention and called for the a European Enforcement Order for uncontested claims. development of the exchange of best practices and for the B. Judicial cooperation in criminal matters network of competent national authorities and bodies to be strengthened. 1. Before the Treaty of Amsterdam The Council of Europe drew up the irst legal acts on As regards national criminal law, eforts to agree on judicial cooperation in criminal matters. With the inclusion common deinitions, incriminations and sanctions should of this sphere in the Treaty of Maastricht, a number of be focused in the irst instance on a limited number of European Union agreements joined the existing sectors of particular relevance, such as inancial crime, drug instruments: traicking, traicking in human beings, high-tech crime and environmental crime. The Council also underlined the — 1995 agreement on a simpliied extradition procedure need for speciic action to combat money laundering. based on the 1957 convention; The Hague programme stresses the need to develop — 1996 agreement on extradition between Member mutual trust and to strengthen the coordination of States of the Union, supplementing the conventions of investigations. Mutual recognition of judicial decisions in 1957 on extradition and 1977 on the suppression of criminal matters is the cornerstone of judicial cooperation. terrorism by widening the scope of extradition It implies the development of equivalent standards for proceedings; procedural rights in criminal proceedings. The
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approximation of laws, in particular by the establishment of criminal matters between the Member States of the minimum rules, is also a priority. Eurojust is a key player in European Union; judicial cooperation in criminal matters. — Council Decision of 29 May 2000 to combat child 5. A new body for cooperation: Eurojust pornography on the Internet, which aims to promote The Council Decision of 28 February 2002 sets up Eurojust the prevention of, and ight against, this type of crime in with a view to reinforcing the ight against serious crime. all Member States as well as cooperation in this ield; It aims to facilitate the coordination of action by the — Council Framework Decision of 15 March 2001 on the competent authorities for investigations and prosecutions standing of victims in criminal proceedings; covering the territory of more than one Member State. Composed of one seconded member per Member State, — Directive 2001/97/EC of the European Parliament and of who must be a prosecutor, judge or police oicer with the Council of 4 December 2001 amending Council equivalent competencies, Eurojust cooperates closely Directive 91/308/EEC on prevention of the use of the with Europol and has special links with the European inancial system for the purpose of money laundering; Judicial Network. It may call on the Member States to this directive is aimed in particular at extending the undertake investigations or prosecutions relating to identiication and reporting obligations to a number of speciic events. activities and professions likely to be used for money laundering purposes and ensuring better coverage of 6. Main legislation adopted the inancial and credit sectors; A number of acts seek to improve cooperation between — Council Framework Decision of 13 June 2002 on the various competent national authorities, in particular: combating terrorism, which aims in particular to — Joint Action 98/428/JHA of 29 June 1998 adopted by approximate the deinition of terrorist ofences, the Council on the creation of a European Judicial penalties and sanctions in all of the Member States; Network, aimed at improving judicial assistance, — Council Framework Decision of 13 June 2002 on the particularly with regard to serious crime; European arrest warrant and the surrender procedures — Council Decision of 28 May 2001 establishing a between Member States, which seeks to replace the European Crime Prevention Network, which seeks to extradition procedures with a simpliied system for promote exchanges of information and experience, surrender between judicial authorities for a range of analyse existing activities and identify the main areas for serious crimes; collaboration; — Council Framework Decision of 19 July 2002 on — Council Decision of 28 June 2001 establishing a combating traicking in human beings, which seeks to programme of incentives and exchanges, training and harmonise ofences and sanctions in this area; cooperation for the prevention of crime (Hippocrates). — Council Framework Decision of 27 January 2003 on the Its aim is to encourage cooperation among all of the protection of the environment through criminal law; public and private bodies involved in crime prevention; — Council Framework Decision of 22 July 2003 on the — Council Framework Decision of 13 June 2002 on joint execution in the European Union of orders freezing investigation teams, which aims to carry out criminal property or evidence; investigations in one or more Member States where the ofences necessitate in particular coordinated, — Council Framework Decision of 24 February 2005 on the concerted action in several Member States; application of the principle of mutual recognition to inancial penalties. — Council Decision of 22 July 2002 establishing a framework programme on police and judicial 7. Consequences of the Court of Justice judgment cooperation in criminal matters, which seeks above all in case C-176/03 (13 September 2005) to promote partnerships and the exchange of good Following this judgment the legislator is authorised, in the practice. framework of the ECT, to take measures relating to the Certain acts help to align the Member States’ legislation on criminal law of the Member States which it considers criminal procedures or the deinition of ofences and the necessary to ensure that the rules which it lays down are imposition of criminal sanctions, in particular: fully efective. Thus, if the EU has a legal basis for a policy under the ECT, it should be possible to make provision if — Council Act of 29 May 2000 establishing in necessary for penal sanctions for implementation of this accordance with Article 34 of the Treaty on European policy without being required to abide by the speciic Union the Convention on mutual assistance in provisions of the third pillar.
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01_2006_4661_txt_EN.indd 339 30-10-2007 14:55:29 Role of the European Parliament The EP’s primary concern is maintaining the balance between the objective of safety and respect for A. Civil law fundamental rights. The European Parliament (EP/Parliament) considers that the Union’s objective should be to simplify recourse to justice The principle of mutual recognition of judicial decisions is for citizens and companies and to make justice more the cornerstone of judicial cooperation. Mutual trust efective in an integrated European area, particularly by between national judicial systems should be strengthened. encouraging the emergence of a common judicial culture. The main aim is to guarantee European citizens the right to It also thinks the recognition and enforcement of justice both in comparable conditions and on the basis of judgments should be a practically automatic process ever-higher quality standards. To this end, the EP calls for between Member States, and that there is therefore an the deinition, with the Member States, of a ‘Quality Charter urgent need to encourage the compatibility of legal rules for Criminal Justice in Europe’. It has also called on the and proceedings. Commission to submit to the EP legislative proposals to improve the minimum guarantees concerning procedural B. Criminal law rights. Common minimum standards for the common basic The EP welcomes the incentive provided by the procedural safeguards would facilitate both mutual Commission and the Council — generated to a large recognition and mutual trust. extent by the attacks of 11 September 2001 — that has resulted in the adoption of important provisions, especially g Jean-Louis ANTOINE-GRéGOIRE the European arrest warrant. The establishment of Eurojust 05/2006 is also considered to be a major step forward.
4.11.5. Police and customs cooperation
Legal basis 2. The Schengen agreements (1985–90) — Police cooperation: Articles 29 and 30 of the EU Treaty The Schengen system set up liaison oicers in the signatory (EUT). states to coordinate the exchange of information on terrorism, drugs, organised crime and illegal immigration — Customs cooperation: Article 135 of the EC Treaty (ECT). networks. It introduced a right of pursuit across frontiers, The Treaty of Nice does not introduce any changes. enabling police oicers to pursue a suspect on the territory of another Member State, but Member States apply this Objectives right in diferent ways. Patrols, in some cases with oicers of diferent nationalities, carry out checks throughout the Guaranteeing citizens a high level of protection in an area Schengen territory. of freedom and security through police cooperation between the Member States. This objective is achieved 3. The Treaties of Maastricht (1992), Amsterdam (1997) through closer cooperation between police forces and and Nice (2003) customs authorities, both directly and through Europol. The Treaty of Maastricht spelt out matters of common interest on which it sought to encourage cooperation: Achievements terrorism, drugs and other forms of international crime. It also provided for a European Police Oice (Europol), A. General development of police cooperation together with a system for exchanging information 1. First eforts throughout the Union. Formal police cooperation between the Member States’ The Treaty of Amsterdam deined the objectives of the representatives began in 1976 with the creation of working Member States and the relevant authorities, calling for parties known as ‘Trevi groups’. Its main subjects were cooperation between police forces, customs authorities terrorism and the organisation and training problems of and the courts to ensure a high level of safety. It also police departments.
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increased the role of Europol. The Treaty of Nice did not of 6 December 2001. Further amendments were made in introduce any changes. 2003 to reinforce the operational support that Europol 4. The Treaty establishing a Constitution for Europe provides to the national police authorities. These provisions (2004) are not yet in force. Police cooperation was integrated into EU policies and 2. Organisation Europol was integrated into the institutional framework. (a) Administration European law governs its structure, operations, sphere of Europol’s budget is inanced by contributions from the action and missions. Member States and thus does not come under the EU budget. 5. The Tampere European Council (1999) It is dependent upon the Council, which is responsible for and the Hague programme (2004) monitoring its activities and, in particular, appointing its The adoption of the Hague programme by the European director. About 590 people, including liaison oicers from the Council has provided the EU with a new ive-year Member States, work for Europol (headquarters: The Hague). programme, as a follow-up to the plan adopted in Tampere. Its budget is EUR 63.4 million (2006). Europol is to play a central role in the ight against serious (b) Means of action forms of organised crime and cross-border terrorism. The — The Council Act of 28 November 2002 provides for European Police College (CEPOL) will help to increase Europol’s participation in joint investigation teams. It mutual conidence in order to improve police cooperation. also authorises Europol to ask the Member States to The ight against terrorism is a matter of the utmost conduct criminal investigations. importance. — The Council Decision of 27 March 2000 authorises the B. The European Police Oice (Europol) director of Europol to hold negotiations to conclude 1. Mission agreements with third countries and bodies. In this Created by a Council Act of 26 July 1995 (drawing up the respect, Europol has notably signed cooperation convention on the establishment of a European Police agreements with Interpol and, in December 2002, with Oice), Europol began to operate on 1 July 1999. It the United States. In 2004, Europol signed an agreement replaced the Europol Drugs Unit, created as an interim with Eurojust. measure in 1995. C. The European Police College (a) Original mandate The European Police College (CEPOL) was created through Europol’s objective is to improve the eiciency of the the Council Decision of 22 December 2000, replaced by competent services in the Member States and their that of 20 September 2005. cooperation in the ight against terrorism, drug traicking The college’s objective is to optimise cooperation between and other serious forms of international crime such as the various national institutes and to contribute to the traicking in nuclear and radioactive products, illegal training of senior oicers of the Member States’ police immigration networks, traicking in human beings, forces. It supports and develops a European approach to traicking in stolen cars and money laundering connected the major problems encountered by the Member States. To with these types of crimes. The Council may also decide to this end, it conducts training sessions, participates in the entrust Europol with responsibility for other forms of crime. development of harmonised training programmes, and Europol’s priority tasks are as follows: facilitating the disseminates best practice and research results. exchange of information between Member States, collating The college takes the form of a network made up of the and analysing information and intelligence, aiding national institutes for the training of high-ranking police investigations in the Member States by notifying them of oicials. It has a permanent secretariat (headquarters: any relevant information, and maintaining a computerised Bramshill, United Kingdom) and legal personality. From system of information collected directly from the Member 2006 onwards its budget is the responsibility of the EU. It States. will therefore appear in the EU budget. (b) Extension of its mandate D. Other instruments for cooperation Europol’s mandate was successively extended to include The Task Force of the Police Chiefs of the Member States money laundering in general (irrespective of the type of was established in October 2000. It meets at least once crime connected with the money laundered) by the during each six-month presidency of the Council. Council Act of 30 November 2000 and then all of the aspects of international organised crime set out in the The European Network for Crime Prevention has met since annex to the Europol Convention by the Council Decision 2001 to enable the exchange of experiences and good
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01_2006_4661_txt_EN.indd 341 30-10-2007 14:55:29 practice between the national oicers responsible for crime On 26 July 1995, a convention established a common prevention in each Member State. automated information system, or ‘Customs Information The European Forum for the Prevention of Organised Crime System’ (CIS). The aim of this database is to disseminate has, since 2001, brought together various groups, both public information more rapidly and to increase the eiciency of and private, who are interested in discussing these questions. the cooperation and control procedures of the customs authorities of the Member States. This convention entered The Schengen Information System, operational since 1995, into force in November 2000 between the Member States permits the registration and consultation of a certain that had ratiied it. amount of data. It enables veriications to be carried out at external borders as well as inside the Schengen area. A A convention signed on 18 December 1997, known as second-generation information system (SIS II) should be Naples II, regulates in particular the arrangements for cross- operational in 2007. border assistance and cooperation between the customs administrations of the Member States. It is currently in the Joint investigations teams, created by the Council process of being ratiied and some Member States have Framework Decision of 13 June 2002, may be instituted to already decided to apply it among themselves. carry out criminal investigations in one or more Member States. Europol representatives may participate in them. A European Parliament (EP/Parliament) and Council Decision of 19 December 1996 established an action programme for E. The ight against terrorism customs in the Community, known as the Customs 2000 The European Council has named terrorism as one of the programme. It seeks to ensure uniform application of major threats to the EU’s interests. In 2001 it drew up a plan Community rules, prevent fraud and illegal traicking, and of action, revised in 2004, setting out the EU’s strategic improve the eiciency of the national customs authorities objectives in the ight against terrorism. In December 2005 and cooperation among them. On 11 February 2003, this the Council adopted a new EU strategy to combat terrorism. programme was replaced by the Customs 2007 action programme, which covers the period 2003–07. The European Council appointed a Counter-Terrorism Coordinator in 2004. He coordinates the Council’s work and Some new proposals seek to reinforce customs ensures efective monitoring of its decisions. cooperation regarding the prevention of money laundering, control of the EU’s external borders and the Some instruments, adopted as part of judicial cooperation ight against counterfeiting and pirating. in criminal matters, contribute directly to the ight against terrorism; these are connected to money laundering and the European Arrest Warrant. Speciic legal measures have Role of the European Parliament been adopted since 2001: the deinition of terrorist acts The EP considers that the creation of Europol is a vital and the harmonisation of sanctions, the freezing of measure in the ight against organised crime in the EU. It accounts of people linked to a terrorist organisation, a list stresses that in a system governed by the rule of law, of organisations and individuals to be considered terrorists, policing must be subject to parliamentary control, a mechanism to evaluate the application at a national level although the Europol Convention only makes provision for of the international commitments with regard to the ight an annual activity report to be submitted to Parliament. It against terrorism and the allocation of new functions to the therefore calls for Europol to be integrated into the EU’s Schengen Information System. institutional framework and thus be submitted to the Since September 2001, the heads of the anti-terrorist units democratic control of the EP, the judicial control of the in the Member States’ intelligence services have been Court of Justice, and inancial and budgetary control in meeting regularly. accordance with the EU’s usual provisions in this respect. Europol should therefore become a European agency. A Council recommendation proposes the formation of ad hoc multinational investigation teams to collect and The EP emphasises that the framework and methods of exchange information regarding terrorists. cooperation between Europol, Eurojust and the European Anti-Fraud Oice (OLAF) must be clearly deined. A directive on the retention of telecommunications data was adopted in February 2006, in connection with the ight The EP strongly criticises the clumsiness of the procedures against terrorism and organised crime. for amending the Europol Convention, which require ratiication by the Member States and are delaying the F. Customs cooperation entry into force of the new provisions. It requests that the On 7 September 1967, a convention on mutual assistance Council decisions be applied, in application of Article 34(2) between customs administrations was signed in Rome. of the EUT.
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The EP emphasises that terrorism is the main problem use of the present Article 42 of the EUT, which speciies this afecting European coexistence and security. It proposes possibility — to make the shift to the co-decision that 11 March should be declared the European Day of procedure with Parliament, to use the qualiied majority Commemoration of Victims of Terrorism, as approved by within the Council and to extend the Court’s powers, the European Council. prioritising the measures regarding the ight against In a more general way, the EP emphasises that it is terrorism and international crime. necessary to reinforce the legitimacy of the area of freedom, security and justice through deciding — in g Jean-Louis ANTOINE-GRéGOIRE accordance with the spirit of the Constitution and making 05/2006
4.12. Energy policy
Legal basis — promote energy eiciency and energy saving and the — Coal: ECSC Treaty, particularly Article 3 and Articles 57– development of new and renewable forms of energy. 64 (expired in 2002); Objectives — Nuclear energy: European Atomic Energy Community (EAEC) or Euratom, in particular Articles 40–76 EU energy policy is still directed towards the long-term (investment, joint undertakings and supplies) and 92– energy objectives irst set out in 1995 in the ‘White Paper 100 (the nuclear common market); on Energy Policy for the EU’ (COM(95) 682), followed by the Green Paper ‘Towards an European Strategy for the security — Overall energy policy and energy policy in other ields: of energy supply’ (COM(2000) 769 and subsequent report EC Treaty (ECT), particularly Articles 100 (supply on it, COM(2002) 321). Commission, Parliament and Council diiculties) and 308; emphasise that energy policy must form part of the general The most recent revision of the EU Treaty (EUT) has still not aims of EU economic policy based on market integration managed to include a separate chapter on energy. Energy and deregulation, and public intervention must be limited policy has simply been incorporated in the list of objectives to what is strictly necessary to safeguard the public interest (Article 3(u)); the subject of ‘energy’ is also included under and welfare, sustainable development, consumer the Title ‘Environment’ (Title XIX; Article 175, §2). In addition protection and economic and social cohesion. However, the Treaty mentions the Trans-European networks, which beyond those general aims energy policy must pursue include energy infrastructure (Title XV, Articles 154, 155 and particular aims that reconcile competitiveness, security of 156 in connection with Article 158). supply and protection of the environment. In 2005, the The EUT thus conirms that the sphere of activity of the EU Commission published a ‘Report on the Green Paper on encompasses the energy sector. It is clear that certain Energy’ (ISBN 92-894-8419-5) that proposes initiatives to Member States are as yet not prepared to transfer promote actions towards a better and more suicient important responsibilities to the EU. According to the energy supply. subsidiarity principle, energy policy must be largely Another green paper on ‘energy eiciency’ was adopted by regarded as the Member States’ responsibility. the Commission in 2005, which proposes actions in The Treaty establishing a Constitution for Europe would, if Member States to promote a better use of all energy- adopted, contain a distinct chapter on energy. In Article I- sources (COM(2005) 265l). It was followed by the ‘Green 14, paragraph 2(i), energy is deined as a shared Paper: a European Strategy for Sustainable, Competitive competence; and in Section 10, Article III-256, the following and Secure Energy’, COM(2006) 105). This set out new is outlined as aims for the Union’s policy on energy: energy realities facing Europe based on three main objectives: sustainability, competitiveness and security of — ensure the functioning of the energy market; supply. The overall framework — the irst ‘Strategic EU — ensure security of energy supply in the Union, and Energy Review’ — should help to achieve these objectives.
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01_2006_4661_txt_EN.indd 343 30-10-2007 14:55:30 Concrete proposals are made such as completing the measures. There is some opposition to individual measures internal gas and electricity market, ensuring that EU’s and much controversy on whether and in what form at EU internal energy market guarantees security of supply and level. solidarity between Member States, asking for a real Community-wide debate on the diferent energy sources, Achievements dealing with the challenges of climate change in a manner compatible with the Lisbon objectives, relying on a A. Energy generation and consumption: general survey strategic energy technology plan and enhancing a In the past three decades, the EU has achieved a degree of common external energy policy. success as regards its energy objectives (reduction of energy dependence, development of crude oil substitutes, The European Council on 23 and 24 March 2006 called for energy saving, etc.). Since 1975, it has been possible to an energy policy for Europe (EPE) and invited the increase primary energy production considerably, Commission and the Council to prepare a set of actions especially as a result of increased oil production in the UK. with a clear timetable enabling it to adopt a prioritised Despite a considerable increase in economic output, the action plan at its meeting in spring 2007. rise in gross domestic energy consumption in the EU has EPE should be based on shared perspectives on long-term been relatively low (total consumption for the EU-12 was supply and demand and an objective, transparent 1 100 million toe in 1990, and for the EU-25 1 131.6 million assessment of the advantages and drawbacks of all energy toe in 2003; energy consumption increased, but at a slower sources and contribute in a balanced way to its three main pace in the last few years — approximately 0.8 % per year objectives: currently). This trend, however, has changed in recent years — increasing security of energy supply through the as dependence is projected to be 70 % in 2030, but not development of a common external policy approach ultimately due to declining oil production in the UK. The EU and dialogues with Member States and partners; currently imports 76.6 % of its oil demand, 53 % of its gas demand and 35.4 % of its coal demand and by 2030 it is — ensuring the competitiveness of European economies estimated that the EU will be 90 % dependent on imports and the afordability of energy supply by working with of oil and 80 % of gas. Member States to complete the opening of the internal market for electricity and gas for all consumers by mid- However, there are still considerable diferences between 2007. A transparent implementation of internal market the Member States as regards production and legislation is needed; consumption, energy dependence and in particular the attainment of energy conservation objectives and crude oil — promoting environmental sustainability by substitution. There are also great diferences between the strengthening the EU leadership by adopting an action Member States concerning the share of individual energy plan on energy eiciency, continuing the development sources in total consumption. This is attributable not only of renewable energies, implementing the Biomass to structural diferences between the Member States but Action Plan counting on support from RD&D. also to diferent national energy objectives (for example in Apart from the general energy objectives, the EU has set respect of nuclear energy). various sectoral objectives including maintaining the In order to harmonise the internal market in energy, a percentage of solid fuel (coal) in total energy consumption regulation was adopted in 2003 which sets rules for cross- (in particular by making production capacity more border exchanges of electricity (EC 1228/2003). In addition, competitive); increasing the ratio of natural gas in the Directive 2003/54 sets common rules for the internal energy balance; establishing maximum safety conditions as market in electricity, and Directive 2003/55 creates the a prerequisite for planning, construction and operation of same mechanism for the internal market in natural gas. nuclear power stations; increasing the share of renewable European Union legislation states that, from July 2007 at sources of energy. While the EU has achieved undeniable the latest, all consumers should be free to shop around for success in pursuing the above objectives, the success rate gas and electricity supplies. Further, the EU aims to ensure of the various Member States in achieving these objectives that infrastructure, such as electricity and gas transmission is still very unequal. networks, is improved, to transport energy as eiciently as The Commission, Parliament and the Council are agreed possible to where it is needed. Finally, regulators have been that an efort should be made to at least double the established in each EU country with the intention of proportion of renewable energy sources in total energy ensuring that suppliers and network companies operate consumption to 15 % by 2010 (substitution principle). The correctly and provide the services promised to their Commission has to translate this goal into concrete customers (Regulation 1775/2005 addresses conditions for
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access to the natural gas transmission networks; and made nuclear energy highly controversial. Abandonment Directive 2004/67/EC the issue of security of gas supply. of nuclear power is at the earliest a medium-term prospect The regulation of access to gas transmission networks is but, in any event, greater eforts must be made to improve addressed in COM(2003) 741). the safety standards of nuclear power stations. Despite the EAEC Treaty, the Commission’s powers are far from B. Individual sectors (sectoral aspects) of energy adequate (for example, no uniform standards for safety and policy discharges; no EU consultation procedure concerning 1. Coal and other solid fuels power stations sited near frontiers; no clear EU provisions EU energy policy objectives are to promote the use of coal for the storage and transport of nuclear fuels or nuclear and make domestic production capacity more competitive waste; diiculties in establishing basic standards of to achieve a notable increase in solid fuel consumption. radiation protection; no adequate EU system of information Enlargement of the EU in May 2004 meant a change for the and monitoring in cases of nuclear malfunctions; no agreed role of coal in the EU in respect of coal reserves and patterns emergency procedures in case of disaster, etc.). of production as well as consumption. Since enlargement in In the Green Paper on energy security, nuclear power was 2004, a number of energy-related issues have been grouped (together with coal, oil, gas and renewables) as a discussed intensively in the EU — including security of ‘less than perfect’ energy option, and the question was supply, not least sparked by the Ukraine–Russia gas dispute raised how the EU can develop fusion technology and at the beginning of 2006. Currently, reviews of status quo reactors for the future; reinforce nuclear safety; and ind a and efects of the adopted regulation of the European solution to the problem of nuclear waste. As nuclear safety energy markets are being undertaken by the Commission. could no longer be considered from a purely national Coal combustion is associated with emissions of air perspective, in January 2003, and in preparation for pollutants (such as sulphur dioxide) and carbon dioxide (C0 ). 2 enlargement, the Commission adopted a new approach to However, coal is an abundant fuel and will play an important safety of nuclear facilities and nuclear waste (COM(03) 32). role in energy security discussions as well as other issues (for In 2004, the Commission put forward a revised proposal, instance on energy mix, co-utilisation, self-reliance, etc.). COM(2004) 526 based inter alia on the EP’s suggestions Many Member States have coal reserves, which creates both which were grouped around two new directives: one in the employment and export opportunities. Given that coal is ield of safety of nuclear facilities (adopted inally as a likely to remain an important fuel for power generation Council regulation in 2006), and another on radioactive worldwide in the next decades, much has been done to waste management. develop the economic and technological potential of clean coal. Clean coal technologies (CCT) have been developed 4. Renewable sources of energy and energy eiciency and employed and still hold potential for further Promoting renewable energy is one of the main objectives development. Increasingly carbon dioxide capture and of EU energy policy. As stated previously, the aim is to double storage (CCS) has been developed as an option to mitigate renewables’ share of total energy consumed to 15 % by 2010 greenhouse gas emissions (). The diferent CCS elements and and increase renewable energy sources for the internal technologies have reached diferent stages of development, electricity market to 22.1 % of the total production (Directive but overall constitute a set of interesting options for 2001/77). Decision 1230/2003 ‘Intelligent Energy for Europe’ contributing to meet both future demand for electricity and contains measures to promote renewables and increase objectives to limit climate change (achieving Kyoto and energy eiciency. There are sub-programmes supporting post-Kyoto targets). sustainable development projects and expanding 2. Hydrocarbons cooperation between the EU and developing countries for renewable energy sources. The framework programme is EU energy policy objectives are to substitute crude oil by worth EUR 200 million for the period 2003–06, though both other forms of energy while also encouraging prospecting the Commission and the European Parliament (EP/ (ofshore exploration, etc.) and the exploitation of Parliament) argued for much more money. indigenous hydrocarbons. Security of supply is to be encouraged by diversifying sources and by EU rules on In 2002 Directive 2002/91 on the energy performance of obligatory reserves (Member States must keep 90 day’s buildings (in particular insulation, air conditioning and the stocks of the main petroleum products based on the use of renewable energy sources) was adopted (due for previous year’s igures). implementation in 2006). This is concerned, irst and foremost, with a method for calculating the energy 3. Nuclear energy and nuclear fuels performance of buildings, minimum requirements for new Nuclear energy is still accorded a key role in EU energy and existing large buildings and energy certiication. policy objectives. However, the 1986 Chernobyl disaster
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01_2006_4661_txt_EN.indd 345 30-10-2007 14:55:30 With its proposed directive of July 2002 (COM(2002) 415), agricultural crops, by creating market-based incentives and the Commission wanted to push ahead with the removing barriers to market development. The development and use of cogeneration or combined heat Commission’s communication ‘An EU Strategy for Biofuels’, and power production (CHP). The production of electricity COM(2006) 34 of 8 February 2006 aimed to further and heat in a single integrated process leads to savings in promote biofuels and prepare for their large-scale use, and primary energy, and is therefore a further means of fulilling explore opportunities for developing countries. the EU’s energy policy objectives. The proposal gave rise to The ‘Green Paper: A European Strategy for Sustainable, controversial discussions in both the Council and the EP, Competitive and Secure Energy’ places particular emphasis and is mainly concerned with establishing a uniform onto renewable energy, the full potential of which will only deinition for electricity produced in CHP plants. The be realised through a long-term commitment to develop directive was adopted in co-decision in February and install renewable energy. In addition to this the 2004(2004/8). Commission intends to carry out a renewable energy road In May 2003, Directive 2003/30 on the promotion of the map. use of biofuels or other renewable fuels for transport was adopted. The directive aims at promoting the use of C. Research, development and demonstration projects biofuels or other renewable fuels to replace diesel or petrol ("4.13.0.) for transport purposes in each Member State, with a view The EU framework programme of research encompasses to contributing to objectives such as meeting climate many energy, R & D and demonstration projects to support change commitments, environment-friendly security of energy policy objectives. These are designed to improve supply and promoting renewable energy sources. The the acceptance level, competitiveness and scope of directive asks Member States to ensure that a minimum application of traditional energy (e.g. reactor safety and proportion of biofuels and other renewable fuels is placed management of radioactive waste; gasiication and on their markets, and, to that efect, to set national liquefaction in the case of coal), encourage the adoption of indicative targets. Reference values for these targets new forms of energy (alternative energy sources, new provided in the directive are 2 % by 31 December 2005 and technologies for a sustainable energy supply, nuclear 5.75 % by 31 December 2010 calculated on the basis of the fusion) or energy saving and rational use. energy content of all petrol and diesel for transport The seventh framework programme of the European purposes placed on their markets. Community for research, technological development and On 5 April 2006, the Directive 2006/32/EC on energy end- demonstration activities runs from 2007 to 2013 use eiciency and energy services (repealing Council (COM(2005) 119) and this sets targets for research to be Directive 93/76/EEC) was adopted. This aimed to boost done to achieve the main targets of energy reduction. energy eiciency in the EU and promote the market for Moreover, it proposes a wider cooperation and energy services (such as lighting, heating, hot water, concentration of research in this area, including proposals ventilation, etc.). for funding these actions (see also Fact Sheet 4.13). In May 2004, the Commission adopted a communication to D. Internal market Council and Parliament which proposed an evaluation of In the energy sector, the completion of the internal market the efect of the contribution of renewable energy sources requires the removal of numerous obstacles and trade in the EU and put forward proposals for concrete actions barriers, the approximation of tax and pricing policies and (COM(2004) 366). measures in respect of norms and standards and Subsequently, in its resolution on the share of renewable environmental and safety regulations. Following the energy in the EU and proposals for concrete actions directives adopted in 1990 and 1991 on transit of electricity (2004/2153(INI)) the EP recognised the exceptional and gas, a further opening of the electricity networks for importance of renewable energies and stressed the large industrial customers (‘Third Party Access’ (TPA)) was importance of setting mandatory targets for 2020 that send agreed on 25 July 1996 (Directive 96/92). Directive 98/30 for a clear signal to market actors as well as national policy the gas market was adopted on 22 June 1998. The makers, emphasising that renewable energies are the Commission will report annually to Parliament on the future of energy in the EU and part of EU environmental implementation of the two directives. and industrial strategy. The Commission followed with a With two further directives for electricity (2003/54) and gas communication ‘Biomass Action Plan’, COM(2005) 628 of 7 (2003/55) — together with Regulation 1228/2003 on December 2005 that set out measures to increase the conditions for access to the network for cross-border development of biomass energy from wood, waste and exchange in electricity — the energy markets in electricity
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and gas were to be fully open to competition by 2005 reduce its CO2 emissions by 8 % from 1990 levels by 2008– (2007 for household customers). As not each Member State 12. After a long and controversial debate, in July 2003, the has taken appropriate actions to implement the directives, directive on greenhouse gas emissions (2003/87) was in April 2006, the Commission sent infringement letters to accepted. By 2005, one of the largest emissions trading those Member States where issues subsisted concerning scheme (ETS) in the world was created and is currently priority allocation of cross-border network capacity in undergoing review — a second stage is under favour of pre-liberalisation contracts. Currently, the consideration for 2012. The accession of new Member Commission is examining the responses from Member States to the EU will create the need to include them into States and assessing whether further action is needed. For the internal energy market to beneit from open several Member States, priority access has already been competition, improvement of energy eiciency and the removed. gradual introduction of renewable energy sources. National regulatory authorities will be established to supervise public service obligations, security of supply and Role of the European Parliament tarif formation. In future, the source of electricity will have Parliament’s main task is to convince Member States that to be accurately labelled. In order to strengthen the long-term common interest in solving these problems competition in the internal electricity market and promote at EU level is more important than short-term national investment in energy infrastructure and security of supply interests where other solutions may be given preference. Directive 2005/89/EC of 18 January 2006 (concerning Parliament has repeatedly advocated a separate chapter on measures to safeguard security of electricity supply and energy, now planned for the irst time in the European infrastructure investment) was adopted (accompanied by Constitution. In the current discussion on the EU’s future another initiative of the Commission on Energy energy policy, Parliament is now pressing even more Infrastructure and Security of Supply COM(2003) 743). The vigorously for the implementation of important energy proposed new regulation on access to gas transmission policy objectives (increasing energy eiciency, developing networks (COM(2003) 741) was adopted by the Council on alternative sources of energy and secure energy supply 12 December 2007. systems, combating the greenhouse efect and pursuing
Directive 2003/96 introduced a new EU system for taxation international cooperation and clariication in respect of CO2 of energy products. The proper functioning of the internal and energy taxes). market and the achievement of the objectives of other EU Two important initiatives were adopted by Parliament in policies require minimum levels of taxation at EU-level for 2005, the irst on oil dependency (PE A6-0509/2005) calling most energy products, including electricity, natural gas and for a wider action to diversify energy sources and create a coal. Moreover, the taxation of energy products and, where coherent global energy strategy, and the second a appropriate, electricity is one of the available instruments resolution on the share of renewable energy (A6- to achieve the Kyoto Protocol objectives. Directive 2003/96 0227/2005) with which Parliament calls for concrete actions widens the scope of the EU minimum rate system — to replace classical energy sources by using all other currently limited to mineral oils — to all energy products, renewable energy, namely wind power, hydropower plants, chiely coal, gas and electricity. solar-thermal power, geothermal plants and biomass. The Commission has further proposed directive On 14 February 2006, the EP adopted a resolution (COM(2003) 739) setting targets for a more efective end- containing recommendations on heating and cooling from use of energy and energy services. This proposal was renewable sources of energy (INI/2005/2122). The objective adopted by Council on 4 April 2006. of the proposal is to evaluate and exploit economic potential with the aim of increasing the share of renewable E. Greenhouse efect and international cooperation energies used in heating and cooling in the EU from the The EU has stressed its commitment to international present level of approximately 10 % to a realistic though cooperation and ighting the efect of greenhouse gas ambitious igure of at least 20 % by 2020 whilst setting emissions. However, the 1992 proposal for a carbon dioxide binding national targets. and energy tax (COM(92) 0226) has not yet been implemented, because of strong opposition by a number In March 2006, the EP adopted a joint resolution on security of Member States and lack of support from the main of energy supply in the EU, urging the Commission and the competitors (USA and Japan) on international markets. The Council to achieve a more resolute and concrete European importance of an agreed action plan to reduce greenhouse energy policy together with new, ambitious targets.
gases (particularly CO2) became clear at the UN Kyoto In its own initiative report on the Green Paper on energy conference in December 1997. The EU has promised to eiciency or doing more with less, INI/2005/2210, the EP
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01_2006_4661_txt_EN.indd 347 30-10-2007 14:55:31 proposed the creation of an energy eiciency fund by for Europe that incorporates producers, distributors and which local energy and environment agencies would consumers, and creates a transparent and sustainable receive inancial support. energy system that enhances the regional diversity of The EP has also considered the international aspects in its energy supplies. ‘Non-legislative resolution on EU–Russia relations’, INI/2004/2170. The resolution emphasises the need to g Miklos GyöRFFI further develop and implement a common energy strategy 09/2006
4.13. Policy for research and technological development
Legal basis Euratom Treaty was left unchanged and the Euratom Community Research and Technological Development ‘Framework Programme’ is adopted unanimously by the (RTD) policy was originally based on Article 55 of the Council following a single reading in Parliament. Speciic European Coal and Steel Community (ECSC) Treaty (expired programmes within the FP are adopted by qualiied in 2002); Articles 4 to 11 of the European Atomic Energy majority in the Council, following simple consultation of Community (EAEC) Treaty (Euratom: nuclear research); and the EP. Rules for the participation of undertakings, research Articles 35 and 308 of the European Community (EC) Treaty. centres and universities in the EC FP were adopted by An important milestone in the development of a European separate Council decision (cooperation procedure) for the RTD policy was the adoption of four Council resolutions on 4th and 5th EC FP, and by EP and Council Regulation (co- 14 January 1974, notably one concerning the coordination decision procedure) for the 6th EC FP. of national policies and the deinition of projects of interest to the Community in the ield of science and technology Objectives and one on the need for the Community to have its own The aim of Community RTD policy, since the SEA, has been science and technology policy. to strengthen the scientiic and technological bases of Title XVIII ‘Research and technological development’ of the European industry and to encourage it to become more EC Treaty (ECT) was introduced by the Single European Act competitive at international level. Promoting industrial (SEA), which entered into force on 1 July 1987, and competitiveness was central to the FPs as deined by provided a new and explicit basis for RTD policy, based on Member States in the mid-to-late 1980s. This key provision multi-annual framework programmes. was amended in 1993 (Maastricht Treaty) by adding the phrase ‘while promoting all the research activities deemed According to the SEA, the framework programme (FP) was necessary by virtue of other Chapters of this Treaty’ (Article adopted by unanimity in the Council, after a single 163 of the ECT). consultation of the European Parliament (EP/Parliament). With the entry into force of the Maastricht Treaty on Article 164 of the Treaty speciies: ‘In pursuing these 1 November 1993 co-decision by the Council and objectives, the Community shall carry out the following Parliament for the adoption of the EC FP was introduced, activities, complementing the activities carried out in the while maintaining the requirement for unanimity in the Member States: Council. Article 7 of the Euratom Treaty (unanimity in — implementation of research, technological Council, no formal requirement to consult Parliament) was development and demonstration programmes, by left unchanged. promoting cooperation with and between With the entry into force of the Amsterdam Treaty on 1 May undertakings, research centres and universities; 1999 the requirement for Council unanimity to adopt the — promotion of cooperation in the ield of Community EC FP was replaced by qualiied majority. Once again the research, technological development and
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demonstration with third countries and international — direct actions carried out by the Joint Research Centre organisations; (JRC) located at Ispra (Italy), Geel (Belgium), Petten — dissemination and optimisation of the results of (Netherlands), Karlsruhe (Germany) and Seville (Spain), activities in Community research, technological and entirely inanced by the Community; development and demonstration; — indirect actions, which can be either (i) collaborative — stimulation of the training and mobility of researchers in research projects carried out by consortia of legal the Community’. entities in Member States, associated and third countries and inanced by the Community to a maximum of 50 %, Article 165 provides that: ‘The Community and the Member or (ii) coordination and support actions inanced by the States shall coordinate their […] activities so as to ensure Community to a maximum of 100 %, or (iii) host and that national policies and Community policy are mutually individual-driven actions for the purposes of researchers’ consistent’. mobility in the context of various Marie Curie fellowship, grant and award schemes with a maximum Community Achievements contribution of 100 %. A. Community RTD policy: a short review C. The 6th Framework Programme (2002–06) The main instrument of Community RTD policy is the 1. Background multi-annual FP, which sets objectives, priorities and the The 6th RTD Framework Programme (FP6) was adopted on 27 inancial package of support for a period of several years June 2002 (Decision 1513/2002 of the EP and the Council). (usually ive, with planning for successive FPs overlapping The programme runs from 1 January 2003 to 31 December by one or two years, but with distinct inancial envelopes 2006. FP6 was specially designed to promote the usually running over four years). With the 1st FP (1984–87), establishment of a European Research Area (ERA) endorsed by Community RTD activities were for the irst time the Lisbon European Council in March 2000 and supported by coordinated as part of a single, structured framework. The the EP. The creation of an ERA aims at: (i) ensuring the free main aim of the 2nd FP (1987–91) was to develop movement of researchers, ideas and technology in Europe; (ii) technologies for the future, integrating major Community overcoming the fragmentation of European research and programmes in the areas of information technology creating a critical mass; and (iii) coordinating national and (ESPRIT), materials (EURAM), industrial technologies (BRITE) European programmes and policies. and advanced communications technologies (RACE). The 3rd FP (1990–94) broadly followed the same lines, focusing 2. Instruments on fewer lines of action, but also on the dissemination of FP6 introduced two new instruments with the aim of research results. In April 1994, after a long and diicult speciically addressing the problem of fragmentation of procedure, Council and Parliament (in the irst ever co- European research and increase its impact: decision) adopted the 4th FP (1994–98). This programme — networks of excellence, which aim at progressively built on the previous initiatives, but contained several integrating partners’ research capacities for the purpose important innovations, such as a new programme on of promoting Community scientiic and technological targeted socio-economic research. The 5th FP (1998–2002) excellence; marked a shift from research concentrating largely on — integrated projects, which are substantial in size and technical performance towards research and innovation aim at constituting a critical mass in research activities addressing targeted socio-economic objectives. focusing on clearly deined scientiic and technological B. Implementation of R&TD policy objectives. A typical Community-funded project involves legal entities, i.e. In addition, Article 169 of the ECT was applied for the irst universities, research centres, businesses, including small and time to a partnership between European and developing medium-sized enterprises (SMEs), or individual researchers, countries for carrying out a programme of clinical trials to from several Member States, associated and third countries. A combat AIDS, malaria and tuberculosis. balanced representation of industry and academia is generally 3. Budget and lines of action pursued. There are also special actions to support the development of research activities in the less-favoured regions The initial FP6 budget of EUR 17.5 billion, of which EUR 1.23 of Member States and associated candidate countries. The FP billion was for Euratom, was later increased to EUR 19 235 is implemented through speciic programmes. The million, of which EUR 1 352 million was for Euratom, to take Community has several means at its disposal to achieve its enlargement into account. The overall inancial amount for RTD objectives within these speciic programmes: the EC FP (EUR 17 883 million) was distributed among diferent activities as follows:
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01_2006_4661_txt_EN.indd 349 30-10-2007 14:55:31 (a) Focusing and integrating Community research (including instrument for the dissemination of information about thematic priorities). Budget: EUR 14 682 million: calls for proposals and the FP in general, as well as about — life sciences, genomics and biotechnology for health: related policy issues, is the Commission-supported EUR 2 514 million; CORDIS server. The RTD info magazine also provides information. — information society technologies: EUR 3 984 million; At national level in the Member States, associated countries — nanotechnologies, materials and new production and other partner countries, there are national contact processes: EUR 1 429 million; points (NCPs) to supply information on the FP and assist — aeronautics and space: EUR 1 182 million; potential applicants. — food quality and safety: EUR 753 million; (d) Proposal evaluation and selection of projects — sustainable development, global change and Project evaluation usually comprises a single step. For ecosystems: EUR 2 329 million; particular activities a two-phase procedure is applied: participants are irst invited to submit a summary proposal; — citizens and governance in a knowledge-based society: if their initial application is accepted, they are invited to EUR 247 million; submit a detailed proposal. Projects are selected for — speciic activities covering a wider ield of research: funding by Commission decision, following inter-service EUR 1 409 million (including horizontal research consultation and a comitology procedure. activities involving SMEs with a budget of EUR 473 (e) International cooperation million and speciic measures in support of international cooperation with a budget of EUR 346 million); International cooperation (INCO) is implemented in FP6 through: (i) opening of the thematic priorities to third- — non-nuclear activities of the JRC: EUR 835 million. country entities with funding available for INCO-targeted (b) Structuring the ERA. Budget: EUR 2 854 billion: countries (developing countries, Mediterranean countries, — Research and innovation: EUR 319 million; including the western Balkans, Russia and the New Independent States); (ii) speciic measures in support of — Human resources: EUR 1 732 billion; international cooperation involving INCO-targeted — Research infrastructures: EUR 715 million; countries; (iii) international activities under ‘Human — Science and society: EUR 88 million. resources’. Finally, the Community has concluded a number of bilateral scientiic and technological cooperation (c) Strengthening the foundations of the European Research agreements with third countries. Area: EUR 347 million. (f) Coordination of non-Community RTD activities 4. Implementation of the programme The ERA-NET scheme, introduced for the irst time under (a) Participation FP6, aims at stepping up the coordination of national and Any legal entity, i.e. any natural or legal person established regional research programmes carried out in the Member in a Member State or associated country in accordance States and associated countries through networking, with national, international or Community law may including ‘mutual opening’ of the programmes and respond to calls for proposals and, if their proposal is implementation of joint activities. FP6 also covers the accepted, receive Community support. Thus universities, operational costs of COST (cooperation in the ield of research centres, businesses, including SMEs, and scientiic and technical research of activities of public international organisations may ask for funding. Entities interest inanced nationally in Europe) and coordinates its from third countries may also participate in consortia and activities with those of other European initiatives, such as even receive support for certain FP activities. Eureka (an inter-governmental initiative for market- (b) Calls for proposals oriented research and development activities). As a general rule, project proposals are submitted in D. Prospects for European RTD policy response to calls for proposals. Consortia wishing to respond normally have at least three months to draw up The adoption of FP6 represents a clear step towards a new and submit their proposal. strategic orientation of Community research policy. However it is essential, as Parliament has in recent times (c) Information sources repeatedly stressed, to step up the research efort at EU Calls for proposals are published in the Oicial Journal of level, since only in this way can Europe’s place in the ield of the European Communities and on the Commission technological innovation be assured and the necessary Internet pages designed for this purpose. The key conditions created to safeguard Europe’s economic
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independence and social cohesion, which are (Commission communication of 8 June 2006 ‘The European indispensable for the prosperity of its citizens. Institute of Technology: further steps towards its creation’, Compared with the main competitors on the world market COM(2006) 276) on the EIT had a more positive impact (mainly US and Japan), EU research and development among the expert communities, but still leaves many spending is insuicient (1.93 % of GDP in 2003, as questions unanswered, which hopefully should be dealt compared to 2.59 % in the US and 3.15 % in Japan). Thus, with in the forthcoming legislative proposals and the an important step in European research policy was taken at accompanying impact assessment. the Barcelona European Council in March 2002, where Heads of State and Government agreed to raise investment Role of the European Parliament in research and development to 3 % by 2010. For more than 20 years the EP has promoted an increasingly ambitious EU RTD policy and has called for a E. The 7th RTD Framework Programme (FP7) substantial increase in total research spending in the The European Commission published its initial proposal on Member States to maintain and strengthen Europe’s 6 April 2005 with an overall budget of EUR 72.7 billion international competitiveness. The EP has also advocated (current prices) for the EC FP over the period 2007–13 and more collaboration with non-EU partners, a serious EUR 3.1 billion for the Euratom FP over the period 2007–11. integration of activities between the Structural Funds and The proposals contain a number of important innovations, the FPs and a targeted approach to optimise the including creating a ‘European Research Council’ (ERC) in involvement of SMEs and facilitate the participation of support of investigator-driven frontier research, launching promising weaker actors. Parliament further insisted that far Joint Technology Initiatives (JTIs) around key technologies more lexibility should be built into FPs, to enable the and helping create new research infrastructures. The EC FP shifting of resources to more promising areas and the is structured into ive speciic programmes: cooperation ability to react to changing circumstances and newly (supporting collaborative research activities in nine emerging priorities for research. thematic priorities), ideas (introducing the European Research Council), people (supporting training and career During the negotiations on FP6, the EP put forward a development of researchers), capacities (supporting key number of important proposals that are relected in the aspects of European research and innovation capacities) legislative texts that were inally adopted. Since the EU and non-nuclear actions of the JRC. The Euratom FP is institutions had agreed at an early stage on the overall structured into two speciic programmes and contains budget of the programme, Parliament’s eforts substantial funding for fusion energy research, in line with concentrated on emphasising its priorities and, where the international commitments undertaken by the applicable, improving the budgetary provision for them. Community for the realisation of ITER (International These priorities mainly concerned the structure of the Thermonuclear Experimental Reactor) together with the programme (introducing a section on combating major US, Japan, Russia, China and Korea. diseases, including cancer and poverty-linked infectious diseases, in the irst thematic priority), the inancing F. European Institute of Technology (EIT) instruments (introducing the concept of a ‘stairway of The European Commission in its communication to the excellence’ to accommodate small-scale participants with Spring European Council, Working together for growth and innovative research projects), the rules of participation jobs, A new start for the Lisbon strategy, communication (removing liability provisions that would have discouraged from President Barroso, Commission of the European small participants, introducing additional ‘soft’ evaluation Communities, Brussels, 2 February 2005, COM(2005) 24 criteria on synergies with education, engaging society as a noted the Commission’s intention to submit a proposal on whole and increasing the role of women in research) and the establishment of a European technology institute. The support for science and society and international EIT has been proposed by the Commission (Commission cooperation activities. communication of 22 February 2006 ‘Implementing the To a large extent, the Commission’s FP7 proposals include renewed partnership for growth and jobs, Developing a the major demands contained in the EP resolution of 10 knowledge lagship: the European Institute of Technology’, March 2005 on the Commission communication (COM(2006) 77) as a reference model within an integrated ‘Guidelines for future European Union policy to support strategy to mobilise all components of the knowledge research’. The main issues addressed in that resolution triangle of education, research and innovation towards the concern: (i) the Commission’s proposal to double the EU Lisbon goals. This communication, accompanied by a research budget; (ii) an adequately-funded, autonomous public consultation, has not been very well received by the ERC to support basic research in all scientiic ields on the stakeholders. A second communication of the Commission basis of excellence; and (iii) JTIs, as a signiicant mechanism
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01_2006_4661_txt_EN.indd 351 30-10-2007 14:55:32 to bring research closer to industry. According to the Adjustments were made to bring the framework exchanges of views held so far at committee level, the programme in line with the EP’s position on the Commission’s FP7 proposals have generally been well- Interinstitutional Agreement on Budgetary Discipline received by MEPs. After Parliament’s irst-reading on 15 (including the Financial Perspectives 2007–13) as adopted June 2006 and due to the substantial cut in the budget for by plenary on 15 May 2006, and to indicate by internal research by the Council, according to the agreement on budgetary allocation the priorities for the framework the inancial perspectives for the period 2007–13 reached programme which are shared by all political groups in ITRE. in December 2005, the proposed budget and its In Parliament there is a broad political consensus on the breakdown is as follows (in EUR million): priorities among the diferent elements of FP7. The EP assigns greatest priority to the ‘European Research Council’ Cooperation 32 582 (objective ‘ideas’), which, in the EP’s opinion, should be an Health 6 134 independent structure to be established under the co- Food, agriculture and biotechnology 1 935 decision procedure. Other EP priorities, in order of importance, are ‘people’ (recruitment, careers and exchange Information and communication technologies 9 050 of researchers) and ‘cooperation’ (especially the themes Nanosciences, nanotechnologies, materials 3 467 ‘energy’ and ‘health’; in ‘energy’ the EP asks for two thirds of and new production technologies the funds to be earmarked for renewable energies and Energy 2 415 energy eiciency research). The EP also expressed concern about the possible diversion of FP7 funds to the future Environment (including climate change) 1 886 European Institute of Technology (EIT) and possible Transport (including aeronautics) 4 180 excessive earmarking of funds for the ‘Risk-sharing Finance Socio-economic sciences and the humanities 657 Facility’. Security 1 429 In May 2006 the EP expressed scepticism over the necessity or usefulness of the EIT in its resolution on the Space 1 429 Commission’s Annual Policy Strategy report (EP resolution Ideas 7 560 of 18 May 2006 on 2007 budget: Commission’s annual People 4 927 strategic priorities, T6-0221/2006) ‘[the EP] believes that the setting up of a new European Institute of Technology may Capacities 4 042 undermine or overlap on existing structures and may Research infrastructures 1 708 therefore not be the most efective use of funds in this Research for the beneit of SMEs 1 366 context’. Regions of knowledge 126 Research potential 350 g Miklos GyöRFFI 09/2006 Science in society 359 Activities of international cooperation 133 Non-nuclear actions of the Joint Research Centre 1 751 TOTAL 50 862
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4.14. Small and medium-sized enterprises
Legal basis development and added an environmental dimension to Small and Medium Sized Enterprises (SMEs) operate mainly the Lisbon strategy. It recognised the need for radical at national level, but are afected by EU legislation on transformation of the economy to create some 15 million taxation (Articles 90–93), competition (Articles 81–89), new jobs by 2010. company law (right of establishment — Articles 43–48), the EU policy for SMEs dates back to a irst action programme, irst to 13th directives on the formation of limited adopted in 1983 at the close of the European Year of SMEs companies, structural operations such as mergers and and the craft industry. A second such programme began in divisions under each Member State’s national law, cross- 1987 and was reinforced by the Council for the period border mergers, takeover bids, etc., Regulation 2137/85 on 1993–96. A third multiannual programme covered the the European Economic Interest Grouping, Regulation period 1997–2000. 2157/2001 on the European Company Statute and The fourth multiannual programme initially ran for the Directive 2001/86 on the involvement of employees, period 2001–05 with a budget of EUR 450 million (it has regional and social policy (Articles 136–145), and customs been extended to 2006 with an increase in the inancial formalities (Articles 25–27). reference amount by EUR 88 500 000). The ive prime The Commission adopted a new deinition of SMEs in objectives of the programme are: Recommendation 2003/361. The staf thresholds used are: — enhancing growth and the competitiveness of business micro (0 to 10 employees), small (10 to 50 employees) and in a knowledge-based economy: measures to enhance medium-sized enterprises (50 to 250 employees). The competitiveness and innovation, prepare enterprises for recommendation increased the inancial ceilings (turnover globalisation and promote new information and or balance sheet total) to take account of inlation since the communication technologies; irst SME deinition in 1996. The new deinitions entered into force on 1 January 2005. The new rules should — promoting entrepreneurship: measures speciically to promote growth, entrepreneurship, investment and promote business start-ups and transfers, develop innovation, facilitate access to venture capital, cut training in entrepreneurship, and identify and promote administrative burdens and increase legal certainty and speciic policies for SMEs; favour cooperation and clustering of independent — simplifying and improving the administrative and enterprises. regulatory environment for business, in particular to promote research and innovation: measures in particular Objectives to improve assessment of all proposed EU legislation on Micro, small and medium-sized enterprises make up 99 % business and to produce better regulation; of all enterprises in the EU. In the EU-25 they represent — improving the inancial environment for business, about 25 million businesses employing almost 95 million especially SMEs: measures in particular to improve the people, and are an essential source of entrepreneurial spirit inancial environment for business, develop proximity and innovation, which is crucial to EU competitiveness. EU funding (business angels) and organise round-tables of policy for SMEs aims to promote their interests and to bankers and SMEs; abolish discrimination in market access. — giving business easier access to EU support services, programmes and networks and improving coordination Achievements of these facilities: measures to promote simpler access A. General to EU programmes, better coordination between support or advice networks such as the Euro Info In Lisbon in 2000 the European Council deined its Centres, and the organisation of business cooperation objectives in terms of employment, economic reform and events. social cohesion. By 2010 the EU aims ‘to become the most competitive and dynamic knowledge-based economy in The Council adopted the European Charter for Small the world, capable of sustainable economic growth with Enterprises in June 2000, setting out recommendations for more and better jobs and greater social cohesion’. In 2001 small enterprises to take full advantage of the knowledge the European Council agreed on a strategy for sustainable economy.
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01_2006_4661_txt_EN.indd 353 30-10-2007 14:55:32 The Commission produces annual implementation reports, In January 2003 the Commission adopted an ‘SME package’, a report on the activities of the SME Envoy and which analyses how Member States and the Commission communications on: innovation policy; industrial policy; are implementing the principles of the European Charter the impact of the e-Economy on European enterprises — for Small Enterprises. The main indings of the SME package economic analysis and policy implications; and a better are set out in the communication ‘Thinking Small in an environment for enterprises. Enlarging Europe’ (COM(2003) 26). In February 2005 the Commission published a report on At the beginning of 2003 the Commission also launched a the implementation of the European Charter for Small public debate on how to further improve the Enterprises (COM(2005) 30), emphasising the role that entrepreneurship agenda, through its Green Paper on small businesses play in the EU-25 economy. They are Entrepreneurship in Europe (COM(2003) 27). Based on an considered crucial for growth and employment all over analysis of progress in Enterprise Europe, including the SME Europe. The charter embodies the ‘think small irst’ package, the Green Paper poses some essential questions principle, and the recognition that small enterprises are on how to produce more entrepreneurs and how to get the backbone of Europe’s economy and the key to our more European irms to grow. competitiveness. In September 2005 the European Parliament (EP/Parliament) published an own-initiative B. Internal market report on the implementation of the charter Among the measures for completing the internal market, (2005/2123(INI)), which comprises 10 ‘lines of action’: those with particular relevance to SMEs include education and training for entrepreneurship; cheaper and simpliication of border formalities and initiatives in the faster start-up; better legislation and regulation; ield of standardisation. availability of skills; improving online access; getting more Derogations for SMEs have been introduced in many areas, out of the single market; taxation and inancial matters; for example: strengthening the technological capacity of small — administrative rules, enterprises; making use of successful e-business models and developing top-class small business support; — approximation of company law, developing stronger, more efective representation of — competition rules, small enterprises’ ‘interests at Union and national level’. — research, The Commission launched a ‘Go Digital Awareness Campaign’ in 2001 to demonstrate to SMEs the potential — changes in taxation. beneits of adopting and eiciently using e-business, and 1. Company law provide them with practical assistance on how to The European company is regarded as one of the key participate and take full advantage of the e-Economy. An elements for the completion of the internal market. The analysis of the ‘Go Digital Awareness Campaign’ was Council adopted the two legislative instruments required published in 2003. for the creation of a European company: Regulation As a follow-up to the eEurope 2002 Action Plan and 2157/2001 on the Statute for a European company and Helping SMEs to ‘Go Digital’, the Commission has launched Directive 2001/86 supplementing the Statute for a speciic actions to help SMEs adopt information and European company with regard to the involvement of communication technologies (ICT) and e-business. More employees, the two instruments being inextricably linked. than 70 events were organised across Europe in 2002 by The European company statute should make cross-border SMEs and other business organisations. business management more lexible and less bureaucratic and enhance the competitiveness of European business. It The Better Regulation Package adopted by the Commission will make it possible for a public limited company to be set on 5 June 2002 aims to reform the way in which the up in the EU with the Latin designation Societas Europaea institutions, individually or jointly, legislate at European (SE). The SE statute will allow enterprises to operate level, and how the Member States implement and apply throughout the EU subject to the EU legislation directly this legislation at national level. This ambitious package is applicable in all Member States. designed to meet the Lisbon European Council aim of simplifying and improving the regulatory environment. It is 2. Competition policy a political response to the frequent criticism of excessive, The Commission has made great eforts to modernise its inappropriate and burdensome EU legislation. The competition rules, make procedures more eicient, Commission adopted an action plan for ‘Simplifying and increase their transparency and facilitate their application. improving the regulatory environment’ in 2002. This policy trend has a direct bearing on SMEs. In January
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2001, Regulation 70/2001 on the application of Articles 87 sections: a group including directors-general responsible and 88 of the Treaty to State aid to SMEs replaced the 1996 for industry and for SMEs in the Member States, and a guidelines. It exempts investment aid — 15 % of eligible professional chamber, which includes among its 35 senior costs for small and 7.5 % for medium-sized enterprises (in members SME entrepreneurs, trade union representatives regionally-assisted areas higher aid ceilings apply, in order and people with experience of working in and with SMEs. to counter both the regional and the SME-speciic As part of the ‘e-Commission’ and better regulation disadvantage); aid for consultancy (50 % of eligible costs); initiatives, the Interactive Policy Making (IPM) initiative and aid for participation in fairs and exhibitions (50 % of introduced two new Internet-based instruments (Feedback eligible costs). The regulation provides that such aid does Mechanism and Online Consultations) in order to let not have to be notiied to the Commission unless it stakeholders participate actively in the Commission’s exceeds certain thresholds. policymaking process. This mechanism has collected 3. Taxation information from over 17 000 cases, mainly from small In October 2001 the Commission communication ‘Towards businesses, about all kinds of problems which small an Internal Market without tax obstacles — A strategy for enterprises face in their daily work. This enables the providing companies with a consolidated corporate tax Commission to make policy based on ‘hard’ facts. base for their EU-wide activities’ (COM(2001) 582) and a The Gate2Growth initiative aims to support innovative detailed study on ‘Company Taxation in the Internal Market’ entrepreneurs in Europe. It provides a common portal for (SEC(2001) 1681) addressed problems relating to company technology entrepreneurs, innovation professionals and taxation in the internal market and the situation of SMEs. intermediaries. In response to a request by the EP this one- C. Information and cooperation for SMEs stop-shop risk capital website is being further developed in cooperation with regional and national initiatives in order The Euro Info Centre (EIC) network, a key link between to give these an additional European scope. Within the Europe and SMEs, consists of some 300 members in 38 Gate2Growth initiative is the Incubator Forum — a pan- countries and 14 correspondence centres. Extended in European network of professional managers of technology 1998 to cover the new Member States, by 2003 the incubators linked to research institutes and universities, network had some 230 EICs located in public, private and launched in 2002. semi-public bodies directly related to SMEs (chambers of commerce, local development agencies and banks). The D. SMEs and research EICs (or Euroguichets) inform businesses, initiate them, The Sixth Framework Programme (FP6) included measures advise them and help them in all ields concerning EU to assist SME access to new technologies through close programmes and policies, organise seminars and coordination between enterprise policy and RTD policy. conferences and participate in awareness campaigns as SMEs were encouraged to participate in the activities part of the eEurope ‘Go Digital’ initiative. implemented under the priority thematic areas within EICs communicate with each other and the Commission NoEs, IPs and speciic targeted research projects. In using the Business Cooperation Network and the Business addition, two speciic schemes for SMEs having the ability Cooperation Centre. They form a contact network for to innovate without adequate research capacity were business consultants and seek to encourage cooperation foreseen (CRAFT and Collective Research and Cooperative between irms in the Member States at transnational, Research). interregional and local level. The ‘Dialogue with Business’ In March 2002 the Barcelona European Council agreed that website is a well-established multilingual gateway to data, RTD investment in the EU must be increased towards 3 % information and advice from many existing sources. Several of GDP by 2010. They also called for an increase in business thousand companies use it daily to access support services funding from its current level of 56 % to two thirds of total at European, national and local levels. In 2001 the RTD investment, a proportion already achieved in the US Commission set up an SME Envoy, whose role is to liaise and some European countries. The Sixth Framework with the SME business community to ensure that their Programme 2002–2006 (FP6) devoted the highest ever speciic interests and needs are taken into account in EU budget to SMEs (nearly EUR 2 200 million). All the initiatives programmes and policies. This action is coordinated with already established under FP5 aimed at simplifying existing networks such as the Euro Info Centres, which administrative procedures, reducing bureaucracy and already provide valuable information and advice to SMEs. helping SMEs were maintained and further improved. SMEs A high-level consultative body advising the Commission on also beneited from the LIFE programme, the inancial enterprise policy — the Enterprise Policy Group (EPG) — instrument for the environment, which spent EUR 28 was created in November 2000. The EPG is divided into two million in 2002 on projects in which SMEs were involved,
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01_2006_4661_txt_EN.indd 355 30-10-2007 14:55:32 and the EU Eco-label scheme, where 80 % of the The Structural Funds have allocated some EUR 16 000 participating companies were SMEs. ProTon Europe is a million to SME projects in the period 2000–06, pan-European network of technology oices linked to approximately 11 % of the total budget. About one third of public research organisations and universities, launched in this is for advisory services and shared business services, 2002. It is supported by the Commission as part of its such as incubators, networking, and clusters. In addition, Gate2Growth initiative. A signiicant amount of world-class this aid triggers substantial matching support from national research is undertaken in universities and research funds. institutions in Europe, which has actual or potential commercial relevance. To realise the potential of these F. Competitiveness and Innovation Framework public research organisations, commercialisation should Programme (2007–13) COM(2005) 121 become an integral part of the research process and The Competitiveness and Innovation Framework alternative approaches to the ownership and exploitation Programme (CIP) will bring together into a common of intellectual property rights (IPR) suitably explored. ProTon framework speciic Community support programmes and Europe aims to build up a membership of at least 250 PROs relevant parts of other Community programmes in ields throughout Europe to boost the commercial uptake of critical to boosting European productivity, innovation publicly funded R & D. This should contribute to the capacity and sustainable growth, whilst simultaneously creation of new products, processes and markets, improve addressing complementary environmental concerns and it the management of innovation and thereby stimulate is composed of speciic sub-programmes: sustainable and high value economic growth, — the Entrepreneurship and Innovation Programme: will competitiveness and employment. The working methods bring together activities on entrepreneurship, SMEs, of ProTon Europe include benchmarking of technology industrial competitiveness and innovation. It will also be commercialisation activities across Europe and the one of the instruments supporting the implementation collection and dissemination of good practice in managing of the Environmental Technologies Action Plan which and commercialising IPR. aims at removing the obstacles so as to tap the full The 7th Research Framework Programme (FP7) also potential of environmental technologies to protect the contains signiicant support dedicated to SMEs. environment while contributing to competitiveness and economic growth; E. Finance — the ICT Policy Support Programme will be one of the Progress has been made over the last few years in means to support actions identiied in the new initiative improving the availability of inance and credit for SMEs called ‘i2010: European Information Society’ as through the provision of loans, guarantees and venture announced in the communication from the capital. The European inancial institutions — the European Commission on a renewed Lisbon strategy of February Investment Bank (EIB) and the European Investment Fund 2005. The programme will build on the lessons learned (EIF) — have increased their operations for SMEs. from the eTen, eContent and Modinis programmes Furthermore, the inancial instruments of the Growth and whilst improving synergies between them and Employment Initiative (Council Decision 98/347) have been improving their impact; extended under the Fourth Multiannual Programme for Enterprise and Entrepreneurship, in particular for SMEs, — the Intelligent Energy — Europe programme is the thus giving them a new legal basis. The latter includes four Community’s non-technological programme in the ield schemes: the European Technology Facility Start-up, the of energy focusing on the removal of non-technical SME Guarantee Facility, the Seed Capital Action and the barriers, the creation of market opportunities and Joint European Venture programme (JEV). A successor to raising awareness. It aims therefore to accelerate action the current programme is foreseen as from 2007 and in relation to the agreed Community strategy and therefore it has been proposed that the current fourth targets in the ield of sustainable energy, in particular: to programme should be extended by a year to include 2006. facilitate the development and implementation of the energy regulatory framework. The 2001 Commission paper on ‘Enterprises’ access to inance’ argued that Europe’s SMEs are gradually switching from loan inance to other instruments (such as equity, Role of the European Parliament debt-equity combinations, leasing, and guaranteed loans As early as 1983 the EP declared a ‘Year of Small and and equity) although at least for the next decade Medium-sized Enterprises and the Craft Industry’ and enterprise inance will continue to be dominated by bank launched a series of initiatives to encourage their lending. development. Since then the EP has consistently
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demonstrated its commitment to encouraging the intensive businesses. It called for access to inance such development of European SMEs. A few examples: as the EIB/EIF funds for normative investments, and — in 1994 it welcomed the integrated programme for supported the funding of SMEs during start-up. SMEs and the craft industry adopted by the Parliament welcomed progress in providing for cheaper Commission and called on it to take measures to give and quicker registration of enterprises in the EU. SMEs easier access to public procurement and to the In 2005 the EP adopted a resolution on ‘Strengthening EU’s inancial instruments; European competitiveness — the efects of industrial — in a 1997 resolution the EP commented on the change on policy and the role of SMEs’, in which it internationalisation of small businesses, pointing out proposed a policy based on three elements: better the vital importance of access to loan and guarantee lawmaking; developing an integrated approach to policy; schemes to inance their start-up period and cover and pursuing appropriate sectoral policies and speciic commercial and political risks and the availability of measures, which requires an in-depth knowledge of each information and cooperation between industrial industrial sector. networks. It also recommended reducing corporation The EP has adopted the CIP in (irst reading) on 1 June tax on small businesses’ reinvested proits as an efective 2006. The EP’s main concern is the structural orientation of way of improving employment; the programme towards potential applicants, i.e. direct — in another 1997 resolution the EP called for the banking beneiciaries in terms of radical simpliication of the and credit industries to grant facilities to all small application procedure, including a one-stop shop approach businesses in order to encourage growth, employment (CIP agency). In the area of ICT programmes, it is essential and investment, particularly by means of a special code that the focus is shifted from where it currently lies, with of banking conduct for small businesses; the authorities, to the real engine of innovation, which is SMEs. In the area of intelligent energy and technologies the — in a 2002 resolution the EP stressed the importance for EP favours a broadening of the scope. small businesses of open markets in telecommunications, energy, postal services and transport. Parliament favoured applying experimental g Miklos GyöRFFI 09/2006 VAT-reduction measures across the board to all labour-
4.15. Tourism
Legal basis economic sectors is taken into account, this igure The EC Treaty does not contain a speciic chapter on becomes even higher. On the global stage, the EU is the tourism, but Article 3(u) of the Treaty does allow the most important tourist region. Because of its economic Community to pass measures dealing with this area. weight, the tourism sector is an integral part of the Provisions on the free movement of people, goods and European economy and thus measures are needed to help services, SMEs and consumer protection, as well as organise and develop it. From a European perspective, the environmental, transport and regional policies, are all tourism policy is also a means of supporting general relevant to tourism, because of its multifarious nature. The political goals in the ields of employment and growth. measures taken in these policy areas can afect tourism Tourism is also a part of the larger environmental policy within the Community, whether directly or indirectly. and this dimension has gained in signiicance over time.
Objectives Achievements The EU tourism industry is made up of around 2 million A. General policy companies, primarily small and medium-sized enterprises. The irst Council resolution on this subject, of 10 April 1984, It contributes 4 % of total GDP and employment (around 8 acknowledged the importance of tourism for European million jobs). When its close association with other integration and invited the Commission to make proposals.
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01_2006_4661_txt_EN.indd 357 30-10-2007 14:55:33 The subsequent decision of 22 December 1986 established On 17 March 2006, the Commission published a an advisory committee on tourism. communication on ‘A renewed EU Tourism Policy: Towards Tourism generates considerable demand for transport a stronger partnership for European Tourism’ (COM(2006) services. The creation of an eicient passenger transport 134). This discussed the current challenges to the industry, system with high-quality and safe transport services is thus with the intention of bringing about a new European a prerequisite for the economic development of tourism. Tourism Policy to meet these. The communication was Many decisions made in the ield of European transport based on the aforementioned Commission documents but policy thus afect tourists and tourism companies, whether included new aspects, in particular proposals on optimising directly or indirectly (see Chapter 4.5: Transport Policy). the use of EU inancial instruments in the period 2007–13, on amending the existing regulations, and also the Since 1997, the EU has become increasingly aware of promotion of tourism sustainability. tourism’s contribution to employment in Europe. On the basis of an expert group report on the growth and B. Special measures potential for employment of the tourism sector, which 1. For tourists predicted considerable growth until 2010, on 28 April 1999 These included measures making it easier to cross borders the Commission presented a communication on and protecting health and safety as well as the material ‘Enhancing tourism’s potential for employment’ interests of tourists, such as the Council recommendation (COM(1999) 205). In its conclusions of 21 June 1999, the of 22 December 1986 on ire safety in hotels and Directives Council identiied four diferent action areas: 90/314/EEC on package tours and 94/47/EEC on timeshare — furthering the exchange and dissemination of properties. In the ield of transport, important rules on the information; protection of air passenger rights were adopted (see "4.5.6). Directive 2006/7/EC of 15 February 2006 on the — improving training and qualiications in the tourism quality of bathing water is equally relevant to the tourism sector; policy. — improving the quality of products and services related 2. For the tourist industry and the regions to tourism; In light of the contribution made by tourism to regional — promoting environmental protection and the development and employment, projects supporting sustainable development of tourism. tourism or cultural heritage received increased support By the end of 2001, the Commission had published a within the framework of the structural funds in the period communication on ‘Working together for the future of 2000–06, with programmes such as Leader, Interreg and European tourism’ (COM(2001) 665), which proposed the also the ESF playing an important role. The EU tourism creation of an operational framework, based on the industry and companies within this sector were also method of open coordination between all stakeholders supported by numerous other Community programmes, concerned. To this end, a plethora of measures and actions including EU programmes for SMEs. The Commission also were proposed for the diferent stakeholders so as to produced an Internet guide on measures taken by the EU safeguard the future of European tourism, from the point of to promote tourism companies and tourist destinations. view of sustainability and competitiveness and through the Great store was also placed on the creation of a improvement of information, training, and quality and the Community statistical information system. An initial two- use of new technologies. One of the results of this strategy year programme, aimed at harmonising the national has been the annual European Tourism Forum, held since methods used, was introduced through Directive 95/57/EC 2002 with the participation of high-ranking representatives of 23 November 1995. from the tourism industry, EU institutions and EU Member The campaign against sex tourism involving children was State governments. Amongst these proposed measures, the subject of a 1996 Commission communication the cause of sustainable development of tourism activities (COM(96) 547), which created a general framework for was championed through the drawing-up and the Community measures in this area. implementation of a European Agenda 21 for tourism. In November 2003 the Commission adopted the Role of the European Parliament communication on ‘Basic orientations for the sustainability of European tourism’ (COM(2003) 716). It outlined a series of The EP has made vital contributions to the development of measures to boost the Community’s contribution. As a Community tourism and has often given momentum to follow-up measure, the ‘sustainability in tourism’ export concrete measures. group was set up in 2004. In particular, it has called for:
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— a special chapter on tourism to be written into the harmonisation of the hitherto fragmentary nature of the Treaty, when it was revised in 1996. In the Treaty measures taken and towards an integration of all establishing a Constitution for Europe, there is now a Community programmes aimed at safeguarding the speciic section on tourism; sustainable development of this sector. It also called for — the creation of a European Tourism Agency (resolutions the development of a sustainable and competitive of 15 December 1994 and 25 October 1996); tourism industry, available to all and geared towards quality, whilst taking into consideration the maximum — increased protection of tourists’ interests: number of tourists which each natural area or cultural — greater civil liability of travel agencies and stricter site can take; criteria for granting operating licences (resolution of — in its resolution on tourism and development of 8 15 December 1994); September 2005, Parliament stressed the need to — compliance with Directive 90/314 on package travel; reinvest the proits generated by tourism back into local — protection from overbooking in hotels (resolution of development. It called for all European investments in 31 March 1998 on improving safety, consumers’ the tourism industry of developing countries to be rights and trading standards in the tourism sector); subject to the same regulations as those applicable to the granting of assistance within the European Union, — action against travel agencies, airlines and hotel chains so as to make sure that all investments which are clearly which encourage sex tourism (resolution of 6 damaging to the environment, human rights, the November 1997 on the Commission communication on minimum labour standards as set out by the combating child sex tourism). In the resolution of 30 International Labour Organisation, the native way-of-life March 2000 on the same topic, Parliament requested or the cultural heritage of the destination country are Member States to introduce universally-binding not supported. Furthermore, Parliament proposed the extraterritorial laws, making it possible to legally pursue introduction of a certiied European Fair Trade Tourism and punish people, who whilst abroad committed label to encourage ethical standards in tourism; illegal acts relating to the sexual exploitation of children; — likewise, on 8 September 2005 the EP passed a — coordination of Community policies on the promotion resolution on ‘New prospects and new challenges for of employment in the tourism industry with national sustainable European tourism’, consisting of 70 employment policies as well as the improvement of paragraphs. The EP set out its position and demands on quality and safety standards within the European the diferent aspects of an EU tourism policy. These tourism industry (resolution on tourism and aspects included: (a) competitiveness and quality of employment of 18 February 2000); services, (b) safety in tourism, (c) new initiatives on — in its resolution on the future of European tourism of 14 sustainable tourism, (d) awareness and promotion of May 2002, Parliament supported the Commission’s European tourism, (e) tourism and transport, (f) approach and emphasised the need for an integrated promotion of tourism at Community level, (g) approach to all political measures afecting tourism. On coordination of regulations and (h) tourism in the Treaty this point, it called for all the relevant Commission establishing a Constitution for Europe. directorates-general (transport, regional policy, employment, environment, social policy, consumer g Nils DANKLEFSEN protection, education and culture) to work towards the 09/2006
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4.16.1. Education and vocational training policy
Legal basis challenging programme for the modernisation of social Articles 3, 140, 146, 149 and 150 of the EC Treaty welfare and education systems’ was needed. Articles 14 and 15 of the Charter of Fundamental Rights of In 2002 the Council and Commission adopted a 10-year the European Union work programme, Education and Training 2010 (2002/C 142/01), to be implemented through the open method of The Treaty of Rome did not make any extensive reference coordination. This programme provides a new and to education. It simply called in Article 3 for the Member coherent strategic framework incorporating all action in States to make a contribution to quality education and the ield of education at European level, including training. It was only with the entry into force of the vocational training. Its objectives include improving the Maastricht Treaty that comprehensive reference was quality of education and training systems and facilitating made to the contribution of the Community in the ield access to education and training for all, as well as opening of education and training. Among other things, up education and training to the wider world. education became subject to co-decision. The Amsterdam Treaty changed the provisions slightly, the Since the adoption of the programme, experts from 31 main change being that the co-decision procedure European countries, international organisations and EU applied to vocational training as well. The Charter of institutions have been working together to support the Fundamental Rights states that ‘Everyone has the right to implementation of the objectives for education and education and to have access to continuing and vocational training at national level through exchange of vocational training’ (Article 14) and that ‘Everyone has the good practice, study visits, peer reviews, etc. With the support right to engage in work and to pursue a freely chosen or of the Standing Group on Indicators and Benchmarks set up accepted occupation’ (Article 15). by the Commission in 2002, indicators and benchmarks are being developed to monitor progress in achieving objectives. According to the principle of subsidiarity, each Member State has full responsibility for the organisation and content Achievements of its education and vocational training systems. Any act of harmonisation of legal and regulatory provisions of the A. Action programmes Member States is excluded from the scope of Articles 149 Since the start of European cooperation in the ield of and 150. education, more than 30 years ago, the main priorities have been to promote cross-border mobility of learners and Objectives teachers, to promote European cooperation between educational establishments and to improve the quality of A. Objectives pursuant to the EC Treaty education and vocational training. The EU is to contribute to the development of quality education by encouraging cooperation between Member With the help of action programmes and other initiatives a States and, if necessary, by supporting and supplementing great deal has already been achieved in this ield. The their action. following programmes and initiatives have been adopted. 1. Socrates B. Current priorities This programme was launched in 1995, and was such a In order to achieve the Lisbon strategy objective of making success that a second phase was adopted in January 2000 the Union the most competitive and dynamic knowledge- to run from January 2000 to December 2006 with a total based economy in the world, Heads of States and budget of EUR 1 850 million. The programme consists of Government stated in 2000 that ‘not only a radical eight actions. transformation of the European economy, but also a
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— Action 1, Comenius (from pre-school to secondary 4. Erasmus Mundus education), seeks to enhance the quality and reinforce This is a global programme established in July 2002, at the the European dimension of school education, in proposal of the European Commission, to promote particular by encouraging transnational cooperation intercultural understanding through cooperation with between schools. third countries in higher education. The scheme provides — Action 2, Erasmus (higher education), encourages inancial assistance for the creation of EU masters courses transnational cooperation between universities and involving at least three higher education institutions from mobility of university students and teachers. To date three diferent Member States, and leading to the more than 1.2 million students have taken part in awarding of recognised double, multiple or joint degrees, exchanges with foreign universities. In the year ofers scholarships for students and scholars from third 2003/2004 more than 135 000 students participated in countries and supports partnerships between EU and exchanges at 2 199 universities in 31 countries. third-country higher education institutions. The European Parliament (EP/Parliament) increased the budget from — Action 3, Grundtvig (adult education and other EUR 200 million to EUR 230 million. The programme runs educational pathways), seeks to encourage the from 2004 to 2008. European dimension of lifelong learning. 5. A new generation of programmes — lifelong — Action 4, Lingua (language teaching and learning), learning promotes cooperation in developing innovative Decision 2493/95/EC established 1996 as the European materials for use in language teaching and supports Year of Lifelong Learning. projects which encourage language learning. Following the success of this initiative, in June 2002 the — Action 5, Minerva (open and distance learning, Council adopted a resolution on lifelong learning with a information and communication technologies in view to enabling people to meet the challenges of the education), supports transversal measures relating to knowledge-based society by promoting the development open and distance learning. of their knowledge and skills at all stages of their lives. Since — Actions 6, 7 and 8 are innovations and experimental that time, lifelong learning has become the guiding programmes entitled ‘Observation and innovation’, ‘Joint principle for the development of education and training actions with other EU programmes’ and ‘Accompanying policy. The goal is to provide people of all ages with equal measures’. and unhindered access to high-quality learning opportunities and to break down barriers between 2. Leonardo Da Vinci diferent forms of learning. In order to facilitate the The European dimension of vocational training is transition to a knowledge-based society, the EU is promoted by the Leonardo da Vinci programme, which supporting the introduction of strategies and speciic was already established in 1994 and which is intended to action for lifelong learning, with the aim of creating a support and supplement action by the Member States. European area of lifelong learning. The programme promotes transnational mobility, placement and exchange projects, study visits, pilot An important step towards achieving this aim is the projects, transnational networks, language skills and forthcoming introduction of the ‘integrated action cultural awareness and the dissemination of programme in the ield of lifelong learning’ under which recommended methods and collation of comparative inancial support for the European education and training data. The programme is in Phase II, which runs from 1 sector will be provided for the period 2007–13 January 2000 to 31 December 2006 and has a budget of (COM(2004) 474). The new integrated programme will EUR 1 150 million. comprise four programmes which form part of the current Socrates programme: Comenius (school education); 3. Tempus Erasmus (higher education and training); Leonardo da The irst Tempus programme was adopted by the Council Vinci (vocational education and training); and Grundtvig in May 1990. Tempus is a trans-European cooperation (adult education). It also incorporates a ‘transversal’ scheme for higher education for the countries of Central programme covering four key activities (policy and Eastern Europe (Tempus PHARE) and the republics of cooperation, language learning, innovative approaches the former Soviet Union (Tempus TACIS). It both and dissemination of project results) as well as a Jean encourages joint European projects and provides mobility Monnet programme, which will support activities in the grants for individuals working in higher educational ield of European integration and institutions and institutions. A second phase was adopted in 1993. A third associations carrying out such work. According to the phase runs from July 2000 to 2006. Commission proposal, the programme will have a budget
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01_2006_4661_txt_EN.indd 361 30-10-2007 14:55:34 of EUR 13.62 billion. The proposal is currently being comprehensible and comparable degrees, establishing considered by Parliament and the Council. throughout Europe a three-stage system of degree level Another major challenge which is currently on the agenda studies (bachelor, masters and doctorate), introducing a is to deine the basic skills to be provided through lifelong system of credits, encouraging mobility and promoting learning in order to meet the demands of the labour European cooperation in the area of quality assurance. market for a highly skilled workforce. In its proposal for a In 2002 the Education Ministers of 31 European countries recommendation on key competences for lifelong learning signed the Copenhagen Declaration on enhanced (COM(2005) 548) the Commission sets out eight key European cooperation in vocational education and training. competences, including communication in a person’s The declaration calls for concrete action to achieve greater mother tongue, communication in foreign languages, IT transparency and mutual recognition and improve quality skills and learning skills. in this ield. The so-called Copenhagen process has been 6. Other programmes in the education ield introduced in order to implement enhanced European cooperation in vocational education and training, with a (a) Cooperation with third countries view to fulilling the Lisbon objectives. Pursuant to Articles 149 and 150 of the EC Treaty, the EU is to foster cooperation with third countries in the ields of 2. Recognition of qualiications education and vocational training. EU activities in these To promote mobility within the EU, several directives have ields have been steadily increasing and, in addition to been adopted guaranteeing mutual recognition of abovementioned programmes, include programmes such professional qualiications between Member States. As as USA–EU, Canada–EU, ALFA and ALßAN (for Latin regards the recognition of periods of study undertaken American countries), ASIA Link (for several countries in abroad university students currently beneit from the Asia), and pilot programmes with Australia and Japan. European Credit Transfer System (ECTS), which was introduced by the Commission more than 10 years ago and (b) Support for bodies that are active at European level, which is constantly being expanded. The networks NARIC action programme 2004–06 (National Academic Recognition Information Centres) and Decision 791/2004/EC of the European Parliament and of ENIC (set up by the Council of Europe and UNESCO) provide the Council established a Community action programme advice and information on the academic recognition of that is designed to promote bodies active at European level diplomas and periods of study undertaken abroad. The and to support speciic activities in the ield of education ENQA (European Association for Quality Assurance in Higher and training. EUR 77 million was allocated for the period Education), which was set up in 2000, disseminates 2004–06. The overall aim of the programme is to support information, experience and good practice to quality bodies and their activities which seek to extend and assurance agencies, public authorities and higher education deepen knowledge of the building of Europe, or to institutions. Europass was set up by Decision 2241/2004/EC contribute to the achievement of the common policy with the aim of improving transparency of qualiications objectives in the ield of education and training, both inside and skills. It ofers Europe’s citizens the opportunity to and outside the European Union. present their skills using harmonised documents. B. Other EU initiatives 3. eLearning 1. Quality education Despite a high level of education, the EU remains behind the Quality education at all levels is a priority for all EU Member US and Japan as regards new information and States and essential if the Lisbon objectives of 2000 are to communication technologies. The Commission has therefore be achieved by 2010. However, according to the adopted the ‘eLearning’ initiative to adapt the Member States’ Commission communication on ‘Education and Training education and training systems to the latest developments 2010’, the success of the Lisbon strategy hinges on urgent in this ield. The initiative has four components: equipping reforms and there is a shortfall of investment in human schools with multimedia computers, training European resources in the Member States compared with the US and teachers in digital technologies, developing European Japan. The Commission suggested simultaneous actions in educational services and software and speeding up the the Member States (COM(2003) 685). The Bologna networking of schools and teachers. In Seville in June 2002, Declaration on the European dimension in higher education the European Council launched the eEurope 2005 action of 19 June 1999, signed by 29 countries, marks a turning- plan with the aim of developing modern public services and point in the development of European higher education. a dynamic environment for e-business. In 2003 an eLearning The so-called ‘Bologna process’ in which 45 countries are Programme was introduced with the aim of efectively now taking part, is aimed at establishing a system of readily integrating information and communication technologies
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into education and training systems in Europe. The four areas and increasing the European dimension in the Member of action of the programme are: promoting digital literacy, States’ education policies. It has therefore been an advocate European virtual campuses, e-twinning of schools in Europe for the establishment of a solid legal basis for education and transversal actions for the promotion of e-learning in and training. Following the adoption of the Maastricht and Europe. The i2010 initiative (A European information society Amsterdam Treaties which introduced two new articles in for growth and employment) (COM(2005) 229) aims to these ields, the EP gained considerable inluence over the promote a single European information space by integrating policies carried out, since all decisions are taken under the regulation, research and development. co-decision procedure and with qualiied majority voting in 4. Community centres, institutes and networks Council. Therefore Parliament has been able to increase the budget for several Community programmes such as Cedefop, the European Centre for the Development of Socrates II and Erasmus Mundus. Vocational Training (set up in 1975), assists the Commission in implementing the Community vocational training policy. In the process of adopting the ‘Lifelong Learning’ The European University Institute in Florence (set up in programme, Parliament is also calling for a clear increase in 1976) contributes to the development of the cultural and the budget allocated and for easier access to these actions. scientiic heritage of Europe. Eurydice, the European Parliament regards education as the best way of ensuring Information Network in the European Community (set up the EU’s competitiveness. With a view to achieving the in 1981), collects and disseminates information on Lisbon objectives, Parliament recently called on the education systems in the Member States. The European Member States to increase investment in education, frame Training Foundation (set up in 1990) contributes to the more consistent national education policies, promote development of the vocational training systems of the scientiic and technical studies and develop an integrated countries of central and eastern Europe, the Independent strategy for lifelong learning which will support social States of the former Soviet Union, and Mongolia. inclusion (T6-0384/2005).
Role of the European Parliament g Constanze ITzEL 06/2006 The EP has always supported close cooperation between the Member States in the ields of education and training
4.16.2. youth policy
Legal basis Objectives Articles 149 and 150 of the EC Treaty Community action is aimed at encouraging the Although young people have beneited from the development of youth exchanges and exchanges of youth Community’s activities since its creation, for example workers. through the European Social Fund, it was with the entry into force of the Maastricht Treaty that a solid legal basis Achievements was irst established for developing new programmes for A. Action programmes the beneit of young people. Action to promote vocational 1. yOUTH training under Article 150 also expressly includes young people. Action falling within the scope of Articles 149 and In 1988 the Community already established the ‘Youth for 150 is subject to the co-decision procedure. Europe’ programme in order to promote youth exchanges. In 1996 the Commission proposed a Community action In the ield of youth policy there is no provision for programme for a European Voluntary Service for young harmonising Member States’ legislation. Rather, the people. On 13 April 2000 the Community action Council mostly — except in relation to youth programme for youth was established for a seven-year programmes and youth organisations — adopts period from 2000–06 with a total budget of EUR 520 recommendations. million, merging the two former programmes ‘Youth for
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01_2006_4661_txt_EN.indd 363 30-10-2007 14:55:34 Europe’ and ‘European Voluntary Service’ into a single establishing a framework for European cooperation in the programme. The programme was supplemented by other youth ield, on the one hand by applying the open method actions such as ‘Initiatives for Youth’, which aims to support of coordination and, on the other, by taking the youth innovative and creative projects designed to promote the dimension into account to a greater extent in other social integration of young people, ‘Joint Actions’ with the policies. A key priority is greater participation by young Socrates and Leonard Da Vinci programmes and people. To this end, the Commission has launched pilot ‘Accompanying Measures’. The YOUTH programme also projects to encourage participation by young people in the supports cooperation activities with third countries YOUTH programme. through the Euro-Med Youth Programme I (1999–2001), 2. European youth pact which is aimed at young people in 31 participating At its spring summit in March 2005 the European Council countries — the 25 current Member States plus Iceland, adopted a European Pact for Youth as part of its revised Liechtenstein, Norway, Bulgaria, Romania and Turkey. The Lisbon strategy refocusing on growth and employment. YOUTH programme also supports cooperation in south- The Commission subsequently adopted a communication east Europe (SEE), the Commonwealth of Independent (COM(2005) 206) setting out how the pact could be States (CIS) and Latin America (LA). implemented. The Commission believes that measures and 2. Action programme to promote bodies active actions implemented under the pact should be based on at European level in the ield of youth European employment and social inclusion strategies and Decision 790/2004/EC of 21 April 2004 also established a on the Education and Training 2010 work programme. The Community action programme to promote bodies active main objective is to improve school education and at European level in the ield of youth, to run from 2004 to vocational training, mobility, integration of young people 2006, with a budget of EUR 13 million. The programme into the workplace and social inclusion. At the same time, supports the activities of organisations which contribute to the aim is to enable work and personal life to be better strengthening Community action and increasing its reconciled. The Commission also calls for initiatives in the efectiveness, including through: youth exchanges, various areas to be organised in a coherent way and for educational and vocational training measures, debates on young people to be involved in formulating these youth policy, dissemination of information on Community initiatives and monitoring their implementation. policy and measures to promote involvement and initiative on the part of young people. Role of the European Parliament 3. Future programme: youth in Action The EP has always supported close cooperation between As a follow-up programme, in July 2004 the Commission the Member States in the youth ield. Parliament led the proposed the introduction of the ‘Youth in Action’ way in the setting up of the European Voluntary Service. It programme (2007–13) (COM(2004) 471), which aims to has also been an advocate for the establishment of a solid promote young people’s active citizenship, develop legal basis for youth policy. Following the adoption of the solidarity among young people and promote European Maastricht and Amsterdam Treaties, the EP gained cooperation in youth policies. The Commission proposes to considerable inluence over the policies carried out in this retain ‘Youth for Europe’ and the European Voluntary ield, since all decisions are taken under the co-decision Service, and to add other actions such as ‘Youth of the procedure and with qualiied majority voting in Council. World’, ‘Youth workers and support systems’ and ‘Support In the process of adopting the ‘Youth in Action’ programme, for policy cooperation’. Parliament is calling for a clear increase in the budget B. Other EU initiatives allocated and for easier access to these actions. Parliament 1. White Paper on youth is also stressing that young persons with disabilities must be included on an equal footing, in order to prevent On 21 November 2001 the Commission adopted a White discrimination. In the light of the success of European Paper on ‘A new impetus for European youth’. The White Youth Week, which took place for the second time in Paper proposes a framework for cooperation in the youth December 2005, Parliament is calling for the event to ield, with four priorities: to promote participation, become a permanent feature of European youth policy information, voluntary activities on the part of young people (T6-0396/2005). and greater knowledge of youth. The EP, in its opinion of 14 May 2002, supported the Commission’s proposals. g Constanze ITzEL The Council, in its conclusions of 14 February 2002, 06/2006 recognised that the White Paper provided a basis for
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4.16.3. Language policy
Legal basis releasing the EU’s economic, social and cultural potential Articles 3 and 149 of the EC Treaty; (5680/01 EDUC 18). Articles 21 and 22 of the Charter of Fundamental Rights of For the 2004–09 legislative term, a Commissioner whose the European Union responsibilities expressly include multilingualism — Jan Figél from Slovakia — was appointed for the irst time. In The Charter of Fundamental Rights adopted in 2000 places November 2005 the Commission presented its New an obligation on the Union to respect linguistic diversity Framework Strategy for Multilingualism (COM(2005) 596), (Article 22) and prohibits discrimination on the grounds of which has three main aims: to encourage language learning language (Article 21). Respect for linguistic diversity is a and promote linguistic diversity in society, to promote a fundamental value of the European Union, in the same way multilingual economy, and to give citizens easier access to as respect for the person, openness towards other cultures, information on the EU in their own languages. The Member tolerance and acceptance of other people. States are also being called upon to support the achievement In the ield of education and vocational training, the EC of the irst two of these aims by taking additional measures. Treaty gives the EU the task of supporting and supplementing action by the Member States aimed at Achievements developing the European dimension in education, particularly through the teaching and dissemination of EU A. Support programmes languages (Article 149(2)). 1. Action plan In response to a EP resolution (T5-0718/2001) and a Council Objectives resolution (2002/C 50/01), in July 2003 the Commission adopted an action plan 2004–06 on ‘Promoting Language The aim of European Union language policy is to promote Learning and Linguistic Diversity’ (COM(2003) 449), setting the teaching and learning of foreign languages in the EU out three areas in which it would be providing funding for and thereby create a language-friendly environment for all short-term action to support measures taken by Member Member State languages. Foreign language competence is States under existing Community programmes: lifelong regarded as one of the basic skills which every EU citizen language learning, improving the teaching of foreign needs to acquire in order to improve his/her educational languages, and creating a language-friendly environment. and employment opportunities within the European learning society, in particular by making use of the right to 2. Education and vocational training freedom of movement of persons. Foreign language The main inancial support for foreign language learning is competence is also seen as very important in supporting provided under the Socrates and Leonardo da Vinci cultural exchange and personal development (2002/C educational and vocational training programmes. 50/01). (a) Socrates: action programme in the ield of education Within the framework of education and vocational training (i) Lingua: promoting language teaching and language policy, the European Union’s objective is therefore for every learning EU citizen to master two other languages in addition to his/ Lingua is the only programme which is wholly aimed at her mother tongue. In order to achieve this objective, promoting foreign language learning. It is divided into two children are to be taught two foreign languages in school parts. from an early age (SN 100/1/02 REV 1). — Lingua 1 supports projects which raise citizens’ In the context of the Lisbon strategy adopted by the awareness of the Union’s linguistic diversity, encourage European Council in March 2000, the importance of people to learn languages throughout their lifetime, foreign language learning in raising the competitiveness and improve access to foreign language learning of the European economy is being emphasised. In resources across Europe. It also supports the connection with the reforms of national education and development and dissemination of innovative vocational training systems needed in order to achieve the techniques and good practice in language teaching. Lisbon objectives, EU education ministers have set themselves the objective of improving foreign language — Lingua 2 is aimed at improving language teaching by teaching and thereby making a signiicant contribution to ensuring that suicient high-quality language learning
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01_2006_4661_txt_EN.indd 365 30-10-2007 14:55:34 tools and tools for assessing linguistic skills are made under the EU’s cultural programme Culture 2000. The EU’s available. action programme in the ield of audiovisual media, Media, (ii) Comenius: European cooperation on school education makes available funding for dubbing and subtitling of European cinema and TV ilms. Both parts of Comenius include measures to promote language learning. Comenius 1 supports various types of Funding to support regional and minority languages is school partnerships with the aim of encouraging language available to relevant organisations under various EU learning. Under Comenius 2 individual training grants are programmes: agriculture, the audiovisual sector, education available to teachers. Those eligible to apply are student and training, the information society, regional policy, teachers, language assistants, language teachers and research and innovation, and youth. It is to the initiative of teacher training establishments. the EP — which has repeatedly drawn attention in resolutions to the situation and the need to support (iii) Erasmus: Community action programme in the ield regional and minority languages (P5-B(2001)0815; P5- of higher education TA(2003)0372) — that these support measures are owed. Under the EU’s mobility programme for students, support is 4. Future action to promote languages provided for intensive language courses, which give From 2007 language learning will be promoted within the students the opportunity to study the language of the host framework of the new integrated action programme in the country over three to eight weeks in the host country. ield of lifelong learning, which will bring together the EU’s Support is targeted especially at courses in less widely used current education and training programmes. The and taught EU languages as well as languages spoken in promotion of language learning and linguistic diversity is third countries participating in the Erasmus programme. one of the speciic objectives of the integrated programme, (iv) Grundtvig: adult education and other educational as set out in the Commission proposal (COM(2004) 474). pathways According to the Commission proposal, the programme is Encouraging foreign language learning is one of the main to have a budget of EUR 13.62 billion. This proposal is aims of the European action programme for developing currently being considered by Parliament and the Council. adult education. The EU therefore supports the design and B. Other EU initiatives production of teaching materials aimed at improving 1. Raising awareness of the importance of foreign knowledge of Member States’ languages and culture. languages (b) Leonardo da Vinci: action programme in the ield In order to highlight the importance of linguistic diversity of vocational training and foreign language learning in Europe, 2001 was The Leonardo programme supports projects aimed at declared the European Year of Languages by the EU and enhancing employees’ skills in the area of multilingual and the Council of Europe. A total of 45 countries took part, multicultural communication through vocational training. with the aim of encouraging language learning throughout In contrast to the support programmes under the Socrates Europe. During that year language projects took place programme, these projects have to be speciically targeted throughout Europe, and included exhibitions, open days at a target group in the area of vocational training. They are and mini-language courses. The Commission bore a intended to raise awareness among companies of the considerable proportion (EUR 6 million) of the costs of importance of foreign language skills and support projects. Hundreds of thousands of people took part in the companies in developing foreign language training diferent projects, in which over 60 languages were opportunities. represented. In addition, support is provided for transnational exchange Encouraged by the huge success of the European Year of projects between businesses, on the one hand, and Languages, the EU and the Council of Europe decided to vocational training establishments, on the other, which are celebrate the so-called European Day of Languages every designed to contribute to developing and improving year on 26 September, with all sorts of events promoting methods used in vocational training in the area of language learning. Like the earlier European Year of language and intercultural skills. Languages, this action is aimed at raising awareness among 3. Support under other EU programmes citizens of all the languages spoken in Europe and at strengthening lifelong learning. In addition to educational and training programmes, inancial assistance for language projects is available under 2. Comparability of data on language competence other EU programmes. For example, support has been As called for by the European Council, in August 2005 the provided for the translation of books and manuscripts Commission proposed to the Council and the EP the
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introduction of a European Indicator of Language B. Principle of multilingualism applying Competence (COM(2005) 356 inal). This indicator is to Parliament’s work intended to make a substantial contribution to achieving EU institutions work in 20 oicial languages. With the the objective of ‘mother tongue + two’ by enabling foreign adoption of Irish as an oicial language of the EU and the language competence to be measured in a comparable accession of Bulgaria and Romania, the number will increase way in all Member States. to 23 by 2008. The EU’s commitment to multilingualism in In its resolution of March 2006 (A6-0074/2006) the EP law-making and administration is unique throughout the welcomed the Commission proposal and called on both world. The EU believes that using the diferent languages the Commission and the Council to propose further spoken by its citizens is a factor in ensuring greater measures to strengthen multilingualism in the EU. transparency, legitimacy and efectiveness. Legislation adopted by the EU must be available to all EU citizens in their Role of the European Parliament respective mother tongue. In addition, every EU citizen has the right to present requests or petitions in his/her mother A. Own initiatives tongue to the EP, other EU institutions and advisory bodies From the outset of the process of integration, the EP has and the European Ombudsman, and to receive a reply in his/ been an advocate for recognising the importance of, and her mother tongue. promoting, linguistic diversity in the European Union. As regards interpreting, the EP difers from the other EU During the current legislative term, Parliament has already institutions in so far as the principle of ‘controlled full taken the initiative on a number of occasions in order to multilingualism’ is observed in its day-to-day work. That give fresh impetus to the development of language policy means that interpretation is provided out of, and into, all EU in Europe. In particular, the Committee on Culture and oicial languages. With the exception of smaller meetings, Education has produced own-initiative reports identifying interpretation is provided for part-sessions and meetings of the need for action in certain areas and calling on the parliamentary bodies, committees and groups on the basis Commission to draw up measures aimed at recognising of this principle, in so far as the capacity of the interpreting the importance of, and promoting, linguistic diversity in the service allows. The right of every MEP to interpretation of EU. For example, with regard to school education, the debates into his/her own mother tongue and interpretation importance of a language-friendly environment in helping of his/her own speeches is enshrined in Parliament’s Rules of children from immigrant communities to integrate has Procedure. In its eforts to safeguard the use of all oicial been highlighted (A6-0243/2005). languages in practice in parliamentary proceedings, the EP is the very embodiment of linguistic diversity in the EU.
g Lisa MUTKE 06/2006
4.16.4. Cultural policy
Legal basis bringing the common cultural heritage to the fore. EU Articles 3, 30, 87(3)(d) and 151 EC Treaty intervention in the ield of culture is governed by the principles of subsidiarity and complementarity. Any act of The Treaty of Rome did not contain a speciic paragraph on harmonisation of Member States’ legal and regulatory cultural policy. Cultural policy received its own legal basis provisions is excluded from the scope of Article 151. only with the adoption of the Maastricht Treaty. Article 151 Measures are taken by the European Parliament and of the Nice Treaty provides a basis for action aimed at Council under the co-decision procedure; unanimity is encouraging, supporting and if necessary supplementing required in the Council. the activities of the Member States, while respecting national and regional diversity and at the same time Article 151 makes it possible to support and supplement Member States’ action in the following areas: improving
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01_2006_4661_txt_EN.indd 367 30-10-2007 14:55:35 knowledge and disseminating the culture and history of — The Raphael Programme was adopted in 1997 with the the European peoples, conserving and safeguarding aim of encouraging cooperation between the Member cultural heritage of European signiicance, non-commercial States in the area of cultural heritage with a European cultural exchanges, and artistic and literary creation, dimension. including in the audiovisual sector. The article also provides 2. Culture 2000 that the Community shall take cultural aspects into account Kaleidoscope, Ariane and Raphael helped to reinforce and in its action under other provisions of the Treaty. And extend transnational partnerships. They improved access to cooperation with third countries and international culture and promoted cultural activities with a European organisations in the sphere of culture, in particular the dimension. On the basis of the experiences of this irst Council of Europe, is to be fostered. phase of programmes, in May 1998 the Commission Article 13 of the Charter of Fundamental Rights stipulates proposed the establishment of a First EU framework that ‘The arts and scientiic research shall be free of programme in support of culture (2000–04) with a total constraint’. Article 22 stipulates that ‘the [...] EU shall respect budget of EUR 167 million for a ive-year period. Its purpose cultural, religious and linguistic diversity’. was to simplify action by using a single instrument for The Treaty establishing a Constitution for Europe, Article III- inancing and programming cultural cooperation. The 180 of which is devoted to culture, recommends the programme aimed to: promote cultural dialogue and application of qualiied majority voting. mutual knowledge of the culture and history of European peoples, promote cultural activity and transnational Objectives dissemination of culture and exchanges of artists and those working creatively and in other ways in the ield of culture The Community shall contribute to the lowering of the and their works, promote cultural diversity and the cultures of the Member States, while respecting their development of new forms of cultural expression, promote national and regional diversity and shall bring the common exchanges of experience on conserving Europe’s cultural cultural heritage to the fore. heritage and foster the intercultural dialogue between European and non-European cultures. In 2003 the Achievements programme was extended unchanged for the years 2005 and 2006. A. Action programmes Prior to the Maastricht Treaty coming into force, the 3. Culture 2007 Community provided small amounts of funding for Since Culture 2000 was very successful, in 2004 the cultural activities via the European Social Fund and the Commission submitted a proposal to establish the Culture European Regional Development Fund and through ad 2007 programme for the period 2007–13 (COM (2004)469). hoc initiatives. Its activity focused on measures in the areas Based on comprehensive evaluations and consultations, of protection of cultural heritage, grants for artists, the programme seeks to enhance the cultural actions assistance for literary translation and support for cultural referred to above. After long negotiations about the events. inancial perspective, during which the European Parliament (EP/Parliament) called for a substantial increase 1. First generation of cultural programmes in the funding provision, the budget was set at EUR 400 With the introduction of a legal basis for culture in the million (Decision 1855/2006/EC). The programme aims to Maastricht Treaty, the EU’s cultural activities were organised promote the transnational mobility of people working in more systematically through three cultural programmes: the cultural sector, encourage the transnational circulation — The Kaleidoscope programme was set up in 1996 and of artistic and cultural works and products and encourage aimed to encourage artistic creation and to promote intercultural dialogue. awareness and dissemination of the culture of the With a view to the wider signiicance of culture for the peoples of Europe; process of European integration, the Commission is — The Ariane programme was adopted in 1997 in order to preparing a comprehensive communication for 2007. It will increase cooperation between Member States in the analyse the role of culture in the process of European ields of books and reading, and through translation to integration and identify new key areas for cultural promote a wider knowledge of literary works and the cooperation with regard to both content and method. history of the European peoples. Vocational training 4. Support for European bodies measures in these ields were also among the range of European Parliament and Council Decision 792/2004/EC measures funded; established an action programme to promote bodies active
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at European level in the ield of culture for the period 2004– 3. Cultural goods 06, with a reference amount of EUR 19 million. The general According to Article 30 of the Treaty, prohibitions or objective is to support the activities of bodies whose work restrictions on the import, export or transit of national programme or actions pursue an aim of general European treasures possessing artistic, historic or archaeological value interest. From 2007, support for these bodies will come are permissible so long as they do not constitute a means under the Culture 2007 programme. of discrimination or restriction on trade between Member States. In view of the implications of the abolition of frontier B. Other activities controls in connection with the consolidation of the 1. European Capital of Culture internal market, rules were needed for the protection of The European Capital of Culture was launched in Athens in cultural goods. Therefore the EU adopted a Regulation 1985 and was a genuine success. In 1999, Decision (EEC) No 3911/92 according to which the export of cultural 1419/1999/EC changed the selection procedure for goods is subject to the presentation of an EU export European Capitals of Culture from 2005. These are licence, which is valid throughout the Community and is designated by the Council, acting on a recommendation checked at the external borders. Council Directive 93/7/EEC from the Commission, which takes the opinion of a was adopted in 1993 to secure the return of national selection panel into consideration. Annex I of the decision treasures of artistic, historic or archaeological value that comprises a list of Member States that may present an have been unlawfully removed from a Member State’s application from one or more of their cities between 2005 territory. and 2009. When Decision 649/2005/EC came into force, the new Member States were also able to propose candidate 4. Cultural industries cities. This means that from 2009 two capitals will be The cultural industries, cinema, audiovisual media, designated each year: one in one of the old Member States, publishing, craft industry and music, make a large and the other in one of the new Member States. To further contribution to job creation and economic welfare, as improve the selection process, on 24 October 2006 a new recently conirmed by a study carried out for the decision was adopted (1622/2006/EC). This decision Commission in autumn 2006. In view of the tensions stresses the European dimension, encourages competition between culture and the economy, and to protect cultural between candidate cities in the Member States, and diversity, in some cases the cultural industries need provides more support to the selected cities in their diferent rules from those that apply to other sectors of preparation phase. The new procedure will come into force industry. Because of the special nature of the cultural in 2013. industries, in the WTO trade negotiations the EU has always taken the position that certain cultural and 2. Rights of the artist and artistic work audiovisual sub-sectors should not be liberalised (the so- The EU has approximately 7 million people professionally called cultural exception). Similarly in the common active in the cultural sector. The EU supports the activities market, culture is to a certain extent exempt from the of artists through programmes such as Culture 2000, prohibition on state aid (Article 87.3(d)), and many Culture 2007 and Media, and the Treaty guarantees audiovisual services are exempt from the ield of freedom of movement for all, including professional artists. application of the Services Directive (2006/123/EC) However, as Parliament has pointed out in several adopted in December 2006; the text also clearly allows resolutions, this right, and therefore artists’ mobility, is often measures to protect or promote cultural or linguistic hampered by national administrative barriers, which still diversity or media pluralism. need to be removed. For the protection of cultural diversity the UNESCO general The EU has also established rights for the protection of the conference in October 2005 adopted the ‘Convention on work of artists through its copyright and intellectual the Protection and Promotion of the Diversity of Cultural property directives and legislation concerning resale rights, Expressions’. The convention contains a number of rights and rental and lending rights ("3.4.4). Cultural goods and and obligations concerning the promotion and protection services are subject to VAT (minimum standard rate: 15 %, of cultural diversity. Decision 2006/515/EC concerns the reduced rate: 5 %). European Community’s agreement to the Unesco As a way of supporting artistic and intellectual creativity, convention and its accession to it. the EU allows Member States to apply reduced rates of VAT Several times the EP has considered the speciic nature of to certain goods and services such as the supply of books cultural industries. In its resolution of 4 September 2003 it and periodicals, access to cultural events and reception of supported unanimity in Council in the ield of trade radio and TV broadcasts. regarding cultural and audiovisual services, which is also
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01_2006_4661_txt_EN.indd 369 30-10-2007 14:55:35 recommended by the Constitutional Treaty. Parliament Role of the European Parliament intends to discuss this topic again in 2007. Parliament believes that European integration should be 5. Town twinning and European citizenship based on cultural values. To this end Parliament decided to The idea of town twinning was born after World War II. It establish a Committee responsible for cultural matters after now brings together towns and localities from the whole of its irst direct elections in 1979. Parliament had for many Europe and promotes close links between their citizens. On years been of the opinion that the EC Treaty should include the initiative of Parliament, in 1989 the EU established a a legal basis for cultural policy. With the adoption of the support scheme for twinning events. Since 2004 town Maastricht Treaty, it not only saw this wish fulilled, but it twinning has been part of the Community action plan to also obtained co-decision competence with the Council. promote active European citizenship (2004–06). In 2005 In past years Parliament in its resolutions has called for the EUR 10 million was made available for town twinning. Every situation of those working in the ield of culture to be year the Commission awards ‘gold stars’ for town twinning improved and for Europe’s cultural heritage to be more to 10 outstanding projects which have made a successful appreciated. With regard to artistic creation, Parliament is in contribution to European integration. From 2007 town favour of giving the Member States the option of applying twinning will also receive support from the new Europe for reduced VAT rates to a wider range of services and goods citizens programme (2007–13). (See 4.16.7) This programme such as recorded music and ilms, provided that this does will inter alia increase exchanges and mobility of citizens not afect the functioning of the internal market. It called and promote civil society institutions working on European for the continuation of the lower VAT rate experiment for topics. some sectors (Resolution of 4 December 2003). Parliament 6. Intercultural dialogue also adopted a resolution on new challenges for the circus In view of the increasing multiculturalism of European (2004/2266(INI)), calling on the Commission to introduce societies, the Commission aims to intensify and give a mechanisms for Member States’ cooperation to guarantee better structure to the longstanding intercultural dialogue and promote an adequate education for children from which has been fostered by Community measures. To this travelling communities. Improving conditions for travelling end, intercultural dialogue will become a horizontal artists is also a concern of the own-initiative report on the priority in all Community programmes in this area. The social security status of artists, which Parliament will be Commission has also proposed to make 2008 the considering in 2007 (2006/2249(INI). European Year of Intercultural Dialogue. Through a number In another resolution, Parliament advocates better of diverse programmes in connection with this year, civil protection of cultural heritage in rural and island society and its various representatives will be encouraged communities (2006/2050(INI)). In addition, in talks on the to engage in dialogue at European, national and local new Culture 2007 programme, Parliament called for greater level. The relevant decision was adopted in December attention to be paid to protection of the European cultural 2006 (1983/2006/EC). heritage. MEPs are also calling for an increase in the budget for culture.
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4.16.5. Media policy
Legal basis debate with the national authorities and the audiovisual In the EC Treaty: industry on possible measures in this sector. — Articles 23, 25, 28–29 (free movement of goods), B. Later developments — Articles 39–55 (free movement of people, services and Important Community legislation was introduced in the capital), late 1980s and 1990s: — Articles 81–89 (competition policy), — Council Decisions 89/337/EEC and 89/630/EEC concerning High Deinition Television (HDTV); — Article 95 (technical harmonisation, including advanced television services), — Council Directive 92/38/EEC on the adoption of standards for satellite broadcasting of television signals; — Article 149 (education), 150 (professional training), 151 (culture), 157 (industry). — Council Decision 93/424/EEC on an action plan for the introduction of advanced television services in Europe, The Treaty of Rome did not provide any direct powers in aiming at promoting the widescreen 16:9 format; the ield of audiovisual and media policy. However, the powers to act in this sector grew implicitly over the years — The European Parliament (EP/Parliament) and Council thanks to the provisions of free movements of persons and Directive 95/47/EC on the use of standards for services and right of establishment. Competition rules and transmission of television signals, providing the the common commercial policy also play an important legislative framework for the introduction of digital part in the audiovisual ield. television in Europe. The Maastricht Treaty included a speciic reference to the During this period, major European audiovisual group audiovisual sector in Article 151 on culture. The Amsterdam strategies focused on the need to achieve critical mass and Treaty included a ‘Protocol on the System of Public the desire to diversify and secure access to larger Broadcasting’ in the Member States. The Nice Treaty altered international markets. A series of important mergers and Article 157 on industry, including the audiovisual industry, acquisitions took place, though many limited to a national replacing unanimity voting in Council with qualiied scale. majority voting. The Charter of Fundamental Rights of the C. The ‘Television without Frontiers’ directive EU states in Article II-11 that ‘the freedom and pluralism of 1. The 1989 directive the media shall be respected’. The adoption in 1989 of the ‘Television without Frontiers’ (TVWF) directive (89/552/EEC) marked a new departure. This Objectives directive, revised in 1997, established the legal framework for According to Article 151, the European Union encourages the free movement of television broadcasting services in the cooperation between Member States and, if necessary, EU. It provides rules concerning: (a) the circulation of supports and supplements their action in artistic and audiovisual programmes; (b) advertising and sponsorship; (c) literary creation, including the audiovisual sector. protection of minors; (d) availability to all of broadcasting of events of major importance to the public; (e) promotion of Achievements European works. Article 4 requires that broadcasters reserve a majority proportion of their transmission time to European A. First Steps works. Article 5 requires that 10 % of their transmission time Until the 1980s EU activity in the audiovisual sector was or programming budget be dedicated to works by European nearly non-existent. The fact that the EU was perceived to independent producers. be lagging behind the United States in this area forced it to 2. The ‘Audiovisual Media Services’ directive take initiatives. The Commission’s White Paper on the completion of the single market (1985) mentioned several In December 2005, the Commission again proposed a initiatives intended to open up the audiovisual market to revision of the directive (COM(2005) 646). This was competition in the Member States and promote high- necessary in order to account of developments in the deinition television. The European Year of Cinema and sector, in particularly ‘convergence’ in services and Television (1988) provided the ideal opportunity for a technology. Convergence means that traditional distinctions between telecommunications and
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01_2006_4661_txt_EN.indd 371 30-10-2007 14:55:36 broadcasting are increasingly blurred. A television channel, 0078/2002). In November 2005 the EP and the Council for example, can be viewed on a computer via the Internet. adopted a recommendation on ilm heritage and the Another issue was the growth in ‘non-linear’ services, which competitiveness of related industrial activities (2005/865/ allow consumers to select which programmes to watch at CE). They call on Member States to collect, catalogue, an hour of their convenience. A common regulatory preserve and restore European ilm heritage, in order to environment is therefore required to cover all such services, ensure that it is passed down to future generations. now known as ‘Audiovisual Media Services’, irrespective of 2. Europe Day at Cannes and Film Online the technology used to carry them or how they are viewed. Since 1995 ‘Europe Day’ at the Cannes Film Festival has The Commission’s proposal modernises and simpliies the focused on promoting European ilm production. A ‘New rules for broadcasting or linear services and introduces talent in the European Union’ award was introduced in minimum rules for non-linear services, for example on the 2004 in order to publicise young European authors who protection of minors. The proposal has been have followed MEDIA sponsored training. comprehensively debated prior to irst reading in Parliament (see below). In May 2006 EU audiovisual ministers endorsed the ‘European Charter on Film Online’ under the auspices of the D. The MEDIA programmes European Commission. The charter seeks to identify a The European ilm landscape is characterised by strong business model for online ilm services and enhance American market dominance. In order to promote the cooperation in the ight against online piracy. competitiveness of the European ilm and audiovisual 3. Cultural diversity industry, the MEDIA I Programme was established for a period of ive years (1990–95). MEDIA II (1996–2000) was The EU and its Member States have often emphasised the allocated EUR 310 million and was followed by MEDIA Plus special nature of the audiovisual sector. The sector has an (2001–05), which had a total budget of EUR 400 million important political, social and cultural role and, despite its (EUR 50 million for training and EUR 350 million for growing economic importance, cannot be viewed from a development). In July 2004, the Commission presented a purely economic standpoint. Therefore the EU has always proposal to create a new programme, MEDIA 2007 taken the position in World Trade Organisation (WTO) (COM(2004) 470) under the co-decision procedure (see negotiations that certain cultural and audiovisual sub- below), which is currently being discussed in Parliament. sectors should not be liberalised (the so-called ‘cultural exception’). The Commission has therefore supported the However, EU aid to the audiovisual sector is still relatively idea of developing a new international instrument on modest, and should be seen as complementing rather than cultural diversity in the framework of the United Nations substituting the actions of Member States. According to Educational, Scientiic and Cultural Organisation (Unesco). igures from the European Audiovisual Observatory, In October 2005 such an instrument came into being, subsidies paid by EU-25 to the cinema industry totalled when Unesco approved the ‘Convention on the Protection EUR 1.3 billion in 2004 alone. This igure is considered an and Promotion of the Diversity of Cultural Expressions’. In underestimate, as it does not include tax breaks. May 2006, the Council adopted a decision authorising the Since January 2006, the Education, Audiovisual and Culture Community to ratify the convention. The intention is that Executive Agency has taken over the operational the Member States and the EC ratify it simultaneously. management of the MEDIA-Plus and MEDIA-Training 4. Protection of minors and human dignity programmes. The protection of minors is an important element of E. Audiovisual initiative audiovisual policy, for which the TVWF directive contains The European Commission and the European Investment speciic provisions. In September 1998, the Council Bank decided in May 2001 to ofer additional inancial help adopted a recommendation on the ‘Protection of minors to the audiovisual sector. They created the ‘i2i Audiovisual and human dignity in audiovisual and information services’ Initiative’, which provides medium to long-term inancing. (98/560/EC), which covers all electronic media. The This ‘i2i’ initiative will form part of the new MEDIA 2007 recommendation ofers guidelines for the development of programme. national self-regulation regarding the protection of minors and human dignity. On the basis of a 2003 evaluation F. Other initiatives report the Commission decided to propose an update of 1. Film heritage the recommendation in April 2004 (COM(2004) 341). The EP has adopted several resolutions on the conservation Parliament adopted its irst reading report on this issue on of ilm heritage, for example the resolution on the deposit 7 September 2005 (P6_TA(2005)0330). The rapporteur of cinematographic works in the EU in November 2003 (C5- responsible is French MEP Marielle de Sarnez, whose
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report is expected to be adopted in second reading in amendments which were incorporated into Directive December 2006. 95/47/EC Parliament had insisted that the consumer should An additional measure in this area is the multiannual action not pay the price of technological progress. plan to promote the safer use of the Internet by combating A. Television Without Frontiers directive illegal and harmful content, which was established by a The EP has strongly supported the Television Without Parliament and Council Decision of 25 January 1999 Frontiers directive since 1989 and was even able to secure (276/1999/EC). that Member States be allowed to decide that some major G. The European Union’s communication policy national and international events, such as the Olympic There is a generally recognised deicit of knowledge and Games, have to be shown on ‘free channels’ when the interest of citizens in EU policies. Following a request from directive was revised in 1997. Parliament and the European Council, the Commission In a own-initiative report adopted in September 2005 (P6 assented to a new approach on information and TA(2005)0322) on the respect of Articles 4 and 5 of the communication in July 2002 (see COM(2002) 350), which TVWF directive, the EP noted that the quotas for European outlined the importance of working more closely with the works and works of independent producers had ‘broadly Council and the EP and in real partnership with the Member been met’, although underlining that there are States, both at national and regional level, to better inform discrepancies between the Member States on citizens about EU issues and to enable them to participate in implementing and interpreting these rules. Parliament also EU debates. In July 2005, the Commission adopted an warned that the upcoming revision of TVWF should not ‘call internal action plan aimed at modernising its into question the fundamental principles of the directive’. communication methods. The plan is the irst stage in an The EP held a public hearing on the ‘Audiovisual Media action programme aimed at enabling the Commission to Services directive’ in June 2006. The major concerns raised ‘renew dialogue with the citizens of the Union’. It consists of on this occasion were, inter alia, the scope of the directive, 50 measures to be implemented within Commission the distinction between ‘linear’ and ‘non-linear services’ departments in order to improve communication of policies. (given that the latter will not be obliged to respect quotas) In October 2005, the Commission adopted the and the impact of proposed rules on advertising and on communication ‘The Commission’s contribution to the so-called product placement. The EP will adopt its irst- period of relection and beyond: Plan-D for Democracy, reading report, for which the rapporteur is German MEP Dialogue and Debate’ (COM(2005) 494). Following the Ruth Hieronymi, before the end of 2006. negative votes on the European Constitution in France and the Netherlands, Plan-D seeks to encourage a broad public B. MEDIA 2007 programme debate and to create a new consensus on the future The EP’s amendments have been important in ensuring direction of the EU. With the aim of complementing the that the budget for the various MEDIA programmes was action plan and the Plan D, in February 2006 the increased. The EP places particular emphasis on Commission adopted a White Paper on a European independent producers, cooperation schemes and support communication policy. The paper launched a public for digitalisation. Moreover, Parliament has urged the consultation on ive key areas: (a) deining common Commission to encourage the Member States to introduce principles, (b) empowering citizens, (c) working with the tax incentives to attract investment in ilm. media and new technologies, (d) understanding public The Commission initially proposed a budget of EUR 1 055 opinion (e) and ‘doing the job together’. At the end of this million for MEDIA 2007 for the seven period starting in January period, the Commission will propose plans of action for 2007 (the so-called ‘Financial Perspective’). In its irst reading in each working area. October 2005, the EP supported this igure. But EU leaders, at the Brussels European Council held two months later, decided Role of the European Parliament to introduce funding cuts in the overall Financial Perspective, The EP has emphasised that the EU should stimulate the which signiies that the MEDIA 2007 budget will be lower than growth and competitiveness of the audiovisual sector initially proposed by the Commission. Parliament will vote on whilst at the same time recognising its wider signiicance in the programme in October 2006 to allow it to enter into force safeguarding cultural diversity. The EP’s resolutions in the on time (January 2007). 1980s and early 1990s on television repeatedly called for C. Media pluralism common technical standards for direct broadcasting by The EP is worried about increasing media concentration satellite and advocated the Community’s adoption of a and has called on the Commission and the Member States common position on the question of HDTV standards. In its
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01_2006_4661_txt_EN.indd 373 30-10-2007 14:55:36 to safeguard media pluralism. In a report adopted in 2003 while guaranteeing European citizens equal access to this (P5_TA(2004)0373) Parliament stressed that the EU should shared heritage (see above). use its competences in speciic areas (for example audiovisual policy, competition policy and citizens’ rights) E. Communication policy to ‘specify the minimum conditions to be respected by the In a report being drawn up by Spanish MEP Luis Herrero- Member States to ensure an adequate level of pluralism’. Tejedor, Parliament will react to the Commission’s White Paper on communication policy before the end of 2006. D. Film heritage Parliament has encouraged the Member States to adopt a g Constanze ITzEL system of obligatory ilm deposit and to improve the Gonçalo MACEDO restoration and conservation of cinematographic heritage, 09/2006
4.16.6. Sport policy
Legal basis As a general rule, and based on the existing Treaty In the EC Treaty: provisions supported by the case law of the ECJ and decisions of the European Commission, it can be stated — Articles 39–55 (free movement of people, services and that sport, whenever representing an economic activity, capital); falls under the scope of EC rules. Sport in Europe, however, — Articles 81–89 (competition policy); is characterised by a very close relationship between its professional and amateur branches. This structure, — Articles 149 (education), 150 (professional training), 151 described as the European sports ‘pyramid’ model, is (culture), 152 (public health). founded on local and amateur sport and ends in the highly Although no article in the Treaties mentions sport explicitly, in professional leagues and respective federations. The practice many areas of EU competence have a direct impact diferent layers are linked by the fact that competitions are on sport — notably on its economic aspects. These are not closed (relegation is possible) and through certain governed, for example, by the articles on the freedom of redistributive measures which channel some of the proits movement of workers. However, EU leaders gave a political from the top to the amateur level. Therefore, a clear signal that they wished to recognise the wider role played by separation between professional and amateur and sport by including a declaration on sport in the 1997 between economic and non-economic sporting activities Amsterdam Treaty. The Nice Treaty also included a declaration in practical terms would be impossible to achieve. on the ‘speciic characteristics of sport’, which recognised its important social, educational and cultural functions. Objectives The Treaty establishing a Constitution for Europe goes even In its action under the various Treaty provisions and further in recognising sport as a strand of EU policy. Article declarations, the EU deals with the economic, social, I-17 includes sport among the areas in which the EU can educational and cultural aspects of sport. take supporting, coordinating or complementary action. Article III-282 makes speciic reference to the social and educational functions of sport and to the development of Achievements the European dimension in sport. Many aspects of EU policies have an impact on the sporting world. In addition to those listed above, it is worth Due to the lack of a speciic legal basis, European sports law mentioning audiovisual policy and health policy. has been shaped to a great extent by the case law of the European Court of Justice (ECJ). This situation has lead to a A. Free movement of workers high degree of legal uncertainty as it is not clear up to what As an economic activity under the terms of Article 2 of the point sporting organisations are competent to act EC Treaty, sport must comply with European law, in autonomously as self regulators and where, on the other particular the provisions relating to the free movement of hand, the European regulator should intervene. workers, as acknowledged by the Court of Justice ruling in
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the Walrave case (1974). Since then, various cases (Dona, Many broadcasters are willing to pay large amounts for the Deliège, Lethonen) have conirmed this approach. In exclusive right to broadcast popular sports events. In this December 1995 the Court, basing its reasoning on Article regard the ‘Television without Frontiers’ directive, currently 48, ruled in the very important Bosman case (C-415/93) being amended, is important since it sets out guarantees as that transfer fees, directly afecting a footballer’s access to regards the unencoded broadcasting of certain major the employment market in another EU country, were an sporting events. The directive allows national authorities to obstacle to the free movement of workers and thus illegal specify a limited number of events which must be available under the Treaty. The court also ruled against any limit on for broadcasting on ‘free’ channels. the number of non-national EU players who could be ielded in a club team. In December 1998, following a D. Public health and the ight against drug-taking number of complaints, the Commission expressed several EU Member States have national legislation to combat reservations to the International Federation of Football drug-taking in sport, but EU Sports ministers and the EU Associations (FIFA), with regard to its transfer system and its institutions have taken the view in several resolutions that compatibility with EU competition law and free movement the current situation can only be improved by increased of workers. After long discussions, the Commission, FIFA cooperation at the EU and international levels. The World and UEFA (the Union of European Football Associations) Anti-Doping Agency (WADA) was established on 10 and professional footballers’ representatives (FIFPro) agreed November 1999 to promote and coordinate the ight in 2001 to bring the transfer system in line with EU law against drug-taking in sport in all its forms at international whilst taking account of the speciic nature of football. level. The European Commission played an active part in setting up WADA. The conclusions of the informal meeting B. Competition policy of EU Sports ministers on the ight against doping in There are two strands to sport: on the one hand, the February 2003 stated that the third draft of the WADA anti- sporting activity itself which fulils a social, integrating and doping code (which was approved during the WADA cultural role to which the competition rules of the Treaty do Copenhagen Conference in March 2003) should be fully not theoretically apply, and, on the other hand, a series of binding on athletic bodies and organisations at all levels. economic activities generated by sporting activities to The ministers also stressed that close cooperation between which the competition rules of the Treaty do apply. The the EU, the Council of Europe and the United Nations interdependence and in particular the overlap between Educational, Scientiic and Cultural Organisation (Unesco) these two strands makes the application of competition was needed in order to properly tackle the problem of rules more complex. doping and its international and cross-border nature. Sporting federations are considered under EC law E. Sport and education ‘undertakings’ and therefore fall under the scope of EC On 6 February 2003, the European Year of Education antitrust rules. Hence Articles 81 and 82 of the Treaty play through Sport (EYES) 2004 was established by Decision an important role in the sports sector. The Commission has 291/2003 of the European Parliament (EP) and the Council. the task of ensuring that EU competition rules are While this initiative had many aims, particular importance respected. Many complaints brought before the was attached to raising young people’s awareness of the Commission and court cases are based on the claim that a importance of sport in the development of personal and sports body has misused its power and breached antitrust social skills and to encouraging the links between rules (see for example the recent case Meca-Medina and education and sport. EYES was very successful, making it Majcen v Commission, Case C-519/04 P). possible to inance 161 projects (including 10 Community Another competition aspect is state aid (Articles 87–89). projects, i.e. projects that brought participants together Many sport clubs rely on subsidies granted by local from more than eight European countries). There was also community, regional or national authorities (in the form of an information campaign on the educational value of sport. tax breaks, preferential conditions for loans, etc), especially This success led experts to recommend that European when it comes to inancing sports infrastructure. This action in the ield of education through sport should be practice, depending on the speciic circumstances, could continued. be considered a breach of state aid rules. Furthermore, sport is an important instrument to promote C. Sports events and audiovisual policy positive societal values such as the ideal of team spirit or Television is the primary source of funding for professional fair competition. It is also a means of inclusion of socially sport in Europe. Some sports, such as football and Formula disadvantaged people (for example immigrants) into 1, achieve very high viewing igures, which explains the society. An example is the Homeless World Cup, held in importance attached to these events by broadcasters. South Africa in September 2006.
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01_2006_4661_txt_EN.indd 375 30-10-2007 14:55:36 The European Commission will address the societal role of D. Professional football sports in the EU in a White Paper which is due to be In May 2006 four EP committees organised a joint public published in 2007. hearing on ‘Professional Football — Market or Society?’ The hearing covered all aspects of professional football, ranging Role of the European Parliament from its inancial situation to its social role and was The EP is very much of the view that there is a growing organised to contribute to an own-initiative report on the necessity for the EU to deal with sports matters while fully future of professional football in Europe, which the EP respecting the principle of subsidiarity, and is therefore in should adopt in early 2007. Belgian MEP Ivo Belet will draw favour of including an explicit reference to sport in the up the report on behalf of the Committee on Culture. There Treaties. Within the EP, the development of a European is consensus that one main aspect should be how greater sports policy falls under the competence of the Committee legal certainty for professional football can be achieved. on Culture and Education. Another area of concern is inancial transparency, linked to the question of ownership of clubs. The inancial capacities A. Sport and education of clubs are becoming increasingly unequal. This growing As early as 1997 the EP asked the Commission to organise a inequality is naturally leading to greater concentration of European year of sport, which resulted in the establishment sporting success, meaning that the number of clubs which of EYES 2004. In the irst half of 2007 the EP is expected to participate in and win European competitions is becoming adopt an own-initiative report, drawn up by Hungarian smaller. A ‘level playing ield’ for clubs is therefore needed. MEP Pál Schmitt, on the follow-up to EYES, which will take stock of the current situation. The EP has also The hearing underlined the fact that EU law, in the wake of commissioned a study on the situation of physical the jurisprudence of the Bosman ruling, can be more in education in the EU from academic experts. Their indings tune with the economic aspects of football than with its should be available in February 2007. educational role. A well-known example lies in the fact that leagues are currently prevented from limiting the number B. Drug-taking of non-national EU players ielded by clubs, which The EP is very concerned by doping in both professional undermines the links between clubs and local and amateur sport and strongly supports the Commission’s communities and their commitment to training young plan to intensify cooperation to combat doping at local players. international level. In November 2004 the Committee on The EP has also been concerned by incidents of racism in Culture organised a public hearing designed to draw professional football. In May 2006 it adopted a written attention to the subject. declaration calling on UEFA to ensure that referees have the C. Women’s sport option, according to clear and strict guidelines, to stop or abandon matches in the event of serious racist abuse. The EP has also called for greater recognition of the speciically female dimension of sport, in terms of both practice and access, and has called on the European g Constanze ITzEL Commission to support the promotion of women’s sport. Gonçalo MACEDO 09/2006
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4.17. Tax policy
4.17.1. General tax policy
Legal basis fallen, while that on less mobile factors, notably labour Action in the general taxation ield can be justiied by the — for example social charges — has risen. This, in turn, general aim of the EC Treaty, expressed in Article 3, of has raised unemployment; eliminating between Member States ‘customs duties [...] — the Maastricht Treaty provisions on economic and and all other measures having equivalent efects’; and of monetary union introduced a new dimension to ‘ensuring that competition in the common market is not general taxation policy by severely limiting distorted’. Article 93 deals speciically with indirect taxation governments’ ability to inance public expenditure by (VAT and excise duties). Measures in other tax ields are borrowing. Under the Stability and Growth Pact, generally taken on the basis of Article 94 (completed by Member States participating in the euro area must not Articles 96 and 97) covering measures to prevent at any time run budget deicits at a level above 3 % of distortions of the market. Article 293 also recommends the GDP. The general aim of the pact is for Member States’ conclusion of inter-State iscal conventions in order to budgets to be roughly in balance over the economic avoid double taxation. cycle. At any given level of GDP, higher public spending can therefore be inanced only via higher tax receipts. Objectives Despite broad acceptance of these objectives, however, Both the creation of the single market and the completion national governments have been reluctant to see any of economic and monetary union have led to new major steps towards the harmonisation of taxation within Community initiatives in the ield of general taxation. The the Community, or to end the Treaty provision that tax Community is pursuing a number of objectives: measures must be adopted by unanimity in the Council. As the Commission pointed out in a 1980 paper entitled ‘The — a irst, long-standing aim has been to prevent Scope for Convergence of Tax Systems in the Community’ diferences in indirect tax rates and systems from (COM(80) 139), not only is ‘tax sovereignty [...] one of the distorting competition within the single market. This fundamental components of national sovereignty’, but tax has been the purpose of legislation under Article 93 on systems difer widely as a result of diferences in economic VAT and excise duties ("4.17.1., 4.17.2. and 4.17.3.); and social structures and ‘diferent conceptions of the role — in the ield of direct taxation, where the existing legal of taxation in general or of one tax in particular’. framework mostly takes the form of bilateral Average EU tax receipts rose from 34.4 % of GDP in 1970 to agreements between Member States, the primary 40.7 % of GDP in 2004 (EU-25); but igures vary considerably objective of Community action has been to close the between Member States. According to the latest available loopholes which permit tax evasion and to prevent oicial data (Eurostat — 2004) overall taxation and social double taxation ("4.17.5.); security contributions, for example, are just over 28 % in — the objective of more recent moves towards a general Latvia and Lithuania and 30 % in Ireland but nearly 51 % in taxation policy has been to prevent the harmful efects Sweden. Taxes on production and imports (as % of GDP) of tax competition, notably the migration of national tax ranged from 11.3 % in Lithuania to 17.7 % in Denmark (EU- bases as irms move between Member States in search 25 arithmetic average 13.9 %). Taxes on income and wealth of the most favourable tax regime. Though such vary between 6.1 % in Slovakia and 30 % in Denmark (EU- competition can have the beneicial efect of limiting 15 average 12.5 %). Social security contributions vary from governments’ ability to ‘tax and spend’, it can also distort only 1.2 % in Denmark to just over 16 % in Germany and tax structures. It is argued that the proportion of total France (EU arithmetic average 13.1 %). The Danish igures taxation accounted for by taxes on relatively mobile demonstrate how the social security system can be almost factors like capital (interest, dividends, corporate tax) has entirely inanced by taxes, as is the case in Denmark.
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01_2006_4661_txt_EN.indd 377 30-10-2007 14:55:37 Achievements would be more ready to initiate action where it believed that Community law was being broken and would A. General ensure the correct application of the European Court of In 1996 the Commission proposed a comprehensive review Justice’s judgments; of taxation policy (‘Taxation in the European Union’ of 20 March (SEC(96) 487)). This highlighted the major challenges — instruments exist which, unlike regulations or directives, facing the Union: the need to create growth and do not directly create Community law. These include employment, to stabilise iscal systems, and to fully recommendations, opinions, communications, establish the single market. In June 1996 the Commission guidelines, and interpretative notices; also proposed a European Conidence Pact for — much recent progress in the tax ield — notably the Employment, emphasising the need to reverse the code of conduct on business taxation and the work of tendency of tax systems hindering employment. the Primarolo Group — has taken the form of non- In April 1996 the Council of Finance Ministers (Ecoin) set legislative agreements in the Council. The Amsterdam up a High Level Group on taxation chaired by the then Tax Treaty introduced the possibility of building on such Commissioner, Mario Monti. The Commission’s initial arrangements by enabling sub-groups of Member conclusions following the meetings of this group (in which States to conclude cooperation agreements within a the European Parliament (EP/Parliament) was represented) Community framework. appeared in October 1996: ‘Taxation in the European Union: B. Administrative cooperation Report on the Development of Tax Systems’ (COM(96) 546). Cooperation between the tax authorities of Member States The new European iscal strategy (the ‘Monti package’) was has been a key element in the implementation of EU tax published by the Commission in October 1997 (‘Towards policy, in particular to combat tax fraud. In the ield of VAT, Tax Coordination in the European Union: a package to such cooperation has been an essential part of the tackle harmful tax competition’, COM(97) 495). In addition transitional system introduced in 1993 ("4.17.2.), together to proposals on the taxation of interest and royalties, and with the computerised VIES facility for verifying VAT on the taxation of savings, it outlined a Code of Conduct for numbers. Recent initiatives have included a proposal to Business Taxation, which was approved by Parliament and computerise the movement and surveillance of excisable the Council, and is now in operation. Adherence to the products (COM(2001) 466); strengthening administrative code is monitored by a body appointed by the national cooperation in the ield of VAT (COM(2001) 294); and a inance ministers: the ‘Primarolo Group’ ("4.17.1.). Fiscalis programme to run from 2003–07, extending the In May 2001 the Commission published a new work of the previous programme in improving information communication entitled Tax policy in the European Union — exchange, joint investigation, training, etc. from the ield of Priorities for the years ahead (COM(2001) 260). This observed indirect taxation to that of direct taxation. that ‘a high degree of harmonisation is essential in the indirect C. The taxation of motor vehicles tax ield’. The current ‘transitional’ VAT system was ‘complicated, In September 1997 the Commission published a study on susceptible to fraud and out of date’. Nevertheless, Member Vehicle Taxation in the European Union (XXI/306/98). All States’ fears of losing revenue continued to make a ‘deinitive’ Member States, this noted, ‘rely heavily on a range of tax system, based on the origin principle, unacceptable to them. instruments to ensure signiicant budgetary receipts from The strategy of concentrating on improving the current both private and commercial road users’. But various system was therefore reairmed ("4.17.2.). pressures had resulted in ‘large diferences in the overall As regards personal incomes, on the other hand, ‘the view strategies followed’. Vehicle taxes were listed under three is that such taxes may be left to Member States’ subject to broad categories: their respecting ‘the fundamental Treaty principles on non- — taxes on the acquisition, purchase or registration of a discrimination and the free movement of workers’. In the vehicle: VAT, registration taxes (RT), and registration case of corporate taxation, a balance had to be found charges; between tackling direct obstacles to the internal market and the sovereignty of the Member States ("4.17.5.). — taxes on the possession or ownership of a vehicle: annual circulation tax (ACT) — usually through the Since the need for unanimity in Council limits the scope for purchase of a sticker to be displayed on the windscreen; legislation on tax matters, the Commission suggested other and obligatory third-party insurance, the premiums on possibilities (COM(2001) 260): which can incur tax; — the Commission intended to ‘adopt a more pro-active — taxes on the use of vehicles: VAT and excise duties on strategy generally in the ield of tax infringement’. It fuel; tolls.
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In September 2002 the Commission published a stressed that ‘tax competition is not at odds with the comprehensive strategy on the taxation of passenger cars completion of the internal market’. It might ‘in itself be an (‘Taxation of Passenger Cars in the European Union — efective instrument for reducing a high level of taxation’; options for action at national and Community levels’, and could help in attaining a reduction in administrative COM(2002) 431). This identiied a number of iscal obstacles burdens, an increase in competitiveness and a to the free movement of cars — either permanently or modernisation of the European social model. temporarily — from one Member State to another, for As regards excise duties, the report observed that ‘difering example, double taxation (although ACT is sometimes policies regarding the setting of levels of duties do not in reimbursed, unexpired RT is never reimbursed). The themselves constitute a barrier to the internal market, Commission accordingly proposed a gradual reduction of except when they are invoked to justify exceptions to the RT levels, with a view to total abolition, to be made up by free movement of goods’. circulation taxes. In July 2005 the Commission presented a proposal for a new Directive (COM(2005) 261). The report also dealt with the related issue of how far action concerning taxation should be decided at EU level. D. The taxation of pensions In principle, it stressed that ‘the subsidiarity principle should In June 1997 the Commission published a ‘Green’ guide EU taxation policy’ and that ‘decisions on levels of tax consultation paper on Supplementary Pensions in the must remain within the exclusive competence of the Single Market (DG XV). A report on the results of the Member States’. Where action at EU level was undertaken, consultation (‘Report on pensions Green Paper’, ‘the principle of unanimity should be retained whenever COM(1999) 134), observed that ‘tax distortions are regarded tax bases or rates of taxation are at issue […]’. by the industry and by the inancial sector as the main Nevertheless, the report also drew attention to a number of obstacles to the establishment of a genuine single market areas in which action at EU level was necessary: in supplementary pensions’. The Commission accordingly published a communication, ‘The elimination of tax — increased eforts were needed ‘to remove obstacles to the cross-border provision of occupational discrimination, double taxation and administrative pensions’ (COM(2001) 214). barriers’. There was ‘an urgent need for the Commission to tackle the main tax obstacles to cross-border activity The systems of taxing pensions can be classiied as follows: by European irms’, which meant action on the iscal — Taxed, Exempt, Exempt (TEE), where contributions must treatment of intra-group transfer pricing, cross-border be paid out of taxed income, but neither investment loss relief and cross-border lows of income between returns nor beneits are in principle subject to tax. Only associated companies; Germany and Luxembourg fall into this category; — tax competition had to take place ‘in the context of — Exempt, Taxed, Taxed (ETT), where contributions can be rules preventing improper conduct’. The ‘Monti package’ paid out of untaxed income, but where both should be implemented as quickly as possible, and investment returns and beneits are subject to tax. ‘especially the removal of those rules which discriminate Denmark, Italy and Sweden fall into this category; between residents and non-residents or leave loopholes — Exempt, Exempt, Taxed (EET), where neither for fraud and are thus incompatible with a single contributions nor investment returns are subject to tax, market’. Likewise, there should be support for the but where beneits are. All other Member States fall into initiatives taken within the OECD to restrict ‘the this category. distortions produced by tax havens’; The Commission’s preferred solution is to ‘strive for — progress towards a ‘deinitive VAT system which will alignment of Member States’ pension taxation systems on apply, in full, the country-of-origin principle’ should be a the basis of the EET principle’. priority, since there was a danger that ‘the current system, which was originally a transitional one, is increasingly becoming deinitive’. Measures to improve Role of the European Parliament the current system were nevertheless welcome; Parliament has generally approved the broad lines of the — the Council should adopt the framework directive on Commission’s programmes in the ield of taxation, the taxation of energy products ‘without delay’. The including the Monti package, the code of conduct and the ‘polluter pays’ principle should be applied more widely; work of the Primarolo Group. — ‘A multilateral tax agreement for the EU’, based on the Parliament’s most recent report on general tax policy OECD model tax agreement, should be framed to within the EU was adopted in March 2002. The resolution ‘overcome the problems faced by companies and tax
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4.17.2. Value added tax (VAT)
Legal basis entering another. Complex documentation was necessary Under Article 93 of EC Treaty, the Council is required to for goods transiting Member States. The Cecchini Report adopt measures for the harmonisation of ‘turnover taxes, concluded that frontier controls were costing intra- excise duties and other indirect taxes’ where this is Community traders around ECU 8 000 million, or 2 % of ‘necessary to ensure the establishment and functioning of their turnover. the internal market’. Achievements Objectives A. The VAT system Under the First VAT directive of 11 April 1967 Member 1. Initial proposals States replaced their general indirect taxes by a common The solution initially proposed by the Commission system in order to achieve transparency in the ‘de-taxing’ of (COM(87) 322) involved a change to the so-called ‘origin exports and ‘re-taxing’ of imports in trade within the EEC principle’. Instead of being zero-rated, transactions between (see below). All Member States had introduced a VAT by the Member States liable to VAT would bear the tax already early 1970s. charged in the country of origin, which traders could then In April 1970 the decision was taken to inance the EEC deduct as input tax in the normal way. In theory, this would budget from the Communities’ own resources. These were have resulted in goods moving between, say, England and to include payments based on a proportion of VAT and France, or France and Germany, being treated in exactly the ‘obtained by applying a common rate of tax on a basis of same way as those moving between England and Scotland assessment determined in a uniform manner according to or Bavaria and Hessen. There would have remained, Community rules’. The primary objective of Directive however, one big diference: VAT paid in England and 77/388/EEC of 17 May 1977 — generally known as the sixth Scotland goes into the same Treasury; that paid in England VAT directive — was to ensure that each Member State had and France does not. Estimates showed that there would a broadly identical ‘VAT base’: i.e. levied VAT on the same have been substantial transfers of tax revenues, notably to transactions. Numerous subsequent amending directives Germany and Benelux from the rest. Accordingly, the have attempted to remove anomalies. Commission proposed the establishment of a clearing system (COM(87) 323) to reallocate the VAT collected in the In 1985 the Commission published the ‘Single Market White countries of origin to the countries of consumption. This Paper’, Part III of which covered the removal of iscal might have been based on VAT returns, on macro- barriers. A substantial package of proposals for legislation economic statistics or on sampling techniques. was published between 1987 and 1990. The need for action arose from the ‘destination principle’ applied to 2. The transitional system transactions between Member States. The rates of VAT and The Commission proposals, however, proved unacceptable excise applied are those of the country of inal to Member State governments. In the second half of 1989, consumption; and the entire revenue accrues to that a high-level working party convened by the Council country’s exchequer. The method by which this system was outlined an alternative. then administered required physical frontier controls. As This retained the destination principle for transactions traded goods left one country, they were ‘de-taxed’ (e.g. in involving VAT-registered traders. This became the basis of the case of VAT, zero-rated); and were then ‘re-taxed’ on the transitional system proposed by the Commission in the
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following year, and which came into efect at the — VAT rates would be harmonised ‘within a rather beginning of 1993 (Directives 91/680/EEC of 16 December narrow band’; 1991 and 92/111/EEC of 14 December 1992). Though tax — the allocation of VAT revenues would be separated controls at frontiers have been abolished, traders are from the VAT system itself, and be carried out required to keep detailed records of purchases from, and according to national consumption statistics; sales to, other countries, and the system is policed by — the sixth directive would be revised to make the administrative cooperation between Member States’ tax system simpler, with fewer derogations, exemptions, authorities. options and special regimes; The origin principle generally applies to all sales to inal — steps would be taken to avoid difering national consumers: that is, once VAT has been paid on goods in interpretations of VAT law; the role of the VAT one country, they can be moved within the Community Committee would be strengthened; and without further control or liability to tax. There are three cooperation between tax authorities improved. ‘special regimes’ where this principle does not apply: In pursuit of this inal objective, a draft directive was — distance sales: Internet, mail-order or similar companies proposed to give the Committee on Value Added Tax, having sales over a certain threshold to any Member which consists of national representatives and is chaired State must levy VAT at the rate applied in that country by the Commission, more powers of decision (i.e. where the goods are delivered); (COM(97) 325). New proposals to replace the 6th VAT — tax-exempt legal persons (i.e. hospitals, banks, public directive with a system of deduction in the country of authorities, etc.): where these buy goods over a certain registration, together with a linked proposal on eligibility threshold from another Member State they are required for deduction (COM(1998) 377) was published in 1998. to pay VAT on them at their domestic rate, despite the However, all these proposals have been withdrawn by the fact that the deliveries are theoretically zero-rated (i.e. Commission. the customer rather than the vendor is accountable for 4. Viable strategy to improve the present system the tax); In 2000, the Commission shifted its emphasis from a move — new means of transport: boats, aircraft and cars under 6 to a ‘deinitive’ system towards measures to improve the months old are taxable in the purchaser’s country, even present ‘transitional’ arrangements. In June 2000 it if acquired in another Member State. published a communication on a Strategy to Improve the 3. Towards a ‘deinitive’ system Operation of the VAT System within the Context of the Internal Market (COM(2000) 348), outlining a new list of The original intention was that this transitional system priorities and a timetable. Improving the present system in should apply until the end of 1996. Under Article 35(a) of small steps rather than aiming for the ‘radical’ change the amended sixth VAT directive, the Commission was towards a deinitive system seems to be the more viable required to ‘submit proposals for a deinitive system’ before alternative. The deinitive system still remains, however, the the end of 1994, and for the Council to reach a decision on long-term objective. it before the end of 1995. However, no formal legislative proposals appeared. Instead, the Commission published On 20 October 2003, the Commission presented a two discussion documents: communication (COM(2003) 614) ‘Review and update of VAT strategy priorities’ containing an interim report on — ‘A Common System of VAT: a programme for the Single the progress made between 2000 and 2003. During that Market’ (COM(96) 328 inal of 22 July 1996). This outlined time, nine VAT-related proposals presented in 2000 had a timetable, running from late 1996 to mid-1999, during been adopted. The general assessment of the which the new system would be introduced in stages. Commission on the success of the new strategy as of — ‘Description of the General Principles, Commission 2000 was positive, stating that the new strategy had Services technical note’ (XXI/1156/96), which was provided the Council with some new impetus in VAT launched at a special conference on 4 and 5 November matters. 1996. The essentials were: Several directives have amended the sixth VAT directive — the ‘place of taxation’ would no longer be where (77/388/EC) in recent years. In line with the revised strategy goods are located, or services provided, but where of 2000, Community action in the short term should focus the suppliers’ business was established; broadly on simpliication, modernisation, a more uniform — invoicing and deduction of input tax would be application and administrative cooperation. Selected according to the origin system; amendments to the sixth directive include:
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01_2006_4661_txt_EN.indd 381 30-10-2007 14:55:38 (a) Simpliication and Modernisation mechanisms various loopholes exist to avoid tax payments. A simpliication of the ‘tax representative’ system Combating fraud is therefore a priority objective for the (COM(1998) 660) was published in 1998 and adopted by Community. Important amendments to the sixth directive Council in 2000. This directive annulled from the 1 January in this respect include administrative cooperation in the 2002 the obligation made to European operators by the ield of VAT (COM(2001) 294) adopted in 2003 and mutual VAT system to appoint a tax representative for non- assistance in the recovery of claims (COM(1998) 364) established taxable persons. adopted in June 2001. The Fiscalis programme currently running from 2003 to 2007 (Decision 2235/2005/EC) as well A directive on harmonisation of content of invoices and as the computerised VIES (VAT Information Exchange electronic invoicing modernisations (COM(2000) 650) was System) facility to verify VAT numbers (Regulation adopted by Council in 2002. This directive deined 638/2004) are meant to reinforce the functioning of particulars that must appear on an invoice and simpliied indirect taxation systems in the EU in general. and modernised to account for new invoicing technologies and methods. B. VAT rates The growing importance of information technology The Commission’s original proposals on VAT rates focused attention on the application of VAT in this area. The (COM(87) 321) were for ‘approximation’ within two tax Commission proposed a directive on value added tax bands: a standard rate between 14 % and 20 %; and a arrangements applicable to telecommunications services reduced rate between 5 % and 9 %. However, the main (COM(97) 4), following a decision by Council to apply a provisions of Directive 92/77/EEC of 19 October 1992 were: temporary derogation from the normal provisions of the — a minimum standard rate of 15 %, subject to review sixth directive, and apply a ‘reverse charge’ procedure every two years; (which remains in force). An amendment on VAT on e- commerce (COM(2000) 349) was adopted in 2002, which — the option for Member States to apply either a single or created a level playing ield in the taxation of e-commerce. two reduced rates over 5 % to any of the goods and services listed in Annex H of the amended sixth VAT On 7 October 2003 the sixth directive was amended by a directive; directive on the place of supply of gas and electricity (COM(2002) 688). Its purpose was to review the current VAT — derogations for certain Member States to apply a zero rules in order to avoid double or non-taxation by rate, a ‘super-reduced’ rate or a ‘parking’ (i.e. transitional) harmonising the rules governing the place of supply. rate, pending the introduction of a deinitive VAT system; Important legislation proposed by the Commission, but pending in Council include notably the so called ‘One-stop — the abolition of ‘luxury’ or higher rates. shop’ (COM(2004) 782) or the Taxation of postal services Commission reports on the results of this agreement have (COM(2003) 243). concluded that there have been no signiicant changes in (b) More uniform application and administrative cooperation cross-border purchasing patterns since 1 January 1993, nor any signiicant distortions of competition or delections of A Council Regulation of 17 October 2005 (1777/2005) sets trade through disparities in VAT rates. In 1995 the the basis for more uniform application of common EU rules Commission therefore proposed (COM(95) 731) no change under the sixth directive. As diferences in the practical in the 15 % minimum, but suggested a new maximum rate application of common rules was becoming a real obstacle, of 25 %. The Council, however, only agreed to make ‘every the regulation now gives legal force to a number of agreed efort’ not to widen the current 10 % span. A renewed approaches to elements of VAT law, ensuring transparency proposal to ix VAT rates in a 15 % to 25 % band was made and legal certainty for both traders and administrations. in 1998 (COM(1998) 693) which was also rejected by the A proposal for simplifying VAT charging to counter tax Council. In December 2005, the Council extended the 15 % evasion and avoidance and repealing certain decisions minimum VAT standard rate applied by the Member States granting derogations was presented in (COM(2005) 89) and until 2010 (2005/92/CE). As a derogation to this general approved by Council in July 2006. This gives all Member rule, permanent reduced VAT rates for a number of goods States the possibility to apply special rules to simplify the and services are allowed for under Annex H to Directive application of VAT as many have proved successful. Until 77/388/EEC. then, Member States could only apply such rules through Annex K of Directive 77/388/EEC allows for temporary individual requests, the right to which remains in force. reduced rates for a further list of labour-intensive services The administrative system for VAT requires a great deal of including small repair services, the renovation of private cooperation between administrations, as under existing dwellings, window cleaning and private household
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cleaning, domestic care services and hairdressing. A abolition of iscal frontiers at the earliest possible date’. communication by the Commission was published in Since then, Parliament has continued to support moving to November 1997 on ‘Job creation: possibility of a reduced a ‘deinitive’ system based on taxation in the country of VAT rate on labour-intensive services for an experimental origin, most recently in its resolution of 14 March 2002. In period and on an optional basis’ (SEC(97) 2089), and a recent years, Parliament has also been very committed to formal proposal in 1999 (COM(1999) 62). This was originally improving the working of the transitional arrangements agreed by the Council for a limited range of services and and has adopted numerous resolutions on VAT. In general, until the end of 2002. This period, however, has been it is mostly supportive of the Commission’s proactive stance extended at various occasions, most recently in February to simplify and modernise the present system. 2006 now lasting until 31 December 2010. B. VAT rates Much controversy has taken place concerning the In June 1991, Parliament supported a 15 % minimum continuing application of a zero VAT rate to certain goods standard rate; but proposed that the application of a and services, notably in the UK and Ireland. A speciic reduced rate to certain essential goods and services should derogation contained in Article 28 of the sixth directive, be mandatory rather than optional. It also proposed that refers back to Article 17 of the second VAT directive of 11 ‘no reduced rate may be more than 9 %’, i.e. that zero might April 1967. The zero rates already in force on 31 December be considered a legitimate reduced rate. 1975 can continue provided that they exist for clearly deined social reasons; that they beneit the inal consumer; At irst, Parliament voted against the proposed 25 % upper and that the ‘origin principle’ is still not being generally limit on the VAT standard rate in 1997, but in 1998 applied. Sweden and Finland have the right to continue approved a 15–25 % standard rate band under certain applying a zero rate where another Member State already conditions. In December 2005, Parliament then voted for a applies it to the same products or transactions. maximum rate of 25 %. In May 1998 Parliament also urged action to ensure a uniform application of rules on reduced VAT rates. It also pressed for Member States to be given the Role of the European Parliament option of applying a reduced rate to certain labour- According to Community legislation in the ield of VAT intensive or environmentally-friendly activities — pressure (mostly based on Article 93 and 94 EC Treaty), the European which was eventually successful. The most recent Parliament’s (Parliament’s) role is limited to the consultation resolution of Parliament conirming its support for reduced procedure (CNS). rates for certain labour-intensive services dates from 1 A. The VAT system December 2005. In its resolution of 15 July 1991, Parliament accepted the transitional regime ‘on the understanding that both g Arttu MAKIPAA Commission and Council are committed to the full 09/2006
4.17.3. Excise duties: alcohol and tobacco
Legal basis Levying duties on products from other Member States at Under Article 93 of EC Treaty, the Council is required to higher rates than on those domestically produced is adopt measures for the harmonisation of ‘turnover taxes, discriminatory, and forbidden by Article 90 of the EC Treaty. excise duties and other forms of indirect taxation’ where Very large discrepancies in the duty on a particular product this is ‘necessary to ensure the establishment and can result in tax-induced movements of goods, loss of functioning of the internal market’. revenue and fraud. Attempts have therefore been made since the early 1970s Objectives to harmonise both structures and rates, but progress has The rates and structures of excise duties vary between been slight, in part because of considerations other than Member States, afecting competition. the purely iscal. For example, high levels of duty have been
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01_2006_4661_txt_EN.indd 383 30-10-2007 14:55:38 imposed in some Member States as part of general policies — intermediate products: ECU 45 per hl; to discourage drinking and smoking. On the other hand, — still wine and sparkling wine: ECU 0 per hl; wine and tobacco are important agricultural products in some Member States. — beer: ECU 0.748 per hl/degree plato or ECU 1.87 per degree of alcohol. Achievements Under the terms of the directive, the Council should have reviewed these rates by the end of 1994 and adopted any A. Alcoholic beverages necessary changes. However, no Commission proposals A further diiculty in the case of alcohol has been were published. A draft text suggested raising the disagreement about the extent to which diferent products minimum rates on spirits, intermediate products and beer are in competition with each other. In 1983 the Court ruled to maintain their real value, and raising the minimum for on the levels of duty in the UK on wine and beer (Case wine from zero to ECU 9.925 per hl, but the text was not 170/78 ECR (1985)). The Court’s view was that the products adopted. A Commission report on the rates of excise duties could be considered substitutes since ‘the two beverages was eventually published in September 1995 (COM(95) 285 are capable of meeting identical needs’. The Commission inal). Instead of suggesting new levels of minimum excise has traditionally taken the view that ‘all alcoholic drinks are rates, this proposed that the whole issue should be more or less in competition’ (COM(79) 261). However, examined in the course of general consultations on excise research for the Commission (see Study on the competition duties with national administrations and with trade and between alcoholic drinks: inal report, Customs Associates other interest groups. Ltd., February 2001) indicates that the degree of competition varies between diferent products. Following debate in the Council, the Commission presented a proposal in September 2006 to review the 1. Structures minimum rates and carry out an inlation adjustment for The Commission’s initial proposals to harmonise excise the period after 1992. The Commission’s preceding report duties on beer, wine and spirits were made in 1972 (COM(2004) 223) was presented to the Council on 26 May (COM(72) 225). Work on these in the Council was 2004. However, the Commission then had not made any suspended at the end of 1974, and remained so despite proposal concerning levels of alcohol taxation because communications in 1977 (COM(77) 338) and 1979 there was no agreement on how a rate adjustment should (COM(79) 261). New draft legislation (COM(85) 15) was also be achieved. Member States have very diferent views on blocked. The single market programme of 1985, however, the importance of alcohol excise duty rates, relecting their created a new impetus. All the existing texts on structures own national circumstances, cultures and traditions. In were eventually replaced by a new proposal (COM(90) 432), 2006, however, the inlation adjustment was strongly which became Directive 92/83/EEC in October 1992. It brought forward by the Finnish presidency. deines the products on which excise is to be levied, and Below are the current minimum rate levels laid down in EU the method of ixing the duty (e.g. in the case of beer by legislation, which Member States are required to observe reference to hl/degree plato or hl/alcohol content). when setting their national rates. The following table shows 2. Rates the minimum rates for each product category expressed in The Commission’s initial proposals under the single market euro per hectolitre per degree of alcohol, as well as the programme (COM(87) 328) were that for each product there minimum rate expressed per litre of product at a degree of would be a single Community rate, ixed as the average of alcohol at which it is commonly sold. existing national rates. For both wine and beer this would have been ECU 0.17 per litre, and for spirits ECU 3.81 per B. Tobacco products 0.75 litre bottle. Unlike VAT, however, few national alcohol 1. Structures excise rates are close to the average rate. No Member State The basic structure of tobacco excise rates within the found the proposals acceptable. The Commission then Community was established in 1972 by Directive 72/464/ proposed a more lexible approach (COM(89) 527). Instead EEC. Between then and 1978 the directive was modiied 13 of single, harmonised rates there would be minimum rates times. A second directive (79/32/EEC) was adopted at the and target rates, on which there would be long-term end of 1978. Finally, both directives were modiied in the convergence. Only the minimum rates were retained in light of the single market programme by Directive 92/78/ Directive 92/84/EEC. The levels agreed were: EEC. All these directives are now covered by a single consolidated text (COM(94) 355 of 3 October 1994). The — alcohol and alcoholic beverages (i.e. spirits): ECU 550 categories of manufactured tobacco subject to taxation are per hl/alcohol; deined as cigarettes; cigars and cigarillos; smoking tobacco
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Product category Minimum rate in euro per 100 litres Minimum rate in euro per litre of product per degree of alcohol at the degree at which it is commonly sold Wine 0 Wine (12°) 0 Beer 1.87 Beer (5°) 0.1 Fermented beverages other than wine 0 Cider (5°) 0 and beer (e.g. cider and perry) Intermediate products (e.g. fortiied 2.5 Intermediate products (18°) 0.45 wines such as port wines, sherry, etc. up to 22° alcohol) Ethyl alcohol and spirit drinks 5.5 Spirits (40°) 2.2
(ine-cut for rolling cigarettes); and smoking tobacco speciic rate (ECU 19.5 per thousand) plus the average (other). proportional rate (53 % including VAT). In the end, the In the case of cigarettes, the tax must consist of a directives on cigarettes (92/79/EEC) and other tobacco proportional (‘ad valorem’) excise duty, calculated as a products (92/80/EEC) set only minimum rates. percentage of the maximum retail selling price, combined — Cigarettes: 57 % of the tax-included retail price. with a speciic excise duty, calculated per unit of the — Hand-rolled tobacco: 30 % of the tax-included retail product. Both rates must be the same for all cigarettes, and price, or ECU 20 per kilo. the speciic rate must be set ‘by reference to cigarettes in the most popular price category’. — Cigars & cigarillos: 5 % of the tax-included retail price, or ECU 7 per 1 000 or per kilo. Establishing clear criteria has nevertheless proved an intractable problem. The directive states that ‘at the inal — Pipe tobacco: 20 % of the tax-included retail price, or stage of harmonisation of structures’ the balance between ECU 15 per kilo. the speciic element and the proportional element Both directives required the Council, on the basis of a (including the VAT charged on top of the excise) should be report from the Commission, to examine these rates, and to the same in every Member State. The ratio should also adjust them if necessary, before the end of 1994. The ‘relect fairly the diferences in the manufacturers’ delivery Commission report, eventually published in September prices’. The most that was achieved, however, was that the 1995 (COM(95) 285), noted that, in the case of cigarettes, a speciic element ‘may not be lower than 5 % nor higher strict application of the 57 % threshold risked widening than 75 % of the aggregate amount of the proportional rather than narrowing the divergences between national excise duty and the speciic excise duty’, nor more than excise rates. However, where the earlier drafts had 55 % of the total tax burden (i.e. after VAT is added). advocated the adoption of the solution recommended by The diiculty in reaching a ixed ratio relects the structure the European Parliament (EP/Parliament) (see below), the of the Community tobacco industry. A speciic tax — so inal report merely noted that ‘appropriate proposals will be many euro per thousand cigarettes — beneits the more brought forward’ if necessary. In the case of hand-rolled expensive products of the private companies by narrowing tobacco, the report observes that the ‘situation is giving rise price diferences. A proportional tax, particularly when to considerable fraud’ but that the cause ‘does not lie combined with VAT, has the opposite efect, multiplying up exclusively in the taxation domain’. price diferences. Within the broad ratio so far laid down, A further report published in May 1998 advocated a some Member States have chosen a minimum speciic solution to the ‘57 % problem’ through a technical element, others have chosen a maximum, so contributing adjustment giving Member States more lexibility in to variations in retail prices. applying minimum rates. It also proposed increases in the 2. Rates speciic minimum amounts to take account of inlation: The Commission’s original proposals on excise duties within +18.5 % for the period 1992–98 and +4.5 % for 1999 and the context of the single market programme (COM(87) 325 2000 inclusive (though no Member State actually charges and COM(87) 326) were for the absolute harmonisation of below the resulting rates). Finally, it proposed that reviews rates. For tobacco products, the proposed rate was the of the system should in future take place every ive rather arithmetic average: in the case of cigarettes, the average than every two years. These proposals were not adopted.
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01_2006_4661_txt_EN.indd 385 30-10-2007 14:55:38 A new report and draft directive (COM(2001) 133) was On tobacco products, the opinion adopted by Parliament published in 2001. This proposed: accepted the initial ixing of minimum rates only, but stated — a EUR 70 minimum speciic excise duty in conjunction that the various taxes ‘should be approximated stage by with the 57 % rule. As regards cigarettes, most stage with a view to achieving single target rates’. Member States would have to apply a minimum excise Parliament agreed with a minimum overall rate of 57 % for incidence (speciic and ad valorem together) of 57 % of cigarettes; but it suggested that there should be an the tax-inclusive retail-selling price of the most alternative minimum overall rate of ECU 35 per 1 000 popular price category and a minimum excise duty cigarettes, as in the case of other tobacco products. (speciic and ad valorem together) of EUR 70 per 1 000 B. 1997 cigarettes; In September 1997 Parliament reairmed that there should — a EUR 100 minimum speciic excise duty as an be no distortion of competition between diferent alcoholic alternative to the 57 % rule. Higher-taxing countries like beverages, and suggested guidelines for future action: Sweden, which have diiculties in complying with the — the current diferences in rates between wine, beer and 57 % rule, would have to apply either the minimum spirits should not be increased; excise incidence (speciic and ad valorem together) of 57 % of the tax-inclusive retail-selling price of the most — lower rates on small distillers’ and brewers’ products; popular price category, or a minimum excise duty — a full report on the wine market, including taxation, to (speciic and ad valorem together) of EUR 100 per 1 000 be produced by the Commission; cigarettes for the category most in demand; — new forms and mixtures of alcohol to be taxed; — a higher minimum excise duty on very cheap — an assessment of the positive and negative health and (imported) cigarettes. social efects of alcohol consumption. These proposals were rejected by the EP (see below), but in In the case of cigarettes and manufactured tobacco, February 2002 were adopted in a modiied form by the Parliament called in principle for an ‘upward harmonisation’ of Council (Directive 2002/10/EC). The EUR 100 per 1 000 rates, but also for further studies before any changes would be alternative threshold was reduced to EUR 95 and the made. In particular it asked the Commission to examine: EUR 70 additional threshold to EUR 60 per 1 000 from July 2002, rising to EUR 64 from July 2006. Spain and Greece — the ‘automatic trigger’ problem, which widened were given later deadlines. The new Member States also disparities in rates between Member States; enjoy transition periods until a inal deadline of 2010 (with — social costs, health risks, nicotine addiction and the exception of Malta and Cyprus that adopted the monopolistic practices; general regime). — the smuggling of tobacco products; Role of the European Parliament — the relationship between duty on cigarettes and that on hand-rolled tobacco; A. 1987 to 1992 — the efect on employment of higher levels of duty. Parliament’s Economic Afairs Committee examined the structure and rates of alcohol and tobacco excise in great C. 2002 detail, consulting widely with the various interests In 2002 Parliament rejected the Commission’s proposals for concerned. A three-day public hearing was held in April changes in tobacco excise rates (see above), one of the 1988. In the case of alcoholic beverages, draft reports main reasons being the projected impact on the considered various alternative approaches. Parliament’s enlargement countries, where rates are signiicantly below inal opinion on the draft directives proposed the following even the EU minimum rates which applied at the time. minimum rates of duty: ECU 559.25 per hl/alcohol for Parliament’s most recent report on EU tax policy was spirits; ECU 37.4 per hl for intermediate products; ECU 4.67 adopted in March 2002. It stated that Parliament ‘does not per hl. for wine and sparkling wine; ECU 0.374 per hl/ agree with the Commission’s policy with regard to duties degree plato for beer. on tobacco and alcoholic products, particularly with regard Parliament also called for the 1994 review to ix, for each to upwards harmonisation, through the constant raising of category, ‘a rate of excise duty proportional to the alcoholic minimum taxation levels’. strength’, with the inal objective of reaching two rates per unit of alcohol: one for beverages with less than 15 % g Arttu MAKIPAA alcohol content and another for those above. 09/2006
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4.17.4. Taxation of energy
Legal basis oils used as motor fuels or heating fuels, subject to certain Under Article 93 of the EC Treaty, the Council is required to exemptions, which were to be reviewed by no later than adopt measures for the harmonisation of ‘turnover taxes, the end of 1997. Council Decision 92/510/EEC authorised a excise duties and other forms of indirect taxation’ where number of derogations for exemption or reduced rates this is ‘necessary to ensure the establishment and applying to certain products in diferent Member States. functioning of the internal market’. The duties are speciic, i.e. calculated per 1 000 litres of the Article 175, introduced by the Maastricht Treaty, also allows product, or per 1 000 kg. For excise purposes, mineral oil the Community to take action, including that ‘of a iscal means leaded petrol, unleaded petrol, gas oil, heavy fuel oil, nature’, to pursue the objectives set out in Article 174: liquid petroleum gas (LPG), methane and kerosene. protection of the environment or of public health, and The Commission’s original proposals for excise duties on promotion of ‘prudent and rational utilisation of natural mineral oils, in the context of the single market programme resources’. (COM(87) 327), were for absolute harmonisation, based on average rates (for petrol and LPG the arithmetic average, for Objectives fuel oil a weighted average). Even in a revised proposal in June 1989 (COM(89) 260), the Commission argued that Even before Maastricht, however, other factors had played single rates or rate bands should be applied to mineral oils as important a part in determining the structure and levels because ‘the risks of competitive distortion [...] are greater in of duties on mineral oils as those provided for in Article 93. this area than for alcohol and tobacco’. Several aspects of transport policy are clearly relevant: in Nevertheless, as for alcohol and tobacco, only minimum particular, that of competition between diferent forms of rates were ixed by Directive 92/82/EEC. transport and the search for transparency in the charging of infrastructure costs. — Leaded petrol: ECU 337 per 1 000 litres. The control of pollution caused by the burning of mineral — Unleaded petrol: ECU 287 per 1 000 litres on the oils has always been a major element of environment understanding that ‘in every case the rate of duty shall policy. This was the determining factor in the laying down be below that charged on leaded petrol’. of diferent minimum levels of duty on leaded and — Gas oil: ECU 245 per 1 000 litres with reduced rates for unleaded petrol. heating oil. General energy policy has also played a part in ixing the — Heavy fuel oil (diesel): ECU 13 per 1 000 kg. levels of mineral oil duties: for example, the balances between various energy sources (coal, oil, gas, nuclear, etc.) — LPG and methane as a propellant: ECU 100 per 1 000 kg; and between indigenous and imported sources. other cases ECU 36 or ECU 0 per kg. Agricultural policy objectives have also been relevant, — Kerosene as a propellant: ECU 245 per 1 000 litres; notably in the proposal (COM(92) 36) for a special reduced otherwise ECU 18 per 1 000 litres, or ECU 0. rate of excise duty on motor fuels from agricultural sources Every two years, ‘and for the irst time not later than 31 (‘biofuels’). December 1994’, these rates were to be reviewed ‘on the Finally, within the context of Community policy on basis of a report and where appropriate a proposal from employment, a iscal strategy has been developed to the Commission’. The Commission’s report, however, was switch from the taxation of labour to other sources of not formally published until September 1995 revenue, including taxing the use of raw materials and (COM(95) 285). Though earlier drafts had proposed various energy. changes to the minimum rates, the inal report made no formal proposals.
Achievements B. The CO2/energy tax proposal A. Mineral oils The primary purpose of the Commission’s 1992 proposals for a Community-wide tax on carbon dioxide emissions The basic structure of mineral oil excise duties within the and energy was to stabilise CO emissions by 2000 at their Community was established by Directive 92/81/EEC. Every 2 1990 level. This in, turn, was seen as a key element in Member State is required to apply an excise duty to mineral
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01_2006_4661_txt_EN.indd 387 30-10-2007 14:55:39 worldwide policies to reduce emissions of greenhouse were outlined in a communication on ‘Environmental Taxes gases and halt global warming. A subsidiary objective was and Charges in the Single Market’ (COM(97) 9). general energy saving; and it was partly for this reason that C. The 1997 proposals the tax was conceived as being only 50 % on CO2 emissions, the other half being on energy content. The proposal was In 1997 the Commission published new proposals for also seen as part of an overall policy for iscal reform. Since ‘restructuring the Community Framework for the Taxation it was intended to be ‘iscally neutral’, the revenue raised of Energy Products’ (COM(97) 30). This sought to build on could be used to reduce other taxes — in particular, to shift the system for taxing mineral oils by extending it to all the general burden of taxation from ‘taxes on jobs’ energy products, and in particular to products directly or (especially non-wage labour costs) to taxes on the use of indirectly substitutable for mineral oils: coal, coke, lignite, resources. This has been described as the ‘double dividend’. bitumens and products derived from them; natural gas; and electricity. Following deadlock in the Council on the 1992 proposals — which were opposed both for technical reasons and for In the case of electricity, the tax would be on the electricity reasons of national iscal sovereignty — the Commission itself rather than the fuel inputs, although a rebate would published a revised version (COM(94) 127), providing for be possible where ‘environmentally preferable’ fuels were broad lexibility. The minimum rates set by the original used for generation. The legislation proposed minimum proposal became target rates, and exemptions for various excise duties. This proposal was debated in the EU’s Council industries were allowed. But the Council did not adopt the of Ministers and was extensively changed before being revised proposal either. Instead, individual Member States adopted as Directive 2003/96/EC of 27 October 2003. The have been pursuing their own solutions towards reducing minimum rate system for energy products is listed in the following tables: CO2 emissions. The environmental aspects of the situation
Energy products used as motor fuels Leaded petrol (euro per 1 000 l) 421 Gas oil (euro per 1 000 l) 302 Unleaded petrol (euro per 1 000 l) 359 LPG (euro per 1 000 kg) 125 Natural gas (euro per gigajoule) 2.6 Kerosene (euro per 1 000 l) 302
Energy products used as motor fuels for certain industrial and commercial purposes Gas oil (euro per 1 000 l) 21 Kerosene (euro per 1000 l) 21 LPG (euro per 1 000 kg) 41 Natural gas (euro per gigajoule) 0.3
Energy products used as heating fuels Heating gas oil (euro per 1 000 l) 21 Heavy fuel oil (euro per 1 000 kg) 15 Kerosene (euro per 1 000 l) 0 LPG (euro per 1 000 kg) 0 Natural gas (euro per gigajoule) 0.15 Electricity (euro per MWh) 0.5 Coal and coke (euro per gigajoule) 0.15
Energy products used as heating fuels (non-business use) Heating gas oil (euro per 1 000 l) 21 Heavy fuel oil (euro per 1 000 kg) 15 Kerosene (euro per 1 000 l) 0 LPG (euro per 1 000 kg) 0 Natural gas (euro per gigajoule) 0.3 Electricity (euro per MWh) 1 Coal and coke (euro per gigajoule) 0.3
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Directive 2004/74/EC amends the energy directive as — a harmonised rate for international commercial use: by regards the possibility for the Czech Republic, Estonia, 2010, the minimum rate of excise duty on Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and commercially-used diesel would be raised from the Slovenia to apply temporary exemptions or reductions in current EUR 245 per 1 000 litres to a higher, common the levels of taxation. Additionally, Directive 2004/75/EC ‘central’ rate; this would initially be set at EUR 350 in amends the energy directive as regards the possibility for 2003 and would be adjusted thereafter for inlation on Cyprus to apply temporary exemptions or reductions in the the basis of the consumer price index; levels of taxation. — the minimum rate applied to unleaded petrol on the Council Directive 2003/96/EC provides for a mandatory rest. exemption from the harmonised excise duty for energy The principal justiication for the proposals on products supplied for use as fuel for the purpose of air commercially-used diesel is to end the distortion of navigation other than in private pleasure-lying. However, it competition in the internal market for road haulage. introduced for the irst time provisions which allow Widely-difering rates of tax, the Commission argues, give Member States to tax aviation fuel for domestic lights and, hauliers based in low-tax countries but operating across by means of bilateral agreements, fuel used for intra- national borders an unfair competitive advantage. Linked Community lights. In such cases, Member States may to the distortion of competition is the issue of revenue loss apply a level of taxation below the minimum level set out by higher-taxed countries. The proposal is also justiied by in this directive. two further considerations: protection of the environment In 2000 the Commission also published a communication and fuel eiciency. It is argued that trucks make on the taxation of aircraft fuel (COM(2000) 110), which unnecessary detours on commercial journeys in order to outlined ive possible systems, ranging from taxing national refuel in low-tax countries, so increasing journey-lengths lights only to the taxation of all lights for all carriers to all and fuel consumption. destinations. The discussions show that it will be very The Council reached an outline agreement in early diicult, if not impossible, to reach an agreement on this February 2003 under which a minimum rate of EUR 302 per issue. During the discussions, which preceded the adoption 1 000 litres would apply from the date the directive came of Directive 2003/96/EC, all but two Member States agreed into efect, rising to EUR 330 in 2010. However, countries that as a matter of principle commercial aircraft fuel should needing to make tax increases would have up to seven be taxed on the same basis as any other fuel. However, the years to reach the EUR 302 rate, and until 2012 to reach the question of competition with third countries needs to be EUR 330 rate. taken into account and any distortion of competition has to be avoided. On 17 December 2003 the European Parliament (EP/ Parliament) rejected the proposal and asked the In the context of its drive to enhance development aid Commission to present a new proposal which would deal efectiveness, the Commission services put forward a with the matter in a way that was better coordinated with working paper on ‘New Sources of Financing for recently adopted directives on energy taxation. Development: A Review of Options’ (SEC(2005) 467). This paper also deals with tax instruments such as kerosene and E. The taxation of biofuels light departure tax and is expected to stimulate debate at Biofuels are any fuels deriving from organic and renewable European and national levels. resources, the most obvious example being the oldest — wood. In the context of energy taxation the main speciic D. Taxation of diesel fuels in question are: bioethanol, a form of ethanol On 24 July 2002 the European Commission presented new produced largely from the fermentation of agricultural proposals on the taxation of diesel, linked to that on products (e.g. sugar beet and cereals); biodiesel, produced unleaded petrol (COM(2002) 410). This has two aims: by reaction between plant oil and methanol; biogas — to harmonise, gradually, Member States’ excise duty on (methane), produced from biodegradable waste; and fuel used in international commercial haulage; etherised bioethanol, biomethanol and biodimethylether. — to align the minimum excise rates on diesel used non- A number of reasons can be advanced for encouraging the commercially — i.e. mostly in cars — with the rates on use of biofuels. They derive from renewable resources. They unleaded petrol. can be produced domestically, reducing dependence on In order to meet these twin aims, the proposal would imported oil. Combustion results in fewer emissions of create two levels of taxation on diesel: particulates and environmentally-damaging or toxic gases. They also provide the farming industry with alternative
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01_2006_4661_txt_EN.indd 389 30-10-2007 14:55:39 commercial crops at a time when there is pressure to petrol — and for a much higher minimum rate for heavy reduce aid for food production. On the other hand, biofuels fuel oil (diesel): between ECU 245 and ECU 270. cannot compete on price with established fuels. The EP adopted its opinion on the Commission’s 1997 In November 2001 the European Commission proposed a proposals in April 1999. The main amendments sought to: set of measures to promote the use of biofuels — abolish the list of systematic exemptions but expand (COM(2001) 547), including the possibility of applying a the list of optional exemptions; reduced rate of excise duty. The overall aim is to achieve a minimum biofuel share of fuel consumption: 2 % by 2005 — index the minimum tax rates to inlation; and and 5.75 % by 2010. On 20 June 2002 the Council reached — establish a procedure allowing Member States to refund a political agreement on the proposal. The directive was the tax, in whole or in part, where irms could adopted in a co-decision procedure and published in the demonstrate that it was leading to a competitive Oicial Journal on 8 May 2003. handicap. F. VAT on other fuels On the taxation of diesel proposals, Parliament has raised Among other recent tax proposals in the energy ield has certain questions concerning the practicality of operating been that of December 2002 on VAT applying to natural two rates of tax, and on the need for full harmonisation gas and electricity (COM(2002) 688). Currently, the place of rather than only minimum rates. taxation is the place of supply, but this is becoming In its resolution of April 2002 on EU tax policy in general, increasingly diicult to determine as cross-border trading Parliament argued that ‘the ‘polluter pays’ principle needs to in energy increases. The proposal would make the place be applied more widely, particularly in the energy products where the buyer was established the place of taxation for sector’, and that ‘it should be implemented not only businesses. For inal consumers, it would be the place of through taxation but also through regulation’. consumption. Parliament gave a favourable opinion on the biofuel proposals in October 2002 and adopted amendments Role of the European Parliament designed to strengthen them. Parliament’s initial opinion on mineral oil excise duties was adopted in June 1991. It called both for target rates to be g Arttu MAKIPAA set for petrol — ECU 445 by the year 2000 for unleaded 09/2006
4.17.5. Personal and company taxation
Legal basis to ‘distinguish between taxpayers who are not in the same There is no explicit provision in the EC Treaty for the situation with regard to their place of residence or with harmonisation of direct taxes. Action in this ield has regard to the place where their capital is invested’. therefore had to be based on more general objectives. However, on 14 February 1995 the Court ruled (Case C- 279/93) that Article 39 is directly applicable in the ield of Legislation on the taxation of companies has usually been tax and social security. This article provides that freedom of based on Article 94, which authorises ‘directives for the movement for workers ‘shall entail the abolition of any approximation of such laws, regulations or administrative discrimination based on nationality between workers of provisions of Member States as directly afect the the Member States as regards employment, remuneration establishment or functioning of the common market’. As in and other conditions of work and employment’. Article 293 the case of Article 93 — and in contrast to Article 95 under requires Member States to ‘enter into negotiations’ for the which most single market legislation was adopted — abolition of double taxation within the Community and unanimity and the consultation procedure apply. Article 294 forbids discrimination between the nationals of Article 58, introduced by the Maastricht Treaty, qualiies Member States ‘as regards participation in the capital of the free movement of capital by allowing Member States companies’.
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Most of the arrangements in the ield of direct taxation, At the beginning of the following year, the Commission however, still lie outside the framework of Community law. also published a proposal covering a common system of An extensive network of bilateral tax treaties — involving taxation applicable to interest and royalty payments made both Member States and third countries — covers the between parent companies and subsidiaries in diferent taxation of cross-border income lows. Member States (COM(90) 571). Despite being revised two years later (COM(93) 196) and receiving a favourable Objectives opinion from the European Parliament (Parliament), it was withdrawn as a result of failure to agree in Council. A new Two speciic objectives are the prevention of tax evasion (e. version appeared in 1998 (COM(1998) 67) as part of the g. the proposed withholding tax on interest) and the ‘Monti package’ ("4.17.1.), which also included the code of elimination of double taxation (e.g. agreements on conduct and the proposal on the taxation of savings dividend payments to non-residents). income (see below). More generally, some harmonisation of business taxation Meanwhile, the Ruding Committee of independent (both corporation tax and the personal taxation of experts, established in 1991, reported in March 1999 dividends) is considered necessary to prevent distortions of (Report of the Committee of Independent Experts on competition, particularly of investment decisions. Company Taxation) recommending a programme of Harmonisation might also be justiied to prevent the action to eliminate double taxation; harmonise undermining of revenues through tax competition ("4.17.1.) corporation tax rates within a 30–40 % band; and ensure and to reduce the scope for manipulative accounting (e.g. full transparency of the various tax breaks given by via transfer pricing). Member States to promote investment. The Commission published its reactions in June 1992 (SEC(92) 1118). While Achievements not agreeing with all of Ruding — notably on rates of A. Company taxation corporation tax — it accepted the need for priority action Proposals for the harmonisation of corporation tax have on double taxation. In the following year it proposed been debated within the European Community for over 30 amendments to enlarge the scope of the directives on years. The Neumark Report of 1962 and the van den Tempel mergers and parent/subsidiaries (COM(93) 293); and drew Report of 1970 both advocated harmonisation, though on attention to two draft directives that had already been diferent systems. In 1975 the Commission published a tabled: that on the carry-over of losses (COM(84) 404) and draft directive proposing the introduction in all Member on losses of subsidiaries situated in other Member States States of yet another system, with an alignment of rates (COM(90) 595). between 45 % and 55 %. This proved unacceptable; and by In 1996, the Commission launched a new approach to 1980 the Commission was arguing that, though a common taxation ("4.17.1.). In the ield of company tax the main system might be desirable on competition grounds, ‘any result was the Code of Conduct for Business Taxation, attempt to resolve the problem by way of harmonisation adopted as a Council resolution in January 1998. The would probably be doomed to failure’ (‘Report on the Council also established a Code of Conduct Group (known Scope for Convergence of Tax Systems’ (COM(80) 139)). as the ‘Primarolo Group’ after its president) to examine Instead, the Commission decided to concentrate on more notiied cases of unfair business taxation. Its main report limited measures essential for completing the single was presented in November 1999, identifying 66 tax market. The ‘Guidelines for Company Taxation’ of 1990 practices to be abolished within ive years. (SEC(90) 601) gave priority to three already-published Meanwhile, at the end of 1998, the Commission was asked proposals, which were adopted later that year: by Member State governments to prepare ‘an analytical — the Mergers directive (90/434/EEC), on the treatment of study of company taxation in the European Community’. It capital gains arising when companies merge; accordingly established two panels of experts, one academic and one from the business community and trade — the Parent Companies and Subsidiaries directive unions. The study was published in October 2001 (90/435/EEC), eliminating double taxation of dividends (‘Company Taxation in the Internal Market’, SEC(2001) 1681). paid by a subsidiary in one Member State to a parent There followed a Commission communication company in another; and ‘supplementing and building’ on the study entitled — the Arbitration Procedure Convention (90/436/EEC), ‘Towards an Internal Market without tax obstacles: a which introduced procedures for settling disputes strategy for providing companies with a consolidated concerning the proits of associated companies in corporate tax base for their EU-wide activities’, diferent Member States. COM(2001) 582).
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01_2006_4661_txt_EN.indd 391 30-10-2007 14:55:40 The main problem faced by companies, the documents relatives in another, has been a source of problems. Bilateral observed, was that they were ‘confronted with a single agreements avoid double taxation in general, but fail to economic zone in which 15 diferent company tax systems cover such questions as applying various forms of tax relief apply’. The Commission proposed several approaches for available in the country of residence to income in the providing companies with a consolidated tax base for their country of employment. In order to ensure equal treatment EU-wide activities: between residents and non-residents, the Commission — home state taxation (HST), proposed under Article 94 (ex-Article 100) a directive on the harmonisation of income tax provisions with respect to — an optional common consolidated tax base (CCTB), freedom of movement (COM(79) 737). This would have — a European company tax, applied the general principle of taxation in the country of residence, but was not adopted by the Council and was — a compulsory, fully harmonised tax base. withdrawn in 1993. Instead the Commission issued a In order to discuss these proposals, the Commission recommendation under Article 211 (ex-Article 155) organised a conference on 29 April 2002, which agreed covering the principles that should apply to the tax that companies operating in more than one country treatment of non-residents’ income. should be taxed on the basis of a consolidated tax base. For Meanwhile, the Commission brought infringement smaller companies (SMEs), the preference was for HST; for proceedings against some Member States for larger companies, CCTB. discrimination against non-national employees. The Court A CCTB Working Group has been established and began its of Justice ruled in 1993 (Case C-112/91) that a country work in November 2004. In the working group experts from could tax its own nationals more heavily if they resided in all 25 Member States and the Commission participate and another Member State. The Court found, however, that a contributions are made in a technical capacity. country cannot treat a non-resident national of another Member State less favourably than its own nationals (see B. The taxation of SMEs above: Case C-279/93). In general, the integration in the In May 1994 the Commission published a ‘communication ield of personal direct taxation can be said to evolve on the Improvement of the Fiscal Environment of Small and through ECJ rulings rather than ordinary decision-making Medium-Sized Enterprises’ (COM(94) 206). Compared with procedure of the institutions. larger irms, SMEs faced three main problems: attracting suicient inancial resources; coping with administrative 2. Taxation of bank and other interest paid complexity; and continuity when the business changed to non-residents ownership. Although there was no intention to ‘harmonise In principle, a taxpayer is required to declare such income. to any extent the purely national tax treatment of small and In practice, ‘the free movement of capital [...] together with medium-sized enterprises’, action might be needed on the existence of bank secrecy [...] will increase the potential cross-border aspects. Annexed to the communication was for tax evasion by individuals.’ (Ruding Report). Some a irst initiative on self-inancing (94/390/EC). It invited Member States impose a withholding tax on interest Member States to act on two matters concerning sole income; but when in 1989 Germany introduced such a tax proprietorships and partnerships: ‘to correct the deterrent at the modest rate of 10 %, there was massive movement efects of the progressive income tax payable [...] in respect of funds into Luxembourg, and the German tax had of reinvested proits’ — for example, by allowing an option temporarily to be abolished. for corporation tax — and ‘to eliminate the tax obstacles to That same year the Commission published a draft changes in the legal form of enterprises, in particular [...] directive for a common system of withholding tax on incorporation’. Since 2001, and most recently in 2005, the interest income (COM(89) 60), levied at the rate of 15 %. Commission has presented the ‘Home State Taxation’ Some Member States opposed this on the grounds that it scheme (COM(2005) 702) as a possible solution for SMEs. would lead to a light of capital from the Community. The Essentially, the scheme foresees that SMEs would be proposal was eventually withdrawn, and a new one, to allowed to compute their proits according to their ensure a minimum of efective taxation of savings income (familiar) home state rules of the parent company or the in the form of interest payments within the Community head oice when doing business in another Member State. (COM(1998) 295), was presented. The rate proposed was C. Personal direct taxation 20 %, but there was to be an alternative system of providing information on payments to the tax authorities 1. Income tax of the saver’s home state. The European Council meeting The taxation of those who work in or draw a pension from in Helsinki in December 1999 reached an agreement to one Member State, but live and/or have dependent
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continue discussions on the draft directive, based on the the following three years and 35 % thereafter; 75 % of principle that ‘all citizens resident in a Member State of this revenue is to be transferred to the Member State of the European Union should pay the tax due on all their residence of the saver concerned; savings income’. The UK Treasury then published a paper — the transitional period will end if and when the EC (Exchange of Information and the Draft directive on Taxation enters into agreement with Switzerland, Liechtenstein, of Savings, February 2000) which argued that only the full San Marino, Monaco and Andorra to exchange exchange of information between tax authorities could information upon request and these countries continue achieve this. simultaneously to apply the withholding tax, and if and After lengthy negotiations, a compromise was agreed at when the Council agrees by unanimity that the US is the Santa Maria de Feira European Council on 20 June committed to exchange of information. 2000: On 2 June 2004 the Council adopted a decision on the — the exchange of information model would be the agreement between the EC and Switzerland providing for ultimate objective, to be introduced within seven years measures equivalent to those in the directive. The of the adoption of the directive; agreement was signed on 26 October 2004. Its key — meanwhile, Austria and Luxembourg — which maintain elements also form the basis for agreements with Andorra, banking secrecy for non-residents — and possibly other Liechtenstein, Monaco and San Marino: Member States would introduce a withholding tax on — during the transitional period a withholding tax with interest paid to non-residents, at a rate to be decided. revenue sharing will be applied at the same rates as by An ‘appropriate share of their revenue’ would be Austria, Belgium and Luxembourg; transferred to the investor’s state of residence; — the individual concerned can opt to permit the — introduction of the legislation would, however, be disclosure of his or her income as an alternative to the conditional on agreement being reached on equivalent withholding tax being applied; measures with key third countries (notably Switzerland) — exchange of information can be requested in cases of and with the US. A decision, by unanimity, would be fraud and similar behaviour; taken on the matter by the end of 2002. — the workings of the agreements can be reviewed over On 3 June 2003, the Council adopted the directive on time in line with international developments. taxation of savings income in the form of interest payments. It entered into force on 1 July 2005, and contains the following provisions: Role of the European Parliament On tax proposals, Parliament’s role is conined to the one- — all Member States will ultimately exchange information reading consultation procedure. Its resolutions and on interest payments to individuals resident for tax amendments have broadly supported all Commission purposes in another Member State. All Member States proposals in the ields of both company and personal except Austria, Belgium and Luxembourg will direct taxation — including all elements of the ‘Monti immediately introduce a system of information Package’ — while advocating a widening of their scope. It reporting; gave its opinion on the Ruding Report, and the — Austria, Belgium and Luxembourg are entitled to receive Commission’s reaction to it, in a report adopted in April information from other Member States and will 1994. In giving general approval to the Commission’s introduce a system of information reporting at the end approach on SMEs on 24 October 1994, Parliament called of a transitional period during which they will levy a for a plan of action in a form that could form part of an withholding tax of 15 % for the irst three years, 20 % for integrated programme for SMEs.
2004–06 2007–09 2010+ Following agreement with Switzerland, the US, etc. Austria, Belgium & Austria, Belgium & Austria, Belgium & Vote by unanimity on whether to adopt Luxembourg: 15 % Luxembourg: 20 % Luxembourg: 35 % automatic information exchange, depending withholding tax. Others: withholding tax. withholding tax. upon Switzerland, Liechtenstein, San Marino, automatic information Others: automatic Others: automatic Monaco and Andorra adopting and US exchange. information exchange. information exchange. ‘committed to’, information exchange ‘upon request as deined in the OECD agreement’.
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01_2006_4661_txt_EN.indd 393 30-10-2007 14:55:40 Parliament gave its initial views on the Commission’s Most recently, Parliament adopted a resolution on proposals in the ield of corporate taxation in its resolution corporate tax on December 13 2005. In this resolution, of March 2002 ("4.17.2.). Of the alternatives under Parliament welcomes and reiterates its support for the consideration, Parliament was ‘interested in the idea of Commission proposals with regard to the common home state taxation, perhaps as an intermediate stage in consolidated tax base and home state taxation for SMEs. moving towards a common tax base’, understood as ‘new harmonised EU rules, existing in parallel to national rules, g Arttu MAKIPAA available to European companies as an optional scheme’. 09/2006
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By the end of 1977, only half of the nine Member States Greece, which became a member of the Community in (Germany, Belgium, the Netherlands, Luxembourg and 1981, did not join the exchange-rate mechanism. Denmark) remained within the mechanism, the others Spain and Portugal became Member States of the having decided to allow their currencies to loat freely. The Community in 1986; Spain joined the exchange-rate Werner Plan was abandoned the same year. mechanism in 1989 and Portugal in 1992, with a luctuation C. Third Period (1979–87): the successful resumption margin of 6 %. of the integration process; the EMS (b) The 1992–93 crisis Instigated by the German Chancellor Helmut Schmidt and The EMS was seriously disrupted by the violent upheaval in the French President Valéry Giscard d’Estaing, the Brussels the European exchange markets in September and Summit of December 1978 decided to set up a European October 1992, following the diiculties in ratifying the Monetary System (EMS), which aimed to create a zone of Maastricht Treaty in Denmark and France. The pound monetary stability in Europe by reducing luctuations sterling and the lira had to leave the exchange rate between the currencies of the participating countries. The mechanism in September 1992 and in November that year EMS came into operation on 13 March 1979. the peseta and the escudo devalued by 6 % compared 1. Mechanisms of the European Monetary System with the other currencies. In January 1993, the Irish pound The EMS established a system of ixed but adjustable rates was devalued by 10 %; in May, the peseta and the escudo of exchange between the currencies of the participating were further devalued. In the face of a further wave of countries. speculation, the luctuation margins were raised to 15 % (1 August 1993). (a) The ECU (European Currency Unit) (c) Assessment of the EMS A central element of the system, this was a basket of European currencies in which the weight of each The main aim of the EMS, to establish an internal and depended on the country’s share of Community GDP and external area of currency stability, was achieved. The intra-Community trade. It was an accounting currency used characteristic instability of the international monetary as a payment instrument between the central banks and to system in the 1980s was averted in the participating specify the Community budget and was not legal tender. countries. After eforts lasting over 20 years, stability prevailed. (b) Exchange-rate mechanism Monetary discipline led to economic convergence, with a Each currency was allocated a central rate in ECUs and the reduction of inlation rates and an approximation of central rates together determined the rates of exchange interest rates. between the currencies (bilateral exchange rates). Private use of the ECU (by contrast with its oicial use, i.e. (c) Fluctuation margins between central banks belonging to the EMS) developed These were permitted around the bilateral rates: 2.25 % considerably. It was used increasingly in the launch of initially (and 6 % for the Italian lira). international bond issues by the Community institutions, (d) ‘Divergence indicators’ Member States and irms. Having become a prime If a currency came within 25 % of its maximum luctuation international inancial instrument, it replaced most of the margin, it was deemed to be ‘divergent’ and the authorities currencies comprising it on the capital markets. In these concerned were then required to take certain measures: various ways, the EMS and the ECU thus provided a strong raising interest rates, tightening up budgetary policy, basis for the introduction of the single currency. supporting the exchange rate if it fell and the reverse if it rose. D. Fourth period (1988–92): progress (e) Amendment of parity towards Economic and Monetary Union Parities were not ixed permanently. They could be The establishment of the internal market led the amended if a particular currency diverged structurally from Community to revive the objective of monetary union. The the luctuation margins. However, such amendments, Hannover European Council (June 1988) pointed out that which entailed altering the central rates, were to be made ‘in adopting the Single Act (which came into force on 1 July according to a common procedure. 1987), the Member States of the Community conirmed the 2. Development of the EMS: the 1980s objective of progressive realisation of economic and (a) Admission of new members monetary union (EMU)’. It entrusted to a committee chaired by the Commission President, Jacques Delors, ‘the task of When the EMS was set up, all the Community’s Member studying and proposing concrete stages leading towards States, with the exception of the United Kingdom, joined this union’. the exchange-rate mechanism.
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In April 1989 the report of the Delors Committee envisaged (b) Financial and monetary discipline the achievement of EMU in three stages: stepping up In this stage, Member States were to: cooperation between central banks; the establishment of a — render their central banks independent of the political European System of Central Banks (ESCB); progressive authorities (Article 116(5) of the ECT); transfer of decision-making power for monetary policy to supranational institutions; irrevocable ixing of parities — discontinue their overdraft facilities with their central between the national currencies and introduction of the banks and their privileged access to inancial institutions single European currency. (Articles 101, 102, 103 of the ECT); The Madrid European Council of June 1989 adopted the — endeavour to fulil the following ive convergence Delors Plan as a basis for its work and decided to criteria: implement the irst of these stages from 1 July 1990, when — an inlation rate not exceeding by more than 1.5 % capital movements and inancial services would be fully the average of the three best performing countries liberalised. in the year preceding the third stage; In December 1989 the Strasbourg European Council had to — a budget deicit not exceeding 3 % of GDP, or at the take account of a new situation, the prospect of German very least close to that level, provided that it has reuniication. It was decided to convene an declined continuously; intergovernmental conference (IGC) to prepare the — government debt not exceeding 60 % of GDP, or at amendments to the Rome Treaty in view of EMU. the very least approximating to that level owing to a Approved by the European Council of December 1991, sharply diminishing trend; the amendments proposed by the intergovernmental — a long-term interest rate that does not exceed by conference were incorporated into the Treaty on more than 2 % the average of the three best European Union signed in Maastricht on 7 February 1992. performing countries in terms of price stability; The Treaty’s EMU project was based on the general — maintenance of national currency within the outlines of the Delors Plan but difered from it on some normal luctuation margins of the European signiicant points. In particular, the second stage did not Monetary System and no devaluation for at least begin until 1 January 1994 and did not include the two years. transfer of responsibilities for monetary policy to a supranational body but simply the strengthening of (c) The decision to move on to the third stage cooperation between central banks, replacing the former Article 121 provided that the Council would set the date for Committee of Governors with the European Monetary passage to the third stage, with a minimum date and cut- Institute ("5.2.0.), which would be responsible, with the of date. Commission, for the technical preparation of EMU. The Madrid European Council (15 and 16 December 1995) Establishment of the ESCB was deferred to the third decided that the third stage would begin on 1 January stage. 1999. It gave the single currency a name, the euro, and, E. Fifth period: stages in Economic and Monetary after consultation with the Commission and the EMI, Union (1990–2002) adopted the scenario for its introduction. 1. First stage (1 July 1990–31 December 1993) The Brussels European Council (2 May 1998), acting on This consisted of: the recommendation of the Commission and the Council for Economic and Financial Affairs (ECOFIN) and — completion of the internal market, achieved on on the opinion of the European Parliament (EP/ 31 December, entailing in particular the full Parliament), decided that 11 countries — Germany, liberalisation of capital; Belgium, Spain, France, Ireland, Italy, Luxembourg, — strengthening of economic coordination, through Austria, Netherlands, Portugal and Finland — would greater convergence on price stability and public proceed to the next stage. inance reform. 3. Third stage (1 January 1999–1 July 2002) 2. Second stage (1 January 1994–31 December 1998) On 1 January 1999, EMU started with those 11 countries. (a) The European Monetary Institute (EMI) Greece joined them on 1 January 2001. Set up on 1 January 1994 ("5.2.0.), this was the precursor to (a) The European System of Central Banks (ECBS) and the future European Central Bank and was to prepare for European Central Bank (ECB) came into operation on 1 the third stage of EMU. January 1999 ("5.2.0.)
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01_2006_4661_txt_EN.indd 399 30-10-2007 14:55:41 (b) The process of introducing the euro when the third stage of EMU started. Unlike the EMS, in On 1 January 1999, the euro became the sole oicial which all the currencies established central parities between currency of the participating Member States. them (central rates) and luctuation margins around them, the parities and margins for the new exchange mechanism — the parities of the participating currencies and their rate are now set solely in relation to the euro. Participation in the for conversion into euro were irrevocably ixed. mechanism is optional. However, the Member States that — the euro became a currency in its own right and the joined the EU on 1 May 2004 will have to join EMS II as their ECU basket ceased to exist. preparations for adopting the euro advance. On 27 June — monetary policy and exchange-rate policy is carried out 2004 the Estonian kroon, the Lithuanian lita and the in euro and the participating Member States issue their Slovenian tolar joined. The Slovenian tolar will cease to new public-sector debt instruments in euro. participate in EMS II once Slovenia joins the euro zone on 1 January 2007. On 2 May 2005 three other Member-State Between 1 January 1999 and 1 January 2002, the ESCB and currencies joined ERM II: those of Cyprus, Latvia and Malta. the national and Community public authorities were to On 25 November 2005 the Slovak koruna joined the monitor the process of changeover to the single currency, mechanism. Furthermore, the Danish krone is also particularly in the inancial and banking sector, and in all participating in EMS II with a luctuation margin of 2.25 % on sectors of the economy. either side of its central rate in relation to the euro. On 1 January 2002, banknotes and coins in euro began to circulate alongside national currency banknotes and coins. Country Central rate Fluctuation band The period of dual currency circulation lasted for two (national currency) (for EUR 1) months, after which only euro banknotes and coins were Cyprus (pound) 0.585274 +/- 15 % legal tender. Denmark (krone) 7.46038 +/- 2.25 % (c) Coordination of economic policies Estonia (kroon) 15.6466 +/- 15 % From the beginning of the third stage, Member States must Latvia (lat) 0.702804 +/- 15 % regard their economic policies as a matter of common concern (Articles 99 and 104 of the ECT). In order to Lithuania (lita) 3.45280 +/- 15 % achieve this, the Treaty provides for the adoption by the Malta (lira) 0.429300 +/- 15 % Council of broad economic policy guidelines (BEPGs) Slovakia (koruna) 38.4550 +/- 15 % applicable to all the Member States and a mechanism for monitoring excessive public deicits ("5.4.0.). Slovenia (tolar) 239.640 +/- 15 %
(d) The Stability and Growth Pact F. Enlargement: prospects for the new Member States Adopted by the Amsterdam European Council on 16 and ("6.3.1.) 17 June 1997 ("5.5.0.), its purpose is to ensure budgetary New Member States have no opt-out clause. In order to discipline by maintaining the obligation to conform to the join the euro area they have to participate in the European deicit and indebtedness criteria laid down for initial access exchange rate mechanism (EMS II) for a minimum of two to the monetary union. On 20 March 2005, the Council years and they must fulil the convergence criteria. adopted a report entitled ‘Improving the implementation of the Stability and Growth Pact’. The report was endorsed In the irst half of 2006 Slovenia and Lithuania requested by the European Council in its conclusions of 22 March that the Commission and the ECB report to the Council on 2005, which stated that the report updates and the progress made by their countries in the fulilment of complements the Stability and Growth Pact, of which it is the convergence criteria with a view to joining the euro now an integral part. On 27 June 2005 the pact was area on 1 January 2007. The Commission and the ECB complemented by two additional regulations amending subsequently gave a positive assessment for Slovenia but the Regulations (EC) Nos 1466/97 and 1467/97. rejected Lithuania’s bid to enter the euro area. Slovenia will become the 13th Member State of the euro area on 1 (e) EMS II January 2007. The European Council in Amsterdam also laid down the basic principles and operational characteristics for a new Role of the European Parliament exchange-rate mechanism to regulate the relationship between the single currency and the currencies of the The EP is consulted on the following issues: European Union Member States that are not members of the — agreements on exchange rates between the euro and monetary union. ‘EMS II’ was introduced on 1 January 1999, non-EU currencies;
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— choice of countries eligible to join the single currency in close to 2 %’, adopted on 8 May 2003, as a signal of the 1999 and subsequently; ECB’s policy to guarantee monetary stability without — appointment of the President, Vice-President and other accepting delationary pressures. Parliament also calls for members of the ECB Executive Board; closer involvement in the nomination and appointment of ECB Board Members. — legislation implementing the excessive deicit procedure provided for in the Stability and Growth Pact. g Christine BAHR In its resolution on the 2003 annual report, the EP 09/2006 welcomed the ECB’s choice of an inlation rate ‘below, but
5.2. The institutions of Economic and Monetary Union
Legal basis that the new currency is largely invulnerable to — Articles 105–124 of the EC Treaty (ECT); international speculation; — enabling the euro to become a major reserve and — Protocols annexed to the Treaty on European Union payment currency. (Maastricht Treaty): — on the European Monetary Institute (Articles 1–23); Achievements — on the statutes of the European Monetary Institute, No monetary institution was established during the irst the European System of Central Banks and the stage of Economic and Monetary Union (EMU) (1 July European Central Bank (Articles 1–53); 1990–31 December 1993). — Declaration on Article 10(6) of the Statute of the European System of Central Banks and of the European A. The institutions of the second stage of EMU Central Bank (Statute), annexed to the Treaty of Nice. (1 January 1994–31 December 1998) 1. The European Monetary Institute (EMI) Objectives (a) Role The EMI was established at the beginning of the second The main objectives of the institutions of economic and stage of EMU, pursuant to Article 117 of the Treaty, and took monetary union are: over the tasks of the Committee of Governors and the — to inalise the completion of the internal market by European Monetary Cooperation Fund (EMCF). It had no say removing the uncertainty and the costs inherent in in the conduct of monetary policy, which remained the exchange transactions, as well as the costs of hedging prerogative of the national authorities. Among its main tasks against currency luctuation risks; for the implementation of the second stage of EMU were: — to ensure full comparability of costs and prices — to strengthen cooperation between the national central throughout the Union, which should help consumers, banks; stimulate intra-Community trade and facilitate business; — to strengthen coordination of the monetary policies of — to reinforce Europe’s monetary stability and inancial the Member States with a view to ensuring price power by: stability; — ending, by deinition, any possibility of speculation — to monitor the functioning of the European Monetary between the Community currencies; System; — ensuring, through the economic and inancial — to facilitate the use of the European Currency Unit (ECU) dimension of the monetary union thus established, and oversee its development;
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01_2006_4661_txt_EN.indd 401 30-10-2007 14:55:42 — to ascertain the state of compliance by the Member It was dissolved at the start of the third stage and replaced States with the convergence criteria for access to EMU by the Economic and Financial Committee. and to report thereon to the Council. B. The institutions of the third stage (beginning For the preparation of the third stage of EMU it was on 1 January 1999) required to: 1. The European Central Bank (ECB) — prepare the instruments and the procedures necessary (a) Organisation for carrying out a single monetary policy; Established on 1 June 1998, the ECB is a European — promote the eiciency of cross-border payments; institution with legal personality (Article 107(2) ECT and Article 9 of the ECB Statute) based in Frankfurt. It is run by — promote the harmonisation of the rules and practices three bodies that enjoy independence from Community governing statistics; institutions and national authorities. — specify the regulatory, organisational and logistical (i) The Governing Council framework necessary for the European System of Central banks (ESCB) to perform its tasks. Comprises the members of the Executive Board and the governors of the national central banks of those countries (b) Institutional status that have adopted the euro (Article 112(1) ECT and Article The EMI, which had a legal personality, was run and 10.1 of the Statute). managed by a Council, which: As the supreme decision-making body it adopts the — consisted of a president and the governors of the guidelines and takes the decisions necessary to ensure the national central banks; performance of the tasks entrusted to the ESCB, formulates — was independent of, and could not take instructions the monetary policy of the Community including, as from, Community institutions or bodies or governments appropriate, decisions relating to intermediate monetary of Member States (Article 8 of the Statute). objectives, key interest rates and the supply of reserves in Its president was appointed by common accord of the the ESCB, and establishes the necessary guidelines for their governments of the Member States at the level of Heads of implementation (Article 12 of the Statute). State or Government, on a recommendation from the Council (ii) The Executive Board of the EMI, and after consulting the European Parliament (EP/ Comprises a President, Vice-President and four other Parliament) and the Council (Article 117 of the ECT). members, all appointed by common accord of the Heads In accordance with Article 123(2) of the ECT, the EMI was of State or Government of the euro area Member States for dissolved on the establishment of the ECB, for which it had a non-renewable period of eight years (Article 112(2) ECT). paved the way (1 June 1998). It is entrusted with implementing monetary policy and in 2. The Monetary Committee doing so gives the necessary instructions to national This consisted of members appointed in equal number by central banks. It is also responsible for the preparation of the Commission and by the Member States. meetings of the Governing Council and for the current business of the ECB (Articles 11 and 12 of the Statute). Set up to promote coordination of the policies of Member States to the full extent needed for the functioning of the (iii) The General Council (Article 45(1) of the Statute) internal market (Article 114 ECT), it had an advisory role. Consists of the President and Vice-President of the ECB and It had the following tasks: the Governors of the Central Banks of all EU Member States, regardless of whether they have adopted the euro. — to keep under review the monetary and inancial situation of the Member States and of the Community It contributes to the collection of statistical information, and the general payments system of the Member States coordinates the monetary policies of those Member States and to report regularly thereon to the Council and to that have not adopted the euro and oversees the the Commission; functioning of the European exchange-rate mechanism (ERM2) ("5.1.0.) — to deliver opinions to the Council or Commission, to contribute to the preparation of the work of the (iv) The ECB’s capital Council, and to examine, at least once a year, the Amounts to EUR 5 565 million, of which EUR 4 089 million situation regarding the movement of capital and the was fully paid up. The national central banks are the sole freedom of payments and report to the Commission subscribers to and holders of the capital (Article 28 of the and to the Council thereon. Statute). The key for capital subscription is established
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according to a weighting that is revised every ive years to — deining and implementing the monetary policy of the relect each Member State’s proportion of the Community’s Community; population and GDP (Article 29 of the Statute). — conducting foreign-exchange operations consistent (b) Role with the provisions of Article 111 ECT; Only the ECB may authorise the issue of banknotes within — holding and managing the oicial foreign reserves of the Community. The ECB itself or the national central banks the Member States; may issue such notes. Member States may issue coins subject to approval by the ECB of the volume of the issue — promoting the smooth operation of payment systems; (Article 106 ECT). — contributing to the smooth conduct of policies pursued The ECB takes decisions necessary for carrying out the tasks by the competent authorities relating to the prudential entrusted to the ESCB under the latter’s Statute and under supervision of credit institutions and the stability of the the Treaty (Article 110 ECT). inancial system. Assisted by the national central banks, it collects the 3. The Economic and Financial Committee necessary statistical information either from the national Comprising not more than six members, a third of whom authorities responsible or directly from economic agents are appointed by the Member States, a third by the (Article 5 of the Statute). Commission and a third by the ECB, its duties are the same as those of the Monetary Committee, which it succeeded It is consulted on any proposed Community act in its ields on 1 January 1999, with one important diference: notifying of competence and, at the request of national authorities, the Commission and Council of developments in the on any draft legislative provision (Article 105 ECT). monetary situation is now the responsibility of the ECB. It may perform speciic tasks concerning policies relating to 4. The Eurogroup the prudential supervision of credit institutions and other Originally called Euro-11, the meeting of ministers of inancial institutions (Article 25(2) of the Statute). However, economics and inance of the euro area changed its name the authorities in the Member States continue to oversee to ‘Eurogroup’ in 1997. This advisory and informal body the banking system, as they did before the advent of the meets regularly to discuss all the issues connected with the euro. smooth running of the euro area and EMU. The It is responsible for the smooth running of Target (Trans- Commission and, where necessary, the ECB are invited to European automated real-time gross settlement express attend these meetings. At the informal Ecoin meeting in transfer system), a payment system in euro that links up the Scheveningen on 10 September 2004, the Prime Minister 15 national payment systems and the ECB payment and Minister of Finance of Luxembourg, Jean-Claude mechanism. Juncker, was elected President of the Eurogroup. He thus The ECB is making the arrangements to integrate the became the Eurogroup’s irst elected and permanent central banks of the new Member States into the ESCB. president for a mandate that started on 1 January 2005 and ends on 31 December 2006. In September 2006 his 2. The European System of Central Banks (ESCB) mandate was renewed for a further two years. (a) Organisation 5. The Economic and Financial Afairs Council (Ecoin) The ESCB consists of the ECB and the national central banks of all EU Member States (Article 107(1) ECT and Article 1(2) Ecoin brings together the inance ministers of all EU of the Statute). It is governed by the same decision-making Member States and is the decision-making body at European bodies as those of the ECB (Article 107(2), ECT). level. Having consulted the ECB, it takes decisions regarding the exchange-rate policy of the euro vis-à-vis non-EU The Eurosystem comprises only the ECB and the national currencies, whilst adhering to the objective of price stability. central banks of the Member States in the euro area. (b) Role Role of the European Parliament The ESCB’s fundamental task lies in maintaining price A. Legislative role stability (Article 105 ECT). Without prejudice to this objective, the ESCB supports the general economic policies 1. The EP is consulted on the following issues: contributing to the achievement of the objectives of the — arrangements for Member States’ introduction of euro Community. It discharges this task by carrying out the coins (euro banknotes are the responsibility of the ECB); following functions (Article 105(2) ECT and Article 3 of the — agreements on exchange rates between the euro and Statute): non-EU currencies;
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01_2006_4661_txt_EN.indd 403 30-10-2007 14:55:42 — choice of countries eligible to join the single currency in The President of the ECB must then present this report to 1999 and subsequently; the Council and to the EP, which may hold a general debate — nomination of the President, Vice-President and other on that basis. members of the ECB Executive Board; The President of the ECB and the other members of the — any changes to voting arrangements within the ECB Executive Board may, at the request of Parliament or on Governing Council (Article 10(2) of the Statute of the their own initiative, be heard by relevant committees of the ESCB and ECB) in accordance with the Declaration on EP. In accordance with Article 113(3) ECT, members of the Article 10(6) of the Statute of the European System of EP question the President of the ECB at a monetary Central Banks and of the European Central Bank, dialogue held four times a year. They discuss the monetary annexed to the Treaty of Nice; decisions of the ECB and the economic situation, thereby holding the ECB democratically accountable. — legislation implementing the excessive deicit procedure provided for in the Stability and Growth Pact. 2. Parliament’s initiative Parliament called for the extensive powers of the ECB 2. The EP gives its assent provided for under the Treaty — i.e. freedom to determine — to any changes to the powers given to the bank to the monetary policy to be pursued — to be balanced by supervise inancial institutions; democratic accountability (resolution of 18 June 1996). To — to the majority of changes to the statute. that end it instituted ‘monetary dialogue’ as a regular procedure. The President of the ECB, or another member of its B. Supervisory role Governing Council, appears before Parliament’s Committee 1. Under the Treaty on Economic and Monetary Afairs at least every three The ECB addresses an annual report on the activities of the months to answer questions on the economic outlook and to ESCB and on the monetary policy of both the previous and justify the conduct of monetary policy in the euro area. current year to the EP, the Council and the Commission, and to the European Council (Article 113(3) ECT). g Christine BAHR 09/2006
5.3. European monetary policy
Legal basis of an open market economy with free competition, — Articles 98 to 124 of the EC Treaty (ECT); favouring an eicient allocation of resources. — Protocol accompanying the Maastricht Treaty on the Achievements Statute of the European System of Central Banks (ESCB) and the European Central Bank (ECB) (Statute): Articles 1 A. The guiding principles of ECB action to 52. 1. The independence of the ECB The essential principle of the ECB’s independence is set out Objectives in Article 108 of the ECT and Article 7 of the Statute. When The main objective of the ESCB is to maintain price stability exercising powers and carrying out tasks and duties, in accordance with Article 105 of the ECT. neither the ECB, nor a national central bank (NCB), nor any member of their decision-making bodies may seek or take Without prejudice to this objective, the ESCB supports the instructions from Community institutions or bodies, from general economic policies in the Community, with a view any government of a Member State or from any other to contributing to the achievement of the objectives of the body. Respect for Article 108 is guaranteed by the nature of Community as laid down in Article 2 of the ECT, in the mandate entrusted to the members of the Executive particular ‘a high level of employment and of social Board and the Governing Council ("5.2.0.). protection’. The ESCB acts in accordance with the principles
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The ECB’s independence is maintained by the prohibitions State in the aggregate GDP at market prices and in the referred to in Article 101 of the ECT, which also apply to the total aggregated balance sheet of the monetary NCBs: overdraft facilities or any other type of credit facility inancial institutions of the Member States which have in favour of Community institutions or bodies, central adopted the euro. The shares in the aggregate GDP at governments, regional, local or other public authorities, market prices and in the total aggregated balance sheet other bodies governed by public law or public of the monetary inancial institutions shall be assigned undertakings of Member States are prohibited ("5.2.0.). This weights of 5/6 and 1/6, respectively. The irst group shall excludes the dependency of monetary policy on be composed of ive governors with ive voting rights budgetary policy. and the second group of the remaining governors with The independence of the ECB centres around the free the remaining votes; choice of monetary policy instruments. The ECT provides — as from the date on which the number of governors for the use of traditional instruments (Articles 18 and 19 of reaches 22, the governors shall be allocated to three the Statute) and allows the Governing Council to decide by groups according to a ranking based on the above a majority of two thirds on the use of other methods as it criteria. The irst group shall be composed of ive sees it (Article 20 of the Statute). governors and shall be assigned four voting rights. The 2. The principles of responsibility and transparency second group shall be composed of half of the total of the ECB number of governors, with any fraction rounded up to the nearest integer, and shall be assigned eight voting In order to ensure the credibility of the ECB, the ECT rights. The third group shall be composed of the imposes reporting commitments on the ECB (Article 15 of remaining governors and shall be assigned three voting the Statute). The ECB draws up and publishes reports on rights. the activities of the ESCB at least quarterly. A consolidated inancial statement of the ESCB is published each week. The governors must not defend national interests but must The ECB addresses an annual report on the activities of the act in the collective interest of the euro area. In accordance ESCB and on the monetary policy of both the previous and with the Treaty, the minutes of its Governing Council the current year to the European Parliament (EP/ meetings are not published. Parliament) (Article 113(3) of the ECT). Each month, the B. The ECB’s monetary policy strategy ECB’s Monthly Bulletin is published in the 19 oicial languages of the European Community and provides an in- 1. Overview depth analysis of the economic situation and the outlook At its meeting on 13 October 1998, the ECB Governing for price developments. Council agreed on the main elements of its monetary policy strategy: quantitative deinition of price stability; a The ECB is also responsible to the democratic institutions. prominent role for the monitoring of the growth of the The heads of the ECB regularly appear before the EP monetary mass identiied by an aggregate; and a broadly ("5.2.0.). However, the EP cannot give any instructions to based assessment of the outlook for price developments. the ECB and has no a posteriori control. The ECB has opted for a monetary strategy based on two The Governing Council is the main decision-making body pillars, whose respective roles were clariied during the of the ECB. It consists of the six members of the Executive recent review of the monetary strategy on 8 May 2003. Board plus the governors of all national central banks (NCBs) from the euro area countries. The Member States that have not adopted the single currency retain their powers in the ield of monetary policy. The operation of the Governing Council respects the ‘one person, one vote’ principle. Each member of the Governing 2. Price stability Council has one vote. As from the date on which the Price stability was initially deined as a year-on-year increase number of members of the Governing Council exceeds 21, in the Harmonised Index of Consumer Prices (HICP) for the each member of the Executive Board shall have one vote euro area of below 2 %. It must be maintained over the and the number of governors having one vote each and medium term. being eligible to vote shall be 15. The voting rights shall be This deinition was conirmed and clariied on 8 May 2003. assigned and rotate as follows: At the same time, the Governing Council agreed that it — as from the date on which the number of governors would aim to maintain inlation rates below but close to exceeds 15, until it reaches 22, the governors shall be 2 % over the medium term. This underlined the ECB’s allocated to two groups, according to a ranking of the commitment to provide a suicient safety margin to guard size of the share of their national central bank’s Member against the risks of delation. It also addressed the issue of
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01_2006_4661_txt_EN.indd 405 30-10-2007 14:55:43 the possible presence of a measurement bias in the HICP The calculation of the reference value was based on the and the implications of inlation diferentials within the quantitative relationship between money and prices on the euro area. one hand, and economic activity and the velocity of 3. The irst pillar of the monetary policy strategy circulation of money on the other. The M3 value was set at 4.5 % (in December 1998) on the basis of the medium-term The economic analysis focuses mainly on the assessment of trend in real GDP growth (2 % to 2.5 % per year) and the current economic and inancial developments and the trend in the velocity of circulation of M3 (0.5 % and 1 % per implied short- to medium-term risks to price stability. The year). In May 2003 the Governing Council decided to no economic and inancial variables that are the subject of this longer review the reference value for M3 on an annual basis analysis include: developments in overall output; aggregate because experience has shown that the underlying demand and its components; iscal policy; capital and medium-term trend assumptions cannot be expected to labour market conditions; a broad range of price and cost change frequently. indicators; developments in the exchange rate, the global economy and the balance of payments; inancial markets; C. Implementation of the monetary policy: and the balance sheet positions of euro area sectors. All instruments and procedures these factors are helpful in assessing the dynamics of real By establishing interest rates at which the commercial activity and the likely development of prices from the banks can obtain money from the central bank, the ECB perspective of the interplay between supply and demand Governing Council indirectly afects the interest rates in the goods, services and factor markets at shorter throughout the euro area economy, and in particular the horizons. rates for loans granted by commercial banks and for saving The macroeconomic projections (scenarios based on the deposits. developments of key variables in the euro area in 1. Open market operations conjunction with the projections for each country) drawn Open market operations play an important role in steering up by Eurosystem staf are an important contribution to interest rates, managing the liquidity situation in the the deliberations of the Governing Council. market and signalling the monetary policy stance through Overall, projections play an important, but not an all- four categories of operations. encompassing role. (a) Main reinancing operations 4. The second pillar of the monetary policy strategy The main reinancing operations are the most important The ECB singles out money from within the set of selected instrument of the monetary policy. They are regular key indicators that it monitors and studies closely. This liquidity-providing reverse transactions with a weekly decision was made in recognition of the fact that monetary frequency and a maturity of two weeks. They provide the growth and inlation are closely related in the medium to bulk of liquidity to the banking system. The minimum bid long run. This widely accepted relationship provides rate for the main reinancing operations is the key ECB monetary policy with a irm and reliable nominal anchor interest rate. It is within the limits of the rates of the deposit beyond the horizons conventionally adopted to construct facility and the marginal lending facility. The level of these inlation forecasts. Taking policy decisions and evaluating three key rates signals the orientation of the monetary their consequences, not only on the basis of the short-term policy of the euro area. These three rates were set for the indications stemming from the analysis of economic and irst time on 22 December 1998: the interest rate for the inancial conditions but also on the basis of money and main reinancing operations at 3 %, the marginal lending liquidity considerations, allows a central bank to see facility and deposit facility rates at 4.5 % and 2 % beyond the transient impact of the various shocks and respectively. avoids the temptation of taking an overly activist course. (b) Longer-term reinancing operations In order to signal its commitment to monetary analysis and These are liquidity-providing reverse transactions with a to provide a benchmark for the assessment of monetary monthly frequency and a maturity of three months. They developments, the ECB announced a reference value for represent only a limited part of the global reinancing the broad monetary aggregate M3. This reference value volume and do not seek to send signals to the market. refers to the rate of M3 growth that is deemed to be (c) Fine-tuning operations compatible with price stability over the medium term. This covers currency in circulation, short-term deposits with These ad hoc operations aim to deal with unexpected credit institutions (and other inancial institutions) and liquidity luctuations in the market, in particular with a view short-term debt securities issued by these establishments. to smoothing the efects on interest rates.
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(d) Structural operations Since it started operating, the euro system has had to deal These operations are mainly aimed at adjusting on a with the depreciation of the euro (25 % depreciation in permanent basis the structural position of the euro system relation to the dollar between the beginning of 1999 and vis-à-vis the inancial sector. the beginning of 2002) then with a lengthy appreciation in relation to the dollar from the beginning of June 2002, 2. Standing facilities reaching a high in January 2005. Standing facilities provide or absorb liquidity with an overnight maturity. Their interest rates provide a ceiling and The 1999–2002 period was characterised by a number a loor for overnight market interest rates. This rate is known shocks: e.g. the increase in food prices (beef sector crisis as the EONIA (Euro Overnight Index Average). Two standing and climate problems) and the attacks of 11 September facilities are available to eligible counterparties: 2001 (fall in key interest rates and increase in banks’ liquidity to limit the risk of recession). — the marginal lending facility enables counterparties to obtain overnight liquidity against eligible assets. The Inlation averaged 2.1 % in 2004 and 2.2 % in 2005, a little interest rate on this facility provides a ceiling for the above the levels compatible with the deinition of price overnight market interest rate; stability. The key interest rates in the euro area are currently the lowest they have been for more than half a century — the deposit facility enables counterparties to make even though the ECB Governing Council started a overnight deposits with the euro system. The interest tightening cycle in December 2005. rate on the deposit facility provides a loor for the overnight market interest rate. Role of the European Parliament Both of these rates aim to ensure the smooth operation of The EP considers that a ‘domestic payment area’ is a the market in situations of very high supply and demand of necessary complement to the single currency zone. As a funds. result, in order to facilitate the operation of the internal 3. Holding of minimum reserves market, steps should be taken to ensure that the costs of In accordance with Article 19(1) of the Statute, the ECB may cross-border payments in euro are the same as the costs for require credit institutions established in Member States to payments in euro within a Member State. A measure hold minimum reserves with the ECB and national central towards this goal has been initiated through Regulation banks. The aim of the minimum reserves is to stabilise the (EC) No 2560/2001 of 19 December 2001, which sets short-term interest rates on the market and to create (or common costs for payments (both domestic and cross- enlarge) a structural liquidity shortage among the banking border) for sums up to EUR 12 500. The same measure system vis-à-vis the Eurosystem. The calculation methods established a mechanism for the common description of and determination of the amount required are set by the bank accounts (IBAN for the customer’s account and BIC for Governing Council. the banking establishment) with efect from 1 July 2003. D. An initial assessment In its resolution on the 2003 ECB annual report, the EP The euro, a visible symbol of European identity, became the welcomes the ECB’s choice of an inlation rate ‘below, but second largest currency in the world when it was launched. close to 2 %’ as a signal of the ECB’s policy to guarantee It has become an international currency of investment and monetary stability without accepting delationary currency on the markets alongside the dollar and the yen. pressures; the EP recognises that through price stability the ECB can contribute to achieving the objectives deined in With 16 % of global GDP, the euro area comes behind the the Lisbon agenda. United States (21 %), but well ahead of Japan (8 %). Its economic importance will encourage the use of the euro at international level. g Christine BAHR 09/2006
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Legal basis Policy coordination is needed to combine one monetary — Articles 2, 4, 98–104 introduced by the Treaty of policy, pursued by an independent central bank, with iscal Maastricht; and Articles 125, 126 of the EC Treaty and structural policies, for which each Member State introduced by the Treaty of Amsterdam. remains responsible. — Protocol on the Excessive Deicit Procedure annexed to 3. Draw maximum beneit from economic integration the Treaty. The EU is highly integrated in terms of trade and investment lows. The high degree of interdependence Objectives between the national economies needs to be taken into account because it increases the inluence of one Member A. Treaty provisions State’s policy decisions on the evolution of the others’ Article 98 is the basis for coordination, requiring the economies. Successful coordination guarantees that such Member States to view their economic policies as a spillover efects are taken into account in policy design, matter of common concern and coordinate them within enabling the advantages ofered by a well-functioning the Council. Subsequent articles prescribe the areas and large internal market to be fully exploited. forms of coordination. Article 99 lays down the 4. Achieve economic convergence procedures related to the general policy The coordination of structural policies, inter alia in product recommendations (Broad Economic Policy Guidelines). and labour markets, seeks to foster long-term convergence Article 100 is concerned with special provisions applicable of national economies since their evolution determines the in cases of serious economic diiculties. Articles 101 to direction in which the EU economy will develop. 103 rule out privileged access to inancing from the European Union or the European Central Bank (ECB) to C. Scope of coordination any public body. Article 104 contains the basis for The scope of economic policy coordination is wide but not subsequent secondary legislation with regard to precisely deined. It can be seen as encompassing all budgetary discipline. The thresholds for the level of public actions aiming to provide economic conditions for debt and deicit are deined in a separate protocol to the balanced and sustainable growth within the European Treaty (Protocol on Excessive Deicit Procedure). Article Monetary Union (EMU) and the EU. Its main elements 104 also lays down the procedure to be followed if a should be: Member State does not fulil the deicit or debt criteria. — a common assessment of the economic situation; The title on employment, introduced in the Treaty of Amsterdam, establishes employment policy among the — agreement on appropriate policy responses in the short ields of economic policy coordination (Articles 125 and run and in the long run; 126). See also employment policy ("4.8.3.). — acceptance of peer pressure and, where necessary, B. Aims adjustment of policies pursued. 1. Contribute to the attainment of Treaty objectives The overall objectives of economic policy coordination are Achievements those of the European Union, seeking to secure balanced, A. Decision-making framework sustainable and non-inlationary growth, associated with Economic policy coordination is mainly based on high employment and competitive industry in a market consensus without legally enforceable rules, except in the economy setting. This should lead to higher standards of iscal policy framework ("5.5.0.). In other areas the means living and quality of life together with increasing employed consist in information exchange, discussion, convergence of economic performance across Member peer review and, where appropriate, commonly agreed States. goals with common actions. The key concept of ‘open 2. Tune national iscal policies to single monetary method of coordination’ was coined by the Lisbon summit policy of March 2000, with the European leaders encouraging the The euro area is a monetary union where the currency area Member States to set benchmarks, identify best practices does not coincide with the area of budgetary sovereignty. and implement policy in line with these.
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The legal framework for economic policy coordination, directorate-general in charge of economic and inancial developed since Maastricht, is based on: afairs) is in charge of reporting, preparing and making — Council Regulation 3605/93 (amended by Regulation recommendations, as well as of the follow-up of the 475/2000) on the application of the protocol on the implementation of decisions. The Economic and Financial excessive deicit procedure annexed to the Treaty Committee (EFC) gives opinions and prepares the establishing the European Community; Council’s work. So does also the Economic Policy Committee (EPC), which also contributes to the — Council Regulation 1466/97 (amended by Regulation Commission’s work. Finally, the social partners are 1055/2005) on the strengthening of the surveillance of involved in their ields of main interest: employment, budgetary positions and the surveillance and wage developments and structural reform. coordination of economic policies; C. Main tools — Council Regulation 1467/97 (amended by Regulation 1056/2005) on speeding up and clarifying the 1. Overall Policy Coordination — Broad Economic implementation of the excessive deicit procedure; and Policy Guidelines (a) Nature and frequency — the Stability and Growth Pact ("5.5.0.). The Broad Economic Policy Guidelines (BEPGs) are the A further framework for coordination is deined by central, overarching policy document for diferent areas of decisions taken by the European leaders in the European economic policy coordination. They cover both Council. These decisions have created a ‘soft’ legal basis for macroeconomic and structural policy issues. The Ecoin policy coordination in various areas or have made it more Council adopts this strategic document, endorsed by the explicit: European Council, in early summer of each year on the — Employment: conclusions of the Luxembourg summit basis of the Commission’s recommendation. As of 2003 the of November 1997. period for major revisions has increased to three years, relecting the medium-term character of this strategy — Structural policies: conclusions of the Cardif European document. Since 2005 the BEPGs and the employment Council of June 1998. guidelines have been combined into the Integrated — Strategic goals for structural reform to be reached by Guidelines for Growth and Jobs. 2010: conclusions of the Lisbon European Council of (b) Content March 2000 and their relaunch in 2005. The purpose of the BEPGs is to give concrete — The resolution of the Cologne European Council of June recommendations to the Member States with regard to 1999, establishing the Macroeconomic Dialogue. macroeconomic and structural policies. The document — The Code of Conduct on the content and format of the consists of two broad sections, the irst devoted to Stability and Convergence Programmes, endorsed by orientations common to all Member States or all euro area the Ecoin Council on 11 October 2005, incorporating Member States and the second containing country-speciic the essential elements of Council Regulation 1467/97 recommendations. into guidelines to assist the Member States in drawing (c) Legal status up their programmes. It is also aiming at facilitating the The BEPGs are not legally enforceable, but peer pressure examination of the programmes by the Commission, exercised by other Member States is expected to make the the Economic and Financial Committee and the recommendations politically binding. To step up the Council. pressure, the Council can issue a recommendation to non- B. Actors compliant Member States and make it public. The European Council sets coordinated political priorities (d) Implementation and follow-up and gives guidelines at the highest level. The Member Since 2000 the Commission publishes an annual States are in charge of national reporting, exchange of implementation report to enhance the follow-up of the information and the implementation of recommendations. The report aims to give more visibility to recommendations and decisions adopted by the Ecoin progress made or missed, permitting results to be taken Council. The Eurogroup (the inance ministers of EMU into account when preparing the BEPGs for the following Member States) discusses EMU-related matters year. The implementation report also constitutes an informally, usually before the Ecoin Council meeting. The important link between the BEPGs and the coordination of ECB participates in matters linked to monetary policy. budgetary policies under the Stability and Growth Pact The Commission (in particular the commissioner and the ("5.5.0.).
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01_2006_4661_txt_EN.indd 409 30-10-2007 14:55:43 (e) Relationship with sectoral coordination employment guidelines which are now combined with the In order to guarantee the coherence of sectoral BEPGs into the new integrated guidelines for growth and coordination — the so-called ‘processes’ — information jobs. must low between them and the overall coordination (b) Legal status based on the BEPGs. Input from the coordination in ields Policy coordination in employment matters is a relatively of budgetary policy and public inances, employment, weak coordination process. It is based on regular reporting, structural reform and the general macroeconomic dialogue peer review and general guidelines issued to Member is used in the preparation of the BEPGs. Conversely, the States. Country-speciic recommendations can also be recommendations issued in the BEPGs are to be applied given, but they are not legally binding. when setting goals in other ields. 5. Structural Reform — Cardif process and Lisbon 2. The Macroeconomic Dialogue — the Cologne targets Process (a) Origin and content The Cologne summit of June 1999 introduced bi-annual The aim of structural reform is to make product, labour and meetings of representatives of various European capital markets more eicient, thus promoting a high institutions and the social partners, called the standard of living and quality of life for the European citizen Macroeconomic Dialogue or the Cologne Process. Its in a globalised world. Progress in these ields is monitored purpose is to be a forum for an exchange of views, thereby in the Cardif process, named after the Cardif European fostering a common assessment of the economic situation Council, which introduced the procedure. at the European Union level. It is hoped that such exchanges will lead to stability-oriented wage claims and a (b) Procedures balanced macroeconomic policy mix, supporting strong Coordination is voluntary and based on monitoring, the non-inlationary growth. The model for this procedure is exchange of best practices between the Member States the dialogue between management and labour and peer pressure. The centrepiece of the process is a organisations common in some Member States. The parties reporting system on the measures taken in improving the in the Macroeconomic Dialogue include the social partners, functioning of product and capital markets. Member States the Council, the Commission and the ECB. provide national reports annually, on the basis of which the 3. Framework for iscal policy — Stability and Growth Commission prepares a ‘Cardif report’ for the EU. This Pact report serves as an input to the assessment of the implementation of the broad economic policy guidelines. The purpose of coordinating budgetary policies is to ensure a suicient degree of coherence between the (c) Speeding-up structural reform — Lisbon targets Member States’ iscal policies, given the common monetary At the Lisbon summit of 2000 the Member States policy conducted by the ECB. The coordination of committed themselves to speeding up the structural budgetary policies consists of multilateral surveillance and reform process, in order to make the European Union the the Excessive Deicit Procedure, the rules for which are set most dynamic economy in the world by 2010. Numeric out in detail in the Stability and Growth Pact ("5.5.0.). goals were set to be reached by that year in areas such as 4. Employment — the Luxembourg Process and the employment and research and development. The progress Employment Guidelines made in ive years has been disappointing and thus the Lisbon agenda was relaunched in 2005. (a) Procedures The employment guidelines constitute the centrepiece of Since 2000 special spring summits have taken place. These this policy coordination process. The Council adopts this are meetings of the European Council dedicated to policy document on the basis of the Commission’s economic policy, evaluating in particular progress on proposal. The Member States are requested to take the structural reforms. guidelines into account when formulating their national 6. Integrated guidelines for growth and jobs employment policies. They must submit to the Commission In March 2005, the European Council judged that it was national action plans (NAPs) on employment, which are vital to relaunch the Lisbon strategy without delay and to examined by the Commission and the Council. The NAPs refocus priorities on growth and employment. In this are an input to the Commission’s Joint Employment Report context, the Council approved the integrated guidelines for and thereby to the following year’s employment guidelines. growth and jobs 2005–2008 which consist of the broad Apart from the Member States, the European Parliament economic policy guidelines, ensuring the overall economic (EP/Parliament), the Economic and Social Committee and consistency of the three dimensions of the Lisbon strategy, the Committee of the Regions each provide an input to the and the employment guidelines.
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This is a irst result of the new approach deined at the The Commission has presented its communication Council’s meeting in March 2005, which makes it possible ‘Common Actions for Growth and Employment: The to coordinate macro-economic policies, micro-economic Community Lisbon Programme’ to run in tandem with the policies and employment policies around 24 integrated national programmes and covering the Community level guidelines in a dynamic and consistent fashion, in measures to be taken to promote growth and accordance with the procedures laid down in the Treaty. employment. To follow the new economic governance cycle, the integrated guidelines served as the basis for drawing up Role of the European Parliament the national reform programmes that were presented by The Treaty requires that EP be consulted on secondary the Member States in autumn 2005. These programmes legislation implementing the excessive deicit procedure, respond to the Member States’ speciic needs and relect including the stability and growth pact. the approach of the integrated guidelines involving macro- In several resolutions Parliament has reiterated its view that economic policies, micro-economic policies, and it and the national parliaments should be more closely employment. associated in the policy coordination processes, which The guidelines as well as the national programmes will be have a signiicant impact on the national actions in areas of valid for the period 2005–08 and may be adjusted, where iscal and structural policies. necessary, each year in line with the provisions of the Treaty. The national programmes may — within the period of their g Christine BAHR validity — also be amended by the Member States, if 09/2006 necessary, to take account of domestic policy requirements.
5.5. Framework for iscal policies
Legal basis convergence criteria, with which they had to comply in — Articles 2, 4 and 98–104 of the EC Treaty, introduced by order to be allowed to adopt the euro ("5.2.0). the Treaty of Maastricht; 1. Fiscal prerequisites in a monetary union — Protocol on the excessive deicit procedure, annexed to In a monetary union with iscal policy independence, a the Treaty; common framework for iscal policies can be justiied by the risk of moral hazard. Such a problem arises when one — Protocol on the convergence criteria referred to in participant can act knowing he will not be sufering the Article 121, annexed to the Treaty. (full) consequences of his actions. In EMU this might be the case if a Member State chose to run high budget deicits Objectives and accumulate debt, expecting to escape the full cost of A. Goals this course of action. In the absence of a monetary union, a country with such imprudent policies would be subjected The purpose of the framework for iscal policies of the to a higher cost of borrowing in the form of higher interest Member States is to fulil the Treaty objective of securing rates. In an extreme case, the debt might swell to a level sound public inances in the context of deeper economic which the debtor could not sustain without help from its integration, in particular within economic and monetary partners, who will be forced to pay in order to avoid union (EMU). Rules outlining a common framework for damage to the common currency. If the imprudent country national iscal policies were introduced into EU Law in the was one of the big economies, its behaviour might also Treaty of Maastricht as an essential element of the lead to higher interest rates for the EMU as a whole. preparations for the completion of EMU. Although national Although some economists argue that global inancial sovereignty in the ield of iscal policy was maintained, the markets would be eicient enough to charge individual autonomy of Member States was reduced by the Member States the full cost of higher borrowing, thus
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01_2006_4661_txt_EN.indd 411 30-10-2007 14:55:44 persuading them not to run excessive deicits and debt, pact is applicable to all Member States, both those that this outcome is anything but certain. Other economists have already adopted the euro, and those still in the convincingly argue that these market mechanisms do not waiting room (Sweden, the Czech Republic, Estonia, Cyprus, work due to the moral hazard problem. Individual countries Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and cannot be made accountable for their budgetary Slovakia) or opting out (Denmark and the United Kingdom). imprudence as the credible mechanisms to punish them With regard to the soundness of budgetary positions, the do not exist. This is especially so as the non-bailout rules are the same as the convergence criteria. They limit: provisions in EMU (Article 103 of the European Union Treaty) are deemed not to be credible. Due to this — the deicit in general government inances to 3 % of uncertainty and given the experience of a drift towards GDP in any year; and ever-higher debt levels, the Member States have opted for — the public debt-to-GDP ratio to 60 %. a framework of rules-based iscal policy. Additionally, the section on medium-term budgetary Keeping public inances in balance under normal objectives in Council Regulation (EC) No 1466/1997 circumstances will give the Member States room for requires general government inances to be close to manoeuvre, allowing them to use discretionary iscal policy balance or in surplus in the medium term. This combined to react to asymmetric economic shocks, i.e. those shocks with the nominal 3 % deicit limit which is independent of hitting the Member State concerned but not the euro area the cyclical position of the economy means that, in times as a whole. of strong growth public inances should be in surplus if deicits are to be permitted during downturns. A balanced Achievements position in the medium term permits the use of ‘automatic stabilisers’, leading to deicits during downturns because A. Framework lower growth reduces tax revenues and, at the same time, 1. Convergence criteria higher unemployment raises public expenditure. Council The convergence criteria deine the framework for iscal Regulations (EC) No 1055/2005 and 1056/2005 amended policies for EU Member States before their entry into EMU, the original regulations in a reform of the Stability and and they therefore continue to apply to those Member States Growth Pact. As a number of Member States were that have not yet adopted the euro. For the irst 11 Member experiencing diiculties in respecting the rules of the pact, States that entered the third stage of EMU in 1999, along with the reform essentially increased its lexibility. Most notably, Greece — which was able to join at the beginning of 2001 — the reformed pact now gives greater attention to debt the original criteria are no longer applicable. The current iscal developments as well as the implementation of structural policy framework applicable to them, however, draws heavily policies and also allows for a more diferentiated country- on the convergence criteria and includes reporting speciic assessment in the medium-term objectives. It also procedures and sanctions. Council Regulation (EC) allows for more leeway in the enforcement of the excessive No 3605/93 on the application of the protocol on the deicit procedure (see point 3. below). The reform is often excessive deicit procedure remains applicable. blamed to have gone too far in catering to the special 2. The Stability and Growth Pact needs of some Member States struggling with high The Stability and Growth Pact consists of: budgetary deicits. — the resolutions of the Amsterdam European Council of B. Enforcement June 1997 on stability, growth and employment; The procedures for guaranteeing that objectives are met — Council Regulation (EC) No 1466/97 of 7 July 1997 on are based on multilateral surveillance, comprising regular the strengthening of the surveillance of budgetary reporting and recommendations for corrective action, if positions and the surveillance and coordination of commonly agreed targets are not met. While pecuniary economic policies, as amended by Council Regulation sanctions are possible if the binding deicit limit is (EC) No 1055/2005 of 27 June 2005; and exceeded, no inancial penalties are used for enforcing the limit set as regards general government debt. — Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the 1. Stability and convergence programmes excessive deicit procedure, as amended by Council For the purposes of multilateral surveillance, all Member Regulation (EC) No 1056/2005 of 27 June 2005. States are required to submit to the Council and the Commission medium-term programmes with regard to These set out how the Treaty rules — in particular the their budgetary position and the economic outlook on excessive deicit procedure — should be implemented. The which the budget plans are based. These programmes are
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called stability programmes for the EMU Member States State has not implemented in its stability or convergence and convergence programmes for those outside EMU. They programme the recommendations addressed to it in the must cover a period of three years following the year of BEPGs. This warning mechanism has so far been used once, submission, as well as the year prior to submission and the in February 2000, when Ireland received a warning as a current year. The programmes must be updated annually. result of an excessively loose iscal policy (tax cuts in times Updates are submitted in the autumn, which in most of strong inlationary pressure). Member States coincides with the presentation of the 3. Excessive deicit procedure (EDP) following year’s budget proposal to the national (a) Concept parliament. The purpose of the procedure is to ensure that excessive (a) Content deicits are promptly corrected. In normal circumstances, a The programmes must provide information on: general government deicit exceeding the reference value — how the medium-term objective of close to balance or of 3 % of gross domestic product (GDP) at market prices is in surplus is to be achieved, as well as on the expected considered excessive. This deicit limit is not applicable in a development path of the government debt ratio; severe recession. Before the reform of the pact in June 2006 a severe recession was deined as an annual drop in real — the main assumptions about economic developments GDP of at least 2 %. After the reform, a negative rate of GDP on which the programme is based, and measures of growth or a prolonged period of low growth suices. The budgetary and other economic policy taken to achieve EDP may also be set aside in ‘exceptional’ circumstances, the objectives set out in the programme. and the scope of these circumstances was increased in the (b) Assessment reform in June 2005 (now called ‘relevant factors’). Most The programmes are assessed by the Commission and the importantly, additional relevant factors include Economic and Financial Committee. On the basis of these circumstances where countries spend on eforts to ‘foster assessments, the Council examines whether: international solidarity and to achieving European policy goals, notably the reuniication of Europe if it has a — based on the medium-term objectives set out in the detrimental efect on the growth and iscal burden of a programme, an excessive deicit is likely to be avoided; Member State’. — the measures taken or proposed are suicient to (b) Implementation achieve a balanced budget in the medium term; The Commission is responsible for monitoring the Member — the underlying economic assumptions are realistic; States’ budgetary positions and debt levels. For this — the programme is consistent with the purpose, the Member States report to the Commission recommendations addressed to the Member State in their planned and actual government deicits and debt the broad economic policy guidelines ("5.4.0). levels twice a year, by 1 March and 1 September. If the Commission detects a deicit that is or risks becoming The Council delivers an opinion on each programme acting excessive, it must draw up a report. The Commission may on the recommendation of the Commission and after prepare a report even where the reference values are not having consulted the Economic and Financial Committee exceeded, if it considers that there is a risk of excessive ("5.4.0). deicit or debt. Based on a recommendation of the 2. Early warning Commission, the Council then decides whether an (a) Failure to respect the balanced-budget requirement excessive deicit exists. If the Council concludes that there If the Council inds that the development of a Member is an excessive deicit, it will make a recommendation to State’s public inances diverges signiicantly from the the Member State establishing a deadline of six months for objective of a balanced position in the medium-term or efective corrective action to be taken. If the Member State from the path towards such a position, it must issue an does not take adequate measures, the Council may require early warning to the Member State concerned. The early it, at the latest 10 months after the reporting of the data warning is given as a Council recommendation to make the indicating the existence of an excessive deicit, to make a policy adjustments that are necessary. To date, the non-interest bearing deposit. However, under the reformed Commission has recommended an early warning four pact the Council may extend this period by one additional times (to Germany, Portugal, France and Italy). year. The payable deposit comprises a ixed component equal to 0.2 % of GDP and a variable component linked to (b) Failure to implement the broad economic policy guidelines the size of the deicit. Each subsequent year the Council The Council can also give an early warning if it considers, may decide to intensify the sanctions by requiring an following a Commission recommendation, that a Member additional deposit, though the annual amount of deposits
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cooperation in the ields of justice and home afairs), was 2. The policy planning and early warning unit based on intergovernmental procedures, as opposed to the This was set up by a declaration annexed to the Amsterdam irst and main pillar, which concerned purely Community Treaty. Its main tasks within the CFSP are: policies. In establishing the concept of CFSP, the EUT — to monitor and analyse developments and provide constituted a signiicant breakthrough. timely assessments and early warning; 1. Instruments — to provide assessments of the Union’s interests and The CFSP difered from the EPC by introducing concrete identify areas where the CFSP could focus in future; strategic means, which went beyond simple verbal statements. In their original, Maastricht version, Articles 12 — to produce argued policy-options papers as a and 13 provided for common positions and joint actions. contribution to policy formulation in the Council; Both were to be decided unanimously by the Council and — to provide direct policy support to the High bind all Member States. Representative. 2. Single institutional framework 3. Decision-making process One of the most innovative aspects of the EUT is the Article 23 stipulates that decisions shall be taken by the establishment of a single institutional framework. Thus, Council acting unanimously. In seeking to overcome the although the CFSP is based on intergovernmental constraints that produced the rule of the unanimity, the consultation, many actors participate: the European Treaty introduced the instrument of constructive Council, the Council (in its General Afairs and External abstention (Article 23, § 1) as a means towards more Relations coniguration — GAERC), the Commission, lexibility. Thus, when a Member State abstains from a vote, Parliament, the Political and Security Committee. it shall not be obliged to apply the decision but shall 3. Security and defence accept that the decision commits the Union. "6.1.3. Furthermore, the Treaty tried to extend the sphere of qualiied majority voting (QMV). The Council can act by C. The Treaty of Amsterdam (1997) QMV when adopting joint actions, common positions or Though expected at irst to introduce comprehensive taking any other decision on the basis of a common institutional reform to make CFSP more coherent, in the strategy or when adopting any decision implementing a end the Amsterdam Treaty left the established structure joint action or a common position, though not on largely unchanged. It did however introduce a whole range decisions with military or defence implications. If no of new instruments, as well as establish a much more Member State objects or calls for a unanimous decision in eicient decision-making process. the European Council (‘emergency brake’), the decision is 1. Instruments adopted by the Council by QMV (currently requiring 62 Expanding Article 12, the Treaty of Amsterdam gave the votes from at least 10 Member States). following instruments to the CFSP: 4. Implementation — principles and general guidelines (Article 13), decided Responsibility for implementation is granted to the by the European Council, including matters with presidency, assisted by the Secretary-General of the defence implications; Council, who acts as the High Representative for the CFSP, a function introduced at the 1999 December European — common strategies, decided by the European Council Council. upon recommendation of the Council in cases where the Member States have important common interests, 5. Financing common strategies must set out the objectives, Both operational and administrative expenditures are duration and means to be made available by the Union charged under Article 28 to the budget of the European and the Member States; they are also implemented by Communities. the Council; D. The Treaty of Nice (2003) — joint actions (Article 14); In response to new developments in the international — common positions (Article 15); relations system regarding security challenges the Member — systematic cooperation between Member States, which States reconsidered the institutional framework of the CFSP. must inform and consult one another within the The Nice Treaty, which entered into force on 1 February Council on matters of foreign and security policy of 2003, introduced the following changes: general interest.
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1. Decision-making process 3. Actual action By derogation from the provisions of Article 23, § 1, the Despite its modest formal role in the process, the EP has Council shall act by qualiied majority when appointing a supported the concept of CFSP from its inception and special representative. sought to extend its scope. Bearing in mind conlicts 2. Agreements with one or more States throughout the world but especially those in the Balkans or international organisations and in the Middle East, as well the changing nature of the security situation after the terrorist attacks of 11 September Article 24 stipulates that when the agreement is envisaged 2001, Parliament has repeatedly noted that the in order to implement a joint action or common position, performance of the CFSP is weakened by the three-pillar the Council shall act by QMV. structure, calling on Member States to make less systematic 3. Political and Security Committee (PSC) use of the constructive abstention mechanism. It also The PSC, set up by Council decision in January 2001, is pushed for an EU ‘Foreign Minister’ and the creation of a authorised by the European Council to exercise political single European diplomatic service. control and strategic direction of a crisis management Parliament’s main instrument in this political dialogue is the operation (Article 25). annual report and resolution on CFSP (called the ‘Brok 4. Enhanced cooperation Report’ after its author, the current and long-serving chair The Treaty’s Articles 27(a) through 27(e) extend the of the Foreign Afairs Committee). This report is Parliament’s possibility for enhanced cooperation to the direct response to the annual Council document on CFSP implementation of a joint action or a common position on (see above) and feeds into the budgetary procedure, under CFSP issues that do not have any military or defence which Parliament, as one half of the EU budgetary implications. As for other policy areas, it should be noted authority, must approve the CFSP budget. however that enhanced cooperation may be undertaken While waiting for the Treaty establishing a Constitution for only as a last resort, once it is established that the intended Europe to further formalise its role in CFSP, the EP has goal cannot be achieved within reasonable time through achieved a degree of informal cooperation in practice with applying the relevant Treaty provisions the presidency, the Council Secretariat and the Commission. Representatives of all three entities regularly Role of the European Parliament attend the meetings and hearings of Parliament’s 1. Treaty provisions Committee on Foreign Afairs (AFET) and of the Sub- Article 21 of the Amsterdam Treaty urges the presidency to Committee on Security and Defence (SEDE), created in consult the European Parliament (EP/Parliament) on the 2004. It has also built working relations with national main aspects and the basic choices of the CFSP. The EP may parliaments in the ield of foreign policy, holding an annual ask questions to the Council or make recommendations to it. exchange with these on CFSP and ESDP. 2. Inter-Institutional Agreement g Stefan SCHULz Under paragraph 40(H) of the Inter-Institutional Agreement 09/2006 of 6 May 1999, the Member States are required to prepare an annual Council document on the main aspects and basis choices of CFSP, including the inancial implications for the general budget of the European Communities.
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Legal basis punishment (2001), the protection of children in armed ‘To develop and consolidate democracy and the rule of law conlicts (2003), and inally the protection of defenders of and respect for human rights and fundamental freedoms’ is human rights (2004). Speciic EU action has been taken and one of the ‘objectives’ of common foreign and security recommendations have been made to Member States on policy, as deined in Article 11 of the EU Treaty (see 6.1.1.). each of these guidelines. Furthermore, as far as development cooperation is 3. Appointment of a personal representative concerned, ‘Community policy in this area shall contribute for human rights of the High Representative to the general objective of developing and consolidating for the CFSP democracy and the rule of law, and to that of respecting In January 2005, following a Council decision on the human rights and fundamental freedoms’ (Article 177 of creation of this position, Mr Javier Solana appointed Mr the EC Treaty). Michael Matthiessen, whose role is to ensure the coherence and continuity of European policy. Mr Matthiessen is Finally, the European Union bases its action on all responsible for ensuring the implementation of guidelines instruments of international law in order to promote and EU policy at the United Nations, the Council of Europe respect for the commitments laid down therein. and the OSCE, and also for monitoring political dialogue and organising relations with the European Parliament (EP/ Objectives Parliament). The European Union seeks to uphold the universality and 4. The drafting of an annual report on human rights indivisibility of human rights — civil, political, economic, Since 1999 the Council has published an annual report on social and cultural — as reairmed by the 1993 World human rights in order to make its policy and action in this Conference on Human Rights in Vienna. The ield more transparent, while Parliament has published its communication from the Commission of May 2001 own annual report on human rights in the world since (COM(2001) 252) analyses these objectives. 1984. Achievements B. EU initiatives in third countries 1. The ‘human rights and democracy’ clause A. General in external EU agreements 1. European Initiative for Democracy and Human Sine 1995 the EU has inserted a clause under which Rights (EIDHR) conclusion of the agreement is conditional upon both The EIDHR is the Union’s primary inancial instrument for parties’ respect for international human rights standards in promoting human rights and democracy. It enables direct all its agreements with third countries. This is known as an inancial support for NGOs working in the ield of human ‘essential elements’ clause. Human rights breaches by a rights and support for democracy in third countries, State bound by such a clause are put on the political without the need for backing from their country’s dialogue agenda (see below), and may involve the authorities. Since April 2004, EIDHR-funded projects have negotiated implementation of ‘measures appropriate’ to the largely been selected and managed at local level following situation (blacklist, refusal of visas, suspension of the the process of decentralisation from Brussels to delegations agreement, except as regards support for civil society, etc.). in third countries, so that the ties between the EU and its To date the clause has been applied chiely to ACP partners are strengthened as far as possible. countries — which are linked to the EU by a speciic global 2. The adoption of guidelines for EU policy on human agreement, the Cotonou Partnership Agreement (see rights 6.5.5.), but has not been used to any great extent Since 1998 the Council of the Union has adopted ive elsewhere. It should be noted that sectoral agreements guidelines deining its priorities for the promotion of (ishing, textiles, etc.) do not include a clause of this type. human rights. A broad consensus has been achieved 2. Common strategies, actions, positions among the Member States on the following themes: action The EU pursues its human rights and democracy objectives against the death penalty (1998), the creation of specialised by deining the general principles on which its policy is dialogues on human rights (2001), action against torture based. These principles may be relected in ‘common and other cruel, inhumane or degrading treatment or
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strategies’ when the EU and its Member States have (b) Talks on human rights with Russia signiicant common interests (Russia, the Mediterranean, During the EU–Russia summit of November 2004, it was for example), in ‘joint actions’ when an EU operational decided to establish biannual talks on human rights; the action is deemed to be necessary (appointment of special matters debated so far (in March and September 2005) EU representatives — Moldova, Central Asia, Afghanistan, have focused on Chechnya, freedom of the press, the Middle East, Great Lakes, Southern Caucasus, Bosnia situation of minorities and the implementation of Herzegovina and the Republic of Macedonia — and crisis international human rights standards and racism in Europe. management operations), or in ‘common positions’ when it Civil society is not involved in this process. is a case of deining the EU’s position on a particular (c) Talks between the Troika and the United States, Canada, geographic or thematic issue (e.g. common position of Japan, New Zealand and candidate countries June 2005 on Cuba and human rights). While the content of these talks depends on the countries While these instruments are not speciically designed to concerned, they in particular involve an exchange of views defend human rights, they are regularly used for this and information on human rights with a view to drawing purpose. up cooperation strategies or achieving a common position 3. Measures and declarations during sessions of the Human Rights Commission or the Measures taken by the EU presidency, the Troïka or a United Nations General Assembly. Member State on behalf of all Member States vis-à-vis the Romania, Bulgaria and Turkey have been called upon to authorities of a third country are a signiicant means of support EU initiatives and to report on the human rights pressure. They are generally taken conidentially and situation in their territory. All candidate countries must, involve reminding the authorities of their international moreover, comply with the ‘Copenhagen criteria’ for joining human rights commitments, whether in a particular area (e. the EU which focus in particular on respect for fundamental g. stoning, the death penalty), or as regards a defender of rights and freedoms. human rights or an organisation facing particular danger (e.g. Akhbar Gandji (Iran), Tunisian League for Human Role of the European Parliament Rights, etc). In 2005 around 40 countries were concerned, often on several occasions. For many years, defending human rights in the world has been one of Parliament’s primary concerns and an area in Along the same lines, public declarations, which are no which it has been most prominently involved in public longer conidential, may be decided with the aim of calling debate. upon a government to respect human rights (example: the detention of Daw Aung San Suu Kyi), or to welcome a A. Role of the Human Rights Subcommittee positive development (e.g. the holding of Parliament’s principal player in promoting human rights elections). In 2005 some 40 countries were concerned. and democracy and protecting minorities is the Human 4. Political dialogues Rights Subcommittee (DROI), a subcommittee of the Committee on Foreign Afairs. It deals with the day-to-day Since the 1970s the EU has been involved in a dialogue management of human rights dossiers, sometimes in with all its partners. This dialogue, which takes diferent cooperation with other parliamentary committees (such as forms for diferent countries, is the forum in which the the Foreign Afairs, Development, Civil Liberties, Women’s policies to be developed jointly by the EU and the third Rights or Security and Defence Committees), or with EP country are formulated and negotiated. Questions of delegations with the parliaments of third countries. respect for human rights and democracy, an ‘essential element’ of all the agreements concluded since 1995, are 1. Ensuring the coherence of European Commission one of the themes addressed in these dialogues. and Council action (a) Speciic dialogues on human rights: Iran and China The subcommittee holds a permanent dialogue with these two institutions and seeks to express its point of view on In view of the human rights situation in these two their action while monitoring how they achieve the countries, the EU has initiated a dialogue with them priorities that have been set, often by common agreement, focusing exclusively on human rights. This dialogue has and encouraging them to act when a common strategy or been continuing with China for over 10 years and with Iran joint action is required. since 2002. While the progress made has been far from spectacular, these dialogues, in which civil society takes In the same way, the EP draws on the subcommittee’s work part (intellectuals, NGOs, etc.), have enabled the latter at to formulate its international position, whether in the least to ind a forum for meeting and discussion. context of United Nations’ work or the ratiication of new international agreements.
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01_2006_4661_txt_EN.indd 421 30-10-2007 14:55:46 2. Establishing a debating chamber and platform 3. Organising and preparing the Sakharov Prize allowing continuous dialogue with civil society procedure NGOs defending human rights, defenders in all countries, Parliament introduced the Sakharov Prize for Freedom of the families of people who have disappeared, researchers Thought on 13 December 1985, at which time Andrei and experts, judges and MPs from Europe and elsewhere Sakharov was still in exile in Gorki. The prize is awarded have all given evidence before the subcommittee, annually in recognition of an action or achievement relating providing answers to Parliamentarians’ questions and to respect for the defence of human rights. Today it helps to proposing paths far action, such as the adoption of urgent underscore Parliament’s commitments to defend human resolutions in plenary session. rights and fundamental freedoms throughout the world.
g Andrea SUBHAN 11/2005
6.1.3. Security and defence policy
Legal basis humanitarian and rescue tasks, peace-keeping tasks and Title V of the Treaty on the European Union (EUT) on the tasks of combat forces in crisis management, including common foreign and security policy (CFSP) ("6.1.1.) and the peace-making. They became part of the CFSP and the ive declarations on CFSP annexed to the EUT, particularly common defence policy. All of the Union Member States numbers 2 and 3 on the Western European Union (WEU). may participate in these tasks (except Denmark which has an ‘opt out’ on defence matters under Protocol 5 to the Treaty of Amsterdam). Objectives (b) Common strategies Five objectives were established for the CFSP (as modiied by the Amsterdam Treaty): This new instrument is decided by the European Council. — to safeguard the common values, fundamental interests, (c) EU/WEU relations independence and integrity of the Union in conformity Article 17(3) of the Treaty of Amsterdam seeks to clarify the with the principles of the United Nations Charter; nature of these relations, stating that the EU will avail itself of the Western European Union (WEU) to implement decisions — to strengthen the security of the Union in all ways; which have defence implications, and that the EU will draw — to preserve peace and strengthen international security, up political guidelines for such situations. However, following in accordance with the principles of the United Nations the European Council of Cologne in 1999 to strengthen the Charter, as well as the principles of the Helsinki Final Act EU’s European Security and Defence Policy, the WEU is and the objectives of the Paris Charter, including those currently under transition. At Marseille in November 2000, on external borders; the WEU Ministerial Council decided to maintain a minimum — to promote international cooperation; secretariat in order to ensure that the functions and structures of the WEU can still serve the commitments of the — to develop and consolidate democracy and the rule of Member States under the modiied 1954 Brussels Treaty. The law, and respect for human rights and fundamental meetings of the Council of Ministers of the WEU in Oporto in freedoms. May 2000 and in Marseille in November 2000 paved the way for the transfer to the EU of the WEU functions required for Achievements performing Petersberg tasks. As such the WEU’s headquarters and its military staf has closed. A. The Treaty of Amsterdam 1. Content of the CFSP 2. Decision-making process (a) The incorporation of the Petersberg tasks (a) Initiative Under Article 17(4), the Treaty of Amsterdam incorporated Under Article 18 (4), the Commission is fully associated with into the EUT the so-called Petersberg tasks which include: the work carried out in the ield of CFSP and has, along
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with the Member States, the right of initiative. It may also, cooperation is adopted in the Council by a qualiied as any Member State, request the presidency to convene majority with a threshold of only eight Member States. an extraordinary Council meeting and make suggestions to the policy unit for work to be undertaken. C. Further developments 1. Cologne European Council (b) Decision At the June 1999 European Council in Cologne, as a result In order to allow a certain degree of lexibility to the of the Kosovo conlict, the EU took a major step towards general rule of unanimity in the decision-making process, establishing its own military capabilities and placed the the Amsterdam Treaty introduced the constructive Petersberg tasks at the core of the process of strengthening abstention procedure, by which a Member State can the Common European Security and Defence Policy (ESDP). choose not to apply a particular decision even though it The aim was to create capacity for autonomous action, agrees that it commits the Union as a whole. The Council backed up by credible military forces, and the readiness to acts, by derogation, by qualiied majority when adopting respond to international crises without prejudice to actions joint actions, common positions or taking any other by NATO. The European Council made it clear that the decision on the basis of a common strategy and when integration of the WEU into the EU institutional framework adopting any decision implementing a joint action or a was not necessary, despite the fact that it was foreseen in common position. the Amsterdam Treaty; rather, those functions that the WEU (c) Implementation assumed in the ield of Petersberg tasks would be included The Amsterdam Treaty introduces the new oice of a High in the EU. Representative (HR) for CFSP. He or she will also be the 2. Helsinki European Council Council Secretary General. Under Article 26, the HR shall A concrete military aim was set up by the European assist the Council in the ield of CFSP with the formulation, Council, known as the ‘Headline Goal’: by the year 2003, in preparation and implementation of policy decisions and, voluntarily cooperation, the Member States should be able when appropriate and acting on behalf of the Council at to deploy within 60 days, and then sustain, forces capable the request of the presidency, with conducting political of the full range of Petersberg tasks, including the most dialogue with third countries. Mr Javier Solana was demanding, in operations up to corps level (up to 15 appointed as the irst HR and took oice on 18 October brigades consisting of 50 000–60 000 persons). This new 1999. force, to be called the European Rapid Reaction Force The CFSP budget, which is part of the EC budget, is (ERRF), would be available for deployment to a crisis area administered by the Commission. up to 2 500 miles away within 60 days, and should be sustainable for up to one year. It is to be noted that the B. The Nice Treaty achievement of this goal does not involve the 1. Political and Security Committee establishment of a European army. Under Article 25 of the Nice Treaty, the Political and 3. Feira European Council Security Committee (now established after being introduced as an ‘interim’ body at the June 2000 Feira At the June 2000 Council, in Feira, Portugal, the EU formally European Council) shall exercise, under the responsibility of established the interim Political and Security Committee the Council, political control and strategic direction over (PSC), composed of national representatives dealing with crisis management operations. The Council may authorise all aspects of CFSP, including European Security and the Committee, for the purposes and for the duration of a Defence Policy. Feira also introduced a body to provide crisis management operation, as determined by the military advice to the PSC in the form of an interim EU Council, to take the relevant decisions concerning the Military Committee (EMC) (supported by an interim EU political control and strategic direction of the operation. military staf), composed of the chiefs of defence This gives it an even more prominent role in the ESDP. represented by their military delegates, which will give advice and make recommendations to the PSC. Similarly, in 2. Enhanced cooperation the area of civilian crisis management, the Feira Council Enhanced cooperation shall respect the principles, welcomed the establishment of the irst meeting of the objectives, general guidelines and consistency of the CFSP committee for civilian aspects of crisis management and the decisions taken within the framework of that (Civcom). It also introduced priority areas in civilian crisis policy. It shall relate to implementation of a joint action or a management, in particular the commitment to provide by common position, but not to matters having military or 2003 up to 5 000 police oicers for international missions defence implications. If no Member States object or call for across the range of conlict prevention and crisis a unanimous decision in the European Council, enhanced management operations; to be able to identify and deploy
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01_2006_4661_txt_EN.indd 423 30-10-2007 14:55:46 up to 1 000 police oicers within 30 days; and to welcome Furthermore, on capabilities widely regarded as lacking in the Commission to contribute to civilian crisis European inventories and essential for crisis management management within its spheres of action. The police operations the Laeken Council approved the European oicers will be under the control of the PSC, while efective Capability Action Plan (ECAP). This called on Member States operational control will be in the hands of the HR. It is to mobilise voluntarily all eforts, investments, estimated that such a commitment would require a developments and coordination measures, both nationally maximum pool of 15 000 committed and trained and multinationally, in order to improve existing resources personnel. and progressively develop the capabilities needed for the 4. The Capabilities Commitment Conference Union’s crisis-management actions. On 20 November 2000 in Brussels, the Member States took 8. Seville European Council part in the irst Capabilities Commitment Conference, The European Council welcomed the irst crisis which is now an annual event. The conference provides an management exercise conducted by the Union in 2002, opportunity for the Member States to ‘volunteer’ speciic which tested successfully the ESDP structures and decision- national commitments corresponding to the military making procedures. capability goals set by the Helsinki European Council. These 9. Copenhagen European Council commitments have been set out in a document known as The European Council also indicated the Union’s the ‘Force Catalogue’. In accordance with the guidelines of willingness to lead a military operation in Bosnia following the Helsinki and Feira European Councils on collective NATO’s Stabilisation Force (SFOR). It conirmed the Union’s capability goals, the Member States committed themselves readiness to take over the military operation in the Former to medium and long-term eforts in order to further Yugoslav Republic of Macedonia (FYROM) as soon as improve both their operational and their strategic possible in consultation with NATO. Subsequently, an capabilities by implementing reforms in their armed forces agreement was reached with NATO in March 2003 known required for autonomous EU action. as ‘Berlin Plus’ that paved the way for the irst military ESDP 5. Nice European Council operation known as Concordia. The second military In December 2000, the European Council in Nice assessed operation, ‘Artemis’, in the Democratic Republic of the each Member State’s undertakings in regard to forming the Congo (CD), was also launched in June 2003 which European Security and Defence Policy. conirmed the EU’s ability to conduct an autonomous 6. Gothenburg European Council operation under a ‘framework-nation’ concept, in this instance led by France. At the June 2001 European Council in Gothenburg, the EU was committed to developing and reining its capabilities, 10. Brussels European Council structures and procedures in order to improve its ability to At the March 2003 European Council in Brussels, the EU undertake the full range of conlict prevention and crisis welcomed the police operation in Bosnia and Herzegovina management tasks, making use of military and civilian (1 January 2003). In December that year a second EU police means. A particular emphasis was placed on conlict operation (‘Proxima’) was launched in the FYROM which prevention under an EU programme for the prevention of followed on from the NATO military operation ‘Allied violent conlicts. Harmony’. 7. Laeken European Council D. EU–NATO relations ‘Berlin Plus’ At the December 2001 European Council in Laeken, the EU ‘Berlin Plus’ is short-hand for EU access to NATO planning adopted a declaration on the operational capability of the and capabilities for crisis management operations. Its European security and defence policy saying that: origins refer to the 1996 NATO Ministerial in Berlin, where — the development of military capabilities does not imply foreign ministers agreed to make NATO assets available to the creation of a European army; WEU-led operations in a bid to boost European defence within NATO. At the 1999 Washington summit this — the Union has begun to test its structures and provision was extended for EU-led crisis management procedures relating to civilian and military crisis- operations under the European Security and Defence management operations; Policy. The ‘Washington communiqué’ said these — the Union’s crisis-management capability has been arrangements would cover […] operations in which the strengthened by the development of consultation, alliance as a whole is not engaged.’ A inal agreement cooperation and transparency between the EU and between the EU and NATO was held up between 1999 and NATO in crisis management in the western Balkans. December 2002 due to blocking manoeuvres by,
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alternatively, Greece and Turkey. A deal, originally, brokered Role of the European Parliament by the UK and concluded on the margins of the Brussels The European Parliament (EP) has repeatedly welcomed European Council of November 2002 opened the way to the debate on European security and defence policy the 16 December 2002 ‘EU–NATO Declaration on ESDP’. (ESDP), which began in Pörtschach in October 1998. At the Therefore, the inal EU–NATO ‘Berlin-Plus’ agreement is beginning of the 2004 legislature, in recognition of the represented by a series of institutional arrangements rapid development in ESDP, the EP set up a new Sub- between the EU and NATO that enable them to exchange Committee on Security and Defence (SEDE) within its information securely and to establish the manner in which Foreign Afairs Committee. The EP has consistently, through NATO makes available its assets. The inal institutional its resolutions, pointed to the lack of a parliamentary agreement that was necessary to formalise this relationship dimension in the development of ESDP and has noted a arrived with the 12 March 2003 ‘EU–NATO Agreement on serious democratic deicit. Security of Information’ (including 18 articles). The whole In its resolutions of 15 June 2000 and of 30 November 2000, ‘Berlin Plus package’ could then be tied together with the the EP stressed the importance of developing the military so-called ‘Framework Agreement’ which consisted of an assets and capabilities of the Member States as well as the exchange of letters between the EU’s High Representative civilian instruments of conlict prevention and crisis and NATO’s Secretary General dated 17 March 2003 — just management. This was further elaborated in its resolution in time for the EU to launch Operation Concordia on 31 of 10 April 2003 on the new European security and defence March 2003 which required NATO assets and planning architecture — priorities and deiciencies. resources. It believes that the UN should be the only legitimate E. The European Security Strategy (ESS) organisation for the implementation of international law, and the new Headline Goal 2010 reminding that the use of force is authorised only by the In December 2003, the EU Member States adopted a UN Security Council. landmark European Security Strategy (ESS) which mapped In addition, the EP proposes, in the context of the CFSP and out for the irst time, in an EU framework, their collective the ESDP, regular meetings bringing together aspirations in this policy area. The ESS has become the key representatives of the competent committees of national reference document for policy developments under ESDP, parliaments and the EP, with a view to examining the including deining relations with the United Nations, development of the two policies jointly with the Council regional organisations and strategic partnerships. At the presidency, the HR for the CFSP and the Commissioner Thessaloniki European Council, in June 2003, they responsible for external relations. acknowledged that the EU operational capability across the full range of Petersberg tasks was still limited and In its resolution of 25 October 2001, the EP calls once more constrained by recognised shortfalls. Therefore a new 2010 for a strong parliamentary dimension to the ESDP by Headline Goal was developed and adopted at the Brussels intensifying cooperation between the EP and the national European Council in June 2004, which extended the parliaments, through joint meetings and regular original Petersberg tasks to also consider including joint consultation. disarmament operations, the support for third countries in Furthermore, it considers that combating terrorism must combating terrorism and security sector reform, as well as become a central component of European foreign and extending operational demand to include the ability to security policy, with aspects of external security having to conduct concurrent operations thus sustaining several be combined with those of internal security. operations simultaneously at diferent levels of engagement. The Thessaloniki European Council also g Gerrard QUILLE paved the way for the establishment of a European 05/2006 Defence Agency in 2004.
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6.2.1. The European Union as a trade power
I. Trade accounted for 21 % of exports and 27 % of imports. This can be compared with the situation of China, excluding A. The EU’s place in world trade Hong Kong, which during the same period rose from 1. The EU accounts for a ifth of world trade (2004 igures): — 1.3 % to 7.5 % of exports; — it is the second exporter after the United States with — 1.3 % to 11.6 % of imports. 17.7 %; 3. It has a slight balance of trade deicit whereas the — it is the irst importer ahead of the United States with United States shows a surplus in 2004 and Japan and 18.0 %. China have deicits (in the case of China the deicit is 2. However, its relative position has been falling in the rapidly increasing). long term. In 1980 (with only nine Member States) it
Table 1 — World exports of goods (bn EUR)
1990 1995 2002 2004 Share of world EU-25 total in 2004 EU-15 355.2 573.3 993.8 892.0 17.7 % USA 300.5 431.9 713.6 1 124.1 22.3 % Japan 213.7 316.4 412.9 322.2 6.4 %
China 50.2 111.3 337.5 379.5 7.5 %
World 1 849.4 2 707.8 4 841.9 5 031.3 Source: Eurostat
Table 2 — World imports of goods (bn EUR)
1990 1995 2002 2004 Share of world EU-25 total in 2004 EU-15 404.4 545.3 987.5 964.1 18.0 % USA 387.7 566.2 1 235.9 686.9 12.8 % Japan 177.7 245.8 342.2 459.5 8.6 %
China 40.9 89.5 273.1 623.5 11.6 %
World 1 943.7 2 783.8 5 289.9 5 369.6 Source: Eurostat
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Table 3 — Balance of trade (bn EUR)
1990 1995 2002 2004 EU-25 EU-15 -49.2 28.0 6.3 -72.1 USA -87.2 -134.3 -522.4 +437.2 Japan 36.0 70.6 70.7 -137.3
China 9.3 21.8 64.3 -244.0 Source: Eurostat
B. The nature of the EU’s trade (a) Machines and transport equipment alone account for 1. Main products over 45 % of exports and over 35 % of imports. The European Union primarily buys and sells manufactured (b) Energy and chemical products come next. goods: they represent 90 % of its exports and about three (c) Conversely, foodstufs and raw materials constitute only quarters of its imports. a little over 7 % of exports and 10 % of imports.
Table 4 — Breakdown of total exports by product
1990 1995 2003 2004 EU-25 Foodstufs and 7.5 % 6.8 % 5.1 % 5.1 % beverages Raw materials 2.4 % 2.4 % 2.0 % 2.1 % Energy 3.6 % 2.3 % 2.7 % 3.3 % Chemical products 13.0 % 12.8 % 15.8 % 15.8 % Machines and 42.2 % 44.6 % 45.5 % 45.2 % transport equipment Other 31.3 % 31.0 % 28.4 % 26.1 % Source: Eurostat
Table 5 — Breakdown of total imports by product
1990 1995 2003 2004 EU-25 Foodstufs 8.4 % 7.9 % 5.9 % 5.7 % and beverages Raw materials 7.8 % 7.4 % 4.5 % 4.7 % Energy 17.9 % 11.9 % 14.6 % 17.6 % Chemical products 6.8 % 7.9 % 8.1 % 8.5 % Machines and 29.9 % 31.8 % 36.1 % 34.3 % transport equipment Other 29.2 % 33.1 % 30.7 % 26.3 % Source: Eurostat
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01_2006_4661_txt_EN.indd 427 30-10-2007 14:55:47 2. Export-import balance by product (b) On the other hand, it has a considerable deicit for (a) The EU has a very high surplus for chemical products energy, which has almost doubled during the period. and a high surplus for machines and transport equipment.
Table 6 — Balance of trade by product (bn EUR)
1990 1995 2003 2004 EU-25 Foodstufs -7.6 -4.2 -7.7 -9.5 and beverages Raw materials -25.0 -26.6 -24.7 -27.7 Energy -64.9 -51.4 -118.0 -149.9 Chemical products 21.3 30.4 74.0 65.6 Machines and 34.7 82.6 88.2 84.8 transport equipment Other -5.1 -2.7 -25.3 -17.9 Source: Eurostat
C. The EU’s main trading partners 4. Russia has risen to fourth place, with a little over 6.3 %. 1. With almost 20 % of total trade, the USA is still the EU’s 5. In terms of economic groupings, we may note: main trading partner, being the irst customer and the irst supplier. However, despite the considerable — a very strong increase in the candidate countries, whose increase in absolute value, the share has declined exports and imports increased sevenfold in 2003; somewhat in the last decade (1990–2003). — a marked increase (by a factor of about 2.5) in trade with the newly developed Asian countries; 2. During the same period, China has moved from eighth to second place (from 2 % to 8.7 %), replacing — a signiicant increase in exports to Latin America Switzerland. Its exports to the EU have increased almost (which have increased by a factor of 2.5) and with ninefold and its imports almost sevenfold. the southern and eastern Mediterranean countries (which have increased by a factor of over 2); 3. Switzerland and Japan are in third and ifth place with 6.9 % and 5.9 %, but this represents a fall as in 1990 they — a relative decline in respect of EFTA, OPEC, the ACP accounted for 9.8 % and 9.1 %. countries and the countries of the former Soviet Union.
Table 7 — The EU’s main trading partners (share of total trade: imports + exports)
1995 (EU-15) % ranking 2003 (EU-15) % ranking 2004 (EU-25) % ranking USA 18.5 1 USA 18.9 1 USA 19.6 1 Switzerland 8.4 2 China 6.9 2 China 8.7 2 Japan 7.8 3 Switzerland 6.3 3 Switzerland 6.9 3 Norway 3.8 4 Japan 5.4 4 Russia 6.3 4 China 3.7 5 Russia 4.3 5 Japan 5.9 5 Russia 3.4 6 Norway 3.8 6 Norway 4.3 6 Poland 2.5 7 Poland 3.5 7 Turkey 3.4 7 South Korea 2.1 8 Czech Republic 3.1 8 South Korea 2.4 8 Source: Eurostat
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Table 8 — EU exports by economic area (bn EUR)
1990 1995 2003 2004 EU-25 USA 82.7 103.3 220.4 234.2 Candidate countries 25.3 70.7 175.0 71.9 EFTA 59.6 69.8 96.5 108.7 MEDA 36.5 50.6 81.0 116.7 DAE 31.0 65.6 73.2 81.6 Latin America 16.9 32.4 43.3 47.7 OPEC 36.6 39.0 66.4 76.6 Japan 24.5 32.9 40.0 43.2 ACP 23.8 17.6 40.2 43.6 CIS 18.5 20.8 45.3 65.8 China 5.8 14.7 40.1 48.1 Source: Eurostat MEDA: Southern and eastern Mediterranean countries DAE: dynamic Asian economies (Thailand, Malaysia, Singapore, South Korea, Taiwan, Hong Kong) CIS: former USSR countries
Table 9 — EU imports by economic area (bn EUR)
1990 1995 2003 2004 EU-25 USA 91.5 103.7 151.1 157.7 Candidate countries 22.9 55.5 155.3 53.6 EFTA 58.6 69.9 90.5 120.3 MEDA 28.6 32.1 107.2 97.0 DAE 36.3 54.4 71.1 109.4 Latin America 27.1 30.4 66.6 56.7 OPEC 45.2 38.4 95.1 81.9 Japan 51.4 54.3 66.6 73.7 ACP 28.8 19.9 62.3 44.9 CIS 22.9 24.9 47.6 100.2 China 11.4 26.3 43.3 127.0 Source: Eurostat
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01_2006_4661_txt_EN.indd 429 30-10-2007 14:55:48 II. Trade in services A. General situation 1. The European Union accounts for more than a third of Alongside trade proper, in goods, mention should also be world trade in services. It is still the premier importer made of trade in services, which has acquired considerable and premier exporter. importance in recent years and which now also tends to be 2. Balance categorised as trade. The EU has a stable long-term surplus but it is much lower than the USA’s considerable surplus. Japan has a large and persistent deicit.
Table 10 — World exports and imports of services (bn EUR)
2002 2003 Exports Imports Exports Imports EU 336.3 311.9 330.5 303.0 USA 305.3 240.5 268.8 226.5 Japan 69.5 114.2 68.6 98.5 Canada 39.3 44.9 37.9 44.7 China 42.0 49.2 41.3 48.8 World 1 301.0 1 303.0 781.4 751.8 Source: Eurostat, IMF
Table 11 — Balance of trade in services (bn EUR)
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 EU-15 12.9 11.9 12.0 13.5 17.6 11.9 7.4 7.4 10.0 24.4 27.5 USA 52.4 56.0 59.1 67.9 78.6 72.8 77.4 80.6 74.0 64.9 42.2 Japan 36.8 40.4 43.8 49.0 47.8 44.1 50.8 51.6 48.8 44.7 29.9 Source: Eurostat, IMF
B. Type of services C. Main partners Services to businesses (insurance, inancial services, IT 33.3 % of the trade of the EU-25 is with the USA, 15.3 % services, licences) now rank irst in exports, having with the EFTA countries, 4 % with Japan, 1.6 % with China, displaced transport and travel. and 1.4 % with Australia.
g Dominique DELAUNAy 11/2005
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Table 12 — The EU-15’s balance of trade by type of service (bn EUR)
1997 1998 1999 2000 2001 2002 2003 Total services 17 637 11 905 7 413 7 415 9 690 25 012 27 515 Transport 1 665 3 801 4 418 8 115 5 028 5 034 4 191
Travel 1 120 -1 783 -9 062 -7 789 -12 965 -13 940 -20 644 Other services 14 759 9 952 12 053 7 187 17 127 33 973 43 986 Communications -573 -1 098 -1 027 -787 -680 -1 161 -684 Construction 4 914 5 412 4 071 3 847 4 002 3 965 4 648 Insurance 3 681 2 389 5 028 4 435 5 856 12 469 9 895 Financial services 6 048 6 433 9 538 11 965 10 884 11 726 11 706 Information technology 1 150 1 564 2 973 3 716 4 975 7 214 9 135 and information Royalties and licence fees -6 187 -8 356 -8 727 -7 847 -9 243 -9 035 -8 600 Other business services 6 795 4 541 3 200 -4 774 4 158 7 615 16 373 Personnel, cultural and recreational 2 898 -2 779 -3 816 -3 811 -3 383 -1 890 -1 231 services Services provided or received 1 832 1 849 813 443 559 3 069 2 744 by public administrations Non-classiied services 93 -65 4 2 500 -56 -17 Source: Eurostat
Table 13 — The EU-25’s trade in services by geographic region in 2003 (bn EUR)
Exports Imports Share of total Total 330.5 303.0 EFTA 55.3 42.0 15.3 % Other European countries 37.8 49.0 13.7 %
Africa 19.2 20.5 6.2 % America 134.9 128.4 41.5 % of which: Canada 6.9 6.7 2.1 % USA 110.1 101.0 33.3 % Asia 62.3 50.3 17.7 % of which: China 6.0 4.3 1.6 % India 2.7 2.8 0.8 % Japan 15.9 10.0 4.0 % Oceania 6.1 5.9 1.9 % of which: Australia 4.9 4.4 1.4 % Other 15.0 6.9 3.4 % Source: Eurostat
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01_2006_4661_txt_EN.indd 431 30-10-2007 14:55:48 6.2.2. The European Union and the World Trade Organisation (WTO)
Legal basis Decision-making mechanism — International: the agreement establishing the World The unilateral measures (customs tarifs, antidumping Trade Organisation (WTO), which was signed in measures) are: Marrakesh on 15 April 1994 and entered into force on 1 — proposed by the Commission; January 1995. — adopted by the Council acting by a qualiied majority — European Common Commercial Policy: Articles 26 and (Articles 133 and 301). 27 and 131 to 134 of the EC Treaty; conclusion of The agreements with third countries are: international agreements: Articles 300 and 301 of the European Community (EC) Treaty. — negotiated by the Commission on the basis of Council directives (adopted by a qualiied majority); Objectives — concluded by the Council, in general by a qualiied majority (Articles 133 and 300). The European Union is one of the most important trading regions in the world and has always played a key role in the The European Parliament (EP) is not involved even in a structures responsible for facilitating global trade: the consultative role (except for association agreements which General Agreement Tarifs and Trade (GATT) then the WTO. are subject to its assent, "1.4.1. and 1.3.2.). Its ongoing objectives in this respect are: 1. Background — the liberalisation of trade in goods and services and GATT investment in order to ensure the growth of trade and When the European Economic Community was set up at thus economic prosperity; the beginning of 1958, its six members were also members — the defence of European interests, particularly in certain of GATT (General Agreement on Tarifs and Trade), a body sectors of industry, agriculture, public services and created in 1948 to ensure the development of international culture; trade through common rules. — provision of a framework for this liberalisation through Since then, the Community has played an active role in rules to protect the environment, protect employees GATT’s work to liberalise trade, which has involved eight and ensure that the least developed countries have an negotiating rounds. It has supported the principles equitable share. adopted by GATT to facilitate the gradual liberalisation of global trade: Achievements — irstly, the principle of non-discrimination, which is implemented in the form of the most-favoured nation A. Decision-making competence clause; Principle of exclusive Community competence — secondly, the elimination of quantitative restrictions, the In the light of the fact that, based on the Treaty of Rome, prohibition of export subsidies, the principle that the EC forms a customs union (completed with the end of customs duties are the only instruments of protection, the transitional period in 1970), it has by deinition and the transparency of national trade legislation; exclusive competence for external trade policy. The aims of this ‘common commercial policy’ are to: — inally, more favourable treatment for developing countries. — establish and amend the common customs tarif; The Community was particularly active during the Uruguay — conclude tarif and trade agreements with third Round, which was launched in September 1986 and proved countries; to be the most signiicant round in the history of GATT due to: — implement an export policy; — the importance of tarif and non-tarif reductions; — establish commercial defence measures (in the case of — the scope of the liberalisation being extended to dumping for example). include agriculture and new sectors not previously dealt
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with in international negotiations such as intellectual — establishing rules governing liberalisation in various property, public procurement, services and investment; areas (investment, competition, public procurement); — the systematic attention paid to trade protection — making the environment an integral feature; measures, especially antidumping and antisubsidy — dialogue on social standards; measures. — consideration of the interests of the least developed 2. The creation of the WTO countries. The Uruguay Round resulted in the creation of a new organisation, the WTO, through the Marrakesh agreements As the conference (November–December 1999) was a of 15 April 1994. The EC played a very active role in complete failure, the EU subsequently argued for a new negotiating these agreements, which establish a new set of round of negotiations. (For details of the Union’s overall international trading rules and a mechanism for approach, see the Commission communication implementing them and for adopting new rules. It joined COM(1999) 331 and the Council conclusions of 21 June, 27 this organisation immediately (entry into force of the September and 15 November). agreements: 1 January 1995). In doing so, it was agreeing to 3. 2000 and 2001 make major concessions in relation to its own commercial In the course of 2000, the EU endeavoured to restore policy, above all by replacing the agricultural levies at its conidence and achieved a consensus on the launch of a external borders (a mechanism that provided a very high new round of negotiations aimed not only at continuing level of protection for its agriculture) with customs duties with the liberalisation of trade but also at establishing a and reducing export subsidies (another key element of the more solid regulatory framework, promoting sustainable European preference in the area of agriculture). However, it development and assisting the developing countries. It intends to retain, through other means, the ‘European played an active role in the WTO’s working groups, in social and rural model’ and to this end advocates particular the Committee on Technical Barriers to Trade, in ‘multifunctional’ agriculture. which it put forward contributions on international standardisation and labelling. It supported China’s C. The EU’s participation in the major stages accession to the organisation, which took place in 2001 of the WTO’s activities along with that of Taiwan. 1. 1996 and 1997 Following the WTO Ministerial Conference in Singapore in The EU welcomed the decision of the Doha Ministerial December 1996, the EU played an important role over the Conference (November 2001) to launch a new round of course of 1997. trade negotiations, lasting three years. The conference addressed its hopes of boosting growth through further It gave considerable impetus to the conclusion of three liberalisation as well as greater regulation of the system essential agreements: through agreements on investment, competition and — on information technologies (26 March): it accepted public procurement, and support for the developing tarif reductions and even the suspension of the countries, whose inluence increased at this conference. collection of certain duties under its common customs 4. 2002 and 2003 tarif; Following the Doha Conference, the EU took the lead in — on basic telecommunications services (15 February); terms of the initiatives to ensure the success of the new — on inancial services (12 December). round of negotiations launched in 2001. Whilst pursuing its objectives of further liberalisation, tighter rules and the It provided the incentive for the conference on initiatives promotion of sustainable development, it concentrated in for the least developed countries (LDCs). Integrating these particular on technical assistance to the developing countries into the global trading system is one of the EU’s countries for implementing the rules and participating in priorities. The conference provided in the short term for all the multilateral trading system (see the Commission LDCs to be treated in accordance with the provisions of the communication of September 2002 ‘Trade and Lomé Convention ("6.5.5.) and in the long term for their Development: Assisting Developing Countries to Beneit access to markets free from customs duties. from Trade’). 2. 1998 and 1999 However, the 2003 Ministerial Conference (held in Following the 1998 Ministerial Conference in Geneva, the September in Cancun) was a complete failure due, above EU played an important role in the WTO’s General Council all, to the problem of agriculture. There was a North–South in preparing for the 1999 Conference in Seattle. Its clash, in particular between the United States–European objectives were: Union coalition (which had adopted a common position
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01_2006_4661_txt_EN.indd 433 30-10-2007 14:55:49 on agriculture just before the conference) and the so-called protection measures concerning steel imports: the DSB Group of 21, led by China, Brazil and India, whose main aim condemned these measures and even authorised the EU to was to put an end to the agricultural subsidies of the two establish retaliatory measures (which amounted to major western unions. USD 4 000 million); the United States inally withdrew their 5. 2004 to 2006 measures in December 2003. WTO members agreed a framework agreement on 31 July 2004. The agreement focuses on agriculture, non- Role of the European Parliament agricultural market access (NAMA), development services, The EP has supported the Commission in its desire to shield and trade facilitation. The inal agreement covers also trade the health, education and audiovisual sectors from and the environment, dispute settlement, geographical liberalisation in order to safeguard universal service and indications (GI), and anti-dumping rules. cultural diversity (resolution of 12 March 2003). The conclusion of the Doha Round negotiations, also It has defended the place of social standards in the known as the Doha Development Agenda (DDA) is international trading system, calling for close cooperation expected by the end of 2006. in this area between the WTO and the International Labour Organisation (resolutions of 13 November 1996 and 13 D. Participation in dispute settlement January 1999). One of the major breakthroughs of the WTO compared with the GATT system has been the creation of a binding It has expressed its support for the export of afordable, mechanism for the settlement of trade disputes between essential medicines to the poorest countries through an states, in the form of a permanent body with its own exemption from the authorisation of the patent-holder jurisdiction (the Dispute Settlement Body (DSB)), which (resolution of 12 February 2003), which was eventually deals with the issues referred to it by setting up special accepted by the WTO General Council. panels. It has expressed the wish that the Doha Development The EU has often had recourse to this body and has been Agenda will place the development issue at the forefront of responsible for around one third of the panels set up since the negotiations (resolution of 12 May 2005). the system began. It has won the majority of its disputes, a signiicant proportion of which have been directed at the g Dominique DELAUNAy United States. Its greatest success was against the US 06/2006
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6.3. Framework for relations with certain groups of countries
6.3.1. The enlargement of the Union
Legal basis 2. Decision-making process — Articles 49 and 6 of the Treaty on European Union (EUT). The candidate country addresses its application to the Council, which acts unanimously after consulting the Objectives Commission and receiving the assent of the European Parliament (EP/Parliament), which acts by an absolute The enlargement of the European Union is not an objective majority of its members. The conditions of accession and in itself. It has been, however, one of the most important the adjustments to the Treaties which it entails are laid and successful policies contributing to the further down in a treaty of accession, which is subject to integration of the European continent by peaceful means, ratiication by the acceding country and by all the Member and extending a zone of stability and prosperity to new States (Article 49 EUT). members. In practice, the European Commission prepares and adopts an opinion on the relevant application for membership, Achievements evaluating the situation of each country in relation to the A. The legal framework accession criteria. The Commission takes into account 1. Conditions of accession information provided by the candidate countries According to Article 49 EUT, any European State which themselves; assessments made by the Member States; EP respects the principles set out in Article 6(1) EUT may apply reports and resolutions; the work of other international to become a member of the European Union. Article 6(1) organisations and international inancial institutions (IFIs); describes these principles as those of liberty, democracy, and progress made under the existing association and respect for human rights and fundamental freedoms, and other agreements. The Commission opinion is usually also a the rule of law, principles which are common to the forward-looking analysis of expected progress. Based on Member States. this evaluation the European Commission issues a recommendation on the eventual opening of accession In the context of the ifth enlargement round, the negotiations. Copenhagen European Council of June 1993 laid down the basic criteria for accession which future members would B. Earlier enlargements have to meet in addition to the conditions in the Treaty, The six founder members were joined: namely: — in 1973 by Denmark, the Republic of Ireland and the — stability of institutions guaranteeing democracy, rule of United Kingdom; law, human rights and respect for and protection of — in 1981 by Greece; minorities; — in 1986 by Spain and Portugal; — a functioning market economy and the ability to cope with competitive pressure and market forces within the — in 1995 by Austria, Finland and Sweden. Union; C. The ifth enlargement — ability to take on the obligations of membership, The ifth EU enlargement has been, in the view of the EP, a including adherence to the aims of political, economic unique task of an unprecedented political and historic and monetary union and adoption of the common dimension, which provides an opportunity to further the rules, standards and policies that make up the body of integration of the continent by peaceful means. The EP EU law — the acquis communautaire. considered that all the applicant countries have a right to be allowed to accede to the Union. However, it expressed
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01_2006_4661_txt_EN.indd 435 30-10-2007 14:55:49 concerns on a number of occasions about the inadequacy — Community aid: the Berlin European Council of March of the EU’s institutional framework and the additional 1999 decided substantially to increase pre-accession aid resources which need to be made available. Throughout and to create two speciic instruments, ISPA (for the subsequent negotiations it has stressed the need to transport and environment) and Sapard (for agriculture evaluate the candidate countries on the basis of merit and and rural development) to supplement the Phare in line with the principle of diferentiation. programme, which would now concentrate on 1. Applications for accession strengthening administrative and judicial systems and aiding investment related to the adoption of the Cyprus (July 1990) and Malta (July 1990, reactivated 1998), Community acquis. Assistance was stepped up with the Hungary and Poland (March and April 1994), Romania and adoption, in 2002, of the action plans for building Slovakia (June 1995), Latvia and Estonia (October and administrative, judicial and institutional capacity and the November 1995), Bulgaria and Lithuania (December 1995), special transition facility for institution-building the Czech Republic and Slovenia (January and June 1996). endorsed by the European Council in October 2002. (Turkey had already applied in 1987.) Cyprus and Malta received pre-accession assistance under 2. The accession process a speciic Council regulation for 2000–04. Assistance has The Luxembourg European Council of December 1997 been focusing on the harmonisation process, and in the endorsed the Commission’s opinion on the membership case of Cyprus, on bi-communal measures that might help applications and decided to launch the enlargement to bring about a political settlement. The Helsinki European process and open negotiations, initially with six applicant Council of December 1999 decided that Turkey, like all the countries: Hungary, Poland, Estonia, the Czech Republic, candidate countries, would beneit from a pre-accession Slovenia and Cyprus. It also agreed on an enhanced pre- strategy to support reforms. accession strategy. The Helsinki European Council of December 1999 decided to open negotiations with 4. Historic accession of 10 new members in 2004 Romania, the Slovak Republic, Latvia, Lithuania, Bulgaria (a) Accession on 1 May 2004 and Malta and to recognise Turkey’s status as a candidate The European Council in Copenhagen on 12 and 13 country. December 2002 concluded accession negotiations with 10 The negotiations have been guided by two fundamental countries (Cyprus, the Czech Republic, Estonia, Hungary, principles: Latvia, Lithuania, Malta, Poland, the Slovak Republic and Slovenia). — a single negotiating framework; In a historic vote on 9 April 2003, Parliament adopted a — separate negotiations with each country, starting in resolution on the conclusion of the negotiations on each case at the appropriate time, depending on the enlargement in Copenhagen and formally gave its assent applicant’s level of preparation, and proceeding at their to the membership applications of the 10 countries which own pace. had completed the accession negotiations, thus enabling 3. The pre-accession strategy the Accession Treaty to be signed. Subsequently, members In 1994, the Essen European Council deined a pre- of the national parliaments of the acceding countries were accession strategy to prepare the candidate countries of already able to participate in the work of the EP as central and eastern Europe (CEECs) for EU membership observers from 1 May 2003. based on implementation of the Europe agreements, the A single Accession Treaty with the 10 new Member States was Phare programme of inancial assistance and a ‘structured signed in Athens on 16 April 2003. In all acceding countries, dialogue’ bringing all Member States and candidate except Cyprus, accession to the European Union had been the countries together to discuss issues of common interest. subject of a national referendum, all of them positive. The Luxembourg European Council, of December 1997, The new Member States joined the EU on 1 May 2004. decided on an enhanced pre-accession strategy for the 10 CEECs. The strategy comprised two instruments. (b) Monitoring after accession — Accession partnerships, bringing all forms of EU Monitoring by the European Commission of the assistance within a single framework for the purpose of commitments undertaken by the new Member States has implementing national programmes to prepare the been intended to give further guidance to the acceding candidates for accession. The programmes cover the States in their eforts to assume the responsibilities of short-term and medium-term priorities to be observed membership as well as reassuring the current Member States. in adopting the acquis, and mobilise the inancial In addition to a general economic safeguard clause, speciic resources available for this purpose. safeguard clauses concerning the operation of the internal
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market and justice and home afairs were included in the principles and methods for determining the number and Accession Treaty to deal with unforeseen developments that distribution of seats in the EP, the number of votes in the may still arise in the irst three years after accession. Council and the thresholds for qualiied majority voting After more than one year since accession, no major and the composition of the Commission. It ixes the integration problems have arisen, and the new Member maximum number of seats in the EP at 732 for a Union of States are positively and actively contributing to the EU’s 27 Member States (anticipating already the accession of policy-making. This success can be attributed to a large Romania and Bulgaria as part of the ifth enlargement extent to the EU’s emphasis on thorough preparation by the round), with the possibility for this number to be exceeded acceding States, assisted and supported by the European temporarily according to the actual dates of accession of Commission, in the period leading up to their accession. This the various candidate countries. preparation process made it possible to identify and address In the case of Bulgaria and Romania, the April 2005 the main gaps before accession, obviating the need to make Accession Treaty for these two countries was already based use of the safeguard clauses up to now. on the legal environment of the Treaty establishing a 5. Bulgaria and Romania Constitution for Europe, which had been scheduled to enter into force on 1 November 2006 (e.g. the accession Accession negotiations with Bulgaria and Romania were instrument should become a protocol to the European concluded in December 2004 with a view to their Constitution, as was done for past accessions). However, accession on 1 January 2007. The agreed terms of accession should the Constitution not immediately enter into force, are similar to those of the 10 new Member States which the Accession Treaty also covers the possibility that the joined on 1 May 2004 and which, politically, are considered new Member States join the ‘old’ Union. to be part of the same ‘ifth enlargement’. The EP, on 13 April 2005, gave its assent to admit Bulgaria and Romania In the negotiations with the 10 countries that joined in May to the EU. Subsequently, one single Accession Treaty was 2004, on the ‘Institutions’ Chapter, the following transitional signed on 25 April 2005 and is now subject to ratiication and other arrangements had been agreed with respect to by the 25 Member States. With a view to accession in early their accession: 2007, the EP has been hosting 35 Romanian and 18 — as from the June 2004 elections to the EP, the number Bulgarian observer MPs since 26 September 2005. of seats in Parliament increased from 626 to 732; the The period between the completion of accession Czech Republic and Hungary will have the same negotiations and the date of accession is longer, and number of seats as countries of a similar size in terms of Bulgaria and Romania are at this stage considered to have population; considerable eforts still to make. Particular emphasis is — as for the voting rights in Council, for a transitional therefore placed on enhanced monitoring of the remaining period between May and October 2004, the 25 Member commitments so as to ensure that both countries are fully States had 124 votes in total and a qualiied majority prepared for membership by the time they join. In case was to be reached with 88 votes; there are serious diiculties despite the eforts undertaken in the coming period and despite the assistance provided — since 1 November 2004, the Member States will have by the EU, the Commission can make use of a number of 321 votes in total and the qualiied majority will be safeguards, including the possibility of postponing reached with 232 votes; accession by one year for either of the two countries if it is — all new Member States have one Commissioner each as manifestly unprepared for accession. This clause did not from 1 May 2004; the same principle applies to the old exist for the 10 new Member States. Member States since the start of term of the new Commission on 1 November 2004. D. Adapting the Union (institutional arrangements) To meet the challenges of enlargement, while ensuring E. Future enlargement of the Union that it does not jeopardise the level of integration already 1. Turkey achieved and the continuation of the integration progress, Turkey had applied for EU membership in 1987. At the the Union has also had to adapt its institutional Helsinki European Council of December 1999 Turkey was arrangements. In a ‘Protocol on the institutions’ the oicially recognised as a candidate state on an equal footing Amsterdam Treaty laid down the broad lines of, and the with other candidate states. This marked the beginning of a procedure for, adapting these arrangements. pre-accession strategy for Turkey designed to stimulate and The Nice Treaty ("1.1.4.) (signed on 26 February 2001 and support its reform process through inancial assistance and entered into force on 1 February 2003) and its attached other forms of cooperation. The European Council of protocol on enlargement and declarations set out the December 2004 decided to start accession negotiations
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01_2006_4661_txt_EN.indd 437 30-10-2007 14:55:50 with Turkey on 3 October 2005. This decision was based on based on their own individual merits in satisfying the criteria the Commission’s recommendation of October 2004 which for EU membership (the 1993 Copenhagen criteria) and the recommended starting accession negotiations provided speciic criteria under the speciic Stabilisation and Association Turkey implemented certain key pieces of legislation in the Process. Full cooperation with the UN International Criminal judicial ield. Following an intensive debate in the Council Tribunal for the former Yugoslavia (ICTY) remains a sine qua and the EP as well as inside Member States, the accession non for making progress towards the EU. The Stabilisation and negotiations with Turkey were opened on 3 October 2005. Association Process (SAP), as enriched by the Thessaloniki On 28 September 2005, the EP had given its backing to the European Council in 2003, will remain the EU’s policy for opening of accession talks with Turkey. However, the EP relations with the region until future membership. showed its dissatisfaction with Turkey’s lack of formal The former Yugoslav Republic of Macedonia applied for recognition of the Cyprus government by postponing a membership to the European Union in March 2004. The vote on the extension of the EU–Turkey customs union to European Commission adopted its opinion on this the 10 new Member States. The EP also called on Ankara to application on 9 November 2005, noting substantial recognise the Armenian genocide. progress by the country. Following the European Although Turkey has made progress as regards legislation Commission’s recommendation, the European Council and practical implementation, the sustainability and decided on 17 December 2005 to grant candidate status to irreversibility of the reform process will need to be conirmed the country. No start date for accession negotiations has over a longer period of time. In its resolution of 15 December been proposed or indicated yet by Commission or Council. 2004 the EP had noted that the negotiation process with Priorities in political, legislative, institutional and economic Turkey ‘[...] by its very nature is an open-ended process and reforms have been identiied in a European partnership does not lead ‘a priori’ and automatically to accession [...]’ adopted by the Council on 30 January 2006. 2. Croatia Accession negotiations will not start until the country has Croatia submitted its application for membership in reached a suicient degree of compliance with the February 2003. Following a positive opinion and accession criteria. The latter is to be reassessed by the recommendation by the European Commission of April Commission again at the end of 2006. 2004, the June 2004 European Council decided that Croatia 4. Potential further enlargement was a candidate country. The December 2004 European Based on Article 49 EUT, the EP, in its resolution of Council decided that accession negotiations would be November 2003 on a ‘Wider Europe’, also recognised ‘[...] the opened on 17 March 2005 provided that Croatia right of countries, such as Ukraine and Moldova [...] to cooperated fully with the UN International Criminal obtain EU membership when they fulil [...] all the requisite Tribunal for the former Yugoslavia in The Hague (ICTY). political and economic criteria [...]’. However, the Council concluded in March 2005, as the Chief Prosecutor of the Hague Tribunal had done, that Croatia was not fully cooperating with ICTY. In an Role of the European Parliament important, positive signal to Croatia, the EU adopted a The EP’s most signiicant power in respect of enlargement negotiating framework so that the only remaining obstacle is to give its assent (Article 49 EUT) before any country joins to be overcome before negotiations could begin was for the EU. This power is exercised only at the inal stage, once Croatia to take further measures to ensure full cooperation the negotiations have been completed. However, in view with the tribunal. As this last remaining obstacle was later of Parliament’s key role, it has been in the interest of the judged to be removed, accession negotiations with Croatia other institutions to ensure its participation from the were formally opened on 3 October 2005. In its beginning. Parliament also has a signiicant role to play conclusions, the Council conirmed, however, that less than with regard to the inancial aspects of accession in its full cooperation with the ICTY at any stage could lead to capacity as one of the two arms of the budgetary authority the suspension of negotiations. of the EU. In the EP, it is the Committee on Foreign Afairs which is responsible for coordinating the work on 3. Other western Balkan countries enlargement and ensuring consistency between the The other western Balkan countries (Albania, Bosnia and positions adopted by the Parliament and the activities of its Herzegovina, the former Yugoslav Republic of Macedonia and specialist committees, as well as those of the Joint Serbia and Montenegro, including Kosovo) also have the Parliamentary Committees with the candidate countries. prospect of future EU membership. This was recognised by the European Council in Feira in 2000 and in subsequent European Councils. The countries will advance towards the EU g Karsten MECKLENBURG 05/2006
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6.3.2. The European Economic Area (EEA)
Legal basis The nature of the European Economic Area Article 310 of the EC Treaty (Association Agreements). 1. A step beyond a free trade area (a) An extension of the EC’s internal market Objectives The basic aim of the EEA is to extend the EC’s internal market to cover the three EFTA countries. This market goes The purpose of the European Economic Area (EEA) is to beyond the removal of customs duties and quantitative extend the EC’s single market to include a number of restrictions among the members: it seeks to remove all countries in the European Free Trade Area (EFTA) that do obstacles to the creation of an area of complete freedom of not wish to join the European Union or are not yet ready to movement similar to a national market. To this end, the EEA do so. covers: Achievements — the four main freedoms of movement of the internal market: movement of persons, goods, services and A. Origin and background capital; 1. Initial context — Community policies closely linked to achieving the four The initial context relates to the relations between the freedoms, known as horizontal policies, one of the most European Community (EC) and EFTA. In 1973 the accession important being competition policy. to the Community of two of its member countries, the United Kingdom and Denmark, disrupted EFTA, which was (b) Participation in certain lanking Community policies left with only ive members: Austria, Finland, Norway, The EEA Agreement stipulates that the EFTA countries may Switzerland and Sweden. Trade agreements had to be also participate in internal market lanking policies, which concluded with each of these countries. However, the plan entails a inancial contribution on their part. to create a large internal Community market, launched in In addition, these countries have decided to contribute 1985 and completed at the end of 1992, proved to be inancially to the Community structural policy. extremely attractive to these countries, which had in the (c) Adoption of Community legislation meantime been joined by Iceland. A formula was required to allow them to play a signiicant part in this market Given that, unlike a free trade area, the EC internal market without joining the Community. — rather than limiting itself to a number of initial rules — constantly produces a considerable volume of legislation, 2. Creation of the EEA the EEA has had to establish a mechanism for extending Negotiated in 1992, the agreement creating the these rules to the EFTA countries. European Economic Area was signed on 2 May 1992 and 2. The limits of EEA was to enter into force on 1 January 1994. It united the Community (which at that stage had 12 members) and (a) Free trade itself is limited: it does not cover certain the six EFTA states. The latter, however, soon saw their sectors such as agriculture and isheries. number reduced to ive when Switzerland failed to ratify (b) The extension of the internal market is not complete: the agreement following an adverse referendum result. — the free movement of persons only applies to Switzerland retains observer status with the EEA, workers although it applies to all people within the however, while bilateral agreements govern its relations European Union, particularly in the Schengen area with the EC. ("2.3.0.); 3. Subsequent development — there continue to be controls at the EU’s borders (a) As three other EFTA countries — Austria, Finland and with the three EFTA countries; Sweden — joined the European Union at the beginning — there is no harmonisation of taxation. of 1995, the EEA now only covers Iceland, Norway and Liechtenstein (which joined EFTA in May 1995). (c) The EEA is not even a customs union as it does not have any common external tarif. As a result, it does not have (b) The 10 new Member States which joined the EU on 1 a common commercial policy towards the rest of the May 2004 automatically became part of the EEA. world either.
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01_2006_4661_txt_EN.indd 439 30-10-2007 14:55:50 (d) Obviously, the EEA excludes the other elements of — transport policy, European integration: — public procurement, — economic and monetary union; — company law, — external and common security policy; — intellectual property, — cooperation in the ield of justice and home afairs. — social policy, (e) Above all, it does not integrate the three countries into — consumer protection, the European Union’s institutional and decision-making — the environment. system. (c) Participation in lanking policies (‘cooperation outside the C. The initial extension of the internal market four freedoms’) to the three EFTA states (i) Areas: The EEA Agreement provides for the From the outset, the EEA Agreement incorporated a participation of the EFTA countries in the EU’s activities signiicant proportion of the rules and policies of the in a number of areas: internal market that existed at that time. — research and development, 1. Basic principles (corresponding to primary — information services, Community law) — education and training, (a) The four freedoms — youth, (i) Freedom of movement of goods. The provisions in the EEA Agreement concerning the basic rules of the — tourism, internal market are identical or similar to those of the EC — SMEs, Treaty: — audiovisual sector, — prohibition of customs duties and any charges — civil protection. having equivalent efect together with quantitative (ii) Forms: in these areas, the EFTA countries participate in restrictions and any measures having equivalent particular in framework programmes and projects. efect; (iii) Principles — adjustment of commercial state monopolies; — simpliication of border controls and customs — equal rights and responsibilities in relation to the cooperation. action concerned; (ii) Freedom of movement of persons, services and capital — inancial participation of the EFTA states. 2. Incorporation of Community legislation — abolition of discrimination based on nationality as regards workers’ residence and access to The EEA Agreement does not merely extend to the EFTA employment; countries the fundamental rules of the EC Treaty on the internal market. It also incorporates all of the implementing — right of establishment for self-employed persons legislation for these rules produced by the Community at and undertakings; the time, the ‘secondary legislation’ or the ‘Community — freedom to provide services; acquis’. This legislation has been incorporated through the — measures to facilitate the exercise of these freedoms, protocols and annexes attached to the agreement and it in particular the mutual recognition of qualiications. covers some 1 600 Community acts: (b) Horizontal policies required to achieve the four freedoms — regulations, directives, decisions and non-binding acts; (i) The most important of these is competition policy, for — relating for the most part to the four freedoms and which the EEA Agreement faithfully reproduces the related policies and, to a lesser extent, to lanking provisions of the EC Treaty: policies. — as regards undertakings: ban on agreements and D. The continuing extension of the internal market abuses of dominant positions, control of to cover the EFTA countries concentrations; 1. The continuous incorporation of Community — as regards states: control of public undertakings and legislation services of general economic interest. The EU continuously produces legislation on the internal (ii) The other Community policies integrated into the EEA market and related policies, legislation that naturally must are: be extended to the three EFTA states so that the EEA
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operates in an entirely homogeneous manner. The EEA decision of the Council and of the European Parliament Agreement therefore establishes a permanent (EP)), the EFTA countries are regularly informed and even incorporation mechanism. consulted. (a) Decisions on the incorporation of legislation Following the legislative decisions, the EFTA states are As new texts are adopted by the EU, these decisions are consulted again on the implementing measures for these taken by a Joint Committee, composed of representatives decisions taken by the European Commission. They are of the European Union and representatives of the three often invited to participate in the various committees that EFTA states, and meeting at regular intervals (once a assist the Commission in exercising its executive power month) to decide what proportion of the legislation and (‘comitology’) although they do not have any voting rights. more generally all Community acts (actions, programmes, Basically, the EFTA states clearly do not participate in the etc.) should be incorporated into the EEA; the legislation is European Union’s decision-making procedures themselves formally incorporated by including the acts in question in although many of these decisions apply to them more or the lists of protocols and annexes to the EEA Agreement. less automatically. That is the consequence of remaining In all, some 4 000 Community acts have been incorporated outside the EU. However, paradoxically, it means that with into the EEA Agreement since its entry into force. the EEA mechanism they have less sovereignty than they would if they were members of the EU. An EEA Council, made up of representatives of the EU Council and the Foreign Ministers of the EFTA states, meets 2. Monitoring the extension of Community legislation at least twice a year to provide a political incentive and to the EEA guidelines for the Joint Committee. Once the internal market legislation has been extended to (b) Transposition the EFTA countries, its correct transposition and application must be monitored. Given that these countries did not Once a Community act has been incorporated into the EEA have any mechanism for such monitoring, the EEA Agreement, it must be transposed into the national Agreement stipulated that EFTA would establish an legislation of the three EFTA countries, if the transposition is appropriate mechanism. This consists of: required according to their constitutional arrangements. It may take the form of a simple governmental decision or — a Surveillance Authority, may require parliamentary approval. — an EFTA Court. (c) Nature of the mechanism These bodies play the same role as the European The mechanism gives the impression that the extension of Commission and the Court of First Instance and the Court Community acts concerning the internal market to the of Justice respectively within the European Union in EFTA states must be assessed by those states, initially in the ensuring that the EFTA members of the EEA respect the form of a decision to incorporate the legislation by the rules in question. Joint Committee and then in the form of a national decision on transposition. In reality, these decisions are Role of the European Parliament essentially formal in nature: the Community legislation must be extended to these states; they do not have any Although irst and foremost an international treaty, the EEA choice. The Association Agreement also requires the Joint Agreement revolves around extending Community Committee to decide as quickly as possible so that the act legislation to the partner countries. Both the EP and the in question may be applied more or less simultaneously in national parliaments of the partner countries are therefore the Union and in the three countries; the only margin for closely involved in monitoring its functioning. Under Article assessment is the possibility of purely technical 95 of the agreement, an EEA Joint Parliamentary adjustments. Committee (JPC) was established and tasked with contributing, through dialogue and debate, to a better Provisions have been established to involve the EFTA understanding between the Community and the EFTA countries in the preparation of Community acts. Thus, the States in the ields covered by the EEA Agreement. The JPC representatives of these countries are invited, on an equal meets twice a year, with the EP and the EFTA parliaments footing with their counterparts in the EU Member States, to taking turns in hosting the meeting. Originally established take part in the written and oral consultations, and at times as a 66-member body (33 MEPs and 33 EFTA MPs), it was in the work of the standing committees set up for this agreed by mutual consent following the accession to the purpose by the European Commission. EU in January 1995 of Austria, Finland, and Sweden, to Even at the stage of the Community decision-making reduce the component delegations to 12 members each. procedure (Commission proposal, consideration and The chair alternates annually between an MEP and an MP
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01_2006_4661_txt_EN.indd 441 30-10-2007 14:55:51 from one of the EFTA states. Parliamentarians from the Committee, issued in accordance with Article 94(4) of the Swiss Federal Assembly attend the meetings as observers. EEA Agreement, on the functioning and the development All EC legislation applying to the EEA, as well as its of the agreement. At each of its meetings, the JPC has had implementation, is subject to scrutiny by the EEA JPC, and discussions with representatives of the EEA Council of members of the EEA JPC have the right to put oral and Ministers, the EEA Joint Committee, and the EFTA written questions to the representatives of the EEA Council Surveillance Authority (ESA). and the EEA Joint Committee. The EEA JPC expresses views in the form of reports or resolutions, as appropriate. In g Stefan SCHULz particular, it examines the Annual Report of the EEA Joint 11/2005
6.3.3. The European Neighbourhood Policy (ENP)
Legal basis up four ‘Common Policy Spaces’. The EU has no formal Title V of the EU Treaty on the Common Foreign and relations with Belarus or Libya. Until this has changed, the Security Policy (CFSP). The Treaty establishing a Constitution ENP will be applied in a diferent and much reduced way to for Europe includes a speciic article (I-57) on the Union and these countries. its neighbours. Achievements Objectives A. The emergence of the ENP and its geographic scope To contribute to increased stability, security and prosperity Discussions on what would become the ENP, but was of the EU and its neighbours to the East and South, in initially referred to as the Wider Europe — New particular by ofering the countries covered an increasingly Neighbourhood Initiative, began in early 2002. The starting close relationship with the EU, and to prevent the point was the observation that the EU enlargement in 2004 emergence of new dividing lines between the enlarged EU would have signiicant efects on the countries on the and its neighbours. The policy is based on commitments to other side of the new external borders of the EU in the East. common values, including democracy, the rule of law, It was argued that negative efects would have to be good governance and respect for human rights, and the prevented or mitigated and that the potential to develop principles of market economy, free trade and sustainable mutually beneicial cooperation with the new neighbours development, as well as poverty reduction. should be exploited. The reasoning on security behind the European In November 2002, the Council invited the Commission Neighbourhood Policy (ENP) is also relected in the and the High Representative for the CFSP to prepare European Security Strategy ("6.1.3, point E). This strategy proposals. The European Council the next month made identiies the building of security in the neighbourhood of clear that the southern Mediterranean countries should the EU as a key strategic objective, mentions diferent also be included in the initiative. Candidate and potential challenges in this regard and states that the creation of candidate countries (the latter referring to the countries of new dividing lines should be avoided. the western Balkans, "6.4.1) remained outside, and the The ENP covers six eastern European countries which do absence of an EU membership perspective emerged more not at present have any EU membership perspective, clearly as a selection criterion. notably Ukraine, Moldova, Belarus, Georgia, Armenia and The general character of the new policy was laid out in a Azerbaijan; as well as 10 countries in North Africa and the Commission communication presented on 11 March 2003 Middle East which also participate in the Barcelona process: (COM(2003) 104 inal). The policy should, according to Morocco, Tunisia, Algeria, Libya, Egypt, Israel, the Palestinian formulas used in the debate by the then President of the Authority, Jordan, Syria and Lebanon. European Commission, Mr Romano Prodi, be aimed at Russia has chosen not to participate, and EU–Russia creating ‘a ring of friends’ and these should ultimately be relations are now instead centred on a joint project to set ofered the opportunity to participate in ‘everything but the institutions’.
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The latter formula was, however, criticised from diferent Investment Bank (EIB). Russia and recently also Ukraine, directions. Council conclusions of 16 January 2003 on the Moldova and Belarus have recently been included in the objectives of the policy and the incentives the EU should EIB’s external lending mandate, but the sum available for ofer did not hold out any similar prospect, but still them is only a fraction of that for the southern neighbours. envisaged deeper cooperation in a broad range of areas. At The Commission has presented a proposal for a revision of the same time, the Council accepted the Commission’s the lending mandate, with an increase for the eastern proposal to make bilateral action plans the core element of neighbours and inclusion of Georgia, Armenia and the policy. Azerbaijan. Following the ‘Rose Revolution’ in Georgia in the end of C. Current status 2003 and calls from the EP to include Georgia, Armenia and With the Commission in the lead and the Council providing Azerbaijan in the ENP, the Council took a decision to this guidance, action plans are prepared and in efect efect in June 2004. Council conclusions of 14 June 2004 negotiated with the neighbouring countries. The action also elaborated on the value base of the ENP and the status plans are then adopted by the Commission, endorsed by of Belarus, Libya and Russia in relation to it. the Council and approved by the relevant Cooperation or B. Instruments Association Council (the leading joint body set up under The ENP builds on the Partnership and Cooperation the PCAs and Euro-Med Agreements, respectively). Agreements (PCAs) and Euro–Mediterranean Association Parliament is not consulted at any stage. Agreements that have been concluded with most of the In September 2006, actions plans for Ukraine, Moldova, countries covered. The ENP does not presuppose the Morocco, Tunisia, Jordan, Israel and the Palestinian introduction of any new type of agreement with countries Authority had been adopted. Adoption of action plans for covered, but the introduction of neighbourhood Georgia, Armenia and Azerbaijan were planned for early agreements has been mentioned by the Commission as a October 2006. An action plan with Lebanon was agreed in possibility in the future, which Parliament has welcomed. June 2006 and negotiations on such a plan for Egypt are As mentioned above, the core instrument of the ENP is conducted. Preparation of an action plan for Algeria had bilateral action plans. The preparation of an ENP Action Plan begun. A irst review of the implementation of the action presupposes that a PCA or Euro–Med Agreement has plan for Ukraine (which was inalised before the ‘Orange entered into force. Each ENP Action Plan lists a number of Revolution’ in this country) was carried out by the objectives and concrete measures to take in the context of Commission in spring 2006 and showed that Ukraine had political and economic reform. In this regard, they made good progress in many areas. Reports on the somewhat resemble the accession partnerships which implementation of the seven action plans irst adopted support candidate countries’ reforms and preparations for were due to be presented on 6 December 2006. EU membership, although the EU ofers no membership perspective and there is no separation into short and Role of the European Parliament medium-term objectives. Parliament adopted a resolution on the ENP on 19 January The implementation is monitored by committees set up 2006. It broadly supported the ENP, as it is being developed under the respective agreement. Within two years of the by Council and the Commission, but also called for the adoption of an action plan, a irst review of its creation of a multilateral framework in which cross-cutting implementation will be carried out. The basis for this will be issues and the overall future of the ENP should be a report prepared by the Commission, with input from the discussed (paragraph 20 of the resolution). Future High Representative for the CFSP as well as from the Neighbourhood Agreements should encourage ‘step-by- relevant country. step progress towards full access to the internal market and The EU provides support for the countries covered by the participation in the Common Foreign and Security Policy ENP, including for their reform eforts, through the TACIS (CFSP)’, while also allowing close cooperation in the ield of technical assistance programme (eastern neighbours) and justice and home afairs (paragraph 8). Financial aid should the MEDA programme (southern neighbours). A new be given to ENP countries, including for measures in assistance programme called the European relation to the internal market and the CFSP. Neighbourhood and Partnership Instrument (ENPI) is due As regards the relationship between the ENP and EU to replace these programmes from 2007. enlargement, the resolution stated that ‘the possibility of The southern neighbours also beneit from considerable membership of the EU must remain the ultimate incentive loans on favourable conditions from the European for all European countries to follow the common European ideals and participate in the European integration process’
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01_2006_4661_txt_EN.indd 443 30-10-2007 14:55:51 and that action plans ‘should serve as a tool towards relationship with the EU’ and added that ‘it is up to all achievement of the goals of potential EU membership for countries with recognised membership prospects to join those countries that are eligible and ever closer partnership this multilateral framework as an intermediate step towards for the other countries included’ (paragraphs 34 and 17, full membership’ (paragraph 10). respectively). At the same time, the resolution mentioned A regulation setting up a European Neighbourhood and that the EU’s ‘absorption capacity’ is one of the criteria for Partnership Instrument (ENPI), replacing the TACIS and EU membership and that ‘the Nice Treaty is not an MEDA programmes for the ENP countries, will be adopted acceptable basis for further decisions on the accession of by Parliament and Council under the co-decision any more new Member States’ (recitals H and paragraph 4, procedure. respectively). When consulted on a revision of the EIB’s external lending In a resolution on the EU’s enlargement strategy adopted mandate, Parliament supported the extension to Ukraine, on 16 March 2006, Parliament returned to several of the Moldova and Belarus proposed by the Commission and issues just mentioned, stressing the importance of the EU’s advocated a bigger envelope for these countries. absorption capacity and requesting the Commission ‘to Parliament also considered that preparations for the submit a report by 31 December 2006 setting out the inclusion of Georgia, Armenia and Azerbaijan in the next principles which underpin this concept’ (paragraph 5). lending mandate should start. Parliament called on the Commission and the Council ‘to submit, for all European countries currently without membership prospects, proposals for a close multilateral g Dag SOURANDER 09/2006
6.4. Relations with certain countries and regions
6.4.1. The Western Balkan countries
Legal basis conlicts changed the situation entirely. The EU’s political, Title V of the Treaty on European Union (EUT) trade and inancial relations with the region focused on crisis management and reconstruction, relecting the Articles 133 and 310 of the EC Treaty. countries’ emergency needs at that time. The EU’s assistance programmes were substantial, totalling some Objectives EUR 5 500 million. As the region emerged from this diicult To bring peace, stability and economic development to the period, a more long-term approach to development was region and open up the prospect of integration into the EU. required. At the EU’s initiative, the Stability Pact for South Eastern Europe (involving the countries of the western Achievements Balkans, other countries of the region, the EU and several other countries, international inancial institutions and A. Approach to the region as whole regional initiatives) was adopted on 10 June 1999 in 1. Until 1999 Cologne. The former Yugoslavia beneited from a cooperation 2. The Stabilisation and Association Process agreement with the EU since 1980. In June 1990 the As its main contribution to the Stability Pact, the EU Commission proposed measures to improve relations, but launched the Stabilisation and Association Process for the the break-up of the country in 1991 and the various countries of the western Balkans (SAP) in 1999. It
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established a strategic framework for their relations with B. Relations with the individual countries of the region the EU, combining a new contractual relationship 1. Albania (Stabilisation and Association Agreement (SAA)) and an There were no relations between the EU and Albania until assistance programme (CARDS). The SAP is both bilateral the irst contacts in 1980 following the collapse of and regional, creating strong links between each country communism. Current relations are based on a non- and the EU as well as encouraging cooperation between preferential agreement on trade and economic the countries themselves and their neighbours in the cooperation, which entered into force in December 1992. region. Stabilisation and association agreements are legally Albanian attempts to enhance its contractual relationship binding international agreements, which after signature with the EU in 1995 and 1999 failed due to the insuicient require European Parliament (EP) assent and ratiication by preparedness of the country. the parliament of the country concluding the agreement as well as by all EU Member State parliaments. They require Albania has been participating in the Stabilisation and respect for democratic principles, human rights and the Association Process from the beginning, and negotiations rule of law; they foresee the establishment of a free trade on a draft Stabilisation and Association Agreement (SAA) area with the EU and they set out rights and obligations in began in early 2003. By summer 2005 agreement in areas such as competition and state aid rules, intellectual principle had been reached on most elements of the text property and establishment, which will allow the of the draft agreement and a completion of negotiations is economies of the region to begin to integrate with that of expected by end 2006. However, the European the EU. So far, stabilisation and association agreements with Commission made clear that Albania would need to ensure two countries (former Yugoslav Republic of Macedonia, and tangible achievements on European partnership priorities Croatia) have entered into force. SAA negotiations with in the ields of rule of law, land ownership, human rights, Albania should conclude in the near future, while they have media freedom and customs before the Commission could started with Serbia and Montenegro and Bosnia and recommend the conclusion of the agreement. As regards Herzegovina. the 2005 parliamentary elections, the European Commission, based on OSCE/ODIHR assessment, saw a The CARDS programme underpins the objectives and number of improvements compared with previous mechanisms of the SAP. As each country moves deeper elections. Despite shortcomings, these parliamentary into the process, assistance has moved from rebuilding elections were fundamentally valid and led to a smooth infrastructure and fostering reconciliation, towards change of government. developing government institutions and legislation, and gradual approximation with European norms and 2. Bosnia and Herzegovina (BiH) eventually harmonisation with the EU acquis. Financial Since the Dayton/Paris Peace Agreement in 1995 brought support is directed at reinforcing democracy and the rule the war in Bosnia and Herzegovina to an end, the EU has of law, human rights, civil society and the media, and the participated fully in the country’s reconstruction. BiH has operation of a free market economy. In addition, assistance beneited from autonomous trade preferences since 1996, is ofered to help generate sustainable economic recovery, but institutionalised contacts with the EU started only in and promote social development and structural reform. June 1998. With the introduction of the SAP in 1999, BiH Promoting regional cooperation between the western also became a participant. In order to identify the most Balkan countries as well as between the region and EU important issues for the country under the SAP, the EU Member States and candidate countries is a further major published a roadmap, setting out 18 basic steps. This objective of CARDS. roadmap was substantially completed in September 2002, and a November 2003 European Commission feasibility For the period 2000–06, CARDS assistance to the western study for the negotiation of a Stabilisation and Association Balkans amounts to about EUR 5 billion. The European Agreement identiied the subsequent priorities for the Councils in Feira and Nice (June and December 2000) country. explicitly recognised the role of the countries of the western Balkans (Albania, Bosnia-Herzegovina, Croatia, Bosnia and Herzegovina has, in the meantime, made Federal Republic of Yugoslavia, Former Yugoslav Republic of signiicant progress on most of the priorities identiied in Macedonia) as potential candidates for EU membership the feasibility study. However, Bosnia and Herzegovina’s and spoke of a clear prospect of accession once the achievements have been, so far, mainly of a legislative relevant conditions had been met. nature. BiH will need to increasingly focus on ensuring efective implementation and enforcement of the adopted In November 2000, the EU unilaterally granted almost laws. Nevertheless, in October 2005, the European totally free access to its markets for goods from the Balkans. Commission recommended to the Council the opening of
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01_2006_4661_txt_EN.indd 445 30-10-2007 14:55:51 SAA negotiations with Bosnia and Herzegovina. 4. Serbia and Montenegro Negotiations started on 25 January 2006. Economic and trade relations were subject to an embargo Bosnia and Herzegovina has been an increasing focus of EU for a long while, but had both resumed in some areas, political interest, especially in relation to CFSP and ESDP when the Kosovo crisis led to the restoration of economic measures. The irst operation under the European Security and inancial sanctions and to NATO intervention in 1999. and Defence Policy (ESDP) started in Bosnia-Herzegovina The end of the bombing and the Serb withdrawal from on 1 January 2003, when the European Union Police Kosovo on 21 June 1999 resulted in deployment of the Mission (EUPM) took over from the UN’s International Police NATO Kosovo Force KFOR and the establishment of the UN Task Force. Interim Administration in Kosovo (UNMIK). Following the democratic change in the former Federal Republic of In June 2004, the Council adopted a joint action on an EU Yugoslavia (FRY) in October 2000, the EU re-established military operation in the country (EUFOR/Althea). This relations with the Belgrade administration and quickly lifted decision led to the deployment of troops in December most sanctions. With efect from 1 December 2000, the EU 2004. Also in June 2004, the European Council adopted a included the FRY in the liberalised EU preferential trade comprehensive policy with regard to Bosnia and regime for the region. The FRY also became a full Herzegovina as one of the European Security Strategy’s participant in the Stabilisation and Association Process. initial implementation priorities. The mandate of the EU Special Representative (EUSR) to the country, whose role is The FRY formally ceased to exist on 4 February 2003 and to ‘ofer the EU’s advice and facilitation in the political was replaced by the new Union of Serbia and Montenegro. process and to promote overall political coordination’, has On 3 October 2005 the Council decided to open been extended until the end of February 2006. negotiations for a Stabilisation and Association Agreement 3. Croatia (SAA) with Serbia and Montenegro. In line with the so- Since the dissolution of the Socialist Federal Republic of called twin-track approach, negotiations — oicially Yugoslavia and until 2001, there were no global contractual opened on 10 October 2005 — have been held with the relations between Croatia and the EU because of the war state union or the republics according to the division of and the country’s failure to meet the requirements of competences. Negotiations have been, however democracy. Croatia was granted trading preferences on a suspended in early May 2006 following the repeated failure unilateral basis. Financial cooperation was limited to of Serbia to deliver key ICTY indictee Radko Mladic. humanitarian assistance, support for democratisation and, Following the positive referendum on independence in from 1996, reconstruction assistance. After the change of Montenegro, on 21 May 2006, the follow-up on separate government in 2000, Croatia broke out of the international SAA negotiations will have to be decided by the Council isolation which the policy of the former government had during 2006. caused, and became fully engaged in the SAP. In October 5. Serbia and Montenegro/Kosovo 2001, Croatia signed a Stabilisation and Association On 7 October 2005, UN Secretary-General (UNSG) Koi Agreement with the EU, which entered into force on 1 Annan recommended to the UN Security Council to launch February 2005. An interim agreement was signed in the process to determine the future status of Kosovo. This parallel, allowing the trade and trade-related matters of the recommendation was delivered with the report from SAA to enter into force on 1 January 2002. Ambassador Kai Eide that concluded that despite On 21 February 2003, Croatia, the irst country of the corruption and pervasive ethnic tension, enough progress western Balkans to do so, submitted a formal request for EU had been made in creating the institutions to make a membership. Following a positive opinion and government work in Kosovo and that therefore it would be recommendation by the European Commission of April very unwise to stop the political momentum. The Security 2004, the December 2004 European Council decided that Council endorsed the UNSG’s intentions. UNSG Annan accession negotiations would be opened on 17 March appointed the former Finnish President, Martti Ahtissari, as 2005 provided that Croatia cooperated fully with the UN his special representative to oversee the process. Kosovo International Criminal Tribunal for the former Yugoslavia in status talks have started in February 2006 in Vienna. The Hague (ICTY). However, the Council concluded in While there is no common EU position on the preferred March 2005, as the Chief Prosecutor of The Hague Tribunal outcome of the inal status discussions, there is consensus had done, that Croatia was not fully cooperating with ICTY. that Kosovo will not return to the pre-1999 situation. The As this last remaining obstacle was later judged to be EP’s main concern would be that the status discussions removed, accession negotiations with Croatia were formally take full account of Kosovo’s European perspective and that opened on 3 October 2005. the inal settlement allows Kosovo to fully participate in
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and beneit from the EU’s Stabilisation and Association Role of the European Parliament Policy, so as to facilitate its long-term political stability and The EP had initially set up a delegation for South-East socio-economic development. Europe, responsible for all the countries of the western 6. Former yugoslav Republic of Macedonia (FyROM) Balkans and regularly sending parliamentary observers The country declared independence from the collapsing when elections took place in the region. With the entering Yugoslav federation in September 1991. A irst trade and into force of the Stabilisation and Association Agreements cooperation agreement with the EU entered into force in with the former Yugoslav Republic of Macedonia, and January 1998. In April 2001, FYROM was the irst country of Croatia, Joint Parliamentary Committees between the EP the region to sign an SAA. The agreement entered into and the partner country parliaments were set up in early force in April 2004. An interim agreement was signed in 2005 as institutions under the agreement. Since the EP April 2001, which allowed the trade and trade-related elections in 2004, the new EP Delegation for relations with matters of the SAA to enter into force on 1 June 2002. the countries of South-East Europe will be the forum for interparliamentary dialogue and contacts with the other FYROM faced a serious political crisis in 2001, due to a countries, i.e. Albania, Bosnia and Herzegovina (BiH) and violent insurgency, which led to the deployment of a NATO Serbia and Montenegro (including Kosovo). mission. International military presence was assured by NATO until 31 March 2002, when the EU took over from Parliament considered that the Stability Pact, initiated in NATO with its irst-ever military peacekeeping mission. June 1999 and accompanied by the EU’s SAP, was decisive in fostering peace and democracy in the region. It also The former Yugoslav Republic of Macedonia applied for approved the overhaul of the inancial aid arrangements membership of the European Union in March 2004. The for the countries of the western Balkans (the CARDS European Commission adopted its opinion on this programme). It gave its assent to the SAAs concluded with application on 9 November 2005, noting substantial Croatia and FYROM. progress by the country. Following the European Commission’s recommendation, the European Council The EP has often highlighted the need for respect for decided on 17 December 2005 to grant candidate status to democracy, the rule of law and the rights of minorities in the country. No start date for accession negotiations has the region. It has insisted on full and efective cooperation been proposed or indicated yet by Commission or Council. of the countries concerned with the International Criminal Priorities in political, legislative, institutional and economic Tribunal for the Former Yugoslavia, the efective reforms have been identiied in a European partnership implementation of a policy in favour of the return of adopted by the Council on 30 January 2006. refugees and an active policy against organised crime and corruption. Accession negotiations will not start until the country has reached a suicient degree of compliance with the accession criteria. The latter is to be reassessed by the g Karsten MECKLENBURG Commission again at the end of 2006. 05/2006
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Legal basis external security and a space of research and education, Title V of the EU Treaty, Articles 300 and 133 of the EC including cultural aspects, as agreed in the St Treaty, Regulation (EC, Euratom) No 99/2000 of 29 Petersburg summit in May 2003, are in the inal stages December 1999 for the provision of assistance to the for implementation. partner countries in eastern Europe and Central Asia. — Russia is also party in the Northern Dimension which includes the EU, Norway, Iceland, Canada and the Objectives United States for implementing projects in the ield of environmental protection and public health. EU/EC relations with the Russian Federation are based on the Partnership and Cooperation Agreement (PCA), as well — In order to facilitate Russia’s integration into the global as on a CSFP Common Strategy, aimed at strengthening economy, the EU granted Russia full market economy the strategic partnership with Russia and addressing status in May 2002. common challenges on the European continent. — The main diference relates to the Chechnyan issue: it was addressed once again at the November 2002 Achievements summit. A. Partnership and Cooperation Agreement — The other delicate topic is the enclave of Kaliningrad; a The PCA provides for trade liberalisation and closer partial solution was, however, found at the November relations. The Russia CSP was adopted by the Commission 2002 summit involving multiple visas at a low cost. This on 27 December 2001 and provides the strategic did not cover the transit of goods for which a diferent framework within which EC assistance will be provided for solution was sought. the period 2002–06. B. Economic relations — The Partnership and Cooperation Agreement with While the EU is Russia’s main trading partner, it has a huge Russia entered into force on 1 December 1997. trade deicit with this country, originating mainly in its — In the same vein and on the basis of Article 13 of the dependence on energy supplies from Russia. The EU has Treaty on European Union, the Council adopted on 14 thus an important strategic and economic interest in June 1999 a common strategy which gave priority to Russia’s development. The case for closer EU–Russia four areas of action: relations will be even greater after enlargement. — consolidation of democracy, rule of law and public C. Aid institutions in Russia; Since 1991, EC technical assistance has been one of the — integration of Russia into a common European leading programmes supporting the transition process in economic and social space; Russia. More recently, EC assistance has been refocused on — cooperation to strengthen stability and security in a limited number of areas, in order to support institutional Europe and beyond; reforms in Russia and achieve a systemic impact in key socio-economic ields linked to the PCA implementation — common challenges on the European continent. process. This assistance is complemented by other EC — The Council has adopted an action plan for common instruments, such as the European Initiative for Democracy action with Russia to combat organised crime. and Human Rights, humanitarian aid in Chechnya and — Since 2000, EU–Russia summits have been held twice a cooperation in science and technology. Increased year. In May 2002, the inal statement highlighted the coordination at all levels is also been sought with the EU need for greater cooperation in the ight against Member States, the international inancial institutions and international terrorism. other major donors. — Two major economic projects currently in the ield of energy partnership as agreed in the London summit of Role of the European Parliament October 2005 and the roadmap for a common In many of its resolutions the European Parliament (EP) has economic space, a common space of freedom, security stressed the importance of Russia’s further democratisation, and justice, a space of cooperation in the ield of especially in terms of free and fair elections, freedom of the
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media, respectful treatment of non-governmental economic and security structures are interrelated organisations, adherence to fundamental principles in processes. relation to rule of law, declaring its belief that Russia’s possible integration into more comprehensive political, g Maria EFTHyMIOU 11/2006
6.4.3 The South Caucasus (Armenia, Azerbaijan, Georgia)
Legal basis international law and human rights [...] constitute essential Title V of the EU Treaty on the common foreign and security elements of partnership and of this agreement’. If either policy (CFSP), Article 300 of the EC Treaty (international party considers that the other party has failed to fulil an agreements). obligation under the agreement, it can ‘take appropriate measures’ (including suspending the application of the agreement or a part of it). Objectives To stimulate the countries of the region to carry out B. Trade political and economic reforms, contribute to the The EU is by far the most important trading partner for all settlement of conlicts and facilitate implementation of the countries of the region. The most important such settlement, support intra-regional cooperation and component of the trade is energy exports from Azerbaijan develop the countries’ relations with the EU. to the EU. Oil exports are increasing, as a result of the opening in 2005 of the Baku–Tbilisi–Ceyhan (BTC) oil Achievements pipeline, which connects the Caspian Sea with the Mediterranean. A largely parallel Baku–Tbilisi–Erzurum (BTE) A. Partnership and cooperation agreements pipeline was completed in autumn 2006. A partnership and cooperation agreement (PCA) with each of the countries of the South Caucasus was negotiated in C. Aid the mid-1990s and signed in 1996. The three agreements The three countries receive technical assistance through entered into force on 1 July 1999. They were concluded for the EU’s TACIS programme, conceived shortly after the an initial period of 10 years and therefore expire in 2009, dissolution of the Soviet Union and covering the unless the parties agree to extend their period of Community of Independent States (CIS) region. Following application. the Rose Revolution in Georgia, the assistance to this country was doubled. Macro-inancial assistance is given to The PCAs with the South Caucasian countries are similar to Armenia and Georgia, and all of the three countries are those concluded with other eastern European and central eligible for some funding for the promotion of democracy Asian states which emerged in connection with the and human rights under the EU’s European Initiative for dissolution of the Soviet Union in 1991. They provide for Democracy and Human Rights (EIDHR) programme in trade liberalisation, economic cooperation and cooperation 2006. The EU has supported reform of the criminal justice in various other areas, including prevention of crime and system in Georgia through an innovative ‘rule of law illegal migration. Joint bodies, including a Cooperation mission’ called Eujust Themis. It provides funding for Council at ministerial level and a Parliamentary Cooperation economic rehabilitation programmes in the breakaway Committee, ensure a regular political dialogue. The regions of South Ossetia and Abkhazia in Georgia with a implementation of the agreement is supported also by view to facilitating the return of refugees and internally committees bringing senior oicials and experts together. displaced persons to these regions and to facilitate The preamble of each agreement recognises that support peaceful resolution of these conlicts. for the independence, sovereignty and territorial integrity From the beginning of 2007, the TACIS programme should of the respective country will contribute to the be replaced by a new European Neighbourhood and safeguarding of peace and stability in Europe. Article 2 Partnership Instrument (ENPI). A proposal has been states that ‘respect for democracy, principles of
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01_2006_4661_txt_EN.indd 449 30-10-2007 14:55:52 presented by the European Commission, and the ENPI would step up its engagement, the region was not covered regulation will be adopted by the Council and the by the European neighbourhood policy (ENP) until the European Parliament (EP), applying the co-decision Rose Revolution in Georgia and calls by the EP convinced procedure. the Council of the strength of the case for extending the geographical scope of this policy. The decision to include D. The common foreign and security policy in relation the South Caucasus was taken in June 2004. to the South Caucasus In 2003, the EU Council appointed a special representative The main element of the ENP is bilateral action plans (see for the South Caucasus: Mr Heikki Talvitie. In 2006, he was also the fact sheet on the European neighbourhood succeeded by Mr Peter Semneby. The special representative policy). Action plans for each of the countries in the South contributes to the implementation of the EU’s policy Caucasus were due to be agreed in October 2006. objectives in the region, described above. Following a Russian veto hindering the continuation in 2005 of an OSCE Role of the European Parliament mission which earlier monitored the border between Before the PCAs were concluded, the EP gave its assent, as Russia and Georgia, small-scale support to the Georgian required for ‘agreements establishing a speciic institutional Border Guard is provided through the special framework by organising cooperation procedures’ representative. according to Article 300(3) (ex Article 228), of the EC Treaty. The EU and its special representative do not so far directly Both the inclusion of the South Caucasus in the ENP and participate in mediation in relation to conlicts within the the appointment of an EU special representative for the region (over the Nagorno-Karabakh and adjacent Azeri region were preceded by calls from the EP for these lands occupied by Armenian forces and over Abkhazia and measures to be taken. Major resolutions on the South South Ossetia). Caucasus adopted in 2003 and 2004 also called for greater eforts to promote conlict resolution and stability in the E. The European neighbourhood policy region, including through a stability pact, drawing lessons The EU’s mainly eastward enlargement in 2004 has from the Stability Pact for South-Eastern Europe. considerably reduced the distance between the Union and the South Caucasus, and the coming accession of Romania The EP regularly participates in election observation, most and Bulgaria will give the EU a coastline on the Black Sea, recently of the parliamentary elections in Azerbaijan on 6 opposite that of Georgia. This contributes to the rising EU November 2005. interest in the region. In spite of this and of Council conclusions on the South g Dag SOURANDER Caucasus of 27 February 2001 according to which the EU 09/2006
6.4.4 Central Asia
Legal basis particular by improving the climate for trade and Title V of the EU Treaty on the Common Foreign and investment and energy supplies; foster respect for Security Policy (CFSP); Articles 300 (international democratic principles and human rights and promote agreements) and 133(3), (speciically on international trade transition towards a market economy; promote good agreements) of the EC Treaty. relations between the countries of Central Asia and the EU.
Objectives Achievements To promote the stability and security of the countries of A. General Central Asia, addressing sources of political and social In the aftermath of the 11 September 2001 terrorist attacks tensions; help these countries to achieve sustainable in New York and Washington, much attention was focused economic development and poverty reduction, in on Afghanistan, but also on the lack of stability and the
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presence of extremist Islamic groups in the neighbouring elements of partnership and of this agreement’. If either Central Asia region. This led to a re-evaluation of the party considers that the other party has failed to fulil an importance of EU engagement in Central Asia. Council obligation under the agreement, it can ‘take appropriate conclusions of 10 December 2001, which continue to measures’ (including suspending the application of the provide a basis for the EU’s policy, stated that lasting agreement, or part of it). stability and security can only be achieved through continuing reform and that it is important to tackle the root C. Trade causes of terrorism and conlict in the region by supporting From the EU perspective, the EU trade with the Central eforts to improve governance and to reduce poverty. The Asian countries is only marginal. The share of total EU level of funding to the Central Asian countries, which was imports is 0.1 % or lower for all of the countries, with the very modest at the time, was doubled. After a small further notable exception of Kazakhstan. Energy imports from increase, it now tops EUR 60 million per year. Kazakhstan and exports of various goods to it are now booming, with more than a 44 % increase in total imports The human rights situation in some of the countries gives from Kazakhstan in 2005. strong cause for concern. Mass killings of demonstrators in the Uzbek town of Andijan in May 2005 provoked From the perspective of the Central Asian countries, trade international protests and calls inter alia from the EU for an with the EU is very signiicant indeed. The EU is the most independent international investigation. In October 2005, important trading partner for Kazakhstan and Tajikistan and the Uzbek government’s continued refusal to agree to this the second most important for Turkmenistan and prompted the EU to introduce an embargo on exports to Uzbekistan. the country of arms and military equipment and to D. Aid suspend all bilateral meetings at technical level. The The Central Asian countries receive technical assistance sanctions were due to be reviewed in autumn 2006. through the EU’s TACIS programme, conceived shortly after B. Partnership and cooperation agreements the dissolution of the Soviet Union and covering the Partnership and cooperation agreements (PCAs), similar to Community of Independent States (CIS) countries. Much of those with eastern European countries, were concluded with the assistance has the related objectives of improving Kazakhstan, Kyrgyzstan and Uzbekistan in the mid-1990s and border management and combating drugs smuggling. This entered into force on 1 July 1999. Negotiations on PCAs with is important for stability in the region and also for reducing the two other countries of the region, Tajikistan and the low of drugs to the EU. TACIS aid is also aimed at Turkmenistan, were concluded in 1998 and 2004 respectively. supporting poverty reduction in the poorest countries. The ratiication process for the Turkmenistan agreement was Macro-inancial assistance is given to Tajikistan. All of the subsequently blocked by the European Parliament (EP/ countries are eligible for funding for the promotion of Parliament), due to large-scale human rights violations in the democracy and human rights under the EU’s European country. Interim agreements covering the trade aspects of Initiative for Democracy and Human Rights (EIDHR) the PCAs and not requiring ratiication by the Member States programme. have been prepared. The interim agreement with Tajikistan The TACIS programme will, as far as the Central Asian entered into force in May 2005. The EP’s International Trade countries are concerned, be replaced by a new Committee in spring 2006 prepared a report with a draft development cooperation and economic cooperation resolution supporting the conclusion of the interim instrument (DCECI) in the beginning of 2007. The DCECI agreement with Turkmenistan. Following a strong reaction regulation will be adopted by the Council and the EP, inter alia from human rights organisations, the report was put applying the co-decision procedure. Limited funding from on hold and in September 2006, it remained unclear when the European Neighbourhood and Partnership Instrument the plenary would deal with it. (ENPI), which is to replace TACIS elsewhere, may become The PCAs provide for trade liberalisation, economic possible for speciic projects or programmes of a global, cooperation and cooperation in various other areas. Joint regional or cross-border nature. bodies, including a cooperation council at ministerial level E. The common foreign and security policy in relation and a parliamentary cooperation committee, ensure a to Central Asia regular political dialogue. The implementation of each In July 2005, the EU Council appointed a special agreement is supported also by committees bringing representative for Central Asia. His task is to promote good together senior oicials and experts. and close relations between the countries of this region Article 2 states that ‘respect for democracy, principles of and the EU, contribute to the strengthening of democracy, international law and human rights [...] constitute essential rule of law, good governance and respect for human rights
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01_2006_4661_txt_EN.indd 451 30-10-2007 14:55:52 and fundamental freedoms in Central Asia and enhancing interim agreement with Turkmenistan. It is also likely to the EU’s efectiveness in the region. The latter should be decide whether or not to give its assent to the conclusion achieved inter alia through closer coordination with other of the PCA with Tajikistan. relevant partners and international organisations, such as Parliament has on many occasions expressed concerns in the Organisation for Security and Cooperation in Europe relation to human rights violations in Central Asian (OSCE). The irst Special Representative for Central Asia, Mr countries — including the mass killings in Andijan, Ján Kubiš, resigned in July 2006, after having been Uzbekistan, in May 2005 — and encouraged the Council appointed Foreign Minister of Slovakia. At the time of the and the Commission to emphasise the human rights inalisation of this fact sheet, a successor had not yet been aspect in relations with the countries. In addition to the appointed. meetings and other activities in the framework of the parliamentary cooperation committees set up with the Role of the European Parliament countries with which a PCA has entered into force, the EP Before the PCAs with Kazakhstan, Kyrgyzstan and has conducted election observation in some Central Asian Uzbekistan were concluded, the EP gave its assent, as countries. required for ‘agreements establishing a speciic institutional framework by organising cooperation procedures’ g Dag SOURANDER according to Article 300(3) (ex Article 228), of the EC Treaty. 08/2006 As mentioned above, it will in 2006 give its opinion on an
6.4.5. The Southern and Eastern Mediterranean countries
Legal basis The Euro–Mediterranean Conference of Ministers of Title V of the EU Treaty; Foreign Afairs, held in Barcelona on 27 and 28 November 1995, marked the starting point of the Euro–Mediterranean Articles 133 and 310 of the EC Treaty. Partnership, a wide framework of political, economic and social relations between the EU Member States and the 12 Objectives Mediterranean partners: Algeria, Cyprus, Egypt, Israel, In accordance with the guidelines laid down by the Jordan, Lebanon, Malta, Morocco, the Palestinian Authority, European Council at its meetings held in Lisbon (June Syria, Tunisia and Turkey. Libya has had observer status 1992), Corfu (June 1994) and Essen (December 1994), the since 1999. European Union decided to draw up a framework for In the Barcelona declaration, the Euro–Mediterranean relations with the countries of the Mediterranean basin partners established the three main objectives of with a view to establishing a partnership. cooperation: — the creation of a common area of peace and stability Achievements based on the principles of human rights and democracy A. Euro–Mediterranean partnership/Barcelona process through the reinforcement of political and security The end of East–West rivalry paved the way for a new dialogue (political and security chapter); North–South relationship. In parallel to the process of — the construction of a zone of shared prosperity through redeining its links with the eastern part of Europe, the EU the progressive establishment of free trade between the also reconsidered the policies towards its southern EU and its Mediterranean partners (2010) and amongst neighbours. The multitude of common concerns such as the partners themselves (economic and inancial trade, energy supply, migration, environment and terrorism chapter); created the need to strengthen the EU’s ties with its — the improvement of mutual understanding among the Mediterranean neighbours. The context of the mid-nineties peoples of the region and the development of a free was also marked by the Oslo agreements that were meant and lourishing civil society (social, cultural and human to lead to a solution of the Arab–Israeli conlict. chapter).
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The Euro–Mediterranean partnership comprises two enlargement of the EU with the initial partner countries complementary dimensions: Malta and Cyprus having joined as Member States; the — bilateral dimension: the EU carries out a number of opening of EU membership negotiations with Turkey, the activities bilaterally with each country. The most fallback into violence in the Middle East, the Iraq crisis, the important are the Euro–Mediterranean association widespread outbreak of terrorism and its impact on agreements which have entered into force with Algeria societies and inally the increasing importance of (2005), Egypt (2004), Israel (2000), Jordan (2002), controlling migration lows. In response to these changes, Lebanon (2006), Morocco (2000), the Palestinian the EU launched its European neighbourhood policy (ENP) Authority (1997 interim agreement), Tunisia (1998) and in 2004 to reinforce and complement the Barcelona Turkey (since 1996 a customs union is in force). With process ("6.3.3). In the EU’s assessment, however, the Syria the signature is still to be conirmed. Negotiations fundamental principles and values underlying the on the liberalisation of services and investment were Barcelona process still remain valid in essence, but the opened with interested Mediterranean partners; implementation of the process needs to be adjusted and enhanced in order to face current challenges. — regional dimension: regional dialogue represents one of the most innovative aspects of the partnership, At the celebration of the 10th anniversary of the Barcelona covering at the same time the political, economic and declaration in November 2005, the Euro–Mediterranean cultural ields. Regional cooperation has a considerable partners pledged their renewed commitment to the initial strategic impact as it deals with problems that are objectives of the process. They agreed on a ‘ive-year work common to many Mediterranean partners. programme’, which focuses on four ields of action: political and security partnership; sustainable socio-economic The MEDA programme is the EU’s principal instrument for development and reform; education and socio-cultural the implementation of the partnership. The programme exchanges and justice, security, migration and social ofers technical and inancial support measures to integration. They also adopted a ‘Euro–Mediterranean Code accompany the reform of economic and social structures in of Conduct on Countering Terrorism’ but failed to agree on the Mediterranean region. The EU Council, which together a deinition of ‘terrorism’. The code condemns terrorism in with the European Parliament (EP) comprises the all its forms and calls for an exchange of information about budgetary authority, decides the annual EU budget terrorist networks. allocation for MEDA and other regional budget lines. MEDA is to be replaced by the New Neighbourhood Instrument 2. Speciic results by 2007. (a) In the political and security ield — creation of information and training seminars for Euro– The Euro–Mediterranean Committee for the Barcelona Mediterranean diplomats; process is the multilateral ‘steering committee’. The Committee, which meets on a quarterly basis at senior — network of foreign policy institutes (EuroMeSCo); oicial level, is chaired by the EU presidency and consists of — adoption of a plan for the management of natural the representatives of EU Member States, Mediterranean disasters; partners and the European Commission. The Committee acts as an overall steering body for the regional process — cooperation on terrorism; with the right to initiate activities to be inanced in — the ight against organised crime; accordance with the MEDA programme. It also prepares for — measures in favour of nuclear non-proliferation; ministerial meetings, conferences, etc. — enhanced political dialogue including sub-committees The establishment of the Euro–Mediterranean on human rights set up with various countries under Parliamentary Assembly (EMPA) in December 2003, put the the association agreements; inishing touches to the Euro–Mediterranean partnership’s institutional framework. The assembly has added — Euro–Mediterranean human rights network. transparency and visibility to the Barcelona process and (b) In the economic and inancial ield strengthened its democratic accountability. — the MEDA regulation, the principal inancial instrument B. Development of the partnership of the partnership, was amended in November 2000 (MEDA II) introducing a more structured programming 1. General development approach; Ten years after its launch, the Barcelona process inds itself at a crossroads where a number of regional and — a substantial increase in the European Union’s inancial international parameters have changed: the 2004 assistance, consisting of Community budget resources,
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01_2006_4661_txt_EN.indd 453 30-10-2007 14:55:53 European Investment Bank assistance and individual Mediterranean partners. However, as a ‘joint assembly’, inancial contributions from the Member States, EMPA consists formally of two groups: 120 MPs from totalling EUR 5 350 million for the 2000–06 period; national parliaments of the Mediterranean countries and — on the basis of the 2000–06 budget allocation, tri- 120 from the European Union ‘of whom 75 are appointed annual national indicative programmes have been by national parliaments and 45 by the EP’. drawn up at national level. A regional programme The irst session of the EMPA was held in March 2005 in covers multilateral activities; Cairo. An extraordinary session took place in Rabat in — since 2003 the EIB is lending to Mediterranean partners November 2005 to celebrate the 10th anniversary of the through the Facility for Euro–Mediterranean Investment Euromed partnership. The second session of EMPA met in and Partnership (FEMIP); its transformation into a Euro– Brussels in March 2006. Mediterranean development bank is under discussion; Three parliamentary committees of 80 members each — as an important step towards regional economic prepare the work of the plenary in the partnership’s main integration the Agadir agreement for free trade policy areas: the Committee on Political Afairs, Security and between Egypt, Jordan, Morocco and Tunisia, which is Human Rights; the Committee on Economic, Financial and supported by a EU regional programme, was signed in Social Afairs and Education and the Committee on February 2004 but is still to be implemented; Improving Quality of Life, Exchanges between Civil Societies and Culture. In 2005, the EMPA decided to create an ‘ad hoc’ — network of economic research institutes (Femise). Committee on women’s rights in Euromed region. (c) In the social, cultural and human ield The EMPA plays a consultative role: — since the events of 11 September 2001, the dialogue — it provides parliamentary impetus, input and support for between cultures and civilisations has been the consolidation and development of the partnership; strengthened, including through the setting up of the ‘Anna Lindh Euro–Mediterranean Foundation for the — it expresses its views on all issues relating to the Dialogue between Cultures’ which is to promote partnership, including the implementation of the intellectual, cultural and civil society exchanges; association agreements; — the Euromed Heritage, Euromed Audiovisual, Eumedis — it adopts resolutions or recommendations, which are (develop information society) and Euromed Youth not legally binding, addressed to the Euro– programmes are now operating; Mediterranean conference. — the Euro–Mediterranean Civil Forum, which brings On the occasion of the 10th anniversary of the Barcelona together NGOs, trade unions and regional groups, process, the EP adopted the resolution ‘The Barcelona meets before each meeting of the Euro–Mediterranean Process revisited’ (October 2005). A main priority, according ministers and will be coordinated by the EuroMed Non- to this text, is the development of education and Governmental Platform constituted in April 2005 to add vocational training, with speciic attention to women and coherence to the Civil Forum activities and enhance underprivileged groups such as illiterate populations, civil society’s participation in the Barcelona process; female students and populations in rural and suburban areas. In order to increase prosperity, the FEMIP (EIB) should — programme for the cooperation in higher education be further developed, with an emphasis on micro-credit (Tempus). facilities. Cooperation should be encouraged in the ight against crime and terrorism, while ensuring the respect for Role of the European Parliament human rights. The EU and its Mediterranean partners The EP and a number of EP bodies (committees, should also increase their cooperation in the management delegations and the EP’s delegation to the EMPA) are of migration lows, while maintaining the principle of non- closely involved with the evolution of the Barcelona refoulement as laid down in the Geneva Convention and process and have been particularly proactive in promoting addressing root causes as well as negative efects of illegal the parliamentary dimension of the partnership, including immigration. On the issue of human rights, the EP through enhanced parliamentary election observation to considers that the clauses suspending Euromed association support the democratisation process in the partner agreements should be invoked in the case of violations of countries. human rights and democratic freedoms. The EMPA, the parliamentary institution of the Barcelona process, contains representatives of three delegations: from g Stefan KRAUSS the EP, EU national parliaments and parliaments of the 10 05/2006
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6.4.6. The Arabian Peninsula, Iraq and Iran
Legal basis cooperation on standards. However, it also covers trade, Title V of the EU Treaty (Common Foreign and Security agriculture and isheries, industry, energy, science and Policy). technology, investment, and environment. The agreement is administered by a Joint Cooperation Council at Articles 113 and 308 of the EC Treaty. ministerial level, which has met every year since 1990, alternating between Europe and the Gulf countries. I. The countries of the Gulf Cooperation Council (GCC) 2. Implementation After a period of relatively slow progress, the agreement has now started to produce concrete results. Objectives (a) Standards cooperation To strengthen relations between the EU and the Gulf The Standards and Metrology Organisation of the GCC Cooperation Council (GCC), which includes the United Arab (GSMO) and the European Commission concluded a Emirates, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait, by memorandum of understanding in 1996 on a standards broadening cooperation in various economic and technical cooperation programme. Subsequently, an expert from the ields. EU was appointed to Riyadh to coordinate work with the To help strengthen the process of economic development GSMO from the European side, but the appointment was and diversiication of the GCC countries. discontinued after the initial three-year term. (b) Customs cooperation Achievements The cooperation programme started in 1994 and was A. General inalised in 1997. Cooperation continued in the light of the GCC plan to establish a customs union between its 1. Economic aspect members. With the entry into force of this customs union in For the European Union, the GCC region is of strategic early 2003, the principal obstacle to the conclusion of a economic importance. In 2005, 9.7 % of the Union’s oil free-trade agreement has fallen. imports came from the area, and the GCC received 4.75 % of the total EU exports to third countries, making it the (c) Energy cooperation Union’s ifth largest export market and principal trading There has been a continuous sequence of conferences partner in the Arab world. The trade balance is consistently between the EU and GCC on natural gas, oil and gas in favour of the EU: EUR 13 010 million in 2005. Economic technologies since 1996. On 2 and 3 April 2005 a Eurogulf interdependency is at the core of EU eforts to support the energy summit was organised in Kuwait. In addition, at the process of regional integration. end of November 2005, the third Conference on Advanced Oil and Gas Technologies took place in Kuwait followed by 2. Political aspect the 8th EU–GCC Energy Experts Group meeting. The The Union and the GCC have stated on a number of European Commission has supported the Eurogulf research occasions their joint positions on the problems of the project through a grant from the Synergy programme. It aims Middle East and on ways of establishing closer relations at policy formulation to enhance security of supply to Europe between the two organisations, in view of the stabilising inluence which further integration between the Gulf (d) Environment cooperation States would inevitably have in that region. Since 1994 Relating to environmental cooperation pursuant to Article there has been a GCC delegation in Brussels, and in early 9 of the Cooperation Agreement, there has been some 2004 the EU opened a delegation in Riyadh, the seat of the cooperation on marine pollution and hazardous waste GCC Secretary-General. management since 1998 up to the present. B. Cooperation agreement (e) Technology information centre 1. Content In 1996, the Joint Council agreed to support the establishment of an EU–GCC Technology Information Having been signed in 1989 and entered into force on 1 Centre, to be set up in Muscat. The EU has ofered to January 1990, its main aim is to facilitate transfers of contribute to the overall inancial arrangements and to technology through joint ventures and to promote inance an implementation study for the project.
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01_2006_4661_txt_EN.indd 455 30-10-2007 14:55:53 C. Free trade agreement as a whole, including the acceding countries, pledged The Cooperation Agreement, Article 11, stipulates that the over EUR 1.25 billion for Iraq’s reconstruction. On 22 June parties should start discussions on entering into a free 2005, the EU and the United States co-hosted an trade agreement ultimately intended to create free trade international conference with Iraq at foreign minister between the two regions. Such negotiations irst took level in Brussels. place in October 1990. However, since 1991, the position of After the appointment of a new Iraqi interim the EU was to wait until the GCC has established its government and the full transfer of sovereignty and customs union, which took place on 1 January 2003. power on 30 June 2004, the EU adopted a new Without that the EU would have to enter into agreements framework for its relations with Iraq which envisages with each individual state, i.e. not with the GCC as such. In three phases of action and is to culminate in a bilateral November 2005 negotiations were close to conclusion and agreement. Its medium-term objectives include the the signature of the agreement is expected in the development of a stable and democratic Iraq; the immediate future. establishment of an open, stable, sustainable and diversified market economy; Iraq’s economic and II. yemen political integration into its region and the open international system. The EU–Yemen relations are based on a cooperation agreement, signed in 1997. The agreement’s objective is to Under the ESDP, the EU started an integrated rule-of-law enhance and develop dialogue and cooperation on mission for Iraq in July 2005 (EUJUST LEX) The mission development, trade, economic and cultural cooperation, provides integrated training in the ields of management environmental protection, sustainable management of and criminal investigation for senior oicials and natural resources and human resources development. Joint executive staf from the judiciary, the police and the cooperation committee meetings are held annually. prison services. For EUJUST LEX, the EU established a liaison oice in Baghdad to coordinate the training A new political dialogue component, covering issues activities. related to political reform, was added in the summer of 2004. EU oicials have listed the strengthening of pluralism In 2005 the European Commission was the major and democracy as a priority for 2005–06. Speciic project international donor to the Iraqi elections in January and proposals include providing support to the Supreme December and to the constitutional referendum in October Election Committee in anticipation of elections in 2006 and — all cornerstones of the country’s political transition. In to local NGOs and media so as to enhance civil society’s addition to support for institution building, the Assistance role in the decision-making process. Programme 2005 focuses on health, employment and education; capacity building in energy and trade sectors; Yemen is the poorest country in the Middle East. The civil society development, democratisation and human European Union has allocated EUR 90 million in aid for rights. Yemen for 2000–05. The European Commission adopted, on 7 June 2006, a III. Iraq communication in which it proposes several initiatives aiming to increase the EU’s commitment in favour of The EU Council has emphasised the central role of the UN democratisation and economic development in Iraq. The in the process leading towards self-government for the strategy proposed deines ive objectives for EU aid to Iraq Iraqi people and reairmed the EU’s commitment to in the coming years: (1) removing divisions in Iraq and playing a signiicant role in the political and economic building democracy whilst supporting the forthcoming reconstruction of the country. revision of the constitution, in collaboration with the Prior to the recent military conlict, the European United Nations; (2) promoting the rule of law and human Parliament (EP) approved a resolution supporting the work rights via actions such as police training in the ield of of UN inspectors, claiming that breaches of UN resolutions security and developing Iraq’s capacity to ensure that the on weapons of mass destruction do not justify military rules on human rights are being correctly applied; (3) action and opposing any unilateral military action. helping the Iraqi authorities to provide basic services (such as water and education) and to create more jobs; (4) After the beginning of the conlict in March 2003, the supporting the reform of public administration; (5) European Commission started to provide emergency promoting economic reform, particularly within the humanitarian aid through the Directorate-General for framework of the energy sector and in the regime of Humanitarian Aid (ECHO). At the Madrid donors’ commercial trade and investments. conference held on 23 and 24 October 2003, the Union
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IV. Iran comply. EU-led eforts to reach a diplomatic solution continued. The EU does not have any contractual relations with Iran A bad and apparently further deteriorating human rights and there is no Commission delegation in Teheran. The situation in Iran also hinders the development of closer EU– Iranian Embassy in Belgium is accredited to the EU. Iran relations. A human rights dialogue has earlier been On 7 February 2001, the Commission adopted a conducted between the parties and may at some point be communication — approved by the Council in May 2001 resumed. — setting out the perspectives and conditions for In a number of resolutions on Iran adopted in the last years, developing closer relations with Iran, including the the EP has criticised the human rights situation in the conclusion of a trade and cooperation agreement. A country, often drawing attention to individual cases and mandate for negotiating such an agreement was presented calling for the release of certain prisoners. by the Commission to the Council in November 2001 and was adopted in June/July 2002. Progress in deepening Parliament supports the work of the EU-3. In a resolution of economic and commercial cooperation with Iran should 15 February 2006, it also stated that the nuclear issue must go in parallel with progress on political issues, in particular be resolved in accordance with international law and that a as regards the attitude to human rights, non-proliferation, comprehensive agreement, which takes account of Iran’s terrorism and the Middle East peace process. security concerns, should be strived for. The non-proliferation issue has come to dominate EU–Iran A statement by President Ahmadinejad that Israel should relations and block the possibility of deepening these be ‘wiped of the map’ was condemned in resolution relations. Iran has signed and ratiied the Nuclear Non- adopted on 17 November 2005. Proliferation Treaty (NPT) and a safeguards agreement, The EP has set up a delegation for relations with Iran. This through which non-nuclear-weapon states undertake not delegation follows developments in Iran, but no organised to acquire nuclear weapons and accept subjecting cooperation with the Iranian parliament (Majlis) exists so themselves to certain controls. Reports from the far. However, a meeting with a delegation from the Iranian International Atomic Energy Agency (IAEA) on the parliament was scheduled for early October 2006. implementation of the Safeguards Agreement have, however, fuelled suspicions that Iran is nevertheless Role of the European Parliament carrying out preparations for constructing nuclear arms. The EP covers the region through its delegation for Three EU Member States, France, Germany and the United relations with the Gulf States, including Yemen, which Kingdom (‘EU-3’) in 2003 took the lead in eforts to reach an periodically holds interparliamentary meetings with agreement with Iran providing guarantees of the peaceful individual Gulf States. nature of its nuclear activities. With the support of the EU The EP has criticised the arrangements concerning the GCC High Representative for the common foreign and security Free Trade Agreement, irstly because the Council did not policy, Mr Solana, the EU-3 on 15 November 2003 reached consult it before adopting a negotiating mandate and, an agreement with Iran on full suspension of all enrichment secondly, because it believes that the agreement might and reprocessing activities and negotiations on long-term have negative efects on the EU’s petrochemical and arrangements. This agreement is known as the Paris fertiliser industries. It has called on the Commission to Agreement. include mechanisms in the agreement which prevent any In August 2005, following the election of Mr Ahmadinejad distortion of competition between the parties. as new President and rejection of an EU-3 proposal for a In its resolution of 10 March 2005, the EP welcomed the framework for a long-term agreement, Iran announced that irst-ever nationwide electoral process in Saudi Arabia, it would resume uranium conversion — an enrichment- witnessed by a EP delegation. However, it called also for related activity. In the beginning of 2006, Iran proceeded to enhanced women’s rights, the abolition of the death uranium enrichment. The IAEA reported the case to the UN penalty and an upgrading of the working conditions and Security Council, which called on Iran to end enrichment. treatment of immigrant workers. In June 2006, a package of incentives and disincentives was presented to Iran by Mr Solana on behalf of the EU-3 and with the support of other major powers. A UN Security g Stefan KRAUSS Council resolution ixed 31 August 2006 as a deadline for Dag SOURANDER (Iran part) 11/2006 Iran to suspend uranium enrichment, but Iran did not
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Legal basis — Brieings by the EU presidency to US representatives on — For USA: Article 133 of the EC Treaty; the common foreign and security policy (CFSP) at ministerial level. — For Canada: Articles 133 and 308 of the EC Treaty and Article 101 of the Euratom Treaty. 2. The new Transatlantic Agenda and the Joint Action Plan (1995) Objectives The EU–US summit of December 1995 adopted a statement of political commitment, the New Transatlantic Maintaining a free exchange of goods while protecting the Agenda (NTA), and a comprehensive joint EU–US action European Union’s interests remains one of the main plan. The new agenda enables the two sides to join forces objectives of the Union’s important trade relations with the to achieve four broad objectives: promoting peace, US. The US and the Union play a major role in international development and democracy around the world; bodies such as the World Trade Organisation (WTO). Eforts responding to global challenges; contributing to the to bring about closer coordination have been in evidence expansion of world trade; as well as closer economic at world economic summits and have also had tangible relations and building bridges across the Atlantic. The results in the aid programme for the countries of eastern action plan identiies over 150 ields for action where the Europe. The framework agreement with Canada aims to EU and the US have agreed to work together, both establish direct links between the two parties and to bilaterally and multilaterally. To promote peace and stability, consolidate and diversify economic and commercial the EU and the US have pledged to cooperate in creating cooperation to the greatest possible extent. an increasingly stable and prosperous Europe. Cooperation and joint action are focused on the reconstruction of the Achievements former Yugoslavia, on fostering democratic and economic reform in central and eastern Europe, Russia, Ukraine and I. United States other former Soviet republics, on securing peace in the Middle East and on a common approach to development A. General and humanitarian assistance. EU–US relations today are both multilateral and bilateral. In 3. The latest developments the multilateral context, they involve working together to (a) Areas of agreement advance shared goals such as democratic government, human rights and market economy. This also entails EU–US Following sharp divisions over the conlict in Iraq during common interests in confronting global challenges such as 2003 and early 2004, dialogue intensiied once again with threats to security and stability, proliferation of weapons, President Bush’s visit to Brussels in February 2005 (the irst unemployment, environmental degradation, drugs, crime visit by a US President to the EU institutions). and terrorism and other issues. At the June 2005 summit in Washington, this renewed close cooperation resulted in joint declarations on B. Political cooperation democracy, freedom and human rights; on enhancing 1. The Transatlantic Declaration of November 1990 cooperation on non-proliferation; countering terrorism; and The Transatlantic Declaration provides for a system of on Africa and the Middle East. regular consultations. Both sides also launched an initiative to enhance — Biannual consultations between the EU presidency plus transatlantic economic integration and growth, together the Commission and the US President. with speciic declarations relecting their shared interest in — Biannual consultations between the EU foreign combating counterfeiting and in ensuring a secure and ministers plus the Commission and the US Secretary of eicient energy supply. State. (b) Areas of disagreement — Ad hoc consultations between the presidency foreign It cannot be ignored that transatlantic policy coordination ministers and the US Secretary of State. has not always been successful in the recent past (for example policies on Cuba, Iraq, Iran and the Middle East) — Biannual consultations between the Commission and despite all the declarations, agendas and plans. the US government at cabinet level.
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Disagreements remain over issues such as genetically atomic energy (Euratom’s oldest international agreement). modiied crops — which the US is much keener to develop Then, in 1976, the Framework Agreement for Commercial and exploit than the EU — and global competition in and Economic Cooperation between the European sectors like steel production and aircraft building (Boeing Communities and Canada was concluded: the vs Airbus). Other divisions also exist on the International Community’s irst cooperation agreement with an Criminal Court and, more generally, on the use of military industrialised country. Since then, the EU’s cooperation force in international relations. with Canada has spread far beyond the limited scope of the 1976 agreement, despite the fact that this agreement C. Economic cooperation still provides the principal legal basis for the formal The European Union and the United States are the leading relationship between the EU and Canada. To ease players in international trade, accounting for 37 % of world cooperation across a far broader range of policy areas, merchandise trade, and 45 % of world trade in services in political declarations were adopted in 1990 and again in 2002. They are also the largest source and destination of 1996. In March 2004, both sides adopted a partnership foreign direct investment (FDI), accounting for 54 % of total agenda identifying areas for joint action on global issues. world inlows and 67 % of total world outlows in 2000. The EU and Canada now meet in a variety of forums to take The EU and the US are each other’s biggest trading forward their cooperative agenda. Twice a year meetings partners ("6.2.1), accounting for around 21 % of each take place at foreign minister level, as do regular summit other’s total trade. For goods alone, in 2003 the US meetings between the presidency of the European Council, absorbed 26 % of EU exports (to a value of EUR 226 billion), the President of the Commission and the Prime Minister of while 17 % of EU imports (EUR 157 billion) came from the Canada. The annual meeting of the Joint Cooperation US. Transatlantic trade is thus worth EUR 1 billion a day. Committee (JCC) established by the 1976 framework Although transatlantic trade disputes steal the headlines, agreement meets back-to-back with informal meetings of trade itself accounts for less than 20 % of overall senior oicials in the ields of Justice and Home Afairs transatlantic commerce, and US–EU trade disputes account (JHA). for less than 2 % of transatlantic commerce. B. Economic relations The EU and the US have by far the world’s most important bilateral investment relationship. They are each other’s The EU remains the second most popular destination for most important source and destination for FDI, with Canadian direct investment after the US. Canada is an accumulated two-way investment now exceeding important trade partner for the EU both bilaterally (ninth EUR 1.5 trillion. Over the period between 1998 and 2001, place in 2004) and on global trade policy. the US was the destination of 52 % of EU outward FDI lows Bilateral trade patterns are characterised by an exchange of and the source of 61 % of EU inward FDI. Nearly three- high value-added goods (machinery, transport equipment, quarters of all foreign investment in the US in the 1990s chemicals), although agricultural products still exceed 10 % came from Europe. Levels of FDI lows between the EU and of Canada’s exports to the EU. the US are substantially greater than trade levels. Bilateral agreements were concluded on the recognition of The EU is not only a critical source of revenue for US conformity assessments (1998), veterinary matters (1999), companies, it is also a key supplier of capital or liquidity for competition enforcement cooperation (1999) and trade in the US economy, substantially contributing to inancing its wines and spirits (2003). current account deicit. The Ottawa summit in March 2004 agreed on the All of this makes our two economies interdependent to a framework for a Canada–EU Trade and Investment degree unmatched in the world, with 14 million jobs (split Enhancement Agreement (TIEA), negotiations for which are about equally) depending on the increasingly integrated now under way. Its key feature will be close cooperation EU–US market. between EU and Canadian regulators on subjects ranging from the mutual recognition of professional qualiications, II. Canada through inancial services, to government procurement.
A. General Role of the European Parliament The European Community’s relationship with Canada dates As with most other countries and regions of the world, the back to 1959, when an agreement was concluded between European Parliament (EP) maintains regular the Government of Canada and the European Atomic interparliamentary contacts with the US and Canada Energy Community for cooperation in the peaceful uses of through standing delegations meeting with their
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01_2006_4661_txt_EN.indd 459 30-10-2007 14:55:54 counterparts at least once a year. These contacts are on to each interparliamentary meeting, allowing members among the EP’s longest-standing external relations, dating to debate in depth a subject of bilateral or shared interest, back to 1972 and 1973 respectively. both among themselves and with experts. A steering In the case of the United States, it was soon felt that a more committee, co-chaired by the chairs of the Delegation for intense exchange was needed, and in an exception to Relations with the United States and the Committee on Parliament’s rules, the frequency of meetings was increased Foreign Afairs, coordinates all EP activities relating to the to twice yearly from 1980. In the wake of the New TLD. Transatlantic Agenda, the 50th EU–US Interparliamentary In two resolutions on transatlantic relations, of 13 January Meeting in Strasbourg agreed, on 16 January 1999, to and 9 June 2005, the EP noted the increasingly integrated recast the contacts in the framework of a Transatlantic nature of the transatlantic market and underscored the Legislators’ Dialogue (TLD). In addition to the twice-yearly need to further develop parliamentary oversight of it. meetings, this provides the platform for continued Parliament therefore called for the establishment of exchange of information through the web, liaison between appropriate early warning mechanisms on pending specialised committees of both parliaments, legislation, and over the longer term, for the transformation teleconferences on subjects of particular importance, as of the TLD into a Transatlantic Assembly. well as regular meetings with the senior-level group of oicials preparing the annual EU–US summits. From 2004 g Stefan SCHULz these options were extended via a half-day seminar added 11/2005
6.4.8. Latin America
Legal basis Achievements Title V of the Treaty on European Union as regards general A. Relations with the continent as a whole relations. 1. Development cooperation EC Treaty: Since the 1960s, Latin America has beneited from inancial — Article 37 for isheries agreements, and technical assistance from the European Union, which is its biggest provider of oicial development aid. The aims of — Articles 133 and 300 for trade relations, the Union’s development and cooperation policy are to — Article 308 for cooperation agreements. combat poverty and social inequalities, to promote the integration of developing countries into the global economy Objectives and to consolidate the rule of law. This policy is conducted by means of regional and bilateral agreements covering all — to reinforce political ties; areas of commercial, technical, inancial, cultural and political — to strengthen economic and trade relations; activity. Latin America also receives assistance under speciic — to support democratic development and economic and programmes of technical and inancial aid, including ALFA social progress in Latin American countries; for university cooperation, ALBAN, a programme of high- level scholarships, AL-Invest for cooperation between — to foster regional integration. companies, ATLAS for cooperation between chambers of These objectives are relected in particular in ‘fourth- commerce, ALURE for cooperation in the energy sector, @LIS, generation’ agreements, which are more ambitious than the new programme designed to promote more widespread previous ones, going beyond simple trade and use of information technology, URB-AL for decentralised development-aid agreements and providing for political cooperation between local authorities and the project for cooperation and free-trade areas. the creation of an Observatory of EU–Latin American Relations (OREAL).
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2. Relations with the Rio Group has since brought progress in the domain of regional The Rio Group, which was founded in 1986, is the principal integration. mechanism for political consultation at continental level. It At the ministerial conference in Madrid in 2002, the parties now covers the whole of Latin America and also includes decided to draw up a new agreement on cooperation and representatives of the Caribbean countries. Relations political dialogue to replace the 1993 agreement. This new between the EU and the Rio Group were placed on an instrument, which was signed in Rome on 15 December oicial footing by a declaration made in Rome on 20 2003, formalises the political dialogue that was launched in December 1990. The interregional dialogue includes an 1984. It extends the scope of cooperation to immigration annual meeting of foreign ministers and a two-yearly control, economic cooperation and the ight against summit of Heads of State and/or Government. The terrorism. The new agreement, however, does not include partnership between the two regions consists of: the liberalisation of trade as the countries of Central — political dialogue, America originally wished it to do, taking as their model the Union’s agreements with Mexico and Chile. Nevertheless, it — trading links, does proclaim the joint objective of ‘creating conditions’ for — technical, inancial and economic cooperation. a so-called ‘fourth-generation’ association agreement that After an initial summit in Rio de Janeiro in June 1999, the would include free-trade provisions and be based on the Heads of State or Government of the countries of the EU, outcome of the Doha Round of WTO negotiations and on Latin America and the Caribbean met again in Madrid in progress made in the regional integration process. The start May 2002, Guadalajara in May 2004 and Vienna in May 2006. of negotiations on this agreement was announced at the At this latest summit, which was the second involving the 25- recent Vienna summit in May 2006. member Union, the participants emphasised the need for: 2. Andean Community — multilateralism (support for the UN system, The EU has maintained regular contact with Andean disarmament and global governance and for the ight countries (Bolivia, Colombia, Ecuador, Peru and Venezuela) against terrorism, drug-traickers, organised crime, etc.); since 1969, when the Andean Group was founded (the group became the Andean Community in 1996). It — social cohesion (combating exclusion by means of concluded a irst cooperation agreement with them in efective social policies, higher budgetary 1983, followed by a ‘third-generation’ agreement in 1993, appropriations and experience-sharing); which provided for economic and trade cooperation and — bilateral relations (encouraging the pursuit of EU– development cooperation and included a most-favoured- Mercosur negotiations, developing trade liberalisation, nation clause. seeking a just and lasting solution to the debt problem, At their meeting on the fringe of the Rio summit in 1999, supporting regional integration, more cooperation the Andean countries raised the possibility of a new between the two regions on issues such as the cooperation agreement, which would be wider in scope environment, energy and migration, and launching than the 1993 agreement. In Madrid in 2002, the two sides more initiatives in the spheres of education, culture, took a decision to update the agreement. The new science and technology). agreement was signed in Rome in December 2003. The B. Relations with regional groupings and agreements new provisions do not, however, include the liberalisation concluded of trade, which the Andean countries had originally wished 1. Central America them to cover, citing the EU–Mexico and EU–Chile In September 1984, representatives of the EU and Central agreements as models. Nevertheless, one of the aims of the American countries (Costa Rica, Guatemala, Honduras, updated agreement is to ‘create conditions’ for an Nicaragua, Panama and El Salvador) met in San José in association agreement which would include free trade and Costa Rica to examine the situation in the region, which at would be based on the results of the Doha Round of WTO that time was in crisis. They have continued to meet negotiations and on progress made in the regional annually, in a Central American or European capital, to integration process. The new agreement extends the scope pursue this San José dialogue. The EU relies on this of cooperation to the ight against terrorism and illegal dialogue to promote political stability, respect for human immigration. In addition, it institutionalises the mechanisms rights and economic and social development in the of political dialogue that were created in 1996. countries concerned as well as regional integration. The 3. Mercosur establishment in 1991 of the Central American Integration In 1991, Argentina, Brazil, Paraguay and Uruguay System (Sistema de Integración Centroamericana — SICA) announced their intention of establishing a Southern Cone
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01_2006_4661_txt_EN.indd 461 30-10-2007 14:55:55 Common Market (Mercosur). Relations between the EU and 2. Chile Mercosur were institutionalised by the framework In 1996, a cooperation agreement was concluded between agreement of 1995, which paved the way for political the EU and Chile. Three years later, negotiations were cooperation and negotiations on the establishment of free opened on an association agreement. The negotiations trade between the two parties. At the Madrid summit in were completed in March 2002, and the agreement, also of 2002, the representatives of the EU and Mercosur the fourth generation, was signed on 18 November 2002. It relaunched the economic and trade negotiations. In comprises three strands — politics, trade and development particular, the two parties agreed on a timetable and cooperation. Provision is made for a political dialogue, in negotiating procedures and deined their levels of which civil society is also to be involved. The agreement expectation with regard to the future agreement. The almost completely opens the economies of both parties, global economic slump, and especially the crisis of 2001– with gradual liberalisation of trade in Chilean products, 02 in Argentina, had an adverse impact on the 97 % of which will have free access to the EU market by negotiations. At a ministerial meeting between the EU and January 2012. In the European Parliament (EP), the deal was Mercosur on 12 November 2003, it was decided to hailed as an agreement for the 21st century, and indeed it complete the negotiation of an association and free-trade is the most ambitious and innovative agreement ever agreement in October 2004 in Lisbon. The failure of this concluded by the EU with a country which is not an meeting in October 2004 showed that the main obstacle to applicant for accession. the conclusion of the agreement lay in its agricultural component. Following the ministerial meeting in Brussels Role of the European Parliament on 2 October 2005, the two parties decided to resume their negotiations. Despite encouragement from the Guadalajara Following the 2004 elections, the EP, having regard to the and Vienna summits, negotiations are still far from being various agreements signed by the EU with Latin American concluded. There will probably be no decisive progress partners, established delegations for relations with Mexico, before the outcome of the WTO negotiations which is Central America, the Andean Community, Mercosur and expected in July 2006. The conditions for resuming Chile. It also maintains close contact with parliaments in negotiations and the timetable of work are now decided the region, in particular the Latin American Parliament jointly by the two parties, taking account of the progress of (Parlatino), the Central American Parliament (Parlacen), the negotiations on trade liberalisation, in view of the Mercosur Joint Parliamentary Committee (Comisión sensitivity of some products and in line with WTO rules. Parlamentaria Conjunta Mercosur — CPCM), the Andean Parliament (Parlandino) and the Congress and Senate in C. Relations with individual countries Chile and Mexico. Joint parliamentary committees have 1. Mexico been established between the EP and the parliaments of The Economic Partnership, Political Coordination and both countries, as envisaged in the association agreements. Cooperation Agreement, also known as the Mexico–EU Since 1974, the EP has also been organising Global Agreement, was signed on 8 December 1997 and interparliamentary conferences with its Latin American entered into force on 1 October 2000. In the framework of counterpart, the Parlatino, and these have been the main this agreement, the EU and Mexico concluded a free trade channel of dialogue and cooperation between the elected agreement, which entered into force on 1 July 2000 for representatives of the two regions. A total of 17 EU–Latin industrial and agricultural goods and in March 2001 for American interparliamentary conferences have taken place services, intellectual property and investments. Mexican since 1974; the most recent was held in Lima in June 2005. industrial exports have had completely free access to the In its resolution of 26 April 2006, the EP repeated its call for EU market since 2003, and the Mexican market is to be fully the adoption of a common EU strategy for Latin America opened to EU exports in 2007. This fourth-generation and the Caribbean, to ‘give substance and direction to EU agreement not only created a free-trade area but also action in launching the strategic bi-regional partnership’ institutionalised a political dialogue for the promotion of agreed upon at the Rio summit of June 1999 and democratic principles and respect for human rights. The reairmed at the Madrid and Guadalajara summits. In a volume of trade has grown since the entry into force of the very detailed resolution comprising 93 operative Free Trade Agreement, with EU exports to Mexico paragraphs, the EP deines the aims of the common increasing by 30 % and Mexican exports to the EU strategy. Foremost among these are: practically doubling. An agreement on scientiic and — in the political sphere, creating an EU–Latin American technological cooperation was signed in 2004. The two transatlantic assembly (Eurolat) to reinforce parties are also planning to conclude an agreement in the parliamentary dialogue, signing a peace charter, setting ields of education, youth and training.
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up a bi-regional conlict prevention centre and poverty and social exclusion in Latin America and launching a political and security partnership; would involve participation and inancial support on — in the economic, inancial and commercial spheres, the part of international public and private funding putting an EU–Latin American free-trade area in place bodies. by 2010, and simultaneously implementing association The resolution also emphasises that another of the aims of agreements between the EU and its regional partners reinforced cooperation should be to promote human — Mercosur, the Andean Community and Central rights, democracy, good governance, transparency and the America; rule of law, in a context of genuine multilateralism. — in the social and cultural spheres, setting up a bi- regional solidarity fund, which would support the g Pedro NEVES eforts of the various partners of the EU to combat 06/2006
6.4.9. Japan
Legal basis of unnecessary and obstructive regulations, which hinder Article 133 (Article 113) of the EC Treaty. trade and foreign investment. Since 1995, the EU and Japan have participated actively in each other’s regulatory reform eforts through dialogue. Thus the nature of the EU Objectives dialogue with Japan has changed: while in the past Common principles for the relations between Japan and the economic relations with Japan were dominated by trade EU and its Member States were laid down in a political disputes, nowadays the focus is on EU requests for declaration of 1991. A Joint Declaration on Relations deregulation and structural reforms in Japan. The EU and between the European Community and its Member States Japan cooperate closely in exchanging lists of deregulation and Japan was signed on 18 July 1991. At the 9th EU–Japan proposals on an annual basis and engaging in an extensive Summit held in Tokyo on 19 July 2000, a 10-year action plan series of high-level and expert meetings. to reinforce the bilateral partnership and move it from The regulatory reform dialogue (RRD) has taken place consultation to joint action was agreed for 2001. This annually since 1994. It is a two-way process in which Japan declaration on relations between the European Community and the EU present deregulation requests to each other. and its Member States and Japan established common The EU presents requests to Japan in a manner designed to principles and shared objectives in the political, economic, feed into the annual work cycle of the Regulatory Reform cooperation and cultural areas and established a Committee (now succeeded by the institutionally stronger consultation framework for annual meetings between Japan Consultative Council on Regulatory Reform), while Japan and the EU. The action plan addresses four major objectives: submits requests to the EU on its concerns in the EU. At the — promoting peace and security; last high-level RRD meeting on 4 March 2005, discussions — strengthening the economic and trade partnership focused on commercial legislation, trade and customs utilising the dynamism of globalisation for the beneit regulations, visa and work permits, intellectual property of all; protection, inancial services, the EU chemical policy (REACH) and new environmental directives afecting — coping with global and societal challenges; products such as batteries, electrical waste and chemicals. — bringing together people and cultures. B. Political dialogue Achievements The current structure of the political dialogue between the EU and Japan was set out in the joint declaration of 1991 A. General and consists of: annual consultations between the A major pillar of bilateral EU–Japan relations is the two-way President of the European Council, the President of the dialogue on deregulation, aimed at reducing the number Commission and the Japanese Prime Minister; annual
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01_2006_4661_txt_EN.indd 463 30-10-2007 14:55:55 meetings between the Commission and the Japanese more to foreign competition. Yet, total foreign investment government at ministerial level; two annual meetings in Japan remains very low (less than 2 % of GDP), if between the foreign ministers of the EU–Troika including compared with other developed countries. The EU remains the Commissioner in charge of Foreign Relations and the the leading foreign direct investor (FDI) in Japan, but total Japanese Foreign Minister, and two annual meetings amounts are falling. In 2003/4 Europe had a 33 % share between the EU Political Directors Troika and the Japanese (¥700 billion) of inward FDI to Japan (compared to Political Director. ¥1 400 billion in 1999/2000). Likewise, Europe is a popular New developments in Japan called for a review of the EU– destination for Japanese investment. Japan invested ¥1 400 Japan relationship, which had been assessed in the billion in Europe in 2003/4, representing a 35 % share of Commission’s communication of 1992. In March 1995, the Japan’s outward FDI, with the US receiving just under 30 %. Commission completed a communication (Europe and Despite China now becoming Japan’s largest trading Japan: ‘The Next Steps’, (COM(95) 73) specifying the partner, trade between the EU and Japan remains strong. position taken on the EU’s new Asia strategy (COM(94) 34), From 1999 to 2003, EU exports to Japan grew by 3.5 % on evaluating the developments and changes and arguing in average per year. In 2004, 13 % of all Japan’s imports came favour of increasing the weight of the EU–Japan political from the EU (14 % from US, 21 % from China) while the EU relationship, as both the EU and Japan are increasingly remained Japan’s second largest market with 16 % of trying to match their economic importance with a more Japanese exports, behind the US on 22 %. active political role. The Union is concerned at the lack of a signiicant increase The 1999 Bonn summit galvanised the EU and Japan’s of EU exports to Japan in certain sectors where, intent to further broaden and deepen their partnership in nevertheless, the EU seems to be competitive the new millennium and to promote peace, stability and internationally. A striking illustration of this is EU exports of prosperity in Asia, Europe and globally. Both sides also oice machinery and telecommunications equipment. expressed their intention to deepen their successful two- Food products are another category where Union exports way deregulation dialogue by focusing on priority issues of to Japan should be larger. concern to both sides and providing for regular review of Most of these trade issues are being tackled, not only in the progress, notably at the EU–Japan Ministerial Meeting. framework of WTO but also bilaterally. Europe is At the 2000 Tokyo Summit the EU and Japan launched a determined to pursue certain unresolved matters decade of cooperation (2001–11) which gave a decisive bilaterally. In this context, a Mutual Recognition Agreement impetus to the overall EU–Japan relationship and which (MRA) entered into force on 1 January 2002. The MRA will deined ambitious objectives for a comprehensive and cut red tape for trade and mean annual savings for action-oriented partnership. exporters of up to EUR 400 million. The MRA permits The 14th EU–Japan summit took place in Luxembourg on 2 acceptance of conformity assessment conducted in one May 2005. The leaders reviewed the implementation of the party according to the regulations of the other in four Action Plan for EU–Japan Cooperation and set priorities for product areas (telecommunications terminal equipment action to be taken by the time of the next summit. They and radio equipment, electrical products, good laboratory also discussed a wide range of issues aiming at creating an practices for chemicals and good manufacturing practices efective partnership to address key international issues for pharmaceuticals), an important step in facilitating and strengthening the multilateral system. At the summit in market access. Tokyo, on 22 June 2004, results included: (1) a Japan–EU The Agreement on Cooperation and Anti-competitive Joint Declaration on Disarmament and Non-Proliferation; Activities (Council Decision of 16 June 2003) should (2) the Cooperation Framework for Promotion of Japan–EU facilitate bilateral cooperation in assessing competition Two-Way Investment; (3) a Japan–EU Joint Initiative for the aspects of major merger and acquisition cases. Enforcement of Intellectual Property Rights in Asia; (4) a In the WTO, the EU and Japan, as the second and third Joint Statement on Cooperation on Information and largest economies in the world, have established close communication Technology. Simultaneous with the policy cooperation. Developing that cooperation is one of summits were the annual meetings of the EU–Japan the key initiatives in the action plan. Business Dialogue Round Table. D. Cooperation C. Trade and investment The EU considers industrial cooperation, and particularly Trade and investment links between Japan and the EU investment, to be an element of major importance to remain strong. The Japanese market is opening more and strengthen bilateral relations with Japan. The EU
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Commission is of the opinion that a healthier situation government authorities to promote trade and investment would be created if Europe’s own investments in Japan between Europe and Japan. The EUJBDRT contributes to could be increased. It is working in this direction, for the identiication of mutually beneicial initiatives and example through the channel of the EC–Japan Industrial keeps close track of the progress achieved by both the Cooperation Centre in Tokyo [1]. The establishment of a European and the Japanese administrations. regular EC–Japan industrial policy and industrial cooperation dialogue was initiated during the ministerial Role of the European Parliament meeting in 1993, creating a forum for reviewing the Since 1979, a delegation from the European Parliament (EP) evolution of industrial cooperation. meets most years with a delegation from the Japanese Regular contacts are also maintained in the sectors of Parliament, the Diet, alternating between venues within telecommunications, information technology and the European Union and Japan. The last EP/Japan inter- electronic commerce. It was agreed to deepen cooperation parliamentary meeting (the 26th) took place in Tokyo and in the ields of environment, energy, culture, labour and Kyoto from 15 to 20 May 2005. social afairs and development assistance. There is also The EP has held several debates over the last few years on dialogue on macroeconomics and inancial issues as well as relations with Japan, some dealing with trade relations and transport issues. market access, others with political issues. The following The EU and Japan cooperate across a very broad range of resolutions are of particular interest: resolution of 18 subjects. There are standing forums for discussion on September 1997 on the Commission communication ‘The sectors such as industrial policy, science and technology, Next Steps’; resolution of 13 April 1999 on a programme of research, telecommunications and related services, social speciic measures and actions to improve access of EU afairs, development aid, environmental protection, goods and cross-border services to Japan; resolution of 7 dialogue on macroeconomics and inancial issues as well as October 1999 on the nuclear accident in Japan; resolution transport issues. The EU and Japan are partners in the of 13 June 2002 on the abolition of capital punishment in International Thermonuclear Experimental Reactor (ITER) Japan, South Korea and Taiwan; resolution of 3 July 2002 on project, for which an agreement has been reached on its the EC/Japan agreement concerning cooperation on anti- location in France. Japan, the EU, the US and Korea competitive activities. cooperate in the Korean Energy Development Organisation (KEDO). KEDO was formed because of the need to reduce Procedure references the risk of nuclear proliferation in North Korea and promote the peaceful uses of nuclear energy. The European [1] Consultation procedure: CSA2631 Commission supports the EU–Japan Business Dialogue Round Table (EUJBDRT), a private sector initiative to g Xavier NUTTIN strengthen links between European and Japanese 11/2005 businesses, and welcomes focused private sector input to
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Legal basis disappointed since the arrest and imprisonment of — Title V, EU Treaty opponents continued. — Articles 133 and 310 EC Treaty. (b) In June 1994 a new framework for bilateral political dialogue was set up. Objectives (c) In July 1995 the Commission issued a communication on A Long-Term Policy for China–Europe Relations, To develop trade and other relations between the which was endorsed by the European Council and European Union and the People’s Republic of China (PRC): relected China’s rise as a global economic and political — to raise the EU’s political, commercial and economic power. Ever since, EU–China relations have been proile in China; pursued under the three main headings: political — to engage China further on the world stage, through its dialogue (including human rights), economic and trade integration into the world economy; to support China’s relations and the EU–China cooperation programme. transition to an open society based upon the rule of law (d) In 1998, the European Commission adopted its and respect for human rights; communication ‘Building a Comprehensive partnership — to support the process of economic and social reform with China’, the main objective of which was to upgrade under way in the country. the EU’s relationship with the People’s Republic of China. Current EU policy towards China is based on the Achievements Commission’s policy paper of June 2001: ‘EU Strategy towards China’. A new policy paper ‘A maturing I. People’s Republic of China (PRC) Partnership: Shared Interests and Challenges in EU– China Relations’ was endorsed on 13 October 2003. The A. General pattern of relations 2003 policy paper suggests ways of further developing EU–China relations by enhancing the existing 1. Initial developments mechanisms and the systematic inclusion of global and (a) It was not until 1975 that China and the EU agreed to regional governance and security issues. Issues to be establish oicial relations to relect the ‘open door focused upon are: the EU–China dialogue on illegal policy’ followed by China in the second half of the immigration; the eiciency of the human rights 1970s. A trade agreement was signed in April 1978. dialogue; cooperation on the Doha Development (b) In 1980 China was included in the list of countries agenda in the World Trade Organisation (WTO) and the eligible for the Community’s Generalised System of monitoring of China’s compliance with its WTO Preferences. The 1978 agreement was superseded in commitments. 1985 by a broader agreement on economic and trade (e) China released, on 13 October 2003, its irst ever policy cooperation. In 1988 the Commission opened a paper on the EU. China supports EU integration and delegation in Beijing. called the EU to grant it ‘full market economy status’. 2. A setback China expects the EU to become China’s largest trading (a) The progress in relations was brought to a sudden halt and investment partner. by the Tiananmen Square massacre in June 1989, which B. Current relations was immediately condemned by the Community. The Madrid European Council of 26 and 27 June ordered the 1. Political relations suspension of high-level bilateral meetings, the (a) Political dialogue continues within the framework postponement of new cooperation projects and established in 1994. This comprises regular meetings of cutbacks in existing programmes. An embargo on arms ministers of the EU troika with Chinese ministers; high- sales and military cooperation was instituted. level consultations between the Commission and China; ad hoc meetings between foreign ministers; two annual 3. The gradual resumption of relations: policy papers meetings between the Chinese foreign minister and the (a) Until 1994 Europe’s hopes of seeing a change in EU ambassador in Beijing and, equally, between the Chinese human rights policy were repeatedly foreign minister of the country holding the EU
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presidency and the Chinese ambassador to that (g) On Taiwan, the EU pursues a ‘one China’ policy, country. recognising the Government of the PRC as the sole (b) Concern about human rights has been a major theme legal government of China. of EU–China relations since the Tiananmen Square 2. Trade relations crackdown in 1989. A dialogue solely devoted to (a) The 1985 economic and trade cooperation agreement human rights has been established since 1996. To that provides a non-preferential basis for increasing bilateral efect two annual meetings are held between the EU trade on the basis of market prices. It is managed by a troika and the Chinese government. Topics raised have joint committee, which meets every year to monitor the included the ‘fundamental rights’ of political dissidents, progress of relations. treatment of religious faiths and the Falungong (b) Trade has developed very rapidly since 1975 when it spiritual movement, freedom of expression, was almost non-existent. Total two-way trade has application of torture and the death penalty and the increased more than forty-fold since reforms began in situation of ethnic minorities. Individual cases are also China in 1978, and was worth EUR 135 billion in 2003. raised. The dialogue is complemented by inancial The EU has gone from a trade surplus at the beginning support to projects such as implementation of UN of the 1980s to a deicit of EUR 78 billion in 2004, its human rights covenants, local democracy and judicial largest trade deicit with any partner. Overall, China is reform. now the EU’s second largest non-European trading (c) The irst regular EU–China political summit was held in partner after the US, and the EU is now China’s irst London in April 1998. As a result, the troika made its trading partner. In recent years, EU companies have irst visit to Tibet. The most recent, eighth, EU–China invested considerably in China (new annual lows of summit took place in Beijing on 5 September 2005. utilised Foreign Direct Investment (FDI) of around Agreements were signed in the labour, science and USD 4.2 on average in the last 5 years), bringing stocks technology (including space exploitation), energy, and of EU FDI to over USD 35 billion. environment sectors. A joint declaration on climate (c) Following China’s entry into the WTO, the Multiibre change was issued. At the seventh summit Agreement came to an end in 2004, after several agreements were signed in the ield of science and decades which were supposed to give European technology (including nuclear research), cooperation producers time to prepare for increased competition. between the customs administration and exchanges The magnitude of the onslaught in the irst few months of students. On 12 February 2004, the European of 2005 came as a surprise however, with China’s share Community and the China National Tourism of EU textile imports increasing dramatically over this Administration signed an accord that will facilitate period. After an agreement to reintroduce temporary Chinese group tourism to the EU (except for the non- quotas the problem was contained. Schengen countries, Denmark, Ireland and the UK, which will seek bilateral agreements). 3. EU–China cooperation (d) The handover of Hong Kong to China in 1997 did not (a) The EU supports China’s reforms and liberalisation afect EU relations with Hong Kong, where it still has a through its cooperation programme. The present delegation. cooperation portfolio includes 40 projects for a total value of approximately EUR 260 million. Current (e) Equally, the handover of Macao in 1999 had no efect cooperation projects concern environmental on relations with the EU, and the trade and cooperation management, basic education in Gansu, village agreement remained valid. In November 1999 the governance, forest management and inancial services. Commission adopted a communication to the Council Project management responsibilities have been and the EP, entitled ‘The EU and Macao: Beyond 2000’. transferred from the Commission in Brussels to the The communication underlined the respect for the delegation in Beijing. principles set out in the Basic Law of the Macao Special Administrative Region (MSAR) and the full (b) The 1985 agreement provided for cooperation in implementation of the concept ‘one country, two industry, mining, energy, transport, communications systems’ and guarantees the speciic social, economic and technology. A science and technology agreement and cultural identity of Macao. was signed in 1999. A new agreement on cooperation in the EU’s Galileo satellite navigation programme was (f) In both Hong Kong and Macao the Commission signed on 30 October 2003. Another agreement monitors the situation to ensure that democracy and covering joint research on the peaceful use of nuclear human rights are respected and issues annual reports. energy was concluded at the 2004 EU–China summit.
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01_2006_4661_txt_EN.indd 467 30-10-2007 14:55:56 (c) In May 2000 the EU and China signed a bilateral the 22nd meeting took place in Brussels from 10 to 13 agreement paving the way for China’s accession to the September 2005. Working sessions took place with WTO, which was completed by the end of that year. In counterparts from the National People’s Congress (NPC). order to help the Chinese government implement The meeting agendas dealt inter alia with human rights, commitments under the WTO, the EU worked in trade and business issues and China’s membership of the partnership and designed a number of WTO-oriented WTO. In its numerous resolutions dealing with China, the technical assistance projects, with a budget totalling EP has signiicantly contributed to enhancing bilateral about EUR 22 million. cooperation between the EU and China (visas, WTO, (d) In March 2000, the EU and China launched the EU– science and technology, maritime transport). For example: China Legal and Judicial Cooperation programme. The EP resolutions of 25 October 2001, 9 February 1999, 12 June objectives are to develop a better understanding of the 1997 on EU–China relations; resolution of 2 September concept of the rule of law in China and to improve 2003 on maritime transport; resolution of 25 October 2001 awareness of the Chinese legal system. on China’s accession to the WTO; resolution of 4 November 1999 on EC/China technological and scientiic cooperation. 4. Humanitarian aid A resolution was adopted on 6 September 2005 on trade in Currently, ive projects in China also beneit from textiles and clothing. Community support through the EU Human Rights and The EP has also addressed more controversial issues such as Democracy programme. In addition, emergency aid has the Taiwan question (13 April 2000, 7 July 2005), the arms been provided from the European Community Directorate- embargo (18 December 2003, 17 November 2004), the General for Humanitarian Aid (ECHO) budget, and a few protection of human rights (resolution of 15 February 2001 projects also receive funding from the Community’s Non- and of 8 September 2005 on freedom of religion in the Governmental Organisation (NGO) budget. PRC), especially in Tibet (resolutions of 13 April 2000, 19 December 2002, 13 January 2005). The EP has urged the II. Taiwan Chinese government to respond to international calls for The EU, like most other countries, follows a ‘One China’ improvement in the human rights situation and to policy and thus has no diplomatic relations with Taiwan. guarantee democracy, freedom of expression, freedom of However, it recognises Taiwan as an economic and the media and political and religious freedom in China. On commercial entity, and has solid relations with Taiwan in the question of Taiwan, the EP rejected military threats and non-political areas, such as economic relations, science, called on both China and Taiwan to refrain from education and culture. Taiwan is the EU’s third largest provocative actions and to ind a negotiated solution to trading partner in Asia, after Japan and the PRC. The EU their diferences. The EP has also called upon Council and strongly supported Taiwan’s accession to the WTO which the Member States to maintain the EU embargo on trade in took place on 1 January 2002. In March 2003, the arms with the People’s Republic of China. Commission established a permanent Economic and Trade oice in Taiwan. The EU supports a peaceful resolution of g Xavier NUTTIN diferences between Taiwan and the PRC. 11/2005
Role of the European Parliament (Ep) The 21st EP–China Interparliamentary meeting took place in Beijing, Shanghai, Henan from 14 to 21 March 2004 while
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6.4.11. The countries of South Asia and the Indian Subcontinent Legal basis largely prevented any efective implementation of the Under Article 133 of the EC Treaty (ECT), responsibility for MoU. The main result of this otherwise limited commercial policy vis-à-vis third countries lies with the cooperation is the inclusion of SAARC in the General Community. Existing cooperation agreements are based on System of Preferences (GSP). Article 308 ECT. The new third-generation cooperation B. Bilateral relations agreements are based both on Article 133 and on Articles 1. India 181 and 300. India is the second most populous country in the world, the dominant political and military power in the region and Objectives one of the most dynamic economies among developing The EU’s objectives with regard to South Asia include countries, with, in particular, a fast-growing information strengthening its relations with the area, and consolidating technology sector. Its democracy is healthier and more the regional cooperation process represented by the South vibrant than ever and the country is an increasingly Asian Association for Regional Cooperation (SAARC). important player in global issues. Both the EU and India promote an efective multilateral approach. Achievements EU–India relations go back to the early 1960s: India was A. SAARC relations amongst the irst countries to set up diplomatic relations with the EEC. Europe is the South Asian countries’ most important trading partner and a major export market. Development — The irst cooperation agreement concluded in 1973 cooperation between the EU and the countries of South between the EC and India was superseded in 1981 by a Asia covers inancial and technical aid as well as economic more extensive agreement covering not only trade but cooperation. Priorities include regional stability, the ight also economic cooperation, and then in 1994 by a against terrorism and poverty reduction. SAARC was ‘third-generation’ agreement which provides for greater founded in 1985 and groups seven countries of the Indian cooperation, particularly in the sphere of trade. Based subcontinent (India, Pakistan, Bangladesh, Nepal, Sri Lanka, on adherence to the most-favoured-nation clause, it is Bhutan and the Maldives). For several reasons, SAARC has compatible with the World Trade Organisation rules. It not been as successful as other similar regional groupings. also includes dispute resolution and anti-dumping Despite structural constraints, the entry into force in 1995 measures. Cooperation covers the industrial and of SAPTA (SAARC Preferential Trading Arrangement) was a services sector, communications, energy and private positive achievement. investment. The EU–India Joint Commission oversees the entire ield of cooperation. In its dialogue with SAARC (Ministerial Troika, annual meetings in 1994–September 1999), the EU has — Since 2000, the EU and India have held a summit at consistently airmed an interest in strengthening links with government level each year. A science and technology SAARC as a regional organisation. This sentiment is equally agreement was signed in November 2001. consistently reciprocated by SAARC. The EU can help — The agreement at the EU–India summit in November consolidate the ongoing integration process through its 2004 to launch a strategic partnership and to economic inluence in the region, its own historical implement it through an action plan set the scene for experience of dealing with diversity, and its interest in crisis another quantum leap in relations. The action plan as prevention. The EU remains convinced that SAARC could well as a new joint political statement were agreed at play a useful role in regional cooperation and dialogue, the 6th Summit in Delhi on 7 September 2005. The although so far SAARC development has been less than action plan spells out concrete areas where the EU and breathtaking in the economic and political arena. India should become active and inluential Hence, the EC took the initiative in 1996 to sign a collaborators in global political, economic and social Memorandum of Understanding with the SAARC developments. Secretariat, ofering them technical assistance. The MoU Over the period 2002 to 2006 the EU will make available was explicitly signed at the technical level to overcome some EUR 225 million for development and economic political inertia. Yet, the internal problems of SAARC cooperation with India.
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01_2006_4661_txt_EN.indd 469 30-10-2007 14:55:56 2. Pakistan economic cooperation and post-conlict assistance is After being delayed on account of the country’s nuclear programmed. In its resolution of 20 November 2003, the EU programme and human rights abuses, a third-generation encouraged the main political parties in Sri Lanka to stick to cooperation agreement was signed in November 2001, and the ceaseire agreement and urged Sri Lanka’s President to ratiied by the European Parliament (EP) in April 2004. It is a do everything possible to achieve a fair and stable political non-preferential agreement with no inancial protocol. First, situation and to further the peace process. Following the it establishes respect for human rights and democratic Tsunami that hit Sri Lanka on 26 December 2004 and principles as an essential basis for cooperation. Secondly, caused massive looding, death and devastation, major the scope of cooperation between Pakistan and the assistance was provided to the country. Initial emergency Community will be signiicantly enlarged. Not only does relief assistance was sent through ECHO, quickly followed the agreement provide the framework for commercial, by large rehabilitation/reconstruction programmes with a economic and development cooperation, but it opens up EUR 95 million budget allocation. Flanking measures in possibilities for dialogue and cooperation in important new trade, isheries and early warning systems were also areas including the environment, regional cooperation, approved. science and technology, drugs and money laundering. 5. Nepal Lastly, the agreement formalises the dialogue — providing — On 20 November 1995 the European Union and Nepal regular meetings of a joint commission where issues in signed their irst cooperation agreement covering the relations with this important partner can be addressed. following areas: respect for human rights and Over the period 2002 to 2006 the EU will make available democratic principles, cooperation in trade, some EUR 165 million for development and economic development, science and technology, energy, cooperation with Pakistan. agriculture, the environment, and action to combat 3. Bangladesh drugs and AIDS. Relations with Bangladesh date back to 1973, shortly after — From 1977 onwards the EU has committed EUR 160 the country’s independence. million in development assistance, focusing on rural The commercial cooperation agreement signed in 1976 development, health, education, local development, has now been replaced by a new cooperation agreement, refugees and water management. EUR 615 000 was signed in 2000, and in force since March 2001. This newer made available in 2002 as a response to the growing agreement aims to support sustainable economic and instability in the country due to the Maoist guerrillas. social development of Bangladesh and particularly of the — For the period 2002 to 2006, EC cooperation strategy, poorest sections of its population, with special emphasis with a budget of EUR 70 million, will be based on the on women, taking into account its least developed country 10th ive-year plan which embraces poverty alleviation status. It focuses on trade and commercial cooperation, as the overriding objective. Agricultural production and development cooperation, environmental policies, the infrastructures, socio-economic development, establishment of a more favourable climate for private institutional strengthening and good governance, and investment, science and technology, the ight against drug alternative renewable rural energy are the most traicking and money laundering, as well as activities in the important objectives pursued by this strategy. ield of information, culture and communication. Moreover, due to the present situation, special attention Accordingly, the overarching objective of the EC and will be given to conlict prevention initiatives Bangladesh as agreed in the Country Strategy Paper 2002– 06 is poverty eradication through a strategy of sustained, 6. Bhutan rapid, pro-poor economic growth. Since 1976, total EU assistance to Bhutan started in 1982 and totalled about humanitarian aid and NGO co-inancing has amounted to EUR 46 million over the period 1982 to 2002. It focused on EUR 1 500 million. rural development and poverty reduction. The overall estimated EU allocation over the period 2002 to 2006 is 4. Sri Lanka EUR 15 million. Sri Lanka irst signed a cooperation agreement with the EU in 1975. A third generation agreement came into force in 7. The Maldives 1995, focusing on partnership, cooperation, and respect for Since 1981, the Maldives has received EUR 5 million in EU human rights and democracy. development assistance (projects in tourism and ish inspection). The Maldives has achieved buoyant growth Due to the civil war, a large part of EU assistance has been over the past two decades. The development of the through ECHO (EUR 8.3 million in 2002). Over the period tourism and isheries sectors, favourable external 2003 to 2005, EUR 61.32 million for rural development,
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conditions, inlows of external aid and good economic general, particularly through increased trade and management contributed to steady economic growth. The investment, and better coordination in the ields of Maldives’ social indicators have also shown signiicant cooperation and development with the most developed improvements. But the Maldives still faces several key countries in the region. It has emphasised the eforts made development challenges. Accordingly a further amount of to improve democratic freedoms, human and minority EUR 2 million for regional development with a clear focus rights, social rights, and health and environmental on environmental issues and capacity building in trade and protection regulations. An EP delegation maintains economic development is programmed for 2004. relations with the parliaments of the countries of the The country, also badly afected by the 2004 Tsunami, has region. been allocated EUR 16 million to build on the 2. Bilateral relations achievements of the humanitarian aid phase. The EP has passed numerous resolutions on the political 8. Afghanistan developments, including human rights, in the SAAR European Union relations with Afghanistan are irmly countries. within the wider international community’s relations with, (a) India and reconstruction eforts for, Afghanistan. While the EU The EP believes that there is a considerable potential for an (Eurocorps) and its Member States have contributed all-round bilateral relationship between the European militarily to Afghanistan (through ISAF), reconstruction and Union and India, given India’s values of democracy, cultural development aid is the pillar of political relations. The pluralism and a robust entrepreneurial spirit which are Commission is on track to deliver its 2002 Tokyo pledge of underpinned by free elections, an independent judiciary, a EUR 1 billion of reconstruction assistance over the period free national and regional press, active NGOs as well as an 2002 to 2006. Overall, the EU is the second-largest aid open and transparent civil society, and thus called for the donor to Afghanistan, after the United States. organisation of a comprehensive dialogue that covers all The EC’s eforts also included co-hosting a March 2003 aspects of bilateral relations, including issues relating to the Afghanistan High Level Strategic Forum, to which the non-proliferation of nuclear weapons. It has urged India to Afghanistan government invited key donors and continue the dialogue with Pakistan and welcomed India’s multilateral organisations. It covered the progress and eforts to strengthen regional cooperation between the future vision for state-building in Afghanistan, as well as the Member States of SAARC, in particular its eforts to long-term funding requirements for reconstruction. promote the South Asian Free Trade Area, including the free trade agreement with Sri Lanka. In the sixth term a In terms of security and tackling the drugs issue, the EU resolution on the EU–India strategic partnership was supplies inancial aid to support Germany and Italy in their adopted on 29 September 2005. lead role on law, order and justice, as well as actively supporting the UK in its lead role in the ight against poppy (b) Pakistan production. The EC is supplying EUR 65 million to help the The EP reminded Pakistan of the importance that the EU Afghan police impose law and order, another key attaches to respect for human rights as an integral part of component in Afghanistan’s ight against drugs, while it its external relations and of any cooperation agreement. It also inances a project to strengthen controls on the reiterated its call on the Commission to institute Afghanistan–Iran border so the authorities are better able cooperation programmes ofering active support to NGOs to interdict and stop drug smugglers. in the human rights ield (resolution of 5 April 2001). Its concerns over the fairness of the general elections of EC Representation in Kabul has been operational since October 2002 led the Council to postpone ratiication of February 2002. The ECHO Afghanistan oice opened in the 2001 cooperation agreement until April 2004. A new January 2002. An EU special representative has been sent resolution on human rights and democracy was adopted to Kabul in order to implement EU policy to Afghanistan, by on the same day. way of close contact with Afghan leaders and those of surrounding countries, to promote a stable government for (c) Bangladesh Afghanistan. The EP has expressed concern at the human rights situation (arbitrary arrests, detention, and torture) in Role of the European Parliament Bangladesh. It encouraged the Government of Bangladesh to protect human rights and apply democratic principles in 1. SAARC relations all areas, including their action to deal with rising crime The EP has recommended the strengthening of economic, rates. It called on the Commission to engage with the political and cultural ties between the EU and Asia in Government of Bangladesh under the EU–Bangladesh
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01_2006_4661_txt_EN.indd 471 30-10-2007 14:55:57 Cooperation Agreement to ensure that violations stop, (f) Afghanistan human rights are protected and the EP is kept informed The EP’s main contribution has been budgetary, (resolution of 21 November 2002). In the sixth term a maintaining an emphasis on reconstruction, de-mining and resolution on the political developments and security election support. The EP sent a delegation to Afghanistan situation was adopted on 14 April 2005. in September 2005 to observe the national legislative (d) Sri Lanka elections. The EP has repeatedly (18 May 2000; 14 March 2002; 20 Afghanistan has emerged in several EP debates. MEPs, for November 2003) stated its views on the political situation example, have raised worries about the kidnapping of aid in Sri Lanka, particularly drawing attention to the need for workers or the increase in the supply of opium in Europe, human rights to be respected and for support for the particularly from Afghanistan. The EP has passed several peace process in the resolution of the ethnic conlict resolutions. Since the fall of the Taliban it has covered issues between the Singhalese majority and the Tamil minority. like the freezing of Taliban-linked assets, repealing (e) Nepal embargoes on the state, etc. A recent EP resolution speciically on the situation in Afghanistan, based on the The EP expressed its deep concern at the breakdown of the own-initiative report by André Brie (EUL/NGL, D) and the ceaseire and the recent upsurge in violence in Nepal Foreign Afairs Committee, was adopted on 12 February leading to huge loss of life and injury. It urged the 2004. President Karzai visited the EU institutions in May Government of Nepal and the Maoist rebels to declare an 2005. Karzai addressed the EP in Strasbourg on 10 May 2005. immediate ceaseire (resolution of 23 October 2003). On 24 February 2005 the EP condemned the seizure of power by King Gyanendra and urged him to re-establish g Xavier NUTTIN parliamentary democracy. 11/2005
6.4.12. ASEAN and the Korean Peninsula
Legal basis Achievements Articles 133 and 308 of Treaty on European Union (EUT). I. Asean
Objectives A. Evolution The EU’s relationship with South-East Asia has the following Established in 1967, the Association of South East Asian aims: Nations (ASEAN) now includes, apart from the ive original — to promote peace, regional stability and security member nations (Indonesia, Malaysia, Philippines, through bilateral and multinational channels; Singapore, and Thailand), Brunei, Vietnam, Laos, Burma/ Myanmar and Cambodia. — to strengthen trade and investment relations; 1. The 1980 Cooperation Agreement — to support the development of the less prosperous countries; The EU/ASEAN relationship dates from 1972, when a Special Coordinating Committee of ASEAN was set up to — to promote human rights, democratic principles and deal with the EU. Since then the EU has built up an good governance; extensive network of commercial, economic and political — to cooperate in combating transnational crime and relations with ASEAN. Relations were formalised in 1980 terrorism; with the conclusion of a cooperation agreement. It sets out objectives for commercial, economic and development — to bring together peoples and cultures. cooperation and establishes a Joint Cooperation
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Committee to promote the various cooperation activities lagship projects were adopted, one for study grants, the envisaged by the two sides. Although it is a cooperation other for creating an ‘information highway’ between rather than a trade agreement, it provides for most- European and Asian researchers. Both parties called for favoured-nation treatment in accordance with the WTO. cultural links to be strengthened through the Europe–Asia 2. Developments after the 1980 agreement Foundation in Singapore (ASEF), the only institution from ASEM dialogue charged with promoting cultural, When Brunei (1984), Vietnam (1995), Laos (1997) and intellectual and people-to-people contacts between the Cambodia (1999) joined ASEAN, the EU agreed to the two regions. accession of these countries to the 1980 Cooperation Agreement. Burma/Myanmar became a member of ASEAN The ASEM 5 Summit was held in Hanoi from 7 to 9 October in 1997 but the agreement was not extended to that 2004 with the participation of 39 partners. It marked ASEM’s country. enlargement to the 10 new EU Member States as well as to three new countries from the Asian region (Cambodia, Laos ASEAN/EU relations have changed radically since the 1980 and Burma/Myanmar) that were not yet part of the process. agreement, above all as a result of the remarkable growth As a result, the ASEM process will now bring together 39 of South-East Asian countries and the evolution of ASEAN partners from Asia and Europe. The participation of Burma/ towards a political and economic community. In 1980 Myanmar was accepted with the condition that the relations were conducted on a donor-recipient basis. They participation of the Burmese government at the ASEM have evolved towards balanced trade, development of Summit would be lower than Head of State/Government investment, greater economic cooperation and a growing level. The ASEM 5 Summit reviewed international political dialogue. In 1991 it was agreed to revise the 1980 developments and global challenges, and addressed agreement, but negotiations remain blocked because of regional developments in Europe and Asia, including the human rights concerns about East Timor. ASEAN has been human rights situation in Burma/Myanmar. A particular given a primary role in the EU’s strategy for Asia, adopted in focus was on how to deepen the common commitment to July 1994. This strategy seeks to strengthen links between a multilateral approach to international relations. The Asia– Asia and Europe and is the EU response to the changing Europe economic partnership and recent developments at political and economic situation in the region. the World Trade Organisation (WTO) were discussed In September 2001, the European Commission presented alongside ways to take forward the dialogue of cultures its communication ‘Europe and Asia: A Strategic Framework and civilisations. for Enhanced Partnerships’, which identiied ASEAN as a key (b) ASEAN–EU Ministerial Meeting (AEMM) economic and political partner of the EC and emphasised its importance as a locomotive for overall relations Attended by Foreign Ministers every second year since between Europe and Asia. The Commission 1978, the AEMM is the highest institutional level providing communication ‘A New Partnership with South East Asia’, the strategic guidance for monitoring progress in political presented in July 2003, reairms the importance of the EC– dialogue. ASEAN partnership. After suspension due to the Burma/Myanmar problem, an AEMM held in December 2000 in Laos approved a joint B. Present relations declaration which called for a rapid resumption of talks 1. Political between the Burmese military junta in Rangoon and the (a) Asia–Europe meetings (ASEM) democratic opposition. The declaration also backed the Political and security relations between Asia and the major joint eforts of the international community and Indonesia powers have been undergoing a gradual and profound to quickly solve the refugee situation in East Timor, shift, following the end of the Cold War. The new Asia mentioned respect for human rights, and placed back on strategy was given a boost with the irst Asia–Europe track cooperation between the EU and ASEAN in economic Meeting (ASEM), an informal gathering of Heads of State, and regional security matters. held in Bangkok in 1996. ASEM has now developed into a At the 2003 AEMM in Brussels, the ministers agreed that structure with 3 pillars: political; economic and inancial; future cooperation should focus on non-traditional security cultural and intellectual. issues, establishing channels of communication between The third ASEM summit, in Seoul 2000, adopted a 10-year the ASEAN and EU secretariats as well as environmental ‘action framework’ and declared support for and cultural cooperation. ASEAN expressed a strong ‘rapprochement’ between the two Koreas. At the economic interest in drawing on EU experience in regional economic level, both sides supported a new WTO negotiation round integration. The ministers adopted an EU–ASEAN joint as soon as possible. As regards cultural cooperation, two declaration on terrorism airming their commitment to
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01_2006_4661_txt_EN.indd 473 30-10-2007 14:55:57 work together and to contribute to international eforts to integration and other key priority areas. Future cooperation ight terrorism. programmes should derive from the policy dialogue and At the 15th AEMM held in Indonesia in March 2005, the should be subject to a two-way value added test. The 2003 EU’s ‘New Partnership with South East Asia’ strategy was communication ‘A New Partnership with South East Asia’ conirmed as being at the origin of enhanced relations. The conirmed that the JCC would continue to steer the meeting decided to increase support for ASEAN integration implementation of the existing agreements by making available the EU’s own experience to start 3. Trade relations negotiations with Singapore and Thailand on bilateral In 2003, the EU was ASEAN’s second largest export market agreements and to develop concrete joint cooperation in and the third-largest trading partner after the United States the ight against terrorism. It noted the substantial progress and Japan. EU exports to ASEAN were estimated at EUR 39 under the TREATI (trade) initiative, and the launch of billion, while EU imports from ASEAN were valued at trilateral cooperation and of a joint EU–ASEAN visibility EUR 66 billion. The main exports from ASEAN to the EU are strategy. The Commission’s READI (dialogue instrument for machinery, agricultural products, and textiles. In general, non-trade issues) principle was endorsed. The meeting also both EU imports and exports of goods to ASEAN between provided the Commission with an occasion to brief the 2000 and 2003 have decreased, largely relecting global region on the EC’s substantial action plan for post-Tsunami trends, although at a slightly higher rate. In contrast, trade reconstruction. in services during the same period has increased for both (c) ASEAN Regional Forum (ARF) EU imports and exports of services with ASEAN. EU The EU participates as a dialogue partner in the ASEAN investment lows to ASEAN are recovering after the fall due Regional Forum (ARF), a body established in 1994 as the to the inancial crisis of 1997–98. main multilateral forum in the region on global and As a region, ASEAN has beneited signiicantly from the EU’s security issues. It is, in the EU’s view, an appropriate forum Generalised System of Preferences. Countries such as to address key regional security issues and build a Thailand and Indonesia have ‘graduated’ a number of consensus among Asian countries on such issues. The sectors where they have become competitive in the last recent positions taken by ARF on Burma/Myanmar and on few years, losing the beneit of the GSP for important the Korean peninsula are encouraging developments in products — in particular, ishery products for Thailand. this respect, although the ARF could be more active in Singapore, due to its advanced level of development, is addressing regional conlicts and tensions. On terrorism, excluded from the system. the EU has participated in the last intersessional meetings and supports the view that ARF is a good forum to C. The EU and Burma exchange information and for expert level cooperation. The In 1996, the European Council irst imposed an embargo EU as co-chair of the intersessional group in 2004–05 on export of goods which may be used for repression, (together with Cambodia) plays an important role in the refused visas for a list of junta oicials and froze funds held process. by those oicials abroad. When Burma joined ASEAN in 1997, the EU refused to allow the country to accede to the 2. Technical: the Joint Cooperation Committee (JCC) 1980 EU–ASEAN cooperation agreement, and EU–ASEAN This senior oicials-level committee, supported by a wide ministerial meetings were suspended. While strengthening range of sub-committees, is the only body formally sanctions, the changes made in spring 2000 made possible established by the 1980 Cooperation Agreement Burma’s participation in the EU–ASEAN ministerial meeting responsible for its implementation. It meets every 18 that year, in which the EU reairmed its willingness to months to discuss ongoing and future activities. It consists pursue dialogue with all parties concerned. The meeting of representatives of the European Commission (though EU made it possible for the European Troika to visit Rangoon in Member States are also represented) and the governments January 2001 and to have a meeting at senior oicial level of ASEAN. Since 1994 it has set up ive sub-committees with the Burmese opposition leader and Nobel Prize dealing with Trade and Investment, Economic and winner, Mrs Aung San Suu Kyi. In October 2002, the EU Industrial Cooperation, Science and Technology, Forestry, again urged the restoration of democracy, the pursuit of Environment, and Narcotics. The functioning of the JCC was national reconciliation and the protection of human rights blocked for a time following Burma’s accession to ASEAN, in Burma. but a meeting was held in May 1999, with Burma as a ‘passive presence’ only. The September 2001 JCC agreed on On 26 April 2004, the EU Common Position on Burma/ a new approach to cooperation; a clear focus on policy Myanmar was extended by the Council in view of the dialogue where the EU can support ASEAN regional military regime’s failure to make any signiicant progress in normalising administration of the country and addressing
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any of the EU’s concerns as regards human rights. On 3 Economic issues also featured prominently. The EU September 2004 EU foreign ministers agreed to Burma/ reairmed its support for South Korea’s economic Myanmar participation in the ASEM Summit on a level reform course, and welcomed the intensiication of below Head of State/Government (FM). At this time, bilateral economic and trade relations. ministers decided that further sanctions against the military regime would be implemented if it failed to release Aung B. The Democratic People’s Republic of Korea San Suu Kyi and open the National Convention to NLD 1. Diplomatic relations with the DPRK were established in participation in advance of Burma/Myanmar’s accession to May 2001. Since 1998, there have been annual political the Asia–Europe Meeting (ASEM) in October 2004. As the dialogue troika meetings between the EU and the DPRK military regime failed to meet these demands on time, the at regional director level. The last bilateral meeting was Council agreed to revise the common position and to in Pyongyang in November 2004. In addition, EU–DPRK further tighten sanctions on Rangoon. Speciically, the visa contacts are maintained through the HoMs in ban on senior military oicials travelling to the EU has been Pyongyang and possible ad hoc visits by North Korean extended while new restrictions have been authorised to authorities to Europe. On the issue of human rights, the prohibit EU companies from investing in Burmese state- EU had raised its concerns during this political dialogue. owned enterprises. The common position was renewed for 2. The basis of EU–DPRK economic ties is one-way aid. The one year on 25 April 2005. EC has provided various aid packages, including EUR 320 million in food and humanitarian aid between II. The Korean Peninsula 1995–2004, with the humanitarian assistance programme (through ECHO) alone worth EUR 93 million A. The Republic of Korea since 1995. The food aid/food security programme 1. Economic relations of the EU with South Korea are initially concentrated on cereals, maize, sugar and oil strong. From a Korean perspective, the EU was its donations, but it has been increasingly oriented towards fourth largest trading partner with EUR 39 billion of agricultural rehabilitation since 2000 (fertilisers and bilateral trade in 2003. The EU is the largest foreign agricultural inputs). investor too, with around EUR 3 billion of investment 3. Another forum of discussion to which the EU acceded lowing per year into South Korea, and the EU is also in 1997 is KEDO, the Korean Energy Development the largest foreign investor in terms of cumulative total Organisation, set up in 1994 to oversee the dismantling since 1962. EU investment in South Korea stood at of North Korea’s nuclear weapons programme. The USD 29 billion in 2003. renewed DPRK nuclear crisis from 2002 has impacted 2. A strong attachment to democratic values in South on the implementation of the KEDO project. In Korea, and the rapid development of this country’s November 2002, it was decided to stop shipments of market economy, have allowed the development of heavy fuel oil provided to the DPRK and, in November close political and economic links between South Korea 2003, to suspend construction activities on the site for and the EU. A new ‘Framework Agreement on Trade and one year until the end of November 2004, subsequently Cooperation’ was signed in 1996 and entered into force extended until the end of November 2005. In total, the in 2001. This agreement commits the parties to Commission has contributed EUR 120 million to the developing trade and investment and also provides for KEDO project since 1997. The current ive-year collaboration in the ields of justice, home afairs, agreement between the EU and KEDO, which is the science and culture. The agreement provides for a joint second one since 1996, expires on 31 December 2005. committee, regular summit meetings and a ministerial Continued membership would require a new troika. Today’s relationship between South Korea and agreement. the EU is founded on (1) increasingly shared political values, (2) strong economic links relecting large Role of the European Parliament bilateral trade and investment lows and (3) the EU’s The irst contacts between the European Parliament (EP) reiterated support for South Korea’s ‘sunshine’ policy of and the ASEAN countries took place in 1976, but it was only engagement with the North. in 1979 that regular meetings between the EP and the The Republic of Korea–EU Summit, on 9 October 2004, ASEAN Inter-parliamentary Organisation (AIPO) were was the second bilateral summit of its kind. Many issues established. The EP continuously emphasises the need to were discussed, including the resumption of the six- restore the democratic process in Burma and Indonesia. Party talks, South Korea’s participation in the G8 Global Following restrictions on the freedom of movement of Mrs Partnership against WMD, and the situation in Iraq. Aung San Suu Kyi, the EP invited the ASEAN countries to
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01_2006_4661_txt_EN.indd 475 30-10-2007 14:55:57 persuade the military regime of Burma to lift their death penalty and the end to religious persecution. The EP restrictions on her. Before the third Asia–Europe Summit has also adopted many resolutions with regard to political (ASEM 3), the EP called for the continuation of the ASEP and human rights in Cambodia and has invited the process (Asia–Europe parliamentary meetings) and for Cambodian Constitutional Council to rapidly approve the inclusion of a democratic clause in the agreement draft law for the trials of Khmer Rouge leaders concluded with the Asian countries. The EP called on several occasions on Vietnam to undertake in-depth g Xavier NUTTIN political reforms notably involving the abolition of the 11/2005
6.4.13 Australia and New zealand
Legal basis recent years bilateral agreements have been concluded on Article 133 of the EC Treaty (basis for the EU’s common trade in wine, cooperation in the ield of science and commercial policy). technology and standards and certiication. 2. Will to cooperate Objectives In June 1997 a joint declaration on EU–Australia relations The EU maintains strong historic and economic links with established a partnership for dialogue and cooperation Australia and New Zealand and intends to further in areas of common interest bilaterally and within strengthen its ties with both countries especially in view of international organisations. Among these are bilateral the increasing importance of the Asia–Paciic area. EU negotiations in the veterinary and plant-health fields, policy towards both countries concentrates on maintaining prospects for a new round of trade negotiations, the stable trade relations and deepening cooperation. Given accession of new members to the World Trade their historical dependence on farm exports to the UK, Organisation (WTO) and issues relating to climate both countries were afected by the UK’s accession to the change, the environment, marine science, EU: the Commonwealth preferential arrangements had to biotechnology and information and telecommunication be adapted to the EU’s agricultural policy. technologies. Another area of cooperation involves the coordination of development aid in the Pacific region. In January 1982, an agreement on uranium and the transfer Achievements of nuclear material to the EU was concluded for a period I. Australia of 30 years. B. Priorities for future cooperation A. Basic elements of relations At consultations in Brussels in April 2002, the parties agreed 1. Strong economic relations to take stock of developments in the relationship since the The EU has been Australia’s largest economic partner for signing of the joint declaration. The following areas were the past 11 years and in 2001 and 2002 accounted for 20 % identiied as high priorities over the following ive years: of all Australian overseas transactions compared with 17 % 1. Security and strategic issues for the USA and 13 % for Japan and ASEAN. The EU was also There should be increased sharing of assessments on the largest source of Australian imports (with a 22 % share international and regional security developments, with of total imports, mainly medicines, cars and particular attention to: telecommunications equipment) and the third-largest market for Australian exports (with a 12 % share of total — intensifying cooperation on counter-terrorism and exports, mainly coal, iron, wool and wine). The EU remains critical infrastructure protection by exchanging Australia’s largest partner in terms of trade in services (22 %) information on international terrorist networks and and is the leading investor in the country (accounting for protecting information infrastructure, and by 33 % of foreign investment in Australia). Total trade in supporting counter-terrorism capacity-building in the goods and services exceeded EUR 35 billion in 2002. In Asia–Paciic region;
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— enhancing dialogue on non-proliferation and export Increased cooperative activity in the ields of Intelligent control issues, particularly with regard to regulating Transport Systems (ITS) and sustainable transport strategies. trade in dual-use items and on respective engagement Close cooperation on transport, including the aviation with countries of concern; liberalisation agenda in multilateral fora such as the — developing bilateral cooperation between Australian International Civil Aviation Organisation, the Organisation law enforcement authorities and Europol. for Economic Cooperation and Development and the WTO 2. Trade (General Agreement on Trade in Services) and by working towards a bilateral agreement on relaxing ownership and Commitment to resolving outstanding issues in the control rules, inward investment opportunities, and bilateral wine agreement. opportunities to develop intermodal services in the Cooperation on the WTO Doha Development Agenda. respective markets. Notwithstanding diferences in some areas, joint eforts will 5. Environment continue to ensure an ambitious approach overall on market access issues, on rule-making issues and on issues On the basis of the existing framework of cooperation, related to development. Recognition of the importance continuing collaboration on climate change. In particular, and complexity of the negotiations on agriculture and speciic attention could be given to: commitment to reaching an outcome consistent with the — technology development and deployment; Doha declaration. As for developing countries, the parties — climate science, impacts and adaptation; will work together: — harmonisation of emissions monitoring, reporting, — to implement and promote policies to grant duty- and veriication and certiication procedures; and quota-free market access for least-developed countries; — evolution of mitigation commitments. — to assist these countries with access to afordable medicines; and Agreement to improve mutual understanding of respective approaches to environmental protection and how the — to deliver technical assistance and capacity-building approaches afect international policymaking and activities. respective and joint interests. Focus on resolving diferences on bilateral agriculture and 6. Development cooperation trade issues, including food safety and animal and plant Pursue opportunities for further collaboration in health matters, through intensiied consultations, development cooperation programmes in areas of mutual particularly in the Agricultural Trade and Marketing Experts’ interest, including through: Group. — assisting the recovery and nation-building processes in 3. Education, Science and Technology East Timor and the Solomon Islands; Having successfully initiated the irst Australia–EU pilot project on higher education cooperation, it was agreed — gearing programmes to build good governance and that a second pilot project be established on a similar economic growth in nations in the Paciic, particularly matching-funding basis when the necessary funding Papua New Guinea; and procedures are inalised. — providing support and funding for the Asia Paciic Development of an action plan designed to stimulate Leadership Forum on HIV/AIDS and Development. collaborative Australia–EU scientiic and technological 7. Migration and asylum projects within the sixth Framework Programme for Enhancement of information exchange and cooperation Research. on approaches to address the challenges posed by global Commitment to make optimal use of the Forum for migration, consulting closely in multilateral fora and European–Australian Science and Technology cooperation bilaterally. In particular, focus on development of (FEAST) as a key vehicle in this process. policymaking and practical cooperation with respect to: 4. Transport — asylum-seeker and refugee readmission to countries of Development of arrangements between the Australian irst asylum; Global Navigation Satellite System Coordination — improving capacity-building (including in border Committee and the European Commission to enable management) in third countries that are of mutual interest; cooperation associated with the Galileo Satellite Navigation — the integration of migrants and the link between project. development and migration;
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01_2006_4661_txt_EN.indd 477 30-10-2007 14:55:58 — exchange of information on traicking in human beings export destination in the EU, other countries, such as and related transnational crime; France, have also become more important. Total trade in — exchange of information on new technologies and goods and services approached EUR 7 billion in 2002. The electronic support structures to assist in combating EU accounts for 17 % of foreign direct investment in New irregular migration and identity and document fraud. Zealand. Similarly, the EU is among the prime destinations for investments from New Zealand, accounting for 28 % of II. New zealand New Zealand’s direct investment abroad. The importance of Europe as a reliable and stable partner has increased A. General following the Asian inancial crisis. The EU–New Zealand relationship was given a formal The Veterinary Agreement (1997) aims to facilitate trade in framework in the shape of the May 1999 joint declaration live animals and animal products while safeguarding public on relations between the two parties. and animal health and meeting consumer expectations in relation to the wholesomeness of food products. Despite A number of common goals are proclaimed, such as delay there is a common willingness to see the agreement support for democracy, the rule of law and respect for fully implemented. human rights, promotion of the efectiveness of the UN, cooperation on development issues in the South Paciic, The Mutual Recognition Agreement (1999) facilitates trade promotion of sustainable development and the protection in industrial products between the EU and New Zealand. It of the global environment. To this end several areas of covers exchanges estimated at more than EUR 500 million cooperation are identiied. in sectors such as medical devices, pharmaceutical goods and telecommunications terminal equipment. A parallel The joint declaration also sets up a consultative framework agreement was also signed with Australia. These in which such cooperation can take place: agreements are the irst mutual recognition agreements — regular political dialogue, including consultations at the EU has ever signed with a third country. ministerial level between the EU and New Zealand; — consultations as appropriate between oicials of both Role of the European Parliament sides to cover relevant aspects of the relationship. As with most other countries and regions of the world, the Several sectoral agreements between the EU and New European Parliament maintains regular inter-parliamentary Zealand complete the picture. Most notable among them contacts with Australia and New Zealand, through a are the following: standing delegation for relations with both countries. The irst interparliamentary meetings with both countries took — 1991: arrangement for cooperation in science and place in early 1981. As a rule, bilateral meetings should now technology; be held once per year. They are supplemented by a regular — 1997: agreement on sanitary measures applicable to exchange of views with the respective ambassadors. trade in live animals and animal products; Subjects discussed cover both bilateral issues, such as — 1998: agreement on mutual recognition in relation to agricultural policy and trade, and shared global concerns conformity assessment. ranging from environmental and climate issues to security challenges. B. Economic relations The EU is New Zealand’s second-largest trading partner g Stefan SCHULz after Australia. While the UK remains New Zealand’s irst 11/2005
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6.5. General development policy
6.5.1 A general survey of development policy
Legal basis granting certain privileges and, secondly, action at world — Development and cooperation policy in general: level. Articles 177–181 of the EC Treaty (ECT). A. The regional agreements — Cotonou Agreement and various association These include the Cotonou Partnership Agreement ("6.5.5.), agreements: Article 310 of the ECT. concluded with 77 African, Caribbean and Paciic states, — Generalised Scheme of Preferences and cooperation and agreements with the states of the southern and agreements: Article 133 of the ECT. eastern Mediterranean (Algeria, Morocco, Tunisia, Egypt, Jordan, Lebanon and Syria) ("6.4.5.). — Financial and technical assistance to Asian and Latin American developing countries: Article 308 of the ECT. This regional policy is essentially characterised by the fact that the agreements cover all forms of dialogue (commercial, technical, inancial, cultural and, in the most Objectives recent agreements, political). These characteristics are Article 177 of the ECT states that Community policy will enshrined in international treaties ratiied by the contribute to the general objective of developing and parliaments concerned, and the countries beneiting from consolidating democracy and the rule of law as well as them can decide what use they wish to make of the various fostering the sustainable economic and social cooperation instruments. Finally, this type of cooperation is development of the developing countries, their smooth ofered to the developing countries in speciic and gradual integration into the world economy and the geographical areas. The Trade, Development and campaign against poverty in those countries. Cooperation Agreement (TDCA) between the European The inclusion of development-policy provisions in the Treaty Union and South Africa, which was signed in Pretoria on establishing the European Community is politically 11 October 1999, exempliies this policy. signiicant, since it establishes development policy as a B. Action at world level Community policy in its own right. In addition to the 1. Scope formulation of general development policy objectives, which are adopted under the co-decision procedure, three This action includes the trade and cooperation agreements obligations are imposed on the Community and its Member of various types with the Latin American and Asian States. According to Article 178, the European Union shall countries ("6.4.8.), the trade regimes applicable to the take account of development objectives in the policies that developing countries ("6.5.2.), inancial and technical aid to it implements which are likely to afect developing countries. Asian and Latin American developing countries, Article 180 requires the European Union and the Member humanitarian aid ("6.5.3.), special funds and funds devoted States to coordinate their policies on development to the campaign against poverty. cooperation and to consult each other on their aid It therefore covers all forms of cooperation pursued with a programmes. According to Article 181, the Community and large number of developing countries (e.g. generalised the Member States shall, within their respective spheres of preferences and food aid) and speciic cooperation competence, cooperate with third countries and with the instruments designed to establish appropriate relations competent international organisations. with each country (e.g. trade agreements with various Asian and Latin American countries) and with certain Achievements groups of countries in these two continents (in Latin America with Mercosur, the Andean Group and Central The implementation of the European Union’s development America and in Asia with ASEAN). policy takes two main forms: irst, regional agreements
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01_2006_4661_txt_EN.indd 479 30-10-2007 14:55:58 2. Strategic approach that of respecting human rights and fundamental UN international conferences on the environment, human freedoms ("6.1.2); rights, population, social development, the role of women — Regulation (EC) No 625/2004 of the European and food security have demonstrated that countries can Parliament and of the Council of 31 March 2004 agree on common values and principles relating to key extending and amending Regulation (EC) No 1659/1998 development factors. These processes have already led to on decentralised cooperation; signiicant changes in the perception of aid and its role in development. These changes fall within four main — Regulation (EC) No 1568/2003 of the European categories: Parliament and of the Council of 15 July 2003 on aid to ight poverty diseases (HIV/AIDS, tuberculosis and (a) enhancement of the political dimension: human rights, malaria) in developing countries; democratic principles, the rule of law and good governance; — Regulation (EC) No 1567/2003 of the European Parliament and of the Council of 15 July 2003 on aid for (b) consolidation of links between relief, rehabilitation and policies and actions on reproductive and sexual health development cooperation; and rights in developing countries; (c) a new conception of the purpose of aid and a — Regulation 1724/2001 of the European Parliament and redeinition of the parties’ respective roles: emphasis is of the Council of 23 July 2001 concerning action against placed on environment policy, local capacity-building anti-personnel landmines in developing countries; and the role of civil society as well as on new ways of including other development agents, especially in the — Regulation (EC) No 2493/2000 of the European private sector; Parliament and of the Council of 7 November 2000 on measures to promote the full integration of the (d) a change in priorities, efected by reducing intervention environmental dimension in the development process in productive sectors and integrating new areas of of developing countries; activity: — Council Regulation (EC) No 1658/98 of 17 July 1998 on — actions to promote environmental protection, the co-inancing operations with European non- management of natural resources and sustainable governmental development organisations (NGOs) in development, involving environmental-impact ields of interest to the developing countries. studies for all projects as well as inancial assistance for speciic environmental programmes and projects; Almost all these regulations will be incorporated in the new Development Cooperation Instrument (DCI), which will — the creation of an instrument for structural- come into force in 2007. Parliament and the Council adopt adjustment support at macroeconomic and sectoral the DCI under the co-decision procedure. levels; — institutional reforms, development of administrative C. The Declaration on Development Policy capacity, building civil society, development of a In 2000, the Commission proposed a new declaration on more participatory approach and decentralised development policy. The priorities of development policy cooperation; a new conception of the economic role also take account of the new international context, past of the state, policies to foster private-sector experience and social and economic developments. These development and support for trade development. priorities include: 3. Legislative framework — strategies designed to bolster the ight against poverty; In recent years the Council and Parliament have jointly — increased regional cooperation with the aim of adopted a series of regulations based on Article 179 of the developing regional economies and growth in ECT, with the aim of creating a clear legal basis for various recognition of their important role in conlict development initiatives: prevention; — Regulation (EC) No 2240/2004 of the European — integrating developing countries into the world Parliament and of the Council of 15 December 2004 economy, allowing the poorest countries to beneit amending Council Regulation (EC) No 975/1999 laying from special treatment with regard to trade and debt down the requirements for the implementation of relief; development cooperation operations which contribute to the general objective of developing and — private-sector development and economic reforms consolidating democracy and the rule of law and to designed to achieve diversiication and productivity growth;
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— respect for human rights, the rule of law and democratic Role of the European Parliament principles, especially women’s and children’s rights; Development policy is a Community policy, in respect of — good governance as an essential requirement of which the European Parliament (EP/Parliament) has the development policy and, consequently, the power of co-decision. It is the only area of foreign policy in establishment of transparent and accountable systems which the Council shares legislative powers with of government and administration; Parliament. — ownership: if stakeholders are encouraged, they will In its report on complementarity between Community and grow in number, organise and train themselves fully Member State policies on development cooperation, autonomously, form networks and build partnerships Parliament expressed the view that consistency of action with each other and with public entities to provide a on the part of the EU was a priority if the efectiveness and sustainable long-term approach to development. credibility of aid were to be enhanced. D. The consensus on development policy Parliament felt the need to make a pronouncement on On 20 December 2005, the three European political decentralised cooperation, which serves to bring aid closer institutions — the Council, Parliament and the Commission to its beneiciaries and to take more account of the real — jointly adopted the irst European consensus on the EU’s needs of the populations of developing countries. The EP development policy. The text of that consensus is, in fact, a believes that the beneiciaries of aid should include social revision of the Declaration on the Development Policy of movements campaigning for democracy and human the EC but primarily it is the irst text common to the rights. Community institutions and the Member States. In fact the In the work of the EP, special emphasis is placed on public new single set of principles is intended to guide the actions health. Parliament supports an increase in the amount of the Commission and of the 25 Member States. It is allocated to the Global Fund to Fight AIDS, Tuberculosis entirely consistent with the Millennium Development Goals and Malaria and the reinforcement of Community action to adopted by the United Nations in the year 2000. The foster reproductive and sexual rights. priority of the new development policy is the eradication of Parliament has secured an increase in the budget allocated poverty. The policy is based on promotion of good to environmental-protection programmes in the governance, democracy and human rights and on framework of development policy. partnership with the developing countries, in line with the Commission’s declaration of 2000. As this is a joint text, the consensus emphasises the consistency needed between g Armelle DOUAUD 09/2006 measures by the Community and the Member States, in a spirit of complementarity, so the European Union really ofers a common vision of development.
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Legal basis the changing environment of the multilateral trading Article 133 EC Treaty (amended by the Treaty of Nice). system. Its main features were as follows. In the manufacturing sector, all quantitative restrictions Objectives were abolished in the case of the 36 least developed countries. — Helping the developing countries to expand sales of their products on the markets of the industrialised The mechanism of preferential limits applicable to ‘sensitive’ countries. industrial products was modiied. Under the original system, all beneiciary countries were monitored globally — Promoting the industrialisation of the developing on an identical basis. This was replaced by a new system countries through customs duty reductions or which, for each individual product, identiied the highly exemptions for inished or semi-inished industrial competitive supplier countries; restrictions could now be products and certain agricultural products. imposed on these countries through the rigorous application of tarif quotas ixed by country, while access Achievements for the other supplier countries was regulated by a system A. Historical evolution of lexible/target ceilings for each country. The Community was the irst to apply, with efect from 1 July The 10-year revision scheduled took place on 1 January 1971, the General Scheme of Preferences (GSP) to developing 1995, when a new scheme entered into force, based on the countries belonging to the ‘Group of 77’ within the United Commission’s guidelines and approved by the Council on Nations Conference on Trade and Development (Unctad) and 19 December 1994. to the overseas countries and territories of the Member States. In 1995 the system covered 145 countries and B. The current GSP (1995–2004) independent territories and 25 territories and states The EU’s GSP is implemented following a cycle of 10 years. dependent on the Member States of the Community or third The present cycle began in 1995 and will expire in 2004. countries. Albania, Estonia, Lithuania and Latvia were added This arrangement is laid down in Council Regulation in 1991, and the countries of the former Soviet Union in 1993. 2820/98 of 21 December 1998 which was amended in 2001 to take into account the GSP cycles (the 3rd GSP cycle 1. The irst scheme was due to inish in 2001, the EU’s third scheme GSP is not It applied from 1971 to 1980 to developing countries due to inish until 2004), so Regulation 2501/2001 belonging to the Group of 77 within Unctad. The main extended arrangements to bridge this gap. In managing features were preferential tarif advantages granted the GSP, the Commission is assisted by the Committee on unilaterally and on a non-reciprocal basis for: Generalised Preferences, composed of representatives of — processed agricultural products (tarif reductions were Member States and chaired by the Commission. The allowed on a given number of scheduled products); Committee can be consulted or can express an opinion on certain draft implementation measures. — inished and semi-inished industrial products (the recipient countries were able to export these products 1. General rules to the Community free of customs duty up to a ceiling GSP preferences are granted to exports of speciic products ixed annually for each country and products. special from individual countries. The GSP operates at two levels: measures were introduced for, in particular, textiles and — the general arrangements providing basic trade coir and jute products). preferences following the traditional objectives of These principles remained intact, but they were modiied economic development; and adapted each year, while ensuring that the recipient — other arrangements geared to fostering sustainable countries received enough information to take advantage development and providing special incentives related of the beneits ofered by the GSP. to respect for social rights and environmental 2. The second scheme protection. The latter arrangements grant additional It was initially to apply for 10 years (1980–90). Provision was preferences upon the request of countries which included, however, for an assessment to be made of its respect certain social or environmental standards laid operation to allow for updates and adjustments in light of down in certain international agreements.
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2. Beneiciary countries (c) Exceptions Originally preferences had to be ‘generalised’, i.e. they had If imports from a country in a speciic sector exceed 25 % of to be granted to all developing countries. Membership of all imports into the EU from all beneiciary countries in that the Group of 77, created by developing countries, is sector during any given year, exports from that country in considered a criterion for being eligible for GSP treatment. that sector do not beneit from GSP treatment regardless of China and the ‘economies in transition’ that emerged after its level of development. This provision is commonly the dismantling of the former Soviet Union, have been known as the ‘lion’s share clause’. It is also to be noted that granted similar treatment to the developing countries. A the graduation mechanism does not apply to countries country may be excluded from the beneits of the GSP if its whose exports to the EU in a given sector do not exceed per capita income and/or value of its manufactured exports 2 % of all beneiciary countries’ annual exports to the EU in are too high. At present, Hong Kong, Singapore and South that sector. This exception is known as the ‘minimal share Korea have been excluded on the basis of these criteria. clause’. 3. General arrangements 4. Special Arrangements The GSP is a trade policy instrument aimed at fulilling (a) Least developed countries development objectives. The tarif modulation mechanism The EU’s GSP provides more favourable treatment to least is based on trade policy considerations. The graduation developed countries (LDCs) recognised as such by the mechanism and the special arrangements represent the UN. The additional advantages include duty-free access development component of the general GSP for all industrial and agricultural products listed in the arrangements. regulation. Treatment for LDCs has been improved over (a) Tarif modulation the years: Council Regulation 602/98 of 9 March 1998 Since 1995, trade preferences under the GSP have been extended the coverage of both Regulation 3281/94 and granted without quotas or quantitative restrictions. Instead, Regulation 1256/96 concerning the Community’s preferences are set according to a modulation mechanism. schemes of generalised tarif preferences for LDCs. In Depending on its sensitivity, each product is classiied in February 2001, the Council adopted Regulation 416/2001, one of four categories. The four categories are as follows: the so-called ‘Everything but Arms’ (EBA) regulation, thus granting duty-free access, without quantitative — very sensitive products, for which the preferential tarif restrictions, to the imports of all products from LDCs is 85 % of the normal Common Customs Tarif (CCT); except arms and munitions. Only imports of fresh — sensitive products, for which the preferential tarif is bananas, rice and sugar are not fully liberalised. Duty free 70 % of the CCT rate; access will only be granted in 2006 (bananas) and 2009 (rice and sugar). The Commission expects the preferential — semi-sensitive products, for which the preferential tarif treatment to result in growing access to the European is 35 % of the CCT rate; market and in turn reinforce the EBA’s impact on — non-sensitive products, which enter the EU’s market investments and diversiication of production in duty-free. beneiciary countries. According to a safeguard clause, the beneit of GSP (b) Special arrangements supporting measures to combat preferences may be suspended for certain products drugs originating from certain countries in the event that those Since 1990 special measures, (duty-free access for imports ‘cause or threaten to cause serious diiculties to a agricultural and industrial exports) have been granted to Community producer’. countries of the Andean Community (Bolivia, Colombia, (b) Gradation Ecuador, Peru and Venezuela) on the grounds that the Provisions are necessary to make sure that more developed development of these countries is seriously hampered by countries do not use the preferences and harm weaker drug production. Special arrangements aim to create economies. Therefore provisions determine whether a export opportunities for substitution crops and to improve given sector in a given country is in a position to face economic and social development, in particular through international competition without beneiting from the GSP. industrialisation. A development index and a specialisation index apply. The These special arrangements have been extended to the former index is based on that country’s income per capita Member States of the Central American Common Market and its level of exports of manufactured products. The latter (Costa Rica, Guatemala, Honduras, Nicaragua, El Salvador), index is based on that country’s share of EU imports in a Panama and more recently, Pakistan. speciic sector.
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01_2006_4661_txt_EN.indd 483 30-10-2007 14:55:59 (c) Special incentives and developing countries by allowing products from the Since 1995, the EU’s GSP scheme has acquired an additional EU to be considered as originating in the beneiciary development orientated dimension by providing special country processing them. incentives rewarding compliance with international social C. The new GSP and environmental standards. To qualify under the social policy incentive clause, countries must be able to provide The new GSP will come into force on 1 January 2006 proof of compliance with International Labour Organisation although a provisional form of the GSP plus has been fast- (ILO) Convention No 87 on the freedom of association, No tracked to be in place from 1 July 2005. The eligibility of 98 on the right to organise and to bargain collectively and countries placed in the GSP Plus incentive scheme will be No 138 on child labour. In order to qualify under the conirmed by an assessment of their efective environmental clause, countries must demonstrate that implementation of core human and labour rights, good they efectively apply ITTO (International Tropical Timber governance and environmental conventions before the Organisation) standards for the sustainable management of beginning of 2006. tropical forests. The revised system is designed to be simpler, more The special incentive clauses allow for a signiicant increase transparent and more stable. The new GSP will remain in the preferential margin. For industrial products the unchanged until the end of 2008 hence providing stability preferential margin could almost be doubled. The and predictability for importers and exporters. At the end advantage is slightly less for agricultural products than for of this period, the allocation of preferences will be reviewed industrial products. to better meet the evolving strengths and development needs of each country. 5. Temporary withdrawal There will be three schemes instead of ive: The beneit of GSP preferences may be temporarily withdrawn in whole or in part for products originating in a — General scheme: product coverage increases from country in one of the following cases: about 6 900 to about 7 200. It will incorporate 300 additional products mostly in the agriculture and ishery — practice of any form of slavery or forced labour; sectors of interest for developing countries; — export of goods made by prison labour; — There will be a new ‘GSP Plus’ scheme for especially — manifest shortcomings in customs controls on export, vulnerable countries with special development needs. It transit of drugs, or failure to comply with international will cover around 7 200 products which can enter the conventions on money laundering; EU duty free. The beneiciaries must meet a number of — fraud or failure to provide administrative cooperation as criteria including ratiication and efective application of required for the veriication of certiicates of origin forms; 27 key international conventions on sustainable development and good governance; — manifest cases of unfair trading practices; — ‘Everything but Arms’ will remain unchanged. — infringements of the objectives of international conventions such as NAFO (Northwest Atlantic Fisheries 1. The ‘GSP Plus’: a new deal for vulnerable countries Organisation) concerning the conservation of ish To beneit from ‘GSP Plus’, countries need to demonstrate resources. that their economies are poorly diversiied and therefore dependent and vulnerable. Poor diversiication and 6. Rules of origin dependence is deined as meaning that the ive largest Rules of origin are designed to ensure that eligible products sections of its GSP-covered imports to the Community have actually been produced in the exporting developing must represent more than 75 % of its total GSP-covered country. The whole of the preferential GSP scheme is imports. subject to compliance with the conditions governing the origin of products eligible for preferences. GSP-covered imports from that country must also represent less than 1 % of total EU imports under GSP. Determining a product’s origin is particularly important where two or more countries have been involved in its They also have to have ratiied and efectively implemented manufacture. ‘Regional cumulation of origin’ is a special 27 key international conventions on sustainable arrangement designed to foster regional economic development and good governance. integration between developing countries by a waiver of 2. A simpler mechanism for graduation certain conditions pertaining to the determination of Certain products from GSP beneiciaries can be graduated origin. ‘Donor country content’ is a special arrangement from the scheme if they become competitive on the EU designed to foster industrial cooperation between the EU market. This is a sign that these products no longer need
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the GSP to boost their exportations. Thus, graduation is not trade agreements are negotiated by the Commission on a penalty, but indicates that the GSP has successfully the basis of negotiating directives adopted by the Council performed its function, at least in relation to the country and in consultation with a special committee appointed by and product in question. This ensures that the GSP focuses the Council called ‘The Article 133 Committee’. The Council on the countries most in need and helps them play a then concludes these agreements without requiring EP greater role in international trade. approval. Changes will be made to the graduation mechanism to Thus, the EP was consulted only for opinion at the time of make it simpler in the new system. The current criteria the 2005 reform of the Council regulation on the (share of the GSP imports, development index and export- generalised tarif preferences granted to developing specialisation index) have been replaced with a single countries. straightforward criterion: share of the Community market The Treaty establishing a Constitution for Europe provided expressed as a share of exports from GSP countries. This that the ordinary legislative procedure would apply to share would be 15 % with 12.5 % for textiles and 12.5 % for trade policy and that all trade agreements from now on clothing. would be subjected to EP approval (art.III-325-6) and that Graduation will be assessed at the end of 2008, except in the EP would be kept informed of progress of the the case of textiles and clothing which will be reviewed negotiations (art.III-315-3). annually to properly relect the possibility of sharp increases in textile and clothing exports. g Dominique DELAUNAy 06/2006 Role of the European Parliament The current treaties do not grant any legislative power to the European Parliament (EP) as regards trade policy. The
6.5.3. Humanitarian aid
Legal basis — to cope with the consequences of population Article 179 of the EC Treaty. movements (refugees, displaced people and returnees) caused by natural and man-made disasters; Objectives — to ensure preparedness for risks of natural disasters or comparable exceptional circumstances and use a According to Council Regulation (EC) 1257/96 of 20 June suitable rapid early-warning and intervention system; 1996, the Community’s humanitarian aid shall comprise assistance, relief and protection operations on a non- — to support civil operations to protect the victims of discriminatory basis to help people in third countries, ighting or comparable emergencies, in accordance particularly the most vulnerable among them, in particular: with current international agreements. — to save and preserve life during emergencies and their immediate aftermath and natural disasters; Achievements — to provide the necessary assistance and relief to people The Community has been involved in humanitarian aid afected by long-lasting crises arising, in particular, from operations since the end of the 1960s. The significant outbreaks of ighting or wars; amount of aid supplied since the late 1980s has made it a key element of the Community’s international policy. — to help inance the transport of aid and eforts to ensure The EU has now become the world’s largest provider of that it is accessible to those for whom it is intended; humanitarian aid. Since 1992, it operates this aid — to carry out short-term rehabilitation and reconstruction through ECHO (European Office for Emergency work, especially on infrastructure and equipment, with a Humanitarian Aid). view to facilitating the arrival of relief;
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01_2006_4661_txt_EN.indd 485 30-10-2007 14:55:59 A. Purpose of ECHO C. Recent initiatives to enhance eiciency ECHO was set up with the aim of centralising the 1. Capacity for urgency Commission’s humanitarian aid operations and thereby On 6 June 2001, the Commission adopted a new decision organising them more efectively. procedure for ‘primary emergency’ humanitarian aid Beyond the funding of humanitarian aid, ECHO: situations. The new procedure allows the Commission to take formal funding decisions within 24 to 72 hours of the — carries out feasibility studies for its humanitarian onset of new humanitarian disasters and to release the operations; necessary funds quickly through ‘fast-track’ budgetary — monitors humanitarian projects and sets up procedures. As a result, during the tsunami that devastated coordination arrangements; South-East Asia at the end of 2004 or during the Kashmir — promotes and coordinates disaster prevention earthquake, ECHO was able to mobilise EUR 3 million from measures by training specialists, strengthening the very irst day. institutions and running pilot micro-projects; In order to be able to respond to major new emergencies — inances humanitarian landmine clearance operations and crises, the Commission may also request extra funds and provides information for people in afected areas from the EC budget’s emergency reserve from the about the dangers of anti-personnel mines; Budgetary Authority, namely the Council and Parliament. EUR 200 million is potentially available for this purpose. — organises training programmes and gives its partners technical assistance; 2. Disaster prevention ECHO has conirmed its readiness for greater involvement in — raises public awareness about humanitarian issues in disaster prevention and preparedness through its proactive Europe and elsewhere. and regional approach. The Dipecho programme, which B. Gradual improvement of the instrument aims to fund disaster preparedness activities, came into A number of measures have been adopted over the years efect in 1998 and operates within regional frameworks. The to ensure that the aid is managed in a sound and efective objective of the action plans is to remedy shortcomings in manner: disaster prevention and preparedness systems and ensure consistency. The activities cover human resource — the signature of a framework partnership contract with development, improvement of response capabilities and over 200 partners providing for greater lexibility in the implementation of demonstration micro-projects. Action allocation of ECHO funding and management plans are being prepared for disaster-prone regions, i.e. procedures which promote responsibility; South-East Asia and Bangladesh, Central America and the — the adoption of a new organisational structure of ECHO Caribbean, Andean Community, South Asia, Central Asia in February 1996 including the creation of three new and sub-Saharan Africa. The plans are prepared on the basis units. ECHO is now structured so that the management of analysis and regional consultations. Since its creation, of resources is separate from the evaluation of Dipecho has inanced more than 319 projects throughout humanitarian requirements and the preparation of the world to the tune of EUR 78 million. In 2004, ECHO contracts with partners; allocated EUR 13.7 million to projects in Central America, Central Asia and South-East Asia. — the setting-up of an evaluation unit in 1996 helped to strengthen the monitoring and efectiveness of D. Scope and destination of the action humanitarian operations; 1. On the whole — the inancial audits of ECHO’s principal partners; To date, ECHO has provided almost EUR 6 500 million of — the enhancement of coordination with the Member humanitarian aid. ECHO is active in more than 30 conlict States and other humanitarian actors; zones and more than 85 countries worldwide and provides an essential lifeline to 40–50 million vulnerable people. The — the development during 2001 of a local information annual budget managed by ECHO totals more than system HOLIS (Humanitarian Office Local Information EUR 500 million. System) to integrate existing information systems such as ECHO’s contract database HOPE, with 2. In 2004 sophisticated management systems currently being The inancial resources allocated to ECHO for 2004 totalled developed. EUR 495.5 million. Following the tsunami at the end of December, EUR 100 million of the reserve was mobilised at the beginning of January.
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3. In 2005 Role of the European Parliament Just under EUR 500 million was set aside under the 2005 Through its opinions and resolutions the European budget, to which EUR 135 million was added from the Parliament (EP) has always expressed its concern with reserve following the tsunami. The priority areas were regard to humanitarian aid and thus brought considerable Africa, Asia and the Northern Caucasus. ECHO continued to pressure to bear for a constant improvement to, and allocate signiicant resources to the rebuilding of the development of, the range of instruments. The idea of countries afected by the tsunami. The Commission’s creating ECHO originated in the EP. Humanitarian Oice also gave priority to the ‘forgotten crises’: Thailand, Myanmar, Nepal, Indonesia, Tajikistan, As the institution for adopting the EU budget, the EP has Chechnya, Sahrawi refugees, Somalia and Uganda. EUR 123 insisted every year on an increase in the appropriations for million — 20 % of the 2005 budget — was allocated to humanitarian aid, not only in general but also for speciic these disastrous situations. regions or countries. It has also frequently sent delegations to study the situation of local populations on the ground, 4. In 2006 to enable it to make speciic proposals to improve aid. The budget has remained stable. Humanitarian aid has It is also worth noting the many resolutions on the been of fundamental importance in assisting the civilian situation in various trouble spots where people are in population after international aid was withdrawn from the particular need. Over the past few years the EP has Palestinian Authority. EUR 50 million has been granted to concerned itself several times on the basis of current victims of the war in Lebanon during the summer. events with the Great Lakes Region, Sudan, Ethiopia and Afghanistan, the African Great Lakes Region and Darfur are Eritrea, Niger, Zimbabwe, Haiti, Nepal and the Democratic still large-scale areas of ECHO involvement. The People’s Republic of Korea, among others. Commission’s humanitarian oice also gives priority to the ‘forgotten crises’: Thailand, Myanmar, Nepal, Indonesia, Tajikistan, Sahrawi refugees, Somalia and Uganda. g Armelle DOUAUD 09/2006
6.5.4. Food aid and food security
Legal basis food security pursues the irst millennium development Article 179 of the EC Treaty. goal: cutting extreme poverty and hunger by half before 2015. As was previously the case, humanitarian food aid is part of humanitarian aid. Objectives Food aid was initially managed according to the rules of Achievements the common agricultural policy in order to dispose of surpluses. Over the years food aid policy has gradually been A. General principles reformed, which has detached it from the common Regulation (EC) No 1726/2001 of the European Parliament agricultural policy and integrated it more irmly into the and of the Council of 23 July 2001 amending Regulation Union’s development policy in response to concerns about (EC) No 1292/96 of 27 June 1996 (adopted on 15 June food security. In fact, food aid imported from rich countries 2000) on food-aid policy and food-aid management and can destroy local or neighbouring markets and does not special operations in support of food security laid down the solve food security problems in the long term. following principles: A new multiannual inancial framework will apply from — food aid is an important feature of the Community’s 2007 ("1.5.2.). These new budget provisions are development cooperation policy; accompanied by a simpliication of the legislative — food aid must be integrated into the developing framework. The entry into force of new instruments and countries’ policies for the improvement of their food thematic programmes for external relations has modiied security, in particular through the establishment of food previous regulations. The new thematic programme for
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01_2006_4661_txt_EN.indd 487 30-10-2007 14:56:00 strategies aimed at alleviating poverty and geared to — including principles for maximising the impact, achieving the ultimate goal of making food aid efectiveness and quality of the food aid provided as a superluous; tool in support of food security; — food aid and operations in support of food security — providing a framework for cooperation, coordination must be taken into account as objectives in all and information-sharing among members and food Community policies likely to afect developing aid-related matters to achieve greater eiciency in all countries, in particular from the point of view of aspects of food-aid operations and better coherence economic reforms and structural adjustment; between food aid and other policy instruments. — care must be taken to ensure that food aid has no (b) Categories of beneiciaries adverse efects on local production, distribution, Food aid under the convention may be provided to: transport and marketing capacities; — least developed countries; — food security should help the populations of — low-income countries; developing countries and regions to improve their own food production at household, local, national and — lower middle-income countries and other countries regional levels; included in the World Trade Organisation (WTO) list of net food-importing developing countries, when food — early-warning systems concerning the food situation emergencies are declared or when food aid is targeted can be supported by the Community, along with food at vulnerable groups. storage programmes to improve food security in recipient countries; 2. Means and methods — the Council is to determine the Community share of the Under the convention (Article 3) the EU and its Member overall amount of aid, either in tonnes of wheat States have a global annual commitment of 1 320 000 equivalent or in value or in a combination of tonnage tonnes of wheat equivalent. The total indicative value of and value, laid down in the Food Aid Convention as the the EU and Member States’ annual commitment amounts total contribution of both the Community and its to EUR 422 million. This igure represents the total Member States. estimated cost, including transport and other operational costs associated with food-aid operations. Food-aid operations of a humanitarian nature are carried out in the framework of the rules on humanitarian aid EU operations in support of food security consist in either supplying food products or inancing development policy, thus they are administered by ECHO ("6.5.3.). projects relating to food security. With the new rules on development cooperation, food security will be an important link between humanitarian Among the products to be supplied as food aid the largest aid and development but also an important aspect of category is cereals. Wheat and white maize are the main development policy. The principles guiding food security cereals allocated to Africa. Rice is consumed largely in Asia are similar to those of the 2001 regulation. but also in many other developing countries. Pulses, in particular beans, are rich in protein and often particularly B. The Food Aid Convention of 13 April 1999 suited to the diets of the recipient groups. These products This Convention replaces the Food Aid Convention of 1995. were formerly included under ‘other products’, a category which is not accounted for in tonnes but by value, since it 1. Objectives covers a wide variety of products such as groundnut oil, (a) Types of situation dried ish, meat, tinned foods, tomato puree, fruit and The aim of the convention is to contribute to world food seeds. Other categories are vegetable oil, sugar, milk security and to improve the ability of the international powder and butter oil. Vegetable oil adds fat to the diet community to respond to emergency food situations and while sugar is useful as an energy booster in food- other food needs of developing countries by: supplement programmes for severely undernourished — making appropriate levels of food aid available on a groups of refugees and displaced persons. predictable basis; In addition to food products, seeds, fertilisers, tools and — encouraging member countries to ensure that the food other agricultural inputs may also be supplied as part of aid provided is aimed particularly at the alleviation of farm-rehabilitation programmes aimed at improving the poverty and hunger of the most vulnerable groups and recipients’ food security. is consistent with agricultural development in those Financial allocations intended to help the countries countries; improve their food security may be used to inance storage
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programmes or early-warning systems, public information About 40 countries — 26 in Africa — were given priority for and education programmes, the purchase of tools and the period 2004–06, so as not to disperse resources and to inputs, farm-rehabilitation projects and marketing. make aid more efective in the beneiciary countries. C. Level and destination of aid Role of the European Parliament 1. Volume of aid (a) In general The European Parliament: 2001 saw a shift in focus in the Commission’s — adopted the regulation on the aid and food security implementation of its food-aid and food-security policy in co-decision; programme. The Commission’s aim was to integrate the — called on the Commission to support the priority use of food-security requirement more fully into the overall products deriving from Community agricultural development strategy of the beneiciary countries referred production in the implementation of the Food Aid to in the country strategy papers and poverty reduction Convention (resolution of 4 May 1999); strategy papers. The programme also focused on increased ownership of the programmes and policies by national — called for access to food in suicient quantities and of a partners — governments and civil society. The annual suicient quality to be recognised as a fundamental appropriations available in the budget for food-aid and human right for the people of the developing countries food-security operations in developing countries amount and issued an appeal for the implementation of the to EUR 500 million on average. Universal Declaration of Human Rights regarding the right to food and well-being, expressing the view that (b) Direct aid national governments have a duty to honour that Administered by the Commission, direct aid is granted to obligation (resolution of 3 September 2002 on trade governments in the form of inancial aid and support and development for poverty eradication and food operations. security); (c) Indirect aid — took the view that the ight against poverty and food Indirect aid is administered through international insecurity must incorporate an attack on the structural organisations like the World Food Programme (WFP) and causes of poverty in the developing countries, and, individual NGOs. In the 2006 budget, it amounted to accordingly, called for measures to foster access to land, EUR 197 million. water and the resources of biodiversity and measures to 2. Recipients foster a policy of local support for assets such as sustainable agricultural smallholdings. Intervention countries are divided by the Commission into two groups. First, those that receive structural aid, namely the least developed countries (LDCs) with a high food- g Armelle DOUAUD insecurity index and, secondly, those in a post-crisis 09/2006 situation. In these countries interventions mostly involve supplying food aid, tools and seeds.
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Legal basis Commonwealth countries in Africa, the Caribbean and the Article 310 of the EC Treaty. Paciic the opportunity to negotiate on the structure of their future relations with the EEC. Other African states that were not members of the Commonwealth or the ASMM Objectives group were also given the same option. Following the expiry of the fourth Lomé Convention on 29 This led to the First Lomé Convention (1975–80) which was February 2000, the partnership agreement signed in followed by three more (1981–85, 1986–90 and 1990–2000). Cotonou, Benin, on 23 June 2000 established a new framework for future relations between the European 2. The Fourth Lomé Convention Union (EU) and the African, Caribbean and Paciic (ACP) The Fourth Lomé Convention was signed on 15 December countries. Just like the Lomé Convention, the Cotonou 1989 for a period of 10 years and came into force on 1 Agreement aims to improve the standards of living and March 1990, while the associated inancial protocol was economic development of the ACP countries and establish adopted for ive years only. The amended convention close cooperation with them on a basis of complete resulting from the mid-term review and the second equality. The new agreement, however, difers from the Financial Protocol to the Lomé IV Convention were signed previous conventions in that its coverage extends beyond on 4 November 1995 and expired on 29 February 2000. the traditional range of development issues. Its main aim is Practically all products originating in the ACP States the eradication of poverty through fuller integration of the (99.5 %) had free access to the Community. Reciprocal ACP states into the world trading system. It also reinforces arrangements were not compulsory; the ACP countries the institutional and political dimension of their relations, were merely required to grant the EU most-favoured-nation especially in crucial areas such as human rights, democracy status. The Stabex system (stabilisation of export earnings) and good governance. The irst revision of the agreement, guaranteed the ACP countries a certain level of export in 2005, was designed to improve political dialogue, to earnings by protecting the latter against the luctuations to enshrine all parties’ recognition of the jurisdiction of the which they would normally be subject as a result of the International Criminal Court and to simplify procedures for functioning of markets or the vicissitudes of production. the allocation of aid. References to the aims of curbing the The system for mineral products (Sysmin) provided proliferation of weapons of mass destruction and subsidies to deal with temporary production or export combating terrorism were also added to the agreement. problems in the mining sector. Under Lomé IV the system covered eight minerals. Achievements As a result of the mid-term review, a clause (Article 366(a)) Previous agreements was inserted under which aid to a State might be partially 1. From yaoundé to Lomé or totally suspended if it breached Article 5 (human rights, Part Four of the EEC Treaty, together with an implementing democracy and the rule of law) of the convention. convention, governed relations between the EEC and The conclusion of the Cotonou Partnership Agreement overseas countries and territories (OCTs). After these 1. Process countries gained independence, the 18-member, and later 19-member, African States, Madagascar and Mauritius The negotiations on the ACP–EU Partnership Agreement (ASMM) group became associated with the EEC under the were concluded in Brussels on 3 February 2000. A separate two Yaoundé Conventions (1964–69 and 1971–75). At the agreement was signed with South Africa ("6.5.1) in same time, the Convention of Arusha (1971–75) established pursuance of the protocol establishing South Africa’s partial trade links with the three East African States of Kenya, accession with efect from April 1997. The signing Uganda and Tanzania. ceremony took place in Cotonou, Benin, on 23 June 2000. The irst revision of the agreement was signed in Protocol 22 to the Acts of Accession of the United Luxembourg on 25 June 2005. Kingdom, Ireland and Denmark ofered the 20
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The ratiication process was completed on at the appropriate level in order to exchange information 27 February 2003, when the Council of the European Union and to establish priorities and common principles. The deposited its instrument of ratiication. The new agreement objectives of the dialogue include regional cooperation, entered into force on 1 April 2003, but many of its conlict prevention and peaceful settlement of disputes. provisions had already been applied since August 2000, Through dialogue, the parties are to contribute to peace, though not the clauses relating to the Ninth European security and stability and promote a stable and democratic Development Fund. The new agreement has a term of 20 political environment (Article 8(3)). Following the revision years and may be revised at ive-yearly intervals (Article 95). of the Cotonou Agreement, representatives of the ACP 2. Main substance of the agreement (Articles 2 and 4) Group and the ACP–EU Joint Parliamentary Assembly can now take part in the political dialogue. The Cotonou Agreement, characterised by the term ‘partnership’, is all about mutual commitment and The dialogue covers all ields of cooperation laid down by responsibility, hence the emphasis given to political the agreement as well as questions of common interest, dialogue, covering such issues as democracy, good including the environment, equality between men and governance and immigration, and to broad-based women, migration and cultural matters. It devotes special involvement of civil society. The new agreement also attention to human rights, democratic principles, the rule of focuses on the sustainable economic development of ACP law and good governance, the arms trade, anti-personnel States and their smooth and gradual integration into the landmines, military expenditure, corruption, drugs and global economy through a strategy combining trade, organised crime and ethnic, religious or racial discrimination. investments, private-sector development, inancial The EU provides assistance for capacity-building to promote cooperation and regional integration. Development democracy, transparency, improved access to justice and strategies focus on the reduction of poverty, which they more eicient law-enforcement procedures. establish as a priority objective. 4. Migration (Article 13) The institutional and political dimension The agreement establishes a framework for dealing with 1. Institutions migration through the readmission clause: each ACP or EU State is to accept the repatriation of any of its nationals The joint institutions are the Council of Ministers, the who are illegally present in the territory of an EU or ACP Committee of Ambassadors and the Joint Parliamentary State and readmit them at the request of the latter without Assembly. The new agreement renames the former Joint further formalities. The agreement also includes a provision Assembly ‘the Joint Parliamentary Assembly’ in order to establishing non-discriminatory treatment of legally emphasise the parliamentary nature of this body. Included employed workers from ACP countries in EU Member in the tasks of the Joint Parliamentary Assembly is the States or vice versa. organisation of regular contacts, not only with economic and social actors as in the previous Lomé Convention, but Trade and inancial framework also with civil society (Article 17). The main innovation as 1. Economic partnership agreements (Articles 36 regards the Joint Council of Ministers is the broadening of and 37) its mandate to conduct an ongoing dialogue with The agreement provides for a preparatory period of eight representatives of the social and economic partners and years before the conclusion of any new WTO- compatible other members of civil society (Article 15). trade arrangements. Formal negotiations for these trade 2. Actors in the partnership (Articles 4 to 7) agreements started in September 2002 and should One of the most signiicant innovations of the new culminate in a deal by January 2008. At the end of 2005, agreement is the inclusion of a chapter on the actors involved the negotiations entered their third phase, in which the EU in the ACP–EU Partnership. The ACP countries recognise the is negotiating with the six ACP regions on the dismantling complementary role of non-governmental players in the of non-reciprocal trade preferences in favour of economic development process. To this end, non-governmental bodies partnership agreements based on free trade between the are informed and involved in consultation on cooperation EU and the ACP regions. The existing system of non- policies and on the political dialogue. They are involved in the reciprocal trade preferences under Lomé IV is being implementation of cooperation projects and provided with retained for the period between 2002 and 2008. The adequate support for capacity-building. economic partnership agreements will serve to create an entirely new framework for the low of trade and 3. Political dialogue (Articles 8 to 10) investment between the EU and the ACP countries. From The parties are to engage regularly in a comprehensive and 2008 to 2020, a reciprocal system of free trade in goods and balanced political dialogue conducted in a lexible manner services will be phased in as WTO-compliant trade
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01_2006_4661_txt_EN.indd 491 30-10-2007 14:56:00 agreements are concluded; the ACP countries are being players in their national indicative programmes. Resource encouraged to accede to these agreements in regional allocation to ACP countries will be based on both needs groups once they have achieved their own regional and performance. Each ACP State and region will receive an integration. indication of the resources it could receive over a ive-year 2. Trade-related areas and investment term. In addition to mid-term and end-of-term reviews of national indicative programmes, ACP and EU authorities For the irst time, the ACP–EU Agreement contains will jointly carry out an annual review to identify the causes provisions (Chapter 5) on trade factors such as non-tarif of any delays in implementation and propose measures to barriers, including intellectual property rights and improve the situation. Following mid-term and end-of-term biodiversity measures, competition policy, standards, plant- reviews, the EU may revise resource allocation to ACP health measures and environmental and labour standards. States according to their needs and performance. The In Article 46, both parties underline the importance of the allocated resources will consist of two main elements: an International Agreement on Trade-Related Aspects of allocation for macroeconomic support, programmes and Intellectual Property Rights (TRIPs) and the Convention on projects and an allocation to cover unforeseen needs, such Biological Diversity. as emergency assistance. The new agreement places greater emphasis on support 5. Stabilisation of export revenue for investment and the private sector. Cooperation in the ield of investment will include: The agreement replaces Stabex and Sysmin with a support system designed to mitigate the adverse efects of short- — measures to create and maintain stable investment term luctuations in export revenue. Resources for this conditions, encouraging private investment in ACP system will be allocated through the national indicative countries; programmes. Support may be provided if a worsening — support for the long-term investment of inancial public deicit coincides with a loss of overall export resources; and earnings or a loss of export earnings from agricultural and mineral products. The least developed countries (LDCs) — investment-guarantee schemes. beneit from an arrangement whereby a smaller loss of 3. Financial cooperation export revenue triggers support payments (Article 68). The amount of EU inancial assistance for the irst ive years 6. Debt relief of the agreement (2003–08) is EUR 13.5 billion. An Outside the ACP–EU framework, the ACP countries agreed additional sum of EUR 2.5 billion is also available from the to an EU proposal for the use of up to EUR 1 billion from previous European Development Fund (EDF), taking the uncommitted EDF funds to support highly indebted poor total to EUR 16 billion, to which is added EUR 1.7 billion countries in the ACP Group. On a case-by-case basis, from the European Investment Bank (EIB) in the form of uncommitted resources from past indicative programmes loans. A further amount of EUR 10 billion in the form of can be used for debt relief. Technical assistance relating to grants has been earmarked to support long-term debt management will be provided to ACP States (Articles development. 66 and 67). The 10th EDF (2008–13) has been set to cover at least EUR 23 billion. Role of the European Parliament The Investment Facility is designed to help businesses in The European Parliament (EP/Parliament) is kept regularly ACP countries by supporting sound private companies, informed by the Commission of the implementation of the promoting privatisation, providing long-term inance and ACP–EU Partnership Agreement. However, it has few risk capital and strengthening local banks and capital powers in respect of the allocation of aid as the EDF is not markets. The sum of EUR 2.2 billion will be allocated to the included in the budget. Nevertheless, it must grant an Investment Facility to be managed by the European annual discharge in respect of the operations inanced Investment Bank, and EUR 1.3 billion will be assigned to under the EDF. regional cooperation. It has been agreed that the ACP States will designate the regions eligible for aid. In addition, Parliament assented to the partnership agreement, and each revision is also subject to 4. Resource allocation and programming parliamentary assent. In the view of the EP, increases in aid The agreement introduces signiicant changes to under the Cotonou Agreement should have been suicient programming procedures and resource allocation. ACP to honour the pledge given by the EU to increase public States must now deine eligible non-governmental players development aid in order to achieve the millennium and specify the amount of resources earmarked for such development goals.
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The EP makes a signiicant contribution to ACP–EU about the work of the ACP–EU Joint Parliamentary cooperation through the work of its Committee on Assembly and ACP–EU cooperation. Development and Cooperation and through the ACP–EU Members of the EP pay regular oicial visits to ACP Joint Parliamentary Assembly, the successor body of the countries, either in connection with the Joint Parliamentary former Joint Assembly, which has a fundamental role to Assembly or as election observers. In 2005 and 2006 play in the development and strengthening of relations Members monitored the elections in Ethiopia, Liberia, between the EU and its ACP partners and brings together Uganda and the Democratic Republic of the Congo. the elected representatives of the EU (the members of the EP) and of the ACP States twice a year. Each year Parliament adopts a resolution expressing its views and concerns g Armelle DOUAUD 09/2006
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01_2006_4661_txt_EN.indd 493 30-10-2007 14:56:01 01_2006_4661_txt_EN.indd 494 30-10-2007 14:56:01 European Commission Fact Sheets on the European Union Luxembourg: Oice for Oicial Publications of the European Communities 2007 — 493 pp. — 22 × 27 cm ISBN 92-823-2146-0 Price (excluding VAT) in Luxembourg: EUR 35
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