# Official Journal C 230/14 J

| | ISSN 1977-091X |
| --- | --- |
| Official Journal
  of the European Union | C 230 |
| | |
| English edition | Information and Notices | Volume 5814 July 2015 |

ISSN 1977-091X

Official Journal

of the European Union

C 230

English edition

Information and Notices

Volume 5814 July 2015

---

| Notice No | Contents | page |
| --- | --- | --- |
| | I   Resolutions, recommendations and opinions |
| | OPINIONS |
| | European Economic and Social Committee |
| | 503rd EESC plenary session, 10 and 11 December 2014 |
| 2015/C 230/01 | Opinion of the European Economic and Social Committee on Community Led Local Development (CLLD) as a tool of Cohesion Policy 2014-20 for local, rural, urban and peri-urban development (exploratory opinion at the request of the Greek Council presidency) | 1 |
| 2015/C 230/02 | Opinion of the European Economic and Social Committee on the EU Strategy for the Alpine Region (exploratory opinion) | 9 |
| 2015/C 230/03 | Opinion of the European Economic and Social Committee on Airport capacity in the EU (exploratory opinion requested by the European Commission) | 17 |
| 2015/C 230/04 | Opinion of the European Economic and Social Committee on Completing EMU — The role of taxation policy (Own-initiative opinion) | 24 |
| 2015/C 230/05 | Opinion of the European Economic and Social Committee on Industrial changes in the European packaging sector (own-initiative opinion) | 33 |
| 2015/C 230/06 | Opinion of the European Economic and Social Committee on the Contribution of the woodworking sector to the carbon balance (own-initiative opinion) | 39 |
| 2015/C 230/07 | Opinion of the European Economic and Social Committee on European film in the digital era (own-initiative opinion) | 47 |
| 2015/C 230/08 | Opinion of the European Economic and Social Committee on civil society in Russia (own-initiative opinion) | 52 |

Notice No

Contents

page

I   Resolutions, recommendations and opinions

OPINIONS

European Economic and Social Committee

503rd EESC plenary session, 10 and 11 December 2014

2015/C 230/01

Opinion of the European Economic and Social Committee on Community Led Local Development (CLLD) as a tool of Cohesion Policy 2014-20 for local, rural, urban and peri-urban development (exploratory opinion at the request of the Greek Council presidency)

1

2015/C 230/02

Opinion of the European Economic and Social Committee on the EU Strategy for the Alpine Region (exploratory opinion)

9

2015/C 230/03

Opinion of the European Economic and Social Committee on Airport capacity in the EU (exploratory opinion requested by the European Commission)

17

2015/C 230/04

Opinion of the European Economic and Social Committee on Completing EMU — The role of taxation policy (Own-initiative opinion)

24

2015/C 230/05

Opinion of the European Economic and Social Committee on Industrial changes in the European packaging sector (own-initiative opinion)

33

2015/C 230/06

Opinion of the European Economic and Social Committee on the Contribution of the woodworking sector to the carbon balance (own-initiative opinion)

39

2015/C 230/07

Opinion of the European Economic and Social Committee on European film in the digital era (own-initiative opinion)

47

2015/C 230/08

Opinion of the European Economic and Social Committee on civil society in Russia (own-initiative opinion)

52

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| | III   Preparatory acts |
| --- | --- |
| | EUROPEAN ECONOMIC AND SOCIAL COMMITTEE |
| | 503rd EESC plenary session, 10 and 11 December 2014 |
| 2015/C 230/09 | Opinion of the European Economic and Social Committee on the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Research and innovation as sources of renewed growth (COM(2014) 339 final — SWD(2014) 181 final) | 59 |
| 2015/C 230/10 | Opinion of the European Economic and Social Committee on the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Regulatory Fitness and Performance Programme (REFIT): State of Play and Outlook (COM(2014) 368 final) | 66 |
| 2015/C 230/11 | Opinion of the European Economic and Social Committee on the Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee — Towards a renewed consensus on the enforcement of Intellectual Property Rights: An EU Action Plan(COM(2014) 392 final) | 72 |
| 2015/C 230/12 | Opinion of the European Economic and Social Committee on the White Paper — Towards more effective EU merger control(COM(2014) 449 final) | 77 |
| 2015/C 230/13 | Opinion of the European Economic and Social Committee on the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on an EU strategic framework on health and safety at work (2014-2020) (COM(2014) 332 final) | 82 |
| 2015/C 230/14 | Opinion of the European Economic and Social Committee on the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on resource efficiency opportunities in the building sector (COM(2014) 445 final) on the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Towards a circular economy: A zero waste programme for Europe (COM(2014) 398 final) and on the Proposal for a Directive of the European Parliament and of the Council amending Directives 2008/98/EC on waste, 94/62/EC on packaging and packaging waste, 1999/31/EC on the landfill of waste, 2000/53/EC on end-of-life vehicles, 2006/66/EC on batteries and accumulators and waste batteries and accumulators, and 2012/19/EU on waste electrical and electronic equipment(COM(2014) 397 final — 2014/0201 (COD)) | 91 |
| 2015/C 230/15 | Opinion of the European Economic and Social Committee on the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Green Action Plan for SMEs — Enabling SMEs to turn environmental challenges into business opportunities(COM(2014) 440 final) and the Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions — Green Employment Initiative: Tapping into the job creation potential of the green economy(COM(2014) 446 final) | 99 |
| 2015/C 230/16 | Opinion of the European Economic and Social Committee on the Communication from the Commission to the European Parliament and the Council — Better situational awareness by enhanced cooperation across maritime surveillance authorities: next steps within the Common Information Sharing Environment for the EU maritime domain(COM(2014) 451 final) | 107 |
| 2015/C 230/17 | Opinion of the European Economic and Social Committee on the Strategy for the protection and enforcement of intellectual property rights in third countries (Communication)(COM(2014) 389 final) | 112 |
| 2015/C 230/18 | Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on the import into the Union of agricultural products originating in Turkey (codification)(COM(2014) 586 final — 2014/0272 (COD)) | 117 |
| 2015/C 230/19 | Opinion of the European Economic and Social Committee on the Proposal for a regulation of the European Parliament and of the Council suspending certain concessions relating to the import into the Union of agricultural products originating in Turkey (Codification)(COM(2014) 593 final — 2014/0275 (COD)) | 118 |
| 2015/C 230/20 | Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council opening and providing for the administration of certain Union tariff quotas for high-quality beef, and for pigmeat, poultrymeat, wheat and meslin, and brans, sharps and other residues (codification)(COM(2014) 594 final — 2014/0276 COD) | 119 |
| 2015/C 230/21 | Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council establishing a multiannual plan for the stocks of cod, herring and sprat in the Baltic Sea and the fisheries exploiting those stocks, amending Council Regulation (EC) No 2187/2005 and repealing Council Regulation (EC) No 1098/2007 (COM(2014) 614 final — 2014/0285 COD) | 120 |
| 2015/C 230/22 | Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on the safeguard measures provided for in the Agreement between the European Economic Community and the Republic of Iceland (codification)(COM(2014) 308 final — 2014/0160 (COD)) | 121 |
| 2015/C 230/23 | Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on common rules for imports (codification)(COM(2014) 322 final — 2014/0167 (COD)) | 122 |
| 2015/C 230/24 | Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on common rules for imports (codification)(COM(2014) 321 final — 2014/0166 (COD)) | 123 |
| 2015/C 230/25 | Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on common rules for imports from certain third countries (recast)COM(2014) 323 final — 2014/0168 (COD) | 124 |
| 2015/C 230/26 | Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on common rules for imports of textile products from certain third countries not covered by bilateral agreements, protocols or other arrangements, or by other specific Union import rules (recast)COM(2014) 345 final — 2014/0177 (COD) | 125 |
| 2015/C 230/27 | Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council laying down Union procedures in the field of the common commercial policy in order to ensure the exercise of the Union’s rights under international trade rules, in particular those established under the auspices of the World Trade Organization (codification) COM(2014) 341 final — 2014/0174 (COD) | 126 |
| 2015/C 230/28 | Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on the measures that the Union may take following a report adopted by the WTO Dispute Settlement Body concerning anti-dumping and anti-subsidy matters (codification)COM(2014) 317 final — 2014/0163 (COD) | 127 |
| 2015/C 230/29 | Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on certain procedures for applying the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Montenegro, of the other part (codification)COM(2014) 374 final — 2014/0190 (COD) | 128 |
| 2015/C 230/30 | Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on protection against subsidised imports from countries not members of the European Union (codification)COM(2014) 660 final — 2014/0305 (COD) | 129 |

III   Preparatory acts

EUROPEAN ECONOMIC AND SOCIAL COMMITTEE

503rd EESC plenary session, 10 and 11 December 2014

2015/C 230/09

Opinion of the European Economic and Social Committee on the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Research and innovation as sources of renewed growth (COM(2014) 339 final — SWD(2014) 181 final)

(COM(2014) 339 final — SWD(2014) 181 final)

59

2015/C 230/10

Opinion of the European Economic and Social Committee on the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Regulatory Fitness and Performance Programme (REFIT): State of Play and Outlook (COM(2014) 368 final)

(COM(2014) 368 final)

66

2015/C 230/11

Opinion of the European Economic and Social Committee on the Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee — Towards a renewed consensus on the enforcement of Intellectual Property Rights: An EU Action Plan(COM(2014) 392 final)

(COM(2014) 392 final)

72

2015/C 230/12

Opinion of the European Economic and Social Committee on the White Paper — Towards more effective EU merger control(COM(2014) 449 final)

(COM(2014) 449 final)

77

2015/C 230/13

Opinion of the European Economic and Social Committee on the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on an EU strategic framework on health and safety at work (2014-2020) (COM(2014) 332 final)

(COM(2014) 332 final)

82

2015/C 230/14

Opinion of the European Economic and Social Committee on the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on resource efficiency opportunities in the building sector (COM(2014) 445 final) on the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Towards a circular economy: A zero waste programme for Europe (COM(2014) 398 final) and on the Proposal for a Directive of the European Parliament and of the Council amending Directives 2008/98/EC on waste, 94/62/EC on packaging and packaging waste, 1999/31/EC on the landfill of waste, 2000/53/EC on end-of-life vehicles, 2006/66/EC on batteries and accumulators and waste batteries and accumulators, and 2012/19/EU on waste electrical and electronic equipment(COM(2014) 397 final — 2014/0201 (COD))

(COM(2014) 445 final)

(COM(2014) 398 final)

(COM(2014) 397 final — 2014/0201 (COD))

91

2015/C 230/15

Opinion of the European Economic and Social Committee on the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Green Action Plan for SMEs — Enabling SMEs to turn environmental challenges into business opportunities(COM(2014) 440 final) and the Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions — Green Employment Initiative: Tapping into the job creation potential of the green economy(COM(2014) 446 final)

(COM(2014) 440 final)

(COM(2014) 446 final)

99

2015/C 230/16

Opinion of the European Economic and Social Committee on the Communication from the Commission to the European Parliament and the Council — Better situational awareness by enhanced cooperation across maritime surveillance authorities: next steps within the Common Information Sharing Environment for the EU maritime domain(COM(2014) 451 final)

(COM(2014) 451 final)

107

2015/C 230/17

Opinion of the European Economic and Social Committee on the Strategy for the protection and enforcement of intellectual property rights in third countries (Communication)(COM(2014) 389 final)

(COM(2014) 389 final)

112

2015/C 230/18

Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on the import into the Union of agricultural products originating in Turkey (codification)(COM(2014) 586 final — 2014/0272 (COD))

(COM(2014) 586 final — 2014/0272 (COD))

117

2015/C 230/19

Opinion of the European Economic and Social Committee on the Proposal for a regulation of the European Parliament and of the Council suspending certain concessions relating to the import into the Union of agricultural products originating in Turkey (Codification)(COM(2014) 593 final — 2014/0275 (COD))

(COM(2014) 593 final — 2014/0275 (COD))

118

2015/C 230/20

Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council opening and providing for the administration of certain Union tariff quotas for high-quality beef, and for pigmeat, poultrymeat, wheat and meslin, and brans, sharps and other residues (codification)(COM(2014) 594 final — 2014/0276 COD)

(COM(2014) 594 final — 2014/0276 COD)

119

2015/C 230/21

Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council establishing a multiannual plan for the stocks of cod, herring and sprat in the Baltic Sea and the fisheries exploiting those stocks, amending Council Regulation (EC) No 2187/2005 and repealing Council Regulation (EC) No 1098/2007 (COM(2014) 614 final — 2014/0285 COD)

(COM(2014) 614 final — 2014/0285 COD)

120

2015/C 230/22

Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on the safeguard measures provided for in the Agreement between the European Economic Community and the Republic of Iceland (codification)(COM(2014) 308 final — 2014/0160 (COD))

(COM(2014) 308 final — 2014/0160 (COD))

121

2015/C 230/23

Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on common rules for imports (codification)(COM(2014) 322 final — 2014/0167 (COD))

(COM(2014) 322 final — 2014/0167 (COD))

122

2015/C 230/24

Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on common rules for imports (codification)(COM(2014) 321 final — 2014/0166 (COD))

(COM(2014) 321 final — 2014/0166 (COD))

123

2015/C 230/25

Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on common rules for imports from certain third countries (recast)COM(2014) 323 final — 2014/0168 (COD)

COM(2014) 323 final — 2014/0168 (COD)

124

2015/C 230/26

Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on common rules for imports of textile products from certain third countries not covered by bilateral agreements, protocols or other arrangements, or by other specific Union import rules (recast)COM(2014) 345 final — 2014/0177 (COD)

COM(2014) 345 final — 2014/0177 (COD)

125

2015/C 230/27

Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council laying down Union procedures in the field of the common commercial policy in order to ensure the exercise of the Union’s rights under international trade rules, in particular those established under the auspices of the World Trade Organization (codification) COM(2014) 341 final — 2014/0174 (COD)

COM(2014) 341 final — 2014/0174 (COD)

126

2015/C 230/28

Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on the measures that the Union may take following a report adopted by the WTO Dispute Settlement Body concerning anti-dumping and anti-subsidy matters (codification)COM(2014) 317 final — 2014/0163 (COD)

COM(2014) 317 final — 2014/0163 (COD)

127

2015/C 230/29

Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on certain procedures for applying the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Montenegro, of the other part (codification)COM(2014) 374 final — 2014/0190 (COD)

COM(2014) 374 final — 2014/0190 (COD)

128

2015/C 230/30

Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on protection against subsidised imports from countries not members of the European Union (codification)COM(2014) 660 final — 2014/0305 (COD)

COM(2014) 660 final — 2014/0305 (COD)

129

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| EN | |
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EN

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I Resolutions, recommendations and opinions

OPINIONS

European Economic and Social Committee

503rd EESC plenary session, 10 and 11 December 2014

| 14.7.2015 | EN | Official Journal of the European Union | C 230/1 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/1

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Opinion of the European Economic and Social Committee on ‘Community Led Local Development (CLLD) as a tool of Cohesion Policy 2014-20 for local, rural, urban and peri-urban development’

(exploratory opinion at the request of the Greek Council presidency)

(2015/C 230/01)

| Rapporteur: | Mr Roman HAKEN |
| --- | --- |

Rapporteur:

Mr Roman HAKEN

On 2 April 2014, Ambassador Theodoros N. Sotiropoulos, Chairman of the Committee of the Permanent Representatives, acting on behalf of the Greek Council presidency, asked the European Economic and Social Committee to draw up an exploratory opinion on

Community Led Local Development (CLLD) as a tool of Cohesion Policy 2014-20 for local, rural, urban and peri-urban development.

The Section for Economic and Monetary Union and Economic and Social Cohesion, which was responsible for preparing the Committee’s work on the subject, adopted its opinion on 18 November 2014.

At its 503rd plenary session, held on 10 and 11 December 2014 (meeting of 11 December), the European Economic and Social Committee adopted the following opinion by 133 votes to 2 with 1 abstention.

1.   Conclusions and recommendations

| 1.1. | The EESC is aware that the LEADER approach has demonstrated its viability over the past 20 years. It has helped rural actors assess the long-term potential of their local regions and proven an effective and efficient tool in the delivery of development policies. The European Commission has also promoted this partnership-based method of funding projects in the EU initiatives URBAN, URBACT, EQUAL, Local Agenda 21, Transition Towns and Territorial Employment Pacts. This is what gave rise to Community Led Local Development (CLLD), which is, in a way, a transitional change. |
| --- | --- |

1.1.

The EESC is aware that the LEADER approach has demonstrated its viability over the past 20 years. It has helped rural actors assess the long-term potential of their local regions and proven an effective and efficient tool in the delivery of development policies. The European Commission has also promoted this partnership-based method of funding projects in the EU initiatives URBAN, URBACT, EQUAL, Local Agenda 21, Transition Towns and Territorial Employment Pacts. This is what gave rise to Community Led Local Development (CLLD), which is, in a way, a transitional change.

| 1.2. | CLLD is a dedicated tool for use at sub-regional level and thus complements other development support at local level. It has the capacity to mobilise and involve local communities and organisations so they can contribute to smart, sustainable and inclusive growth. It also fosters territorial cohesion and enables particular policy objectives to be attained, including in relations with non-EU partners. It provides long-term growth through effective use of European Structural and Investment Funds (ESIFs) with a view to creating new jobs and businesses by incorporating community-led activities in climate change and sustainability in line with the Europe 2020 strategy. |
| --- | --- |

1.2.

CLLD is a dedicated tool for use at sub-regional level and thus complements other development support at local level. It has the capacity to mobilise and involve local communities and organisations so they can contribute to smart, sustainable and inclusive growth. It also fosters territorial cohesion and enables particular policy objectives to be attained, including in relations with non-EU partners. It provides long-term growth through effective use of European Structural and Investment Funds (ESIFs) with a view to creating new jobs and businesses by incorporating community-led activities in climate change and sustainability in line with the Europe 2020 strategy.

| 1.3. | CLLD has to be transformed as quickly as possible into a SMART instrument so it can help local stakeholders find a way out of the economic and social crisis and in order to restore trust in European Union policy. The stress must be on innovative projects, new, good-quality jobs and businesses and on stepping up activities to address climate change, sustainable development and social inclusion in line with the new Europe 2020 strategy. CLLD is a new type of partnership geared to nurturing social innovation. |
| --- | --- |

1.3.

CLLD has to be transformed as quickly as possible into a SMART instrument so it can help local stakeholders find a way out of the economic and social crisis and in order to restore trust in European Union policy. The stress must be on innovative projects, new, good-quality jobs and businesses and on stepping up activities to address climate change, sustainable development and social inclusion in line with the new Europe 2020 strategy. CLLD is a new type of partnership geared to nurturing social innovation.

| 1.4. | The fact that most Member States have incorporated CLLD into their partnership agreements is proof of how important local development is now considered (1). This type of multilateral governance should be expanded to all activities underpinned by ESIFs, with perhaps some mandatory application (at least 5 %) in all funds. The EESC is in favour of all EU Member States using this instrument over time, while applying the principle of partnership and pooling best practice. |
| --- | --- |

1.4.

The fact that most Member States have incorporated CLLD into their partnership agreements is proof of how important local development is now considered (1). This type of multilateral governance should be expanded to all activities underpinned by ESIFs, with perhaps some mandatory application (at least 5 %) in all funds. The EESC is in favour of all EU Member States using this instrument over time, while applying the principle of partnership and pooling best practice.

| 1.5. | The EESC welcomes the fact that the 2014 Greek and Italian EU presidencies have attached great importance to cohesion policy as a valuable means of boosting sustainable growth and overcoming the current economic crisis in Europe. |
| --- | --- |

1.5.

The EESC welcomes the fact that the 2014 Greek and Italian EU presidencies have attached great importance to cohesion policy as a valuable means of boosting sustainable growth and overcoming the current economic crisis in Europe.

| 1.6. | The EESC anticipates that this opinion, too, will serve as an aid in implementing pilot projects (funded partially from European Commission resources) that would test the CLLD instrument in areas where it is not currently applied, namely the peri-urban and, more particularly, the urban context, thus widening its potential sphere of application. It supports its application in the period 2014-20 — where there is an interest in it — to all funds and to both rural and urban areas. It constitutes a combination of representative and participatory democracy: an instrument that representatives of public administrations can use to collaborate in partnership with organised civil society and the public. |
| --- | --- |

1.6.

The EESC anticipates that this opinion, too, will serve as an aid in implementing pilot projects (funded partially from European Commission resources) that would test the CLLD instrument in areas where it is not currently applied, namely the peri-urban and, more particularly, the urban context, thus widening its potential sphere of application. It supports its application in the period 2014-20 — where there is an interest in it — to all funds and to both rural and urban areas. It constitutes a combination of representative and participatory democracy: an instrument that representatives of public administrations can use to collaborate in partnership with organised civil society and the public.

| 1.7. | The EESC is convinced that it makes sense to enable local stakeholders — the public, economic and social partners, non-profit NGOs and local councils — to be involved in, for example, local development strategies in the place where they reside using the CLLD method. At the same time, following experience with the LEADER method in rural areas, the need now is to give urban CLLD substance so that towns and the public have some notion of what kinds of measures can be proposed in towns using it. |
| --- | --- |

1.7.

The EESC is convinced that it makes sense to enable local stakeholders — the public, economic and social partners, non-profit NGOs and local councils — to be involved in, for example, local development strategies in the place where they reside using the CLLD method. At the same time, following experience with the LEADER method in rural areas, the need now is to give urban CLLD substance so that towns and the public have some notion of what kinds of measures can be proposed in towns using it.

| 1.8. | The EESC is disappointed by the finding that public authorities are often not overly enthusiastic about CLLD, despite its efficacy. It is absolutely essential to engage in a strategy informing and giving expert advice to all those involved, specifically targeting public authorities and geared at encouraging the use of this opportunity to develop and advance local development strategies. The importance of ‘ownership of results’ in groups of this kind is key to the stability of development strategies over the long term and to meeting the Europe 2020 strategy goals. The instrument’s success very much depends on political backing at all levels (EU, national, regional and local). |
| --- | --- |

1.8.

The EESC is disappointed by the finding that public authorities are often not overly enthusiastic about CLLD, despite its efficacy. It is absolutely essential to engage in a strategy informing and giving expert advice to all those involved, specifically targeting public authorities and geared at encouraging the use of this opportunity to develop and advance local development strategies. The importance of ‘ownership of results’ in groups of this kind is key to the stability of development strategies over the long term and to meeting the Europe 2020 strategy goals. The instrument’s success very much depends on political backing at all levels (EU, national, regional and local).

| 1.9. | The EESC points out that the social and economic partners and organised civil society have to be more involved in CLLD, which requires building up their capacities for such a role. Hands-on involvement of all these partners in the partnership with public administration is the cornerstone for genuine representation of the interests and needs of the public. |
| --- | --- |

1.9.

The EESC points out that the social and economic partners and organised civil society have to be more involved in CLLD, which requires building up their capacities for such a role. Hands-on involvement of all these partners in the partnership with public administration is the cornerstone for genuine representation of the interests and needs of the public.

| 1.10. | The EESC thinks that CLLD, being something new in regional policy, is not well enough known at local level, at national level in some Member States and in the platforms that could underpin the approach. To help implementation of the new CLLD instrument in European policies, a detailed evaluation and analysis needs to be drafted of how a particular Member State has approached it, including recommendations for effective implementation. This will also give rise a study with examples of best practice as well as accounts of failures to be avoided in future. The EESC is keen to take part in drafting such a study together with the relevant departments of the European Commission, the European Parliament, the Council and the Committee of the Regions. This study could serve as a launchpad to set up CLLD intergroups as interinstitutional platforms. |
| --- | --- |

1.10.

The EESC thinks that CLLD, being something new in regional policy, is not well enough known at local level, at national level in some Member States and in the platforms that could underpin the approach. To help implementation of the new CLLD instrument in European policies, a detailed evaluation and analysis needs to be drafted of how a particular Member State has approached it, including recommendations for effective implementation. This will also give rise a study with examples of best practice as well as accounts of failures to be avoided in future. The EESC is keen to take part in drafting such a study together with the relevant departments of the European Commission, the European Parliament, the Council and the Committee of the Regions. This study could serve as a launchpad to set up CLLD intergroups as interinstitutional platforms.

| 1.11. | The EESC advocates the following for Community Led Local Development:






  a) | multi-fund financing — monitoring and strengthening the CLLD approach within multi-fund financing across Europe and in EU programmes and working to launch the next programming period as quickly as possible; |
| --- | --- | --- |

1.11.

The EESC advocates the following for Community Led Local Development:

a)

multi-fund financing — monitoring and strengthening the CLLD approach within multi-fund financing across Europe and in EU programmes and working to launch the next programming period as quickly as possible;

| b) | unification procedures and approaches — supporting the high quality of CLLD in the EU, standardising LAG (2) operations and pooling best practice; lending support for filling in gaps on the map so that the LEADER approach can be extended geographically and thematically, which is necessary if the LEADER/CLLD approach is to operate successfully within various EU programmes; |
| --- | --- |

b)

unification procedures and approaches — supporting the high quality of CLLD in the EU, standardising LAG (2) operations and pooling best practice; lending support for filling in gaps on the map so that the LEADER approach can be extended geographically and thematically, which is necessary if the LEADER/CLLD approach is to operate successfully within various EU programmes;

| c) | networking and collaboration — an essential condition for the CLLD approach to work well; implementation of cooperation projects in existing networks and creation of networks at regional, national and European level and the need for expenditure on creating and operation of networks to be eligible, including the contributions made by members; |
| --- | --- |

c)

networking and collaboration — an essential condition for the CLLD approach to work well; implementation of cooperation projects in existing networks and creation of networks at regional, national and European level and the need for expenditure on creating and operation of networks to be eligible, including the contributions made by members;

| d) | extending the approach — supporting the use of the CLLD method beyond Europe, for example in pre-accession negotiations and development policy; |
| --- | --- |

d)

extending the approach — supporting the use of the CLLD method beyond Europe, for example in pre-accession negotiations and development policy;

| e) | simplifying the process — making sure these small entities at local level are not engulfed in excessive red tape; where possible, reducing reporting requirements to the minimum reliable level; preventing the responsible bodies from changing the rules while ESIFs are in operation, and immediately and everywhere launching programmes providing information and seminars where best practices can be exchanged and local public and private stakeholders supported; |
| --- | --- |

e)

simplifying the process — making sure these small entities at local level are not engulfed in excessive red tape; where possible, reducing reporting requirements to the minimum reliable level; preventing the responsible bodies from changing the rules while ESIFs are in operation, and immediately and everywhere launching programmes providing information and seminars where best practices can be exchanged and local public and private stakeholders supported;

| f) | building up the capacities of social and economic partners, along with civil society stakeholders, so that as many partners as possible can propose an active CLLD approach before the deadline for proposals (31 December 2017). |
| --- | --- |

f)

building up the capacities of social and economic partners, along with civil society stakeholders, so that as many partners as possible can propose an active CLLD approach before the deadline for proposals (31 December 2017).

| 1.12. | The CLLD is not only fully applicable to ESIF resources, but can also be used to redistribute own resources (from local, regional and national levels). This is why it is important that development strategies, particular projects and their manner of implementation are not based on anticipated EU funding, but reflect the real need for a better quality of life in the local community. |
| --- | --- |

1.12.

The CLLD is not only fully applicable to ESIF resources, but can also be used to redistribute own resources (from local, regional and national levels). This is why it is important that development strategies, particular projects and their manner of implementation are not based on anticipated EU funding, but reflect the real need for a better quality of life in the local community.

| 1.13. | The Committee considers it absolutely essential to stick to the basic principles of the CLLD method. Properly balanced partnerships that involve the local community must be a pre-condition for getting grants. If local development is to be effective, local authorities must not be allowed to merely pay lip service — claiming to be taking a partnership approach but not in fact doing so — in order to get grants. An effective control and supervisory system has to be engineered to counter abuse of the CLLD principle. |
| --- | --- |

1.13.

The Committee considers it absolutely essential to stick to the basic principles of the CLLD method. Properly balanced partnerships that involve the local community must be a pre-condition for getting grants. If local development is to be effective, local authorities must not be allowed to merely pay lip service — claiming to be taking a partnership approach but not in fact doing so — in order to get grants. An effective control and supervisory system has to be engineered to counter abuse of the CLLD principle.

| 1.14. | The EESC notes that this instrument offers elements that are far from negligible — and not just at a time of economic crisis: transparency of public budget streams, increased trust between authorities and the public and efficacy of the resources invested. The UN, OECD, the World Bank and other institutions are also employing similar partnership-based approaches. This is an expanded approach that supports the use of CLLD beyond Europe, for example in pre-accession negotiations on development policy and in the endeavour to meet the UN sustainable development goals for 2015 and climate change obligations. |
| --- | --- |

1.14.

The EESC notes that this instrument offers elements that are far from negligible — and not just at a time of economic crisis: transparency of public budget streams, increased trust between authorities and the public and efficacy of the resources invested. The UN, OECD, the World Bank and other institutions are also employing similar partnership-based approaches. This is an expanded approach that supports the use of CLLD beyond Europe, for example in pre-accession negotiations on development policy and in the endeavour to meet the UN sustainable development goals for 2015 and climate change obligations.

| 1.15. | For the EESC, the possible challenges for the forthcoming period in CLLD are about simplification and curbing of red tape:






  a) | supporting the creation and development of alternative, independent decision-making and/or arbitration systems (platforms), made up of experts, to find quick, simple solutions to administrative and financial problems or possible conflicts between management authorities and the project managers of partnerships (on the model of financial auditors, albeit not solely for financial matters); |
| --- | --- | --- |

1.15.

For the EESC, the possible challenges for the forthcoming period in CLLD are about simplification and curbing of red tape:

a)

supporting the creation and development of alternative, independent decision-making and/or arbitration systems (platforms), made up of experts, to find quick, simple solutions to administrative and financial problems or possible conflicts between management authorities and the project managers of partnerships (on the model of financial auditors, albeit not solely for financial matters);

| b) | putting into practice the principle that the implementing bodies (including when examining monitoring reports) focus on a) tangible implementations, outcomes, benefits and impacts of projects, b) eligibility of costs and c) meeting of deadlines — rather than incidentals on the way to these results; |
| --- | --- |

b)

putting into practice the principle that the implementing bodies (including when examining monitoring reports) focus on a) tangible implementations, outcomes, benefits and impacts of projects, b) eligibility of costs and c) meeting of deadlines — rather than incidentals on the way to these results;

| c) | also announcing calls in the given area for integrated projects submitted by several applicants (similarly to the EQUAL approach); |
| --- | --- |

c)

also announcing calls in the given area for integrated projects submitted by several applicants (similarly to the EQUAL approach);

| d) | changing, in the financial ambit, the current interpretations of irregularities and the concept of infringing budgetary discipline:






  — | avoiding an unduly severe interpretation in trivial cases involving a few euro: not investigating or classifying as irregularities cases where less than, for example, a sum of ten (or 40) euro is incorrectly entered or is missing; |
| --- | --- | --- |

d)

changing, in the financial ambit, the current interpretations of irregularities and the concept of infringing budgetary discipline:

—

avoiding an unduly severe interpretation in trivial cases involving a few euro: not investigating or classifying as irregularities cases where less than, for example, a sum of ten (or 40) euro is incorrectly entered or is missing;

| — | equally, if the damage is less than the cost of its remedy (for the recipient and the inspection body), it should be ignored or perhaps logged and added to other minor losses. |
| --- | --- |

—

equally, if the damage is less than the cost of its remedy (for the recipient and the inspection body), it should be ignored or perhaps logged and added to other minor losses.

| 1.16. | The EESC suggests that different terms be used to designate different ways in which the CLLD programme is used, as in the case of rural local action groups and fisheries local action groups. Urban LAGS, for example, would be called Urban Partnerships and CLLD in the urban area would be called CLLD-U. This way it would be clearer what kind of area was involved and easier to distinguish between financing streams and where they were targeted. At the same time we suggest following the example of the successful LEADER programme and consider a new name form CLLD — an attractive acronym that would be a rallying cry for all those involved. The name is an intrinsic part of a propaganda campaign and the term CLLD can still remain in smaller print, as it were, as the name of the method. |
| --- | --- |

1.16.

The EESC suggests that different terms be used to designate different ways in which the CLLD programme is used, as in the case of rural local action groups and fisheries local action groups. Urban LAGS, for example, would be called Urban Partnerships and CLLD in the urban area would be called CLLD-U. This way it would be clearer what kind of area was involved and easier to distinguish between financing streams and where they were targeted. At the same time we suggest following the example of the successful LEADER programme and consider a new name form CLLD — an attractive acronym that would be a rallying cry for all those involved. The name is an intrinsic part of a propaganda campaign and the term CLLD can still remain in smaller print, as it were, as the name of the method.

2.   Introduction: The CLLD instrument and its origins (LEADER programme) — history, impact and views from the European institutions

| 2.1. | Fundamental principles of the LEADER method — their added value and application in CLLD: |
| --- | --- |

2.1.

Fundamental principles of the LEADER method — their added value and application in CLLD:

2.1.1.   An approach tailored to the area in question

The programme uses the real potential of small defined areas to promote their sustainable development. It takes on board their pluses and minuses and produces a development strategy that matches their real needs. The confines of an area are not established solely by administrative borders and are elastic.

2.1.2.   A bottom-up approach

In deciding on and setting development strategy priorities we place great emphasis on involving local administration and the public. The stress on the lowest level is the most important of the programme’s seven points. In this, however, the programme is not seeking to take the place of the higher — national — tier, but merely to foster communication between these two strata.

2.1.3.   Local action groups

One important facet of the programme is to lend help in setting up Local Action Groups. The purpose of these groups is to link partners from the public, private and voluntary spheres and prompt dialogue about what direction the area’s development should take.

2.1.4.   An innovative approach

The programme supports innovation. It endeavours to create new products, processes, organisations and markets. The way to achieve innovation is to give the Local Action Groups the greatest possible room for manoeuvre.

2.1.5.   An integrated and multisectoral approach

The programme’s approach lays stress on the integration of various sectors. It seeks to dovetail the economic, social, cultural and environmental dimensions and integrate them into comprehensive projects.

2.1.6.   Building up networks

The programme foregrounds the creation of networks to pool experience among its participants. These networks are both institutional (funded by the European Commission) and less formal: national, regional and local.

2.1.7.   Cooperation

However, there is more to cooperation in this programme than pooling experience within networks. Local groups can also work directly together on a project in one particular thematic objective.

2.1.8.   Grassroots mobilisation

Hands-on work with local residents means not just keeping them informed, but also opening channels for communication and building confidence in the principle that their ideas will be objectively appraised and processed.

| 2.2. | The Committee of the Regions: ‘regards CLLD as a key tool for harmonious development of urban and rural areas, strengthening capacity to develop ties with the surrounding peri-urban and rural areas’ (3). |
| --- | --- |

2.2.

The Committee of the Regions: ‘regards CLLD as a key tool for harmonious development of urban and rural areas, strengthening capacity to develop ties with the surrounding peri-urban and rural areas’ (3).

| 2.3. | The European Economic and Social Committee has issued a series of opinions on cooperation and participation between partners, some of which are referred to in the footnotes (4). |
| --- | --- |

2.3.

The European Economic and Social Committee has issued a series of opinions on cooperation and participation between partners, some of which are referred to in the footnotes (4).

| 2.4. | The European Commission has published documents for the implementation of CLLD based on LEADER experience entitled ‘European Structural and Investment Funds, Guidance for Member States and Programme Authorities, Guidance for Beneficiaries — Guidance on Community-Led Local Development for Local Actors’ (5) and ‘Guidance on Community Led Local Development in European Structural and Investment Funds’ (6). |
| --- | --- |

2.4.

The European Commission has published documents for the implementation of CLLD based on LEADER experience entitled ‘European Structural and Investment Funds, Guidance for Member States and Programme Authorities, Guidance for Beneficiaries — Guidance on Community-Led Local Development for Local Actors’ (5) and ‘Guidance on Community Led Local Development in European Structural and Investment Funds’ (6).

| 2.5. | These should be better disseminated using a truly proactive information strategy. At the same time, a regular forum has to be provided where those taking part in CLLD can meet experts and discuss and compare approaches in various EU regions. The EESC could do some of the support work for this. |
| --- | --- |

2.5.

These should be better disseminated using a truly proactive information strategy. At the same time, a regular forum has to be provided where those taking part in CLLD can meet experts and discuss and compare approaches in various EU regions. The EESC could do some of the support work for this.

3.   Local action groups (LAGs) in rural areas and support for their role in the period 2014-20: public budgets under public control

| 3.1. | Local Action Groups are the building blocks of the LEADER programme. These are local partnerships in which both sectors and areas of action are proportionately represented. They are legal entities with managerial and decision-making procedures. The total number of LAGs in the EU supported from rural development programmes and other LEADER-type measures is 2  402. They cover 77 % of the EU’s total area (7), which equals around 90 % of the rural area, and more than 50 % of the EU population (8). |
| --- | --- |

3.1.

Local Action Groups are the building blocks of the LEADER programme. These are local partnerships in which both sectors and areas of action are proportionately represented. They are legal entities with managerial and decision-making procedures. The total number of LAGs in the EU supported from rural development programmes and other LEADER-type measures is 2  402. They cover 77 % of the EU’s total area (7), which equals around 90 % of the rural area, and more than 50 % of the EU population (8).

| 3.2. | The LEADER method has proven to be such a success that it should be extended, as far as possible, to cover all rural areas in the EU. It is also important to ensure the compatibility of the rules underpinning international cooperation between the LAGs established in the various Member States. |
| --- | --- |

3.2.

The LEADER method has proven to be such a success that it should be extended, as far as possible, to cover all rural areas in the EU. It is also important to ensure the compatibility of the rules underpinning international cooperation between the LAGs established in the various Member States.

| 3.3. | The programme’s proposed priorities for 2014-20 include:






  a) | young people in rural areas — getting young people away from centres and into rural areas, an initiative that can be achieved through CLLD; making rural areas more attractive for the younger generation; supporting the development and availability of information technology, promoting education; |
| --- | --- | --- |

3.3.

The programme’s proposed priorities for 2014-20 include:

a)

young people in rural areas — getting young people away from centres and into rural areas, an initiative that can be achieved through CLLD; making rural areas more attractive for the younger generation; supporting the development and availability of information technology, promoting education;

| b) | the local economy — supporting the local economy, small non-agricultural businesses (e.g. revitalising cottage industries and micro-enterprises) and SMEs; |
| --- | --- |

b)

the local economy — supporting the local economy, small non-agricultural businesses (e.g. revitalising cottage industries and micro-enterprises) and SMEs;

| c) | social entrepreneurship — strengthening social entrepreneurship locally in innovative sectors, thus creating jobs and sustainable development (e.g. tourism, renewable energies, or culture and sport). It is essential for the social economy to be recognised by local, national and EU stakeholders and other economic partners as a key driver for local economic and social development. The EU institutions should propose campaigns to highlight the social economy’s contribution to local development. They should also draft general guidelines on incorporating social businesses into local development partnerships. To this end, the EESC proposes the creation of cooperatives and other social enterprises with the help of public and private advisory services supported by local entrepreneurs and business incubators. The EESC endorses the promotion of partnerships between local social enterprises and local and regional administration to provide needed services (e.g. social inclusion and education); |
| --- | --- |

c)

social entrepreneurship — strengthening social entrepreneurship locally in innovative sectors, thus creating jobs and sustainable development (e.g. tourism, renewable energies, or culture and sport). It is essential for the social economy to be recognised by local, national and EU stakeholders and other economic partners as a key driver for local economic and social development. The EU institutions should propose campaigns to highlight the social economy’s contribution to local development. They should also draft general guidelines on incorporating social businesses into local development partnerships. To this end, the EESC proposes the creation of cooperatives and other social enterprises with the help of public and private advisory services supported by local entrepreneurs and business incubators. The EESC endorses the promotion of partnerships between local social enterprises and local and regional administration to provide needed services (e.g. social inclusion and education);

| d) | healthy food production and regional products; |
| --- | --- |

d)

healthy food production and regional products;

| e) | development of technical infrastructure (e.g. treatment plants for waste water, including individual and by phyto-purification); |
| --- | --- |

e)

development of technical infrastructure (e.g. treatment plants for waste water, including individual and by phyto-purification);

| f) | transition to a sustainable, low-carbon society. This could be reflected in CLLD indicators and goals for sustainability, carbon emissions, resilience and meeting EU sustainable development and climate change goals, as well as the UN 2015 sustainable development goals and climate change commitments. |
| --- | --- |

f)

transition to a sustainable, low-carbon society. This could be reflected in CLLD indicators and goals for sustainability, carbon emissions, resilience and meeting EU sustainable development and climate change goals, as well as the UN 2015 sustainable development goals and climate change commitments.

| g) | effective use of existing networks (such as National Rural Networks). |
| --- | --- |

g)

effective use of existing networks (such as National Rural Networks).

4.   The peri-urban area and local action groups in fisheries — specific challenges

| 4.1. | Places where urban and rural areas lie in close proximity are ones that offer potential for effective use of CLLD. This type of instrument makes it possible to react to developments in the area and so take on board its functional interconnections. Links between urban and peri-urban rural areas are very strong and merit a special approach. |
| --- | --- |

4.1.

Places where urban and rural areas lie in close proximity are ones that offer potential for effective use of CLLD. This type of instrument makes it possible to react to developments in the area and so take on board its functional interconnections. Links between urban and peri-urban rural areas are very strong and merit a special approach.

| 4.2. | Peri-urban areas have their own distinct problems or challenges that can be tackled using CLLD. The key challenges are sustainable mobility, creating a socially cohesive society and fixing priorities for land use. The peri-urban area is understood as the hinterland of towns with a population above 25  000. One project worth mentioning is the joint OECD and EC Rurban research project, the purpose of which was to identify and evaluate formal and informal urban-rural partnerships and their contribution to local development (9). |
| --- | --- |

4.2.

Peri-urban areas have their own distinct problems or challenges that can be tackled using CLLD. The key challenges are sustainable mobility, creating a socially cohesive society and fixing priorities for land use. The peri-urban area is understood as the hinterland of towns with a population above 25  000. One project worth mentioning is the joint OECD and EC Rurban research project, the purpose of which was to identify and evaluate formal and informal urban-rural partnerships and their contribution to local development (9).

| 4.3. | Since 2007, local development has also been used within the European Fisheries Fund to support the sustainable development of fishing communities through local action groups in fisheries (FLAGs). |
| --- | --- |

4.3.

Since 2007, local development has also been used within the European Fisheries Fund to support the sustainable development of fishing communities through local action groups in fisheries (FLAGs).

5.   Urban areas — getting the population involved and securing local development funding

| 5.1. | Since there is no agreed definition of an urban area, we are using national and local rules. For rural areas the criterion is that a town has a maximum population of 25  000. This can be used by extension to urban areas, in this case with a minimum population size of 10  000 and a maximum of 1 50  000. Public administration should be represented by those with responsibility in the area concerned, ideally in a combination drawn from the central municipal authority and from one or more boroughs (for example, particular districts, socially excluded localities, or urban areas with a specific problem). |
| --- | --- |

5.1.

Since there is no agreed definition of an urban area, we are using national and local rules. For rural areas the criterion is that a town has a maximum population of 25  000. This can be used by extension to urban areas, in this case with a minimum population size of 10  000 and a maximum of 1 50  000. Public administration should be represented by those with responsibility in the area concerned, ideally in a combination drawn from the central municipal authority and from one or more boroughs (for example, particular districts, socially excluded localities, or urban areas with a specific problem).

| 5.2. | Inspiration can be found in the experience of cities collected thanks to their inclusion in the Urbact II operational programme and the European Knowledge Development Platform (10) (as well as the Urban Development Platform in the near future) (11). The experience of Transition Towns and permaculture communities is also worth mentioning, where several thousand local communities throughout the EU have conducted successful community-led sustainable development. |
| --- | --- |

5.2.

Inspiration can be found in the experience of cities collected thanks to their inclusion in the Urbact II operational programme and the European Knowledge Development Platform (10) (as well as the Urban Development Platform in the near future) (11). The experience of Transition Towns and permaculture communities is also worth mentioning, where several thousand local communities throughout the EU have conducted successful community-led sustainable development.

| 5.3. | The two decades of experience that rural areas have had means it is they who will be giving the lead to urban areas — initially, for example, for a transition period that will then be evaluated. This, combined with further expert support and coaching, will in effect ensure successful transfer of the method. |
| --- | --- |

5.3.

The two decades of experience that rural areas have had means it is they who will be giving the lead to urban areas — initially, for example, for a transition period that will then be evaluated. This, combined with further expert support and coaching, will in effect ensure successful transfer of the method.

| 5.4. | Back in the 2007-13 programming period advisory bodies (Urbact Local Support Groups) were set up at urban level and took part in conceiving Local Action Plans. However, these were looser advisory groupings than in the LEADER and CLLD method and there was no strict requirement for particular sectors to be involved: their make-up depended on the kind of project at hand. The work of these local support groups was not supported financially by Urbact II operational programme. To make the partnership principle work better in the urban environment as well as well as the rural, partnerships have to be forged on the basis of CLLD and funding should be available to underwrite their operations. ‘[This] approach [...] can also be applied in urban areas or in areas covering medium-sized and small towns together with their functional surroundings, as local or sub-regional development centres’ (12). |
| --- | --- |

5.4.

Back in the 2007-13 programming period advisory bodies (Urbact Local Support Groups) were set up at urban level and took part in conceiving Local Action Plans. However, these were looser advisory groupings than in the LEADER and CLLD method and there was no strict requirement for particular sectors to be involved: their make-up depended on the kind of project at hand. The work of these local support groups was not supported financially by Urbact II operational programme. To make the partnership principle work better in the urban environment as well as well as the rural, partnerships have to be forged on the basis of CLLD and funding should be available to underwrite their operations. ‘[This] approach [...] can also be applied in urban areas or in areas covering medium-sized and small towns together with their functional surroundings, as local or sub-regional development centres’ (12).

| 5.5. | Given the problems tackled in cities, one of a number of operational programmes could be the right instrument for funding pilot programmes via CLLD. We therefore propose that the CLLD method and the strategies it generates in pilot programmes should benefit from funding provided for in urban areas (for example, for the environment, preservation of cultural monuments and natural heritage, and so on) (13). |
| --- | --- |

5.5.

Given the problems tackled in cities, one of a number of operational programmes could be the right instrument for funding pilot programmes via CLLD. We therefore propose that the CLLD method and the strategies it generates in pilot programmes should benefit from funding provided for in urban areas (for example, for the environment, preservation of cultural monuments and natural heritage, and so on) (13).

| 5.6. | It would make sense to gather examples of best practice from various Member States in urban development using the partnership approach that could be included in the study referred to in point 1.10. One guide to use for working in partnerships could be The partnership principle in the implementation of the Common Strategic Framework Funds — elements for a European Code of Conduct on Partnership (14). |
| --- | --- |

5.6.

It would make sense to gather examples of best practice from various Member States in urban development using the partnership approach that could be included in the study referred to in point 1.10. One guide to use for working in partnerships could be The partnership principle in the implementation of the Common Strategic Framework Funds — elements for a European Code of Conduct on Partnership (14).

6.   How can we get CLLD used more often across the board?

| 6.1. | Community Led Local Development is intended to help the public develop their municipalities in a meaningful and sustainable way. Through CLLD they can take part directly in improving the quality of life in their communities: this is about real inclusive growth with visible outcomes at local level. Clearly, the introduction of CLLD requires funding for capacity-building if all the partners are really to function as such — and not merely as observers — and be actively involved in horizontal partnerships in the spirit of multilevel governance. Coaching and mentoring (i.e., education and training) from more experienced players also has to be facilitated. The present proposal also has to analyse and explain the reasons why LEADER method works and is a success and justify why the CLLD method should be extended to all ESIF programmes to make cohesion policy a success. |
| --- | --- |

6.1.

Community Led Local Development is intended to help the public develop their municipalities in a meaningful and sustainable way. Through CLLD they can take part directly in improving the quality of life in their communities: this is about real inclusive growth with visible outcomes at local level. Clearly, the introduction of CLLD requires funding for capacity-building if all the partners are really to function as such — and not merely as observers — and be actively involved in horizontal partnerships in the spirit of multilevel governance. Coaching and mentoring (i.e., education and training) from more experienced players also has to be facilitated. The present proposal also has to analyse and explain the reasons why LEADER method works and is a success and justify why the CLLD method should be extended to all ESIF programmes to make cohesion policy a success.

| 6.2. | Where the method has not yet been adopted, a mid-term evaluation should be used to launch it in the ambit of the European Structural and Investment Funds (ESIFs) for the period 2014-20. |
| --- | --- |

6.2.

Where the method has not yet been adopted, a mid-term evaluation should be used to launch it in the ambit of the European Structural and Investment Funds (ESIFs) for the period 2014-20.

| 6.3. | One important aspect is pooling the expertise of social and economic partners, civil society representatives, and local and national government, which should be backed on all sides. |
| --- | --- |

6.3.

One important aspect is pooling the expertise of social and economic partners, civil society representatives, and local and national government, which should be backed on all sides.

| 6.4. | It takes some time to put together CLLD strategies. Even so, it is important that enough time is available in the given period to implement them and enough money to fund individual measures. Overlong preparation that produces nothing on the ground (in the form of projects carried out) and hasty funding of activities (as drawdown periods run out) undermine the instrument’s credibility. |
| --- | --- |

6.4.

It takes some time to put together CLLD strategies. Even so, it is important that enough time is available in the given period to implement them and enough money to fund individual measures. Overlong preparation that produces nothing on the ground (in the form of projects carried out) and hasty funding of activities (as drawdown periods run out) undermine the instrument’s credibility.

| 6.5. | Other problems that need sorting out if CLLD is to be used properly are red tape and excessive bureaucratic hurdles, late reimbursement of expenditure, and funding of projects up front from own resources or loans with interest shouldered by the final beneficiaries. It could be worth looking into crowdfunding, public-private funding, and organised participation of the banking sector, with State guarantees. |
| --- | --- |

6.5.

Other problems that need sorting out if CLLD is to be used properly are red tape and excessive bureaucratic hurdles, late reimbursement of expenditure, and funding of projects up front from own resources or loans with interest shouldered by the final beneficiaries. It could be worth looking into crowdfunding, public-private funding, and organised participation of the banking sector, with State guarantees.

| 6.6. | Member States often introduce unnecessary ‘national’ administrative regulations over and above what the Commission lays down. This makes it much more difficult to get grants and, together with fear of possible adverse consequences, deters applicants. There are also national authorities that try to minimise the red tape involved in grassroots mobilisation and the administration of small LAGs. Nevertheless, this measure is likely to plunge the functioning of the entire system into crisis. |
| --- | --- |

6.6.

Member States often introduce unnecessary ‘national’ administrative regulations over and above what the Commission lays down. This makes it much more difficult to get grants and, together with fear of possible adverse consequences, deters applicants. There are also national authorities that try to minimise the red tape involved in grassroots mobilisation and the administration of small LAGs. Nevertheless, this measure is likely to plunge the functioning of the entire system into crisis.

| 6.7. | The EESC calls for training for trainers: training of national or regional players should be provided as technical support under Article 5 of Regulation (EU) No 1303/2013, which sets out the general provisions. Equally, the right conditions need to be put in place to effectively set up regional, national and international networks, given that networks yield substantial dividends. |
| --- | --- |

6.7.

The EESC calls for training for trainers: training of national or regional players should be provided as technical support under Article 5 of Regulation (EU) No 1303/2013, which sets out the general provisions. Equally, the right conditions need to be put in place to effectively set up regional, national and international networks, given that networks yield substantial dividends.

| 6.8. | It would make sense to gather examples of best practice from various Member States that could be included in the study referred to in point 1.10. |
| --- | --- |

6.8.

It would make sense to gather examples of best practice from various Member States that could be included in the study referred to in point 1.10.

Brussels, 11 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

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(1)  For the period 2014-20, Regulation (EU) No 1303/2013 laying down common provisions sets out three different integrated approaches: CLLD is one of them, the others being Integrated Territorial Investment (ITI) and joint action plans.

1

(2)  Requiring and ensuring the same operating conditions for the CLLD instrument in all the Member States, in line with the principles of the method and taking on board particular national and regional characteristics.

2

(3)  Opinion of the Committee of the Regions on Community-led Local Development (OJ C 17, 19.1.2013, p. 18).

3

(4)  EESC opinions on: Governance and partnership at national and regional level (OJ C 77, 31.3.2009, p. 143), Cohesion policy strategies and programmes (2007-13) (OJ C 228, 22.9.2009, p. 141), Efficient partnership in the management of cohesion policy (OJ C 44, 11.2.2011, p. 1), The role and priorities of cohesion policy within the EU 2020 strategy (OJ C 248, 25.8.2011, p. 1), Regional policy contributing to smart growth (OJ C 318, 29.10.2011, p. 82), LEADER as a tool for local development (OJ C 376, 22.12.2011, p. 15), and Structural Funds — General Provisions (OJ C 191, 29.6.2012, p. 30).

4

(5)  http://ec.europa.eu/regional_policy/sources/docgener/informat/2014/guidance_clld_local_actors.pdf

5

(6)  http://ec.europa.eu/regional_policy/sources/docgener/informat/2014/guidance_community_local_development.pdf

6

(7)  European Network for Rural Development (ENRD), LEADER Infographic.

7

(8)  Depoele, van L., ‘Local development strategies in the EU’, The Case of LEADER in Rural Development, p. 4: http://www.eurolocaldevelopment.org/wp-content/uploads/2013/03/local_development_strategies_in_the_eu-.pdf

8

(9)  http://www.oecd.org/regional/rurbanrural-urbanpartnerships.htm

9

(10)  www.eukn.org

10

(11)  http://www.emi-network.eu/Sharing_knowledge/News_on_EU_policy/Cohesion_Policy_2014_2020_negotiations_about_the_urban_dimension

11

(12)  Association of Polish Cities, January 2014: http://ldnet.eu/CLLD+in+urban+areas

12

(13)  Another relevant integration instrument, alongside the CLLD instrument, is Integrated Territorial Investment (ITI). Their use in tandem will deliver synergies.

13

(14)  http://ec.europa.eu/regional_policy/sources/docoffic/working/strategic_framework/swd_2012_106_en.pdf

14

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| 14.7.2015 | EN | Official Journal of the European Union | C 230/9 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/9

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Opinion of the European Economic and Social Committee on the ‘EU Strategy for the Alpine Region’

(exploratory opinion)

(2015/C 230/02)

| Rapporteur: | Mr Stefano PALMIERI |
| --- | --- |

Rapporteur:

Mr Stefano PALMIERI

On 27 October 2014, the European Commission asked the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, to draw up an exploratory opinion on:

An EU Strategy for the Alpine Region (EUSALP).

The Section for Economic and Monetary Union and Economic and Social Cohesion, which was responsible for preparing the Committee’s work on the subject, adopted its opinion on 18 November 2014.

At its 503rd plenary session, held on 10 and 11 December 2014 (meeting of 10 December), the European Economic and Social Committee adopted the following opinion by 132 votes with 3 abstentions.

1.   Conclusions and recommendations

| 1.1. | The EESC welcomes the special care that has been taken in drawing up the European Union Strategy for the Alpine Region (EUSALP), the aim of which is to bolster cohesion and competitiveness to meet the challenges that single Member States or regions cannot tackle satisfactorily by employing the usual means. |
| --- | --- |

1.1.

The EESC welcomes the special care that has been taken in drawing up the European Union Strategy for the Alpine Region (EUSALP), the aim of which is to bolster cohesion and competitiveness to meet the challenges that single Member States or regions cannot tackle satisfactorily by employing the usual means.

| 1.2. | The EESC notes that central to the development of the Alpine region is the Alps mountain range itself, which is very much the region’s calling card and serves as the economic, social and environmental fulcrum between all the areas involved in the strategy. |
| --- | --- |

1.2.

The EESC notes that central to the development of the Alpine region is the Alps mountain range itself, which is very much the region’s calling card and serves as the economic, social and environmental fulcrum between all the areas involved in the strategy.

| 1.3. | The Committee points out the strong political commitment to the EUSALP by the countries taking part and that both national and regional governments are very much informed and involved. This awareness of the issue is the result of a cooperation process launched in the area back in the 1970s. |
| --- | --- |

1.3.

The Committee points out the strong political commitment to the EUSALP by the countries taking part and that both national and regional governments are very much informed and involved. This awareness of the issue is the result of a cooperation process launched in the area back in the 1970s.

| 1.4. | The EESC thinks that the Alpine region’s distinguishing features — which include some of the most competitive territorial systems in the world, economic and social imbalances between ‘rural and mountain areas’ and ‘urban areas and cities’, the natural and cultural heritage and the very dense concentration of transport flows — are what define and shape it. |
| --- | --- |

1.4.

The EESC thinks that the Alpine region’s distinguishing features — which include some of the most competitive territorial systems in the world, economic and social imbalances between ‘rural and mountain areas’ and ‘urban areas and cities’, the natural and cultural heritage and the very dense concentration of transport flows — are what define and shape it.

| 1.5. | While the EESC endorses the strategy’s overall approach and believes its goals, pillars and priorities to reflect what is in the discussion document, it nevertheless feels that these should be incorporated and improved when the action plan is drafted. |
| --- | --- |

1.5.

While the EESC endorses the strategy’s overall approach and believes its goals, pillars and priorities to reflect what is in the discussion document, it nevertheless feels that these should be incorporated and improved when the action plan is drafted.

| 1.6. | The EESC notes that the area to be covered by the EUSALP is significantly above the European average in terms of economic development, environmental sustainability and social cohesion. Even so, the economic and financial crisis and the changes wrought by globalisation of the economy and markets are posing big, stubborn challenges to the macro-regions we are discussing. This is why the EESC maintains that achieving the overall aim of the EUSALP strategy — ‘to ensure that this Region remains one of the most attractive areas in Europe, taking better advantage of its assets and seizing its opportunities for sustainable and innovative development’ (1) — is extremely important for underpinning Europe’s economic competitiveness and social cohesion. |
| --- | --- |

1.6.

The EESC notes that the area to be covered by the EUSALP is significantly above the European average in terms of economic development, environmental sustainability and social cohesion. Even so, the economic and financial crisis and the changes wrought by globalisation of the economy and markets are posing big, stubborn challenges to the macro-regions we are discussing. This is why the EESC maintains that achieving the overall aim of the EUSALP strategy — ‘to ensure that this Region remains one of the most attractive areas in Europe, taking better advantage of its assets and seizing its opportunities for sustainable and innovative development’ (1) — is extremely important for underpinning Europe’s economic competitiveness and social cohesion.

| 1.7. | It is crucial, the Committee believes, to strengthen the EUSALP’s comprehensive approach to development by specifying new and more qualitative goals as set out in point 4.4 below. |
| --- | --- |

1.7.

It is crucial, the Committee believes, to strengthen the EUSALP’s comprehensive approach to development by specifying new and more qualitative goals as set out in point 4.4 below.

| 1.8. | The EESC would like to see the EUSALP action plan establishing greater interdependence between the priorities of competitiveness (pillar 1) and sustainability (pillar 3). This would make sure development goals were achieved without compromising the needs and chances of future generations. |
| --- | --- |

1.8.

The EESC would like to see the EUSALP action plan establishing greater interdependence between the priorities of competitiveness (pillar 1) and sustainability (pillar 3). This would make sure development goals were achieved without compromising the needs and chances of future generations.

| 1.9. | For the first pillar, the EESC thinks it essential to ensure sustainable growth and to foster full employment, innovation, competitiveness and cohesion in the Alpine region through mutual solidarity between upland and urban areas. The priorities will be discussed in point 5.2 below. |
| --- | --- |

1.9.

For the first pillar, the EESC thinks it essential to ensure sustainable growth and to foster full employment, innovation, competitiveness and cohesion in the Alpine region through mutual solidarity between upland and urban areas. The priorities will be discussed in point 5.2 below.

| 1.10. | Regarding the second pillar, the EESC endorses the promotion of territorial development based on cooperation between internal and external territorial systems, accessibility of services, sustainable mobility and upgrading transport modes and communication infrastructure. The priorities will be discussed in point 5.3 below. |
| --- | --- |

1.10.

Regarding the second pillar, the EESC endorses the promotion of territorial development based on cooperation between internal and external territorial systems, accessibility of services, sustainable mobility and upgrading transport modes and communication infrastructure. The priorities will be discussed in point 5.3 below.

| 1.11. | Concerning the third pillar, the EESC thinks it essential to redouble efforts to achieve sustainable management and protection of the environment and to upgrade the area’s territorial assets. The priorities will be discussed in point 5.4 below. |
| --- | --- |

1.11.

Concerning the third pillar, the EESC thinks it essential to redouble efforts to achieve sustainable management and protection of the environment and to upgrade the area’s territorial assets. The priorities will be discussed in point 5.4 below.

| 1.12. | The EESC believes that without strong governance and targeted financial resources for capacity-building the EUSALP risks failing to deliver and forfeiting its strategic value. With this in mind, and echoing the Council conclusions, the EESC would like to see an action plan built on complementarity between funding programmes, consistency between institutional instruments and the creation of new macro-regional projects (2). |
| --- | --- |

1.12.

The EESC believes that without strong governance and targeted financial resources for capacity-building the EUSALP risks failing to deliver and forfeiting its strategic value. With this in mind, and echoing the Council conclusions, the EESC would like to see an action plan built on complementarity between funding programmes, consistency between institutional instruments and the creation of new macro-regional projects (2).

| 1.13. | The EESC takes the view — already voiced in the conclusions of its opinion on the governance of macro-regional strategies (3) — that a bespoke governance system based on cooperation and coordination is needed for the design and launch of the EUSALP. With this in mind, the Committee thinks that for the strategy to work the EUSALP must have an effective multilevel governance (4) that can capitalise on both the horizontal dimension (civil society participation) and the vertical dimension (participation of local and regional authorities) that it combines with and reinforces, fully in keeping with the principles of subsidiarity and proportionality (5). |
| --- | --- |

1.13.

The EESC takes the view — already voiced in the conclusions of its opinion on the governance of macro-regional strategies (3) — that a bespoke governance system based on cooperation and coordination is needed for the design and launch of the EUSALP. With this in mind, the Committee thinks that for the strategy to work the EUSALP must have an effective multilevel governance (4) that can capitalise on both the horizontal dimension (civil society participation) and the vertical dimension (participation of local and regional authorities) that it combines with and reinforces, fully in keeping with the principles of subsidiarity and proportionality (5).

| 1.14. | The EESC would like to see organised civil society involved in capacity building and welcomes the launching of a permanent forum to represent and support the Alpine region’s social and economic partners. |
| --- | --- |

1.14.

The EESC would like to see organised civil society involved in capacity building and welcomes the launching of a permanent forum to represent and support the Alpine region’s social and economic partners.

| 1.15. | It is crucial, in the EESC’s view, to boost employment — especially that of the young and the long-term unemployed — and to beef up measures to encourage social investment and adaptation of social security systems. |
| --- | --- |

1.15.

It is crucial, in the EESC’s view, to boost employment — especially that of the young and the long-term unemployed — and to beef up measures to encourage social investment and adaptation of social security systems.

2.   The EU Strategy for the Alpine Region: general comments

| 2.1. | The purpose of this opinion is to assess the public consultation document on the ‘EU Strategy for the Alpine Region’ (6) (EUSALP), including in the light of earlier Committee opinions on macro-regional strategies. |
| --- | --- |

2.1.

The purpose of this opinion is to assess the public consultation document on the ‘EU Strategy for the Alpine Region’ (6) (EUSALP), including in the light of earlier Committee opinions on macro-regional strategies.

| 2.2. | The Alpine region covers five EU Member States (Italy, France, Austria, Germany and Slovenia) and two non-EU countries (Switzerland and Liechtenstein) and covers an area of 4 50  000 km2 with a population of 70 million. |
| --- | --- |

2.2.

The Alpine region covers five EU Member States (Italy, France, Austria, Germany and Slovenia) and two non-EU countries (Switzerland and Liechtenstein) and covers an area of 4 50  000 km2 with a population of 70 million.

| 2.2.1. | The territorial systems within the EUSALP are intricately connected to the Alps, which are not only their calling card, but also form the economical, logistical and environmental nexus between these territories (7). |
| --- | --- |

2.2.1.

The territorial systems within the EUSALP are intricately connected to the Alps, which are not only their calling card, but also form the economical, logistical and environmental nexus between these territories (7).

| 2.3. | In terms of the macro-regional policy the EU has been pursuing since 2009, the EUSALP’s geographical position not only acquires a strategic value from the cohesion policy perspective and continuity with the EU Strategy for the Baltic Sea Region (EUSBR) (8), the European Union Strategy for the Danube Region (EUSDR) (9) and the EU Strategy for the Adriatic-Ionian Region (EUSAIR) (10), but is also a crucially important element in spreading the notion of macro-regionalism towards the eastern Mediterranean (11). |
| --- | --- |

2.3.

In terms of the macro-regional policy the EU has been pursuing since 2009, the EUSALP’s geographical position not only acquires a strategic value from the cohesion policy perspective and continuity with the EU Strategy for the Baltic Sea Region (EUSBR) (8), the European Union Strategy for the Danube Region (EUSDR) (9) and the EU Strategy for the Adriatic-Ionian Region (EUSAIR) (10), but is also a crucially important element in spreading the notion of macro-regionalism towards the eastern Mediterranean (11).

| 2.4. | Since the 1970s, the Alpine regions, straddling the national borders that have historically divided them, have come to share a common awareness of the need to see the Alpine territorial system as a single entity to be preserved and enhanced. It is for these reasons that a series of interregional, transnational and cross-border initiatives were launched whose prime aims included promoting mutual understanding among the nations signing up in order to overcome linguistic, socioeconomic and ethnic differences in favour of greater integration at European level (12). |
| --- | --- |

2.4.

Since the 1970s, the Alpine regions, straddling the national borders that have historically divided them, have come to share a common awareness of the need to see the Alpine territorial system as a single entity to be preserved and enhanced. It is for these reasons that a series of interregional, transnational and cross-border initiatives were launched whose prime aims included promoting mutual understanding among the nations signing up in order to overcome linguistic, socioeconomic and ethnic differences in favour of greater integration at European level (12).

| 2.5. | The milestones in getting the EUSALP up and running — set to conclude with Council approval by the end of 2015 (13) — were the Conference of the Alpine Regions in Bad Ragaz (June 2012) and the Grenoble conference (October 2013). |
| --- | --- |

2.5.

The milestones in getting the EUSALP up and running — set to conclude with Council approval by the end of 2015 (13) — were the Conference of the Alpine Regions in Bad Ragaz (June 2012) and the Grenoble conference (October 2013).

| 2.5.1. | The Grenoble conference (14) adopted the Political resolution towards a European Union Strategy for the Alpine region, which identified the goals, the opportunities to be seized and the challenges to be met under three main headings: competitiveness and innovation, agriculture, forestry and tourism; energy, the environment and climate; and accessibility, communications and transport. |
| --- | --- |

2.5.1.

The Grenoble conference (14) adopted the Political resolution towards a European Union Strategy for the Alpine region, which identified the goals, the opportunities to be seized and the challenges to be met under three main headings: competitiveness and innovation, agriculture, forestry and tourism; energy, the environment and climate; and accessibility, communications and transport.

3.   Consultation document: general framework, scope and objectives

| 3.1. | The Alpine range is the element in the EUSALP strategy that permeates the entire territory of cooperation. The very diverse nature of the territory — mountain areas and surrounding foothills, accessible and remote valleys, lowlands and highlands, metropolitan areas and towns — is one of the main features distinguishing the Alpine region from other parts of Europe. |
| --- | --- |

3.1.

The Alpine range is the element in the EUSALP strategy that permeates the entire territory of cooperation. The very diverse nature of the territory — mountain areas and surrounding foothills, accessible and remote valleys, lowlands and highlands, metropolitan areas and towns — is one of the main features distinguishing the Alpine region from other parts of Europe.

| 3.1.1. | To get a better idea of where EUSALP goals and priorities should be focussed, we have come up with five types of location that characterise the Alpine region: Alpine metropolitan areas; Alpine cities; expanding rural areas; rural areas in decline; and tourist areas. |
| --- | --- |

3.1.1.

To get a better idea of where EUSALP goals and priorities should be focussed, we have come up with five types of location that characterise the Alpine region: Alpine metropolitan areas; Alpine cities; expanding rural areas; rural areas in decline; and tourist areas.

| 3.2. | The Alpine region has many distinct features that merit special attention and distinguish the EUSALP from the macro-regional strategies for the Baltic, the Danube and the Adriatic and Ionian: it has some of the most highly developed regions in the world, with competitive economies, high living standards, and social and political stability; it also has glaring economic and social disparities between rural areas, plains and urban areas; a unique natural heritage and ecosystems; a cultural heritage that is a cornerstone of social cohesion and the development of the Alpine region as such; a concentration of traffic flows that has become problematic in terms of congestion and environmental protection. |
| --- | --- |

3.2.

The Alpine region has many distinct features that merit special attention and distinguish the EUSALP from the macro-regional strategies for the Baltic, the Danube and the Adriatic and Ionian: it has some of the most highly developed regions in the world, with competitive economies, high living standards, and social and political stability; it also has glaring economic and social disparities between rural areas, plains and urban areas; a unique natural heritage and ecosystems; a cultural heritage that is a cornerstone of social cohesion and the development of the Alpine region as such; a concentration of traffic flows that has become problematic in terms of congestion and environmental protection.

| 3.3. | The overall aim of the EUSALP strategy is to ensure that this region remains one of the most attractive areas in Europe, making more of its inherent resources and seizing the opportunities for sustainable and innovative development. |
| --- | --- |

3.3.

The overall aim of the EUSALP strategy is to ensure that this region remains one of the most attractive areas in Europe, making more of its inherent resources and seizing the opportunities for sustainable and innovative development.

| 3.3.1. | The way to do this will be by working on the three ‘thematic pillars’: ‘Improving competitiveness, prosperity and cohesion’, Guaranteeing accessibility and connectivity for all inhabitants’ and ‘Guaranteeing sustainability’. |
| --- | --- |

3.3.1.

The way to do this will be by working on the three ‘thematic pillars’: ‘Improving competitiveness, prosperity and cohesion’, Guaranteeing accessibility and connectivity for all inhabitants’ and ‘Guaranteeing sustainability’.

3.3.2.   First pillar: Improving the competitiveness, prosperity and cohesion of the Alpine region

| 3.3.2.1. | Although the Alpine region constitutes Europe’s largest economic area centre of production and has great development potential, lack of economic, social and territorial cohesion remains a problem. The mountains are a challenge for the area’s even development. The EUSALP seeks to foster the region’s innovative economic development by configuring a more balanced model that heeds both the diversity of the territories and their specific characteristics. Support must be given to a competitive economy that can amalgamate prosperity, energy efficiency, quality of life and the traditional values that mark the area out. |
| --- | --- |

3.3.2.1.

Although the Alpine region constitutes Europe’s largest economic area centre of production and has great development potential, lack of economic, social and territorial cohesion remains a problem. The mountains are a challenge for the area’s even development. The EUSALP seeks to foster the region’s innovative economic development by configuring a more balanced model that heeds both the diversity of the territories and their specific characteristics. Support must be given to a competitive economy that can amalgamate prosperity, energy efficiency, quality of life and the traditional values that mark the area out.

3.3.3.   Second pillar: Guaranteeing accessibility and connectivity for all the inhabitants of the Alpine region

| 3.3.3.1. | Balanced territorial development has to be fostered through environmentally friendly mobility models, sustainable transport systems, communications services and infrastructure. The Alpine region holds a strategic position in Europe’s transport system, lying across both the north-south and east-west axes. It includes Europe’s most important transport hubs and many Alpine passes that have territorial systems with particular environmental weaknesses. It is crucial to bring into play a coordinated policy that can satisfy the needs of transport, the wellbeing of the population and a healthy environmental balance. Given the disparate nature of the Alpine region and its complex geographical make-up, the concept of connectivity has to be extended in its case to embrace infrastructure and communications services. |
| --- | --- |

3.3.3.1.

Balanced territorial development has to be fostered through environmentally friendly mobility models, sustainable transport systems, communications services and infrastructure. The Alpine region holds a strategic position in Europe’s transport system, lying across both the north-south and east-west axes. It includes Europe’s most important transport hubs and many Alpine passes that have territorial systems with particular environmental weaknesses. It is crucial to bring into play a coordinated policy that can satisfy the needs of transport, the wellbeing of the population and a healthy environmental balance. Given the disparate nature of the Alpine region and its complex geographical make-up, the concept of connectivity has to be extended in its case to embrace infrastructure and communications services.

3.3.4.   Third pillar: Guaranteeing sustainability in the Alpine region

| 3.3.4.1. | Preserving the Alpine heritage and fostering sustainable use of natural and cultural resources are absolute musts for the region. Water, mineral resources, a variety of very biodiverse landscapes and a rich and diversified cultural heritage are hallmarks that have to be husbanded and enhanced. Capitalising on the potential of resources such as water and biomass in an environmentally friendly way is crucial to boost the area’s competitiveness and cohesion, since it can help achieve strategic aims such as energy self-sufficiency and the region’s energy storage capacity. |
| --- | --- |

3.3.4.1.

Preserving the Alpine heritage and fostering sustainable use of natural and cultural resources are absolute musts for the region. Water, mineral resources, a variety of very biodiverse landscapes and a rich and diversified cultural heritage are hallmarks that have to be husbanded and enhanced. Capitalising on the potential of resources such as water and biomass in an environmentally friendly way is crucial to boost the area’s competitiveness and cohesion, since it can help achieve strategic aims such as energy self-sufficiency and the region’s energy storage capacity.

4.   Specific comments on the macro-regional dimension of the Alpine region

| 4.1. | The Strategy for the Alpine Region enjoys strong political commitment and high recognition in the countries involved and is not just a challenge, but also a great opportunity for the EU itself. The EUSALP brief is to build up the economy, link up different areas and protect the environment of an area that is hugely important to Europe’s economic competitiveness and social cohesion. |
| --- | --- |

4.1.

The Strategy for the Alpine Region enjoys strong political commitment and high recognition in the countries involved and is not just a challenge, but also a great opportunity for the EU itself. The EUSALP brief is to build up the economy, link up different areas and protect the environment of an area that is hugely important to Europe’s economic competitiveness and social cohesion.

| 4.2. | Developing the EUSALP requires a structured dialogue between the various stakeholders to identify and tackle particular needs together. Environmental, economic and social characteristics need to be scrupulously heeded, as do the strong mutual dependencies between urban and rural areas. This means that a broad and transparent dialogue has to be launched between stakeholders to piece together a strategy that enjoys broad support. |
| --- | --- |

4.2.

Developing the EUSALP requires a structured dialogue between the various stakeholders to identify and tackle particular needs together. Environmental, economic and social characteristics need to be scrupulously heeded, as do the strong mutual dependencies between urban and rural areas. This means that a broad and transparent dialogue has to be launched between stakeholders to piece together a strategy that enjoys broad support.

| 4.2.1. | It is important that policies mesh with one another and further territorial cohesion. Some matters regarding economic innovation, transport modes and the environment are interdependent and cannot be approached in isolation at local level. They need the broader perspective that the macro-regional level has to offer. |
| --- | --- |

4.2.1.

It is important that policies mesh with one another and further territorial cohesion. Some matters regarding economic innovation, transport modes and the environment are interdependent and cannot be approached in isolation at local level. They need the broader perspective that the macro-regional level has to offer.

| 4.2.2. | With reference to the communication on the governance of macro-regional strategies (15), the EUSALP’s multilevel governance needs an effective horizontal dimension (civil society involvement) that combines with and reinforces the vertical dimension (participation of local and regional authorities), in full compliance with the principles of subsidiarity and proportionality. |
| --- | --- |

4.2.2.

With reference to the communication on the governance of macro-regional strategies (15), the EUSALP’s multilevel governance needs an effective horizontal dimension (civil society involvement) that combines with and reinforces the vertical dimension (participation of local and regional authorities), in full compliance with the principles of subsidiarity and proportionality.

| 4.3. | The EUSALP is, in the EESC’s view, a crucial instrument in underpinning the Alpine region’s work in areas such as economic globalisation, climate change, the information society, the knowledge-based economy, demographic change and movement of goods and people. |
| --- | --- |

4.3.

The EUSALP is, in the EESC’s view, a crucial instrument in underpinning the Alpine region’s work in areas such as economic globalisation, climate change, the information society, the knowledge-based economy, demographic change and movement of goods and people.

| 4.4. | The EUSALP will make it possible to enhance the development of the Alpine region by deploying a comprehensive approach that makes the economic, environmental and social dimensions functional and interdependent. With this rationale in mind, and in order to illustrate this holistic approach with tangible objectives, the EESC has picked out five strategic goals that should be included in the action plan:






  — | fostering a dynamic SME system and a flourishing business sector that can create jobs; |
| --- | --- | --- |

4.4.

The EUSALP will make it possible to enhance the development of the Alpine region by deploying a comprehensive approach that makes the economic, environmental and social dimensions functional and interdependent. With this rationale in mind, and in order to illustrate this holistic approach with tangible objectives, the EESC has picked out five strategic goals that should be included in the action plan:

—

fostering a dynamic SME system and a flourishing business sector that can create jobs;

| — | helping to make the most of traditions and social diversity; |
| --- | --- |

—

helping to make the most of traditions and social diversity;

| — | promoting balance and fairness in access to services of general interest throughout the Alpine region; |
| --- | --- |

—

promoting balance and fairness in access to services of general interest throughout the Alpine region;

| — | encouraging shared responsibility and fair cooperation between Alpine territories. |
| --- | --- |

—

encouraging shared responsibility and fair cooperation between Alpine territories.

| — | nurturing preservation and sustainable management of biodiversity, landscapes and natural resources. |
| --- | --- |

—

nurturing preservation and sustainable management of biodiversity, landscapes and natural resources.

| 4.4.1. | Fostering a dynamic SME system and a flourishing business sector that can create jobs. The EUSALP must expand the capacities of the territorial systems competing in a global economy, supporting the retention and creation of good-quality jobs. |
| --- | --- |

4.4.1.

Fostering a dynamic SME system and a flourishing business sector that can create jobs. The EUSALP must expand the capacities of the territorial systems competing in a global economy, supporting the retention and creation of good-quality jobs.

| 4.4.2. | Helping to make the most of traditions and social diversity. The EUSALP must help to preserve the identifying features of the areas involved while at the same time building on local knowledge and traditions as a way of furthering economic development and social inclusion. |
| --- | --- |

4.4.2.

Helping to make the most of traditions and social diversity. The EUSALP must help to preserve the identifying features of the areas involved while at the same time building on local knowledge and traditions as a way of furthering economic development and social inclusion.

| 4.4.3. | Promoting balance and fairness in access to services of general interest throughout the Alpine region. The EUSALP will serve to maintain and adapt the offer of services of general interest to meet the needs of those living locally, especially in geographically handicapped areas. |
| --- | --- |

4.4.3.

Promoting balance and fairness in access to services of general interest throughout the Alpine region. The EUSALP will serve to maintain and adapt the offer of services of general interest to meet the needs of those living locally, especially in geographically handicapped areas.

| 4.4.4. | Encouraging shared responsibility and cooperation between Alpine territories. The EUSALP must be enlisted to underpin new approaches in shared responsibility and fair cooperation between Alpine region areas, such as vertical links between large cities and rural and tourist areas. |
| --- | --- |

4.4.4.

Encouraging shared responsibility and cooperation between Alpine territories. The EUSALP must be enlisted to underpin new approaches in shared responsibility and fair cooperation between Alpine region areas, such as vertical links between large cities and rural and tourist areas.

| 4.4.5. | Nurturing protection and sustainable management of biodiversity, landscapes and natural resources. The EUSALP must be used to fortify the protection and sustainable management of biodiversity, landscapes and natural resources, striking the right balance between conservation work and initiatives to achieve a rational use of ecosystem services and products. Work also needs to be done on the adoption of environmentally friendly management models that distribute the benefits yielded by ecosystem products and services more fairly among different parts of the Alpine region. |
| --- | --- |

4.4.5.

Nurturing protection and sustainable management of biodiversity, landscapes and natural resources. The EUSALP must be used to fortify the protection and sustainable management of biodiversity, landscapes and natural resources, striking the right balance between conservation work and initiatives to achieve a rational use of ecosystem services and products. Work also needs to be done on the adoption of environmentally friendly management models that distribute the benefits yielded by ecosystem products and services more fairly among different parts of the Alpine region.

| 4.5. | The EESC thinks the EUSALP must operate in line with the decisions adopted by the Council. These stipulate, on the one hand, that macro-regional strategies should require neither additional resources, nor further regulation, nor management bodies (the three ‘no’s’) and, on the other, that action plans must be founded on complementarity between funding programmes, coordinated institutional instruments and the creation of new projects on a macro-regional scale. Capacity building requires particular attention. |
| --- | --- |

4.5.

The EESC thinks the EUSALP must operate in line with the decisions adopted by the Council. These stipulate, on the one hand, that macro-regional strategies should require neither additional resources, nor further regulation, nor management bodies (the three ‘no’s’) and, on the other, that action plans must be founded on complementarity between funding programmes, coordinated institutional instruments and the creation of new projects on a macro-regional scale. Capacity building requires particular attention.

| 4.5.1. | The EESC thinks it essential to involve organised civil society representatives alongside public authorities in capacity building. One way to do this could be to set up a permanent forum to represent the social and economic partners. |
| --- | --- |

4.5.1.

The EESC thinks it essential to involve organised civil society representatives alongside public authorities in capacity building. One way to do this could be to set up a permanent forum to represent the social and economic partners.

| 4.5.2. | The EESC believes that the considerable sums the EU has already put into regional programmes through the European Structural and Investment Funds 2014-2020 (16) are sufficient and should be used effectively to implement the strategy though action that is better coordinated and embedded in a unified strategic approach. Additional funding possibilities will be on hand in the 2014-2020 programming period though Community instruments such as HORIZON 2020 (17), COSME (18), CEF (19), EaSI (20), Erasmus+ (21) and LIFE (22). |
| --- | --- |

4.5.2.

The EESC believes that the considerable sums the EU has already put into regional programmes through the European Structural and Investment Funds 2014-2020 (16) are sufficient and should be used effectively to implement the strategy though action that is better coordinated and embedded in a unified strategic approach. Additional funding possibilities will be on hand in the 2014-2020 programming period though Community instruments such as HORIZON 2020 (17), COSME (18), CEF (19), EaSI (20), Erasmus+ (21) and LIFE (22).

5.   Specific comments on the three pillars

| 5.1. | The EESC thinks it is vital for more detailed priorities to be framed for EUSALP’s three pillars if the strategic objectives set out in the consultation document and the specific objectives in point 4 are to be met. |
| --- | --- |

5.1.

The EESC thinks it is vital for more detailed priorities to be framed for EUSALP’s three pillars if the strategic objectives set out in the consultation document and the specific objectives in point 4 are to be met.

| 5.1.1. | The main challenge the Alpine region strategy should help to tackle is harmonising and improving the balance between economic, environmental and social sustainability goals. |
| --- | --- |

5.1.1.

The main challenge the Alpine region strategy should help to tackle is harmonising and improving the balance between economic, environmental and social sustainability goals.

5.2.   First pillar: Development of the Alps — improving the competitiveness, prosperity and cohesion of the Alpine region

| 5.2.1. | The EESC thinks it essential to make sure there is sustainable growth and to foster full employment, innovation, competitiveness and cohesion in the Alpine region, consolidating and diversifying particular economic activities to foster mutual solidarity between upland and urban areas. |
| --- | --- |

5.2.1.

The EESC thinks it essential to make sure there is sustainable growth and to foster full employment, innovation, competitiveness and cohesion in the Alpine region, consolidating and diversifying particular economic activities to foster mutual solidarity between upland and urban areas.

5.2.2.   Priorities

| 5.2.2.1. | Encouraging the innovation and competitiveness of SMEs by improving credit-access systems, building up the capacity of companies to seize opportunities offered by the 2014-2020 EU programmes and the innovation procurement system (especially pre-commercial type procurement (23)). |
| --- | --- |

5.2.2.1.

Encouraging the innovation and competitiveness of SMEs by improving credit-access systems, building up the capacity of companies to seize opportunities offered by the 2014-2020 EU programmes and the innovation procurement system (especially pre-commercial type procurement (23)).

| 5.2.2.2. | Helping to boost developments in the green economy, including through the creation of new businesses, thus capitalising on the environmental characteristics of the Alpine region and the major production and innovation capacities that mark the area out. |
| --- | --- |

5.2.2.2.

Helping to boost developments in the green economy, including through the creation of new businesses, thus capitalising on the environmental characteristics of the Alpine region and the major production and innovation capacities that mark the area out.

| 5.2.2.3. | Promoting Alpine region products through brand awareness (i.e. labels of origin and regional marketing). Making the most of ‘ecosystem products and services’ (24) is a further added value supporting the area’s competitiveness. |
| --- | --- |

5.2.2.3.

Promoting Alpine region products through brand awareness (i.e. labels of origin and regional marketing). Making the most of ‘ecosystem products and services’ (24) is a further added value supporting the area’s competitiveness.

| 5.2.2.4. | Bolstering collaboration between science and technology parks, universities, research centres and SMEs and boosting the capacity of research infrastructure and its ties with cutting-edge institutions of world standing. It would be good when drafting the EUSALP action plan to lay down a cross-cutting priority to support research and innovation work. |
| --- | --- |

5.2.2.4.

Bolstering collaboration between science and technology parks, universities, research centres and SMEs and boosting the capacity of research infrastructure and its ties with cutting-edge institutions of world standing. It would be good when drafting the EUSALP action plan to lay down a cross-cutting priority to support research and innovation work.

| 5.2.2.5. | Framing a joint strategy to transform the Alpine macro-regional space into a world-class, sustainable tourist destination, making the most of its natural, cultural and historical heritage. |
| --- | --- |

5.2.2.5.

Framing a joint strategy to transform the Alpine macro-regional space into a world-class, sustainable tourist destination, making the most of its natural, cultural and historical heritage.

| 5.2.2.6. | Making sure the ‘employment’ priority stays at the heart of the EUSALP, paying particular heed to the young and the long-term unemployed. It is crucial to support the creation of stable and good-quality jobs, which also serves to tackle the problem of seasonal employment that afflicts above all the upland and rural tourist areas of the Alpine region. |
| --- | --- |

5.2.2.6.

Making sure the ‘employment’ priority stays at the heart of the EUSALP, paying particular heed to the young and the long-term unemployed. It is crucial to support the creation of stable and good-quality jobs, which also serves to tackle the problem of seasonal employment that afflicts above all the upland and rural tourist areas of the Alpine region.

| 5.2.2.7. | Supporting initiatives to create a single area for work, to foster labour mobility, to instigate transnational traineeships and work experience, to map out international training and career pathways, and to grant full recognition of academic and professional qualifications. Particular attention needs to be paid to the qualifications of those working in tourism, who suffer more from the seasonal nature of work. |
| --- | --- |

5.2.2.7.

Supporting initiatives to create a single area for work, to foster labour mobility, to instigate transnational traineeships and work experience, to map out international training and career pathways, and to grant full recognition of academic and professional qualifications. Particular attention needs to be paid to the qualifications of those working in tourism, who suffer more from the seasonal nature of work.

| 5.2.2.8. | Encouraging cooperation between the various territorial dimensions that define the Alpine region and reinforcing the role of metropolitan areas and cities as engines for competitiveness and social cohesion. |
| --- | --- |

5.2.2.8.

Encouraging cooperation between the various territorial dimensions that define the Alpine region and reinforcing the role of metropolitan areas and cities as engines for competitiveness and social cohesion.

| 5.2.2.9. | Helping to bring about action to encourage social investment and the adaptation of social protection systems by framing policies compatible with the European Commission communication on social investment for growth and cohesion (25). |
| --- | --- |

5.2.2.9.

Helping to bring about action to encourage social investment and the adaptation of social protection systems by framing policies compatible with the European Commission communication on social investment for growth and cohesion (25).

| 5.2.2.10. | Promoting measures to facilitate the inclusion of people with disabilities and prevent discrimination on grounds of race, ethnicity, age, sexual orientation or gender. |
| --- | --- |

5.2.2.10.

Promoting measures to facilitate the inclusion of people with disabilities and prevent discrimination on grounds of race, ethnicity, age, sexual orientation or gender.

5.3.   Second pillar: Connecting the Alps — Guaranteeing accessibility and connectivity for all the inhabitants of the Alpine region

| 5.3.1. | The EESC endorses the promotion of territorial development based on cooperation between internal and external territorial systems, accessibility of services, sustainable mobility, and upgrading transport modes and communication infrastructure. |
| --- | --- |

5.3.1.

The EESC endorses the promotion of territorial development based on cooperation between internal and external territorial systems, accessibility of services, sustainable mobility, and upgrading transport modes and communication infrastructure.

5.3.2.   Priorities

| 5.3.2.1. | Nurturing the adoption of innovative approaches to provide basic services (education, healthcare, social services and mobility) for upland and rural areas in order to eradicate the digital divide and to roll out broadband throughout the area. |
| --- | --- |

5.3.2.1.

Nurturing the adoption of innovative approaches to provide basic services (education, healthcare, social services and mobility) for upland and rural areas in order to eradicate the digital divide and to roll out broadband throughout the area.

| 5.3.2.2. | Expanding the use of ICT in all areas of general interest (administration, health services, jobseeking services, distance learning, e-commerce for Alpine products, etc.) and ensuring adequate availability of public services to meet the needs of the Alpine region’s various territorial systems, striking the right balance between density and accessibility of services provided. |
| --- | --- |

5.3.2.2.

Expanding the use of ICT in all areas of general interest (administration, health services, jobseeking services, distance learning, e-commerce for Alpine products, etc.) and ensuring adequate availability of public services to meet the needs of the Alpine region’s various territorial systems, striking the right balance between density and accessibility of services provided.

| 5.3.2.3. | Promoting integrated transport systems that facilitate exchanges within various territorial systems and improve management of goods and passenger transport in order to cushion the environmental impact and augment the benefits for local communities. Two of the essential elements needed to help sustainable development of transport in the Alpine region are a shift of goods from road to rail and measures to curb the use of secondary Alpine road corridors (for example, uniform tolls for all Alpine transport corridors). |
| --- | --- |

5.3.2.3.

Promoting integrated transport systems that facilitate exchanges within various territorial systems and improve management of goods and passenger transport in order to cushion the environmental impact and augment the benefits for local communities. Two of the essential elements needed to help sustainable development of transport in the Alpine region are a shift of goods from road to rail and measures to curb the use of secondary Alpine road corridors (for example, uniform tolls for all Alpine transport corridors).

| 5.3.2.4. | Developing plans for interoperability and logistics at macro-regional level and enabling multimodal connection of infrastructure hubs (ports, airports and freight terminals) with the global network and with links to internal waterways. |
| --- | --- |

5.3.2.4.

Developing plans for interoperability and logistics at macro-regional level and enabling multimodal connection of infrastructure hubs (ports, airports and freight terminals) with the global network and with links to internal waterways.

| 5.3.2.5. | Promoting thematic transnational networks on aspects relevant to Alpine development, such as risk management, tourism, sport, forestry, agriculture, energy and technology services. |
| --- | --- |

5.3.2.5.

Promoting thematic transnational networks on aspects relevant to Alpine development, such as risk management, tourism, sport, forestry, agriculture, energy and technology services.

| 5.3.2.6. | Upgrading Alpine governance through more active civil-society involvement, at the same time supporting awareness-raising and making people better informed about the principal issues affecting the Alpine region. |
| --- | --- |

5.3.2.6.

Upgrading Alpine governance through more active civil-society involvement, at the same time supporting awareness-raising and making people better informed about the principal issues affecting the Alpine region.

5.4.   Third pillar: Protecting the Alpine region — Guaranteeing sustainability in the Alpine region

| 5.4.1. | The EESC thinks it essential to strengthen commitment to the sustainable management and protection of the environment and to enhance the area’s territorial assets. |
| --- | --- |

5.4.1.

The EESC thinks it essential to strengthen commitment to the sustainable management and protection of the environment and to enhance the area’s territorial assets.

5.4.2.   Priorities

| 5.4.2.1. | Accommodating action to support the Alpine region’s economic development with climate change commitments, detaching the growth and competitiveness of the territorial systems in EUSALP from consumption of natural resources and raw materials. |
| --- | --- |

5.4.2.1.

Accommodating action to support the Alpine region’s economic development with climate change commitments, detaching the growth and competitiveness of the territorial systems in EUSALP from consumption of natural resources and raw materials.

| 5.4.2.2. | Making Alpine region local communities more aware of the value of ecosystem services and the fair and sustainable management of natural assets. The Alps are one of Europe’s most important sources of water: for this reason it is absolutely crucial to step up work to improve the management of the area’s water reserves and catchment areas. |
| --- | --- |

5.4.2.2.

Making Alpine region local communities more aware of the value of ecosystem services and the fair and sustainable management of natural assets. The Alps are one of Europe’s most important sources of water: for this reason it is absolutely crucial to step up work to improve the management of the area’s water reserves and catchment areas.

| 5.4.2.3. | Endorsing initiatives to further harmonise action to preserve the biodiversity of Alpine region landscapes and action to use them in an environmentally friendly way. |
| --- | --- |

5.4.2.3.

Endorsing initiatives to further harmonise action to preserve the biodiversity of Alpine region landscapes and action to use them in an environmentally friendly way.

| 5.4.2.4. | Developing transnational instruments and procedures for preventing and reducing risks (floods, landslides, avalanches, forest fires, etc.), integrated forest management (both in terms of environmental value and economic resource) and management of problems caused by land use (soil compaction and urban sprawl). |
| --- | --- |

5.4.2.4.

Developing transnational instruments and procedures for preventing and reducing risks (floods, landslides, avalanches, forest fires, etc.), integrated forest management (both in terms of environmental value and economic resource) and management of problems caused by land use (soil compaction and urban sprawl).

| 5.4.2.5. | Supporting conversion to a post-carbon energy system by launching initiatives on energy efficiency, by creating decentralised distribution networks based on renewable resources, and by improving settlement models and public transport based on the concept of energy saving. |
| --- | --- |

5.4.2.5.

Supporting conversion to a post-carbon energy system by launching initiatives on energy efficiency, by creating decentralised distribution networks based on renewable resources, and by improving settlement models and public transport based on the concept of energy saving.

| 5.4.2.6. | Developing and bringing on line integrated mobility systems in order to diminish reliance on cars and subsidising public transport as a service of general interest and, where possible, transport powered by renewable energy. |
| --- | --- |

5.4.2.6.

Developing and bringing on line integrated mobility systems in order to diminish reliance on cars and subsidising public transport as a service of general interest and, where possible, transport powered by renewable energy.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

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(1)  An EU Strategy for the Alpine Region (EUSALP), core document, European Commission.

1

(2)  European Council Conclusions, EUCO 23/1/11 REV 1, 23—24 June 2011.

2

(3)  OJ C 12, 15.1.2015, p. 64.

3

(4)  White Paper on Multilevel Governance (CONST-IV-020, 2009).

4

(5)  European Commission: European code of conduct on partnership in the framework of the European Structural and Investment Funds, C(2013) 9651 final.

5

European code of conduct on partnership in the framework of the European Structural and Investment Funds

(6)  http://ec.europa.eu/regional_policy/en/newsroom/consultations/eusalp/

6

(7)  http://ec.europa.eu/regional_policy/en/newsroom/consultations/eusalp/

7

(8)  http://www.balticsea-region-strategy.eu

8

(9)  http://www.danube-region.eu

9

(10)  http://www.ai-macroregion.eu

10

(11)  EESC opinion Towards an EU Macro-Regional Strategy to develop economic, social and territorial cohesion in the Mediterranean (OJ C 170, 5.6.2014, p. 1).

11

Towards an EU Macro-Regional Strategy to develop economic, social and territorial cohesion in the Mediterranean

(12)  Working Community of Alpine Countries; Alps-Adriatic Alliance; Alps-Mediterranean Euroregion; European Region Tyrol-South Tyrol-Trentino; Alpine Convention; Alpine Space Programme, and cross-border cooperation.

12

(13)  European Council of 19—20 December 2013, p. 26.

13

(14)  Conference held in Grenoble on 18 October 2013 attended by government representatives and presidents from the EUSALP constituent regions.

14

(15)  Report concerning the governance of macro-regional strategies, COM(2014) 284 final.

15

Report concerning the governance of macro-regional strategies

(16)  Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013.

16

(17)  Regulation (EU) No 1290/2013 of the European Parliament and of the Council of 11 December 2013.

17

(18)  Regulation (EU) No 1287/2013 of the European Parliament and of the Council of 11 December 2013.

18

(19)  Regulation (EU) No 1315/2013 of the European Parliament and of the Council of 11 December 2013.

19

(20)  Regulation (EU) No 1296/2013 of the European Parliament and of the Council of 11 December 2013.

20

(21)  Regulation (EU) No 1288/2013 of the European Parliament and of the Council of 11 December 2013.

21

(22)  Regulation (EU) No 1293/2013 of the European Parliament and of the Council of 11 December 2013.

22

(23)  Article 131 of Financial Regulation (EU, Euratom) No 966/2012.

23

(24)  Goods produced by the ecosystem include food, water, fuels and timber, while services include water supply and air purification, natural waste recycling, soil formation, pollination and many other natural regulatory mechanisms.

24

(25)  COM(2013) 83 final.

25

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| 14.7.2015 | EN | Official Journal of the European Union | C 230/17 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/17

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Opinion of the European Economic and Social Committee on ‘Airport capacity in the EU’

(exploratory opinion requested by the European Commission)

(2015/C 230/03)

| Rapporteur: | Mr KRAWCZYK |
| --- | --- |

Rapporteur:

Mr KRAWCZYK

On 4 September 2014, the European Commission decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on

Airport capacity in the EU (exploratory opinion).

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for preparing the Committee’s work on the subject, adopted its opinion on 11 November 2014.

At its 503rd plenary session, held on 10 and 11 December 2014 (meeting of 10 December), the European Economic and Social Committee adopted the following opinion by 117 votes in favour, with 1 abstention.

1.   Conclusions and recommendations

| 1.1. | To address capacity shortfall the EU’s existing airport assets need to be used more efficiently. More intermodality, better connectivity, more efficient use of secondary hubs and small airports, bigger aircraft and optimisation of processes could be appropriate solutions. So too would adoption of the Airport Package, and implementation of the Single European Sky (SES) and SESAR. Airport capacity must become a full-fledged pillar of the SES. |
| --- | --- |

1.1.

To address capacity shortfall the EU’s existing airport assets need to be used more efficiently. More intermodality, better connectivity, more efficient use of secondary hubs and small airports, bigger aircraft and optimisation of processes could be appropriate solutions. So too would adoption of the Airport Package, and implementation of the Single European Sky (SES) and SESAR. Airport capacity must become a full-fledged pillar of the SES.

| 1.2. | In the long-term, airport capacity will have to be built in the form of infrastructure such as terminals and runways. The main aim of airport expansion must be to improve connectivity on a sustainable economic basis. EU hubs must be provided with effective possibilities to meet growing demand, which includes the shortening of planning processes in order to be able to respond quickly to any demand that arises. |
| --- | --- |

1.2.

In the long-term, airport capacity will have to be built in the form of infrastructure such as terminals and runways. The main aim of airport expansion must be to improve connectivity on a sustainable economic basis. EU hubs must be provided with effective possibilities to meet growing demand, which includes the shortening of planning processes in order to be able to respond quickly to any demand that arises.

| 1.3. | Airport expansions — where justified — should form part of a balanced approach. First, airports have a positive economic impact on the neighbourhood. It is clear to the EESC that this positive impact has to be safeguarded. Second, environmental issues have to be assessed in a transparent manner. Third, airport expansions have a public dimension. This requires a public dialogue whose interlocutors include, for example, air traffic control, airport authorities, airlines, regional parties, local residents, government, etc. |
| --- | --- |

1.3.

Airport expansions — where justified — should form part of a balanced approach. First, airports have a positive economic impact on the neighbourhood. It is clear to the EESC that this positive impact has to be safeguarded. Second, environmental issues have to be assessed in a transparent manner. Third, airport expansions have a public dimension. This requires a public dialogue whose interlocutors include, for example, air traffic control, airport authorities, airlines, regional parties, local residents, government, etc.

| 1.4. | The EESC is convinced that it is critically important that Member States take immediate measures concerning land-use planning and management. Otherwise airport development will be hindered by many unforeseen and unnecessary obstacles and also, in some cases, existing airport capacity will be threatened. |
| --- | --- |

1.4.

The EESC is convinced that it is critically important that Member States take immediate measures concerning land-use planning and management. Otherwise airport development will be hindered by many unforeseen and unnecessary obstacles and also, in some cases, existing airport capacity will be threatened.

| 1.5. | Existing regional airports should only be developed where there is clear demand for more traffic. Member State governments should identify capacity challenges and define strategies to meet them. Except in the case of public obligations the EU should stop financing development of new regional green field capacity, without prejudice to the rules of Article 107 of the Treaty on the Functioning of the European Union. |
| --- | --- |

1.5.

Existing regional airports should only be developed where there is clear demand for more traffic. Member State governments should identify capacity challenges and define strategies to meet them. Except in the case of public obligations the EU should stop financing development of new regional green field capacity, without prejudice to the rules of Article 107 of the Treaty on the Functioning of the European Union.

| 1.6. | The EESC considers the new EU guidelines on state aid to airports and airlines to be very valuable, because they provide legal certainty. The continued existence of non-sustainable regional airports will finally be verified based on common criteria. |
| --- | --- |

1.6.

The EESC considers the new EU guidelines on state aid to airports and airlines to be very valuable, because they provide legal certainty. The continued existence of non-sustainable regional airports will finally be verified based on common criteria.

| 1.7. | If capacity crunch is to be addressed with confidence by airports, consistency and clarity of regulatory treatment is essential to providing the necessary incentives to ensure long-term investment in infrastructure. |
| --- | --- |

1.7.

If capacity crunch is to be addressed with confidence by airports, consistency and clarity of regulatory treatment is essential to providing the necessary incentives to ensure long-term investment in infrastructure.

| 1.8. | Airport capacity also has a political dimension. The EESC strongly believes that the EU, together with Member States and stakeholders, including the social partners, has to make a general strategic decision on which airports will be important for the system and should be brought forward in the coming years. To maintain the competitiveness of EU aviation in globalised markets a European integrated aviation strategy, taking into account economic, environmental and social aspects as well as jobs creation, is urgently needed. |
| --- | --- |

1.8.

Airport capacity also has a political dimension. The EESC strongly believes that the EU, together with Member States and stakeholders, including the social partners, has to make a general strategic decision on which airports will be important for the system and should be brought forward in the coming years. To maintain the competitiveness of EU aviation in globalised markets a European integrated aviation strategy, taking into account economic, environmental and social aspects as well as jobs creation, is urgently needed.

| 1.9. | There needs to be an assessment of airport infrastructure projects co-financed in recent years by the EU. The EESC welcomes the European Court of Auditors’ commitment to carrying out this important work. The conclusions and recommendations of this work should be the subject of a public debate. |
| --- | --- |

1.9.

There needs to be an assessment of airport infrastructure projects co-financed in recent years by the EU. The EESC welcomes the European Court of Auditors’ commitment to carrying out this important work. The conclusions and recommendations of this work should be the subject of a public debate.

| 1.10. | The EESC believes that the European Commission (EC) should simplify and streamline the structures that manage EU aviation and EU airports in particular. The Commission needs full and reliable data and information on EU airports’ operations. These data are currently not available. The EESC calls upon airport management and public authorities to provide them. |
| --- | --- |

1.10.

The EESC believes that the European Commission (EC) should simplify and streamline the structures that manage EU aviation and EU airports in particular. The Commission needs full and reliable data and information on EU airports’ operations. These data are currently not available. The EESC calls upon airport management and public authorities to provide them.

2.   Introduction

| 2.1. | Airports in the EU are valuable assets, yet several major airports will suffer from increasing congestion in the coming years while many others will remain underused. It could be argued that there is enough capacity across the EU, but the question is whether or not it is in the right place. |
| --- | --- |

2.1.

Airports in the EU are valuable assets, yet several major airports will suffer from increasing congestion in the coming years while many others will remain underused. It could be argued that there is enough capacity across the EU, but the question is whether or not it is in the right place.

| 2.2. | In recent years, public discussion on airport capacity has been conducted mainly in two contexts: the loss of central airport hub capacity to non-EU/non-European competitors such as Turkey and the Gulf countries; and the ‘Ryanair Syndrome’ of low-cost airlines rapidly boosting traffic at smaller regional airports but not being stable users in the long run. However, the problem runs much deeper than this. |
| --- | --- |

2.2.

In recent years, public discussion on airport capacity has been conducted mainly in two contexts: the loss of central airport hub capacity to non-EU/non-European competitors such as Turkey and the Gulf countries; and the ‘Ryanair Syndrome’ of low-cost airlines rapidly boosting traffic at smaller regional airports but not being stable users in the long run. However, the problem runs much deeper than this.

| 2.3. | In 2007 the EC published its Communication on ‘An action plan for airport capacity, efficiency and safety in Europe’ in which it identified a growing gap between capacity and demand at a number of EU hubs (1) and proposed several measures aimed at better use of existing capacity. In 2007 the European Parliament (EP) adopted an own-initiative report in response to the Commission’s Action Plan, in which it welcomed the EC’s Communication and addressed the importance of the airport capacity crunch. |
| --- | --- |

2.3.

In 2007 the EC published its Communication on ‘An action plan for airport capacity, efficiency and safety in Europe’ in which it identified a growing gap between capacity and demand at a number of EU hubs (1) and proposed several measures aimed at better use of existing capacity. In 2007 the European Parliament (EP) adopted an own-initiative report in response to the Commission’s Action Plan, in which it welcomed the EC’s Communication and addressed the importance of the airport capacity crunch.

| 2.4. | In 2011, the EC published another Communication (2) on capacity as part of the so-called Better Airport Package, which identified capacity and quality as the key challenges for European airports. |
| --- | --- |

2.4.

In 2011, the EC published another Communication (2) on capacity as part of the so-called Better Airport Package, which identified capacity and quality as the key challenges for European airports.

| 2.5. | Eurocontrol launched and re-launched its study ‘Challenges of Growth’ in 2004, 2008 and 2013, predicting a capacity crunch in the coming 20 years. |
| --- | --- |

2.5.

Eurocontrol launched and re-launched its study ‘Challenges of Growth’ in 2004, 2008 and 2013, predicting a capacity crunch in the coming 20 years.

| 2.6. | Such a level of activity proves the urgency of the capacity issue. Significant results have already been achieved by the aviation industry. Capacity and efficiency optimisation have taken place in all fields of action. Improvements include:






  — | better and more intermodal connections to and from some airports; |
| --- | --- | --- |

2.6.

Such a level of activity proves the urgency of the capacity issue. Significant results have already been achieved by the aviation industry. Capacity and efficiency optimisation have taken place in all fields of action. Improvements include:

—

better and more intermodal connections to and from some airports;

| — | reorganisation of internal processes across the whole aviation system, including consolidation processes; and |
| --- | --- |

—

reorganisation of internal processes across the whole aviation system, including consolidation processes; and

| — | implementation of Airport Collaborative Decision Making (A-CDM) at an increasing number of airports. |
| --- | --- |

—

implementation of Airport Collaborative Decision Making (A-CDM) at an increasing number of airports.

| 2.6.1. | Since 2004, the Single European Sky (SES) initiative has worked towards better use of the European airspace, mitigating the negative consequences of fragmentation of the European airspace. Airports involved in the SES also contribute to SES objectives within the Single European Sky Air Traffic Management Research (SESAR) programme. Without capacity on the ground, the success of SES is in jeopardy. |
| --- | --- |

2.6.1.

Since 2004, the Single European Sky (SES) initiative has worked towards better use of the European airspace, mitigating the negative consequences of fragmentation of the European airspace. Airports involved in the SES also contribute to SES objectives within the Single European Sky Air Traffic Management Research (SESAR) programme. Without capacity on the ground, the success of SES is in jeopardy.

| 2.7. | The Commission is currently working on detailed ideas for future airport strategy with stakeholders in the European Observatory on Airport Capacity. The mission of this Observatory is threefold:






  a. | to assist the Commission in addressing the airport capacity and quality challenge; |
| --- | --- | --- |

2.7.

The Commission is currently working on detailed ideas for future airport strategy with stakeholders in the European Observatory on Airport Capacity. The mission of this Observatory is threefold:

a.

to assist the Commission in addressing the airport capacity and quality challenge;

| b. | to promote sharing of experience and best practice within and outside Europe; and |
| --- | --- |

b.

to promote sharing of experience and best practice within and outside Europe; and

| c. | to establish a better view of the problem, its impact as well as possible solutions — including policy solutions. |
| --- | --- |

c.

to establish a better view of the problem, its impact as well as possible solutions — including policy solutions.

The EESC welcomes the creation of the Observatory and encourages the further continuation of its already-demonstrated quality work.

3.   Development of European airports over the last decade

| 3.1. | There are more than 450 airports in Europe, and yet European airports are still facing an impending capacity crunch. |
| --- | --- |

3.1.

There are more than 450 airports in Europe, and yet European airports are still facing an impending capacity crunch.

| 3.2. | Airports Council International Europe (ACI) groups airports as follows: |
| --- | --- |

3.2.

Airports Council International Europe (ACI) groups airports as follows:

| ACI airport group | Airport size (million passengers per annum) | Number of European airports |
| --- | --- | --- |
| 1 | > 25 | 14 |
| 2 | 10-25 | 23 |
| 3 | 5-10 | 34 |
| 4 | < 5 | 390 |

ACI airport group

Airport size (million passengers per annum)

Number of European airports

1

> 25

14

2

10-25

23

3

5-10

34

4

< 5

390

A large share of traffic is handled by a relatively small number of airports. The explanation is found in the different airport models. Group 3 and 4 airports are rather small, providing point-to-point connections as well as feeding traffic into the bigger airports and guaranteeing public services. This means that many big airports are reliant on small airports.

A hub and spokes airport is ‘a single airport at which one or several airlines offer an integrated network of connecting services to a wide range of destinations at a high frequency’ (in: AEA, European Airports, Brussels, 1995).

| 3.2.1. | In a point-to-point system, passengers travel directly from origin to destination without changing. |
| --- | --- |

3.2.1.

In a point-to-point system, passengers travel directly from origin to destination without changing.

| 3.2.2. | Both systems are complementary; they merely have different objectives: the hub and spokes system is aimed at achieving maximum connectivity, whereas the point-to-point system is meant to achieve the highest possible degree of mobility and flexibility. |
| --- | --- |

3.2.2.

Both systems are complementary; they merely have different objectives: the hub and spokes system is aimed at achieving maximum connectivity, whereas the point-to-point system is meant to achieve the highest possible degree of mobility and flexibility.

| 3.3. | The EU has financed an extraordinary number of airport-related infrastructure projects. The EESC feels that there is a lack of publicly available information about these investments and about their efficiency in providing additional connectivity and efficiency for the public. |
| --- | --- |

3.3.

The EU has financed an extraordinary number of airport-related infrastructure projects. The EESC feels that there is a lack of publicly available information about these investments and about their efficiency in providing additional connectivity and efficiency for the public.

| 3.4. | The EESC considers the newly introduced EU guidelines (3) on state aid to airports and airlines to be very valuable, because they provide legal certainty. Furthermore, the guidelines differentiate between airports that are needed, for instance, for public services, and airports that are redundant, i.e. airports that are neither able to cover their operating costs nor needed to safeguard public services. |
| --- | --- |

3.4.

The EESC considers the newly introduced EU guidelines (3) on state aid to airports and airlines to be very valuable, because they provide legal certainty. Furthermore, the guidelines differentiate between airports that are needed, for instance, for public services, and airports that are redundant, i.e. airports that are neither able to cover their operating costs nor needed to safeguard public services.

4.   Future growth expectations

| 4.1. | The aviation markets of the future will be the Asia-Pacific region, Latin America, Africa and the Middle East. The average annual growth of passenger flows in these regions will amount to between 6 % and 7 % until 2032. The average growth rate in Europe and North America will be around 3 %. |
| --- | --- |

4.1.

The aviation markets of the future will be the Asia-Pacific region, Latin America, Africa and the Middle East. The average annual growth of passenger flows in these regions will amount to between 6 % and 7 % until 2032. The average growth rate in Europe and North America will be around 3 %.

Furthermore, an immense amount of capacity is being built outside the EU. China has built nearly 80 airports. Turkey, Dubai and Singapore are currently building gigantic platforms that will be able to accommodate up to 160 million passengers — considerably more than the biggest airport in the world today, which is Atlanta at 96 million passengers.

| 4.2. | Eurocontrol, in its latest Challenges of Growth report of 2013, has identified a capacity squeeze within the next 20 years. In the most likely scenario, 1,9 million flights will not be operated due to capacity constraints in 2035. This is equivalent to 12 % of demand. 20 airports in Europe will be highly congested for more than six hours a day, whereas presently this is true of only three. |
| --- | --- |

4.2.

Eurocontrol, in its latest Challenges of Growth report of 2013, has identified a capacity squeeze within the next 20 years. In the most likely scenario, 1,9 million flights will not be operated due to capacity constraints in 2035. This is equivalent to 12 % of demand. 20 airports in Europe will be highly congested for more than six hours a day, whereas presently this is true of only three.

| 4.2.1. | The capacity growth that does take place will not be evenly distributed across European airports. The biggest growth will be in Eastern Europe, while intra-European traffic and the traffic share of North-Western Europe will decrease. The EESC notes this development and believes that airports in Europe must rise to these challenges. |
| --- | --- |

4.2.1.

The capacity growth that does take place will not be evenly distributed across European airports. The biggest growth will be in Eastern Europe, while intra-European traffic and the traffic share of North-Western Europe will decrease. The EESC notes this development and believes that airports in Europe must rise to these challenges.

5.   Challenges of growth

| 5.1. | The EESC believes that it is essential to enhance European competitiveness and appeal as a destination for investment in the aviation sector. Ground capacity is critically important here. |
| --- | --- |

5.1.

The EESC believes that it is essential to enhance European competitiveness and appeal as a destination for investment in the aviation sector. Ground capacity is critically important here.

| 5.2. | The EESC is convinced that implementing the SES is long overdue and needed to meet the capacity crunch challenge. Just minimising delays would have an immediate effect on the capacity of the system and the airports within it. The EESC agrees with ACI that ground capacity ought to be a full-fledged pillar of the SES and that objectives for ground capacity should be in line with those of the SES. |
| --- | --- |

5.2.

The EESC is convinced that implementing the SES is long overdue and needed to meet the capacity crunch challenge. Just minimising delays would have an immediate effect on the capacity of the system and the airports within it. The EESC agrees with ACI that ground capacity ought to be a full-fledged pillar of the SES and that objectives for ground capacity should be in line with those of the SES.

| 5.3. | The Challenges of Growth study by Eurocontrol proposes six measures, which, in combination, could reduce the amount of unmet demand in 2035 by 42 %. This amounts to 8 00  000 additional flights, or 50 million passengers, which could then be operated. These solutions include:






  — | bigger aeroplanes; |
| --- | --- | --- |

5.3.

The Challenges of Growth study by Eurocontrol proposes six measures, which, in combination, could reduce the amount of unmet demand in 2035 by 42 %. This amounts to 8 00  000 additional flights, or 50 million passengers, which could then be operated. These solutions include:

—

bigger aeroplanes;

| — | additional high-speed trains; |
| --- | --- |

—

additional high-speed trains;

| — | local alternative solutions: airlines should grow where capacity is available; |
| --- | --- |

—

local alternative solutions: airlines should grow where capacity is available;

| — | better use of smaller airports; |
| --- | --- |

—

better use of smaller airports;

| — | SESAR implementation; and |
| --- | --- |

—

SESAR implementation; and

| — | consolidation of flight plans. |
| --- | --- |

—

consolidation of flight plans.

| 5.3.1. | The EESC understands that these measures are to be implemented to reduce unmet demand, but feels that they may not be sufficient to meet all future demand. Furthermore, not all of these measures are applicable to every airport in the EU. |
| --- | --- |

5.3.1.

The EESC understands that these measures are to be implemented to reduce unmet demand, but feels that they may not be sufficient to meet all future demand. Furthermore, not all of these measures are applicable to every airport in the EU.

| 5.4. | The EESC also believes that the adoption of the Airport Package, as proposed by the EC, would also help to bring about better use of existing airport assets. The EESC calls for ambitious results from the ongoing work in Parliament and Council in line with what it had proposed in its Airport Package (4). |
| --- | --- |

5.4.

The EESC also believes that the adoption of the Airport Package, as proposed by the EC, would also help to bring about better use of existing airport assets. The EESC calls for ambitious results from the ongoing work in Parliament and Council in line with what it had proposed in its Airport Package (4).

| 5.5. | Ultimately, it would appear that the solution to the problem of insufficient airport capacity includes construction of new capacity alongside optimisation of existing capacity. This is difficult since many airports are no longer in a position to invest in further capacity. Eurocontrol, in the 2013 edition of its ‘Challenges of Growth’ report, states that ‘lack of revenue, difficulty in obtaining finance, and growing resistance to transport infrastructure projects’ have made some airports reconsider their expansion plans. |
| --- | --- |

5.5.

Ultimately, it would appear that the solution to the problem of insufficient airport capacity includes construction of new capacity alongside optimisation of existing capacity. This is difficult since many airports are no longer in a position to invest in further capacity. Eurocontrol, in the 2013 edition of its ‘Challenges of Growth’ report, states that ‘lack of revenue, difficulty in obtaining finance, and growing resistance to transport infrastructure projects’ have made some airports reconsider their expansion plans.

| 5.6. | The EESC strongly recommends carrying out an assessment of the merit of EU investments in airport related infrastructure thus far. The EESC welcomes the EU Court of Auditors’ announcement that it is working on this issue, and recommends using a broad control sample. |
| --- | --- |

5.6.

The EESC strongly recommends carrying out an assessment of the merit of EU investments in airport related infrastructure thus far. The EESC welcomes the EU Court of Auditors’ announcement that it is working on this issue, and recommends using a broad control sample.

6.   Obstacles to the expansion of airport infrastructure

| 6.1. | Airports face several challenges when they plan to enlarge their infrastructure. These challenges or obstacles can be grouped as follows:






  — | financial and economic challenges; |
| --- | --- | --- |

6.1.

Airports face several challenges when they plan to enlarge their infrastructure. These challenges or obstacles can be grouped as follows:

—

financial and economic challenges;

| — | regulatory requirements, including environmental factors; |
| --- | --- |

—

regulatory requirements, including environmental factors;

| — | public challenges, e.g. increasing resistance from the population; and |
| --- | --- |

—

public challenges, e.g. increasing resistance from the population; and

| — | political considerations. |
| --- | --- |

—

political considerations.

| 6.1.1. | Airports tend to be very cautious about investing because of the recent economic crisis. On the one hand, revenues have tended to go down. On the other hand, airports face increasing security and safety costs (operating costs). Recent improved state aid decisions and the new state aid guidelines make it more challenging for smaller airports to remain viable. Securing financing for infrastructure projects has become a serious challenge for airports. |
| --- | --- |

6.1.1.

Airports tend to be very cautious about investing because of the recent economic crisis. On the one hand, revenues have tended to go down. On the other hand, airports face increasing security and safety costs (operating costs). Recent improved state aid decisions and the new state aid guidelines make it more challenging for smaller airports to remain viable. Securing financing for infrastructure projects has become a serious challenge for airports.

| 6.1.2. | On a regulatory basis, airports have to fulfil a multitude of requirements. Administrative procedures are very complex, especially when it comes to security and environmental issues. The EESC by no means denies the importance of environmental requirements. Nevertheless, there has to be a balanced approach to these issues. The European Commission has already made good progress, for example with Regulation (EU) No 598/2014 on the establishment of rules and procedures with regard to the introduction of noise-related operating restrictions at Union airports, as part of a balanced approach. The European aviation sector is an industry sector well placed for ‘green growth’. The EESC warns the European Commission in particular against implementing non-integrated solutions to tackle environmental issues. The Committee highlights the need for integrated and global solutions. With this in mind, a useful first step could be for the European Commission to commission a large-scale project aimed at mapping out and documenting existing environmental restrictions impacting the capacity of European airports. |
| --- | --- |

6.1.2.

On a regulatory basis, airports have to fulfil a multitude of requirements. Administrative procedures are very complex, especially when it comes to security and environmental issues. The EESC by no means denies the importance of environmental requirements. Nevertheless, there has to be a balanced approach to these issues. The European Commission has already made good progress, for example with Regulation (EU) No 598/2014 on the establishment of rules and procedures with regard to the introduction of noise-related operating restrictions at Union airports, as part of a balanced approach. The European aviation sector is an industry sector well placed for ‘green growth’. The EESC warns the European Commission in particular against implementing non-integrated solutions to tackle environmental issues. The Committee highlights the need for integrated and global solutions. With this in mind, a useful first step could be for the European Commission to commission a large-scale project aimed at mapping out and documenting existing environmental restrictions impacting the capacity of European airports.

| 6.1.3. | A rather new problem lies in growing public challenges in the form of increasing resistance from the population to infrastructure projects. Major EU hub airport extension projects have been put on hold, some of them for more than a decade — examples include a possible third Paris airport; additional runways at Frankfurt and Munich airports; and the UK/London discussion on how to best extend capacity in a multimodal metropolis environment. |
| --- | --- |

6.1.3.

A rather new problem lies in growing public challenges in the form of increasing resistance from the population to infrastructure projects. Major EU hub airport extension projects have been put on hold, some of them for more than a decade — examples include a possible third Paris airport; additional runways at Frankfurt and Munich airports; and the UK/London discussion on how to best extend capacity in a multimodal metropolis environment.

| 6.1.4. | Public resistance as a result of noise pollution, amongst other things, is growing. On the other hand, airports and airlines spend huge sums on noise mitigation measures. For example, Vienna airport has launched a noise protection scheme covering 12  000 households. The estimated total cost will amount to around EUR 51 million, of which EUR 37 million will come directly from Flughafen Wien AG. The budget of Liège airport and Charleroi airport for repurchase or noise insulation of 20  816 households is EUR 444 million. London Heathrow spent EUR 37 million on noise mitigation measures in the period 2007-11. |
| --- | --- |

6.1.4.

Public resistance as a result of noise pollution, amongst other things, is growing. On the other hand, airports and airlines spend huge sums on noise mitigation measures. For example, Vienna airport has launched a noise protection scheme covering 12  000 households. The estimated total cost will amount to around EUR 51 million, of which EUR 37 million will come directly from Flughafen Wien AG. The budget of Liège airport and Charleroi airport for repurchase or noise insulation of 20  816 households is EUR 444 million. London Heathrow spent EUR 37 million on noise mitigation measures in the period 2007-11.

| 6.1.5. | Member State governments should identify capacity challenges and define strategies to meet them. In this context, there is a clear need for strong leadership at European level to coordinate these national strategies on capacity and to provide financial guidance and support as appropriate. There should be very strict criteria for EU financing of green field airport assets. The EU should restrict financing of such projects to those that are financially viable or meet public obligation criteria. |
| --- | --- |

6.1.5.

Member State governments should identify capacity challenges and define strategies to meet them. In this context, there is a clear need for strong leadership at European level to coordinate these national strategies on capacity and to provide financial guidance and support as appropriate. There should be very strict criteria for EU financing of green field airport assets. The EU should restrict financing of such projects to those that are financially viable or meet public obligation criteria.

| 6.1.6. | The EESC would like to point out that the discussion on capacity also has a political dimension. The EESC strongly believes that the EU, together with the Member States and stakeholders including the social partners, has to make a general strategic decision on which airports will be important for the system and should be brought forward in the coming years. The balance of the EU’s priorities concerning the hub-system and the point-to-point-system should be assessed and reviewed if necessary. An integrated European policy is needed more than ever, taking into account the economic, environmental and social aspects as well as job creation. |
| --- | --- |

6.1.6.

The EESC would like to point out that the discussion on capacity also has a political dimension. The EESC strongly believes that the EU, together with the Member States and stakeholders including the social partners, has to make a general strategic decision on which airports will be important for the system and should be brought forward in the coming years. The balance of the EU’s priorities concerning the hub-system and the point-to-point-system should be assessed and reviewed if necessary. An integrated European policy is needed more than ever, taking into account the economic, environmental and social aspects as well as job creation.

| 6.1.7. | In addition in the Commission, several DGs are working on related matters: MOVE, EMPL, COMP, JUST, etc. Their remit depends on the precise policy area, and there are many links to different areas such as international relations, state aid, SES and multimodality. This has not proven efficient while seeking to take an integrated, whole-value-chain approach to EU aviation, which is now imperative. It is urgent that the Commission’s aviation, and in particular its airport-related, activities be much better integrated. |
| --- | --- |

6.1.7.

In addition in the Commission, several DGs are working on related matters: MOVE, EMPL, COMP, JUST, etc. Their remit depends on the precise policy area, and there are many links to different areas such as international relations, state aid, SES and multimodality. This has not proven efficient while seeking to take an integrated, whole-value-chain approach to EU aviation, which is now imperative. It is urgent that the Commission’s aviation, and in particular its airport-related, activities be much better integrated.

| 6.2. | Like any production process, the physical capacity of an airport is subject to constraints, i.e. factors reducing actual capacity. In the case of runway capacity they include:






  — | operations (aircraft mix); |
| --- | --- | --- |

6.2.

Like any production process, the physical capacity of an airport is subject to constraints, i.e. factors reducing actual capacity. In the case of runway capacity they include:

—

operations (aircraft mix);

| — | weather conditions; and |
| --- | --- |

—

weather conditions; and

| — | facilities. |
| --- | --- |

—

facilities.

| 6.2.1. | In addition to this, all drivers of airport capacity are usually impacted by operating procedures and regulations, for instance special approach and departure procedures or airspace design requirements in response to noise considerations. Actual airport capacity is usually much lower than physical airport capacity. The ‘balanced approach’ of the International Civil Aviation Organization (ICAO) provides the most effective method to address noise at and around airports in an environmentally sensitive and economically responsible way. |
| --- | --- |

6.2.1.

In addition to this, all drivers of airport capacity are usually impacted by operating procedures and regulations, for instance special approach and departure procedures or airspace design requirements in response to noise considerations. Actual airport capacity is usually much lower than physical airport capacity. The ‘balanced approach’ of the International Civil Aviation Organization (ICAO) provides the most effective method to address noise at and around airports in an environmentally sensitive and economically responsible way.

| 6.2.2. | The EC tends to take only runway capacity into account in its work on airport capacity. As shown above this approach is incomplete, and the EESC encourages the European Commission to take other decisive airport capacity drivers, such as airspace capacity at surrounding airports, into account in its work on airport capacity as well. The interaction between airports and airspace (or air navigation service providers) is critical in addressing the airport capacity crunch. However, the way this interaction is managed differs considerably across the European Union and even within some Member States. |
| --- | --- |

6.2.2.

The EC tends to take only runway capacity into account in its work on airport capacity. As shown above this approach is incomplete, and the EESC encourages the European Commission to take other decisive airport capacity drivers, such as airspace capacity at surrounding airports, into account in its work on airport capacity as well. The interaction between airports and airspace (or air navigation service providers) is critical in addressing the airport capacity crunch. However, the way this interaction is managed differs considerably across the European Union and even within some Member States.

| 6.2.3. | It is critically important that Member States take measures concerning land-use planning and management. This is often in the hands of local or regional authorities who should appreciate the role of airports in national and European networks, especially in central hub areas where pressure for the usage of land for other purposes is great. The EU needs to agree on common principles in this regard and to provide a consistent legal and planning framework to optimise decisions on new capacity. |
| --- | --- |

6.2.3.

It is critically important that Member States take measures concerning land-use planning and management. This is often in the hands of local or regional authorities who should appreciate the role of airports in national and European networks, especially in central hub areas where pressure for the usage of land for other purposes is great. The EU needs to agree on common principles in this regard and to provide a consistent legal and planning framework to optimise decisions on new capacity.

| 6.3. | A consolidated common market in EU civil aviation needs to emerge. However, the EESC warns that hubs should not be favoured at the expense of regional airports. Both are complementary and should remain integral parts of what are referred to in TEN-T policy as the core and the comprehensive network. This sometimes results in congestion and growth going hand in hand. |
| --- | --- |

6.3.

A consolidated common market in EU civil aviation needs to emerge. However, the EESC warns that hubs should not be favoured at the expense of regional airports. Both are complementary and should remain integral parts of what are referred to in TEN-T policy as the core and the comprehensive network. This sometimes results in congestion and growth going hand in hand.

| 6.4. | The EESC encourages the Commission to look at the European airspace capacity issue both from the perspective of international competitiveness — which is, of course, key — and in terms of the smooth functioning of the EU’s internal market. Better and more rational use of regional capacity could help to alleviate pressure on busy hubs. The ongoing test of remote air traffic control towers (e.g. in Sweden) are in this context interesting as a tool to lower operating cost at such regional airports while maintaining the highest safety levels. |
| --- | --- |

6.4.

The EESC encourages the Commission to look at the European airspace capacity issue both from the perspective of international competitiveness — which is, of course, key — and in terms of the smooth functioning of the EU’s internal market. Better and more rational use of regional capacity could help to alleviate pressure on busy hubs. The ongoing test of remote air traffic control towers (e.g. in Sweden) are in this context interesting as a tool to lower operating cost at such regional airports while maintaining the highest safety levels.

| 6.5. | The Commission’s role is crucial. However, it has not been fully sketched out in detail: in order to do more than monitoring and chivvying all players to be more efficient, the Commission would first of all need full and reliable data and information on EU airports’ operations. These data are currently not available, and nor are there criteria for what an ‘efficient airport’ should be, or official figures on EU-level public funding for airports. |
| --- | --- |

6.5.

The Commission’s role is crucial. However, it has not been fully sketched out in detail: in order to do more than monitoring and chivvying all players to be more efficient, the Commission would first of all need full and reliable data and information on EU airports’ operations. These data are currently not available, and nor are there criteria for what an ‘efficient airport’ should be, or official figures on EU-level public funding for airports.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

---

(1)  COM(2006) 819 final, p. 2.

1

(2)  COM(2011) 823 final.

2

(3)  OJ C 451, 16.12.2014, p. 123.

3

(4)  OJ C 181, 21.6.2012, p. 173.

4

---

| 14.7.2015 | EN | Official Journal of the European Union | C 230/24 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/24

---

Opinion of the European Economic and Social Committee on ‘Completing EMU — The role of taxation policy’

(Own-initiative opinion)

(2015/C 230/04)

| Rapporteur: | Carlos TRIAS PINTÓ |
| --- | --- |
| Co-rapporteur: | Petru Sorin DANDEA |

Rapporteur:

Carlos TRIAS PINTÓ

Co-rapporteur:

Petru Sorin DANDEA

On 27 February 2014 the European Economic and Social Committee, acting under Rule 29(2) of its Rules of Procedure, decided to draw up an own-initiative opinion on

Completing EMU — The role of taxation policy.

The Section for Economic and Monetary Union and Economic and Social Cohesion, which was responsible for preparing the Committee’s work on the subject, adopted its opinion on 18 November 2014.

At its 503rd plenary session, held on 10 and 11 December 2014 (meeting of 10 December 2014), the European Economic and Social Committee adopted the following opinion by 164 votes to 53 with 11 abstentions.

1.   Conclusions and recommendations

| 1.1. | The slower recovery in Europe than in the rest of the world is symptomatic of a degree of dysfunction that a deeper economic and monetary union must address. This opinion supports the process of deepening EMU, particularly in the euro area, from the aspect of the role of taxation. Progress in coordinating direct taxation has been and will continue to be hard to achieve because it remains in the competence of Member States and is rooted in the fabric of how each Member State has chosen over the centuries to finance its perceived necessary government expenditures. Any change to taxation must result in a more globally competitive and sustainable tax regime. |
| --- | --- |

1.1.

The slower recovery in Europe than in the rest of the world is symptomatic of a degree of dysfunction that a deeper economic and monetary union must address. This opinion supports the process of deepening EMU, particularly in the euro area, from the aspect of the role of taxation. Progress in coordinating direct taxation has been and will continue to be hard to achieve because it remains in the competence of Member States and is rooted in the fabric of how each Member State has chosen over the centuries to finance its perceived necessary government expenditures. Any change to taxation must result in a more globally competitive and sustainable tax regime.

| 1.2. | In order to allow the proper functioning of Economic and Monetary Union, the new legislature must lay the foundations for and move gradually towards a fiscal union capable of overcoming the huge diversity of national rules which hinder real integration and the creation of a single market and furthermore towards an enhanced common budget for the euro area. |
| --- | --- |

1.2.

In order to allow the proper functioning of Economic and Monetary Union, the new legislature must lay the foundations for and move gradually towards a fiscal union capable of overcoming the huge diversity of national rules which hinder real integration and the creation of a single market and furthermore towards an enhanced common budget for the euro area.

| 1.3. | Together with the ECB monetary pillar, in the medium term there must effectively also be a ‘common budget pillar’ ensuring macroeconomic stabilisation within the EMU, particularly in the event of ‘asymmetric shocks’. |
| --- | --- |

1.3.

Together with the ECB monetary pillar, in the medium term there must effectively also be a ‘common budget pillar’ ensuring macroeconomic stabilisation within the EMU, particularly in the event of ‘asymmetric shocks’.

| 1.4. | Correcting the shortcomings and loopholes in taxation policy entails taking more ambitious steps within the euro area with a view to reducing and standardising the range of different taxes, extending tax bases, aligning tax rates more closely, and strengthening cooperation and information exchange mechanisms in order to combat fraud and evasion. |
| --- | --- |

1.4.

Correcting the shortcomings and loopholes in taxation policy entails taking more ambitious steps within the euro area with a view to reducing and standardising the range of different taxes, extending tax bases, aligning tax rates more closely, and strengthening cooperation and information exchange mechanisms in order to combat fraud and evasion.

| 1.5. | The new legislature must cooperate closely with the OECD and G20 in seeking a speedy solution to the global problem of base erosion and profit shifting. The OECD has made good progress in introducing a global model for taxing corporations which seeks to capture tax where the economic substance is located. It should form the basis for corporate taxation in the EU. |
| --- | --- |

1.5.

The new legislature must cooperate closely with the OECD and G20 in seeking a speedy solution to the global problem of base erosion and profit shifting. The OECD has made good progress in introducing a global model for taxing corporations which seeks to capture tax where the economic substance is located. It should form the basis for corporate taxation in the EU.

| 1.6. | In order to move towards a deeper fiscal union, it is essential to continue budgetary surveillance under the Two-pack and to swiftly introduce an own resource fund in the euro area to reverse macroeconomic imbalances (1). |
| --- | --- |

1.6.

In order to move towards a deeper fiscal union, it is essential to continue budgetary surveillance under the Two-pack and to swiftly introduce an own resource fund in the euro area to reverse macroeconomic imbalances (1).

| 1.7. | The Committee fully supports the continuation of the European Semester process, which should be reviewed to ensure its effectiveness. The individual Country Specific Recommendations could be a tool in moving to common ground. |
| --- | --- |

1.7.

The Committee fully supports the continuation of the European Semester process, which should be reviewed to ensure its effectiveness. The individual Country Specific Recommendations could be a tool in moving to common ground.

| 1.8. | The meagre common budget of barely 1 % of EU GDP must be increased, especially in the euro area. Commission President Juncker’s political guidelines ‘A New Start for Europe’ call for the budget to be oriented further towards jobs, growth and competitiveness. The EESC supports this approach and emphasises the need to use the review of the Multiannual Financial Framework at the end of 2016 to lay the foundations for an increased budget to fulfil the proper functioning of the monetary union. |
| --- | --- |

1.8.

The meagre common budget of barely 1 % of EU GDP must be increased, especially in the euro area. Commission President Juncker’s political guidelines ‘A New Start for Europe’ call for the budget to be oriented further towards jobs, growth and competitiveness. The EESC supports this approach and emphasises the need to use the review of the Multiannual Financial Framework at the end of 2016 to lay the foundations for an increased budget to fulfil the proper functioning of the monetary union.

| 1.9. | The Commission should follow up on its Communication of March 2013 ‘Towards a Deep and Genuine Economic and Monetary Union’ (2) and introduce a Convergence and Competitiveness Instrument directed at contractual arrangements for Member States to undertake reforms with a national and European benefit to address imbalances which could not be undertaken without financial assistance. This fund should develop into an own resource fiscal capacity capable of giving temporary assistance in combating regional shocks (3). |
| --- | --- |

1.9.

The Commission should follow up on its Communication of March 2013 ‘Towards a Deep and Genuine Economic and Monetary Union’ (2) and introduce a Convergence and Competitiveness Instrument directed at contractual arrangements for Member States to undertake reforms with a national and European benefit to address imbalances which could not be undertaken without financial assistance. This fund should develop into an own resource fiscal capacity capable of giving temporary assistance in combating regional shocks (3).

| 1.10. | The euro area budget should help the monetary union to function better, give fiscal backing to achieve a full banking union, and to offset asymmetric shocks. These functions were lacking when the economic crisis struck, dramatically exacerbating inequalities that required fiscal measures. |
| --- | --- |

1.10.

The euro area budget should help the monetary union to function better, give fiscal backing to achieve a full banking union, and to offset asymmetric shocks. These functions were lacking when the economic crisis struck, dramatically exacerbating inequalities that required fiscal measures.

| 1.11. | The EESC is aware of the complexity of the issue, and proposes a raft of measures to be adopted gradually, in keeping with the objectives set out in the European treaties (4):
  Short-term (6 to 18 months):






  — | Create a ‘Common Consolidated Corporate Tax Base’ in the EU (5), in line with the Committee’s previous positions (6) and with a fairer setting of parameters than in the current Commission proposal (7) The progress achieved by the OECD will also have to be considered. |
| --- | --- | --- |

1.11.

The EESC is aware of the complexity of the issue, and proposes a raft of measures to be adopted gradually, in keeping with the objectives set out in the European treaties (4):

Short-term (6 to 18 months):

—

Create a ‘Common Consolidated Corporate Tax Base’ in the EU (5), in line with the Committee’s previous positions (6) and with a fairer setting of parameters than in the current Commission proposal (7) The progress achieved by the OECD will also have to be considered.

| — | Respond to global developments at OECD and G20 level on base erosion and profit shifting (BEPS) to ensure that tax regimes are transparent and do not give unfair tax concessions and urgently eliminate practices used in the Member States to grant selected corporations special tax privileges. |
| --- | --- |

—

Respond to global developments at OECD and G20 level on base erosion and profit shifting (BEPS) to ensure that tax regimes are transparent and do not give unfair tax concessions and urgently eliminate practices used in the Member States to grant selected corporations special tax privileges.

| — | Seek effective agreements in the euro area to extend the planned financial transaction tax beyond the eleven Member States which support it. |
| --- | --- |

—

Seek effective agreements in the euro area to extend the planned financial transaction tax beyond the eleven Member States which support it.

| — | Involve citizens in combating the black economy, tax evasion and tax fraud by encouraging the private sector to reinforce instruments such as service vouchers, forms of electronic payment that leave a trace and cooperation with the authorities to these ends. |
| --- | --- |

—

Involve citizens in combating the black economy, tax evasion and tax fraud by encouraging the private sector to reinforce instruments such as service vouchers, forms of electronic payment that leave a trace and cooperation with the authorities to these ends.

| — | Improve administrative cooperation beyond the current VAT network and database, using enhanced cooperation, in four areas:






  i) | Strengthen the Eurofisc platform (8) as an embryonic EU agency acting as a VAT clearing house and tackling tax fraud that is beginning to operate in the euro area, in order to complete the information chain for national treasuries, thus putting an end to ‘carousel fraud’ (9). |
| --- | --- | --- |

—

Improve administrative cooperation beyond the current VAT network and database, using enhanced cooperation, in four areas:

i)

Strengthen the Eurofisc platform (8) as an embryonic EU agency acting as a VAT clearing house and tackling tax fraud that is beginning to operate in the euro area, in order to complete the information chain for national treasuries, thus putting an end to ‘carousel fraud’ (9).

| ii) | Strengthen the 2011 Mutual Assistance Directive (10) as a legal basis throughout the EU, with some of its content, if necessary, taking the form of a regulation. |
| --- | --- |

ii)

Strengthen the 2011 Mutual Assistance Directive (10) as a legal basis throughout the EU, with some of its content, if necessary, taking the form of a regulation.

| iii) | The Committee urges the Commission to implement its proposal contained in the Action plan for Fighting Fiscal Fraud and Fiscal evasion to blacklist jurisdictions that act as tax havens, in disregard of good governance in tax matters and calls for common criteria to be established at EU level for identifying such jurisdictions so as to prevent this being applied unevenly. The Committee urges DG Competition to fully investigate any unfair tax agreements reached by MS and individual companies. The use and location of businesses in these territories should moreover be specifically mentioned in the Corporate Social Responsibility reports of companies quoted on stock exchanges. |
| --- | --- |

iii)

The Committee urges the Commission to implement its proposal contained in the Action plan for Fighting Fiscal Fraud and Fiscal evasion to blacklist jurisdictions that act as tax havens, in disregard of good governance in tax matters and calls for common criteria to be established at EU level for identifying such jurisdictions so as to prevent this being applied unevenly. The Committee urges DG Competition to fully investigate any unfair tax agreements reached by MS and individual companies. The use and location of businesses in these territories should moreover be specifically mentioned in the Corporate Social Responsibility reports of companies quoted on stock exchanges.

| iv) | Set up a European body for tax simplification on the basis of previous experience in the Member States. |
| --- | --- |

iv)

Set up a European body for tax simplification on the basis of previous experience in the Member States.

Medium-term (18 months to 5 years):

| — | On corporate taxation: In the spirit of the ‘monetary snake’ of the 1980s and preparing the ground for a Treaty change, create a ‘tax snake’ in the euro area consisting of effective minimum and maximum rates, so as to progressively harmonise them. |
| --- | --- |

—

On corporate taxation: In the spirit of the ‘monetary snake’ of the 1980s and preparing the ground for a Treaty change, create a ‘tax snake’ in the euro area consisting of effective minimum and maximum rates, so as to progressively harmonise them.

| — | Achieve specific fiscal capacity in the euro area (11), through income based on the previously mentioned tax on financial transactions and four others: consumption of non-renewable energies (limited to those that have registered price falls in recent years), a temporary levy on balance of payments surpluses of more than 6 % of GDP (12), emission of joint bonds and a share of seigniorage income from issuing currency. |
| --- | --- |

—

Achieve specific fiscal capacity in the euro area (11), through income based on the previously mentioned tax on financial transactions and four others: consumption of non-renewable energies (limited to those that have registered price falls in recent years), a temporary levy on balance of payments surpluses of more than 6 % of GDP (12), emission of joint bonds and a share of seigniorage income from issuing currency.

| — | Set up an authority in the euro area to coordinate the Member States in collecting these five taxes and in checking, inspecting and distributing revenue. |
| --- | --- |

—

Set up an authority in the euro area to coordinate the Member States in collecting these five taxes and in checking, inspecting and distributing revenue.

| — | Thereby establish an additional, federal budget in the euro area, providing for common unemployment insurance, cohesion policies and sustainable investment linked to the green economy. |
| --- | --- |

—

Thereby establish an additional, federal budget in the euro area, providing for common unemployment insurance, cohesion policies and sustainable investment linked to the green economy.

| — | Amend the current fiscal decision-making model in the euro area, bringing in a qualified majority system. The Committee recognises that this would require a contentious treaty change. |
| --- | --- |

—

Amend the current fiscal decision-making model in the euro area, bringing in a qualified majority system. The Committee recognises that this would require a contentious treaty change.

2.   EMU and its fiscal and taxation framework

2.1.   Framework

| 2.1.1. | The 28 EU Member States have set out on the path of integration, with stronger commitments and obligations within the euro area, guided by monetary union, now strengthened by an evolving banking union and the Intergovernmental Treaty on Stability, Coordination and Governance in the Economic and Monetary Union. |
| --- | --- |

2.1.1.

The 28 EU Member States have set out on the path of integration, with stronger commitments and obligations within the euro area, guided by monetary union, now strengthened by an evolving banking union and the Intergovernmental Treaty on Stability, Coordination and Governance in the Economic and Monetary Union.

| 2.1.2. | Taxation policy currently covers more than 600 distinct taxes. These provide the bulk of revenue, equivalent in total (taxes and social security contributions) to 39,4 % of the Member States’ GDP (13) and 40,4 % in the euro area. There is a need to bring more coordination to the tax policies of Member States in the euro area to complement the single monetary policy of the ECB. |
| --- | --- |

2.1.2.

Taxation policy currently covers more than 600 distinct taxes. These provide the bulk of revenue, equivalent in total (taxes and social security contributions) to 39,4 % of the Member States’ GDP (13) and 40,4 % in the euro area. There is a need to bring more coordination to the tax policies of Member States in the euro area to complement the single monetary policy of the ECB.

| 2.1.3. | Making progress towards fiscal union, in the case of the euro area, would mean being able to rely on its own resources and make a start on effectively supporting important structural reforms in the economies in difficulty as well as to implement solidarity-based and redistribution policies which are essential to offset asymmetric shocks. |
| --- | --- |

2.1.3.

Making progress towards fiscal union, in the case of the euro area, would mean being able to rely on its own resources and make a start on effectively supporting important structural reforms in the economies in difficulty as well as to implement solidarity-based and redistribution policies which are essential to offset asymmetric shocks.

| 2.1.4. | Compared to other advanced economies the EU, and the euro area in particular, has lower rates of growth (GDP) and employment. Most economic integration theories suggest models that comprise both monetary and fiscal union. The TFEU however imposes decision-making by unanimity in matters of taxation, making the adoption of legislation far more difficult. |
| --- | --- |

2.1.4.

Compared to other advanced economies the EU, and the euro area in particular, has lower rates of growth (GDP) and employment. Most economic integration theories suggest models that comprise both monetary and fiscal union. The TFEU however imposes decision-making by unanimity in matters of taxation, making the adoption of legislation far more difficult.

| 2.1.5. | The euro area’s lack of macroeconomic efficiency can be attributed in part to the mismatch between fiscal policy, which is highly decentralised and within the ambit of the Member States, and monetary policy, which in the euro area countries is increasingly centralised under the authority of the ECB. |
| --- | --- |

2.1.5.

The euro area’s lack of macroeconomic efficiency can be attributed in part to the mismatch between fiscal policy, which is highly decentralised and within the ambit of the Member States, and monetary policy, which in the euro area countries is increasingly centralised under the authority of the ECB.

| 2.1.6. | The ECB’s limited powers prevent it from financing budget deficits by creating money. This might be positive for price stability and the value of the currency, but not for growth, employment and other objectives. There has been little progress in the EU towards fiscal union since monetary union. This makes it difficult to ensure mobility of labour and capital, and to respond to the crisis and asymmetric shocks. |
| --- | --- |

2.1.6.

The ECB’s limited powers prevent it from financing budget deficits by creating money. This might be positive for price stability and the value of the currency, but not for growth, employment and other objectives. There has been little progress in the EU towards fiscal union since monetary union. This makes it difficult to ensure mobility of labour and capital, and to respond to the crisis and asymmetric shocks.

2.2.   Revenue and expenditure trends and problems

| 2.2.1. | The minimal tax policy coordination applied to date is barely sufficient to prevent the distortion of competition between Member States and to mitigate the competitive race to the bottom which mainly affects nominal and effective rates of corporate and personal income taxes; this could have a positive impact if handled in a concerted way between the Member States. Unfortunately, for the moment this is a negative-sum game in which the winners are income on capital and highly mobile labour, with the great majority losing out. |
| --- | --- |

2.2.1.

The minimal tax policy coordination applied to date is barely sufficient to prevent the distortion of competition between Member States and to mitigate the competitive race to the bottom which mainly affects nominal and effective rates of corporate and personal income taxes; this could have a positive impact if handled in a concerted way between the Member States. Unfortunately, for the moment this is a negative-sum game in which the winners are income on capital and highly mobile labour, with the great majority losing out.

| 2.2.2. | Although fiscal integration requires a system of transfers and an authority, the EU budget is limited to 1 % of GDP. Net transfers make up a minimal part of these resources, despite the objectives set out in the Europe 2020 strategy and the Europe 2030 project. |
| --- | --- |

2.2.2.

Although fiscal integration requires a system of transfers and an authority, the EU budget is limited to 1 % of GDP. Net transfers make up a minimal part of these resources, despite the objectives set out in the Europe 2020 strategy and the Europe 2030 project.

| 2.2.3. | The roadmap towards a fully-fledged Economic and Monetary Union, drawn up in 2012 (14), proposes moving in the medium term towards an economic, monetary and fiscal union, by means, among other things, of more specific initiatives, while in the short term it is planned to strengthen fiscal and economic governance (Six Pack, Fiscal Pact and Two Pack); the European Semester and its Recommendations; and lastly the Intergovernmental Treaty on Stability, Coordination and Governance in the EMU signed by 25 countries, outside the TFEU. The system is one-way, rigid and unwieldy, failing to provide the flexibility needed to tackle the immediate economic situation in a crisis situation and to introduce a euro area policy mix. |
| --- | --- |

2.2.3.

The roadmap towards a fully-fledged Economic and Monetary Union, drawn up in 2012 (14), proposes moving in the medium term towards an economic, monetary and fiscal union, by means, among other things, of more specific initiatives, while in the short term it is planned to strengthen fiscal and economic governance (Six Pack, Fiscal Pact and Two Pack); the European Semester and its Recommendations; and lastly the Intergovernmental Treaty on Stability, Coordination and Governance in the EMU signed by 25 countries, outside the TFEU. The system is one-way, rigid and unwieldy, failing to provide the flexibility needed to tackle the immediate economic situation in a crisis situation and to introduce a euro area policy mix.

| 2.2.4. | In fact, it is remarkable that so far only measures on the expenditure side have been launched while completely neglecting the revenue side of a fiscal union. |
| --- | --- |

2.2.4.

In fact, it is remarkable that so far only measures on the expenditure side have been launched while completely neglecting the revenue side of a fiscal union.

| 2.2.5. | In addition to the absence of a fiscal supervisory authority, the troika acted in a politicised way, imposing austerity policies on countries which required aid, drawing criticism from the European Parliament (15) and the EESC for their lack of effectiveness and transparency. |
| --- | --- |

2.2.5.

In addition to the absence of a fiscal supervisory authority, the troika acted in a politicised way, imposing austerity policies on countries which required aid, drawing criticism from the European Parliament (15) and the EESC for their lack of effectiveness and transparency.

| 2.2.6. | The EESC supports the Commission President, Mr Juncker’s, political guidelines ‘A New Start for Europe’ that call for the EU to replace the ‘troika’ with a more democratically legitimate and more accountable structure based around the EU institutions, with enhanced parliamentary control both at EU and national level. |
| --- | --- |

2.2.6.

The EESC supports the Commission President, Mr Juncker’s, political guidelines ‘A New Start for Europe’ that call for the EU to replace the ‘troika’ with a more democratically legitimate and more accountable structure based around the EU institutions, with enhanced parliamentary control both at EU and national level.

| 2.2.7. | Meanwhile, policies of fiscal devaluation pursued in some of the most vulnerable of the euro area countries resulted in damage to the European social model (16) rather than increased competitiveness, as the reduction of the burden on labour as a factor of production had scarcely any impact in terms of improved growth, employment and the debt situation, leading to unnecessary loss of tax income. In some Member States however, correcting some imbalances seems to begin to show beneficial effects. |
| --- | --- |

2.2.7.

Meanwhile, policies of fiscal devaluation pursued in some of the most vulnerable of the euro area countries resulted in damage to the European social model (16) rather than increased competitiveness, as the reduction of the burden on labour as a factor of production had scarcely any impact in terms of improved growth, employment and the debt situation, leading to unnecessary loss of tax income. In some Member States however, correcting some imbalances seems to begin to show beneficial effects.

3.   Comments

3.1.   Relevance of the taxation of financial and digital services

| 3.1.1. | The difficulty of making progress on integration in the field of taxation has been illustrated in two areas: financial transactions and transactions in the digital economy; the Commission must give a rapid response, in line with investigations by the Competition DG, the recommendations of the Commission Expert Group on Taxation of the Digital Economy (17) and the OECD’s first proposals (18) for a coordinated international approach to combat tax avoidance by multinational enterprises, under the OECD/G20 Base Erosion and Profit Shifting Project (designed to create a single set of international tax rules to end the erosion of tax bases and the artificial shifting of profits to jurisdictions to avoid paying tax). |
| --- | --- |

3.1.1.

The difficulty of making progress on integration in the field of taxation has been illustrated in two areas: financial transactions and transactions in the digital economy; the Commission must give a rapid response, in line with investigations by the Competition DG, the recommendations of the Commission Expert Group on Taxation of the Digital Economy (17) and the OECD’s first proposals (18) for a coordinated international approach to combat tax avoidance by multinational enterprises, under the OECD/G20 Base Erosion and Profit Shifting Project (designed to create a single set of international tax rules to end the erosion of tax bases and the artificial shifting of profits to jurisdictions to avoid paying tax).

| 3.1.2. | As the planned financial transaction tax applying to the whole EU has so far progressed no further than the February 2013 Directive on enhanced cooperation involving only 11 euro area countries (19), its application should be extended at least to the euro area (overcoming the lack of progress of the last months). |
| --- | --- |

3.1.2.

As the planned financial transaction tax applying to the whole EU has so far progressed no further than the February 2013 Directive on enhanced cooperation involving only 11 euro area countries (19), its application should be extended at least to the euro area (overcoming the lack of progress of the last months).

| 3.1.3. | The EESC welcomes the proposal to amend the Directive on Taxation of savings income (20) to improve the quality of information and ensure more effective prevention of tax evasion. |
| --- | --- |

3.1.3.

The EESC welcomes the proposal to amend the Directive on Taxation of savings income (20) to improve the quality of information and ensure more effective prevention of tax evasion.

3.2.   Tax structures: bases, rates and exemptions

| 3.2.1. | Every year the EU loses far more tax income than the United States or other countries where there is less of a black economy, tax or employment fraud and tax evasion (21). In order to prevent dysfunctions such as tax havens, the extensive and complex tax structures require greater homogeneity, simplification and harmonisation between countries. The process should begin with the euro area, coordinated by the Commission and the Euro-group, using a European simplification body of the kind that already exists in some countries (22). |
| --- | --- |

3.2.1.

Every year the EU loses far more tax income than the United States or other countries where there is less of a black economy, tax or employment fraud and tax evasion (21). In order to prevent dysfunctions such as tax havens, the extensive and complex tax structures require greater homogeneity, simplification and harmonisation between countries. The process should begin with the euro area, coordinated by the Commission and the Euro-group, using a European simplification body of the kind that already exists in some countries (22).

| 3.2.2. | The EESC also believes that convergence of tax policies should be a priority in the framework of the European Semester (taking advantage of some Country Specific Recommendations), since this is the forum for coordinating economic policy efforts between the Member States in order to achieve the Europe 2020 objectives too, with the help of the other policies. |
| --- | --- |

3.2.2.

The EESC also believes that convergence of tax policies should be a priority in the framework of the European Semester (taking advantage of some Country Specific Recommendations), since this is the forum for coordinating economic policy efforts between the Member States in order to achieve the Europe 2020 objectives too, with the help of the other policies.

| 3.2.3. | The EESC calls for a fairer and more effective system, with tax reform and harmonisation geared towards transparency, broadening the tax base and prevention of aggressive tax avoidance, thus enabling rates of tax to fall and the burden to be redistributed. |
| --- | --- |

3.2.3.

The EESC calls for a fairer and more effective system, with tax reform and harmonisation geared towards transparency, broadening the tax base and prevention of aggressive tax avoidance, thus enabling rates of tax to fall and the burden to be redistributed.

| 3.2.4. | The EESC recommends limiting the system of exemptions, depending on the nature of each tax by means of rigorous economic and social cost-benefit analyses, in line with the international principle of tax expenditures, which has been consolidated since 1968, and considering that during the last five crisis years tax-benefit systems were able to contain a considerable part of the increase in market inequality in most EU Member States, according to Commission studies (23). |
| --- | --- |

3.2.4.

The EESC recommends limiting the system of exemptions, depending on the nature of each tax by means of rigorous economic and social cost-benefit analyses, in line with the international principle of tax expenditures, which has been consolidated since 1968, and considering that during the last five crisis years tax-benefit systems were able to contain a considerable part of the increase in market inequality in most EU Member States, according to Commission studies (23).

| 3.2.5. | The EESC urges the EU to take a more active part, through euro area representatives, in discussions on coordinating its harmonisation and simplification work with the OECD (24), the IMF (25) and the G-20 (26), beginning with transfer prices, fraud and the black economy and, above all, problems of fairness in the distribution of the burden of taxation. |
| --- | --- |

3.2.5.

The EESC urges the EU to take a more active part, through euro area representatives, in discussions on coordinating its harmonisation and simplification work with the OECD (24), the IMF (25) and the G-20 (26), beginning with transfer prices, fraud and the black economy and, above all, problems of fairness in the distribution of the burden of taxation.

| 3.2.6. | The EESC considers that the BEPS (Base Erosion and Profit Shifting) action plan (27) will be essential to combating tax evasion and aggressive tax planning at global level. It therefore encourages the G20, the OECD and all the Member States to develop it, creating an embryonic EU agency acting as a VAT clearing house and tackling tax fraud, in order to eradicate the problem of ‘carousel fraud’ (28) in intra-Community transactions, which is more damaging than the black economy itself. |
| --- | --- |

3.2.6.

The EESC considers that the BEPS (Base Erosion and Profit Shifting) action plan (27) will be essential to combating tax evasion and aggressive tax planning at global level. It therefore encourages the G20, the OECD and all the Member States to develop it, creating an embryonic EU agency acting as a VAT clearing house and tackling tax fraud, in order to eradicate the problem of ‘carousel fraud’ (28) in intra-Community transactions, which is more damaging than the black economy itself.

| 3.2.7. | Lastly, given that tax exemptions and reliefs result in effective tax rates that are far lower than the nominal ones, they should be coordinated with European objectives on employment, productive investment, business competitiveness and social inclusion, as well as with the Union policies which shape the European social model. |
| --- | --- |

3.2.7.

Lastly, given that tax exemptions and reliefs result in effective tax rates that are far lower than the nominal ones, they should be coordinated with European objectives on employment, productive investment, business competitiveness and social inclusion, as well as with the Union policies which shape the European social model.

3.3.   Taxation of companies

| 3.3.1. | The EESC calls for priority to be given to harmonisation of company taxes to progress towards a coherent budgetary and fiscal union (29) so that SMEs do not pay the highest effective tax rates. The EESC also considers highly reprehensible the practice of some Member States of granting special, unpublicised tax reliefs to selected multinational corporations; in this connection it calls on the European Commission to do everything possible to eliminate such practices. This state of affairs leads to a distortion of competition that is incompatible with the whole purpose of the single market. |
| --- | --- |

3.3.1.

The EESC calls for priority to be given to harmonisation of company taxes to progress towards a coherent budgetary and fiscal union (29) so that SMEs do not pay the highest effective tax rates. The EESC also considers highly reprehensible the practice of some Member States of granting special, unpublicised tax reliefs to selected multinational corporations; in this connection it calls on the European Commission to do everything possible to eliminate such practices. This state of affairs leads to a distortion of competition that is incompatible with the whole purpose of the single market.

| 3.3.1.1. | One of the first and most important levers should focus on creating a ‘common consolidated tax base’. This position was officially put forward by the Committee in 2006 (30) and confirmed subsequently (31). As long ago as 1992 the Ruding Report pointed to the need for common rules to define the tax base starting with minimum and maximum rates. |
| --- | --- |

3.3.1.1.

One of the first and most important levers should focus on creating a ‘common consolidated tax base’. This position was officially put forward by the Committee in 2006 (30) and confirmed subsequently (31). As long ago as 1992 the Ruding Report pointed to the need for common rules to define the tax base starting with minimum and maximum rates.

| 3.3.1.2. | In the spirit of the ‘monetary snake’ designed to resist currency fluctuations before the introduction of the euro, the Committee suggests that the authorities responsible are encouraged to cooperate establishing a ceiling and a floor for corporate tax. Exemptions which are less conducive to increasing employment or productivity should also be eliminated in a coordinated way. |
| --- | --- |

3.3.1.2.

In the spirit of the ‘monetary snake’ designed to resist currency fluctuations before the introduction of the euro, the Committee suggests that the authorities responsible are encouraged to cooperate establishing a ceiling and a floor for corporate tax. Exemptions which are less conducive to increasing employment or productivity should also be eliminated in a coordinated way.

| 3.3.2. | The EESC welcomes the proposal for a directive on parent companies and subsidiaries in different Member States, one of 34 measures included in the Action Plan to strengthen the fight against tax fraud and tax evasion
   (32) presented by the Commission at the end of 2012. It would however prefer this to be implemented by means of a regulation. |
| --- | --- |

3.3.2.

The EESC welcomes the proposal for a directive on parent companies and subsidiaries in different Member States, one of 34 measures included in the Action Plan to strengthen the fight against tax fraud and tax evasion
   (32) presented by the Commission at the end of 2012. It would however prefer this to be implemented by means of a regulation.

| 3.3.3. | Regarding intra-EU trade in goods and services, there has been more progress on the harmonisation of VAT, where the harmonisation of tax bases has improved but there are still major differences in rates of tax. |
| --- | --- |

3.3.3.

Regarding intra-EU trade in goods and services, there has been more progress on the harmonisation of VAT, where the harmonisation of tax bases has improved but there are still major differences in rates of tax.

| 3.3.4. | Finally, in view of their strategic character, the EESC recommends that priority be given to tax incentives for research and development (33). |
| --- | --- |

3.3.4.

Finally, in view of their strategic character, the EESC recommends that priority be given to tax incentives for research and development (33).

| 3.3.5. | Care should be taken to ensure that any measures envisaged do not harm the competitiveness of European companies. |
| --- | --- |

3.3.5.

Care should be taken to ensure that any measures envisaged do not harm the competitiveness of European companies.

3.4.   Taxation of persons and households

| 3.4.1. | Natural persons are subject to both direct and indirect taxation. It has to be borne in mind that indirect taxes are regressive by nature and especially upward harmonisation of indirect taxation is regressive and can have a drastic effect on the lowest-income sectors of the population without countervailing income supplements. |
| --- | --- |

3.4.1.

Natural persons are subject to both direct and indirect taxation. It has to be borne in mind that indirect taxes are regressive by nature and especially upward harmonisation of indirect taxation is regressive and can have a drastic effect on the lowest-income sectors of the population without countervailing income supplements.

| 3.4.2. | Harmonisation of the direct taxation of natural persons is limited to specific cases and the tax burden has ceased to converge. |
| --- | --- |

3.4.2.

Harmonisation of the direct taxation of natural persons is limited to specific cases and the tax burden has ceased to converge.

| 3.4.3. | At least in the euro area, the number of chapters in personal income tax law and the cost of social security contributions should be revised in order to prevent social dumping, make the ‘tax wedge’ on labour more uniform and thus facilitate its mobility (34). The progressive nature of such taxation should be extended to income from capital and the wealth by which it is generated, once again making property, inheritance and gift taxes an instrument of control. Furthermore these kinds of taxes have less dampening effect on demand than taxes on labour. |
| --- | --- |

3.4.3.

At least in the euro area, the number of chapters in personal income tax law and the cost of social security contributions should be revised in order to prevent social dumping, make the ‘tax wedge’ on labour more uniform and thus facilitate its mobility (34). The progressive nature of such taxation should be extended to income from capital and the wealth by which it is generated, once again making property, inheritance and gift taxes an instrument of control. Furthermore these kinds of taxes have less dampening effect on demand than taxes on labour.

| 3.4.4. | The need to place more emphasis on investment rather than consumption makes it important to harmonise and set up convergence snakes for the taxation of income on savings (35) and dividends received by natural persons and cross-border pension benefits. |
| --- | --- |

3.4.4.

The need to place more emphasis on investment rather than consumption makes it important to harmonise and set up convergence snakes for the taxation of income on savings (35) and dividends received by natural persons and cross-border pension benefits.

| 3.4.5. | The EESC supports the search by the Commission for ways to make tax structures more growth-friendly, and to look at the role that taxation can play in meeting consolidation needs in the context of broadening tax bases like housing taxation. So the recommendations made by the European Commission to Member States in the European Semester were to make further use of recurrent taxes on property, for the purpose of consolidation or as part of a tax shift away from labour (36). |
| --- | --- |

3.4.5.

The EESC supports the search by the Commission for ways to make tax structures more growth-friendly, and to look at the role that taxation can play in meeting consolidation needs in the context of broadening tax bases like housing taxation. So the recommendations made by the European Commission to Member States in the European Semester were to make further use of recurrent taxes on property, for the purpose of consolidation or as part of a tax shift away from labour (36).

| 3.4.6. | The EESC also proposes that additional measures be adopted to harmonise environmental taxes, taking the Commission’s 2030 Framework for Climate and Energy Policies as a starting point. |
| --- | --- |

3.4.6.

The EESC also proposes that additional measures be adopted to harmonise environmental taxes, taking the Commission’s 2030 Framework for Climate and Energy Policies as a starting point.

| 3.4.7. | The public will help to combat the serious problem of tax and labour fraud if there are incentives to do so. Instruments like the service voucher or tax exemptions and relief for other personal support services, which combine the objectives of promoting social welfare and bringing the black economy into the open, should be strengthened. |
| --- | --- |

3.4.7.

The public will help to combat the serious problem of tax and labour fraud if there are incentives to do so. Instruments like the service voucher or tax exemptions and relief for other personal support services, which combine the objectives of promoting social welfare and bringing the black economy into the open, should be strengthened.

| 3.4.8. | In order to combat the informal economy, the EESC proposes that tax incentives be introduced for the use of forms of payment, such as cards and mobile phones, which leave a trace and encourage financial and digital inclusion, by means of harmonised tax reliefs or exemptions for individuals and companies who reduce their use of cash. |
| --- | --- |

3.4.8.

In order to combat the informal economy, the EESC proposes that tax incentives be introduced for the use of forms of payment, such as cards and mobile phones, which leave a trace and encourage financial and digital inclusion, by means of harmonised tax reliefs or exemptions for individuals and companies who reduce their use of cash.

| 3.4.9. | Similarly, public cooperation could be stepped up by means of economic incentives for detecting possibly fraudulent transactions, modelled on what is normal practice in the US. |
| --- | --- |

3.4.9.

Similarly, public cooperation could be stepped up by means of economic incentives for detecting possibly fraudulent transactions, modelled on what is normal practice in the US.

3.5.   Territorial taxation (regions, States and EU)

| 3.5.1. | The great diversity of taxation encourages fraud, corruption and the black economy. The EESC calls on the Member States of the euro area to take on greater powers in the four major areas of taxation: direct taxation of natural and legal persons (including taxation of capital income and property as well as other wealth related taxes), and indirect taxation in the form of VAT and special taxes. |
| --- | --- |

3.5.1.

The great diversity of taxation encourages fraud, corruption and the black economy. The EESC calls on the Member States of the euro area to take on greater powers in the four major areas of taxation: direct taxation of natural and legal persons (including taxation of capital income and property as well as other wealth related taxes), and indirect taxation in the form of VAT and special taxes.

| 3.5.2. | Making progress on fiscal governance inevitably means a gradual hand-over of sovereignty by the Member States. In this way, tax collection could continue to be predominantly a matter for States, with checks, inspections and distribution of revenue being handled between the Union and the States. To this end, the EESC proposes the establishment of an EU tax authority, beginning with the euro area. |
| --- | --- |

3.5.2.

Making progress on fiscal governance inevitably means a gradual hand-over of sovereignty by the Member States. In this way, tax collection could continue to be predominantly a matter for States, with checks, inspections and distribution of revenue being handled between the Union and the States. To this end, the EESC proposes the establishment of an EU tax authority, beginning with the euro area.

| 3.5.3. | In keeping with the principle of subsidiarity, local taxes must be respected, but the EESC recommends launching a campaign of simplification by reducing, grouping and standardising many existing taxes. |
| --- | --- |

3.5.3.

In keeping with the principle of subsidiarity, local taxes must be respected, but the EESC recommends launching a campaign of simplification by reducing, grouping and standardising many existing taxes.

3.6.   External dimension and link with public policies

| 3.6.1. | A supranational fiscal policy (37) would be an effective instrument for achieving the aims of the Treaties, particularly cohesion and sustainability policies. |
| --- | --- |

3.6.1.

A supranational fiscal policy (37) would be an effective instrument for achieving the aims of the Treaties, particularly cohesion and sustainability policies.

| 3.6.2. | The EESC calls for the establishment of an additional federal budget, at least in the euro area, which could collect taxes and gradually take on those policies which can be better implemented in common: unemployment insurance linked to active labour market policies (38), research and development, defence, a common mechanism to compensate for the debt interest burden (39), etc. |
| --- | --- |

3.6.2.

The EESC calls for the establishment of an additional federal budget, at least in the euro area, which could collect taxes and gradually take on those policies which can be better implemented in common: unemployment insurance linked to active labour market policies (38), research and development, defence, a common mechanism to compensate for the debt interest burden (39), etc.

| 3.6.3. | Lastly, the EESC strongly supports the initiatives taken by the OECD and G-20 in the field of international tax cooperation and to combat tax fraud, and urges that automatic exchange of tax information become the international standard. |
| --- | --- |

3.6.3.

Lastly, the EESC strongly supports the initiatives taken by the OECD and G-20 in the field of international tax cooperation and to combat tax fraud, and urges that automatic exchange of tax information become the international standard.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

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(1)  The system is nevertheless overly rigid and unwieldy, and incapable of rapidly ensuring the flexibility needed to tackle immediate economic circumstances and come up with a euro area policy mix, in a situation where the Member States no longer have sufficient room for manoeuvre to launch recovery plans for their economies. The consequence is to generate powerful financial instability.

1

(2)  COM(2013) 165 final.

2

(3)  EESC opinion on CCI/Major economic policy reforms (OJ C 271, 19.9.2013, p. 45).

3

CCI/Major economic policy reforms

(4)  See Articles 113 and 115 TFEU in particular.

4

(5)  See the ECO-relevant highlights from the Political Guidelines for the next European Commission, presented to the European Parliament by Jean-Claude Juncker. See also Juncker: A New Start for Europe: My Agenda (...), p. 6.

5

Political Guidelines for the next European Commission

A New Start for Europe: My Agenda (...)

(6)  EESC opinion on CCCTB (OJ C 24, 28.1.2012, p. 63).

6

CCCTB

(7)  COM(2011) 121 final.

7

(8)  www.eurofisc.eu

8

(9)  Fictitious sales in the State of final consumption causing potentially unlimited losses for national treasuries.

9

(10)  Directive 2011/16/EU.

10

(11)  See EESC opinions on Fiscal policy: growth and fiscal adjustments (OJ C 248, 25.8.2011, p. 8) and on Completing EMU — the next European legislature and the Blueprint for a deep and genuine economic and monetary union, COM(2012) 777 final/2, point 3.

11

Fiscal policy: growth and fiscal adjustments

Completing EMU — the next European legislature

Blueprint for a deep and genuine economic and monetary union

(12)  See EESC opinion on Completing EMU — the next European legislature (OJ C 451, 16.12.2014, p. 10).

12

Completing EMU — the next European legislature

(13)  2012 data published by Eurostat (92/2014) on 16 June 2014.

13

(14)  COM(2012) 777 final/2.

14

(15)  Alejandro Cercas, Report: PE528.091v02-00.

15

(16)  http://www.eurofound.europa.eu/publications/annual-report/2014/eurofound-yearbook-2013-living-and-working-in-europe

16

(17)  See the Report — On 22 October 2013, the Commission adopted a Decision setting up the Expert Group, which that same year defined the scope of its work and its Roadmap. Its opinion was published on 28 May 2014.

17

(18)  http://www.oecd.org/tax/beps-2014-deliverables.htm

18

(19)  COM(2013) 71 final, 2013/0045 (CNS): Belgium, Germany, Estonia, Greece, Spain, France, Italy, Austria, Portugal, Slovenia and Slovakia.

19

(20)  Taxation of Savings Income — European Commission.

20

(21)  Friedrich Schneider, ‘Shadow Economies and Corruption all over the World: Empirical Results for 1999 to 2003’, in: special issue of the International Journal of Social Economics (IJSE), Series 1, Vol. 35, No 9, 2008.

21

International Journal of Social Economics

(22)  For example The Office of Tax Simplification, HM Treasury, part of the Government of the United Kingdom.

22

(23)  European Commission Research note 02/2013 ‘The effect of tax-benefit changes on income distribution in EU countries since the beginning of the economic crisis’.

23

(24)  OECD project on Base Erosion and Profit Shifting (BEPS).

24

(25)  Role of the IMF in international taxation.

25

(26)  https://www.g20.org/sites/default/files/g20_resources/library/Saint_Petersburg_Declaration_ENG.pdf

26

(27)  Centre for Tax Policy and Administration — OECD.

27

(28)  Fictitious sales in the State of final consumption causing potentially unlimited losses for national treasuries.

28

(29)  See EESC declaration An action plan for Europe, adopted at the plenary session of 29 and 30 April 2014. See also EESC opinion Smart fiscal policy consolidation strategies — challenges of identifying growth drivers for Europe (OJ C 248, 25.8.2011, p. 8).

29

An action plan for Europe

Smart fiscal policy consolidation strategies — challenges of identifying growth drivers for Europe

(30)  EESC opinion on Creation of a common consolidated corporate tax base in the EU (OJ C 88, 11.4.2006, p. 48).

30

Creation of a common consolidated corporate tax base in the EU

(31)  EESC opinion on Common Consolidated Corporate Tax Base (OJ C 24, 28.1.2012, p. 63).

31

Common Consolidated Corporate Tax Base

(32)  COM(2012) 722 final.

32

(33)  Placing taxation at the service of research and development.

33

(34)  Eurogroup, statement 8 July 2014, Structural reform agenda — thematic discussions on growth and jobs — Reduction of the tax wedge.

34

Structural reform agenda — thematic discussions on growth and jobs — Reduction of the tax wedge

(35)  http://europa.eu/legislation_summaries/taxation/l31050_en.htm

35

(36)  European Commission (2014), Tax reforms in EU Member States, page 112.

36

Tax reforms in EU Member States, page 112

(37)  Stefan Collignon, Taking European integration seriously.

37

Taking European integration seriously

(38)  See EESC opinions on Completing EMU — the next European legislature and on For a social dimension of European Economic and Monetary Union (OJ C 271, 19.9.2013, p. 1).

38

Completing EMU — the next European legislature

For a social dimension of European Economic and Monetary Union

(39)  See EESC opinion on Restarting growth (OJ C 143, 22.5.2012, p. 10).

39

Restarting growth

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ANNEX

to the Opinion of the European Economic and Social Committee

The following amendment, which received at least a quarter of the votes cast, was rejected during the discussions (Rule 54(3) of the Rules of Procedure):

Point 1.4

Amend as follows:

| | Correcting the shortcomings and loopholes in taxation policy entails taking more ambitious steps within the euro area with a view to reducing and standardising the range of different taxes, extending tax bases, aligning tax rates more closely, and strengthening cooperation and information exchange mechanisms in order to combat fraud and evasion. At the same time, it should be borne in mind that the overall tax burden in the euro area should not exceed the tax burden in neighbouring countries. |
| --- | --- |

Correcting the shortcomings and loopholes in taxation policy entails taking more ambitious steps within the euro area with a view to reducing and standardising the range of different taxes, extending tax bases, aligning tax rates more closely, and strengthening cooperation and information exchange mechanisms in order to combat fraud and evasion. At the same time, it should be borne in mind that the overall tax burden in the euro area should not exceed the tax burden in neighbouring countries.

Reason

Since the opinion includes proposals for new taxes, it is important that the overall tax burden in the euro area not exceed the tax burden in neighbouring countries — otherwise this (high tax burden) may adversely affect the euro area, prompting more businesses to relocate and workers to emigrate.

Result of the vote:

| For: | 80 |
| --- | --- |
| Against: | 129 |
| Abstentions: | 17 |

For:

80

Against:

129

Abstentions:

17

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| 14.7.2015 | EN | Official Journal of the European Union | C 230/33 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/33

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Opinion of the European Economic and Social Committee on ‘Industrial changes in the European packaging sector’

(own-initiative opinion)

(2015/C 230/05)

| Rapporteur: | Mr Gonçalo LOBO XAVIER |
| --- | --- |
| Co-rapporteur: | Mr Nicola KONSTANTINOU |

Rapporteur:

Mr Gonçalo LOBO XAVIER

Co-rapporteur:

Mr Nicola KONSTANTINOU

On 22 January 2014, the European Economic and Social Committee, acting under Rule 29(2) of its Rules of Procedure, decided to draw up an own-initiative opinion on

Industrial changes in the European packaging sector.

The Consultative Commission on Industrial Change (CCMI), which was responsible for preparing the Committee’s work on the subject, adopted its opinion on 13 November 2014.

At its 503rd plenary session, held on 10 and 11 December 2014 (meeting of 10 December 2014), the European Economic and Social Committee adopted the following opinion by 119 votes to 1 with 4 abstentions.

1.   Conclusions and recommendations

| 1.1. | The European packaging industry faces several challenges. Its critical role in a number of sectors places the industry in a central position as regards the competitiveness of the European economy. Europe must retain leadership of this industry and should keep up trends concerning environmental sustainability, safety and branding issues in packaging. The EESC believes that this leadership must be based around four key pillars: resource efficiency; R & D and innovation; social dialogue; sustainability and adaptation. |
| --- | --- |

1.1.

The European packaging industry faces several challenges. Its critical role in a number of sectors places the industry in a central position as regards the competitiveness of the European economy. Europe must retain leadership of this industry and should keep up trends concerning environmental sustainability, safety and branding issues in packaging. The EESC believes that this leadership must be based around four key pillars: resource efficiency; R & D and innovation; social dialogue; sustainability and adaptation.

1.1.1.   Resource efficiency

Due to the fact that the sector’s products are used to hold, protect and preserve other consumables, and thereafter are often disposed of, the sector has a pivotal role to play in boosting the recycling rates of EU Member States. However, companies still need support in achieving this goal and the EESC believes that the European Commission could provide assistance on this issue, giving more information about best practices and the best use of available resources. This can also be done by supporting respect for environmental issues by all stakeholders, including those with operations based outside Europe. Resource efficiency is a crucial element in the packaging process and is also an environmental concern. The EESC believes that the EC could develop a policy framework to support the transition needed to achieve the goals of the Europe 2020 strategy and renew and sustain an environmentally conscious packaging industry.

1.1.2.   Challenges

The EESC is aware of the challenges for industry resulting from rising energy prices, not only as regards its day-to-day performance but also the recycling process. The EESC would point out that the recycling process crucial for the packaging industry is organised inside, but also outside the European Union. The EESC believes that the balanced price energy issue should be a policy priority for the EU regarding this specific industry.

To further contribute to the EU’s carbon emission targets, each sector of the industry should set realistic targets for recycling, in line with those defined in EU law (the Packaging and Packaging Waste Directive and the Waste Framework Directive) associated with the Europe 2020 strategy and thereafter provide annual statements to measure progress. Despite the efforts of each Member State to provide data, which is published annually by Eurostat, there is still a missing element in data assessment. The EESC believes that the practice of using more packaging material than necessary is wasteful and should be challenged by industry and also be part of the consumers’ conscience. A public awareness campaign might be an option also to boost the ‘essential requirements’ defined by the Packaging and Packaging Waste Directive regarding ‘overpackaging’. By way of an example, the Commission should set a precise timetable with a view to calling for a total ban on disposable plastic bags and the promotion of reusable or biodegradable bags. This timetable should include social-partner consultation phases and measures to support the transformation of the sector.

1.1.3.   Research and Development and innovation

It is clear from the research undertaken for this opinion and from discussions with stakeholders and the Commission that there is insufficient data available on a number of crucial issues. The Commission’s support would be welcome therefore in organising an improved methodology for the collection of sector data, in order to provide the social partners with relevant information to ensure the sector’s long-term viability. The EESC believes that key R & D challenges for the sector are also significant and include the efficient transport of goods, the effectiveness of traceability systems, cost reduction, and regulatory and safety issues, along with eco-design and life cycle package performance. The EESC considers that with these specific needs and approach, it is very important that the innovation Horizon 2020 funds be a priority and an opportunity for the packaging industry. The ability to participate in European consortia in order to boost innovation activities must be encouraged by sector associations and by the usual stakeholders.

The EESC believes that the ongoing investment required to meet all of the existing challenges is critical. It is crucial for the sector’s long-term survival that capital investment takes place in conjunction with investment in the sector’s workforce. This requires proper planning and dialogue between workers, employers, governments, European institutions and wider societal stakeholders, including national education infrastructures.

It is clear that the packaging industry is evolving under pressure from new trends such as e-commerce. The growth of e-commerce was demonstrated by findings of the 2013 Eurobarometer survey that almost half of Europe’s citizens had made online purchases in the previous six months (1). The Commission states that e-commerce ‘is an important driver for development with a potential for economic growth and rising employment estimated at over 10 % between 2013 and 2016’ (2). This evolution might be an incentive to implement new solutions aimed at reducing waste materials such as cardboard and plastic, and R & D activities must keep these trends in mind.

Innovation in the packaging industry has also proved to be an opportunity in terms of youth employment. Industrial designers, materials engineers and other new professions can find a wide range of opportunities in the future market. The EESC sees an opportunity for innovation in sectors where the packaging is extensively used, in terms of sustainability and design.

1.1.4.   Civil engagement, workforce social dialogue, sustainability and adaptation

The EESC considers that the critical challenge for the European sector’s employers and workforce is to ensure that the industry maintains a competitive edge, fully utilises technological innovations and produces high quality, sustainable goods. The EESC also believes that the new skills involved in the future of the sector must be identified by stakeholders in order to adapt education systems to this vital challenge. New trends such as online sales create challenges that should be examined thoroughly and their influence and impact assessed.

The EESC concludes that the majority of packaging companies and their workforces are willing to adapt to change, but more information is required to enable the parties to make the right decisions for the sector and employment. This adaptation to changes in the market should be done in a way that respects workers but also keeps in mind the threat of rapid change and relocation.

The EESC believes that the discussion for sector sustainability must be achieved through civil-society and social dialogue at national and European level. The creation of a Sectoral Social Dialogue Committee (SSDC) for the packaging industry could provide such an opportunity.

2.   Introduction

The main objective of this document is to inform the European institutions of a number of recommendations which the EESC/CCMI consider to be critical for boosting the European economy and the packaging sector in particular. Europe must lead the way and support positive legislative compliance to support the economy, that is carried out in a sustainable way with a view to improving the internal market: confidence and compliance with legal requirements should be paramount, not protection.

| 2.1. | The packaging industry serves a wide variety of purposes in our daily lives: protection (prevents breakages, spoilage and contamination, increases shelf-life); promotion (product ingredients, features, promotional messages and branding); information (product identification, preparation and usage, nutritional and storage data, safety warnings, contact information, opening instructions, end-of-life management); convenience (product preparation, serving, storage and portioning); utilisation (provision to consumer, retail and transport units); handling (transport from producer to retailer, point of sale display); and waste reduction (processing, re-use of by-products, storage and transport energy). |
| --- | --- |

2.1.

The packaging industry serves a wide variety of purposes in our daily lives: protection (prevents breakages, spoilage and contamination, increases shelf-life); promotion (product ingredients, features, promotional messages and branding); information (product identification, preparation and usage, nutritional and storage data, safety warnings, contact information, opening instructions, end-of-life management); convenience (product preparation, serving, storage and portioning); utilisation (provision to consumer, retail and transport units); handling (transport from producer to retailer, point of sale display); and waste reduction (processing, re-use of by-products, storage and transport energy).

| 2.2. | Given the immense variety that exists within the sector, the packaging industry necessarily requires a vast and varied approach. As a valuable sector, it is necessary to adopt a careful attitude which takes account of its diversity, the need to comply with rules and legislation and, of course, the competitiveness of the sector. |
| --- | --- |

2.2.

Given the immense variety that exists within the sector, the packaging industry necessarily requires a vast and varied approach. As a valuable sector, it is necessary to adopt a careful attitude which takes account of its diversity, the need to comply with rules and legislation and, of course, the competitiveness of the sector.

| 2.3. | While there are a number of critical concerns common to most sectors, individual subsectors naturally face their own set of specific problems. This is due to the fact that specific products are subject to different requirements, particularly in terms of standards and certifications. |
| --- | --- |

2.3.

While there are a number of critical concerns common to most sectors, individual subsectors naturally face their own set of specific problems. This is due to the fact that specific products are subject to different requirements, particularly in terms of standards and certifications.

| 2.4. | The use of packaging to communicate innovation and quality is an opportunity for Europe. To this end, several measures aim to identify clearly the quality and innovation of the products contained in a given package. This is a never-ending challenge that is crucial for differentiating EU products from those originating in other parts of the world. |
| --- | --- |

2.4.

The use of packaging to communicate innovation and quality is an opportunity for Europe. To this end, several measures aim to identify clearly the quality and innovation of the products contained in a given package. This is a never-ending challenge that is crucial for differentiating EU products from those originating in other parts of the world.

| 2.5. | The EESC believes that there are two further issues that are also vital for this discussion: the logistical aspect of the packaging industry and access to the raw materials used by the sector.
  In light of these two issues, it is easy to see just why the challenges facing the European packaging industry are so enormous.
  The main objective of this document is to inform the European institutions of a number of recommendations which the EESC/CCMI consider to be critical for boosting the European economy in general and the packaging sector in particular. As in other areas, Europe must once again lead the way and call for compliance with rules and legislation that genuinely help the economy and that are carried out in a sustainable manner with a view to boosting the internal market: confidence and compliance with legal requirements should be the watchwords, not protection. |
| --- | --- |

2.5.

The EESC believes that there are two further issues that are also vital for this discussion: the logistical aspect of the packaging industry and access to the raw materials used by the sector.

In light of these two issues, it is easy to see just why the challenges facing the European packaging industry are so enormous.

The main objective of this document is to inform the European institutions of a number of recommendations which the EESC/CCMI consider to be critical for boosting the European economy in general and the packaging sector in particular. As in other areas, Europe must once again lead the way and call for compliance with rules and legislation that genuinely help the economy and that are carried out in a sustainable manner with a view to boosting the internal market: confidence and compliance with legal requirements should be the watchwords, not protection.

| 2.6. | The specific case of the materials used is a critical issue that requires careful analysis in order to respect the open market and ensure a level playing field for all market players. |
| --- | --- |

2.6.

The specific case of the materials used is a critical issue that requires careful analysis in order to respect the open market and ensure a level playing field for all market players.

| 2.7. | The EESC considers that establishing a coordinated and inclusive dialogue between sector stakeholders will ensure that the sector remains sustainable and provides decent employment in the long term and is better able to cope with change and adapt to the needs of consumers and wider societal demands. In this respect, social dialogue’s potential to strengthen the sector is not being fully realised and this needs to be addressed urgently. |
| --- | --- |

2.7.

The EESC considers that establishing a coordinated and inclusive dialogue between sector stakeholders will ensure that the sector remains sustainable and provides decent employment in the long term and is better able to cope with change and adapt to the needs of consumers and wider societal demands. In this respect, social dialogue’s potential to strengthen the sector is not being fully realised and this needs to be addressed urgently.

| 2.8. | If the sector needs to adapt to change and transform to meet market requirements, the only way to achieve sustainability and equitable remedies is through a multi-channel approach to stakeholder engagement. In order to address issues related to the sector, its structure, competitiveness and related issues such as employment, skills, adaptation and the future viability of the sector and its workforce, properly structured and organised social dialogue should be encouraged by the Commission. In addition, to provide a platform for the expression of interests by a wider audience (i.e. society and consumers, workers, employers, governments, etc.), a channel of two-way communication between the various actors and institutions ought to be created. In this way, all concerned parties can be involved in the sector and in its broader and central role in society. |
| --- | --- |

2.8.

If the sector needs to adapt to change and transform to meet market requirements, the only way to achieve sustainability and equitable remedies is through a multi-channel approach to stakeholder engagement. In order to address issues related to the sector, its structure, competitiveness and related issues such as employment, skills, adaptation and the future viability of the sector and its workforce, properly structured and organised social dialogue should be encouraged by the Commission. In addition, to provide a platform for the expression of interests by a wider audience (i.e. society and consumers, workers, employers, governments, etc.), a channel of two-way communication between the various actors and institutions ought to be created. In this way, all concerned parties can be involved in the sector and in its broader and central role in society.

3.   Analysis/framework

| 3.1. | The European packaging sector encompasses a broad range of activities and although it shares similar problems with other industries, the sector faces a number of unique and significant challenges at the present and in the short to medium term. The packaging sector comprises glass, metal, plastic, wood and paper packaging companies which, in total, employ over 6,5 million people in Europe (3) (Eurostat). |
| --- | --- |

3.1.

The European packaging sector encompasses a broad range of activities and although it shares similar problems with other industries, the sector faces a number of unique and significant challenges at the present and in the short to medium term. The packaging sector comprises glass, metal, plastic, wood and paper packaging companies which, in total, employ over 6,5 million people in Europe (3) (Eurostat).

| 3.2. | The packaging sector represents not only a diverse range of products, but also a variety of different processes that are distinct and which are utilised to create products for specific markets and particular uses, each requiring different environments and producing a variety of challenges and characteristics.
  For instance, energy use is a significant cost factor for glass packaging companies. Moreover, since up to 80 % of waste glass packaging is recycled, glass recycling is a significant contributor to the EU targets for recycling and lowering the region’s carbon footprint. |
| --- | --- |

3.2.

The packaging sector represents not only a diverse range of products, but also a variety of different processes that are distinct and which are utilised to create products for specific markets and particular uses, each requiring different environments and producing a variety of challenges and characteristics.

For instance, energy use is a significant cost factor for glass packaging companies. Moreover, since up to 80 % of waste glass packaging is recycled, glass recycling is a significant contributor to the EU targets for recycling and lowering the region’s carbon footprint.

| 3.3. | The connection between the materials used for packaging is also an important aspect and the increased transport costs for the transit of materials, such as corrugated board and tubes to be used for packaging, has had a negative effect on the packaging sector. Thus, the impact of energy costs throughout the sector’s supply chain — note the distance that products, such as printed material, travel before they are used by packaging companies — is passed on to the packaging sector. |
| --- | --- |

3.3.

The connection between the materials used for packaging is also an important aspect and the increased transport costs for the transit of materials, such as corrugated board and tubes to be used for packaging, has had a negative effect on the packaging sector. Thus, the impact of energy costs throughout the sector’s supply chain — note the distance that products, such as printed material, travel before they are used by packaging companies — is passed on to the packaging sector.

| 3.4. | Metal can be recycled over and over again without any diminution in quality, which creates additional value to the sector’s contribution to the EU recycling targets. |
| --- | --- |

3.4.

Metal can be recycled over and over again without any diminution in quality, which creates additional value to the sector’s contribution to the EU recycling targets.

| 3.5. | Container glass is used to produce bottles and jars and other packaging products and is the largest sector in the EU glass industry, representing about 60 % of total glass production and employing 90  000 people in the EU (Eurostat). Employment in the glass sector overall has declined due to increased automation, industry consolidation and low-cost competition. Imports from outside the EU provide increasing competition and there has been a rise in the number of production plants in countries close to or bordering the EU with lower labour costs and laxer regulations; this creates short-term excess capacity and puts pressure on prices.
  France, Germany and Italy are the largest producers in the EU, accounting the next largest producers in the EU. Glass is a resource efficient material and can be recycled an infinite number of times. For instance, energy use is a significant cost factor for glass packaging companies and less so for others. As up to 80 % of waste glass packaging is recycled, glass recycling is a significant contributor to the EU targets for recycling and lowering the region’s carbon footprint. However, due to the materials they use and the products produced, other segments of the sector will rely to a lesser extent on energy. |
| --- | --- |

3.5.

Container glass is used to produce bottles and jars and other packaging products and is the largest sector in the EU glass industry, representing about 60 % of total glass production and employing 90  000 people in the EU (Eurostat). Employment in the glass sector overall has declined due to increased automation, industry consolidation and low-cost competition. Imports from outside the EU provide increasing competition and there has been a rise in the number of production plants in countries close to or bordering the EU with lower labour costs and laxer regulations; this creates short-term excess capacity and puts pressure on prices.

France, Germany and Italy are the largest producers in the EU, accounting the next largest producers in the EU. Glass is a resource efficient material and can be recycled an infinite number of times. For instance, energy use is a significant cost factor for glass packaging companies and less so for others. As up to 80 % of waste glass packaging is recycled, glass recycling is a significant contributor to the EU targets for recycling and lowering the region’s carbon footprint. However, due to the materials they use and the products produced, other segments of the sector will rely to a lesser extent on energy.

| 3.6. | If we consider the use of paper or similar materials, the sector’s supply chain is complicated by the fact that the companies responsible for processing paper and paperboard packaging — for products such as cartons, corrugated cardboard, boxboard and containerboard — tend to produce paper themselves and are part of a circular process involving the pulping and de-inking of used materials as well as the use of raw products from wood. |
| --- | --- |

3.6.

If we consider the use of paper or similar materials, the sector’s supply chain is complicated by the fact that the companies responsible for processing paper and paperboard packaging — for products such as cartons, corrugated cardboard, boxboard and containerboard — tend to produce paper themselves and are part of a circular process involving the pulping and de-inking of used materials as well as the use of raw products from wood.

| 3.7. | On the other hand, plastic packaging also has its specific features: not all packaging subsectors are represented by several industry bodies. Plastic packaging supplies markets other than those mentioned above — with end-users such as car manufacturers, cosmetics companies and companies producing health products and containers for pre-packed food. Yet there is just one single industry association for this subsector. Plastic packaging is also linked to environmental issues, such as the production of plastic bags for shopping and the difficulties associated with their disposal and the decomposition of their constituent components. |
| --- | --- |

3.7.

On the other hand, plastic packaging also has its specific features: not all packaging subsectors are represented by several industry bodies. Plastic packaging supplies markets other than those mentioned above — with end-users such as car manufacturers, cosmetics companies and companies producing health products and containers for pre-packed food. Yet there is just one single industry association for this subsector. Plastic packaging is also linked to environmental issues, such as the production of plastic bags for shopping and the difficulties associated with their disposal and the decomposition of their constituent components.

| 3.8. | In this scenario, this variety of production processes has created a plethora of business representative bodies, which in itself creates barriers to cooperation between companies and worker representatives over such significant issues as environmental sustainability and change management. The segmented nature of packaging subsectors, such as metal packagers, is demonstrated by the large number of trade representative bodies. For example, the producers of aluminium are often the same companies that produce aluminium packaging and have their own trade organisation (European Aluminium Association). However, specialists in metal packaging that produce beverage cans (made of steel and aluminium) have their own trade organisation; and for packaging companies specialising in steel products, there is yet another trade association. |
| --- | --- |

3.8.

In this scenario, this variety of production processes has created a plethora of business representative bodies, which in itself creates barriers to cooperation between companies and worker representatives over such significant issues as environmental sustainability and change management. The segmented nature of packaging subsectors, such as metal packagers, is demonstrated by the large number of trade representative bodies. For example, the producers of aluminium are often the same companies that produce aluminium packaging and have their own trade organisation (European Aluminium Association). However, specialists in metal packaging that produce beverage cans (made of steel and aluminium) have their own trade organisation; and for packaging companies specialising in steel products, there is yet another trade association.

| 3.9. | Due to the sector’s importance, both in terms of its contribution to GDP and employment, these sector-specific issues require particular attention. However, being such a segmented sector, the packaging industry serves the needs of upstream businesses right across economies, and far beyond its traditional markets. |
| --- | --- |

3.9.

Due to the sector’s importance, both in terms of its contribution to GDP and employment, these sector-specific issues require particular attention. However, being such a segmented sector, the packaging industry serves the needs of upstream businesses right across economies, and far beyond its traditional markets.

| 3.10. | Product packaging serves a number of needs and covers issues such as product protection (prevention of breakage, spoilage and contamination), promotional information (product identification, branding, preparation, usage, nutritional and safety information), information on handling (transportation and point of sale display), reducing packaging waste (processing, storage and transport energy) and, important within the context of efforts to reduce carbon emissions, packaging design is an important aspect of maximising the space available for the transportation of goods. The role of packaging itself in reducing waste has become relevant as online companies, such as Amazon, have become very large users of packaging and the question of ‘the responsible party’ ought to be addressed.
  Amazon, for example, utilises certified ‘easy opening packaging’ systems. By eliminating plastic and straps, since 2008, Amazon has radically changed its approach for 2 00  000 products from 2  000 manufactures, thereby reducing cardboard consumption by 5,4 million square metres, the generic materials by 11  203,7 tons and the total volume of boxes by 410 thousand cubic metres. In reality, the consumer bears the ultimate responsibility for waste packaging, but the producer, or intermediate user, ought to have an interest in the amount of packaging which eventually becomes waste. |
| --- | --- |

3.10.

Product packaging serves a number of needs and covers issues such as product protection (prevention of breakage, spoilage and contamination), promotional information (product identification, branding, preparation, usage, nutritional and safety information), information on handling (transportation and point of sale display), reducing packaging waste (processing, storage and transport energy) and, important within the context of efforts to reduce carbon emissions, packaging design is an important aspect of maximising the space available for the transportation of goods. The role of packaging itself in reducing waste has become relevant as online companies, such as Amazon, have become very large users of packaging and the question of ‘the responsible party’ ought to be addressed.

Amazon, for example, utilises certified ‘easy opening packaging’ systems. By eliminating plastic and straps, since 2008, Amazon has radically changed its approach for 2 00  000 products from 2  000 manufactures, thereby reducing cardboard consumption by 5,4 million square metres, the generic materials by 11  203,7 tons and the total volume of boxes by 410 thousand cubic metres. In reality, the consumer bears the ultimate responsibility for waste packaging, but the producer, or intermediate user, ought to have an interest in the amount of packaging which eventually becomes waste.

| 3.11. | The issues referred to below require thorough examination to provide an overall understanding of the current state of play and to produce potential solutions to ensure that the European packaging sector remains competitive and sustainable from an environmental point of view and provides decent employment for the thousands of workers dependent on it. |
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3.11.

The issues referred to below require thorough examination to provide an overall understanding of the current state of play and to produce potential solutions to ensure that the European packaging sector remains competitive and sustainable from an environmental point of view and provides decent employment for the thousands of workers dependent on it.

| 3.12. | Any change in the availability of raw materials will influence both the price and availability of finished packaging products, and has the potential to seriously disrupt the sector’s activities. Consequently, an examination of the drivers and trends of raw materials ought to be undertaken to enable the industry to anticipate future change without the associated and potential disruption. The metal packaging sector, for example, is particularly under pressure from both sharp increases in the cost of raw materials and energy prices. |
| --- | --- |

3.12.

Any change in the availability of raw materials will influence both the price and availability of finished packaging products, and has the potential to seriously disrupt the sector’s activities. Consequently, an examination of the drivers and trends of raw materials ought to be undertaken to enable the industry to anticipate future change without the associated and potential disruption. The metal packaging sector, for example, is particularly under pressure from both sharp increases in the cost of raw materials and energy prices.

| 3.13. | In 2012, the Commission launched the European Innovation Partnership on Raw Materials, with the aim of addressing the challenges associated with the supply of wood-based and mineral raw materials. |
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3.13.

In 2012, the Commission launched the European Innovation Partnership on Raw Materials, with the aim of addressing the challenges associated with the supply of wood-based and mineral raw materials.

| 3.14. | Demand, mainly from Asia, has driven up the price of secondary raw materials for paper packaging, the producers of which are unable to simply pass on these additional costs to their customers. Chinese demand has contributed heavily to the increase in the price of recycled materials for paper packaging (the price of recovered paper has almost doubled since 2006, while in the same period the price of recycled paper has increased by almost 50 %). These increases are likely to continue in the foreseeable future. |
| --- | --- |

3.14.

Demand, mainly from Asia, has driven up the price of secondary raw materials for paper packaging, the producers of which are unable to simply pass on these additional costs to their customers. Chinese demand has contributed heavily to the increase in the price of recycled materials for paper packaging (the price of recovered paper has almost doubled since 2006, while in the same period the price of recycled paper has increased by almost 50 %). These increases are likely to continue in the foreseeable future.

4.   Sector demands and trends

| 4.1. | According to Eurostat metal packaging (comprising steel and aluminium) for the packaging industry employs around 60  000 people in Europe, out of a total of 3 55  000 in the European steel industry, and Metal Packaging for Europe estimates that 80  000 people are employed in the aluminium industry, extending to 2 55  000 employed throughout the entire European aluminium value chain. However the sector has suffered, and continues to suffer, job losses, either as a result of consolidation in the sector or from overseas competition (4). |
| --- | --- |

4.1.

According to Eurostat metal packaging (comprising steel and aluminium) for the packaging industry employs around 60  000 people in Europe, out of a total of 3 55  000 in the European steel industry, and Metal Packaging for Europe estimates that 80  000 people are employed in the aluminium industry, extending to 2 55  000 employed throughout the entire European aluminium value chain. However the sector has suffered, and continues to suffer, job losses, either as a result of consolidation in the sector or from overseas competition (4).

| 4.2. | The challenge for the sector’s employers and workforce in Europe is to ensure that the sector maintains its competitive edge, fully utilises technological innovations and produces goods that are environmentally sustainable and of a high quality. |
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4.2.

The challenge for the sector’s employers and workforce in Europe is to ensure that the sector maintains its competitive edge, fully utilises technological innovations and produces goods that are environmentally sustainable and of a high quality.

| 4.3. | Competition from overseas continues to exert downward pressure on the working conditions of the sector’s workforce — those we rely upon to create wealth, utilise innovative technologies and, fundamentally, to maintain the sector’s operation and sustainable future for future generations. |
| --- | --- |

4.3.

Competition from overseas continues to exert downward pressure on the working conditions of the sector’s workforce — those we rely upon to create wealth, utilise innovative technologies and, fundamentally, to maintain the sector’s operation and sustainable future for future generations.

| 4.4. | The European packaging sector continues to suffer from over-capacity and this compounds the impact of overseas competition and acts as a dampener on wages and working conditions. The downward trend in employment in the sector illustrates the impact of both competition and over-capacity. |
| --- | --- |

4.4.

The European packaging sector continues to suffer from over-capacity and this compounds the impact of overseas competition and acts as a dampener on wages and working conditions. The downward trend in employment in the sector illustrates the impact of both competition and over-capacity.

| 4.5. | The packaging sector has the potential to provide wider benefits to Europe’s economies due to its capacity to recycle materials. More and more packaging materials are either being recycled or are themselves products of recycled materials from other manufacturing sectors. The environmental benefits of recycling are obvious enough, and are featured regularly in Commission documents. However, the packaging sector can improve the recycling rates of Member States. At the same time, it has the potential to close the loop of the circular economy by preventing the export of dubious waste materials and denying access to European markets to importers of packaging which does not comply with environmental best practice (5). Metal and aluminium packaging companies, whose products represent 16 % of the total volume of aluminium products in Europe, rely both on the extraction of the raw material (Bauxite) and the recycling of scrap metal. |
| --- | --- |

4.5.

The packaging sector has the potential to provide wider benefits to Europe’s economies due to its capacity to recycle materials. More and more packaging materials are either being recycled or are themselves products of recycled materials from other manufacturing sectors. The environmental benefits of recycling are obvious enough, and are featured regularly in Commission documents. However, the packaging sector can improve the recycling rates of Member States. At the same time, it has the potential to close the loop of the circular economy by preventing the export of dubious waste materials and denying access to European markets to importers of packaging which does not comply with environmental best practice (5). Metal and aluminium packaging companies, whose products represent 16 % of the total volume of aluminium products in Europe, rely both on the extraction of the raw material (Bauxite) and the recycling of scrap metal.

| 4.6. | The protection of consumers, by providing critical product information or advice regarding product usage, is also a significant and important aspect of the European packaging industry. Consumers rightly expect packaging to protect the goods they buy and, in the case of food and drink, to preserve and prevent health risks associated with contaminated foodstuffs. Retailers have similar expectations but, in addition, the packaging of the goods they sell ought to maximise the shelf life of a product. |
| --- | --- |

4.6.

The protection of consumers, by providing critical product information or advice regarding product usage, is also a significant and important aspect of the European packaging industry. Consumers rightly expect packaging to protect the goods they buy and, in the case of food and drink, to preserve and prevent health risks associated with contaminated foodstuffs. Retailers have similar expectations but, in addition, the packaging of the goods they sell ought to maximise the shelf life of a product.

| 4.7. | The future shape and structure of the industry is, to a lesser or greater extent, dependent on innovation and investment in technology: 3D printing, for example, offers an opportunity to the sector and consumers but the success of its introduction and operation in the sector will rely heavily on cooperation within the sector and the expectations of consumers. The industry must take advantage of the available technologies and adjust, through proper dialogue. |
| --- | --- |

4.7.

The future shape and structure of the industry is, to a lesser or greater extent, dependent on innovation and investment in technology: 3D printing, for example, offers an opportunity to the sector and consumers but the success of its introduction and operation in the sector will rely heavily on cooperation within the sector and the expectations of consumers. The industry must take advantage of the available technologies and adjust, through proper dialogue.

| 4.8. | Good practice, to transform the sector and to adapt to change, is continuously developing but requires the assistance of the European institutions to maximise its potential. The EU may offer assistance, in terms of financial support or the creation of a forum to further develop discussions among the social partners, and the sector ought to engage with the EU in this process. |
| --- | --- |

4.8.

Good practice, to transform the sector and to adapt to change, is continuously developing but requires the assistance of the European institutions to maximise its potential. The EU may offer assistance, in terms of financial support or the creation of a forum to further develop discussions among the social partners, and the sector ought to engage with the EU in this process.

| 4.9. | Sustainable and workable solutions will only be achieved if the two sides of industry work together and social dialogue at national and European level provides such an opportunity. Therefore the creation of a Sectorial Social Dialogue Committee for the Packaging Sector is essential to begin tackling a number of the issues raised in this document. |
| --- | --- |

4.9.

Sustainable and workable solutions will only be achieved if the two sides of industry work together and social dialogue at national and European level provides such an opportunity. Therefore the creation of a Sectorial Social Dialogue Committee for the Packaging Sector is essential to begin tackling a number of the issues raised in this document.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

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(1)  Eurobarometer 398 Internal Market (October 2013).

1

(2)  MEMO-13-1151, European Commission, quoted in Commission Communication ‘Roadmap for completing the single market for parcel delivery’ (COM(2013) 886 final).

2

(3)  7 00  000 direct employment.

3

(4)  Eurostat figures for the last decade show a steady reduction of employment in the manufacture of corrugated, plastic, metal, glass and wood packaging. Total employment in these packaging sub-sectors has fallen by 1,2 million since 2003.

4

(5)  Although legislation exists to ensure packaging materials comply with environmental standards, European packagers also follow a number of guidelines in order to reduce emissions and promote environmental best practice. Non-European competitors, although required to comply with European legislation, may not adhere to these voluntary codes or the standards followed by European companies.

5

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| 14.7.2015 | EN | Official Journal of the European Union | C 230/39 |
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14.7.2015

EN

Official Journal of the European Union

C 230/39

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Opinion of the European Economic and Social Committee on the ‘Contribution of the woodworking sector to the carbon balance’

(own-initiative opinion)

(2015/C 230/06)

| Rapporteur: | Mr Ludvík JÍROVEC |
| --- | --- |
| Co-rapporteur: | Mr Patrizio PESCI |

Rapporteur:

Mr Ludvík JÍROVEC

Co-rapporteur:

Mr Patrizio PESCI

On 27 February 2014, the European Economic and Social Committee, acting under Rule 29(2) of its Rules of Procedure, decided to draw up an own-initiative opinion on the

Contribution of the woodworking sector to the carbon balance.

The Consultative Commission on Industrial Change (CCMI), which was responsible for preparing the Committee’s work on the subject, adopted its opinion on 13 November 2014.

At its 503rd plenary session, held on 10 and 11 December 2014 (meeting of 10 December), the European Economic and Social Committee adopted the following opinion by 119 votes to 1, with 5 abstentions.

1.   Conclusions and recommendations

| 1.1. | In order to maximise the benefits offered by wood products in the carbon balance and to enhance the competitiveness of the European woodworking industry (1) and its capacity to drive innovation, the European Economic and Social Committee has drawn up the following recommendations. |
| --- | --- |

1.1.

In order to maximise the benefits offered by wood products in the carbon balance and to enhance the competitiveness of the European woodworking industry (1) and its capacity to drive innovation, the European Economic and Social Committee has drawn up the following recommendations.

| 1.2. | The EESC recognises that European and national legislation is having a big impact on the woodworking industries. For this reason, the EESC invites Member States to explore all opportunities related to using wood as an environmentally-friendly material in order to boost the competitiveness of this sector, promote employment and support investment in research and innovation. |
| --- | --- |

1.2.

The EESC recognises that European and national legislation is having a big impact on the woodworking industries. For this reason, the EESC invites Member States to explore all opportunities related to using wood as an environmentally-friendly material in order to boost the competitiveness of this sector, promote employment and support investment in research and innovation.

| 1.3. | The EESC calls on the European Commission, in consultation with interested stakeholders, to draw up European guidelines on wood supply in order to increase wood supply and promote sustainable use of wood sources. Resource efficiency principles should be included. The recommendations set out in the Good practice guidance on the sustainable mobilisation of wood in Europe (2010) should be taken into consideration and, if necessary, developed. |
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1.3.

The EESC calls on the European Commission, in consultation with interested stakeholders, to draw up European guidelines on wood supply in order to increase wood supply and promote sustainable use of wood sources. Resource efficiency principles should be included. The recommendations set out in the Good practice guidance on the sustainable mobilisation of wood in Europe (2010) should be taken into consideration and, if necessary, developed.

| 1.4. | The EESC recalls the importance of excluding ‘pallets and recovered post-consumer wood’ from the definition of ‘tertiary biomass.’ |
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1.4.

The EESC recalls the importance of excluding ‘pallets and recovered post-consumer wood’ from the definition of ‘tertiary biomass.’

| 1.5. | As pointed out in the EESC opinion on ‘Opportunities and challenges for a more competitive European woodworking and furniture sector’ adopted in October 2011 (2), and in line with the principles set out in the recent EU Communication on ‘Towards a circular economy: A zero waste programme for Europe’, the EESC highlights the fact that the ‘cascade use’ principle (use, reuse, recycling, energy recovery) — when economically and technically feasible in accordance with specific national and regional features — represents the optimal way to maximise the resource-efficient use of wood. The EESC is pleased that following its request to recognise the importance of the cascade principle of wood, this principle has been transposed into several EU documents such as the European Industrial Renaissance, the New EU Forest Strategy and the Commission staff working document on ‘A blueprint for the EU forest-based industries (woodworking, furniture, pulp & paper manufacturing and converting, printing)’ accompanying the Communication on ‘A new EU Forest Strategy: for forests and the forest-based sector’. However, the EESC cannot support the notion of legally binding rules and is in favour of an open market-based approach and the freedom of market participants. |
| --- | --- |

1.5.

As pointed out in the EESC opinion on ‘Opportunities and challenges for a more competitive European woodworking and furniture sector’ adopted in October 2011 (2), and in line with the principles set out in the recent EU Communication on ‘Towards a circular economy: A zero waste programme for Europe’, the EESC highlights the fact that the ‘cascade use’ principle (use, reuse, recycling, energy recovery) — when economically and technically feasible in accordance with specific national and regional features — represents the optimal way to maximise the resource-efficient use of wood. The EESC is pleased that following its request to recognise the importance of the cascade principle of wood, this principle has been transposed into several EU documents such as the European Industrial Renaissance, the New EU Forest Strategy and the Commission staff working document on ‘A blueprint for the EU forest-based industries (woodworking, furniture, pulp & paper manufacturing and converting, printing)’ accompanying the Communication on ‘A new EU Forest Strategy: for forests and the forest-based sector’. However, the EESC cannot support the notion of legally binding rules and is in favour of an open market-based approach and the freedom of market participants.

| 1.6. | Management options for building materials should include measures to avoid recycling materials, such as wood, going to landfills. The EESC calls on the EU Commission and the interested stakeholders to define guidelines and recommendations on wood waste collection and solutions for the treatment of post-consumer wood. |
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1.6.

Management options for building materials should include measures to avoid recycling materials, such as wood, going to landfills. The EESC calls on the EU Commission and the interested stakeholders to define guidelines and recommendations on wood waste collection and solutions for the treatment of post-consumer wood.

| 1.7. | The EESC calls on the EU Commission to introduce a norm that properly reflects the acoustic characteristics of enclosed spaces, given that that wood can play an essential role in acoustic insulation. In fact wood has the capacity to insulate rooms acoustically from external noises and to reduce reverberation time. Opportunities related to wood applications should be explored. |
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1.7.

The EESC calls on the EU Commission to introduce a norm that properly reflects the acoustic characteristics of enclosed spaces, given that that wood can play an essential role in acoustic insulation. In fact wood has the capacity to insulate rooms acoustically from external noises and to reduce reverberation time. Opportunities related to wood applications should be explored.

| 1.8. | The EESC calls upon the Member States and interested stakeholders to define national action plans designed to enhance the use of wood in buildings and green infrastructures. Local authorities should be directly involved in the implementation of these action plans. |
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1.8.

The EESC calls upon the Member States and interested stakeholders to define national action plans designed to enhance the use of wood in buildings and green infrastructures. Local authorities should be directly involved in the implementation of these action plans.

| 1.9. | Recognising that wood does not enjoy the same familiarity among builders and architects as other materials, the EESC invites Member States to set up initiatives in order to promote a wood culture. Moreover, the representatives of the European woodworking industries and the European social partners should define coordinated national campaigns in order to give a more attractive image of the sector. |
| --- | --- |

1.9.

Recognising that wood does not enjoy the same familiarity among builders and architects as other materials, the EESC invites Member States to set up initiatives in order to promote a wood culture. Moreover, the representatives of the European woodworking industries and the European social partners should define coordinated national campaigns in order to give a more attractive image of the sector.

2.   Description of the European woodworking sector. Challenges and opportunities. Possible impact of EU legislation on the competitiveness of the sector.

| 2.1. | The European woodworking industries generate an annual turnover of around 122 billion euros on a production value of over 115 billion euros. According to Eurostat, the woodworking industries consisted of more than 3 11  000 companies in 2012. About 1 26  000 companies were active in the furniture business as well. Within the woodworking industries stricto sensu, the sawmill industry accounted for roughly 40  000 companies, while the other sub-sectors of woodworking products counted some 1 45  000 companies. Despite improvements, these figures may not reflect the actual situation since small companies are not necessarily taken into account, depending on the Member State reporting. In the furniture and construction elements sectors, the number of small companies is considerable. Therefore, the real number of firms could be estimated at more than 3 75  000 companies. |
| --- | --- |

2.1.

The European woodworking industries generate an annual turnover of around 122 billion euros on a production value of over 115 billion euros. According to Eurostat, the woodworking industries consisted of more than 3 11  000 companies in 2012. About 1 26  000 companies were active in the furniture business as well. Within the woodworking industries stricto sensu, the sawmill industry accounted for roughly 40  000 companies, while the other sub-sectors of woodworking products counted some 1 45  000 companies. Despite improvements, these figures may not reflect the actual situation since small companies are not necessarily taken into account, depending on the Member State reporting. In the furniture and construction elements sectors, the number of small companies is considerable. Therefore, the real number of firms could be estimated at more than 3 75  000 companies.

| 2.2. | Throughout the EU, the woodworking sector has seen a steep fall in the number of jobs in 2012. The average fall amounted to 4,4 %, but the figures ranged from — 3,2 % in Germany to even — 13,7 % in Spain. Croatia and Denmark showed the biggest increases in the number of jobs while Spain (– 13,7 %), Cyprus (– 13,1 %) and Slovakia (– 11,5 %) experienced the biggest falls in 2012.
  European and national policies have a strong impact on the competitiveness of the woodworking sector. As highlighted in the EU Competitiveness Report 2014, production, labour and raw material costs tend to be much higher in Europe than in many other regions leading to a high risk of delocalisation for large parts of the sector. For this reason, Europe should demand that products entering the EU market have the same social, environmental and safety standards as the ones produced in Europe. Moreover, the EESC highlights the fact that Europe’s woodworking sector continues to face significant increases in production costs, especially as regards resins and energy. European energy costs are three times higher than in the USA. |
| --- | --- |

2.2.

Throughout the EU, the woodworking sector has seen a steep fall in the number of jobs in 2012. The average fall amounted to 4,4 %, but the figures ranged from — 3,2 % in Germany to even — 13,7 % in Spain. Croatia and Denmark showed the biggest increases in the number of jobs while Spain (– 13,7 %), Cyprus (– 13,1 %) and Slovakia (– 11,5 %) experienced the biggest falls in 2012.

European and national policies have a strong impact on the competitiveness of the woodworking sector. As highlighted in the EU Competitiveness Report 2014, production, labour and raw material costs tend to be much higher in Europe than in many other regions leading to a high risk of delocalisation for large parts of the sector. For this reason, Europe should demand that products entering the EU market have the same social, environmental and safety standards as the ones produced in Europe. Moreover, the EESC highlights the fact that Europe’s woodworking sector continues to face significant increases in production costs, especially as regards resins and energy. European energy costs are three times higher than in the USA.

| 2.3. | The development of renewable energy and related subsidies is reducing the availability of wood raw materials and is increasing their price. In 2012, approximately 15 % or 182 million cubic metres of the total wood harvested in the ECE region was estimated to have been wood fuel. From the most recent ECE/FAO Joint Wood Energy Enquiry (JWEE 2011), it appears that wood energy is the principal component of renewable energy, accounting for 38,4 % of all renewables. According to the recent European ‘Study on the wood raw material supply and demand for the EU wood-processing industries’ commissioned by the European Commission to Indufor (3), ‘the amount of wood used for energy purposes in the EU would be equivalent to today’s total wood harvested, were the renewable energy target to be achieved by 2020. By 2016, a shortfall of 63 Mm3 of wood vis-à-vis the wood requirements anticipated by EU Member States in their National Renewable Energy Action Plans will occur.’ |
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2.3.

The development of renewable energy and related subsidies is reducing the availability of wood raw materials and is increasing their price. In 2012, approximately 15 % or 182 million cubic metres of the total wood harvested in the ECE region was estimated to have been wood fuel. From the most recent ECE/FAO Joint Wood Energy Enquiry (JWEE 2011), it appears that wood energy is the principal component of renewable energy, accounting for 38,4 % of all renewables. According to the recent European ‘Study on the wood raw material supply and demand for the EU wood-processing industries’ commissioned by the European Commission to Indufor (3), ‘the amount of wood used for energy purposes in the EU would be equivalent to today’s total wood harvested, were the renewable energy target to be achieved by 2020. By 2016, a shortfall of 63 Mm3 of wood vis-à-vis the wood requirements anticipated by EU Member States in their National Renewable Energy Action Plans will occur.’

| 2.4. | Considering the new European Communication on the ‘energy and climate framework 2030’ and the demand of increasing the share of renewable energy to at least 27 % by 2030, the EESC considers it essential to consider various ways to improve wood mobilisation in the EU — for example by taking into account the recommendations in the Good practice guidance on the sustainable mobilisation of wood in Europe, which was published in 2010 — and to identify solutions for avoiding any distorted competition between the different users of biomass resources. |
| --- | --- |

2.4.

Considering the new European Communication on the ‘energy and climate framework 2030’ and the demand of increasing the share of renewable energy to at least 27 % by 2030, the EESC considers it essential to consider various ways to improve wood mobilisation in the EU — for example by taking into account the recommendations in the Good practice guidance on the sustainable mobilisation of wood in Europe, which was published in 2010 — and to identify solutions for avoiding any distorted competition between the different users of biomass resources.

| 2.5. | With this in mind, the EESC invites Member States to evaluate the amount of wood biomass in the country or region that is clearly available for energy use and the volumes the woodworking industry already uses as raw material. |
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2.5.

With this in mind, the EESC invites Member States to evaluate the amount of wood biomass in the country or region that is clearly available for energy use and the volumes the woodworking industry already uses as raw material.

| 2.6. | Moreover, the EESC deplores the persistence in several Member States of provisions limiting the use of wood in multi-storey buildings as well as discriminatory fire regulations. Fire regulations form the main obstacle to the use of wood in buildings in many countries. European standards for fire safety in buildings have been agreed, but fire safety will continue to be a national responsibility. These regulations should be removed immediately because they clearly represent market barriers to the expansion of wood products in the construction sector (4). |
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2.6.

Moreover, the EESC deplores the persistence in several Member States of provisions limiting the use of wood in multi-storey buildings as well as discriminatory fire regulations. Fire regulations form the main obstacle to the use of wood in buildings in many countries. European standards for fire safety in buildings have been agreed, but fire safety will continue to be a national responsibility. These regulations should be removed immediately because they clearly represent market barriers to the expansion of wood products in the construction sector (4).

| 2.7. | Finally, the EESC deplores the exclusion of the European wood-based panel and sawmill sectors from the list of sectors deemed vulnerable to carbon leakage any longer. The removal of these sectors from the list will most likely intensify the already ongoing delocalisation of the abovementioned manufacturing sectors to countries outside the EU. Keeping both sectors in the list is essential in order to limit the negative impact of the competitive pressure that all companies are suffering due to the tremendously increased wood costs caused by the competition with the biomass energy sector. From 2008 to 2013, the European wood-based panels sector alone closed 51 plants, which resulted in a capacity loss of 10  386 Mm3. Some of these closed lines have been dismantled and reassembled outside the European Union’s borders. Maintaining manufacturing industries within European borders must represent a priority for all policy makers and in particular for the European Commission. For this reason, the relevant general directorates of the EU Commission are urged to take measures in order to guarantee the competitiveness of the European industries and avoiding delocalisation of manufacturing sector. |
| --- | --- |

2.7.

Finally, the EESC deplores the exclusion of the European wood-based panel and sawmill sectors from the list of sectors deemed vulnerable to carbon leakage any longer. The removal of these sectors from the list will most likely intensify the already ongoing delocalisation of the abovementioned manufacturing sectors to countries outside the EU. Keeping both sectors in the list is essential in order to limit the negative impact of the competitive pressure that all companies are suffering due to the tremendously increased wood costs caused by the competition with the biomass energy sector. From 2008 to 2013, the European wood-based panels sector alone closed 51 plants, which resulted in a capacity loss of 10  386 Mm3. Some of these closed lines have been dismantled and reassembled outside the European Union’s borders. Maintaining manufacturing industries within European borders must represent a priority for all policy makers and in particular for the European Commission. For this reason, the relevant general directorates of the EU Commission are urged to take measures in order to guarantee the competitiveness of the European industries and avoiding delocalisation of manufacturing sector.

| 2.8. | One effective measure to ensure the competitiveness of European industry and to prevent the delocalisation of production could be a new energy/carbon tax which would stop the discrimination of European producers. |
| --- | --- |

2.8.

One effective measure to ensure the competitiveness of European industry and to prevent the delocalisation of production could be a new energy/carbon tax which would stop the discrimination of European producers.

3.   Enhancing the use of wood products for reducing CO2 emissions to fight climate change

| 3.1. | Global warming constitutes a major political concern. Indeed it seriously impacts human health and natural resources. The choices we make about the materials we use can have a significant effect on the carbon dioxide emissions that are one of the main causes of global warming. The terminology of ‘green’ and/or ‘environmentally-friendly’ products are assuming wider acceptance among producers and consumers. At the same time national and European policies are set in order to encourage these products. The EESC considers that the LCA (5) (Life-Cycle Assessments) represents the appropriate environmental management tool for the future. |
| --- | --- |

3.1.

Global warming constitutes a major political concern. Indeed it seriously impacts human health and natural resources. The choices we make about the materials we use can have a significant effect on the carbon dioxide emissions that are one of the main causes of global warming. The terminology of ‘green’ and/or ‘environmentally-friendly’ products are assuming wider acceptance among producers and consumers. At the same time national and European policies are set in order to encourage these products. The EESC considers that the LCA (5) (Life-Cycle Assessments) represents the appropriate environmental management tool for the future.

| 3.2. | Europe can drastically reduce CO2 emissions by increasing the carbon sink created by its forests (by optimising their management) and by enhancing the use of sustainably produced wood products. It is scientifically proven that the use of wood products in construction and everyday life has a positive effect on the climate. The amount of carbon stored in trees and related wood products depends on the tree species, growth conditions (environment), the age of a tree and the density of surrounding trees. Nevertheless, it has been demonstrated that substituting a cubic metre of wood for other construction materials results in a significant average of 0,75 to 1t in CO2 savings. Additionally, 1 m3 of wood stores 0,9 t of CO2. |
| --- | --- |

3.2.

Europe can drastically reduce CO2 emissions by increasing the carbon sink created by its forests (by optimising their management) and by enhancing the use of sustainably produced wood products. It is scientifically proven that the use of wood products in construction and everyday life has a positive effect on the climate. The amount of carbon stored in trees and related wood products depends on the tree species, growth conditions (environment), the age of a tree and the density of surrounding trees. Nevertheless, it has been demonstrated that substituting a cubic metre of wood for other construction materials results in a significant average of 0,75 to 1t in CO2 savings. Additionally, 1 m3 of wood stores 0,9 t of CO2.

| 3.3. | A recent Yale University-led study entitled ‘Carbon, fossil fuel and biodiversity mitigation with wood and forests’ (6) discovered that using more wood in building and bridge construction would substantially reduce global carbon dioxide emissions and fossil fuel consumption. The researchers found that increasing the use of wood products to the equivalent of 34 % would have profound and positive effects. Between 14 % and 31 % of global CO2 emissions could be avoided by storing CO2 in the cellulose and lignin of wood products. |
| --- | --- |

3.3.

A recent Yale University-led study entitled ‘Carbon, fossil fuel and biodiversity mitigation with wood and forests’ (6) discovered that using more wood in building and bridge construction would substantially reduce global carbon dioxide emissions and fossil fuel consumption. The researchers found that increasing the use of wood products to the equivalent of 34 % would have profound and positive effects. Between 14 % and 31 % of global CO2 emissions could be avoided by storing CO2 in the cellulose and lignin of wood products.

| 3.4. | The EESC calls on the European Commission to support Member States and the European forestry sector in identifying and putting in place measures and, possibly, incentives for the use of harvested wood products with long life cycles (7). The longer the wood is used and reused, the longer it locks in carbon dioxide. Wooden material waste (stricto senso) can be minimised mainly because all parts of wood can be used and reused efficiently, whereas it can ultimately always be burnt to recover its energy (8). If Europe wants to effectively tackle climate change, the Member States and European institutions should encourage the use of wood products and create a favourable political context in which the life cycle of wood is maximised. |
| --- | --- |

3.4.

The EESC calls on the European Commission to support Member States and the European forestry sector in identifying and putting in place measures and, possibly, incentives for the use of harvested wood products with long life cycles (7). The longer the wood is used and reused, the longer it locks in carbon dioxide. Wooden material waste (stricto senso) can be minimised mainly because all parts of wood can be used and reused efficiently, whereas it can ultimately always be burnt to recover its energy (8). If Europe wants to effectively tackle climate change, the Member States and European institutions should encourage the use of wood products and create a favourable political context in which the life cycle of wood is maximised.

4.   Wood in construction

| 4.1. | Constructing and operating buildings has significant environmental benefits. Globally, buildings are responsible for 20 % of all water consumption, 25 to 40 % of energy use, and 30 to 40 % of GHG emissions. The choice of products used to build or renovate has a significant impact on the environment. For this reason the EESC recognises that wood plays an important role in the development of sustainable and environmentally-friendly buildings. The opportunities relating to the use of wood in construction are not fully exploited and this affects the competitiveness of the woodworking industries. The EESC wants to analyse how to improve this situation without creating any detrimental effects for other materials. |
| --- | --- |

4.1.

Constructing and operating buildings has significant environmental benefits. Globally, buildings are responsible for 20 % of all water consumption, 25 to 40 % of energy use, and 30 to 40 % of GHG emissions. The choice of products used to build or renovate has a significant impact on the environment. For this reason the EESC recognises that wood plays an important role in the development of sustainable and environmentally-friendly buildings. The opportunities relating to the use of wood in construction are not fully exploited and this affects the competitiveness of the woodworking industries. The EESC wants to analyse how to improve this situation without creating any detrimental effects for other materials.

| 4.2. | Wood has long been recognised as an environmentally-friendly material for a wide variety of products. Life cycle assessment studies worldwide have proven that wood products offer great environmental advantages. Wood is one of the few 100 percent renewable building materials, it stores CO2 and it is a natural insulator due to air pockets within its cellular structure. It is a safe, sturdy and dependable material — even under high stress conditions such as hurricanes and earthquakes as well as during a fire. |
| --- | --- |

4.2.

Wood has long been recognised as an environmentally-friendly material for a wide variety of products. Life cycle assessment studies worldwide have proven that wood products offer great environmental advantages. Wood is one of the few 100 percent renewable building materials, it stores CO2 and it is a natural insulator due to air pockets within its cellular structure. It is a safe, sturdy and dependable material — even under high stress conditions such as hurricanes and earthquakes as well as during a fire.

| 4.3. | End-of-life management options for building materials include elements such as reuse, recycling and recovering. The present situation shows that a lot of construction waste still goes to landfills, increasing the burden on landfill loading and operation. Materials such as wood can be recycled directly into the same product for reuse or can be reconstituted into other usable products. The EESC points out that recycling requires reprocessing that is usually not economically feasible unless efficient collection is organised near the material source. For this reason, the EESC calls on the EU Commission and the stakeholders involved to collect all good practices existing at national level in order to define guidelines and recommendations on wood waste collection and solutions for the treatment of post-consumer wood. Reducing and recycling construction and demolition materials can reduce overall construction and disposal costs as well. |
| --- | --- |

4.3.

End-of-life management options for building materials include elements such as reuse, recycling and recovering. The present situation shows that a lot of construction waste still goes to landfills, increasing the burden on landfill loading and operation. Materials such as wood can be recycled directly into the same product for reuse or can be reconstituted into other usable products. The EESC points out that recycling requires reprocessing that is usually not economically feasible unless efficient collection is organised near the material source. For this reason, the EESC calls on the EU Commission and the stakeholders involved to collect all good practices existing at national level in order to define guidelines and recommendations on wood waste collection and solutions for the treatment of post-consumer wood. Reducing and recycling construction and demolition materials can reduce overall construction and disposal costs as well.

| 4.4. | The construction industry is the biggest user of wood products. In a country such as Finland, approximately 70-80 % of Finnish wood products end up being used in construction. Timber frame construction has recently gained ground in several European countries, most notably the UK, Ireland and France. Nevertheless, the EESC recognises that the use of wood can contribute to the development of the green economy and for this reason it should be promoted. |
| --- | --- |

4.4.

The construction industry is the biggest user of wood products. In a country such as Finland, approximately 70-80 % of Finnish wood products end up being used in construction. Timber frame construction has recently gained ground in several European countries, most notably the UK, Ireland and France. Nevertheless, the EESC recognises that the use of wood can contribute to the development of the green economy and for this reason it should be promoted.

| 4.5. | The EESC recognises that knowledge of the advantages of using wood in construction is rather limited. This is not only the case for architects; end-users too often do not know enough about wood properties. This limited knowledge often leads to the limited utilisation of wood and consequently to problems that negatively affect the image of wood. Moreover, the lack of skilled workers in timber frame housing construction curtails the development of this construction method in many European countries. |
| --- | --- |

4.5.

The EESC recognises that knowledge of the advantages of using wood in construction is rather limited. This is not only the case for architects; end-users too often do not know enough about wood properties. This limited knowledge often leads to the limited utilisation of wood and consequently to problems that negatively affect the image of wood. Moreover, the lack of skilled workers in timber frame housing construction curtails the development of this construction method in many European countries.

| 4.6. | The EESC calls on the European woodworking industries and the related social partners to set up coordinated information campaigns in order to give a more attractive image of the sector. Young people should be encouraged to choose education and training schemes which properly prepare them for a career in the woodworking industry. |
| --- | --- |

4.6.

The EESC calls on the European woodworking industries and the related social partners to set up coordinated information campaigns in order to give a more attractive image of the sector. Young people should be encouraged to choose education and training schemes which properly prepare them for a career in the woodworking industry.

5.   Social aspects related to enhancing the use of wooden materials and enforcing the role of the woodworking industries in the economy
   (9)

| 5.1. | The EESC highlights the fact that most woodworkers are trained on the job, picking up skills informally from experienced workers. Most woodworkers learn basic machine operations and job tasks in a few months, but becoming a skilled woodworker often requires two or more years. Employment is also created by providing workers with training and education adapted to the needs and demands of the labour market. Moreover, the EESC reiterates that research and innovation programmes will boost jobs and growth across the EU. For this reason the woodworking sector is encouraged to exploit the opportunities available under the Horizon 2020 programme. |
| --- | --- |

5.1.

The EESC highlights the fact that most woodworkers are trained on the job, picking up skills informally from experienced workers. Most woodworkers learn basic machine operations and job tasks in a few months, but becoming a skilled woodworker often requires two or more years. Employment is also created by providing workers with training and education adapted to the needs and demands of the labour market. Moreover, the EESC reiterates that research and innovation programmes will boost jobs and growth across the EU. For this reason the woodworking sector is encouraged to exploit the opportunities available under the Horizon 2020 programme.

| 5.2. | The recent EU Communication on Resource efficiency in the building sector should be ambitiously implemented by Member States in order to secure investments in renovation of buildings and create employment. |
| --- | --- |

5.2.

The recent EU Communication on Resource efficiency in the building sector should be ambitiously implemented by Member States in order to secure investments in renovation of buildings and create employment.

| 5.3. | The EESC recognises that acoustic noise in public areas has a serious impact on human health (10). Not only is wood an important environmentally-friendly material, but if used as insulation material it might have a number of social and health benefits. Indeed, wood can play an essential role in acoustic insulation and as an absorption material. Wood has the capacity to insulate rooms acoustically from external noises and to reduce reverberation time. The EESC calls on the EU Commission to introduce a norm that properly reflects the acoustic characteristics of enclosed spaces. Given that wood can produce sound (by direct striking) and can amplify or absorb sound waves originating from other bodies, opportunities related to wood applications should be explored. Wood also has a scientifically proven positive impact on indoor air quality/comfort. |
| --- | --- |

5.3.

The EESC recognises that acoustic noise in public areas has a serious impact on human health (10). Not only is wood an important environmentally-friendly material, but if used as insulation material it might have a number of social and health benefits. Indeed, wood can play an essential role in acoustic insulation and as an absorption material. Wood has the capacity to insulate rooms acoustically from external noises and to reduce reverberation time. The EESC calls on the EU Commission to introduce a norm that properly reflects the acoustic characteristics of enclosed spaces. Given that wood can produce sound (by direct striking) and can amplify or absorb sound waves originating from other bodies, opportunities related to wood applications should be explored. Wood also has a scientifically proven positive impact on indoor air quality/comfort.

| 5.4. | At national level, there are several initiatives for educating people about the opportunities for using wood as an environmentally-friendly material, but real coordination is lacking. The growing consumption of wood products is clearly related to information campaigns that should be carried out at national level. The main objective of educational campaigns about wood is to create positive attitudes — technical and cultural — in favour of the use of wood. |
| --- | --- |

5.4.

At national level, there are several initiatives for educating people about the opportunities for using wood as an environmentally-friendly material, but real coordination is lacking. The growing consumption of wood products is clearly related to information campaigns that should be carried out at national level. The main objective of educational campaigns about wood is to create positive attitudes — technical and cultural — in favour of the use of wood.

| 5.5. | As an interesting example of good practice, the EESC would like to recall the initiative entitled ‘WOODDAYS’. The event (11) was launched on 21 March 2014 in Milan. It was a 10-day programme focused on growing cities and smart, resource-efficient urban densification with wood. The event was set up in order to position wood as a building material with hitherto unrecognised potential in a setting where timber construction will play a major role in the future — right in the heart of our cities. This event will be duplicated in other European cities: Bratislava, Ljubljana and Brussels. |
| --- | --- |

5.5.

As an interesting example of good practice, the EESC would like to recall the initiative entitled ‘WOODDAYS’. The event (11) was launched on 21 March 2014 in Milan. It was a 10-day programme focused on growing cities and smart, resource-efficient urban densification with wood. The event was set up in order to position wood as a building material with hitherto unrecognised potential in a setting where timber construction will play a major role in the future — right in the heart of our cities. This event will be duplicated in other European cities: Bratislava, Ljubljana and Brussels.

| 5.6. | The EESC would point out that the major green building programmes vary somewhat in their treatment of the use of wood products. While some focus on performance rather than the material used, other programmes place ‘restrictions’ on wood as an acceptable material (without any such ‘requirements’ for other building products). Increasing the use of wood would also impact the EU economy positively in a variety of ways. The EESC accordingly recommends setting mandatory targets for the use of wood in construction following France’s example. |
| --- | --- |

5.6.

The EESC would point out that the major green building programmes vary somewhat in their treatment of the use of wood products. While some focus on performance rather than the material used, other programmes place ‘restrictions’ on wood as an acceptable material (without any such ‘requirements’ for other building products). Increasing the use of wood would also impact the EU economy positively in a variety of ways. The EESC accordingly recommends setting mandatory targets for the use of wood in construction following France’s example.

6.   Wood mobilisation

| 6.1. | Increasing the use of wood in construction and in everyday life requires solutions and measures in order to enhance wood mobilisation (including solutions designed to recover more wood, wood products and residues from industrial and post-consumer waste, for reuse and recycling) and extend the life cycle of wooden products. |
| --- | --- |

6.1.

Increasing the use of wood in construction and in everyday life requires solutions and measures in order to enhance wood mobilisation (including solutions designed to recover more wood, wood products and residues from industrial and post-consumer waste, for reuse and recycling) and extend the life cycle of wooden products.

| 6.2. | A sustainable and continuous supply of wood raw material is crucial to maintaining a competitive wood products industry. The recommendations set out in the Good practice guidance on the sustainable mobilisation of wood in Europe (2010) should be taken into consideration and, if necessary, developed. |
| --- | --- |

6.2.

A sustainable and continuous supply of wood raw material is crucial to maintaining a competitive wood products industry. The recommendations set out in the Good practice guidance on the sustainable mobilisation of wood in Europe (2010) should be taken into consideration and, if necessary, developed.

| 6.3. | In recent years the wood supply has come under strong pressure, primarily due to European and national measures promoting the use of renewable energy sources, which have partly resulted in burning wood. The EESC recalls the importance of excluding ‘pallets and recovered post-consumer wood’ from the definition of ‘tertiary biomass.’ Such materials are a major raw material input into some of the product types manufactured by wood-based panel manufacturers and can, in some cases, account for up to 95 % of the wood input (12). |
| --- | --- |

6.3.

In recent years the wood supply has come under strong pressure, primarily due to European and national measures promoting the use of renewable energy sources, which have partly resulted in burning wood. The EESC recalls the importance of excluding ‘pallets and recovered post-consumer wood’ from the definition of ‘tertiary biomass.’ Such materials are a major raw material input into some of the product types manufactured by wood-based panel manufacturers and can, in some cases, account for up to 95 % of the wood input (12).

| 6.4. | The EESC would highlight here that the ‘cascade use’ principle (use, reuse, recycling, energy recovery) — when economically and technically feasible in accordance with specific national and regional peculiarities and the balance between wood demand and supply — will represent the optimal way to maximise the resource-efficient use of wood, the natural raw material. However, the EESC cannot support the notion of legally binding rules and is in favour of an open market-based approach and the freedom of market participants. Using wood in a ‘cascade use’ approach not only secures optimal economic usage of the raw material, it also provides important climate benefits through the continuous carbon storage and substitution effect, prior to its use as a source of energy. |
| --- | --- |

6.4.

The EESC would highlight here that the ‘cascade use’ principle (use, reuse, recycling, energy recovery) — when economically and technically feasible in accordance with specific national and regional peculiarities and the balance between wood demand and supply — will represent the optimal way to maximise the resource-efficient use of wood, the natural raw material. However, the EESC cannot support the notion of legally binding rules and is in favour of an open market-based approach and the freedom of market participants. Using wood in a ‘cascade use’ approach not only secures optimal economic usage of the raw material, it also provides important climate benefits through the continuous carbon storage and substitution effect, prior to its use as a source of energy.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

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(1)  The EESC follows the definition of ‘woodworking sector’ provided by the European Classification of Economic Activities (NACE) in Code C16: Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials. Sawmilling and planing of wood. Manufacture of products of wood, cork, straw and plaiting materials. Manufacture of veneer sheets and wood-based panels. Manufacture of assembled parquet floors. Manufacture of other builders’ carpentry and joinery. Manufacture of wooden containers. Manufacture of other products of wood; manufacture of articles of cork, straw and plaiting materials.

1

(2)  Opinion of the European Economic and Social Committee on ‘Opportunities and challenges for a more competitive European woodworking and furniture sector’ (own-initiative opinion) (OJ C 24, 28.1.2012, p. 18).

2

(3)  Indufor is an independent international consulting group with companies in Finland and New Zealand. It provides advisory services to both private and public clients. Their approach encompasses all aspects of sustainable development — economic, social and environmental. Their scope covers sustainable forest management, timberland and plantation investments, forest valuations and due diligence, wood and fibre-based industry, bio-products, forest resource assessment and mapping, climate change and ecosystem services in forest landscapes, forest policy and strategic studies, as well as sustainability and development consulting related to sustainable forest management and land use.

3

(4)  In many countries national building regulations have tended to restrict the use of timber frames for the construction of multi-storey buildings. The reason many countries have refrained from using flammable materials is uncertainty about fires in the buildings. However, extensive research and development has shown that material-neutral building regulations are preferable and for over a decade function-based regulations have been common in many countries. Wood burns, but in a controlled manner, indeed it is possible to estimate how much of the cross section will remain unaffected by the fire after one hour of burning. Timber resists fire very well — when heavy timber burns, a layer of char is created, which helps to maintain the strength and structural integrity of the wood inside, reducing the risk of complete collapse.

4

(5)  LCA is a tool for identifying environmental releases and evaluating the associated impacts caused by a process, product or activity. It is a useful tool for industry in the search for practical and user-friendly decision-making models for environmentally sound product development.

5

(6)  Journal of Sustainable Forestry 33:248-275, 2014.

6

Journal of Sustainable Forestry 33:248-275, 2014.

(7)  As recognised in the European Decision COM(2012) 93 final on accounting rules on greenhouse gas emissions and removals resulting from activities relating to land use, land-use change and forestry and on information concerning actions relating to those activities, the increased sustainable use of harvested wood products can substantially limit emissions into and enhance the removal of greenhouse gases from the atmosphere.

7

(8)  . The data collected in the recent Italian study, Analysis of the Life Cycle Assessment (LCA) and comparison between the use of post-consumer wood for the production of chipboard wood panels and for renewable energy use, have shown that considering the impact on climate change, the utilisation of recycled raw wood material in a panel production plant is more advantageous than the activity of combustion in a biomass power plant. This study was conducted by the Italian research institute eAmbiente, c/o Parco Scientifico Tecnologico VEGA. The study was presented during the EESC hearing on the contribution of the woodworking sector to the carbon balance held in Mestre (Italy) on 19 September 2014.

8

Analysis of the Life Cycle Assessment (LCA) and comparison between the use of post-consumer wood for the production of chipboard wood panels and for renewable energy use

(9)  The EESC considers that the social aspects and observations presented in the EESC Opinion on Opportunities and challenges for a more competitive European woodworking and furniture sector are still valid.

9

(10)  . ‘Noise health effects are the health consequences of elevated sound levels. Elevated workplace or other noise can cause hearing impairment, hypertension, ischemic heart disease, annoyance, and sleep disturbance. Changes in the immune system and birth defects have been attributed to noise exposure’. (As reported in Passchier-Vermeer W, Passchier WF (2000). Noise exposure and public health. Environ. Health Perspect. 108 Suppl 1: 123–31. doi:10.2307/3454637. JSTOR 3454637. PMC 1637786. PMID 10698728.)

10

Passchier-Vermeer W, Passchier WF (2000). Noise exposure and public health. Environ. Health Perspect. 108 Suppl 1: 123–31. doi:10.2307/3454637. JSTOR 3454637. PMC 1637786. PMID 10698728

(11)  The event ‘WOODDAYS’ is an initiative of pro-Holz Austria in cooperation with the Department of Timber Construction at the Technical University of Munich and with the support of the European Organisation of the Sawmill Industry (EOS) and the European Panel Federation (EPF).

11

(12)  The Italian Group ‘Saviola’ — known for the slogan: ‘Help us save the trees’ — is the leading processor of wood waste in the world, with a recycling capacity of 1,5 million tonnes of post-consumer wood per year. Their production philosophy is based on the recovery and reuse of secondary raw materials that can be reborn and reused without the need to cut down new trees, through an economically and ecologically sustainable process. Types of timber that are collected by the Group: pallets, fruit crates, shipping boxes.

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ANNEX

to the CCMI opinion

The following CCMI opinion text was rejected by the CCMI in favour of an amendment, but obtained more than one-quarter of the votes.

Point 6.4

| 6.4. | The EESC would highlight here that the ‘cascade use’ principle (use, reuse, recycling, energy recovery) — when economically and technically feasible in accordance with specific regional peculiarities — will represent the optimal way to maximise the resource-efficient use of wood, the natural raw material. Suitable wood assortments ought to be used physically rather than to serve as a fuel. Using wood in a ‘cascade use’ approach not only secures optimal economic usage of the raw material, it also provides important climate benefits through the continuous carbon storage and substitution effect, prior to its use as a source of energy. |
| --- | --- |

6.4.

The EESC would highlight here that the ‘cascade use’ principle (use, reuse, recycling, energy recovery) — when economically and technically feasible in accordance with specific regional peculiarities — will represent the optimal way to maximise the resource-efficient use of wood, the natural raw material. Suitable wood assortments ought to be used physically rather than to serve as a fuel. Using wood in a ‘cascade use’ approach not only secures optimal economic usage of the raw material, it also provides important climate benefits through the continuous carbon storage and substitution effect, prior to its use as a source of energy.

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| 14.7.2015 | EN | Official Journal of the European Union | C 230/47 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/47

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Opinion of the European Economic and Social Committee on ‘European film in the digital era’

(own-initiative opinion)

(2015/C 230/07)

| Rapporteur: | Anna Maria DARMANIN |
| --- | --- |

Rapporteur:

Anna Maria DARMANIN

On 6 November 2014, the European Economic and Social Committee, acting under Article 29(2) of its Rules of Procedure, decided to draw up an own-initiative opinion on

European film in the digital era.

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for preparing the Committee’s work on the subject, adopted its opinion on 11 November 2014.

At its 503rd plenary session, held on 10 and 11 December 2014 (meeting of 10 December), the European Economic and Social Committee adopted the following opinion by 190 votes to nine with one abstention.

1.   Recommendations

| 1.1. | The EESC welcomes the Commission Communication on ‘European film in the digital era — Bridging cultural diversity and competitiveness’ (COM(2014) 272 final), which rightly raises some points for discussion and reflection concerning this very important sector in Europe. |
| --- | --- |

1.1.

The EESC welcomes the Commission Communication on ‘European film in the digital era — Bridging cultural diversity and competitiveness’ (COM(2014) 272 final), which rightly raises some points for discussion and reflection concerning this very important sector in Europe.

| 1.2. | The EESC emphasises that there needs to be an appropriate balance between the audiovisual sector’s value in a business and commercial sense and its value to Europe from a cultural heritage perspective. Intrinsically these two aspects cannot be dealt with separately. |
| --- | --- |

1.2.

The EESC emphasises that there needs to be an appropriate balance between the audiovisual sector’s value in a business and commercial sense and its value to Europe from a cultural heritage perspective. Intrinsically these two aspects cannot be dealt with separately.

| 1.3. | It is high time that one or more innovative and new business models for the sector be openly discussed with a view to taking up opportunities existing within the digital world. The EESC therefore encourages the sector, the Commission and also national governments to be open and willing to discuss and promote such business models. |
| --- | --- |

1.3.

It is high time that one or more innovative and new business models for the sector be openly discussed with a view to taking up opportunities existing within the digital world. The EESC therefore encourages the sector, the Commission and also national governments to be open and willing to discuss and promote such business models.

| 1.4. | Financing is an area that needs to be looked into; competitiveness must be sought but not at the cost of the cultural dimension of film in Europe. Finance is primarily up to the Member States. Nonetheless, an open debate on methodologies for ensuring the maximisation of financing and alternative methods of financing should be looked into. This includes public funding to attract private funding; a more rational use of public resources and complementarity between EU and MS funding; and private funding from new players such as internet providers and telecoms companies. |
| --- | --- |

1.4.

Financing is an area that needs to be looked into; competitiveness must be sought but not at the cost of the cultural dimension of film in Europe. Finance is primarily up to the Member States. Nonetheless, an open debate on methodologies for ensuring the maximisation of financing and alternative methods of financing should be looked into. This includes public funding to attract private funding; a more rational use of public resources and complementarity between EU and MS funding; and private funding from new players such as internet providers and telecoms companies.

| 1.5. | Strengthening the creative environment should also be a key priority for the roadmap of the sector. Such an approach should be addressed within the Commission communication and should cover the educational environment, the working conditions of people within the sector, the development of creative talent, creative expression, how to add value and European film literacy and language. |
| --- | --- |

1.5.

Strengthening the creative environment should also be a key priority for the roadmap of the sector. Such an approach should be addressed within the Commission communication and should cover the educational environment, the working conditions of people within the sector, the development of creative talent, creative expression, how to add value and European film literacy and language.

| 1.6. | The EESC endorses the idea that the audience should be at the heart of discussions about the audiovisual sector, as they are not only the beneficiaries but often also the ones who shape trends and hence lead development. |
| --- | --- |

1.6.

The EESC endorses the idea that the audience should be at the heart of discussions about the audiovisual sector, as they are not only the beneficiaries but often also the ones who shape trends and hence lead development.

| 1.7. | The EESC believes that greater emphasis should be placed on data collection at European level for a better understanding of the industry. |
| --- | --- |

1.7.

The EESC believes that greater emphasis should be placed on data collection at European level for a better understanding of the industry.

| 1.8. | The EESC would emphasise that the Commission communication should also highlight, as one of the challenges, the current situation regarding working conditions within the sector, covering workers, the self-employed and SMEs, some of which are currently, in various ways, facing precarious work conditions, partly resulting from the particularities of the industry itself but also as a result of lack of competitiveness where it is being attempted to save money from working payments. |
| --- | --- |

1.8.

The EESC would emphasise that the Commission communication should also highlight, as one of the challenges, the current situation regarding working conditions within the sector, covering workers, the self-employed and SMEs, some of which are currently, in various ways, facing precarious work conditions, partly resulting from the particularities of the industry itself but also as a result of lack of competitiveness where it is being attempted to save money from working payments.

| 1.9. | Film literacy is considered by the EESC to be an important aspect in encouraging more Europeans to appreciate and seek out European films. The EESC therefore recommends that the promotion of film literacy be taken up at European level and also at national level. |
| --- | --- |

1.9.

Film literacy is considered by the EESC to be an important aspect in encouraging more Europeans to appreciate and seek out European films. The EESC therefore recommends that the promotion of film literacy be taken up at European level and also at national level.

| 1.10. | Accessibility is another area in which the EESC believes greater effort should be made, so research and innovation should be aimed at overcoming barriers such as language and disability. |
| --- | --- |

1.10.

Accessibility is another area in which the EESC believes greater effort should be made, so research and innovation should be aimed at overcoming barriers such as language and disability.

| 1.11. | The European Film Forum proposed by the European Commission should encompass all stakeholders within the audiovisual sector, and is an important tool for bringing together all players within the audiovisual sector to address the key issues facing the sector. The EESC supports this long-awaited consultation forum and emphasises that it is essential that all stakeholders within the sector be equally involved; this also includes smaller stakeholder groups, including consumer and employee representatives. |
| --- | --- |

1.11.

The European Film Forum proposed by the European Commission should encompass all stakeholders within the audiovisual sector, and is an important tool for bringing together all players within the audiovisual sector to address the key issues facing the sector. The EESC supports this long-awaited consultation forum and emphasises that it is essential that all stakeholders within the sector be equally involved; this also includes smaller stakeholder groups, including consumer and employee representatives.

| 1.12. | Key challenges and opportunities within the digital era should be the focus of such a forum, channelling policy and strategy into specific measures within the sector. |
| --- | --- |

1.12.

Key challenges and opportunities within the digital era should be the focus of such a forum, channelling policy and strategy into specific measures within the sector.

| 1.13. | Furthermore, the EESC stresses that although it is fast changing and may be perceived as a challenge for the sector, the digital world (including the prospect of satellite communication in line with the EU’s plans for 2020) nonetheless offers a multitude of opportunities for the film industry. |
| --- | --- |

1.13.

Furthermore, the EESC stresses that although it is fast changing and may be perceived as a challenge for the sector, the digital world (including the prospect of satellite communication in line with the EU’s plans for 2020) nonetheless offers a multitude of opportunities for the film industry.

2.   Gist of the Communication

| 2.1. | The film industry in Europe, one of the instruments of our cultural diversity, is greatly distinct and also very creative. It is a strong asset to the mass of cultural heritage within Europe and yet an industry under significant threats due to a number of challenges. |
| --- | --- |

2.1.

The film industry in Europe, one of the instruments of our cultural diversity, is greatly distinct and also very creative. It is a strong asset to the mass of cultural heritage within Europe and yet an industry under significant threats due to a number of challenges.

| 2.2. | The Commission has in the past issued a number of directives related to specific areas of the film industry, such as intellectual property. This communication is the first in the recent past to focus on the entire industry. |
| --- | --- |

2.2.

The Commission has in the past issued a number of directives related to specific areas of the film industry, such as intellectual property. This communication is the first in the recent past to focus on the entire industry.

| 2.3. | The Commission paper highlights the particularities the European film sector is facing, namely:






  — | European film audiences, whereby few European films make it to the cinema or television of another country; |
| --- | --- | --- |

2.3.

The Commission paper highlights the particularities the European film sector is facing, namely:

—

European film audiences, whereby few European films make it to the cinema or television of another country;

| — | changing consumption patterns, whereby film viewing remains the same although the medium is changing. Fewer people go to the cinema and more view films on television or VoD; |
| --- | --- |

—

changing consumption patterns, whereby film viewing remains the same although the medium is changing. Fewer people go to the cinema and more view films on television or VoD;

| — | flaws in the approach to reach a global market, amongst them fragmentation in funding and limited opportunities for internationalisation. |
| --- | --- |

—

flaws in the approach to reach a global market, amongst them fragmentation in funding and limited opportunities for internationalisation.

| 2.4. | The Commission document therefore sets out to identify and address these challenges as an initial basis of discussion. These areas being:






  — | funding; |
| --- | --- | --- |

2.4.

The Commission document therefore sets out to identify and address these challenges as an initial basis of discussion. These areas being:

—

funding;

| — | the business model within the sector; |
| --- | --- |

—

the business model within the sector;

| — | giving more impetus to the creative sector; |
| --- | --- |

—

giving more impetus to the creative sector;

| — | audience access. |
| --- | --- |

—

audience access.

3.   General comments

| 3.1. | The EESC welcomes the initiative of the Commission to set out the basis of discussion amongst all stakeholders and other players within the audiovisual sector in Europe. This dialogue is imperative and has been needed for a long time, not only to reap the benefits offered by the changing digital world and emerging technologies but also to strengthen further this diverse and complex industry. |
| --- | --- |

3.1.

The EESC welcomes the initiative of the Commission to set out the basis of discussion amongst all stakeholders and other players within the audiovisual sector in Europe. This dialogue is imperative and has been needed for a long time, not only to reap the benefits offered by the changing digital world and emerging technologies but also to strengthen further this diverse and complex industry.

| 3.2. | The EESC agrees with the EC on the specific challenges, which have been highlighted within the document. However the EESC would also add another challenge that has been omitted within the document, this would be the current work environment that workers, self-employed and entrepreneurs are facing within this sector. |
| --- | --- |

3.2.

The EESC agrees with the EC on the specific challenges, which have been highlighted within the document. However the EESC would also add another challenge that has been omitted within the document, this would be the current work environment that workers, self-employed and entrepreneurs are facing within this sector.

| 3.3. | Within the areas of focus to be addressed the EESC is in agreement with the areas outlined within the document. However the EESC would also add as necessary areas to be discussed and addressed being:






  — | the education environment, not limiting this to solely the business skills within the education system; |
| --- | --- | --- |

3.3.

Within the areas of focus to be addressed the EESC is in agreement with the areas outlined within the document. However the EESC would also add as necessary areas to be discussed and addressed being:

—

the education environment, not limiting this to solely the business skills within the education system;

| — | the working conditions and environment; |
| --- | --- |

—

the working conditions and environment;

| — | the link between theatre and cinema; |
| --- | --- |

—

the link between theatre and cinema;

| — | a more comprehensive data collection and a showcase of best practice; |
| --- | --- |

—

a more comprehensive data collection and a showcase of best practice;

| — | the internal market and the link between IPR and copyright to the industry. |
| --- | --- |

—

the internal market and the link between IPR and copyright to the industry.

| 3.4. | Furthermore, the EESC stresses that although it is fast changing and may be perceived as a challenge for the sector, the digital world nonetheless offers a multitude of opportunities for the film industry. This includes the prospect of satellite communication in line with the EU’s satellite infrastructure plans for 2020 and making use of satellites to distribute films in a more flexible, environmentally-friendly and cost-efficient way to cinemas. |
| --- | --- |

3.4.

Furthermore, the EESC stresses that although it is fast changing and may be perceived as a challenge for the sector, the digital world nonetheless offers a multitude of opportunities for the film industry. This includes the prospect of satellite communication in line with the EU’s satellite infrastructure plans for 2020 and making use of satellites to distribute films in a more flexible, environmentally-friendly and cost-efficient way to cinemas.

4.   Specific comments

The financing environment of the audiovisual sector

| 4.1. | The EESC supports the concept that public funding need not necessarily be augmented within the sector but rather optimised for the added value of the industry. Public funding is up to the Member States and EU funding should further enhance the effectiveness of the local funding. Such public funding ought to be used however to attract more private funding. |
| --- | --- |

4.1.

The EESC supports the concept that public funding need not necessarily be augmented within the sector but rather optimised for the added value of the industry. Public funding is up to the Member States and EU funding should further enhance the effectiveness of the local funding. Such public funding ought to be used however to attract more private funding.

| 4.2. | The funding model for the audiovisual industry needs to be based on support devoted to different kinds of products and on a blend of direct grants and leverage financing to facilitate private investors to enter the market. The role of leveraging of public funding is essential to obtain a more rational use of public resources and to concentrate the effort on cultural products. |
| --- | --- |

4.2.

The funding model for the audiovisual industry needs to be based on support devoted to different kinds of products and on a blend of direct grants and leverage financing to facilitate private investors to enter the market. The role of leveraging of public funding is essential to obtain a more rational use of public resources and to concentrate the effort on cultural products.

| 4.3. | The EESC emphasises that there is a fine balance between achieving competitiveness and creative expression; public funding should not just be addressed to one or the other but should also be balanced out accordingly. |
| --- | --- |

4.3.

The EESC emphasises that there is a fine balance between achieving competitiveness and creative expression; public funding should not just be addressed to one or the other but should also be balanced out accordingly.

| 4.4. | In addition to the questions raised by the Commission within the public funding sphere as a basis of debate, the EESC would also add the following:






  4.4.1. | At a supranational level, due consideration needs to be given to developing a ‘Europe’ brand of films. National labelling is important and should always remain a core part of the film’s credits, but a European brand needs to be further developed within the global field and also at a national level. |
| --- | --- | --- |

4.4.

In addition to the questions raised by the Commission within the public funding sphere as a basis of debate, the EESC would also add the following:

4.4.1.

At a supranational level, due consideration needs to be given to developing a ‘Europe’ brand of films. National labelling is important and should always remain a core part of the film’s credits, but a European brand needs to be further developed within the global field and also at a national level.

| 4.4.2. | Guarantee fund schemes and tax incentives are the main financial tools to be used; guarantee funds — especially when Basel compliant — foster banks’ lending, while tax incentives foster equity or semi equity investments. These financial tools must be structured in a way that results in their being complimentary with the European ones, mainly the Creative Europe financial initiative, guarantee funds for PIMEs and EU Structural Funds. |
| --- | --- |

4.4.2.

Guarantee fund schemes and tax incentives are the main financial tools to be used; guarantee funds — especially when Basel compliant — foster banks’ lending, while tax incentives foster equity or semi equity investments. These financial tools must be structured in a way that results in their being complimentary with the European ones, mainly the Creative Europe financial initiative, guarantee funds for PIMEs and EU Structural Funds.

| 4.4.3. | Further funding instruments such as H2020 and Erasmus+ should be used within this sector and directed to this sector with an appropriate balance and not simply the Creative Europe programme. |
| --- | --- |

4.4.3.

Further funding instruments such as H2020 and Erasmus+ should be used within this sector and directed to this sector with an appropriate balance and not simply the Creative Europe programme.

| 4.5. | The Commission communication refers to private investment as a means of funding for the industry. The EESC recommends that new players within the digital sector contribute towards the financing of the industry, such players being for example the telecoms companies and the content providers. |
| --- | --- |

4.5.

The Commission communication refers to private investment as a means of funding for the industry. The EESC recommends that new players within the digital sector contribute towards the financing of the industry, such players being for example the telecoms companies and the content providers.

| 4.6. | Single initiatives are not enough; governments and the EU have to develop a financial infrastructure for the audiovisual industry aimed at implementing and fostering several financial and non-financial services — including capacity-building services — devoted to the whole production chain of the industry: development, production, distribution. |
| --- | --- |

4.6.

Single initiatives are not enough; governments and the EU have to develop a financial infrastructure for the audiovisual industry aimed at implementing and fostering several financial and non-financial services — including capacity-building services — devoted to the whole production chain of the industry: development, production, distribution.

An innovative business environment

| 4.7. | The EESC has been part of the debate in Intellectual Property Rights, the Digital Single Market and the AVMSD. Nonetheless the EESC supports the notion of exploring out of the box business models that make sense within the current technological changes of the digital era. The EESC also emphasises that there is a need to better streamline all the current policies that exist for this sector. |
| --- | --- |

4.7.

The EESC has been part of the debate in Intellectual Property Rights, the Digital Single Market and the AVMSD. Nonetheless the EESC supports the notion of exploring out of the box business models that make sense within the current technological changes of the digital era. The EESC also emphasises that there is a need to better streamline all the current policies that exist for this sector.

| 4.8. | New business models need to be explored and tenacity to make bold decisions should be supported. However the EESC emphasises that to achieve this it is necessary that all stakeholders are openly and comprehensively involved in the discussions towards changing business models. Moreover such a debate ought to be driven by the industry itself. |
| --- | --- |

4.8.

New business models need to be explored and tenacity to make bold decisions should be supported. However the EESC emphasises that to achieve this it is necessary that all stakeholders are openly and comprehensively involved in the discussions towards changing business models. Moreover such a debate ought to be driven by the industry itself.

| 4.9. | The EESC firmly believes that this aspect is crucial to the success of the industry and therefore calls upon all stakeholders to be open to such new business models, not only so as to reap the full benefits offered by the digital era but also in order to adapt to rapidly changing consumer behavioural patterns. |
| --- | --- |

4.9.

The EESC firmly believes that this aspect is crucial to the success of the industry and therefore calls upon all stakeholders to be open to such new business models, not only so as to reap the full benefits offered by the digital era but also in order to adapt to rapidly changing consumer behavioural patterns.

| 4.10. | There is a need for a cultural change in the producers’ and broadcasters’ mentality: in the future, products devoted to cinemas and TV will co-exist with cross media products: producers and broadcasters have to develop different business models in relation to the different nature of the products: they have to think of different budgets and different release strategies according to the nature and the commercial potential of the specific products. At the same time, governments have to rethink the public funding model according to a more balanced blending of supports. |
| --- | --- |

4.10.

There is a need for a cultural change in the producers’ and broadcasters’ mentality: in the future, products devoted to cinemas and TV will co-exist with cross media products: producers and broadcasters have to develop different business models in relation to the different nature of the products: they have to think of different budgets and different release strategies according to the nature and the commercial potential of the specific products. At the same time, governments have to rethink the public funding model according to a more balanced blending of supports.

| 4.11. | The EESC would be cautious about simply tweaking current business practices without looking into practices from a completely innovative angle. For example, simply establishing more flexible release windows may not necessarily address the business solutions that the digital era requires. |
| --- | --- |

4.11.

The EESC would be cautious about simply tweaking current business practices without looking into practices from a completely innovative angle. For example, simply establishing more flexible release windows may not necessarily address the business solutions that the digital era requires.

Strengthening the creative environment

| 4.12. | The EESC advocates that the cooperation between films schools is essential for the further enhancement of the sector. Furthermore the EESC emphasises that such aspect of the sector, the film schools, also need to be involved in the stakeholder discussions being held at a European level. |
| --- | --- |

4.12.

The EESC advocates that the cooperation between films schools is essential for the further enhancement of the sector. Furthermore the EESC emphasises that such aspect of the sector, the film schools, also need to be involved in the stakeholder discussions being held at a European level.

| 4.13. | A reality that requires further consideration within this area is the particular challenges faced by the film schools whereby technology is so fast changing that in many occasions film schools are using out of date technology for the training of their students. Hence many times producing professionals who are then not ready for the technological environment they are faced within the industry itself. |
| --- | --- |

4.13.

A reality that requires further consideration within this area is the particular challenges faced by the film schools whereby technology is so fast changing that in many occasions film schools are using out of date technology for the training of their students. Hence many times producing professionals who are then not ready for the technological environment they are faced within the industry itself.

Accessibility and audience development

| 4.14. | The EESC supports the notion that the audience should also be at the heart of the driving force within the sector. For this reason the EESC emphasises further the requirement of proper data at a European level and also the involvement of consumer organisations within the stakeholders’ discussions, such as the European Film Forum. |
| --- | --- |

4.14.

The EESC supports the notion that the audience should also be at the heart of the driving force within the sector. For this reason the EESC emphasises further the requirement of proper data at a European level and also the involvement of consumer organisations within the stakeholders’ discussions, such as the European Film Forum.

Data collection and analysis

| 4.15. | The EESC believes that greater emphasis should be placed on data collection at a European level for a better understanding of the industry. Such data collection should not only include the element of audiences within the sector but also the use of funding at different levels, the competitiveness of the sector and also the working environment and conditions. |
| --- | --- |

4.15.

The EESC believes that greater emphasis should be placed on data collection at a European level for a better understanding of the industry. Such data collection should not only include the element of audiences within the sector but also the use of funding at different levels, the competitiveness of the sector and also the working environment and conditions.

| 4.16. | The EESC also recognises that there is a need to develop a data source at national and EU levels which will also include data used by financial intermediaries to assess and manage the investment risk. |
| --- | --- |

4.16.

The EESC also recognises that there is a need to develop a data source at national and EU levels which will also include data used by financial intermediaries to assess and manage the investment risk.

Working environment and working conditions

| 4.17. | The EESC strongly believes that the area of working conditions and the working environment within the sector should be an area of discussion and focus. Currently the sector is so diverse that often a lack of data on working conditions results in a lack of focus on this area. |
| --- | --- |

4.17.

The EESC strongly believes that the area of working conditions and the working environment within the sector should be an area of discussion and focus. Currently the sector is so diverse that often a lack of data on working conditions results in a lack of focus on this area.

| 4.18. | Precarious work is unfortunately becoming even more widespread within the sector, partly resulting from the particularities of the industry itself (production taking place within a short timeframe for example) but also as a result of lack of competitiveness where money is attempted to being saved from working payments. |
| --- | --- |

4.18.

Precarious work is unfortunately becoming even more widespread within the sector, partly resulting from the particularities of the industry itself (production taking place within a short timeframe for example) but also as a result of lack of competitiveness where money is attempted to being saved from working payments.

| 4.19. | Hence the EESC invites the Commission to include this challenge within the focus of the Communication and also address it in the discussions. Stakeholders representing the film sector workers need to be involved within the stakeholders’ discussions and the European Film Forum. |
| --- | --- |

4.19.

Hence the EESC invites the Commission to include this challenge within the focus of the Communication and also address it in the discussions. Stakeholders representing the film sector workers need to be involved within the stakeholders’ discussions and the European Film Forum.

European Film Forum

| 4.20. | The EESC supports the initiative of the Commission to establish the European Film Forum. It is overdue that the sector gets together so as to discuss the issues raised as pertinent for the competitiveness of the industry within today’s digital era. |
| --- | --- |

4.20.

The EESC supports the initiative of the Commission to establish the European Film Forum. It is overdue that the sector gets together so as to discuss the issues raised as pertinent for the competitiveness of the industry within today’s digital era.

| 4.21. | The EESC emphasises that it is essential that all stakeholders be equally involved within this sector. This also includes the smaller stakeholder groups, the less ‘powerful ones’ and also the representatives of the consumers and of the workers. |
| --- | --- |

4.21.

The EESC emphasises that it is essential that all stakeholders be equally involved within this sector. This also includes the smaller stakeholder groups, the less ‘powerful ones’ and also the representatives of the consumers and of the workers.

| 4.22. | Whereas the television sector is not as severely affected as the film industry by the digital era, it is important to also include this sector and discuss it within the wider debate as this is also an important component of the audio visual sector. |
| --- | --- |

4.22.

Whereas the television sector is not as severely affected as the film industry by the digital era, it is important to also include this sector and discuss it within the wider debate as this is also an important component of the audio visual sector.

Promotion of European film literacy

| 4.23. | Film literacy is considered by the EESC as an important aspect in attracting more Europeans to appreciate and seek out European films. Hence the EESC recommends that the promotion of such film literacy be taken up at European level and also at national level. This would not only benefit the industry itself but would also highlight an important element in the manifestation of European cultural diversity. Whereas the specific model of film appreciation in schools may not necessarily work, the EESC believes that models and campaigns should be created that will highlight the success, beauty and art of the European film sector. |
| --- | --- |

4.23.

Film literacy is considered by the EESC as an important aspect in attracting more Europeans to appreciate and seek out European films. Hence the EESC recommends that the promotion of such film literacy be taken up at European level and also at national level. This would not only benefit the industry itself but would also highlight an important element in the manifestation of European cultural diversity. Whereas the specific model of film appreciation in schools may not necessarily work, the EESC believes that models and campaigns should be created that will highlight the success, beauty and art of the European film sector.

Accessibility

| 4.24. | Language may be considered as one of the barriers to audiences across Europe and also overseas. Language is a physical barrier but also part of cultural diversity. Furthermore, film is a powerful tool for foreign language uptake. Nonetheless, the EESC believes that H2020 funds should also be directed towards an innovative approach to dubbing in a cost-effective manner through leading and upcoming technologies. |
| --- | --- |

4.24.

Language may be considered as one of the barriers to audiences across Europe and also overseas. Language is a physical barrier but also part of cultural diversity. Furthermore, film is a powerful tool for foreign language uptake. Nonetheless, the EESC believes that H2020 funds should also be directed towards an innovative approach to dubbing in a cost-effective manner through leading and upcoming technologies.

| 4.25. | Furthermore the EESC strongly encourages the audiovisual sector to use the tools available to ensure that the sector’s products can also be enjoyed by audiences with visual and/or auditory limitations or impairments. Research efforts should also be devoted to making such tools for accessibility more cost-effective. |
| --- | --- |

4.25.

Furthermore the EESC strongly encourages the audiovisual sector to use the tools available to ensure that the sector’s products can also be enjoyed by audiences with visual and/or auditory limitations or impairments. Research efforts should also be devoted to making such tools for accessibility more cost-effective.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

---

| 14.7.2015 | EN | Official Journal of the European Union | C 230/52 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/52

---

Opinion of the European Economic and Social Committee on civil society in Russia

(own-initiative opinion)

(2015/C 230/08)

| Rapporteur: | Ms Mall HELLAM |
| --- | --- |

Rapporteur:

Ms Mall HELLAM

At its plenary session of 22 January 2014, the European Economic and Social Committee decided, under Rule 29(2) of its Rules of Procedure, to draw up an own-initiative opinion on

Civil society in Russia

(own-initiative opinion).

The Section for External Relations, which was responsible for preparing the Committee’s work on the subject, adopted its opinion on 17 November 2014.

At its 503rd plenary session, held on 10 and 11 December 2014 (meeting of 10 December 2014), the European Economic and Social Committee adopted the following opinion by 118 votes to 6 with 5 abstentions.

1.   General recommendations

| 1.1. | Building mutual trust and ensuring that Russia and EU civil society can interact freely, and providing as much support as possible to Russian independent civil society organisations (CSOs) have never been more important. |
| --- | --- |

1.1.

Building mutual trust and ensuring that Russia and EU civil society can interact freely, and providing as much support as possible to Russian independent civil society organisations (CSOs) have never been more important.

| 1.2. | The Human Rights and Democracy framework should be promoted more actively, and the political role of the EU Special Representative for human rights increased. Civil society and human rights issues should be part of all bi- and multilateral dialogue with Russia. Human rights dialogue should be maintained and civil society stakeholders with relevant expertise should be brought to the table whenever possible. The EU High Representative for Foreign Affairs and Security Policy should meet with civil society and CSOs whenever visiting Russia. |
| --- | --- |

1.2.

The Human Rights and Democracy framework should be promoted more actively, and the political role of the EU Special Representative for human rights increased. Civil society and human rights issues should be part of all bi- and multilateral dialogue with Russia. Human rights dialogue should be maintained and civil society stakeholders with relevant expertise should be brought to the table whenever possible. The EU High Representative for Foreign Affairs and Security Policy should meet with civil society and CSOs whenever visiting Russia.

| 1.3. | The EU should coordinate and speak with one voice, addressing the issue of political challenges as well as the crackdown on non-governmental organisations (NGOs) and media in Russia. The EESC encourages the EU to closely monitor and regularly comment on various aspects of the civil society situation in Russia. |
| --- | --- |

1.3.

The EU should coordinate and speak with one voice, addressing the issue of political challenges as well as the crackdown on non-governmental organisations (NGOs) and media in Russia. The EESC encourages the EU to closely monitor and regularly comment on various aspects of the civil society situation in Russia.

| 1.4. | However, a bilateral approach should not be underestimated as a means of making progress in talks with Russia. The EU should retain a clear position on sanctions and responsibility for the civil society crackdown. But a great deal of flexibility will be needed to move on from this low point in EU-Russia relations. A bilateral approach might be a good way of relaunching relations. |
| --- | --- |

1.4.

However, a bilateral approach should not be underestimated as a means of making progress in talks with Russia. The EU should retain a clear position on sanctions and responsibility for the civil society crackdown. But a great deal of flexibility will be needed to move on from this low point in EU-Russia relations. A bilateral approach might be a good way of relaunching relations.

| 1.5. | Perceiving EU-Russia civil society cooperation as a potential part of the future PCA (1), and providing a separate funding line for the independent EU-Russia civil society dialogue platform might also be a valuable strategic investment. Despite extraordinary political circumstances, the EU should continue exercising soft and smart power-based (2) efforts to normalise the situation and prevent Russia’s (self-) isolationist drift. In this regard, the previous EESC opinions’ recommendations on the Northern Dimension (3) (including the Arctic Policy (4)), the Baltic Sea Strategy (5), the Black Sea Synergy (6), the Eastern Partnership (7), and the Danube Strategy might be consulted. |
| --- | --- |

1.5.

Perceiving EU-Russia civil society cooperation as a potential part of the future PCA (1), and providing a separate funding line for the independent EU-Russia civil society dialogue platform might also be a valuable strategic investment. Despite extraordinary political circumstances, the EU should continue exercising soft and smart power-based (2) efforts to normalise the situation and prevent Russia’s (self-) isolationist drift. In this regard, the previous EESC opinions’ recommendations on the Northern Dimension (3) (including the Arctic Policy (4)), the Baltic Sea Strategy (5), the Black Sea Synergy (6), the Eastern Partnership (7), and the Danube Strategy might be consulted.

| 1.6. | The EU should maintain an accurate account of the democratic processes and challenges for the participants in the dialogue. The rapidly deteriorating situation surrounding rights and freedoms — as has been the case in Russia in the last two years — needs to be recognised and remedied now. The EU institutions and the Member States and especially those who have not been involved should invest in and support exchange programmes and programmes for civil society cooperation with Russia and support Russian democratically-oriented and issue–based NGOs such as defenders of human rights, environmentalists, consumer associations, various social partners, as well as other independent professional interest organisations, etc. Appropriate steps to facilitate and liberalise visas should be taken on the basis of certain conditions. |
| --- | --- |

1.6.

The EU should maintain an accurate account of the democratic processes and challenges for the participants in the dialogue. The rapidly deteriorating situation surrounding rights and freedoms — as has been the case in Russia in the last two years — needs to be recognised and remedied now. The EU institutions and the Member States and especially those who have not been involved should invest in and support exchange programmes and programmes for civil society cooperation with Russia and support Russian democratically-oriented and issue–based NGOs such as defenders of human rights, environmentalists, consumer associations, various social partners, as well as other independent professional interest organisations, etc. Appropriate steps to facilitate and liberalise visas should be taken on the basis of certain conditions.

| 1.7. | Diversity is the key to a healthy European civil society: the EU should engage with a wide range of thematic and regional civil society stakeholders — despite and especially against a backdrop of Russia’s growing monopolisation and isolation, retreating to authoritarian modes of behaviour. The EESC calls for more people-to-people contacts and in particular for more large-scale exchanges in the field of education and intercultural dialogue as a tool to improve mutual understanding and confidence. New platforms and formats of cooperation between civil society organisations from the EU and Russia should thrive. The EU-Russia Civil Society Forum (similar to the Eastern Partnership CSF) might be considered as one of the existing development platforms that are well suited for this purpose. Involvement of the social partners also merits attention within this or a similar platform. |
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1.7.

Diversity is the key to a healthy European civil society: the EU should engage with a wide range of thematic and regional civil society stakeholders — despite and especially against a backdrop of Russia’s growing monopolisation and isolation, retreating to authoritarian modes of behaviour. The EESC calls for more people-to-people contacts and in particular for more large-scale exchanges in the field of education and intercultural dialogue as a tool to improve mutual understanding and confidence. New platforms and formats of cooperation between civil society organisations from the EU and Russia should thrive. The EU-Russia Civil Society Forum (similar to the Eastern Partnership CSF) might be considered as one of the existing development platforms that are well suited for this purpose. Involvement of the social partners also merits attention within this or a similar platform.

| 1.8. | The EU should review the procedures for financial support to NGOs through the European Instrument for Democracy and Human Rights (EIDHR). In the light of the ongoing crackdown and persecution campaign, a relatively high share of co-funding would represent a huge burden for many Russian NGOs and their partners. Therefore, it is important to increase funding opportunities and arrange a safe way of accessing these for the Russian NGOs or NGO coalitions. For example, the EIDHR is advised to increase the budget for the Russian Federation (suggested rise from EUR 3 to 9 million per year). In order to facilitate the flexibility and accessibility of support mechanisms, re-granting formats could be considered. |
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1.8.

The EU should review the procedures for financial support to NGOs through the European Instrument for Democracy and Human Rights (EIDHR). In the light of the ongoing crackdown and persecution campaign, a relatively high share of co-funding would represent a huge burden for many Russian NGOs and their partners. Therefore, it is important to increase funding opportunities and arrange a safe way of accessing these for the Russian NGOs or NGO coalitions. For example, the EIDHR is advised to increase the budget for the Russian Federation (suggested rise from EUR 3 to 9 million per year). In order to facilitate the flexibility and accessibility of support mechanisms, re-granting formats could be considered.

| 1.9. | Opening up the European Neighbourhood Instrument ENI to Russian participants as part of cross-border and multilateral programmes with counterparts from the EU and the Eastern Partnership states might present another valuable opportunity. The EESC also recommends extending the Partnership Instrument (PI), which is currently allocating EUR 10 million per year for cooperation with Russia, to allow applications from civil society institutions. Lastly, the mandate of the European Endowment for Democracy can be extended to Russia. Relevant regional and cross-border cooperation programmes should increase their support to civil society. |
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1.9.

Opening up the European Neighbourhood Instrument ENI to Russian participants as part of cross-border and multilateral programmes with counterparts from the EU and the Eastern Partnership states might present another valuable opportunity. The EESC also recommends extending the Partnership Instrument (PI), which is currently allocating EUR 10 million per year for cooperation with Russia, to allow applications from civil society institutions. Lastly, the mandate of the European Endowment for Democracy can be extended to Russia. Relevant regional and cross-border cooperation programmes should increase their support to civil society.

| 1.10. | The EU’s current funding policies should not be exclusively about aid projects. Institutional support and a professional upgrade are essential for the sustainability of civil society in transitional economies like Russia. Boosting the capacity of CSOs including the social partners, supporting technical/IT and managerial skills development within the NGO community as well as fostering cooperation with EU-counterparts are important in order for Russian civil society to move on. |
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1.10.

The EU’s current funding policies should not be exclusively about aid projects. Institutional support and a professional upgrade are essential for the sustainability of civil society in transitional economies like Russia. Boosting the capacity of CSOs including the social partners, supporting technical/IT and managerial skills development within the NGO community as well as fostering cooperation with EU-counterparts are important in order for Russian civil society to move on.

| 1.11. | The EESC calls for the development of an urgent action/alert system for groups and individuals in danger or acute need. This should include, for instance, better access to asylum, granting visas and visa extensions, fellowship, etc. It is also of utmost importance to assist and support civil society activists who already have been forced to leave Russia due to political reasons. |
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1.11.

The EESC calls for the development of an urgent action/alert system for groups and individuals in danger or acute need. This should include, for instance, better access to asylum, granting visas and visa extensions, fellowship, etc. It is also of utmost importance to assist and support civil society activists who already have been forced to leave Russia due to political reasons.

| 1.12. | The EESC calls for exchanges and ties to be stepped up between Russian civil society and Ukrainian civil society stakeholders — with structural leadership and support from the EU. The EESC suggests seeking opportunities to bring Russian partners into large regional projects with the Eastern Partnership (EaP) countries, particularly in the field of democracy, environment, public health, transport, energy efficiency, etc. |
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1.12.

The EESC calls for exchanges and ties to be stepped up between Russian civil society and Ukrainian civil society stakeholders — with structural leadership and support from the EU. The EESC suggests seeking opportunities to bring Russian partners into large regional projects with the Eastern Partnership (EaP) countries, particularly in the field of democracy, environment, public health, transport, energy efficiency, etc.

| 1.13. | The EU should seek more structured involvement of independent civil society representatives in EU-Russia governmental dialogue, including on such mutually important topics as migration, intercultural relations, climate change, data security, informational security, etc. The EU should also draw up new interactive and transparent formats of citizen participation in both Europe and Russia. A meeting of the EU High Representative with civil society stakeholders operating outside the EU could be one step towards meeting this objective. |
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1.13.

The EU should seek more structured involvement of independent civil society representatives in EU-Russia governmental dialogue, including on such mutually important topics as migration, intercultural relations, climate change, data security, informational security, etc. The EU should also draw up new interactive and transparent formats of citizen participation in both Europe and Russia. A meeting of the EU High Representative with civil society stakeholders operating outside the EU could be one step towards meeting this objective.

2.   The role for the EESC

| 2.1. | The EESC and Russian independent civil society organisations should look into ways of enriching human rights dialogue between the EU and Russia and finding new avenues for continued dialogue. |
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2.1.

The EESC and Russian independent civil society organisations should look into ways of enriching human rights dialogue between the EU and Russia and finding new avenues for continued dialogue.

| 2.2. | In order to strengthen interaction between European and Russian civil society, the following steps should be taken: |
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2.2.

In order to strengthen interaction between European and Russian civil society, the following steps should be taken:

| 2.2.1. | Consider enlarging the EESC-Russia follow-up committee with the objective of creating an opportunity for more members to participate in the exchanges with Russian partners; |
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2.2.1.

Consider enlarging the EESC-Russia follow-up committee with the objective of creating an opportunity for more members to participate in the exchanges with Russian partners;

| 2.2.2. | Strengthen the cooperation between the EESC and the EU-Russia Civil Society Forum in order to monitor developments in Russian civil society and explore ways of fostering dialogue between EU and Russian independent CSOs (including environmental, consumer, agricultural, social and other professional and issue-based organisations, etc.); |
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2.2.2.

Strengthen the cooperation between the EESC and the EU-Russia Civil Society Forum in order to monitor developments in Russian civil society and explore ways of fostering dialogue between EU and Russian independent CSOs (including environmental, consumer, agricultural, social and other professional and issue-based organisations, etc.);

| 2.2.3. | Establish and develop contacts with a broad spectrum of independent social partners (e.g. employers’ associations and trade unions) in Russia; |
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2.2.3.

Establish and develop contacts with a broad spectrum of independent social partners (e.g. employers’ associations and trade unions) in Russia;

| 2.2.4. | Support, expand and prioritise engagement efforts in the field of fostering cooperation and civil society in Russia and Ukraine and the rest of the Eastern Partnership space, including labour relations; consider a special role for the EESC in organising cooperation between Russia and Ukraine at civil society level; |
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2.2.4.

Support, expand and prioritise engagement efforts in the field of fostering cooperation and civil society in Russia and Ukraine and the rest of the Eastern Partnership space, including labour relations; consider a special role for the EESC in organising cooperation between Russia and Ukraine at civil society level;

| 2.2.5. | Due to the political situation, the EESC has suspended the joint workshops with the Civic Chamber of the Russian Federation (CCRF). However, the committee maintains issue-based contacts with the CCRF and will also establish contacts with the Russian Ombudsman office and other relevant institutions and professionals. |
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2.2.5.

Due to the political situation, the EESC has suspended the joint workshops with the Civic Chamber of the Russian Federation (CCRF). However, the committee maintains issue-based contacts with the CCRF and will also establish contacts with the Russian Ombudsman office and other relevant institutions and professionals.

3.   Introductory remarks

| 3.1. | In early March 2014, the Russian Federation took active steps to annex the Autonomous Republic of Crimea, Ukraine. Since April 2014, Russia is believed to have been waging a proxy war in eastern Ukraine, through its increasing support of pro-Russian separatists in the ersatz Donetsk Peoples Republic and Luhansk Peoples Republic and direct incursion into the territory of Ukraine. This tests the current European security system that has been in place for decades and broader post WWII international agreements. Starting from summer 2014, the EU and the US have imposed an array of sanctions on Russian individuals and businesses in response to the annexation of Crimea and the crisis in eastern Ukraine. On 21 September 2014, Moscow and other big cities saw, in all likelihood, the largest anti-war protest in many years (estimates vary from 25 to 50 thousand people). |
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3.1.

In early March 2014, the Russian Federation took active steps to annex the Autonomous Republic of Crimea, Ukraine. Since April 2014, Russia is believed to have been waging a proxy war in eastern Ukraine, through its increasing support of pro-Russian separatists in the ersatz Donetsk Peoples Republic and Luhansk Peoples Republic and direct incursion into the territory of Ukraine. This tests the current European security system that has been in place for decades and broader post WWII international agreements. Starting from summer 2014, the EU and the US have imposed an array of sanctions on Russian individuals and businesses in response to the annexation of Crimea and the crisis in eastern Ukraine. On 21 September 2014, Moscow and other big cities saw, in all likelihood, the largest anti-war protest in many years (estimates vary from 25 to 50 thousand people).

| 3.2. | President Vladimir Putin and the Russian government spent 2013 and 2014 tightening their grip on power, and marginalising any potential opposition. In recent years, the Russian government has enforced a series of harsh laws in response to massive protests between December 2011 and mid-2012. Among other restrictions, the laws increased controls on NGOs, the internet, and dramatically increased fines for participating in unsanctioned street protests and expanded the definition of treason. |
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3.2.

President Vladimir Putin and the Russian government spent 2013 and 2014 tightening their grip on power, and marginalising any potential opposition. In recent years, the Russian government has enforced a series of harsh laws in response to massive protests between December 2011 and mid-2012. Among other restrictions, the laws increased controls on NGOs, the internet, and dramatically increased fines for participating in unsanctioned street protests and expanded the definition of treason.

| 3.3. | The human rights and civil society situation in the Russian Federation is deteriorating. The amendments to the law on Non-Commercial Organisations (also known as ‘foreign agents’ law) in combination with other legislative novelties penalise advocacy work, demonise NGOs in the public eye and therefore prevent the development of civil society. The growing number of recent court cases against civil society organisations is a worrying feature. The overall social and political climate has been increasingly hostile toward NGO and independent voices. |
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3.3.

The human rights and civil society situation in the Russian Federation is deteriorating. The amendments to the law on Non-Commercial Organisations (also known as ‘foreign agents’ law) in combination with other legislative novelties penalise advocacy work, demonise NGOs in the public eye and therefore prevent the development of civil society. The growing number of recent court cases against civil society organisations is a worrying feature. The overall social and political climate has been increasingly hostile toward NGO and independent voices.

| 3.4. | Other restrictive legislation such as a ban on the propaganda of ‘non-traditional sexual relations’ to minors generates stigmatisation and increases discrimination and homophobic violence. Also, a number of recent legislative and administrative moves unleashed a crackdown on the independent media in Russia. |
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3.4.

Other restrictive legislation such as a ban on the propaganda of ‘non-traditional sexual relations’ to minors generates stigmatisation and increases discrimination and homophobic violence. Also, a number of recent legislative and administrative moves unleashed a crackdown on the independent media in Russia.

| 3.5. | In its conclusions from 16 July 2014, the European Council ‘invites the Commission to re-assess EU-Russia cooperation programmes with a view to taking a decision, on a case-by-case basis, on the suspension of the implementation of EU bilateral and regional cooperation programmes. However, projects dealing exclusively with cross-border cooperation and civil society will be maintained’. In the given circumstances it is necessary to consider how the EU institutions and civil society can help improve conditions for civil society groups in Russia and strengthen genuine civil and social dialogue. |
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3.5.

In its conclusions from 16 July 2014, the European Council ‘invites the Commission to re-assess EU-Russia cooperation programmes with a view to taking a decision, on a case-by-case basis, on the suspension of the implementation of EU bilateral and regional cooperation programmes. However, projects dealing exclusively with cross-border cooperation and civil society will be maintained’. In the given circumstances it is necessary to consider how the EU institutions and civil society can help improve conditions for civil society groups in Russia and strengthen genuine civil and social dialogue.

4.   Overall civil society situation

| 4.1. | In recent years, key international stakeholders — within the UN, EU, European Parliament, CoE, OSCE — have shared their concerns on the shrinking space for civil society in Russia. |
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4.1.

In recent years, key international stakeholders — within the UN, EU, European Parliament, CoE, OSCE — have shared their concerns on the shrinking space for civil society in Russia.

| 4.2. | Russian civil society — in the broad understanding, including all sorts of non-profit associations — has seen a significant change since the early 1990s. More recently, NGOs have been joined by many loosely organised coalitions and groups of citizens uniting to work on charitable projects, education, ‘rights literacy’, etc., although compared to the formative period around 20 years ago, the contemporary Russian civil society community is facing an unfriendly climate for individual initiative and social activism. |
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4.2.

Russian civil society — in the broad understanding, including all sorts of non-profit associations — has seen a significant change since the early 1990s. More recently, NGOs have been joined by many loosely organised coalitions and groups of citizens uniting to work on charitable projects, education, ‘rights literacy’, etc., although compared to the formative period around 20 years ago, the contemporary Russian civil society community is facing an unfriendly climate for individual initiative and social activism.

| 4.3. | Since Vladimir Putin’s return to the Kremlin in May 2012, a stream of repressive laws has been passed, and the authorities have acquired very broad powers to restrict core freedoms. To mention a few, Russia’s amended definition of treason allows for the penalising of international human rights advocacy. Huge fines have been imposed for participation in ‘unsanctioned’ rallies. The law forbidding ‘propaganda of homosexuality’ widely discriminates against LGBT people. Heads of NGOs personally have become potentially criminally liable for not observing the novelties of the NGO law. |
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4.3.

Since Vladimir Putin’s return to the Kremlin in May 2012, a stream of repressive laws has been passed, and the authorities have acquired very broad powers to restrict core freedoms. To mention a few, Russia’s amended definition of treason allows for the penalising of international human rights advocacy. Huge fines have been imposed for participation in ‘unsanctioned’ rallies. The law forbidding ‘propaganda of homosexuality’ widely discriminates against LGBT people. Heads of NGOs personally have become potentially criminally liable for not observing the novelties of the NGO law.

| 4.4. | Essentially, civil society in Russia is facing an existential dilemma (8). Some human rights observers believe the scale of this crackdown on civil society is ‘unprecedented in the country’s post-Soviet history’, and it has even ‘intensified as the Ukrainian crisis started unfolding’ (9). At the same time, the State has made available a lot of funding for the so-called ‘socially-oriented’ groups, adding this line of division within the NGO community. |
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4.4.

Essentially, civil society in Russia is facing an existential dilemma (8). Some human rights observers believe the scale of this crackdown on civil society is ‘unprecedented in the country’s post-Soviet history’, and it has even ‘intensified as the Ukrainian crisis started unfolding’ (9). At the same time, the State has made available a lot of funding for the so-called ‘socially-oriented’ groups, adding this line of division within the NGO community.

| 4.5. | Politically motivated persecution of activists and the harsh treatment of the ruling establishment’s opponents and critics are ongoing. It is worth noting that several political prisoners were given amnesty and released before the Olympics in Sochi in 2014 (including Mikhail Khodorkovsky and members of the punk group ‘Pussy Riot’). However, during the same period several dozen protesters of the Moscow’s Bolotnaya square rally on 6 May 2012 were put on trial and charged with ‘organising mass riots’ and using violence against the police (10). The proportionality and relevance of the charges were continuously questioned by local and international human rights institutions. |
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4.5.

Politically motivated persecution of activists and the harsh treatment of the ruling establishment’s opponents and critics are ongoing. It is worth noting that several political prisoners were given amnesty and released before the Olympics in Sochi in 2014 (including Mikhail Khodorkovsky and members of the punk group ‘Pussy Riot’). However, during the same period several dozen protesters of the Moscow’s Bolotnaya square rally on 6 May 2012 were put on trial and charged with ‘organising mass riots’ and using violence against the police (10). The proportionality and relevance of the charges were continuously questioned by local and international human rights institutions.

| 4.6. | Amendments to the existing NGO legislation (known as ‘the foreign agents’ law) enacted in November 2012 (11) became one of the central pieces of the crackdown on civil society in Russia and marked the start of a campaign to marginalise Russian NGOs. |
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4.6.

Amendments to the existing NGO legislation (known as ‘the foreign agents’ law) enacted in November 2012 (11) became one of the central pieces of the crackdown on civil society in Russia and marked the start of a campaign to marginalise Russian NGOs.

| 4.7. | Disturbingly, the ‘foreign agents’ and many subsequent repressive laws in Russia set the wrong tone for the development of civil society in the broader region (12). The very notion of a ‘foreign agent’ immediately brought back the heavily loaded and hateful rhetoric of the Soviet era — and the clear connotation of NGOs as ‘spies’ (‘agents’). |
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4.7.

Disturbingly, the ‘foreign agents’ and many subsequent repressive laws in Russia set the wrong tone for the development of civil society in the broader region (12). The very notion of a ‘foreign agent’ immediately brought back the heavily loaded and hateful rhetoric of the Soviet era — and the clear connotation of NGOs as ‘spies’ (‘agents’).

| 4.8. | Initially, the new law obligated all NGOs that receive foreign funding and engage in so-called ‘political activity’ (or advocacy in English) to register as ‘foreign agents’ with the authorities. Failure to do so became punishable by suspension of the organisation’s activities, with no court order. The implementation of the law in February 2013 started with a nation-wide campaign of inspections of over 1  000 NGOs (13) (when later commenting on related criticism, Vladimir Putin acknowledged some ‘extremes’ in the application of the law). |
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4.8.

Initially, the new law obligated all NGOs that receive foreign funding and engage in so-called ‘political activity’ (or advocacy in English) to register as ‘foreign agents’ with the authorities. Failure to do so became punishable by suspension of the organisation’s activities, with no court order. The implementation of the law in February 2013 started with a nation-wide campaign of inspections of over 1  000 NGOs (13) (when later commenting on related criticism, Vladimir Putin acknowledged some ‘extremes’ in the application of the law).

| 4.9. | Over 60 human rights and civil society groups — many of them prominent — were charged with ‘administrative offences’ and have appealed against the charges and fines resulting from inspections (with different measures of success). Moscow-based NGO ‘Golos’, the most outspoken election monitoring group, has been suspended along with a few other NGOs. With court proceedings still under way, 13 NGOs filed a complaint to the European Court of Human rights. No NGOs registered themselves independently (14). |
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4.9.

Over 60 human rights and civil society groups — many of them prominent — were charged with ‘administrative offences’ and have appealed against the charges and fines resulting from inspections (with different measures of success). Moscow-based NGO ‘Golos’, the most outspoken election monitoring group, has been suspended along with a few other NGOs. With court proceedings still under way, 13 NGOs filed a complaint to the European Court of Human rights. No NGOs registered themselves independently (14).

| 4.10. | In June 2014 the law was amended again and the Ministry of Justice acquired the authority to designate NGOs as ‘foreign agents’ at its own discretion, by-passing any judicial involvement. The first six groups appeared on the ministry’s website almost immediately after the law entered into force (15). As of 1 October 2014, 15 NGOs were put on the list, many of which deal with strategic litigation and legal support (16). |
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4.10.

In June 2014 the law was amended again and the Ministry of Justice acquired the authority to designate NGOs as ‘foreign agents’ at its own discretion, by-passing any judicial involvement. The first six groups appeared on the ministry’s website almost immediately after the law entered into force (15). As of 1 October 2014, 15 NGOs were put on the list, many of which deal with strategic litigation and legal support (16).

| 4.11. | There are very few state institutions in Russia dealing with civil society and human rights issues: the Ombudsman office, the Presidential Council for the Civil Society and — to a certain extent — the Civic Chamber (17). The latter has been the EESC’s partner organisation for formal contacts with the Russian side (18). However, these institutions’ capacity is insufficient to address the latest negative developments around NGOs and civil society groups in Russia. |
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4.11.

There are very few state institutions in Russia dealing with civil society and human rights issues: the Ombudsman office, the Presidential Council for the Civil Society and — to a certain extent — the Civic Chamber (17). The latter has been the EESC’s partner organisation for formal contacts with the Russian side (18). However, these institutions’ capacity is insufficient to address the latest negative developments around NGOs and civil society groups in Russia.

5.   Social dialogue

| 5.1. | The Tripartite Committee is Russia’s official body for handling labour and industrial relations (based on the ILO concept). The Committee comprises 30 representatives for each of three parties: Russia-wide trade unions, the Russian government and employers’ associations. Currently the Committee operates within their General Agreement for 2014-2016 (19). The collective agreements are negotiated and signed at the level of a concrete entity. |
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5.1.

The Tripartite Committee is Russia’s official body for handling labour and industrial relations (based on the ILO concept). The Committee comprises 30 representatives for each of three parties: Russia-wide trade unions, the Russian government and employers’ associations. Currently the Committee operates within their General Agreement for 2014-2016 (19). The collective agreements are negotiated and signed at the level of a concrete entity.

| 5.2. | Both employers and unions are represented by large associations in the Committee. The Russian Union of Industrialists and Entrepreneurs (RSPP) (20) is a leading association of 361 employers within major industries. RSPP representatives sit on the Tripartite Committee meetings on the employers’ side. The RSPP offers mediation of disputes to its members and promotes business cooperation with the EU companies. RSPP’s members together oversee about 6 million employees, the Union signed the Social Charter of the Russian Business, and is a party to the Global Compact and General Reporting Initiative (GRI). Alliances of entrepreneurs include the Chamber of Commerce and Industry (21) and ‘Opora Rossii’ (small to medium-sized companies), etc. |
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5.2.

Both employers and unions are represented by large associations in the Committee. The Russian Union of Industrialists and Entrepreneurs (RSPP) (20) is a leading association of 361 employers within major industries. RSPP representatives sit on the Tripartite Committee meetings on the employers’ side. The RSPP offers mediation of disputes to its members and promotes business cooperation with the EU companies. RSPP’s members together oversee about 6 million employees, the Union signed the Social Charter of the Russian Business, and is a party to the Global Compact and General Reporting Initiative (GRI). Alliances of entrepreneurs include the Chamber of Commerce and Industry (21) and ‘Opora Rossii’ (small to medium-sized companies), etc.

| 5.3. | The trade unions movement in today’s Russia has never had a strong independent voice; however, there are several reassuring examples on that front — quite often localised within the motor car industry. |
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5.3.

The trade unions movement in today’s Russia has never had a strong independent voice; however, there are several reassuring examples on that front — quite often localised within the motor car industry.

| 5.4. | The dominant player in the field is the Federation of Independent Trade Unions of Russia (FNPR), the successor to a similar model of ‘union of unions’ that existed during the Soviet times (VTsSPS). FNPR has attempted to become a bridge between trade unions and the authorities; at the same time, it has been criticised for a clearly pro-governmental stance and overall lack of involvement in strikes and street action, etc. Another leading alliance of unions is the Confederation of Labour of Russia (KTR) (22). There are smaller ones such as ‘Sotsprof’, Union of unions of Russia (SPR), etc. |
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5.4.

The dominant player in the field is the Federation of Independent Trade Unions of Russia (FNPR), the successor to a similar model of ‘union of unions’ that existed during the Soviet times (VTsSPS). FNPR has attempted to become a bridge between trade unions and the authorities; at the same time, it has been criticised for a clearly pro-governmental stance and overall lack of involvement in strikes and street action, etc. Another leading alliance of unions is the Confederation of Labour of Russia (KTR) (22). There are smaller ones such as ‘Sotsprof’, Union of unions of Russia (SPR), etc.

| 5.5. | Though Russia is a signatory to all major ILO conventions, observance of socioeconomic and labour rights in Russia remains a point of concern, also shared by the EESC. |
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5.5.

Though Russia is a signatory to all major ILO conventions, observance of socioeconomic and labour rights in Russia remains a point of concern, also shared by the EESC.

| 5.6. | Freedom of assembly as a labour right is a deeply problematic area — according to activists, it is almost impossible to go on strike without breaking the law (23). At the same time, Russian legislation lacks a clear definition of discrimination — hence employers might easily discriminate against potential and current employees on the basis of gender, age and union membership. Underprivileged groups of employees — such as prisoners or minorities — are particularly vulnerable, and trade union activists lack effective legal protection from pressure and persecution (24). |
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5.6.

Freedom of assembly as a labour right is a deeply problematic area — according to activists, it is almost impossible to go on strike without breaking the law (23). At the same time, Russian legislation lacks a clear definition of discrimination — hence employers might easily discriminate against potential and current employees on the basis of gender, age and union membership. Underprivileged groups of employees — such as prisoners or minorities — are particularly vulnerable, and trade union activists lack effective legal protection from pressure and persecution (24).

| 5.7. | The Centre for Social and Labour Rights, Russia’s only thematic think tank, reported on 1  395 cases of labour-related protests in 2007-2013, and their number is growing by the year (25). |
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5.7.

The Centre for Social and Labour Rights, Russia’s only thematic think tank, reported on 1  395 cases of labour-related protests in 2007-2013, and their number is growing by the year (25).

6.   Media and freedom of speech

| 6.1. | Freedom of information and media in Russia is under attack. Following the recriminalisation of libel, an array of new laws targeted at restricting the press and the internet was adopted in 2014. Several independent media outlets — print, radio, online — were closed down or forced to change their owner, staff and editorial policy. These recent moves are in indisputable contradiction with the letter and the spirit of Russia’s international obligations. |
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6.1.

Freedom of information and media in Russia is under attack. Following the recriminalisation of libel, an array of new laws targeted at restricting the press and the internet was adopted in 2014. Several independent media outlets — print, radio, online — were closed down or forced to change their owner, staff and editorial policy. These recent moves are in indisputable contradiction with the letter and the spirit of Russia’s international obligations.

| 6.2. | The law on Information and Information Technology (changed in February 2014) now allows websites to be blocked on the prosecutor general’s request, if they allegedly contain ‘extremist’ content or call for mass riots or unsanctioned gatherings. |
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6.2.

The law on Information and Information Technology (changed in February 2014) now allows websites to be blocked on the prosecutor general’s request, if they allegedly contain ‘extremist’ content or call for mass riots or unsanctioned gatherings.

| 6.3. | Anti-terrorism legislation was amended in May with new regulations for bloggers with a readership of over 3  000 daily visits. Such bloggers must now register with Roskomnadzor and will afterwards need to comply with Russian mass media legislation regarding their blogs (including restrictions during elections, etc.). They also may be required to disclose their real name and other information and be held accountable for the third party comments on their posts. Non-registration is punishable by a fine. |
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6.3.

Anti-terrorism legislation was amended in May with new regulations for bloggers with a readership of over 3  000 daily visits. Such bloggers must now register with Roskomnadzor and will afterwards need to comply with Russian mass media legislation regarding their blogs (including restrictions during elections, etc.). They also may be required to disclose their real name and other information and be held accountable for the third party comments on their posts. Non-registration is punishable by a fine.

| 6.4. | The EU and the international community are gravely concerned about another legislative initiative that suggests limiting foreign investment in media companies in Russia to 20 % from January 2016. |
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6.4.

The EU and the international community are gravely concerned about another legislative initiative that suggests limiting foreign investment in media companies in Russia to 20 % from January 2016.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

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(1)  For several years, Russia and the EU have been negotiating the adoption of a new Partnership and Cooperation Agreement (PCA), a key institutional and process-setting document between the parties. The previous 10-year PCA entered into force in 1997, and since it expired, it has been automatically extended every 12 months. Notably, the agreement no longer suits the needs of the EU-Russia relationship.

1

(2)  This notion was introduced into international relations (IR) by Harvard professor Joseph Nye. According to Nye’s concept, both hard (military) and soft power (all forms of diplomacy) are used to increase the efficiency of IR.

2

(3)  The future of the Northern Dimension, 5.7.2006; rapporteur Filip Hamro-Drotz (OJ C 309, 16.12.2006, p. 91–95).

3

(4)  EU Arctic policy/Please, see also http://ec.europa.eu/maritimeaffairs/policy/sea_basins/arctic_ocean/index_en.htm

4

(5)  Baltic Sea region: the role of organised civil society in improving regional cooperation and identifying a regional strategy, 13.5.2009; rapporteur Marja-Liisa Peltola (OJ C 277, 17.11.2009, p. 42–48).

5

(6)  Setting up civil society organisations networks in the Black Sea region, 9.7.2008; rapporteurs Mihai Manoliu and Vesselin Mitov (OJ C 27, 3.2.2009, p. 144–151).

6

(7)  Involvement of civil society in the Eastern Partnership, 13.5.2009; rapporteur Ivan Voleš (OJ C 277, 17.11.2009, p. 30–36).

7

(8)  Anna Sevortian. European Human Rights Advocacy Centre Bulletin, Winter 2013. http://ehracmos.memo.ru/files/WinterBulletin2013ENGWEB.pdf

8

(9)  http://www.hrw.org/news/2013/04/24/russia-worst-human-rights-climate-post-soviet-era

9

(10)  One defendant received a suspended sentence and had travel restrictions imposed, one was sentenced to indefinite forced confinement in a psychiatric institution, and the rest received prison terms ranging from two and a half to four and a half years. Another four people are presently on trial on charges of mass rioting and violence against the police.

10

(11)  The law was also upheld by the Constitutional Court decision in 2014.

11

(12)  In September 2013 a similar ‘foreign agents’ initiative was introduced in the parliament of Kyrgyzstan, with similar ideas discussed in Kazakhstan, etc.

12

(13)  For the majority of NGOs these ‘checks’ were not a one-time occurrence. The work of many was disrupted by inspectors, usually showing up as a team representing the prosecutor’s office, registration authorities, migration or tax authorities, police, fire service and even a TV crew. In June 2013 another draft law started circulating within the Duma — this one broadens the list of grounds for random inspections of NGOs without prior notice.

13

(14)  http://www.hrw.org/reports/2013/04/24/laws-attrition

14

(15)  These are: the association ‘Golos’ (Moscow), Regional ‘Golos’” (Moscow), Center for Social Policy and Gender Studies (Saratov), Women of Don (Novocherkassk) and the Kostroma Centre for Support of Public Initiatives (Kostroma).

15

(16)  See the list at the Ministry of Justice webpage: http://unro.minjust.ru/NKOForeignAgent.aspx

16

(17)  The Civic Chamber was created in 2005 as a state institution with consultative powers that is supposed to monitor and advise on parliament initiatives and state policies. CC consists of 126 members elected for a 2-year-term. For the first convening of the chamber, President Putin appointed one third of the members. The Chamber’s record is not without controversies.

17

In the most recent election, the Chamber got a new director Alexandr Brechalov, president of ‘OPORA ROSSII,’ a Russia-wide public Organisation for small and medium-sized businesses. See more at www.oprf.ru/en

(18)  Based on the Memorandum of Understanding, 2008.

18

(19)  http://www.unionstoday.ru/news/social/2013/12/25/18878

19

(20)  RSPP has formal contacts with BusinessEurope and is a member of IOE/ILO.

20

(21)  The Chamber of Commerce and Industry of the Russian Federation is member of Eurochambers.

21

(22)  Both FNPR and KTR are members of the International Trade Union Confederation (ITUC) and its regional structure for Europe — the Pan-European Regional Council (PERC).

22

(23)  http://www.unionstoday.ru/news/actual-18/2013/09/26/18592

23

(24)  The Presidential Council on Human Rights recently discussed this topic on 18 April 2014.

24

(25)  http://trudprava.ru/expert/analytics/protestanalyt/1047

25

---

III Preparatory acts

EUROPEAN ECONOMIC AND SOCIAL COMMITTEE

503rd EESC plenary session, 10 and 11 December 2014

| 14.7.2015 | EN | Official Journal of the European Union | C 230/59 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/59

---

Opinion of the European Economic and Social Committee on the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Research and innovation as sources of renewed growth

(COM(2014) 339 final — SWD(2014) 181 final)

(2015/C 230/09)

| Rapporteur: | Gerd WOLF |
| --- | --- |

Rapporteur:

Gerd WOLF

On 10 June 2014, the European Commission decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Research and innovation as sources of renewed growth

COM(2014) 339 final — SWD(2014) 181 final.

The Section for the Single Market, Production and Consumption, which was responsible for preparing the Committee’s work on the subject, adopted its opinion on 19 November 2014.

At its 503rd plenary session on 10 and 11 December 2014 (meeting of 11 December 2014), the Committee unanimously adopted the following opinion:

1.   Summary and recommendations

| 1.1. | The Committee strongly supports the objective set by the Commission, as well as the proposed measures to achieve it. However, their implementation largely falls within the remit of the Member States. |
| --- | --- |

1.1.

The Committee strongly supports the objective set by the Commission, as well as the proposed measures to achieve it. However, their implementation largely falls within the remit of the Member States.

| 1.2. | In view of the Commission’s limited ability to leverage Member State policy in this area, the Committee appeals to the goodwill, constructive attitude and decision-making power of all the relevant players to prioritise this urgent but difficult task, and to bring it to fruition using a persistent approach that does not result in additional red tape. |
| --- | --- |

1.2.

In view of the Commission’s limited ability to leverage Member State policy in this area, the Committee appeals to the goodwill, constructive attitude and decision-making power of all the relevant players to prioritise this urgent but difficult task, and to bring it to fruition using a persistent approach that does not result in additional red tape.

| 1.3. | In the Committee’s view, the following tasks should be given priority:






  — | build and strengthen excellent R & D capacity and innovation centres, drawing on the experience of the most successful examples so far; align university courses, facilities and involvement with this objective, |
| --- | --- | --- |

1.3.

In the Committee’s view, the following tasks should be given priority:

—

build and strengthen excellent R & D capacity and innovation centres, drawing on the experience of the most successful examples so far; align university courses, facilities and involvement with this objective,

| — | provide adequate and sustained support for basic research as the seed of future innovations, |
| --- | --- |

—

provide adequate and sustained support for basic research as the seed of future innovations,

| — | foster a social climate that promotes, welcomes and rewards innovation, and identify, evaluate, and, where appropriate, mitigate or entirely remove administrative, economic and social obstacles that stand in its way, |
| --- | --- |

—

foster a social climate that promotes, welcomes and rewards innovation, and identify, evaluate, and, where appropriate, mitigate or entirely remove administrative, economic and social obstacles that stand in its way,

| — | provide sufficient support and protection for SMEs, start-ups and enterprises in the social economy as a key pillar of any effective innovation policy, |
| --- | --- |

—

provide sufficient support and protection for SMEs, start-ups and enterprises in the social economy as a key pillar of any effective innovation policy,

| — | complete the European Research and Innovation Area, and |
| --- | --- |

—

complete the European Research and Innovation Area, and

| — | create an attractive and stable European labour market for researchers, and at last effectively tackle the specific social disadvantages of mobility. |
| --- | --- |

—

create an attractive and stable European labour market for researchers, and at last effectively tackle the specific social disadvantages of mobility.

| 1.4. | For more detailed remarks, the Committee refers to the sections which follow. |
| --- | --- |

1.4.

For more detailed remarks, the Committee refers to the sections which follow.

2.   Gist of the Commission communication (much abbreviated)

| 2.1. | This communication relates to efforts to achieve an appreciable increase in the potential of research and innovation (R&I)‘which is a key driver of renewed growth. This is to be made possible by raising the quality of investment within the Member States’ growth-friendly fiscal consolidation strategies. |
| --- | --- |

2.1.

This communication relates to efforts to achieve an appreciable increase in the potential of research and innovation (R&I)‘which is a key driver of renewed growth. This is to be made possible by raising the quality of investment within the Member States’ growth-friendly fiscal consolidation strategies.

| 2.2. | To this end, the Commission proposes that:






  (i) | In line with the concept of growth friendly fiscal consolidation, Member States need to prioritise growth-enhancing expenditure, notably on R&I. |
| --- | --- | --- |

2.2.

To this end, the Commission proposes that:

(i)

In line with the concept of growth friendly fiscal consolidation, Member States need to prioritise growth-enhancing expenditure, notably on R&I.

| (ii) | Those investments need to go hand-in-hand with reforms to increase the quality, efficiency and impact of public expenditure and business investment in R&I. |
| --- | --- |

(ii)

Those investments need to go hand-in-hand with reforms to increase the quality, efficiency and impact of public expenditure and business investment in R&I.

| (iii) | In doing so, Member States should focus on three main axes of reform:






  — | the quality of strategy development and the policymaking process, |
| --- | --- | --- |

(iii)

In doing so, Member States should focus on three main axes of reform:

—

the quality of strategy development and the policymaking process,

| — | the quality of programmes and funding mechanisms, |
| --- | --- |

—

the quality of programmes and funding mechanisms,

| — | the quality of R&I performing institutions. |
| --- | --- |

—

the quality of R&I performing institutions.

| 2.3. | The Commission intends to support Member States in this, drawing on the experience gained under the Innovation Union flagship initiative (1) and the European Research Area. |
| --- | --- |

2.3.

The Commission intends to support Member States in this, drawing on the experience gained under the Innovation Union flagship initiative (1) and the European Research Area.

| 2.4. | Moreover, it is imperative that the innovation ecosystem in the broadest sense be strengthened, with the right conditions put in place for European businesses to this end. |
| --- | --- |

2.4.

Moreover, it is imperative that the innovation ecosystem in the broadest sense be strengthened, with the right conditions put in place for European businesses to this end.

| 2.5. | Clear progress has been made since the launch of the Innovation Union, but further efforts are needed to:






  — | deepen the single market, |
| --- | --- | --- |

2.5.

Clear progress has been made since the launch of the Innovation Union, but further efforts are needed to:

—

deepen the single market,

| — | facilitate and diversify access to finance, |
| --- | --- |

—

facilitate and diversify access to finance,

| — | strengthen the innovation capacity of the public sector, |
| --- | --- |

—

strengthen the innovation capacity of the public sector,

| — | create resilient jobs in knowledge-intensive activities, |
| --- | --- |

—

create resilient jobs in knowledge-intensive activities,

| — | develop a human resource base equipped with innovation skills, |
| --- | --- |

—

develop a human resource base equipped with innovation skills,

| — | foster frontier research, |
| --- | --- |

—

foster frontier research,

| — | strengthen the external dimension of R&I policy, and |
| --- | --- |

—

strengthen the external dimension of R&I policy, and

| — | embed science and innovation more strongly in society. |
| --- | --- |

—

embed science and innovation more strongly in society.

| 2.6. | The Commission invites the Council to discuss this matter on the basis of its communication and proposals. |
| --- | --- |

2.6.

The Commission invites the Council to discuss this matter on the basis of its communication and proposals.

3.   General comments

| 3.1. | Bound up with the historical process of the Enlightenment (2), research and innovation have within a short period of time brought humanity the greatest increase in knowledge, health, technical skills and prosperity that has ever been achieved; they are the engine of future economic growth and social progress. |
| --- | --- |

3.1.

Bound up with the historical process of the Enlightenment (2), research and innovation have within a short period of time brought humanity the greatest increase in knowledge, health, technical skills and prosperity that has ever been achieved; they are the engine of future economic growth and social progress.

| 3.2. | This is also recognised by countries outside Europe, which is why there is increasing international competition for knowledge and innovation. In Asia, especially, major scientific and technological centres are now being built up, and research spending and innovation capacity are rapidly being further developed. |
| --- | --- |

3.2.

This is also recognised by countries outside Europe, which is why there is increasing international competition for knowledge and innovation. In Asia, especially, major scientific and technological centres are now being built up, and research spending and innovation capacity are rapidly being further developed.

| 3.3. | The Committee strongly supports the aim declared in the communication and the measures proposed to this end, which are in line with the Committee’s constantly reiterated recommendations (3). |
| --- | --- |

3.3.

The Committee strongly supports the aim declared in the communication and the measures proposed to this end, which are in line with the Committee’s constantly reiterated recommendations (3).

| 3.4. | All the more pressing, therefore, is the question of the implementation of the proposed measures and the resources available to this end. As the Commission observes, the relevant problems and tasks largely fall within the remit of the Member States. |
| --- | --- |

3.4.

All the more pressing, therefore, is the question of the implementation of the proposed measures and the resources available to this end. As the Commission observes, the relevant problems and tasks largely fall within the remit of the Member States.

| 3.5. | The resources of the Horizon 2020 programme are the main tool available to the Commission for guiding the financing and direction of the Member States’ R&I policy. As the Committee has repeatedly pointed out, these resources can only provide limited leverage. |
| --- | --- |

3.5.

The resources of the Horizon 2020 programme are the main tool available to the Commission for guiding the financing and direction of the Member States’ R&I policy. As the Committee has repeatedly pointed out, these resources can only provide limited leverage.

| 3.6. | The Committee therefore appeals to the goodwill, constructive attitude and decision-making power of all the relevant players to prioritise this urgent task, and to bring it to fruition using a persistent and gradual approach that does not result in additional red tape. |
| --- | --- |

3.6.

The Committee therefore appeals to the goodwill, constructive attitude and decision-making power of all the relevant players to prioritise this urgent task, and to bring it to fruition using a persistent and gradual approach that does not result in additional red tape.

| 3.7. | To this end, all Europe’s Member States need help moving forward. More specifically, the aim is to build and strengthen modern and excellent R & D capacity and innovation centres in all Member States — especially those that are less advanced in this area — and to align university courses and facilities with this objective. Europe needs world-class universities, which is why universities and research centres as a source of innovators and ideas should be given priority for support. |
| --- | --- |

3.7.

To this end, all Europe’s Member States need help moving forward. More specifically, the aim is to build and strengthen modern and excellent R & D capacity and innovation centres in all Member States — especially those that are less advanced in this area — and to align university courses and facilities with this objective. Europe needs world-class universities, which is why universities and research centres as a source of innovators and ideas should be given priority for support.

| 3.8. | Above all, this will require corresponding structural reforms (including international quality assessment), and that money from the EU’s Structural Funds and Cohesion Fund be allocated and used for these tasks in a targeted manner; the Commission will have to require and monitor this. Doing so will unleash synergies and narrow the innovation gap within Europe. |
| --- | --- |

3.8.

Above all, this will require corresponding structural reforms (including international quality assessment), and that money from the EU’s Structural Funds and Cohesion Fund be allocated and used for these tasks in a targeted manner; the Commission will have to require and monitor this. Doing so will unleash synergies and narrow the innovation gap within Europe.

| 3.9. | Where there is no modern and effective system of science and research, it will have to be built up by drawing on shared experience and learning from best practice. This will mean calling on excellent and experienced providers and giving them the necessary scope, responsibility and guaranteed financing. The concept of ‘twinning for excellence’, in which existing clusters of excellence act as partners, can play a useful role here. |
| --- | --- |

3.9.

Where there is no modern and effective system of science and research, it will have to be built up by drawing on shared experience and learning from best practice. This will mean calling on excellent and experienced providers and giving them the necessary scope, responsibility and guaranteed financing. The concept of ‘twinning for excellence’, in which existing clusters of excellence act as partners, can play a useful role here.

| 3.9.1. | However, the Committee cautions against excessive standardisation and the accompanying loss of systemic competition, which is the essential breeding ground for future innovations. Accordingly, it also cautions against overly formalised assessment criteria. On the other hand, international peer review is the best available, and essential, tool for assessing and safeguarding the required quality of R & D across Europe, despite potential weaknesses in assessing revolutionary ideas. |
| --- | --- |

3.9.1.

However, the Committee cautions against excessive standardisation and the accompanying loss of systemic competition, which is the essential breeding ground for future innovations. Accordingly, it also cautions against overly formalised assessment criteria. On the other hand, international peer review is the best available, and essential, tool for assessing and safeguarding the required quality of R & D across Europe, despite potential weaknesses in assessing revolutionary ideas.

| 3.10. | There is sometimes an extremely long time lag between R&I investment and the point at which the resulting innovations succeed, making it especially difficult to anticipate and identify a causal link. |
| --- | --- |

3.10.

There is sometimes an extremely long time lag between R&I investment and the point at which the resulting innovations succeed, making it especially difficult to anticipate and identify a causal link.

| 3.11. | However, it has long been apparent that a country’s economic performance and prosperity, where it is not primarily based on access to natural resources, correlates strongly with its investment in R&I and its resulting innovative capacity. |
| --- | --- |

3.11.

However, it has long been apparent that a country’s economic performance and prosperity, where it is not primarily based on access to natural resources, correlates strongly with its investment in R&I and its resulting innovative capacity.

| 3.12. | It follows that Europe requires an efficient and open common research area attracting the best talent from around the world, towards which its immigration policy is geared, and in which the constituent national science systems cooperate more effectively at European level and are more closely linked externally with the most successful international institutions. |
| --- | --- |

3.12.

It follows that Europe requires an efficient and open common research area attracting the best talent from around the world, towards which its immigration policy is geared, and in which the constituent national science systems cooperate more effectively at European level and are more closely linked externally with the most successful international institutions.

| 3.13. | Similarly, Europe needs policy measures as well as a social climate that promotes, welcomes and rewards innovation and puts in place the conditions for committed entrepreneurship. This will require, among other things, the identification, evaluation and, where appropriate, mitigation or removal of administrative, economic and social obstacles, thus improving and strengthening the innovation ecosystem. |
| --- | --- |

3.13.

Similarly, Europe needs policy measures as well as a social climate that promotes, welcomes and rewards innovation and puts in place the conditions for committed entrepreneurship. This will require, among other things, the identification, evaluation and, where appropriate, mitigation or removal of administrative, economic and social obstacles, thus improving and strengthening the innovation ecosystem.

| 3.14. | This will require a research and innovation policy in the EU Member States that interlocks national activities with European and international initiatives and fosters collaboration between policy-makers, science, business and civil society, including at European level, while also being interlinked with local and regional initiatives. |
| --- | --- |

3.14.

This will require a research and innovation policy in the EU Member States that interlocks national activities with European and international initiatives and fosters collaboration between policy-makers, science, business and civil society, including at European level, while also being interlinked with local and regional initiatives.

| 3.15. | For, alongside publicly funded R&I, it is above all businesses that themselves invest substantially in R & D that succeed on the market with new products, services and processes. These businesses — including enterprises in the social economy — make a substantial contribution to securing Europe’s position on global markets through innovation, and to creating and retaining jobs in Europe. |
| --- | --- |

3.15.

For, alongside publicly funded R&I, it is above all businesses that themselves invest substantially in R & D that succeed on the market with new products, services and processes. These businesses — including enterprises in the social economy — make a substantial contribution to securing Europe’s position on global markets through innovation, and to creating and retaining jobs in Europe.

| 3.16. | Sadly, this is not true of all large companies. One reason may be a systematic aversion on the part of management to the market risks (4) tied up with what are known as disruptive technologies. The aeroplane was not invented and developed by the shipping or railway industries, nor were the innovations developed by Microsoft and Apple the work of the electrical goods and electronics companies that previously dominated the market. |
| --- | --- |

3.16.

Sadly, this is not true of all large companies. One reason may be a systematic aversion on the part of management to the market risks (4) tied up with what are known as disruptive technologies. The aeroplane was not invented and developed by the shipping or railway industries, nor were the innovations developed by Microsoft and Apple the work of the electrical goods and electronics companies that previously dominated the market.

| 3.17. | That is why new ideas often come from entrepreneurial figures and inter-disciplinary teams, and even from outsiders, or are brought to the market by them. SMEs, start-ups and enterprises in the social economy thus have a particularly important role to play, which means that promoting and protecting them sufficiently must be a key pillar of any effective innovation policy. |
| --- | --- |

3.17.

That is why new ideas often come from entrepreneurial figures and inter-disciplinary teams, and even from outsiders, or are brought to the market by them. SMEs, start-ups and enterprises in the social economy thus have a particularly important role to play, which means that promoting and protecting them sufficiently must be a key pillar of any effective innovation policy.

| 3.18. | As already discussed in detail in the opinion on the Innovation Union (5), there is also great potential for innovation in the whole spectrum of human interactions and organisations, including enterprises in the social economy. They encompass the entire gamut of scientific, economic and social activities, as discussed in other sections. At the same time, innovations need not only result from systematic R & D, but can also develop from field work and the experience gained there. They include:






  — | innovative workplaces, |
| --- | --- | --- |

3.18.

As already discussed in detail in the opinion on the Innovation Union (5), there is also great potential for innovation in the whole spectrum of human interactions and organisations, including enterprises in the social economy. They encompass the entire gamut of scientific, economic and social activities, as discussed in other sections. At the same time, innovations need not only result from systematic R & D, but can also develop from field work and the experience gained there. They include:

—

innovative workplaces,

| — | cooperation between the social partners and representatives of civil society, |
| --- | --- |

—

cooperation between the social partners and representatives of civil society,

| — | social innovations that meet social needs not adequately addressed by the market or the public sector, and |
| --- | --- |

—

social innovations that meet social needs not adequately addressed by the market or the public sector, and

| — | the role of employees as a source of knowledge and ideas. |
| --- | --- |

—

the role of employees as a source of knowledge and ideas.

Once again (6), the Committee expressed its support for the Commission’s objective of promoting such innovations to the fullest extent.

4.   Specific comments of the Committee

| 4.1. | The Committee reiterates that, while there are strong reciprocal links between research and innovation, the two display different characteristics and flourish under different working conditions (7). The key is to recognise these different working conditions on their own terms, but also to interlink them as much as possible. |
| --- | --- |

4.1.

The Committee reiterates that, while there are strong reciprocal links between research and innovation, the two display different characteristics and flourish under different working conditions (7). The key is to recognise these different working conditions on their own terms, but also to interlink them as much as possible.

| 4.2. | In terms of the use of public funds — i.e. revenues from taxes on individuals and businesses that are allocated through democratic processes — the Committee recently (8) argued that any support from the Commission (which, after all, comes from public funds) should focus on those tasks which are less likely to be supported using private funds. Typical reasons for this include:






  — | that there is a significant development risk involved, which contrasts with the considerable potential benefits should the initiative succeed, |
| --- | --- | --- |

4.2.

In terms of the use of public funds — i.e. revenues from taxes on individuals and businesses that are allocated through democratic processes — the Committee recently (8) argued that any support from the Commission (which, after all, comes from public funds) should focus on those tasks which are less likely to be supported using private funds. Typical reasons for this include:

—

that there is a significant development risk involved, which contrasts with the considerable potential benefits should the initiative succeed,

| — | that the ensuing costs are very high and can only be met by pooling multiple public sources, |
| --- | --- |

—

that the ensuing costs are very high and can only be met by pooling multiple public sources,

| — | that the period of time until practical benefits emerge is too long, |
| --- | --- |

—

that the period of time until practical benefits emerge is too long,

| — | that it involves cross-cutting or key technologies (e.g. new materials), and |
| --- | --- |

—

that it involves cross-cutting or key technologies (e.g. new materials), and

| — | that the result cannot readily be marketed, but there is a general social or environmental need. |
| --- | --- |

—

that the result cannot readily be marketed, but there is a general social or environmental need.

| 4.3. | The Committee summarises its position on support for research and development as follows. This should:






  — | adequately fund fundamental research — both to extend and deepen our knowledge of nature, and as a breeding ground for new ideas and ground-breaking innovations. This should by no means be restricted to the part of the Horizon 2020 programme supervised by the ERC, but should be emphasised in all other parts of the programme as well, |
| --- | --- | --- |

4.3.

The Committee summarises its position on support for research and development as follows. This should:

—

adequately fund fundamental research — both to extend and deepen our knowledge of nature, and as a breeding ground for new ideas and ground-breaking innovations. This should by no means be restricted to the part of the Horizon 2020 programme supervised by the ERC, but should be emphasised in all other parts of the programme as well,

| — | respect and protect scientific and research freedom, |
| --- | --- |

—

respect and protect scientific and research freedom,

| — | apply excellence as the supreme criterion for awarding research contracts, as has been the case so far, |
| --- | --- |

—

apply excellence as the supreme criterion for awarding research contracts, as has been the case so far,

| — | cooperate across borders and pool capacity, |
| --- | --- |

—

cooperate across borders and pool capacity,

| — | create an open and attractive European labour market for researchers — at last effectively tackle or offset the social disadvantages resulting from too many fixed-term contracts and cross-border mobility, |
| --- | --- |

—

create an open and attractive European labour market for researchers — at last effectively tackle or offset the social disadvantages resulting from too many fixed-term contracts and cross-border mobility,

| — | gear the framework and administrative rules towards the needs of a strong science sector, |
| --- | --- |

—

gear the framework and administrative rules towards the needs of a strong science sector,

| — | ensure optimal circulation, access to, and transfer of scientific knowledge (9), and |
| --- | --- |

—

ensure optimal circulation, access to, and transfer of scientific knowledge (9), and

| — | give the European Research Area a stronger international dimension. |
| --- | --- |

—

give the European Research Area a stronger international dimension.

| 4.3.1. | The Committee reiterates its calls (10) to at last effectively tackle the social risks and disadvantages to researchers resulting from necessary and desirable cross-border mobility and a lack of stable jobs. It therefore welcomes the Commission’s latest initiative (Resaver) (11) to facilitate the mobility of researchers in Europe by way of a new, pan-European pension scheme, which is meant to provide researchers with the opportunity to move between Member States without having to worry about whether or not they will be able to keep their pension rights. The Committee considers this a step in the right direction, without being in a position here to judge the suitability of the chosen approach. |
| --- | --- |

4.3.1.

The Committee reiterates its calls (10) to at last effectively tackle the social risks and disadvantages to researchers resulting from necessary and desirable cross-border mobility and a lack of stable jobs. It therefore welcomes the Commission’s latest initiative (Resaver) (11) to facilitate the mobility of researchers in Europe by way of a new, pan-European pension scheme, which is meant to provide researchers with the opportunity to move between Member States without having to worry about whether or not they will be able to keep their pension rights. The Committee considers this a step in the right direction, without being in a position here to judge the suitability of the chosen approach.

| 4.3.2. | The Committee does not go over the specific research themes in this opinion, since they were discussed in detail in its opinion on Horizon 2020. Here, too, it repeats that the objectives of Member State programmes need to be sufficiently leveraged. |
| --- | --- |

4.3.2.

The Committee does not go over the specific research themes in this opinion, since they were discussed in detail in its opinion on Horizon 2020. Here, too, it repeats that the objectives of Member State programmes need to be sufficiently leveraged.

| 4.4. | The Committee summarises its position on support for innovation as follows. Innovations generally emerge:






  — | in response to social needs and challenges or to remedy defects — whether technological or social in nature, |
| --- | --- | --- |

4.4.

The Committee summarises its position on support for innovation as follows. Innovations generally emerge:

—

in response to social needs and challenges or to remedy defects — whether technological or social in nature,

| — | as part of product development or improvement with the aim of enhancing quality or boosting sales, |
| --- | --- |

—

as part of product development or improvement with the aim of enhancing quality or boosting sales,

| — | as new discoveries in the course of fundamental research, offering a more effective solution to previously identified problems, |
| --- | --- |

—

as new discoveries in the course of fundamental research, offering a more effective solution to previously identified problems,

| — | as the result of new ideas, in order to create entirely new possibilities, e.g. for locomotion (the aeroplane), navigation (GPS), or communication and labour-saving (the internet),; |
| --- | --- |

—

as the result of new ideas, in order to create entirely new possibilities, e.g. for locomotion (the aeroplane), navigation (GPS), or communication and labour-saving (the internet),;

| — | to meet hitherto unidentified needs, or |
| --- | --- |

—

to meet hitherto unidentified needs, or

| — | as a tool for, or by-product of, research. This may involve new key technologies, for example. A striking example is the World Wide Web, which was developed by CERN (12) — a beacon of European research and research initiatives — to make research data available to the universities and research organisations cooperating with the Geneva-based centre and connect them to the research programme. Unfortunately, its enormous economic and social potential was not recognised and exploited quickly enough within Europe. Even today, this cannot yet be fully gauged. |
| --- | --- |

—

as a tool for, or by-product of, research. This may involve new key technologies, for example. A striking example is the World Wide Web, which was developed by CERN (12) — a beacon of European research and research initiatives — to make research data available to the universities and research organisations cooperating with the Geneva-based centre and connect them to the research programme. Unfortunately, its enormous economic and social potential was not recognised and exploited quickly enough within Europe. Even today, this cannot yet be fully gauged.

| 4.5. | Nevertheless, it is often only by setting up new businesses that these ideas can be turned into innovations and innovative products. One of the most important functions of innovation promotion policy is thus to support and facilitate the creation of such new businesses and ensure their survival during the critical first 5-to-10 or so years. |
| --- | --- |

4.5.

Nevertheless, it is often only by setting up new businesses that these ideas can be turned into innovations and innovative products. One of the most important functions of innovation promotion policy is thus to support and facilitate the creation of such new businesses and ensure their survival during the critical first 5-to-10 or so years.

| 4.6. | Although innovations have thus far always benefited human society as a whole, thereby making a decisive contribution to prosperity and competitiveness, they are sometimes confronted with major social and economic obstacles. For the new is often at first perceived as a threat by business, commerce, society and policymakers. |
| --- | --- |

4.6.

Although innovations have thus far always benefited human society as a whole, thereby making a decisive contribution to prosperity and competitiveness, they are sometimes confronted with major social and economic obstacles. For the new is often at first perceived as a threat by business, commerce, society and policymakers.

| 4.7. | Innovations can indeed cause economic and social upheaval, displacing individual sectors and businesses, initially destroying jobs or weakening dominant social classes, and only display their productive potential for society at large over the longer term. Examples include the power loom, the introduction of social partnership, genetic engineering, Google, Amazon, and the introduction of technologies for using renewable energy. Moreover, the ability of society and business (amortisation periods) to adapt can be overwhelmed by overly rapid, innovation-driven changes. |
| --- | --- |

4.7.

Innovations can indeed cause economic and social upheaval, displacing individual sectors and businesses, initially destroying jobs or weakening dominant social classes, and only display their productive potential for society at large over the longer term. Examples include the power loom, the introduction of social partnership, genetic engineering, Google, Amazon, and the introduction of technologies for using renewable energy. Moreover, the ability of society and business (amortisation periods) to adapt can be overwhelmed by overly rapid, innovation-driven changes.

| 4.8. | The resulting concern of individual social groups has prompted the Commission to introduce (13) the concept of ‘responsible research and innovation’ (14). However, in view of the critical achievements of research and innovation as the engine and foundation of today’s living and scientific standards, and as the essential breeding ground for the historical process of the Enlightenment, from which originate the defining thoughts and ideas of human rights and the division of state powers, the Committee considers this concept to be misleading and one-sided. The Committee therefore recommends reflecting on its impact on the value placed by society on research and innovation. |
| --- | --- |

4.8.

The resulting concern of individual social groups has prompted the Commission to introduce (13) the concept of ‘responsible research and innovation’ (14). However, in view of the critical achievements of research and innovation as the engine and foundation of today’s living and scientific standards, and as the essential breeding ground for the historical process of the Enlightenment, from which originate the defining thoughts and ideas of human rights and the division of state powers, the Committee considers this concept to be misleading and one-sided. The Committee therefore recommends reflecting on its impact on the value placed by society on research and innovation.

| 4.8.1. | It goes without saying that research and innovation must conform to ethical principles and the prevailing laws. |
| --- | --- |

4.8.1.

It goes without saying that research and innovation must conform to ethical principles and the prevailing laws.

| 4.8.2. | However, this requirement applies equally to all other social activities, whether in medicine, business, journalism, lawmaking, politics or the courts, which is why the Committee does not think it is appropriate to establish the concept of responsible conduct exclusively and explicitly in relation to R&I. |
| --- | --- |

4.8.2.

However, this requirement applies equally to all other social activities, whether in medicine, business, journalism, lawmaking, politics or the courts, which is why the Committee does not think it is appropriate to establish the concept of responsible conduct exclusively and explicitly in relation to R&I.

| 4.9. | In addition to these more fundamental obstacles, it is also the sheer density of regulations to be complied with — which are, moreover, fragmented within Europe — which poses the most difficulties for innovative business start-ups, coupled with critical funding issues. |
| --- | --- |

4.9.

In addition to these more fundamental obstacles, it is also the sheer density of regulations to be complied with — which are, moreover, fragmented within Europe — which poses the most difficulties for innovative business start-ups, coupled with critical funding issues.

| 4.9.1. | The Committee therefore reiterates its recommendation (15) that new start-ups below a certain critical size be granted an appropriate exemption period and some leeway. This could be achieved by way of an exemption clause freeing such businesses for this period from most of the otherwise standard administrative rules and requirements of all kinds, so that they can first demonstrate their economic and technical potential. |
| --- | --- |

4.9.1.

The Committee therefore reiterates its recommendation (15) that new start-ups below a certain critical size be granted an appropriate exemption period and some leeway. This could be achieved by way of an exemption clause freeing such businesses for this period from most of the otherwise standard administrative rules and requirements of all kinds, so that they can first demonstrate their economic and technical potential.

| 4.10. | As underlined in previous opinions, to which it explicitly refers in connection with further detailed recommendations — on social innovation, for example — the Committee therefore strongly supports the Commission’s objective of ‘strengthening the broader innovation eco-system and putting in place the right framework conditions to stimulate Europe’s companies to innovate’. Specifically, this means identifying and removing obstacles to innovation. |
| --- | --- |

4.10.

As underlined in previous opinions, to which it explicitly refers in connection with further detailed recommendations — on social innovation, for example — the Committee therefore strongly supports the Commission’s objective of ‘strengthening the broader innovation eco-system and putting in place the right framework conditions to stimulate Europe’s companies to innovate’. Specifically, this means identifying and removing obstacles to innovation.

| 4.10.1. | Overly detailed technical requirements and restrictions can also act as a suffocating corset and an obstacle to innovation. This should be taken into consideration, not least with respect to the detailed requirements introduced by the Commission’s energy efficiency initiative. |
| --- | --- |

4.10.1.

Overly detailed technical requirements and restrictions can also act as a suffocating corset and an obstacle to innovation. This should be taken into consideration, not least with respect to the detailed requirements introduced by the Commission’s energy efficiency initiative.

| 4.10.2. | Efforts to this end should contribute to the objective of best ensuring the prosperity, health and safety of citizens and consumers in a sustainable way in future too. |
| --- | --- |

4.10.2.

Efforts to this end should contribute to the objective of best ensuring the prosperity, health and safety of citizens and consumers in a sustainable way in future too.

| 4.10.3. | It is also worth examining, in the light of historical examples, whether an overly strict interpretation of the precautionary principle, for example in connection with consumer protection or the development of new medical procedures, may sap the courage to seek new and effective solutions. |
| --- | --- |

4.10.3.

It is also worth examining, in the light of historical examples, whether an overly strict interpretation of the precautionary principle, for example in connection with consumer protection or the development of new medical procedures, may sap the courage to seek new and effective solutions.

| 4.11. | In the Committee’s view, despite undeniable European successes in research and development and in many economic sectors, this requires not only completing the single market and the European Research Area, but also analysing the more fundamental reasons why there is a less innovation-friendly climate in Europe than in the USA or in some Asian countries, for example. Why are Google, Microsoft, Facebook and Monsanto not European companies? Or why has Europe not produced a ‘better’ Google or Monsanto — one that better reflects the public’s concerns and has emerged in the sphere of influence of European policy? |
| --- | --- |

4.11.

In the Committee’s view, despite undeniable European successes in research and development and in many economic sectors, this requires not only completing the single market and the European Research Area, but also analysing the more fundamental reasons why there is a less innovation-friendly climate in Europe than in the USA or in some Asian countries, for example. Why are Google, Microsoft, Facebook and Monsanto not European companies? Or why has Europe not produced a ‘better’ Google or Monsanto — one that better reflects the public’s concerns and has emerged in the sphere of influence of European policy?

| 4.12. | What is needed is a fundamental change in social attitudes so that innovations are not seen primarily as a risk or a threat, but rather as an opportunity for further progress, more jobs and European economic strength and competitiveness, and for shaping the European social model. We need a new and better balance between caution and audacity, between small risks and major dangers, and between regulation and freedom of action. |
| --- | --- |

4.12.

What is needed is a fundamental change in social attitudes so that innovations are not seen primarily as a risk or a threat, but rather as an opportunity for further progress, more jobs and European economic strength and competitiveness, and for shaping the European social model. We need a new and better balance between caution and audacity, between small risks and major dangers, and between regulation and freedom of action.

Brussels, 11 December 2014

The President of the European Economic and Social Committee

Henri MALOSSE

---

(1)  COM(2010) 546 final.

1

(2)  Science as Public Culture — Jan Golinski — Cambridge University Press.

2

Science as Public Culture

(3)  See for example OJ C 132, 3.5.2011, p. 39; OJ C 181, 21.6.2012, p. 111; OJ C 44, 15.2.2013, p. 88; OJ C 76, 14.3.2013, p. 31; OJ C 76, 14.3.2013, p. 43; OJ C 341, 21.11.2013, p. 35; OJ C 67, 6.3.2014, p. 132.

3

(4)  See for example Clayton M. Christensen, The Innovator’s Dilemma, Harper Business.

4

The Innovator’s Dilemma

(5)  OJ C 132, 3.5.2011, p. 39.

5

(6)  See footnote 3.

6

(7)  OJ C 218, 11.9.2009, p. 8.

7

(8)  OJ C 67, 6.3.2014, p. 132.

8

(9)  See OJ C 218, 11.9.2009, p. 8.

9

(10)  See OJ C 110, 30.4.2004, p. 3 and again OJ C 76, 14.3.2013, p. 31.

10

(11)  Commission press release from 1 October 2014.

11

(12)  http://home.web.cern.ch/topics/birth-web

12

(13)  See, for example www.consider-project.eu.

13

(14)  See European Commission: Towards Responsible Research and Innovation in the Information and Communication Technologies and Security Technologies Fields — ISBN 978-92-79-20404-3.

14

Towards Responsible Research and Innovation in the Information and Communication Technologies and Security Technologies Fields —

(15)  OJ C 132, 3.5.2011, p. 39.

15

---

| 14.7.2015 | EN | Official Journal of the European Union | C 230/66 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/66

---

Opinion of the European Economic and Social Committee on the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Regulatory Fitness and Performance Programme (REFIT): State of Play and Outlook

(COM(2014) 368 final)

(2015/C 230/10)

| Rapporteur: | Denis MEYNENT |
| --- | --- |

Rapporteur:

Denis MEYNENT

On 1 October 2014 the Commission decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

‘Communication from the Commission to the European Parliament, the Council, the European Social and Economic Committee and the Committee of the Regions — Regulatory Fitness and Performance Programme (REFIT): State of Play and Outlook’

COM(2014) 368 final.

The Section for the Single Market, Production and Consumption, which was responsible for preparing the Committee’s work on the subject, adopted its opinion on 19 November 2014.

At its 503rd plenary session, held on 10 and 11 December 2014 (meeting of 10 December 2014), the European Economic and Social Committee adopted the following opinion by 136 votes to 2, with 4 abstentions.

1.   Conclusions and recommendations

| 1.1. | The EESC takes note of the state of play in implementing the REFIT programme established by the Commission. It is pleased that the Commission is seeking to improve the process and the instruments. With respect to the principle, it draws attention to its previous opinions (1). |
| --- | --- |

1.1.

The EESC takes note of the state of play in implementing the REFIT programme established by the Commission. It is pleased that the Commission is seeking to improve the process and the instruments. With respect to the principle, it draws attention to its previous opinions (1).

| 1.2. | The EESC is in favour of reducing the constraints on small, medium and micro-enterprises (the SME test) and the public when the objective and purpose for which regulations were put in place can be achieved more simply. However, it draws attention to the fact that, to ensure sound public governance, relevant and essential data and information for establishing, monitoring and assessing the policies must also be available. |
| --- | --- |

1.2.

The EESC is in favour of reducing the constraints on small, medium and micro-enterprises (the SME test) and the public when the objective and purpose for which regulations were put in place can be achieved more simply. However, it draws attention to the fact that, to ensure sound public governance, relevant and essential data and information for establishing, monitoring and assessing the policies must also be available.

| 1.3. | The EESC notes that the Think Small First principle is not intended to exempt micro-enterprises and SMEs from the application of the legislation and cannot be used for this purpose. On the contrary, its aim is to ensure that when legislation is drawn up, the fact that it will also apply to small enterprises is taken into account, without affecting its intended objective. |
| --- | --- |

1.3.

The EESC notes that the Think Small First principle is not intended to exempt micro-enterprises and SMEs from the application of the legislation and cannot be used for this purpose. On the contrary, its aim is to ensure that when legislation is drawn up, the fact that it will also apply to small enterprises is taken into account, without affecting its intended objective.

| 1.3.1. | The EESC emphasises that the application of this principle must not conflict with the general interest, which means in particular that the public, workers and consumers must be protected against any risks they might incur. |
| --- | --- |

1.3.1.

The EESC emphasises that the application of this principle must not conflict with the general interest, which means in particular that the public, workers and consumers must be protected against any risks they might incur.

| 1.4. | The Committee is extremely concerned by the findings on the shortcomings of social and environmental impact assessments and the follow-up to consultations. It calls on the Commission to be more transparent and to give fully documented reasons why a particular measure or proposal is or is not to be submitted for impact assessment and/or an ex post analysis. |
| --- | --- |

1.4.

The Committee is extremely concerned by the findings on the shortcomings of social and environmental impact assessments and the follow-up to consultations. It calls on the Commission to be more transparent and to give fully documented reasons why a particular measure or proposal is or is not to be submitted for impact assessment and/or an ex post analysis.

| 1.5. | The EESC calls on the Commission to provide integrated, balanced analysis of the economic, social and environmental dimensions. Indeed, it believes that the Commission’s intended goals will only be reached if all of these aspects, and the concerns of all stakeholders, are taken into consideration. |
| --- | --- |

1.5.

The EESC calls on the Commission to provide integrated, balanced analysis of the economic, social and environmental dimensions. Indeed, it believes that the Commission’s intended goals will only be reached if all of these aspects, and the concerns of all stakeholders, are taken into consideration.

| 1.6. | In the EESC’s view, smart regulation gives no dispensation from the obligation to comply with the regulations on protecting the public, consumers and workers, or with gender equality and environmental standards and must not prevent improvements from being made to them. |
| --- | --- |

1.6.

In the EESC’s view, smart regulation gives no dispensation from the obligation to comply with the regulations on protecting the public, consumers and workers, or with gender equality and environmental standards and must not prevent improvements from being made to them.

| 1.7. | The EESC considers that smart regulation must comply with the social dimension of the internal market as provided for by the Treaty, in particular as regards the transposition of the agreements negotiated within the European social dialogue. |
| --- | --- |

1.7.

The EESC considers that smart regulation must comply with the social dimension of the internal market as provided for by the Treaty, in particular as regards the transposition of the agreements negotiated within the European social dialogue.

| 1.8. | The Committee urges the Commission to take better account of the points of view expressed during consultations and to justify the way in which it has, or has not, taken them into consideration. More generally, it proposes that the Commission put these consultations on a more structured institutional and representative foundation by taking advantage of the resources of the representative consultative bodies that already exist at the European, national and regional levels. |
| --- | --- |

1.8.

The Committee urges the Commission to take better account of the points of view expressed during consultations and to justify the way in which it has, or has not, taken them into consideration. More generally, it proposes that the Commission put these consultations on a more structured institutional and representative foundation by taking advantage of the resources of the representative consultative bodies that already exist at the European, national and regional levels.

| 1.9. | The EESC intends to respond positively to the general call for cooperation with the social partners and civil society launched by the Commission. The Committee is ready to play a more active role in the programme, without prejudicing the other forms of European social dialogue. |
| --- | --- |

1.9.

The EESC intends to respond positively to the general call for cooperation with the social partners and civil society launched by the Commission. The Committee is ready to play a more active role in the programme, without prejudicing the other forms of European social dialogue.

| 1.10. | The EESC is willing to endorse the ex post analyses the Commission is proposing, if they are conducted after a certain time period has elapsed. Otherwise, REFIT would become a source of permanent legal uncertainty for the public and businesses. |
| --- | --- |

1.10.

The EESC is willing to endorse the ex post analyses the Commission is proposing, if they are conducted after a certain time period has elapsed. Otherwise, REFIT would become a source of permanent legal uncertainty for the public and businesses.

| 1.11. | In the Committee’s view, the Commission has acquired the necessary internal expertise to improve the process. It will only endorse the Commission’s proposal to create a new High Level Group for work to be done in future if this represents real added value. |
| --- | --- |

1.11.

In the Committee’s view, the Commission has acquired the necessary internal expertise to improve the process. It will only endorse the Commission’s proposal to create a new High Level Group for work to be done in future if this represents real added value.

2.   Gist of the Commission document — Regulatory Fitness and Performance Programme (REFIT): Results and Next Steps

| 2.1. | In line with its previous REFIT communications (2) and in connection with its communications on Better Regulation and Smart Regulation, (3) the European Commission notes that EU regulation plays a key role in underpinning growth and jobs. |
| --- | --- |

2.1.

In line with its previous REFIT communications (2) and in connection with its communications on Better Regulation and Smart Regulation, (3) the European Commission notes that EU regulation plays a key role in underpinning growth and jobs.

| 2.2. | The Commission emphasises that this has raised considerable expectations both from companies (which need the EU to ensure a level playing field and facilitate competitiveness) and the public (which looks to the European level to protect their interests, particularly in regard to health and safety, the quality of the environment and the right to privacy). |
| --- | --- |

2.2.

The Commission emphasises that this has raised considerable expectations both from companies (which need the EU to ensure a level playing field and facilitate competitiveness) and the public (which looks to the European level to protect their interests, particularly in regard to health and safety, the quality of the environment and the right to privacy).

| 2.3. | The challenge is to keep this legislation simple — not to go beyond what is strictly necessary to achieve policy goals and to avoid overlapping layers of regulation. |
| --- | --- |

2.3.

The challenge is to keep this legislation simple — not to go beyond what is strictly necessary to achieve policy goals and to avoid overlapping layers of regulation.

3.   General comments

| 3.1. | The EESC supports the general objectives of the Commission’s REFIT programme and draws attention to its opinions (4) which cover the Better Regulation programme and Smart Regulation, including the responses to the needs of small and medium-sized enterprises. |
| --- | --- |

3.1.

The EESC supports the general objectives of the Commission’s REFIT programme and draws attention to its opinions (4) which cover the Better Regulation programme and Smart Regulation, including the responses to the needs of small and medium-sized enterprises.

| 3.2. | The EESC supports cutting the red tape and constraints on small, medium-sized and micro-enterprises and the public. The Commission should focus on quality rather than quantity and prioritise reductions in red tape, which has been seen to translate into a cost on businesses, a brake on their competitiveness and an obstacle to innovation and job creation. It goes without saying that when such steps are taken, consideration must be given to the aim and purpose for which obligations were put in place. |
| --- | --- |

3.2.

The EESC supports cutting the red tape and constraints on small, medium-sized and micro-enterprises and the public. The Commission should focus on quality rather than quantity and prioritise reductions in red tape, which has been seen to translate into a cost on businesses, a brake on their competitiveness and an obstacle to innovation and job creation. It goes without saying that when such steps are taken, consideration must be given to the aim and purpose for which obligations were put in place.

| 3.3. | Whilst it is important to avoid any duplication of requests for information, to ensure sound public governance relevant and essential data and information for establishing, monitoring and assessing the policies must also be available. |
| --- | --- |

3.3.

Whilst it is important to avoid any duplication of requests for information, to ensure sound public governance relevant and essential data and information for establishing, monitoring and assessing the policies must also be available.

| 3.4. | The EESC shares the Commission’s view that the need for legal certainty and predictability argue against quick fixes. It considers that any changes to the legislation must be carefully thought through and situated in a long-term perspective in order to ensure predictability, legal certainty and transparency. |
| --- | --- |

3.4.

The EESC shares the Commission’s view that the need for legal certainty and predictability argue against quick fixes. It considers that any changes to the legislation must be carefully thought through and situated in a long-term perspective in order to ensure predictability, legal certainty and transparency.

| 3.5. | The EESC notes that smart regulation gives no dispensation from the obligation to comply with the regulations on protecting the public, consumers and workers (‘[It] should neither undermine workers’ rights nor reduce their basic level of protection, especially in terms of occupational health and safety’ (5)) and with gender equality and environmental standards. Smart regulation must allow for change and improvements. |
| --- | --- |

3.5.

The EESC notes that smart regulation gives no dispensation from the obligation to comply with the regulations on protecting the public, consumers and workers (‘[It] should neither undermine workers’ rights nor reduce their basic level of protection, especially in terms of occupational health and safety’ (5)) and with gender equality and environmental standards. Smart regulation must allow for change and improvements.

| 3.6. | In this respect, the EESC is pleased that the Commission has reconfirmed that the REFIT programme does not question established policy objectives or come at the expense of the health and safety of citizens, consumers, workers or of the environment. However, the EESC emphasises that it is not solely a question of not damaging citizens’ health. It also entails ensuring that action is in the general interest and provides appropriate protection to the public against the risks they incur, whether or not these are connected with their health. Similar concerns were expressed by the European Council of 26/27 June 2014 and by the European Parliament at its session on 4 February 2014 (6). |
| --- | --- |

3.6.

In this respect, the EESC is pleased that the Commission has reconfirmed that the REFIT programme does not question established policy objectives or come at the expense of the health and safety of citizens, consumers, workers or of the environment. However, the EESC emphasises that it is not solely a question of not damaging citizens’ health. It also entails ensuring that action is in the general interest and provides appropriate protection to the public against the risks they incur, whether or not these are connected with their health. Similar concerns were expressed by the European Council of 26/27 June 2014 and by the European Parliament at its session on 4 February 2014 (6).

| 3.7. | The EESC considers that smart regulation must comply with the social dimension of the internal market as provided for by the Treaty, in particular as regards the transposition of the agreements negotiated in the framework of the European social dialogue. |
| --- | --- |

3.7.

The EESC considers that smart regulation must comply with the social dimension of the internal market as provided for by the Treaty, in particular as regards the transposition of the agreements negotiated in the framework of the European social dialogue.

| 3.8. | In the Committee’s view, REFIT must, as the Commission wishes, be an objective that is shared at EU and national level and with the social partners and other stakeholders. Accordingly, it is essential to build trust and ensure that no misunderstandings persist over the programme’s goals, particularly since some of the measures that have already been announced or implemented (7) have aroused the mistrust of some stakeholders and citizens. |
| --- | --- |

3.8.

In the Committee’s view, REFIT must, as the Commission wishes, be an objective that is shared at EU and national level and with the social partners and other stakeholders. Accordingly, it is essential to build trust and ensure that no misunderstandings persist over the programme’s goals, particularly since some of the measures that have already been announced or implemented (7) have aroused the mistrust of some stakeholders and citizens.

| 3.9. | Indeed, the EESC believes that the Commission’s intended goals will only be reached if the concerns of all stakeholders are taken into consideration. |
| --- | --- |

3.9.

Indeed, the EESC believes that the Commission’s intended goals will only be reached if the concerns of all stakeholders are taken into consideration.

4.   Implementation of the programme

| 4.1. | The EESC takes note of the state of play in implementing the REFIT programme. The Committee is particularly pleased that the Commission is seeking to improve the programme’s instruments by holding a consultation on impact assessments and on the consultation process itself. Indeed, it is crucial that the methodology behind these horizontal elements of the programme should not be open to criticism. |
| --- | --- |

4.1.

The EESC takes note of the state of play in implementing the REFIT programme. The Committee is particularly pleased that the Commission is seeking to improve the programme’s instruments by holding a consultation on impact assessments and on the consultation process itself. Indeed, it is crucial that the methodology behind these horizontal elements of the programme should not be open to criticism.

| 4.2. | Ex post analyses and impact assessments must not be placed so closely together that democratically adopted rules cannot be properly applied. The EESC is willing to endorse the ex post analyses the Commission is proposing, if they are conducted after a certain time period has elapsed. In effect, ex post analysis is only meaningful if a certain number of years have elapsed between the deadline for the transposition of a regulation into national law and the ex post analysis in question. Otherwise, REFIT would become a source of permanent legal uncertainty for the public and businesses. |
| --- | --- |

4.2.

Ex post analyses and impact assessments must not be placed so closely together that democratically adopted rules cannot be properly applied. The EESC is willing to endorse the ex post analyses the Commission is proposing, if they are conducted after a certain time period has elapsed. In effect, ex post analysis is only meaningful if a certain number of years have elapsed between the deadline for the transposition of a regulation into national law and the ex post analysis in question. Otherwise, REFIT would become a source of permanent legal uncertainty for the public and businesses.

| 4.3. | The EESC welcomes the fact that the Commission has drawn attention more than once to the need to involve the social partners, civil society and SMEs. The Committee notes that, hitherto, this has been a statement of principle rather than a systematic practice aimed at taking account of the proposals put forward. |
| --- | --- |

4.3.

The EESC welcomes the fact that the Commission has drawn attention more than once to the need to involve the social partners, civil society and SMEs. The Committee notes that, hitherto, this has been a statement of principle rather than a systematic practice aimed at taking account of the proposals put forward.

| 4.3.1. | Similarly, the EESC considers that is vital to involve and consult the bodies that represent civil society, the trade unions and SMEs, using the most appropriate channels. |
| --- | --- |

4.3.1.

Similarly, the EESC considers that is vital to involve and consult the bodies that represent civil society, the trade unions and SMEs, using the most appropriate channels.

4.4.   With regard to impact assessments

| 4.4.1. | The Impact Assessment Board reports for 2012 and 2013 (8) identify the shortcomings of the process and the steps that have been taken to improve it.
  The key points include:






  — | many impact assessments fail to properly integrate views and report them in an unbiased way, |
| --- | --- | --- |

4.4.1.

The Impact Assessment Board reports for 2012 and 2013 (8) identify the shortcomings of the process and the steps that have been taken to improve it.

The key points include:

—

many impact assessments fail to properly integrate views and report them in an unbiased way,

| — | further efforts are still needed, particularly with respect to consideration of genuinely alternative options (clearer description of the options, the justification and proportionality of alternatives) and the provision of sufficiently detailed information on the likely impact of all approaches (and not only the preferred one), |
| --- | --- |

—

further efforts are still needed, particularly with respect to consideration of genuinely alternative options (clearer description of the options, the justification and proportionality of alternatives) and the provision of sufficiently detailed information on the likely impact of all approaches (and not only the preferred one),

| — | the fact that the quality of the analysis for (positive or negative) social impacts remains a concern, as do the scope and depth of analysis of environmental impacts, |
| --- | --- |

—

the fact that the quality of the analysis for (positive or negative) social impacts remains a concern, as do the scope and depth of analysis of environmental impacts,

| — | the need for ex post evaluations of existing EU legislation and programmes, |
| --- | --- |

—

the need for ex post evaluations of existing EU legislation and programmes,

| — | commitment to an integrated assessment of economic, social and environmental impacts. |
| --- | --- |

—

commitment to an integrated assessment of economic, social and environmental impacts.

| 4.4.2. | In its 2013 report, the Impact Assessment Board draws attention to the significant reduction in the number of Board opinions regarding the analysis of impacts on SMEs and micro-enterprises. Its explanation is that this reflects the Commission’s commitment to take these effects into account, including by applying the so-called reverse burden of proof for micro-enterprises. The Impact Assessment Board stresses that the number of analyses of competitiveness impacts increased considerably in 2013 (by 30 %) compared with 2012. However, once again, concerns were raised about the lack of transparency surrounding the opinions presented and critical views expressed during consultations and about the need to explain how stakeholders’ concerns had been taken into account. |
| --- | --- |

4.4.2.

In its 2013 report, the Impact Assessment Board draws attention to the significant reduction in the number of Board opinions regarding the analysis of impacts on SMEs and micro-enterprises. Its explanation is that this reflects the Commission’s commitment to take these effects into account, including by applying the so-called reverse burden of proof for micro-enterprises. The Impact Assessment Board stresses that the number of analyses of competitiveness impacts increased considerably in 2013 (by 30 %) compared with 2012. However, once again, concerns were raised about the lack of transparency surrounding the opinions presented and critical views expressed during consultations and about the need to explain how stakeholders’ concerns had been taken into account.

| 4.4.3. | The EESC is pleased that the Commission and the Impact Assessment Board are committed to improving the quality of the process. It notes that preventive impact assessments on SMEs and micro-enterprises appear to be given greater consideration than in the past, which is in line with its previous opinions on the Small Business Act, the Think Small First principle and the SME test. The EESC stresses that these efforts must be pursued. It notes that the Think Small First principle is not intended to exempt micro-enterprises and SMEs from the application of the legislation and cannot be used for this purpose. On the contrary, the aim is to ensure that when legislation is drawn up, the fact that it will also apply to small enterprises is taken into account, without affecting its intended objective. The Committee considers that the application of these principles cannot justify using the size of an enterprise as the sole factor in determining the scope of a regulation and must not conflict with the general interest, which means in particular that the public, workers and consumers must be protected against any risks they might incur. |
| --- | --- |

4.4.3.

The EESC is pleased that the Commission and the Impact Assessment Board are committed to improving the quality of the process. It notes that preventive impact assessments on SMEs and micro-enterprises appear to be given greater consideration than in the past, which is in line with its previous opinions on the Small Business Act, the Think Small First principle and the SME test. The EESC stresses that these efforts must be pursued. It notes that the Think Small First principle is not intended to exempt micro-enterprises and SMEs from the application of the legislation and cannot be used for this purpose. On the contrary, the aim is to ensure that when legislation is drawn up, the fact that it will also apply to small enterprises is taken into account, without affecting its intended objective. The Committee considers that the application of these principles cannot justify using the size of an enterprise as the sole factor in determining the scope of a regulation and must not conflict with the general interest, which means in particular that the public, workers and consumers must be protected against any risks they might incur.

| 4.4.4. | Furthermore, the EESC is extremely concerned by some of the findings referred to above. It notes that the Commission is proposing that a series of other dimensions be addressed alongside the economic, social and environmental impact assessments (9), this despite the fact that the Impact Assessment Board considers the quality of social and environmental impact assessments to be wanting in some cases. The EESC would therefore like assurances that the Commission has the means to conduct all these assessments simultaneously and that they will not be detrimental to the quality, balance, objectives, measurement tools and parameters that have been announced. |
| --- | --- |

4.4.4.

Furthermore, the EESC is extremely concerned by some of the findings referred to above. It notes that the Commission is proposing that a series of other dimensions be addressed alongside the economic, social and environmental impact assessments (9), this despite the fact that the Impact Assessment Board considers the quality of social and environmental impact assessments to be wanting in some cases. The EESC would therefore like assurances that the Commission has the means to conduct all these assessments simultaneously and that they will not be detrimental to the quality, balance, objectives, measurement tools and parameters that have been announced.

| 4.4.5. | Lastly, the reason why some projects and proposals are not submitted for impact assessments, in particular in the Ecofin sector (two pack, six pack), is not clear and this feeds into the perception amongst some stakeholders that the process is skewed towards the economic (and competitiveness) aspects above the other two pillars. As the Commission itself has stressed, the goal of simplification must be carried forward and shared by all and be based on robust and credible analysis. |
| --- | --- |

4.4.5.

Lastly, the reason why some projects and proposals are not submitted for impact assessments, in particular in the Ecofin sector (two pack, six pack), is not clear and this feeds into the perception amongst some stakeholders that the process is skewed towards the economic (and competitiveness) aspects above the other two pillars. As the Commission itself has stressed, the goal of simplification must be carried forward and shared by all and be based on robust and credible analysis.

| 4.4.6. | The EESC calls on the Commission:






  — | to be more transparent and to give fully documented reasons why a particular measure or proposal is to be submitted for impact assessment, |
| --- | --- | --- |

4.4.6.

The EESC calls on the Commission:

—

to be more transparent and to give fully documented reasons why a particular measure or proposal is to be submitted for impact assessment,

| — | to ensure that the general interest is taken into account, |
| --- | --- |

—

to ensure that the general interest is taken into account,

| — | to take steps to ensure that all three dimensions (economic, social and environmental) are taken into account in a more balanced way and to ensure the quality of the assessments at this level, |
| --- | --- |

—

to take steps to ensure that all three dimensions (economic, social and environmental) are taken into account in a more balanced way and to ensure the quality of the assessments at this level,

| — | to take better account of the points of view expressed during consultations and to justify the way in which it has, or has not, taken them into consideration. |
| --- | --- |

—

to take better account of the points of view expressed during consultations and to justify the way in which it has, or has not, taken them into consideration.

| 4.4.7. | The EESC is disappointed that the European Commission’s communication does not make explicit reference to its role as a civil society advisory body which issues opinions on key aspects of EU legislation. It intends to respond positively to the more general appeal for cooperation which the Commission has addressed to the social partners and civil society and is therefore prepared to cooperate more actively in the drive to improve the process, either through consultation or by contributing expertise. |
| --- | --- |

4.4.7.

The EESC is disappointed that the European Commission’s communication does not make explicit reference to its role as a civil society advisory body which issues opinions on key aspects of EU legislation. It intends to respond positively to the more general appeal for cooperation which the Commission has addressed to the social partners and civil society and is therefore prepared to cooperate more actively in the drive to improve the process, either through consultation or by contributing expertise.

4.5.   With regard to the consultation process

| 4.5.1. | Although the Commission stresses the key role of stakeholder consultations in the process, their outcomes are not always taken into account. Moreover, the quality of the process is being undermined by the cumulative impact of the response rates to the open consultations launched by the Commission, questions about the representativeness of the respondents and the unrepresentative findings that sometimes result. The EESC wonders whether the explanation for these findings might not lie in the increasing number of consultations and the time, staff and resources that need to be deployed in order to provide an informed response. Furthermore, the questions are sometimes framed in a leading way, which may give rise to doubts about the objectivity and impartiality of the process. |
| --- | --- |

4.5.1.

Although the Commission stresses the key role of stakeholder consultations in the process, their outcomes are not always taken into account. Moreover, the quality of the process is being undermined by the cumulative impact of the response rates to the open consultations launched by the Commission, questions about the representativeness of the respondents and the unrepresentative findings that sometimes result. The EESC wonders whether the explanation for these findings might not lie in the increasing number of consultations and the time, staff and resources that need to be deployed in order to provide an informed response. Furthermore, the questions are sometimes framed in a leading way, which may give rise to doubts about the objectivity and impartiality of the process.

| 4.5.2. | ‘Consultation’ is the cornerstone of legislative proposals that are of good quality and based on robust evidence. Early and sufficient consultations with businesses, particularly SMEs, and their representatives would allow decisions to be taken on the basis of factual analysis and the expertise and views of the stakeholders to whom the legislation is addressed and who will be involved in its implementation. The same goes for the various organisations representing citizens (workers, welfare recipients, consumers, etc.). |
| --- | --- |

4.5.2.

‘Consultation’ is the cornerstone of legislative proposals that are of good quality and based on robust evidence. Early and sufficient consultations with businesses, particularly SMEs, and their representatives would allow decisions to be taken on the basis of factual analysis and the expertise and views of the stakeholders to whom the legislation is addressed and who will be involved in its implementation. The same goes for the various organisations representing citizens (workers, welfare recipients, consumers, etc.).

| 4.5.3. | The EESC calls for absolute priority to be given to the social partners and intermediary organisations concerned. Consulting SMEs and consumers directly and individually has proven to be ineffective, anecdotal and unrepresentative. In addition, the organisations concerned must be given a genuine opportunity to take part in preparing consultations and drawing up questionnaires. |
| --- | --- |

4.5.3.

The EESC calls for absolute priority to be given to the social partners and intermediary organisations concerned. Consulting SMEs and consumers directly and individually has proven to be ineffective, anecdotal and unrepresentative. In addition, the organisations concerned must be given a genuine opportunity to take part in preparing consultations and drawing up questionnaires.

| 4.5.4. | The EESC therefore wonders whether it might not be preferable to put these consultations on a more structured institutional and representative foundation by taking advantage of the resources of the representative consultative bodies that already exist and creating others, should this be appropriate or necessary. |
| --- | --- |

4.5.4.

The EESC therefore wonders whether it might not be preferable to put these consultations on a more structured institutional and representative foundation by taking advantage of the resources of the representative consultative bodies that already exist and creating others, should this be appropriate or necessary.

| 4.5.5. | The EESC proposes that another departure point for consultations should be the representative bodies that exist at both EU and national level. It also notes that, failing this, there are other consultation arrangements that could serve the same purpose. |
| --- | --- |

4.5.5.

The EESC proposes that another departure point for consultations should be the representative bodies that exist at both EU and national level. It also notes that, failing this, there are other consultation arrangements that could serve the same purpose.

| 4.5.6. | The Committee recommends that use be made of the expertise and potential of the European federations of employers, businesses, trade unions and NGOs and that they, rather than private consultants, also be entrusted with the task of conducting the necessary surveys and studies. |
| --- | --- |

4.5.6.

The Committee recommends that use be made of the expertise and potential of the European federations of employers, businesses, trade unions and NGOs and that they, rather than private consultants, also be entrusted with the task of conducting the necessary surveys and studies.

| 4.5.7. | In any event, the EESC is ready to assume its responsibilities in this context, without prejudicing the other arrangements for the European social dialogue. |
| --- | --- |

4.5.7.

In any event, the EESC is ready to assume its responsibilities in this context, without prejudicing the other arrangements for the European social dialogue.

5.   Specific comments

| 5.1. | The EESC believes that the REFIT programme should be at once ambitious and simple, clear and transparent. |
| --- | --- |

5.1.

The EESC believes that the REFIT programme should be at once ambitious and simple, clear and transparent.

| 5.2. | A certain degree of confusion has resulted from the proliferation of titles for the various agendas and programmes (Better Regulation, Smart Regulation, Think Small First, etc.). |
| --- | --- |

5.2.

A certain degree of confusion has resulted from the proliferation of titles for the various agendas and programmes (Better Regulation, Smart Regulation, Think Small First, etc.).

The ranking of these programmes and projects and the relationship between them should be clarified, so that the public understands to whom they are addressed.

| 5.3. | The transparency of the procedures is being undermined by the increase in the number of bodies involved in the process and the channels for consultation and dealing with the proposals. |
| --- | --- |

5.3.

The transparency of the procedures is being undermined by the increase in the number of bodies involved in the process and the channels for consultation and dealing with the proposals.

| 5.4. | With the same concern for efficiency and transparency and in view of the mechanisms that already exist, including those at the European Parliament level, the EESC will only endorse the Commission’s proposal to create a new High Level Group for work to be done in future if it is proven that this represents real added value. In the Committee’s view, the Commission has acquired the necessary internal expertise to improve the process. |
| --- | --- |

5.4.

With the same concern for efficiency and transparency and in view of the mechanisms that already exist, including those at the European Parliament level, the EESC will only endorse the Commission’s proposal to create a new High Level Group for work to be done in future if it is proven that this represents real added value. In the Committee’s view, the Commission has acquired the necessary internal expertise to improve the process.

| 5.5. | The EESC notes that the Commission believes that impact assessments should be carried out at all stages of the legislative process, including on the amendments introduced by the co-legislators. In a system where there are two co-legislators and where seeking comprise is the rule, it does not seem appropriate that one of them should have the last word on impact assessment (with the risk this would entail of distorting the rules on decision-making established in the Treaty). |
| --- | --- |

5.5.

The EESC notes that the Commission believes that impact assessments should be carried out at all stages of the legislative process, including on the amendments introduced by the co-legislators. In a system where there are two co-legislators and where seeking comprise is the rule, it does not seem appropriate that one of them should have the last word on impact assessment (with the risk this would entail of distorting the rules on decision-making established in the Treaty).

| 5.6. | Furthermore, the EESC also notes that the objective of the REFIT programme also encompasses the application of law in the EU. The Commission’s impact assessment guidelines also allow for consideration of whether, in some instances, effective application of the existing legislation might not resolve the problem in question. |
| --- | --- |

5.6.

Furthermore, the EESC also notes that the objective of the REFIT programme also encompasses the application of law in the EU. The Commission’s impact assessment guidelines also allow for consideration of whether, in some instances, effective application of the existing legislation might not resolve the problem in question.

| 5.7. | The EESC welcomes the efforts the Commission has made to support and monitor effective transposition of directives in the Member States. It stresses the findings set out in the 30th Annual Report on Monitoring the Application of EU Law (10), which mentions that the areas most subject to delays and infringements are the environment, transport and taxation. The EESC is concerned that, for 2012, the problems were concentrated, essentially and in descending order, in the transport, health, consumers, environment, internal market and services sectors. |
| --- | --- |

5.7.

The EESC welcomes the efforts the Commission has made to support and monitor effective transposition of directives in the Member States. It stresses the findings set out in the 30th Annual Report on Monitoring the Application of EU Law (10), which mentions that the areas most subject to delays and infringements are the environment, transport and taxation. The EESC is concerned that, for 2012, the problems were concentrated, essentially and in descending order, in the transport, health, consumers, environment, internal market and services sectors.

| 5.8. | The EESC believes that indiscriminate exemptions, in any sector, would allow Member States to legislate ‘à la carte’ at the national level, thereby adding to legislative complexity and legal insecurity and uncertainty in the internal market. The EESC notes that in its previous opinions it urged that, where appropriate, more systematic use be made of regulations as an instrument which, as well as providing better legal certainty, would partially resolve this problem. |
| --- | --- |

5.8.

The EESC believes that indiscriminate exemptions, in any sector, would allow Member States to legislate ‘à la carte’ at the national level, thereby adding to legislative complexity and legal insecurity and uncertainty in the internal market. The EESC notes that in its previous opinions it urged that, where appropriate, more systematic use be made of regulations as an instrument which, as well as providing better legal certainty, would partially resolve this problem.

| 5.9. | The EESC draws attention to its previous opinions on ‘gold-plating’ and smart regulation, in which it called for the quality of the legal texts adopted to be improved. It believes that further efforts need to be made in this direction to ensure the effective implementation of the policy objectives pursued by the European Union. |
| --- | --- |

5.9.

The EESC draws attention to its previous opinions on ‘gold-plating’ and smart regulation, in which it called for the quality of the legal texts adopted to be improved. It believes that further efforts need to be made in this direction to ensure the effective implementation of the policy objectives pursued by the European Union.

| 5.10. | The Committee also notes that, in some cases, self-regulation or co-regulation might prove to be an effective means of prevention or useful complement to legislation duly framed in a broad legislative framework that is clear, well-defined and rooted in the principles of transparency, independence, efficiency and accountability. |
| --- | --- |

5.10.

The Committee also notes that, in some cases, self-regulation or co-regulation might prove to be an effective means of prevention or useful complement to legislation duly framed in a broad legislative framework that is clear, well-defined and rooted in the principles of transparency, independence, efficiency and accountability.

Brussels, 10 December 2014

The President of the European Economic and Social Committee

Henri MALOSSE

---

(1)  OJ C 48, 15.2.2011, p. 107, OJ C 248, 25.8.2011, p. 87 and OJ C 327, 12.11.2013, p. 33.

1

(2)  On EU Regulatory Fitness, COM(2012) 746 final and on Regulatory Fitness and Performance Programme (REFIT): Results and Next Steps, COM(2013) 685 final.

2

(3)  Third strategic review of Better Regulation in the European Union, COM(2009) 15 final; communication from the Commission on Smart Regulation in the European Union, COM(2010) 543 final; communication from the Commission on Smart Regulation — Responding to the needs of small and medium-sized enterprises, COM(2013) 122 final.

3

(4)  OJ C 327, 12.11.2013, p. 33, OJ C 248, 25.8.2011, p. 87 and OJ C 48, 15.2.2011, p. 107.

4

(5)  OJ C 327, 12.11.2013, p. 33.

5

(6)  European Parliament resolution of 4 February 2014 on EU Regulatory Fitness and Subsidiarity and Proportionality — 19th report on Better Lawmaking covering the year 2011, which, as well as emphasising that legislation should be simple, effective and efficient, easy to understand, accessible, and deliver benefits at minimum cost, stresses that ‘evaluating the impact of new regulations on SMEs or on large companies must neither result in discrimination between workers on the basis of the size of the companies that employ them nor erode workers’ fundamental rights, including the right to information and consultation, or their working conditions, well-being at work and rights to social security, nor must it hinder improvements to these rights or their safeguarding at the workplace in the face of existing and new risks connected with work’.

6

19th report on Better Lawmaking covering the year 2011

The European Council of 26 and 27 June 2014 stated: ‘The Commission, the other EU institutions and the Member States are invited to continue the implementation of the REFIT programme in an ambitious way, taking into account consumer and employees protection as well as health and environment concerns’.

(7)  This relates specifically to REACH, the environment, the acquis on health and safety at work, the protection of pregnant workers and better access to parental leave, occupational safety and health for hairdressers, musculoskeletal disorders, carcinogens and mutagens, tachographs, working time, part-time work, temporary work, information and consultation and information about work contracts, the labelling of food or products linked with the environment, instructions for the use of medicinal products and obligations concerning information about the cost of financial services.

7

acquis

(8)  IAB Report 2012, IAB Report 2013.

8

(9)  Complete list of all the reference documents pertaining to impact assessment on the Commission’s website (in English): Commission Impact Assessment Guidelines (January 2009) Guidelines; Annexes 1 — 13; Other reference documents from the DGs Operational Guidelines to Assess Impacts on Micro-Enterprises (Secretariat-General + DG Enterprise and Industry); Operational Guidance for Assessing Impacts on Sectoral Competitiveness within the Commission Impact Assessment System — A ‘Competitiveness Proofing’ Toolkit for use in Impact Assessments; Operational Guidance on taking account of Fundamental Rights in Commission Impact Assessments; Assessing Social Impacts; Assessing Territorial Impacts: Operational guidance on how to assess regional and local impacts within the Commission Impact Assessment System.

9

(10)  http://ec.europa.eu/eu_law/docs/docs_infringements/annual_report_30/com_2013_726_en.pdf

10

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| 14.7.2015 | EN | Official Journal of the European Union | C 230/72 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/72

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Opinion of the European Economic and Social Committee on the ‘Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee — Towards a renewed consensus on the enforcement of Intellectual Property Rights: An EU Action Plan’

(COM(2014) 392 final)

(2015/C 230/11)

| Rapporteur: | Pedro Augusto ALMEIDA FREIRE |
| --- | --- |

Rapporteur:

Pedro Augusto ALMEIDA FREIRE

On 16 July 2014 the European Commission decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee — Towards a renewed consensus on the enforcement of Intellectual Property Rights: An EU Action Plan

COM(2014) 392 final.

The Section for the Single Market, Production and Consumption, which was responsible for preparing the Committee’s work on the subject, adopted its opinion on 19 November 2014.

At its 503rd plenary session, held on 10 and 11 December 2014 (meeting of 10 December 2014), the European Economic and Social Committee adopted the following opinion by 144 votes to three with two abstentions.

1.   Conclusions and recommendations

| 1.1. | The EESC endorses the Commission’s general approach, which involves adopting:






  — | an action plan to address infringements of intellectual property rights in the European Union. This action plan outlines a series of measures which aim to refocus the EU’s policy for the enforcement of intellectual property rights on infringements committed on a commercial scale, in accordance with the ‘follow the money’ approach, and |
| --- | --- | --- |

1.1.

The EESC endorses the Commission’s general approach, which involves adopting:

—

an action plan to address infringements of intellectual property rights in the European Union. This action plan outlines a series of measures which aim to refocus the EU’s policy for the enforcement of intellectual property rights on infringements committed on a commercial scale, in accordance with the ‘follow the money’ approach, and

| — | a strategy for the protection and enforcement of intellectual property rights in third countries, which aims to identify an approach at international level by examining recent developments and putting forward solutions to improve the methods of action currently available to the Commission to promote more stringent norms in the area of intellectual property in third countries and eliminate the trade in counterfeit goods; |
| --- | --- |

—

a strategy for the protection and enforcement of intellectual property rights in third countries, which aims to identify an approach at international level by examining recent developments and putting forward solutions to improve the methods of action currently available to the Commission to promote more stringent norms in the area of intellectual property in third countries and eliminate the trade in counterfeit goods;

in light of the fact that infringements of intellectual property rights are a global phenomenon which, accordingly, deserve to be treated in a holistic manner.

| 1.2. | The EESC supports the action plan’s objective of tackling commercial-scale infringements of intellectual property rights as they undermine investment in innovation and sustainable job creation in the EU and lead to lost tax revenue. |
| --- | --- |

1.2.

The EESC supports the action plan’s objective of tackling commercial-scale infringements of intellectual property rights as they undermine investment in innovation and sustainable job creation in the EU and lead to lost tax revenue.

| 1.3. | The EESC takes note of the increasingly important role played by the Office for Harmonisation in the Internal Market (OHIM) in connection with the preparation and implementation of the European Commission’s strategies for the promotion and enforcement of intellectual property rights, including the ‘multi-targeted’ approach which is part of the action plan. |
| --- | --- |

1.3.

The EESC takes note of the increasingly important role played by the Office for Harmonisation in the Internal Market (OHIM) in connection with the preparation and implementation of the European Commission’s strategies for the promotion and enforcement of intellectual property rights, including the ‘multi-targeted’ approach which is part of the action plan.

| 1.4. | The EESC supports the Commission’s pragmatic approach, which involves giving preference to tools such as the ‘follow the money’ approach and ensuring the participation of the stakeholders concerned. |
| --- | --- |

1.4.

The EESC supports the Commission’s pragmatic approach, which involves giving preference to tools such as the ‘follow the money’ approach and ensuring the participation of the stakeholders concerned.

| 1.5. | The EESC could support the Commission’s ‘multi-targeted’ approach if the quantitative and qualitative aspects of the targets were better defined and specified. In particular, it welcomes the communication campaigns run by the European Observatory on Infringements of Intellectual Property Rights (‘the Observatory’) to raise awareness among young people (1) — as well as among judges and legal practitioners — about the impact and repercussions of IP infringements (2). |
| --- | --- |

1.5.

The EESC could support the Commission’s ‘multi-targeted’ approach if the quantitative and qualitative aspects of the targets were better defined and specified. In particular, it welcomes the communication campaigns run by the European Observatory on Infringements of Intellectual Property Rights (‘the Observatory’) to raise awareness among young people (1) — as well as among judges and legal practitioners — about the impact and repercussions of IP infringements (2).

| 1.6. | The EESC welcomes the attention that the Commission has given to SMEs to facilitate their access to means of judicial redress and also supports the European IPorta project, which is a support system for SMEs (3) taking into account issues linked to the enforcement of intellectual property rights and coordinating national assistance. |
| --- | --- |

1.6.

The EESC welcomes the attention that the Commission has given to SMEs to facilitate their access to means of judicial redress and also supports the European IPorta project, which is a support system for SMEs (3) taking into account issues linked to the enforcement of intellectual property rights and coordinating national assistance.

| 1.7. | The EESC urges the Commission to ensure that the means of accessing and effectively protecting intellectual property in Europe are available and affordable to all businesses, regardless of size. |
| --- | --- |

1.7.

The EESC urges the Commission to ensure that the means of accessing and effectively protecting intellectual property in Europe are available and affordable to all businesses, regardless of size.

| 1.8. | It nonetheless regrets that the Commission’s approach is limited to non-legislative instruments, with no mention of the fact that it might be advisable to assess existing legislative instruments and, indeed, be beneficial to revise them. The EESC emphasises that the Commission could have been more ambitious in this respect and taken this factor into consideration as well. |
| --- | --- |

1.8.

It nonetheless regrets that the Commission’s approach is limited to non-legislative instruments, with no mention of the fact that it might be advisable to assess existing legislative instruments and, indeed, be beneficial to revise them. The EESC emphasises that the Commission could have been more ambitious in this respect and taken this factor into consideration as well.

| 1.9. | The EESC has reservations concerning the role that the Commission seems to give to voluntarily applied schemes, voluntary memoranda of understanding, voluntary agreements and best practice, in a matter that involves counterfeiting and piracy. |
| --- | --- |

1.9.

The EESC has reservations concerning the role that the Commission seems to give to voluntarily applied schemes, voluntary memoranda of understanding, voluntary agreements and best practice, in a matter that involves counterfeiting and piracy.

2.   General comments

| 2.1. | The EU action plan Towards a renewed consensus on the enforcement of Intellectual Property Rights sets out ten specific actions which outline a new policy for creating and using tools to address IP-infringing activity, particularly on a commercial scale. These activities are the most harmful and represent a key challenge for the EU as they undermine investment in innovation and sustainable job creation and lead to lost tax revenue. |
| --- | --- |

2.1.

The EU action plan Towards a renewed consensus on the enforcement of Intellectual Property Rights sets out ten specific actions which outline a new policy for creating and using tools to address IP-infringing activity, particularly on a commercial scale. These activities are the most harmful and represent a key challenge for the EU as they undermine investment in innovation and sustainable job creation and lead to lost tax revenue.

| 2.2. | These new tools which are, for the time being, non-legislative, include a series of measures based on the ‘follow the money’ approach which seeks to prevent commercial scale infringers from accessing means for promoting and distributing counterfeit goods, and to deprive them of their revenue. |
| --- | --- |

2.2.

These new tools which are, for the time being, non-legislative, include a series of measures based on the ‘follow the money’ approach which seeks to prevent commercial scale infringers from accessing means for promoting and distributing counterfeit goods, and to deprive them of their revenue.

| 2.3. | The objectives of the EU action plan Towards a renewed consensus on the enforcement of Intellectual Property Rights, as set out in the Communication from the Commission which is the subject of this opinion, and those of the Strategy for the protection and enforcement of intellectual property rights in third countries, form a joint set of objectives:






  i) | to use all means to effectively dissuade and impede the entry and diffusion on the EU’s internal market of IP-infringing products from third countries; |
| --- | --- | --- |

2.3.

The objectives of the EU action plan Towards a renewed consensus on the enforcement of Intellectual Property Rights, as set out in the Communication from the Commission which is the subject of this opinion, and those of the Strategy for the protection and enforcement of intellectual property rights in third countries, form a joint set of objectives:

i)

to use all means to effectively dissuade and impede the entry and diffusion on the EU’s internal market of IP-infringing products from third countries;

| ii) | to stimulate investment, growth and employment in IP reliant sectors that are so key to our respective economies. |
| --- | --- |

ii)

to stimulate investment, growth and employment in IP reliant sectors that are so key to our respective economies.

| 2.4. | Raising awareness among consumers and producers about the impact of IP infringements through discussions and publicity campaigns also forms an important part of this process. |
| --- | --- |

2.4.

Raising awareness among consumers and producers about the impact of IP infringements through discussions and publicity campaigns also forms an important part of this process.

| 2.5. | At European level, the actions will be implemented by the Commission, where appropriate in partnership with the Office for Harmonization in the Internal Market (OHIM), which since June 2012 has housed the Observatory (4). A study published by the Observatory on 25 November 2013 (5) revealed that its respondents — particularly young people — were unaware of the scale of the impact that infringements of IP could have on maintaining and creating jobs related to intellectual property. They also showed that young Europeans consider that the infrastructure for intellectual property rights primarily benefits large corporations. |
| --- | --- |

2.5.

At European level, the actions will be implemented by the Commission, where appropriate in partnership with the Office for Harmonization in the Internal Market (OHIM), which since June 2012 has housed the Observatory (4). A study published by the Observatory on 25 November 2013 (5) revealed that its respondents — particularly young people — were unaware of the scale of the impact that infringements of IP could have on maintaining and creating jobs related to intellectual property. They also showed that young Europeans consider that the infrastructure for intellectual property rights primarily benefits large corporations.

| 2.6. | The Commission has therefore opted for a multi-targeted approach, taking into consideration an analysis of the reasons why IP-infringing products are increasingly sought after by the ‘digital generation’. Part of this strategy involves the development, by the Observatory, of the communication methods needed for raising awareness amongst Union citizens about the impact of infringements of IP, especially on jobs and the economy. |
| --- | --- |

2.6.

The Commission has therefore opted for a multi-targeted approach, taking into consideration an analysis of the reasons why IP-infringing products are increasingly sought after by the ‘digital generation’. Part of this strategy involves the development, by the Observatory, of the communication methods needed for raising awareness amongst Union citizens about the impact of infringements of IP, especially on jobs and the economy.

3.   Specific comments

| 3.1. | The Commission has not provided any details of the content of these measures but stresses that it will organise a consultation on non-legislative tools, covering the so-called ‘follow the money’ approach which seeks to deprive commercial scale infringers of their means for promoting and distributing IP-infringing goods, and to deprive them of their revenue. These tools will be drawn up in a transparent and robust manner to ensure that they are effective in terms of combating infringements of intellectual property rights. |
| --- | --- |

3.1.

The Commission has not provided any details of the content of these measures but stresses that it will organise a consultation on non-legislative tools, covering the so-called ‘follow the money’ approach which seeks to deprive commercial scale infringers of their means for promoting and distributing IP-infringing goods, and to deprive them of their revenue. These tools will be drawn up in a transparent and robust manner to ensure that they are effective in terms of combating infringements of intellectual property rights.

| 3.2. | This provision will be supported through cooperation between the EU authorities and discussions/negotiations with third countries. It will, for example, involve using ‘all means to effectively dissuade and impede the entry and diffusion of IP infringing products on markets’ both in the EU and externally. |
| --- | --- |

3.2.

This provision will be supported through cooperation between the EU authorities and discussions/negotiations with third countries. It will, for example, involve using ‘all means to effectively dissuade and impede the entry and diffusion of IP infringing products on markets’ both in the EU and externally.

| 3.3. | These ‘non-legislative’ tools will be based on a goodwill approach among stakeholders and will not therefore involve the use of any new legislative instruments but will, in contrast, be based on existing legislative instruments. The advantage of these solutions lies in the fact that they can be swiftly implemented. These preventative measures will help to improve the effectiveness of means of redress before the civil courts. This objective will only be achieved if these measures are drawn up in a transparent manner and also take account of the public interests involved. |
| --- | --- |

3.3.

These ‘non-legislative’ tools will be based on a goodwill approach among stakeholders and will not therefore involve the use of any new legislative instruments but will, in contrast, be based on existing legislative instruments. The advantage of these solutions lies in the fact that they can be swiftly implemented. These preventative measures will help to improve the effectiveness of means of redress before the civil courts. This objective will only be achieved if these measures are drawn up in a transparent manner and also take account of the public interests involved.

| 3.4. | The EESC considers that this limited approach to self-regulation, in its form of ‘voluntary agreements’ or ‘best practice’, cannot replace legislative action in areas that should be subject to effective regulation. |
| --- | --- |

3.4.

The EESC considers that this limited approach to self-regulation, in its form of ‘voluntary agreements’ or ‘best practice’, cannot replace legislative action in areas that should be subject to effective regulation.

4.   The notion of ‘commercial scale’

| 4.1. | The notion of ‘commercial scale’ which focuses on the measures highlighted in the Commission’s action plan is much wider than it suggests. The action plan is somewhat sketchy on this point but the EESC notes that this notion already exists in the EU acquis, making it possible to step up the force of injunction measures and civil penalties. |
| --- | --- |

4.1.

The notion of ‘commercial scale’ which focuses on the measures highlighted in the Commission’s action plan is much wider than it suggests. The action plan is somewhat sketchy on this point but the EESC notes that this notion already exists in the EU acquis, making it possible to step up the force of injunction measures and civil penalties.

| 4.2. | The EESC stresses that ‘commercial scale’ may apply to operations or activities which are not necessarily carried out for ‘commercial purposes’. |
| --- | --- |

4.2.

The EESC stresses that ‘commercial scale’ may apply to operations or activities which are not necessarily carried out for ‘commercial purposes’.

| 4.3. | The notion was included in Directive 2004/48/EC on the enforcement of intellectual property rights (6) and is a basis for certain claims procedures under civil law. For example, the criterion of ‘commercial scale’ allows the judicial authorities to order the precautionary seizure of the movable and immovable property of an alleged infringing party, including the blocking of his/her bank accounts and other assets (Article 9(2) of the Directive). In certain Member States, this criterion is used as a basis for imposing criminal sanctions even though this is excluded from the EU acquis. |
| --- | --- |

4.3.

The notion was included in Directive 2004/48/EC on the enforcement of intellectual property rights (6) and is a basis for certain claims procedures under civil law. For example, the criterion of ‘commercial scale’ allows the judicial authorities to order the precautionary seizure of the movable and immovable property of an alleged infringing party, including the blocking of his/her bank accounts and other assets (Article 9(2) of the Directive). In certain Member States, this criterion is used as a basis for imposing criminal sanctions even though this is excluded from the EU acquis.

| 4.4. | Other EU legislative instruments adopt notions similar to that of ‘commercial scale’: accordingly, Directive 2001/29/EC on the harmonisation of certain aspects of copyright and related rights in the information society (7), makes reference to the concepts of ‘commercial nature’, ‘commercial purpose’, ‘direct or indirect economic or commercial advantage’ and ‘commercial use’.
  Article 13 a) of Directive 98/71/EC on the legal protection of designs (8), which details the limitation of the rights conferred by the design right, stipulates that: ‘the rights conferred by a design right upon registration shall not be exercised in respect of acts done privately and for non-commercial purposes’. |
| --- | --- |

4.4.

Other EU legislative instruments adopt notions similar to that of ‘commercial scale’: accordingly, Directive 2001/29/EC on the harmonisation of certain aspects of copyright and related rights in the information society (7), makes reference to the concepts of ‘commercial nature’, ‘commercial purpose’, ‘direct or indirect economic or commercial advantage’ and ‘commercial use’.

Article 13 a) of Directive 98/71/EC on the legal protection of designs (8), which details the limitation of the rights conferred by the design right, stipulates that: ‘the rights conferred by a design right upon registration shall not be exercised in respect of acts done privately and for non-commercial purposes’.

| 4.5. | In conclusion, it is therefore up to the courts to rule on a case by case basis, at the risk of creating inconsistent, unsuited and therefore uncertain case-law. |
| --- | --- |

4.5.

In conclusion, it is therefore up to the courts to rule on a case by case basis, at the risk of creating inconsistent, unsuited and therefore uncertain case-law.

| 4.6. | The Commission’s services, conscious of the ambiguity surrounding this notion and the resulting legal uncertainty, encouraged the Observatory to identify examples of national case law involving infringements of intellectual property rights in order to, among other things, define the concept more accurately. Furthermore, a first economic workshop was organised on 19 September 2014 following a call for expressions of interest launched last summer in the academic world to analyse the economic concepts of intellectual property. At this event, certain specialists discussed the issue of how to apply the concepts of ‘commercial scale’ and ‘commercial purposes’ in practice in the context of IP infringements (9) and how they may be understood in an economic perspective. |
| --- | --- |

4.6.

The Commission’s services, conscious of the ambiguity surrounding this notion and the resulting legal uncertainty, encouraged the Observatory to identify examples of national case law involving infringements of intellectual property rights in order to, among other things, define the concept more accurately. Furthermore, a first economic workshop was organised on 19 September 2014 following a call for expressions of interest launched last summer in the academic world to analyse the economic concepts of intellectual property. At this event, certain specialists discussed the issue of how to apply the concepts of ‘commercial scale’ and ‘commercial purposes’ in practice in the context of IP infringements (9) and how they may be understood in an economic perspective.

| 4.7. | In view of the importance of this issue, the EESC would urge the Commission’ services to analyse this issue and to share their conclusions of this workshop with all stakeholders, including civil society. |
| --- | --- |

4.7.

In view of the importance of this issue, the EESC would urge the Commission’ services to analyse this issue and to share their conclusions of this workshop with all stakeholders, including civil society.

5.   ‘Follow the money’

| 5.1. | The Communication is directed at both the internet and physical distribution networks. It covers both digital and non-digital products, infringements of IP rights that undermine their creation, promotion, distribution and use. The ‘follow the money’ approach therefore involves dissuading infringers from illegally trading in counterfeit goods. |
| --- | --- |

5.1.

The Communication is directed at both the internet and physical distribution networks. It covers both digital and non-digital products, infringements of IP rights that undermine their creation, promotion, distribution and use. The ‘follow the money’ approach therefore involves dissuading infringers from illegally trading in counterfeit goods.

| 5.2. | The implementation of this approach will strive to ensure that all players in the high value-added IP chain take the necessary forward-looking measures to maintain their competitive position on the market. The common thread running through these markets must remain innovation to encourage investment in creative and inventive activities. |
| --- | --- |

5.2.

The implementation of this approach will strive to ensure that all players in the high value-added IP chain take the necessary forward-looking measures to maintain their competitive position on the market. The common thread running through these markets must remain innovation to encourage investment in creative and inventive activities.

| 5.3. | This should boost confidence in digital markets and enable the distribution of competitive products with a high value-added IP, as well as the growth and development of such markets. The objective is to move away from an IP policy based on sanctions and the redress of infringements of intellectual property rights towards a more preventive and inclusive approach, guaranteeing and offering the consumer a wide and varied range of products with a high value-added IP. |
| --- | --- |

5.3.

This should boost confidence in digital markets and enable the distribution of competitive products with a high value-added IP, as well as the growth and development of such markets. The objective is to move away from an IP policy based on sanctions and the redress of infringements of intellectual property rights towards a more preventive and inclusive approach, guaranteeing and offering the consumer a wide and varied range of products with a high value-added IP.

| 5.4. | The Commission proposes the publication of a monitoring report on the implementation of this policy every two years. The EESC will insist that the first report contains valid indicators and that it is published in good time. |
| --- | --- |

5.4.

The Commission proposes the publication of a monitoring report on the implementation of this policy every two years. The EESC will insist that the first report contains valid indicators and that it is published in good time.

| 5.5. | Strengthening the security of payment services via appeals procedures in the event of the unintentional purchase of counterfeit goods could also improve consumer protection and boost their confidence in the internal market. The Commission has announced a public consultation on the impact of consumer protection regimes on combating commercial-scale IP infringements. |
| --- | --- |

5.5.

Strengthening the security of payment services via appeals procedures in the event of the unintentional purchase of counterfeit goods could also improve consumer protection and boost their confidence in the internal market. The Commission has announced a public consultation on the impact of consumer protection regimes on combating commercial-scale IP infringements.

| 5.6. | In view of the close link between the Commission’s two initiatives and the importance of the ‘follow the money’ approach, the EESC would ask the Commission to launch a large-scale consultation on the crucial issue of consumer protection in the area of payment services and to extend it to the ‘follow the money’ approach in general. |
| --- | --- |

5.6.

In view of the close link between the Commission’s two initiatives and the importance of the ‘follow the money’ approach, the EESC would ask the Commission to launch a large-scale consultation on the crucial issue of consumer protection in the area of payment services and to extend it to the ‘follow the money’ approach in general.

| 5.7. | The EESC also urges the Commission’s services to consult economic players in order to elicit feedback on the extent to which the material gains of counterfeiters are taken into account when assessing the amount of damages and interest in the case of counterfeit goods (10). |
| --- | --- |

5.7.

The EESC also urges the Commission’s services to consult economic players in order to elicit feedback on the extent to which the material gains of counterfeiters are taken into account when assessing the amount of damages and interest in the case of counterfeit goods (10).

6.   SMEs

| 6.1. | In some Member States, intellectual property is either a matter of no importance for more than half of all SMEs (54 %) or else a familiar issue (46 %) but one that is considered to be too expensive, complex and lengthy. This is a striking situation in the context of a knowledge-based economy where intangible items such as know-how, reputation, design or image have taken on a huge importance (11). |
| --- | --- |

6.1.

In some Member States, intellectual property is either a matter of no importance for more than half of all SMEs (54 %) or else a familiar issue (46 %) but one that is considered to be too expensive, complex and lengthy. This is a striking situation in the context of a knowledge-based economy where intangible items such as know-how, reputation, design or image have taken on a huge importance (11).

| 6.2. | Furthermore, certain figures would suggest that SMEs which incorporate intellectual property into their development strategies perform better economically than their competitors. Accordingly, the 32 winners in the SME category of France’s Intellectual Property Institute’s 2010 Innovation Trophies (INPI Trophées de l’innovation 2010) managed to create some 614 jobs between them since 2006, multiplying their turnover by a factor of five between 2006 and 2009 and doubling their exports during the same period. At the same time, these businesses bolstered their R & D efforts through a 65,6 % increase in their budget (12). |
| --- | --- |

6.2.

Furthermore, certain figures would suggest that SMEs which incorporate intellectual property into their development strategies perform better economically than their competitors. Accordingly, the 32 winners in the SME category of France’s Intellectual Property Institute’s 2010 Innovation Trophies (INPI Trophées de l’innovation 2010) managed to create some 614 jobs between them since 2006, multiplying their turnover by a factor of five between 2006 and 2009 and doubling their exports during the same period. At the same time, these businesses bolstered their R & D efforts through a 65,6 % increase in their budget (12).

| 6.3. | The EESC therefore supports the Commission’s approach which is moving towards improving SMEs’ access to means of judicial redress in general (13) and, more specifically, in their disputes in the area of intellectual property. In effect, the financial cost and complexity of judicial procedures often dissuade innovative SMEs from enforcing their intellectual property rights, including those arising under essential patents. |
| --- | --- |

6.3.

The EESC therefore supports the Commission’s approach which is moving towards improving SMEs’ access to means of judicial redress in general (13) and, more specifically, in their disputes in the area of intellectual property. In effect, the financial cost and complexity of judicial procedures often dissuade innovative SMEs from enforcing their intellectual property rights, including those arising under essential patents.

| 6.4. | Financial cost is a decisive factor in whether European businesses invest in innovation, which means that protecting intellectual property, and renewing and protecting intellectual property rights, must be affordable. In this regard, the single European patent could encourage businesses, including SMEs, young entrepreneurs and start-ups, to protect their inventions, provided the filing costs are reasonable and not prohibitive. Businesses should also be guaranteed access to justice, including access to the Unified Patent Court, for a reasonable cost. |
| --- | --- |

6.4.

Financial cost is a decisive factor in whether European businesses invest in innovation, which means that protecting intellectual property, and renewing and protecting intellectual property rights, must be affordable. In this regard, the single European patent could encourage businesses, including SMEs, young entrepreneurs and start-ups, to protect their inventions, provided the filing costs are reasonable and not prohibitive. Businesses should also be guaranteed access to justice, including access to the Unified Patent Court, for a reasonable cost.

| 6.5. | SMEs also need to adopt marketing or distribution strategies but many fail to do this effectively as they lack the necessary skills or expertise needed to enforce and promote their intellectual property rights in an effective manner, a point which was highlighted by the Commission’s action plan. |
| --- | --- |

6.5.

SMEs also need to adopt marketing or distribution strategies but many fail to do this effectively as they lack the necessary skills or expertise needed to enforce and promote their intellectual property rights in an effective manner, a point which was highlighted by the Commission’s action plan.

| 6.6. | In this connection, the EESC endorses the European IPorta, a support system (14) that takes into account issues linked to the enforcement of intellectual property rights and coordinates national assistance. |
| --- | --- |

6.6.

In this connection, the EESC endorses the European IPorta, a support system (14) that takes into account issues linked to the enforcement of intellectual property rights and coordinates national assistance.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

---

(1)  https://oami.europa.eu/ohimportal/en/web/observatory/news/-/action/view/1251336

1

(2)  Judges’ Seminar on counterfeiting and money laundering, held at the Office for Harmonization in the Internal Market (OHIM) on 16 and 17 October https://oami.europa.eu/ohimportal/en/web/observatory/news/-/action/view/1574263 In this connection, see also OJ L 354, 28.12.2013, p. 73 and COM(2014) 144 final.

2

Judges’ Seminar on counterfeiting and money laundering, held at the Office for Harmonization in the Internal Market (OHIM) on 16 and 17 October

(3)  http://ec.europa.eu/enterprise/initiatives/ipr/what-are-iprs/index_en.htm

3

(4)  Regulation (EU) No 386/2012 of 19.4.2012 entrusts OHIM with various tasks aimed at facilitating and supporting the activities of national authorities, the private sector and EU institutions in the fight against IPR infringements. These tasks do not extend to participation in individual operations or investigations carried out by national authorities, nor to matters covered by Title V of Part III of the Treaty on the Functioning of the European Union (e.g. criminal and police cooperation).

4

(5)  See web site oami.europa.eu. This study was based on a review of the literature, on a qualitative study among 250 Europeans aged 15 to 65 and on a quantitative stage during which over 26  000 Europeans were polled via telephone interviews.

5

(6)  See OJ L 195, 16.6.2004, p. 16.

6

(7)  See OJ L 167, 22.6.2001, p. 10.

7

(8)  See OJ L 289, 28.10.1998, p. 28.

8

(9)  http://ec.europa.eu/internal_market/iprenforcement/docs/workshops/140919-workshop_en.pdf

9

(10)  In France, for example, this principle already exists (see Law No 2014-315 of 11 March 2014, which has been in force since 14 March 2014). Article L615-7 of the French Intellectual Property Code (CPI), as amended by Article 2 of the aforementioned law, now states that, when calculating damages and interest, the court must clearly take account of the negative economic consequences, the non-pecuniary damage caused, and the material gain derived by the counterfeiter, including savings on intellectual, material and promotional investment. However, this appears to be difficult to implement, often due to problems with proving that the counterfeiter derived material gain.

10

damages and interest

clearly

(11)  http://www.picarre.be/assets/Documents/Rapport-PIPICARR-tlchargeable3.pdf

11

(12)  http://www.journaldunet.com/economie/magazine/propriete-industrielle.shtml

12

(13)  The Commission recently suggested strengthening and improving the current European small claims procedure, which is a uniform procedure that is available in all Member States (Regulation (EC) No 861/2007). See OJ C 226, 16.7.2014, p. 43.

13

(14)  http://ec.europa.eu/enterprise/initiatives/ipr/what-are-iprs/index_en.htm

14

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| 14.7.2015 | EN | Official Journal of the European Union | C 230/77 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/77

---

Opinion of the European Economic and Social Committee on the ‘White Paper — Towards more effective EU merger control’

(COM(2014) 449 final)

(2015/C 230/12)

| Rapporteur: | Mr Juan MENDOZA CASTRO |
| --- | --- |

Rapporteur:

Mr Juan MENDOZA CASTRO

On 16 July 2014 the European Commission decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

White Paper — Towards more effective EU merger control

COM(2014) 449 final.

The Section for the Single Market, Production and Consumption, which was responsible for preparing the Committee’s work on the subject, adopted its opinion on 19 November 2014.

At its 503rd plenary session, held on 10 and 11 December 2014 (meeting of 10 December 2014), the European Economic and Social Committee adopted the following opinion by 137 votes to 1 with 1 abstention.

1.   Conclusions and recommendations

Conclusions and recommendations

| 1.1. | The EESC welcomes the White Paper in as much as it strengthens one of the pillars of EU competition policy and simplifies procedures. |
| --- | --- |

1.1.

The EESC welcomes the White Paper in as much as it strengthens one of the pillars of EU competition policy and simplifies procedures.

| 1.2. | The Commission’s White Paper is seeking a balance between the public interest in closing a loophole in the regulatory system and the corporate interest in keeping administrative costs to a minimum. Nevertheless, care should be taken to ensure that the broad scope of the terms of the amendments to the Merger Regulation does not conflict with this aim. Consideration must also be given to the benefits that mergers bring to businesses. |
| --- | --- |

1.2.

The Commission’s White Paper is seeking a balance between the public interest in closing a loophole in the regulatory system and the corporate interest in keeping administrative costs to a minimum. Nevertheless, care should be taken to ensure that the broad scope of the terms of the amendments to the Merger Regulation does not conflict with this aim. Consideration must also be given to the benefits that mergers bring to businesses.

| 1.3. | On the basis of the case-law of the Court of Justice of the European Union (CJEU) and administrative practice, the EESC suggests that the theory of harm which the White Paper takes as its basis:






  a) | consist in duly identifying how competition, and therefore ultimately consumers, might possibly be harmed; |
| --- | --- | --- |

1.3.

On the basis of the case-law of the Court of Justice of the European Union (CJEU) and administrative practice, the EESC suggests that the theory of harm which the White Paper takes as its basis:

a)

consist in duly identifying how competition, and therefore ultimately consumers, might possibly be harmed;

| b) | be internally coherent; |
| --- | --- |

b)

be internally coherent;

| c) | take account of the benefits motivating all of the parties; and |
| --- | --- |

c)

take account of the benefits motivating all of the parties; and

| d) | be consistent (or, at least, not inconsistent) with the empirical evidence. |
| --- | --- |

d)

be consistent (or, at least, not inconsistent) with the empirical evidence.

| 1.4. | The EESC recommends that the social repercussions, particularly employment and companies’ ability to compete on world markets, should also be taken into account in the new regulatory framework. |
| --- | --- |

1.4.

The EESC recommends that the social repercussions, particularly employment and companies’ ability to compete on world markets, should also be taken into account in the new regulatory framework.

| 1.5. | The Committee believes that the ‘targeted’ transparency system the Commission is advocating should make sufficiently clear the concepts of: ‘competitor’ based on the criterion applied in antitrust measures, ‘vertically related company’ (considering the setting of thresholds), the nature of the links making the acquired shareholding ‘significant’, and the case of corporate groups with activities in a range of sectors. |
| --- | --- |

1.5.

The Committee believes that the ‘targeted’ transparency system the Commission is advocating should make sufficiently clear the concepts of: ‘competitor’ based on the criterion applied in antitrust measures, ‘vertically related company’ (considering the setting of thresholds), the nature of the links making the acquired shareholding ‘significant’, and the case of corporate groups with activities in a range of sectors.

| 1.6. | The EESC believes it is important for the reputation gained by the EU merger control system to be maintained and even enhanced. |
| --- | --- |

1.6.

The EESC believes it is important for the reputation gained by the EU merger control system to be maintained and even enhanced.

| 1.7. | Although the WP is a step in the right direction, consideration must be given to whether it should have a broader focus, given the changes that have come about over the last 25 years (increased number of cases and control authorities) and the European economy’s requirements in the 21st century. |
| --- | --- |

1.7.

Although the WP is a step in the right direction, consideration must be given to whether it should have a broader focus, given the changes that have come about over the last 25 years (increased number of cases and control authorities) and the European economy’s requirements in the 21st century.

| 1.8. | There are currently 28 control authorities in the EU (31 including the EEA) but they do not apply the same criteria. The EESC therefore suggests re-thinking the White Paper with a view to:






  — | harmonisation of Member States’ legislation; |
| --- | --- | --- |

1.8.

There are currently 28 control authorities in the EU (31 including the EEA) but they do not apply the same criteria. The EESC therefore suggests re-thinking the White Paper with a view to:

—

harmonisation of Member States’ legislation;

| — | a review of requirements with regard to compulsory notifications; and |
| --- | --- |

—

a review of requirements with regard to compulsory notifications; and

| — | more progress towards a ‘one-stop shop’ system. |
| --- | --- |

—

more progress towards a ‘one-stop shop’ system.

| 1.9. | The Committee welcomes the procedural changes announced in the White Paper that concern:






  — | simplification of the mechanism for pre-notification referral from Member States to the Commission; |
| --- | --- | --- |

1.9.

The Committee welcomes the procedural changes announced in the White Paper that concern:

—

simplification of the mechanism for pre-notification referral from Member States to the Commission;

| — | removing the ‘element of self-incrimination’ in pre-notification referrals from the Commission to Member States; and |
| --- | --- |

—

removing the ‘element of self-incrimination’ in pre-notification referrals from the Commission to Member States; and

| — | changes in Member State referrals to the Commission after notification. |
| --- | --- |

—

changes in Member State referrals to the Commission after notification.

| 1.9.1. | The Committee also welcomes the measures for simplifying procedures, which are a continuation of those brought in by the 2013 ‘Simplification Package’, particularly in the case of joint ventures outside the EEA. |
| --- | --- |

1.9.1.

The Committee also welcomes the measures for simplifying procedures, which are a continuation of those brought in by the 2013 ‘Simplification Package’, particularly in the case of joint ventures outside the EEA.

2.   Content of the White Paper

Content of the White Paper

| 2.1. | In this White Paper, 10 years after the major overhaul of the EU Merger Regulation in 2004 (1), the Commission takes stock of how the substantive test of ‘significant impediment of effective competition’ (SIEC) has been applied and provides an outlook on how to further foster convergence and cooperation between and amongst the Commission and the Member States. It also puts forward proposals for specific amendments aimed at making EU merger control more effective. |
| --- | --- |

2.1.

In this White Paper, 10 years after the major overhaul of the EU Merger Regulation in 2004 (1), the Commission takes stock of how the substantive test of ‘significant impediment of effective competition’ (SIEC) has been applied and provides an outlook on how to further foster convergence and cooperation between and amongst the Commission and the Member States. It also puts forward proposals for specific amendments aimed at making EU merger control more effective.

1

| 2.2. | It firstly proposes ensuring that the Merger Regulation addresses all sources of possible harm to competition, and thus consumers, caused by mergers or corporate restructuring, including those stemming from acquisitions of non-controlling minority shareholdings. |
| --- | --- |

2.2.

It firstly proposes ensuring that the Merger Regulation addresses all sources of possible harm to competition, and thus consumers, caused by mergers or corporate restructuring, including those stemming from acquisitions of non-controlling minority shareholdings.

| 2.3. | It also aims to achieve closer cooperation between the Commission and national competition authorities (‘NCAs’) and an appropriate division of tasks in the field of merger control, in particular, by streamlining the rules for transferring merger cases from Member States to the Commission and vice versa. |
| --- | --- |

2.3.

It also aims to achieve closer cooperation between the Commission and national competition authorities (‘NCAs’) and an appropriate division of tasks in the field of merger control, in particular, by streamlining the rules for transferring merger cases from Member States to the Commission and vice versa.

3.   General comments

General comments

| 3.1. | The EESC welcomes the White Paper in as much as the proposed reforms will strengthen one of the pillars of competition policy and, above all, because it includes measures that will help simplify procedures. |
| --- | --- |

3.1.

The EESC welcomes the White Paper in as much as the proposed reforms will strengthen one of the pillars of competition policy and, above all, because it includes measures that will help simplify procedures.

| 3.2. | The Commission bases the White Paper’s central proposal — to widen its powers to include control of anti-competitive minority shareholdings as well — on the fact that Regulation (EC) No 139/2004 may only be applied when mergers represent ‘a change of control on a lasting basis’ (Article 3(1)), but that is not the case here. Moreover, it believes that Articles 101 and 102 TFEU alone do not constitute a sufficient legal basis for tackling the case of minority shareholdings. |
| --- | --- |

3.2.

The Commission bases the White Paper’s central proposal — to widen its powers to include control of anti-competitive minority shareholdings as well — on the fact that Regulation (EC) No 139/2004 may only be applied when mergers represent ‘a change of control on a lasting basis’ (Article 3(1)), but that is not the case here. Moreover, it believes that Articles 101 and 102 TFEU alone do not constitute a sufficient legal basis for tackling the case of minority shareholdings.

| 3.3. | The Commission’s White Paper is broadly seeking a balance between the public interest in closing a loophole in the rules governing corporate mergers and the corporate interest in keeping administrative costs to a minimum. |
| --- | --- |

3.3.

The Commission’s White Paper is broadly seeking a balance between the public interest in closing a loophole in the rules governing corporate mergers and the corporate interest in keeping administrative costs to a minimum.

| 3.4. | Nevertheless, the EESC believes that care should be taken to ensure that the broad scope of the proposals in their current form does not actually lead to an overall increase in costs. This should, however, be assessed in the light of the benefits that companies derive from the new provisions. |
| --- | --- |

3.4.

Nevertheless, the EESC believes that care should be taken to ensure that the broad scope of the proposals in their current form does not actually lead to an overall increase in costs. This should, however, be assessed in the light of the benefits that companies derive from the new provisions.

| 3.5. | The EESC also considers that some aspects of the White Paper need clarification to ensure that the outcome does not run counter to the intention of facilitating merger control without increasing the administrative burden. |
| --- | --- |

3.5.

The EESC also considers that some aspects of the White Paper need clarification to ensure that the outcome does not run counter to the intention of facilitating merger control without increasing the administrative burden.

| 3.6. | The framework for assessing merger transactions set out in the White Paper is the ‘theory of harm’ which the Commission included from 2002 after experiencing legal setbacks (2). The theory of harm requires its application to:






  a) | consist in duly identifying how competition, and therefore ultimately consumers, might possibly be harmed; |
| --- | --- | --- |

3.6.

The framework for assessing merger transactions set out in the White Paper is the ‘theory of harm’ which the Commission included from 2002 after experiencing legal setbacks (2). The theory of harm requires its application to:

2

a)

consist in duly identifying how competition, and therefore ultimately consumers, might possibly be harmed;

| b) | be internally coherent; |
| --- | --- |

b)

be internally coherent;

| c) | take account of the benefits motivating all of the parties; and |
| --- | --- |

c)

take account of the benefits motivating all of the parties; and

| d) | be consistent (or, at least, not inconsistent) with the empirical evidence (3). |
| --- | --- |

d)

be consistent (or, at least, not inconsistent) with the empirical evidence (3).

3

| 3.6.1. | These principles — which are supported by CJEU case-law and the Commission’s administrative practice (4) — must also apply to cases involving minority shareholdings. |
| --- | --- |

3.6.1.

These principles — which are supported by CJEU case-law and the Commission’s administrative practice (4) — must also apply to cases involving minority shareholdings.

4

| 3.7. | Given that the White Paper proposes a substantial broadening of the Commission’s powers, the EESC recommends that the analysis of merger procedures should also take account of social repercussions and, more specifically, of employment. |
| --- | --- |

3.7.

Given that the White Paper proposes a substantial broadening of the Commission’s powers, the EESC recommends that the analysis of merger procedures should also take account of social repercussions and, more specifically, of employment.

4.   The EU needs a European Merger Area that meets the needs of the internal market of the 21st century

The EU needs a European Merger Area that meets the needs of the internal market of the 21st century

| 4.1. | The European Union’s merger control system has gained a reputation over the years and serves as a model worldwide. The EESC considers it important to maintain and even enhance this reputation. |
| --- | --- |

4.1.

The European Union’s merger control system has gained a reputation over the years and serves as a model worldwide. The EESC considers it important to maintain and even enhance this reputation.

| 4.2. | The Committee welcomes the White Paper’s proposal to improve coordination between the Commission and the NCAs and pave the way towards a ‘European Merger Area’ that facilitates the uniform handling of mergers and increases legal certainty. But the proposed measures must go beyond ad hoc reforms to the Regulation to more broadly undertake an overhaul of the current control system. |
| --- | --- |

4.2.

The Committee welcomes the White Paper’s proposal to improve coordination between the Commission and the NCAs and pave the way towards a ‘European Merger Area’ that facilitates the uniform handling of mergers and increases legal certainty. But the proposed measures must go beyond ad hoc reforms to the Regulation to more broadly undertake an overhaul of the current control system.

| 4.3. | Merger control in the EU has been stepped up considerably over the last 25 years whilst European businesses have increased in size and global reach. There were only three national authorities competent in this area in 1989; in 2000, there were 14, including the Commission; the current total stands at 28 (or 31 including the EEA). |
| --- | --- |

4.3.

Merger control in the EU has been stepped up considerably over the last 25 years whilst European businesses have increased in size and global reach. There were only three national authorities competent in this area in 1989; in 2000, there were 14, including the Commission; the current total stands at 28 (or 31 including the EEA).

| 4.4. | The differences in rules and application criteria represent an additional burden for companies which, in many cases, is unnecessary: fewer than 5 % of merger transactions notified to the Commission have been deemed to be potentially harmful for competition (5). The control system must make consumer and user protection compatible with the imperative requirement for European companies to compete in global markets. |
| --- | --- |

4.4.

The differences in rules and application criteria represent an additional burden for companies which, in many cases, is unnecessary: fewer than 5 % of merger transactions notified to the Commission have been deemed to be potentially harmful for competition (5). The control system must make consumer and user protection compatible with the imperative requirement for European companies to compete in global markets.

5

| 4.5. | The EESC therefore suggests re-thinking the White Paper and setting it in a broader framework that includes:






  — | harmonisation of Member States’ legislation to avoid disparities in the implementation criteria; |
| --- | --- | --- |

4.5.

The EESC therefore suggests re-thinking the White Paper and setting it in a broader framework that includes:

—

harmonisation of Member States’ legislation to avoid disparities in the implementation criteria;

| — | a review of requirements with regard to compulsory notifications, given that experience shows that they are unnecessary in many cases; and |
| --- | --- |

—

a review of requirements with regard to compulsory notifications, given that experience shows that they are unnecessary in many cases; and

| — | more progress towards a ‘one-stop shop’ system, given the increased number of control authorities. |
| --- | --- |

—

more progress towards a ‘one-stop shop’ system, given the increased number of control authorities.

5.   Specific comments

Specific comments

5.1.   The ‘targeted’ transparency system

The ‘targeted’ transparency system

| 5.1.1. | The Commission is proposing a ‘targeted’ transparency system based on two cumulative criteria to determine whether or not the obligatory requirement of the SIEC is present:






  a) | acquisitions of minority shareholdings in a competitor or vertically related company; and |
| --- | --- | --- |

5.1.1.

The Commission is proposing a ‘targeted’ transparency system based on two cumulative criteria to determine whether or not the obligatory requirement of the SIEC is present:

a)

acquisitions of minority shareholdings in a competitor or vertically related company; and

| b) | the link is considered ‘significant’ if the acquired shareholding is ‘around’ 20 % or between 5 % and ‘around’ 20 %, but accompanied by additional factors such as rights which give the acquirer a de facto blocking minority, a seat on the board of directors, or access to commercially sensitive information of the target. |
| --- | --- |

b)

the link is considered ‘significant’ if the acquired shareholding is ‘around’ 20 % or between 5 % and ‘around’ 20 %, but accompanied by additional factors such as rights which give the acquirer a de facto blocking minority, a seat on the board of directors, or access to commercially sensitive information of the target.

de facto

| 5.1.2. | The EESC suggests that the following aspects be clarified when drafting amendments to the Regulation:






  — | First, the concept of ‘competitor’, which should be considered in terms of the definition applicable to antitrust measures in distinct geographical markets. |
| --- | --- | --- |

5.1.2.

The EESC suggests that the following aspects be clarified when drafting amendments to the Regulation:

—

First, the concept of ‘competitor’, which should be considered in terms of the definition applicable to antitrust measures in distinct geographical markets.

| — | Second, the parameters that should be taken into account for applying the concept of ‘vertically related companies’. Consideration should be given to the case for setting specific thresholds, given that the generic formula may lead to a substantial increase in the number of information notes required by the Regulation. |
| --- | --- |

—

Second, the parameters that should be taken into account for applying the concept of ‘vertically related companies’. Consideration should be given to the case for setting specific thresholds, given that the generic formula may lead to a substantial increase in the number of information notes required by the Regulation.

| — | Third, the legal nature that relationships should have for the acquisition of shareholdings to be deemed ‘significant’. |
| --- | --- |

—

Third, the legal nature that relationships should have for the acquisition of shareholdings to be deemed ‘significant’.

| — | Finally, whether the SIEC analysis should also include the overall activities of corporate groups operating in different sectors of the economy. |
| --- | --- |

—

Finally, whether the SIEC analysis should also include the overall activities of corporate groups operating in different sectors of the economy.

5.2.   Simplification of the mechanism for Member State referrals to the Commission before notification

Simplification of the mechanism for Member State referrals to the Commission before notification

| 5.2.1. | The EESC welcomes the proposal to abolish the two-step procedure required by Article 4(5) of Regulation (EC) No 139/2004 (reasoned submission followed by notification) and replace it with a direct notification to the Commission. The few vetoes to which Member States are entitled justify this revision which will speed up procedures. |
| --- | --- |

5.2.1.

The EESC welcomes the proposal to abolish the two-step procedure required by Article 4(5) of Regulation (EC) No 139/2004 (reasoned submission followed by notification) and replace it with a direct notification to the Commission. The few vetoes to which Member States are entitled justify this revision which will speed up procedures.

| 5.2.2. | Another positive aspect is the proposal to facilitate the exchange of information between the Member States and the Commission by forwarding the initial information document from the parties or the request for the case be assigned to the Member States so that they are aware of the transaction during the contacts prior to notification. |
| --- | --- |

5.2.2.

Another positive aspect is the proposal to facilitate the exchange of information between the Member States and the Commission by forwarding the initial information document from the parties or the request for the case be assigned to the Member States so that they are aware of the transaction during the contacts prior to notification.

5.3.   Referrals by the Commission to the Member States before notification

Referrals by the Commission to the Member States before notification

| 5.3.1. | It is proposed to remove from Article 4(4) of Regulation (EC) No 139/2004 the ‘element of self-incrimination’ whereby the parties involved in a merger or takeover may submit a reasoned submission informing the Commission that the merger may significantly affect competition in a distinct market in a Member State. Under the reform it would suffice to demonstrate that the transaction is likely to have its main impact on this market. |
| --- | --- |

5.3.1.

It is proposed to remove from Article 4(4) of Regulation (EC) No 139/2004 the ‘element of self-incrimination’ whereby the parties involved in a merger or takeover may submit a reasoned submission informing the Commission that the merger may significantly affect competition in a distinct market in a Member State. Under the reform it would suffice to demonstrate that the transaction is likely to have its main impact on this market.

| 5.3.2. | The Commission believes that removing that dissuasive requirement could encourage the use of this voluntary declaration and the EESC shares that view. |
| --- | --- |

5.3.2.

The Commission believes that removing that dissuasive requirement could encourage the use of this voluntary declaration and the EESC shares that view.

5.4.   Referrals to the Commission from the Member States following notification

Referrals to the Commission from the Member States following notification

| 5.4.1. | The White Paper proposes amending Article 22 of the Regulation to allow only those Member States with competence to assess a merger transaction (at present ‘one or more’ of them are able to do so) to decide to refer it to the Commission within fifteen working days and in accordance with their national legislation. The Commission may decide whether to accept or reject a referral request. If it were to accept the request, the Commission would have EEA-wide jurisdiction. However, if one or more Member States were to oppose the referral (without being required to give a reason), the Commission would relinquish EEA-wide jurisdiction and the Member States would retain theirs. |
| --- | --- |

5.4.1.

The White Paper proposes amending Article 22 of the Regulation to allow only those Member States with competence to assess a merger transaction (at present ‘one or more’ of them are able to do so) to decide to refer it to the Commission within fifteen working days and in accordance with their national legislation. The Commission may decide whether to accept or reject a referral request. If it were to accept the request, the Commission would have EEA-wide jurisdiction. However, if one or more Member States were to oppose the referral (without being required to give a reason), the Commission would relinquish EEA-wide jurisdiction and the Member States would retain theirs.

| 5.4.2. | In the Committee’s view, although the proposal might simplify the procedures, its effectiveness is limited because, of the EU states, only Germany, Austria and the United Kingdom are recognised as having jurisdiction in the case of acquisitions of non-controlling minority shareholdings. |
| --- | --- |

5.4.2.

In the Committee’s view, although the proposal might simplify the procedures, its effectiveness is limited because, of the EU states, only Germany, Austria and the United Kingdom are recognised as having jurisdiction in the case of acquisitions of non-controlling minority shareholdings.

| 5.4.3. | The changes in post-notification referrals also involve an extension of the Commission’s powers, which the EESC welcomes: if there are no objections from other Member States and the Commission accepts the recommendation, it would be responsible for reviewing transactions in the whole of the EEA and not merely in the territory of the reference Member State (unless the Member State authority had already cleared the transaction in its territory before the Commission assumed responsibility). |
| --- | --- |

5.4.3.

The changes in post-notification referrals also involve an extension of the Commission’s powers, which the EESC welcomes: if there are no objections from other Member States and the Commission accepts the recommendation, it would be responsible for reviewing transactions in the whole of the EEA and not merely in the territory of the reference Member State (unless the Member State authority had already cleared the transaction in its territory before the Commission assumed responsibility).

5.5.   Other amendments

Other amendments

| 5.5.1. | Following the adoption of the 2013 ‘Simplification Package’ (6), the White Paper proposes other measures with the same objective that merit the EESC’s approval. |
| --- | --- |

5.5.1.

Following the adoption of the 2013 ‘Simplification Package’ (6), the White Paper proposes other measures with the same objective that merit the EESC’s approval.

6

| 5.5.2. | The most notable of these is the intention of excluding from the scope of the Regulation agreements for setting up joint ventures outside the EEA which have no impact on competition within the EEA. |
| --- | --- |

5.5.2.

The most notable of these is the intention of excluding from the scope of the Regulation agreements for setting up joint ventures outside the EEA which have no impact on competition within the EEA.

| 5.5.3. | The White Paper also raises the possibility of the Commission giving exemption from compulsory prior notification to certain categories of transactions which do not normally raise competition concerns. |
| --- | --- |

5.5.3.

The White Paper also raises the possibility of the Commission giving exemption from compulsory prior notification to certain categories of transactions which do not normally raise competition concerns.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

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(1)  Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings (OJ L 24, 29.1.2004).

1

(2)  In particular, cases: T-342/99 Airtours plc v Commission, 2002 E.C.R II-2585; T-310/01 Schneider Electric S.A. v Commission, 2002 E.C.R II-4071; and T-5/02 Tetra Laval v Commission, 2002 E.C.R II-4381.

2

Airtours plc

Commission

Schneider Electric S.A.

Commission

Tetra Laval

Commission

(3)  See Hans Zenger and Mike Walker: Theories of Harm in European Competition Law http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2009296

3

(4)  Case IV/M.938 Guinness/Grand Metropolitan (15.10.1997) and case IV/M.1524 Airtours/First Choice (22.9.1999).

4

(5)  http://ec.europa.eu/competition/mergers/statistics.pdf

5

(6)  Commission Implementing Regulation (EU) No 1269/2013 of 5 December 2013 (OJ L 336, 14.12.2013, p. 1) and Commission Communication on a simplified procedure for treatment of certain concentrations under Council Regulation (EC) No 139/2004 (OJ C 366, 14.12.2013, p. 5); corrigendum: OJ C 11, 15.1.2014, p. 6.

6

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| 14.7.2015 | EN | Official Journal of the European Union | C 230/82 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/82

---

Opinion of the European Economic and Social Committee on the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on an EU strategic framework on health and safety at work (2014-2020)

(COM(2014) 332 final)

(2015/C 230/13)

| Rapporteur: | Carlos TRINDADE |
| --- | --- |

Rapporteur:

Carlos TRINDADE

On 6 June 2014 the European Commission decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

‘Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on an EU Strategic Framework on Health and Safety at Work 2014-2020’

COM(2014) 332 final.

The Section for Employment, Social Affairs and Citizenship, which was responsible for preparing the Committee’s work on the subject, adopted its opinion on 20 November 2014.

At its 503rd plenary session, held on 10 and 11 December 2014 (meeting of 11 December 2014), the European Economic and Social Committee adopted the following opinion by 189 votes to 23, with 20 abstentions.

1.   Conclusions and recommendations

| 1.1. | The EESC is pleased that the EU has a comprehensive, economically and socially developed framework in place, which is supplemented with multiannual European strategies adapted by Member States to their particular national circumstances. The EESC nevertheless feels there are difficulties, shortcomings and new challenges that need to be resolved. |
| --- | --- |

1.1.

The EESC is pleased that the EU has a comprehensive, economically and socially developed framework in place, which is supplemented with multiannual European strategies adapted by Member States to their particular national circumstances. The EESC nevertheless feels there are difficulties, shortcomings and new challenges that need to be resolved.

| 1.2. | The EESC appreciates the Commission’s intention to focus on prevention, rule simplification — without jeopardising existing protection levels — and proper compliance with rules. The strategy must strike a balance between a high level of protection and the administrative burden on firms. |
| --- | --- |

1.2.

The EESC appreciates the Commission’s intention to focus on prevention, rule simplification — without jeopardising existing protection levels — and proper compliance with rules. The strategy must strike a balance between a high level of protection and the administrative burden on firms.

| 1.3. | The EESC welcomes the Commission’s focus on SMEs, consulting them and providing them with information and guidelines, using ICTs and stepping up the coordination of public services supporting SMEs. |
| --- | --- |

1.3.

The EESC welcomes the Commission’s focus on SMEs, consulting them and providing them with information and guidelines, using ICTs and stepping up the coordination of public services supporting SMEs.

| 1.4. | It is vital that there be better training of — and more — labour inspectors: the minimum number recommended by the International Labour Organisation (one per 10  000 workers) has not been reached in about half of the Member States. |
| --- | --- |

1.4.

It is vital that there be better training of — and more — labour inspectors: the minimum number recommended by the International Labour Organisation (one per 10  000 workers) has not been reached in about half of the Member States.

| 1.5. | In view of the need to generate a culture of prevention amongst young people, people recently made redundant, trainees and apprentices, the EESC recommends that the Commission adopt measures to ensure these people receive adequate, practical information and training. |
| --- | --- |

1.5.

In view of the need to generate a culture of prevention amongst young people, people recently made redundant, trainees and apprentices, the EESC recommends that the Commission adopt measures to ensure these people receive adequate, practical information and training.

| 1.6. | The EESC also understands the role of investment in prevention and fully agrees with the fact that this cannot be carried out only by firms, but must also be done by Member States. It calls for more investment by both, with guaranteed worker participation. |
| --- | --- |

1.6.

The EESC also understands the role of investment in prevention and fully agrees with the fact that this cannot be carried out only by firms, but must also be done by Member States. It calls for more investment by both, with guaranteed worker participation.

| 1.7. | The EESC underlines the difficulties encountered in the EU as regards the existence of relevant data and calls on the Commission urgently to obtain statistics and indicators which in particular take account of gender and workers’ careers. The list of occupational diseases, including accidents during working hours, and the reporting and statistical analysis rules relating to this data, should be regulated and published in the EU. It recommends that the work of specialist agencies be stepped up and fully publicised, and that information and good practice also be publicised to help encourage a culture of prevention. Studies on new risks should be carried out in greater depth and proper measures (legislative or other) drawn up, following on from such research. |
| --- | --- |

1.7.

The EESC underlines the difficulties encountered in the EU as regards the existence of relevant data and calls on the Commission urgently to obtain statistics and indicators which in particular take account of gender and workers’ careers. The list of occupational diseases, including accidents during working hours, and the reporting and statistical analysis rules relating to this data, should be regulated and published in the EU. It recommends that the work of specialist agencies be stepped up and fully publicised, and that information and good practice also be publicised to help encourage a culture of prevention. Studies on new risks should be carried out in greater depth and proper measures (legislative or other) drawn up, following on from such research.

| 1.8. | The EESC considers that the involvement of workers and indeed of all the social partners at all levels and in the workplace is vital for effective implementation of the strategy. It calls on the Commission to step up discussions and consultation with the social partners and to develop joint action. Member States will need to promote social dialogue and collective bargaining. |
| --- | --- |

1.8.

The EESC considers that the involvement of workers and indeed of all the social partners at all levels and in the workplace is vital for effective implementation of the strategy. It calls on the Commission to step up discussions and consultation with the social partners and to develop joint action. Member States will need to promote social dialogue and collective bargaining.

| 1.9. | The EESC is critical of the fact that the Commission has not defined quantified objectives at EU level for accidents at work and occupational diseases and recommends that Member States incorporate such quantification into their national strategies. |
| --- | --- |

1.9.

The EESC is critical of the fact that the Commission has not defined quantified objectives at EU level for accidents at work and occupational diseases and recommends that Member States incorporate such quantification into their national strategies.

2.   The importance of health and safety at work

| 2.1. | The strategic importance of health and safety at work in Europe is enshrined in the Treaty on the Functioning of the European Union, of which Articles 151 and 153 address this subject specifically, with a view to harmonising progress on working conditions in particular. |
| --- | --- |

2.1.

The strategic importance of health and safety at work in Europe is enshrined in the Treaty on the Functioning of the European Union, of which Articles 151 and 153 address this subject specifically, with a view to harmonising progress on working conditions in particular.

| 2.2. | Despite a recent Eurobarometer survey showing that a large majority (85 %) of people are satisfied with health and safety at work, with 77 % affirming that information and training on this subject is available at the workplace, health and safety at work can still be improved in the EU, since the current situation is most worrying: every year in the EU more than 4  000 workers die due to accidents at work and more than 3 million are victims of serious accidents at work resulting in more than three days’ absence from work. Around one in four workers consider that their health and safety is at risk because of their work or that work has a mainly negative effect on their health. In Germany, 460 million days’ sick-leave per year resulted in an estimated loss of productivity of 3,1 % of GDP, and in the United Kingdom, in the 2010-2011 fiscal year, the net cost to the state was estimated at GBP 2  381 million. |
| --- | --- |

2.2.

Despite a recent Eurobarometer survey showing that a large majority (85 %) of people are satisfied with health and safety at work, with 77 % affirming that information and training on this subject is available at the workplace, health and safety at work can still be improved in the EU, since the current situation is most worrying: every year in the EU more than 4  000 workers die due to accidents at work and more than 3 million are victims of serious accidents at work resulting in more than three days’ absence from work. Around one in four workers consider that their health and safety is at risk because of their work or that work has a mainly negative effect on their health. In Germany, 460 million days’ sick-leave per year resulted in an estimated loss of productivity of 3,1 % of GDP, and in the United Kingdom, in the 2010-2011 fiscal year, the net cost to the state was estimated at GBP 2  381 million.

| 2.3. | According to the International Labour Organisation (ILO), around 1 60  000 fatal work-related diseases were recorded in 2008, where cancer was the leading cause of death (some 96  000 cases). It is estimated that in Europe, one person dies from a work-related accident or occupational disease every 3,5 minutes. Nevertheless, Europe remains at the forefront of progress in health and safety at work. |
| --- | --- |

2.3.

According to the International Labour Organisation (ILO), around 1 60  000 fatal work-related diseases were recorded in 2008, where cancer was the leading cause of death (some 96  000 cases). It is estimated that in Europe, one person dies from a work-related accident or occupational disease every 3,5 minutes. Nevertheless, Europe remains at the forefront of progress in health and safety at work.

| 2.4. | The costs of health and safety at work should be seen as an investment rather than merely an expense. The Commission states that, according to recent estimates, investments in this area can produce high ratios of return, averaging 2,2, and in a range between 1,29 and 2,89. Moreover, it should be highlighted that a lack of proper working conditions does generate costs for firms, and that in some countries, insurance premiums tend to be lower for firms which have no accidents at work. |
| --- | --- |

2.4.

The costs of health and safety at work should be seen as an investment rather than merely an expense. The Commission states that, according to recent estimates, investments in this area can produce high ratios of return, averaging 2,2, and in a range between 1,29 and 2,89. Moreover, it should be highlighted that a lack of proper working conditions does generate costs for firms, and that in some countries, insurance premiums tend to be lower for firms which have no accidents at work.

| 2.5. | Despite some relative success in the 2007-2012 European strategy on health and safety at work (1), in terms of both clarifying EU rules and greater Member State involvement, the fact remains that the aim of reducing the incidence of occupational diseases has not been achieved, and significant shortcomings can still be seen in SMEs, which experience major difficulties in complying with regulatory requirements due to a lack of financial resources and of technical and human capacities. Other problems include inadequate prevention of occupational diseases and work-related illnesses, insufficient statistical data and monitoring, poor interaction between health and safety at work and the environment and chemicals, and inadequate involvement of the social partners. Even less is known about the health and safety at work of workers in sectors where there is undeclared and atypical work (particularly in various farming businesses, industry and services), teleworking, self-employment, and domestic service work. |
| --- | --- |

2.5.

Despite some relative success in the 2007-2012 European strategy on health and safety at work (1), in terms of both clarifying EU rules and greater Member State involvement, the fact remains that the aim of reducing the incidence of occupational diseases has not been achieved, and significant shortcomings can still be seen in SMEs, which experience major difficulties in complying with regulatory requirements due to a lack of financial resources and of technical and human capacities. Other problems include inadequate prevention of occupational diseases and work-related illnesses, insufficient statistical data and monitoring, poor interaction between health and safety at work and the environment and chemicals, and inadequate involvement of the social partners. Even less is known about the health and safety at work of workers in sectors where there is undeclared and atypical work (particularly in various farming businesses, industry and services), teleworking, self-employment, and domestic service work.

| 2.6. | It should be noted that the decrease in accidents at work over the last few years in Europe could partly be due to the fact that there are now fewer jobs in the highest-risk sectors, given that most Member States have made substantial cuts in areas of health and safety at work, particularly in legislation, inspection and prevention activities. |
| --- | --- |

2.6.

It should be noted that the decrease in accidents at work over the last few years in Europe could partly be due to the fact that there are now fewer jobs in the highest-risk sectors, given that most Member States have made substantial cuts in areas of health and safety at work, particularly in legislation, inspection and prevention activities.

| 2.7. | The EESC agrees with the analysis of the major challenges facing the European Union and calls on the Commission to put firm policies and measures in place to address them: improving Member States’ implementation record, in particular by enhancing the capacity of SMEs to put in place effective and efficient risk prevention measures; improving the prevention of work-related diseases by tackling existing, new and emerging risks; and, finally, providing a coherent, effective response to demographic change. |
| --- | --- |

2.7.

The EESC agrees with the analysis of the major challenges facing the European Union and calls on the Commission to put firm policies and measures in place to address them: improving Member States’ implementation record, in particular by enhancing the capacity of SMEs to put in place effective and efficient risk prevention measures; improving the prevention of work-related diseases by tackling existing, new and emerging risks; and, finally, providing a coherent, effective response to demographic change.

| 2.8. | Member States’ concerted efforts lead to fewer occupational diseases and fewer accidents at work, but they also protect investment in human resources, reducing the need for additional healthcare and social costs, and promoting well-being in society in Europe. |
| --- | --- |

2.8.

Member States’ concerted efforts lead to fewer occupational diseases and fewer accidents at work, but they also protect investment in human resources, reducing the need for additional healthcare and social costs, and promoting well-being in society in Europe.

3.   Background to the 2014-2020 European strategy for health and safety at work

| 3.1. | Decent health and safety conditions, in keeping with the Europe 2020 strategy, can make a significant contribution to smart, sustainable and inclusive growth. The EU strategic framework and regulations, in conjunction with national strategies and rules, provide guarantees for the health and safety of workers. The EESC deplores the delay in bringing out this communication and the fact that it does not take into account the proposals set out in the opinion unanimously adopted by the Advisory Committee on Safety and Health, which provides tripartite representation of the various interests in the EU. |
| --- | --- |

3.1.

Decent health and safety conditions, in keeping with the Europe 2020 strategy, can make a significant contribution to smart, sustainable and inclusive growth. The EU strategic framework and regulations, in conjunction with national strategies and rules, provide guarantees for the health and safety of workers. The EESC deplores the delay in bringing out this communication and the fact that it does not take into account the proposals set out in the opinion unanimously adopted by the Advisory Committee on Safety and Health, which provides tripartite representation of the various interests in the EU.

| 3.2. | The EESC notes that the Commission communication does not envisage unblocking legislation, specifically that relating to musculoskeletal disorders and the review of the current directive on the protection of workers from carcinogens. The EESC also notes the lack of any reference to establishing a legal framework for anticipating change, an issue also raised by the European Parliament. The Committee urges the Commission to resolve this matter quickly. |
| --- | --- |

3.2.

The EESC notes that the Commission communication does not envisage unblocking legislation, specifically that relating to musculoskeletal disorders and the review of the current directive on the protection of workers from carcinogens. The EESC also notes the lack of any reference to establishing a legal framework for anticipating change, an issue also raised by the European Parliament. The Committee urges the Commission to resolve this matter quickly.

| 3.3. | The EESC has duly welcomed the European target of reducing accidents at work by 25 % (2), but is disappointed that this target has not been quantified for the 2014-2020 period. The EESC has also previously criticised the lack of comparable targets for reducing occupational diseases, which persists in this communication and therefore warrants the same criticism. It is vital to develop statistical European instruments relating to accidents at work, occupational diseases and exposure to various occupational risks. |
| --- | --- |

3.3.

The EESC has duly welcomed the European target of reducing accidents at work by 25 % (2), but is disappointed that this target has not been quantified for the 2014-2020 period. The EESC has also previously criticised the lack of comparable targets for reducing occupational diseases, which persists in this communication and therefore warrants the same criticism. It is vital to develop statistical European instruments relating to accidents at work, occupational diseases and exposure to various occupational risks.

| 3.4. | Improving implementation of EU and national rules and regulations is a need widely recognised by the social partners and society. The EESC believes that capacity-building is vital for micro-businesses and SMEs to implement efficient and effective risk-prevention measures, in order to comply with legislation. These are priority measures which require public policies that provide greater incentives, support and tailored technical advice. |
| --- | --- |

3.4.

Improving implementation of EU and national rules and regulations is a need widely recognised by the social partners and society. The EESC believes that capacity-building is vital for micro-businesses and SMEs to implement efficient and effective risk-prevention measures, in order to comply with legislation. These are priority measures which require public policies that provide greater incentives, support and tailored technical advice.

| 3.5. | Technological innovation and new forms of work organisation, particularly new, atypical working arrangements, generate new situations entailing new challenges. However, they also entail risks, including new risks that have not yet been properly identified. Identifying and preventing such risks and detailing both existing and new occupational diseases are tasks that must be carried out as a matter of urgency. There is an essential and immediate need to find solutions by updating current legislation or by enacting new legislation capable of addressing the risks that are identified. |
| --- | --- |

3.5.

Technological innovation and new forms of work organisation, particularly new, atypical working arrangements, generate new situations entailing new challenges. However, they also entail risks, including new risks that have not yet been properly identified. Identifying and preventing such risks and detailing both existing and new occupational diseases are tasks that must be carried out as a matter of urgency. There is an essential and immediate need to find solutions by updating current legislation or by enacting new legislation capable of addressing the risks that are identified.

| 3.6. | Success in extending life expectancy is changing the demographic structure in Europe and does not automatically mean that people are living longer in good health. Working conditions play an important role in health problems, which tend to increase with age, particularly due to the cumulative effect of certain occupational risks. Better prevention from the outset in people’s careers and throughout their working lives helps overcome the challenges arising from demographic change. On the other hand, it is important to fund national and European research so as to identify key issues here. |
| --- | --- |

3.6.

Success in extending life expectancy is changing the demographic structure in Europe and does not automatically mean that people are living longer in good health. Working conditions play an important role in health problems, which tend to increase with age, particularly due to the cumulative effect of certain occupational risks. Better prevention from the outset in people’s careers and throughout their working lives helps overcome the challenges arising from demographic change. On the other hand, it is important to fund national and European research so as to identify key issues here.

| 3.7. | The EESC considers that inadequate worker safety, as well as atypical forms of work, is becoming more prevalent in the EU and that the economic crisis has led some Member States and some socially irresponsible firms to make drastic cuts in their activities relating to health and safety at work. This situation is not acceptable. |
| --- | --- |

3.7.

The EESC considers that inadequate worker safety, as well as atypical forms of work, is becoming more prevalent in the EU and that the economic crisis has led some Member States and some socially irresponsible firms to make drastic cuts in their activities relating to health and safety at work. This situation is not acceptable.

| 3.8. | On the other hand, it would be fair to highlight the fact that some firms have, voluntarily and over and above their legal obligations, developed measures and action to support improvements to the health, safety and well-being of their workers. The socially responsible stance adopted by these firms warrants recognition and support from the Commission and Member States, in order to make a culture of social and environmental responsibility more widespread in the way firms operate throughout Europe. |
| --- | --- |

3.8.

On the other hand, it would be fair to highlight the fact that some firms have, voluntarily and over and above their legal obligations, developed measures and action to support improvements to the health, safety and well-being of their workers. The socially responsible stance adopted by these firms warrants recognition and support from the Commission and Member States, in order to make a culture of social and environmental responsibility more widespread in the way firms operate throughout Europe.

| 3.9. | The European Union is facing persistent economic stagnation and high levels of unemployment. Unemployment is a very particular area of occupational health, since in some cases it is associated with mental illness. People working in the undeclared labour market are also more subject to high levels of risk and accidents at work. The EESC is convinced that, as well as making structural investments, improvements in living conditions, especially in health and safety at work, make a very important contribution to sustainable economic growth, the promotion of high-quality jobs and social cohesion. |
| --- | --- |

3.9.

The European Union is facing persistent economic stagnation and high levels of unemployment. Unemployment is a very particular area of occupational health, since in some cases it is associated with mental illness. People working in the undeclared labour market are also more subject to high levels of risk and accidents at work. The EESC is convinced that, as well as making structural investments, improvements in living conditions, especially in health and safety at work, make a very important contribution to sustainable economic growth, the promotion of high-quality jobs and social cohesion.

4.   General comments

| 4.1. | Development of a comprehensive framework for health and safety at work and its proper implementation throughout the EU is essential for sustainable economic growth. The majority of respondents to the consultation launched by the EU (3) confirmed the need for further coordination at EU level (93 % of respondents) and supported the aim of maintaining a high level of compliance with the principles of health and safety at work, regardless of the size of the company. |
| --- | --- |

4.1.

Development of a comprehensive framework for health and safety at work and its proper implementation throughout the EU is essential for sustainable economic growth. The majority of respondents to the consultation launched by the EU (3) confirmed the need for further coordination at EU level (93 % of respondents) and supported the aim of maintaining a high level of compliance with the principles of health and safety at work, regardless of the size of the company.

| 4.2. | Although some improvements have been seen in a number Member States in recent years, particularly in terms of accidents at work, which may also partly be due to lower levels of employment, a culture of prevention has not become widespread in the European Union, with SMEs facing difficulties in terms of resources and capabilities; this can only be overcome by public bodies adopting measures on information, training and technical support and advice. Such action by public authorities must be able to meet the needs of various sectors of activities and be specific to each one of them. |
| --- | --- |

4.2.

Although some improvements have been seen in a number Member States in recent years, particularly in terms of accidents at work, which may also partly be due to lower levels of employment, a culture of prevention has not become widespread in the European Union, with SMEs facing difficulties in terms of resources and capabilities; this can only be overcome by public bodies adopting measures on information, training and technical support and advice. Such action by public authorities must be able to meet the needs of various sectors of activities and be specific to each one of them.

| 4.3. | The involvement of workers’ representatives, in firms and in the workplace, in dealing with occupational risks is a key feature of social dialogue. Financial support for businesses should only be granted if health and safety standards at work are fully complied with. Experience in various European countries demonstrates the importance of joint agreements which allow forms of regional or sectoral representation to be set up and which encourage social dialogue and prevention. |
| --- | --- |

4.3.

The involvement of workers’ representatives, in firms and in the workplace, in dealing with occupational risks is a key feature of social dialogue. Financial support for businesses should only be granted if health and safety standards at work are fully complied with. Experience in various European countries demonstrates the importance of joint agreements which allow forms of regional or sectoral representation to be set up and which encourage social dialogue and prevention.

| 4.4. | There is insufficient coordination between the various public services in matters relating to health and safety at work. There is likewise some inefficiency in and poor use of the mechanisms for involving the social partners at all levels in negotiating and putting in place sector-specific agreements; this is something which it is important to improve. More systematic cooperation between public health services and prevention services at the workplace makes for better prevention and better detection of occupational diseases. Single points of contact should be set up in Member States, facilitating links between public authorities and SMEs. |
| --- | --- |

4.4.

There is insufficient coordination between the various public services in matters relating to health and safety at work. There is likewise some inefficiency in and poor use of the mechanisms for involving the social partners at all levels in negotiating and putting in place sector-specific agreements; this is something which it is important to improve. More systematic cooperation between public health services and prevention services at the workplace makes for better prevention and better detection of occupational diseases. Single points of contact should be set up in Member States, facilitating links between public authorities and SMEs.

| 4.5. | Due to budgetary difficulties, most Member States have reduced the human and financial resources they allocate to institutions and bodies which deal more with occupational health and safety, in particular labour inspectorates, which have seen a marked decrease in their work inspecting, supporting and advising businesses. The EESC calls for this situation to be reversed, as it is totally unacceptable, especially since an increasing number of significant new risks have emerged and workers’ living and safety conditions (growing psycho-social risks partly due to unemployment and work insecurity) have worsened. |
| --- | --- |

4.5.

Due to budgetary difficulties, most Member States have reduced the human and financial resources they allocate to institutions and bodies which deal more with occupational health and safety, in particular labour inspectorates, which have seen a marked decrease in their work inspecting, supporting and advising businesses. The EESC calls for this situation to be reversed, as it is totally unacceptable, especially since an increasing number of significant new risks have emerged and workers’ living and safety conditions (growing psycho-social risks partly due to unemployment and work insecurity) have worsened.

| 4.6. | Member States should encourage and support negotiation and collective bargaining, thereby ensuring an important and effective role for the social partners in the design and implementation of policies on health and safety and in the promotion of a safe, healthy environment at the workplace. |
| --- | --- |

4.6.

Member States should encourage and support negotiation and collective bargaining, thereby ensuring an important and effective role for the social partners in the design and implementation of policies on health and safety and in the promotion of a safe, healthy environment at the workplace.

| 4.7. | The EESC regrets the scant progress made on European statistics on health and safety and stresses the importance and urgency of producing definitions and uniform EU-level recognition and reporting schemes. |
| --- | --- |

4.7.

The EESC regrets the scant progress made on European statistics on health and safety and stresses the importance and urgency of producing definitions and uniform EU-level recognition and reporting schemes.

| 4.8. | The EESC shares the European Commission’s belief according to which the social partners’ involvement at all levels will ensure the efficient, effective design and implementation of policies and strategies on health and safety at work. The tripartite Advisory Committee on Safety and Health at Work and European social dialogue structures should play a key role here. When defining its priorities, the Commission should take more account of the Advisory Committee’s proposals, often unanimously adopted. |
| --- | --- |

4.8.

The EESC shares the European Commission’s belief according to which the social partners’ involvement at all levels will ensure the efficient, effective design and implementation of policies and strategies on health and safety at work. The tripartite Advisory Committee on Safety and Health at Work and European social dialogue structures should play a key role here. When defining its priorities, the Commission should take more account of the Advisory Committee’s proposals, often unanimously adopted.

| 4.9. | The EESC, as regards the framework agreements concluded as part of European social dialogue, urges the Commission to rapidly look into whether representativeness and compliance with Community law are secured and, consequently, to commit itself to taking the measures required to ensure that the agreements are adhered to. |
| --- | --- |

4.9.

The EESC, as regards the framework agreements concluded as part of European social dialogue, urges the Commission to rapidly look into whether representativeness and compliance with Community law are secured and, consequently, to commit itself to taking the measures required to ensure that the agreements are adhered to.

| 4.10. | The EESC recommends that Member States make use of the European Social Fund and other European Structural and Investment Funds (ESIF) to finance measures in the field of health and safety at work. |
| --- | --- |

4.10.

The EESC recommends that Member States make use of the European Social Fund and other European Structural and Investment Funds (ESIF) to finance measures in the field of health and safety at work.

| 4.11. | The EESC agrees with the Commission on the need to explore in greater depth synergies between policies on health and safety at work and other public policy areas. The EESC firmly believes that progress in this field is still very limited in most Member States. |
| --- | --- |

4.11.

The EESC agrees with the Commission on the need to explore in greater depth synergies between policies on health and safety at work and other public policy areas. The EESC firmly believes that progress in this field is still very limited in most Member States.

5.   Specific comments

5.1.   National strategies, enforcement of legislation and monitoring

| 5.1.1. | The EESC endorses the European Commission’s stance on the need for the Member States, in consultation with the social partners, to revise national strategies in light of the new Strategic Framework for the EU. The Committee recommends, however, that a detailed assessment be carried out of the impact of the previous national strategy. Ownership of the 2014-2020 Strategy by the social partners should be considered essential by all Member States and standard indices and criteria should be found, systematically indicating the level of ownership and allowing for systematic monitoring and evaluation. |
| --- | --- |

5.1.1.

The EESC endorses the European Commission’s stance on the need for the Member States, in consultation with the social partners, to revise national strategies in light of the new Strategic Framework for the EU. The Committee recommends, however, that a detailed assessment be carried out of the impact of the previous national strategy. Ownership of the 2014-2020 Strategy by the social partners should be considered essential by all Member States and standard indices and criteria should be found, systematically indicating the level of ownership and allowing for systematic monitoring and evaluation.

| 5.1.2. | The EESC agrees with the Commission on the need for the Member States, in cooperation with the European Agency for Safety and Health at Work (EU-OSHA), to create a database on health and safety at work and to hold regular meetings (at least twice yearly) involving EU-OSHA, the Advisory Committee on Safety and Health (ACSH) and the Senior Labour Inspectorate Committee (SLIC). |
| --- | --- |

5.1.2.

The EESC agrees with the Commission on the need for the Member States, in cooperation with the European Agency for Safety and Health at Work (EU-OSHA), to create a database on health and safety at work and to hold regular meetings (at least twice yearly) involving EU-OSHA, the Advisory Committee on Safety and Health (ACSH) and the Senior Labour Inspectorate Committee (SLIC).

| 5.1.3. | The provision of financial and technical support for SMEs to carry out the online interactive risk assessment (OiRA) and to use other IT-based tools in the Member States should be seen as essential and should focus on priority sectors. The EU-OSHA should be given more financial and human resources to be able to play a key role in this. The EESC regrets that the Member States have made very limited use of the ESF to finance training and education activities. |
| --- | --- |

5.1.3.

The provision of financial and technical support for SMEs to carry out the online interactive risk assessment (OiRA) and to use other IT-based tools in the Member States should be seen as essential and should focus on priority sectors. The EU-OSHA should be given more financial and human resources to be able to play a key role in this. The EESC regrets that the Member States have made very limited use of the ESF to finance training and education activities.

| 5.1.4. | The identification of good practice and specific guidance for SMEs in particular should take account of the specific conditions in each sector and of the nature of the businesses concerned, and the EU-OSHA should step up its activities in these areas and promote a culture of prevention. |
| --- | --- |

5.1.4.

The identification of good practice and specific guidance for SMEs in particular should take account of the specific conditions in each sector and of the nature of the businesses concerned, and the EU-OSHA should step up its activities in these areas and promote a culture of prevention.

| 5.1.5. | The work of labour inspectorates in firms in the different Member States should be improved, especially in the areas of information, consultation, emerging risks and efforts to facilitate compliance with legislation and identify and deter undeclared work. Labour inspectorates should therefore be given increased resources and powers. |
| --- | --- |

5.1.5.

The work of labour inspectorates in firms in the different Member States should be improved, especially in the areas of information, consultation, emerging risks and efforts to facilitate compliance with legislation and identify and deter undeclared work. Labour inspectorates should therefore be given increased resources and powers.

| 5.1.6. | The EESC supports the measures to evaluate the programme for the exchange/training of labour inspectors, as well as measures to enhance cooperation between labour inspectorates within the SLIC. |
| --- | --- |

5.1.6.

The EESC supports the measures to evaluate the programme for the exchange/training of labour inspectors, as well as measures to enhance cooperation between labour inspectorates within the SLIC.

| 5.1.7. | The EESC agrees with the SLIC that health-and-safety-related topics are strategic priorities for the EU, in particular musculoskeletal disorders, long latency diseases (such as occupational cancers and chronic conditions like occupationally-caused lung disease), proper implementation of REACH and work-related psychosocial risks (4). It would also be useful to broaden SMEs’ responsibilities for health and safety, improve compliance with requirements, provide accessible and updated information and guidance and ensure that large companies shoulder their responsibilities with respect to improving the performance of SMEs with which they work. |
| --- | --- |

5.1.7.

The EESC agrees with the SLIC that health-and-safety-related topics are strategic priorities for the EU, in particular musculoskeletal disorders, long latency diseases (such as occupational cancers and chronic conditions like occupationally-caused lung disease), proper implementation of REACH and work-related psychosocial risks (4). It would also be useful to broaden SMEs’ responsibilities for health and safety, improve compliance with requirements, provide accessible and updated information and guidance and ensure that large companies shoulder their responsibilities with respect to improving the performance of SMEs with which they work.

5.2.   Simplification of legislation

| 5.2.1. | The EESC considers that any simplification of the legislation in force must not in any way jeopardise current levels of health and safety at work for European workers or the constant improvements in the conditions thereof. The EU’s public consultation on this shows up differences between social partners on the simplification of current legislation to be included in a new European policy instrument: 73,4 % of employees’ organisations were against such simplification, while only 4,3 % of employers’ organisations were against it (5). Of all respondents (totalling 523), 40,5 % supported simplification, 46,1 % held the opposite view and 13,4 % had no opinion on the matter. Even so, the EESC feels that some administrative burdens on firms could be reduced, but without jeopardising workers’ health and safety conditions. |
| --- | --- |

5.2.1.

The EESC considers that any simplification of the legislation in force must not in any way jeopardise current levels of health and safety at work for European workers or the constant improvements in the conditions thereof. The EU’s public consultation on this shows up differences between social partners on the simplification of current legislation to be included in a new European policy instrument: 73,4 % of employees’ organisations were against such simplification, while only 4,3 % of employers’ organisations were against it (5). Of all respondents (totalling 523), 40,5 % supported simplification, 46,1 % held the opposite view and 13,4 % had no opinion on the matter. Even so, the EESC feels that some administrative burdens on firms could be reduced, but without jeopardising workers’ health and safety conditions.

| 5.2.2. | It is worth noting that, according to the European survey of enterprises on new and emerging risks (ESENER), the main reasons given for firms addressing health and safety at work are ‘fulfilment of legal obligations’ (90 %), ‘requests from employees or their representatives’ (76 %) and ‘pressure from the labour inspectorate’ (60 %), with all of these drivers generating considerable pressure. In contrast, the survey shows that of the firms that do not carry out regular safety checks, only 37 % gave ‘too complex legal obligations’ as a reason for not doing so. |
| --- | --- |

5.2.2.

It is worth noting that, according to the European survey of enterprises on new and emerging risks (ESENER), the main reasons given for firms addressing health and safety at work are ‘fulfilment of legal obligations’ (90 %), ‘requests from employees or their representatives’ (76 %) and ‘pressure from the labour inspectorate’ (60 %), with all of these drivers generating considerable pressure. In contrast, the survey shows that of the firms that do not carry out regular safety checks, only 37 % gave ‘too complex legal obligations’ as a reason for not doing so.

| 5.2.3. | The EESC recommends that the identification of possible simplifications and/or the reduction of unnecessary administrative burdens for companies, following an analysis of the legislation in force, should be the outcome of broad debate and negotiations involving the social partners at all levels. The EESC draws attention to Treaty Article 153, which stipulates that European legislation should set minimum conditions and authorise Member States to maintain or adopt rules which ensure better protection for workers. This helps drive progress and enables European initiatives to be brought forward, as demonstrated with the ban on asbestos in numerous Member States before the Commission adopted a similar decision. |
| --- | --- |

5.2.3.

The EESC recommends that the identification of possible simplifications and/or the reduction of unnecessary administrative burdens for companies, following an analysis of the legislation in force, should be the outcome of broad debate and negotiations involving the social partners at all levels. The EESC draws attention to Treaty Article 153, which stipulates that European legislation should set minimum conditions and authorise Member States to maintain or adopt rules which ensure better protection for workers. This helps drive progress and enables European initiatives to be brought forward, as demonstrated with the ban on asbestos in numerous Member States before the Commission adopted a similar decision.

5.3.   New and emerging risks

| 5.3.1. | There is a great need to further develop scientific knowledge on new risks, in order to prevent work-related illnesses and occupational diseases, and efforts should be concentrated at EU level. Closer interaction/coordination between the various European and national institutions is essential to find appropriate ways to define strategies and legislative measures to tackle new and emerging risks. Where the existing institutions are concerned, the Committee sees no need to set up a new independent scientific consultation body. |
| --- | --- |

5.3.1.

There is a great need to further develop scientific knowledge on new risks, in order to prevent work-related illnesses and occupational diseases, and efforts should be concentrated at EU level. Closer interaction/coordination between the various European and national institutions is essential to find appropriate ways to define strategies and legislative measures to tackle new and emerging risks. Where the existing institutions are concerned, the Committee sees no need to set up a new independent scientific consultation body.

| 5.3.2. | The EESC has consistently highlighted the need to ensure better health and safety conditions for specific categories of workers (such as young people, women, older workers, migrants, workers on atypical employment contracts and workers with disabilities) and to address the new issues arising from changes in the way work is organised (especially stress and mental health problems at work) — topics that are widely recognised by Member States, social partners and society as a whole. The EESC believes that these problems should be tackled, since they are on the increase and have economic and social costs associated with them. It is to be stressed that the gender perspective makes it possible to coordinate health at work policies with progress on equality issues. |
| --- | --- |

5.3.2.

The EESC has consistently highlighted the need to ensure better health and safety conditions for specific categories of workers (such as young people, women, older workers, migrants, workers on atypical employment contracts and workers with disabilities) and to address the new issues arising from changes in the way work is organised (especially stress and mental health problems at work) — topics that are widely recognised by Member States, social partners and society as a whole. The EESC believes that these problems should be tackled, since they are on the increase and have economic and social costs associated with them. It is to be stressed that the gender perspective makes it possible to coordinate health at work policies with progress on equality issues.

5.4.   Statistical data

| 5.4.1. | The considerable lack of reliable, timely and comparable statistics at European level constitutes one of the most pressing issues relating to health and safety at work. This regrettable situation, which has incomprehensibly dragged on for years, must be addressed. The EESC supports the steps proposed by the Commission to overcome these difficulties, to which the Commission and Member States should give high priority, since they can, if they so wish, develop additional, more detailed statistics adjusted to national contexts. Cooperation with the WHO on extension of the ICD-10 data set could enable healthcare databases to be used, resulting in fast, effective data collection. |
| --- | --- |

5.4.1.

The considerable lack of reliable, timely and comparable statistics at European level constitutes one of the most pressing issues relating to health and safety at work. This regrettable situation, which has incomprehensibly dragged on for years, must be addressed. The EESC supports the steps proposed by the Commission to overcome these difficulties, to which the Commission and Member States should give high priority, since they can, if they so wish, develop additional, more detailed statistics adjusted to national contexts. Cooperation with the WHO on extension of the ICD-10 data set could enable healthcare databases to be used, resulting in fast, effective data collection.

| 5.4.2. | The EESC regrets the interruption of the processing of European statistics on occupational diseases and calls for statistical research to be resumed on occupational exposure to carcinogenic agents, as was the case with the CAREX project developed in the 1990s. The EESC welcomes recent efforts by the Commission to create a database and develop a model for estimating occupational exposure to a list of dangerous chemical products in EU Member States and in EFTA/EEA countries (Hazchem project). |
| --- | --- |

5.4.2.

The EESC regrets the interruption of the processing of European statistics on occupational diseases and calls for statistical research to be resumed on occupational exposure to carcinogenic agents, as was the case with the CAREX project developed in the 1990s. The EESC welcomes recent efforts by the Commission to create a database and develop a model for estimating occupational exposure to a list of dangerous chemical products in EU Member States and in EFTA/EEA countries (Hazchem project).

5.5.   Cooperation with international institutions

| 5.5.1. | The EESC considers that strengthening cooperation with international organisations, in particular the ILO, the WHO and the OECD, should be a priority in order to reduce accidents and occupational diseases worldwide. |
| --- | --- |

5.5.1.

The EESC considers that strengthening cooperation with international organisations, in particular the ILO, the WHO and the OECD, should be a priority in order to reduce accidents and occupational diseases worldwide.

| 5.5.2. | Particular attention should be paid to health and safety shortcomings at work in global supply chains, thereby contributing to the existence of safer workplaces, not only in Europe but on all continents. Consideration should be given to including this issue in the EU’s agreements, in order to ensure compliance by the EU’s partners with ILO conventions and recommendations. The EESC would refer to its previous opinions on asbestos and calls on the Commission to adopt a clear position to obtain a world ban on the use of asbestos. |
| --- | --- |

5.5.2.

Particular attention should be paid to health and safety shortcomings at work in global supply chains, thereby contributing to the existence of safer workplaces, not only in Europe but on all continents. Consideration should be given to including this issue in the EU’s agreements, in order to ensure compliance by the EU’s partners with ILO conventions and recommendations. The EESC would refer to its previous opinions on asbestos and calls on the Commission to adopt a clear position to obtain a world ban on the use of asbestos.

| 5.5.3. | The EESC recommends that the Member States apply international standards and conventions and that the Commission draw up regular reports on Member States’ compliance with these. |
| --- | --- |

5.5.3.

The EESC recommends that the Member States apply international standards and conventions and that the Commission draw up regular reports on Member States’ compliance with these.

Brussels, 11 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

---

(1)  Between 2007 and 2011, the incidence rate of accidents leading to absences of more than three days fell by 27,9 % in the EU.

1

(2)  See OJ C 224, 30.8.2008, p. 88.

2

(3)  Public consultation on the new occupational health and safety policy framework — Employment, social affairs and inclusion, June 2014.

3

(4)  EU strategic priorities 2013-2020, Doc.2091_EN, February 2012.

4

(5)  Public consultation on the new occupational health and safety policy framework, June 2014.

5

---

APPENDIX

to the opinion of the European Economic and Social Committee

The following amendments were rejected, although they did receive at least a quarter of the votes cast:

Point 1.8

Amend as follows:

| | The EESC considers that the involvement of workers and indeed of all the social partners at all levels and also in the workplace is vital for effective implementation of the strategy. It calls on the Commission to step up discussions and consultation with the social partners and to develop joint action. Member States will need to promote
  encourage social dialogue on health and safety issues between employers and the representatives of workers
  and collective bargaining. |
| --- | --- |

The EESC considers that the involvement of workers and indeed of all the social partners at all levels and also in the workplace is vital for effective implementation of the strategy. It calls on the Commission to step up discussions and consultation with the social partners and to develop joint action. Member States will need to promote
  encourage social dialogue on health and safety issues between employers and the representatives of workers
  and collective bargaining.

Outcome of the vote:

| For | : | 66 |
| --- | --- | --- |
| Against | : | 143 |
| Abstentions | : | 17 |

For

:

66

Against

:

143

Abstentions

:

17

Point 3.2

Amend as follows:

| | The EESC notes that the Commission communication does not envisage unblocking legislation, specifically that relating to musculoskeletal disorders and the review of the current directive on the protection of workers from carcinogens. The EESC also notes the lack of any reference to establishing a legal framework for anticipating change, an issue also raised by the European Parliament. The Committee urges the Commission to resolve this matter quickly. |
| --- | --- |

The EESC notes that the Commission communication does not envisage unblocking legislation, specifically that relating to musculoskeletal disorders and the review of the current directive on the protection of workers from carcinogens. The EESC also notes the lack of any reference to establishing a legal framework for anticipating change, an issue also raised by the European Parliament. The Committee urges the Commission to resolve this matter quickly.

Outcome of the vote:

| For | : | 60 |
| --- | --- | --- |
| Against | : | 141 |
| Abstentions | : | 13 |

For

:

60

Against

:

141

Abstentions

:

13

Point 3.5

Amend as follows:

| | Technological innovation and new forms of work organisation, particularly new, atypical working arrangements, generate new situations entailing new challenges. However, they also
  may sometimes entail some risks, including new risks that have not yet been properly identified. Identifying and preventing such risks and detailing both existing and new occupational diseases are tasks that must be carried out as a matter of urgency. There is an essential and immediate need to find solutions to by updating current legislation or by enacting new legislation capable of addressing the risks that are identified. |
| --- | --- |

Technological innovation and new forms of work organisation, particularly new, atypical working arrangements, generate new situations entailing new challenges. However, they also
  may sometimes entail some risks, including new risks that have not yet been properly identified. Identifying and preventing such risks and detailing both existing and new occupational diseases are tasks that must be carried out as a matter of urgency. There is an essential and immediate need to find solutions to by updating current legislation or by enacting new legislation capable of addressing the risks that are identified.

Outcome of the vote:

| For | : | 77 |
| --- | --- | --- |
| Against | : | 140 |
| Abstentions | : | 10 |

For

:

77

Against

:

140

Abstentions

:

10

Point 3.9

Amend as follows:

| | The European Union is facing persistent economic stagnation and high levels of unemployment. Unemployment is a very particular area of occupational health, since in some cases it is associated with mental illness. People working in the undeclared labour market may in some cases
  are also be more subject to high levels of risk and accidents at work. The EESC is convinced that, as well as making structural investments, improvements in living conditions, especially in health and safety at work, make a very important contribution to sustainable economic growth, the promotion of high-quality jobs and social cohesion. |
| --- | --- |

The European Union is facing persistent economic stagnation and high levels of unemployment. Unemployment is a very particular area of occupational health, since in some cases it is associated with mental illness. People working in the undeclared labour market may in some cases
  are also be more subject to high levels of risk and accidents at work. The EESC is convinced that, as well as making structural investments, improvements in living conditions, especially in health and safety at work, make a very important contribution to sustainable economic growth, the promotion of high-quality jobs and social cohesion.

Outcome of the vote:

| For | : | 62 |
| --- | --- | --- |
| Against | : | 145 |
| Abstentions | : | 10 |

For

:

62

Against

:

145

Abstentions

:

10

Point 4.6

Amend as follows:

| | Member States should encourage and support social dialogue between employers and the representatives of workers
  negotiation and collective bargaining, thereby ensuring an important and effective role for the social partners in the design and implementation of policies on health and safety and in the promotion of a safe, and healthy environment at the workplace. |
| --- | --- |

Member States should encourage and support social dialogue between employers and the representatives of workers
  negotiation and collective bargaining, thereby ensuring an important and effective role for the social partners in the design and implementation of policies on health and safety and in the promotion of a safe, and healthy environment at the workplace.

Outcome of the vote:

| For | : | 66 |
| --- | --- | --- |
| Against | : | 141 |
| Abstentions | : | 17 |

For

:

66

Against

:

141

Abstentions

:

17

---

| 14.7.2015 | EN | Official Journal of the European Union | C 230/91 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/91

---

Opinion of the European Economic and Social Committee on the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on resource efficiency opportunities in the building sector

(COM(2014) 445 final)

on the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Towards a circular economy: A zero waste programme for Europe

(COM(2014) 398 final)

and on the ‘Proposal for a Directive of the European Parliament and of the Council amending Directives 2008/98/EC on waste, 94/62/EC on packaging and packaging waste, 1999/31/EC on the landfill of waste, 2000/53/EC on end-of-life vehicles, 2006/66/EC on batteries and accumulators and waste batteries and accumulators, and 2012/19/EU on waste electrical and electronic equipment’

(COM(2014) 397 final — 2014/0201 (COD))

(2015/C 230/14)

| Rapporteur: | An LE NOUAIL MARLIÈRE |
| --- | --- |

Rapporteur:

An LE NOUAIL MARLIÈRE

On 14 July 2014, 28 July 2014 and 20 October 2014 respectively, the Commission, the European Parliament and the Council decided to consult the European Economic and Social Committee, under Articles 43(2) and 304 of the Treaty on the Functioning of the European Union, on the

communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on Resource efficiency opportunities in the building sector

COM(2014) 0445 final

and on the

communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Towards a circular economy: A zero waste programme for Europe

COM(2014) 398 final

and on the

‘Proposal for a Directive of the European Parliament and of the Council amending Directives 2008/98/EC on waste, 94/62/EC on packaging and packaging waste, 1999/31/EC on the landfill of waste, 2000/53/EC on end-of-life vehicles, 2006/66/EC on batteries and accumulators and waste batteries and accumulators, and 2012/19/EU on waste electrical and electronic equipment’

COM(2014) 0397 final — 2014/0201 (COD).

The Section for Agriculture, Rural Development and the Environment, which was responsible for preparing the Committee’s work on the subject, adopted its opinion on 12 November 2014.

At its 503rd plenary session, held on 10 and 11 December 2014 (meeting of 10 December 2014), the European Economic and Social Committee adopted the following opinion by 129 votes to 3 with 5 abstentions.

1.   Conclusions and recommendations

| 1.1. | The Committee welcomes the two communications and the package of amendments to the waste directives and supports the campaign to make all businesses and consumers aware of the need to phase out the current linear economic model of ‘take, make, consume and dispose’ and accelerate the transition to a circular model that is restorative by design and aims to rely on renewable energy, in order to minimise the use of natural resources. |
| --- | --- |

1.1.

The Committee welcomes the two communications and the package of amendments to the waste directives and supports the campaign to make all businesses and consumers aware of the need to phase out the current linear economic model of ‘take, make, consume and dispose’ and accelerate the transition to a circular model that is restorative by design and aims to rely on renewable energy, in order to minimise the use of natural resources.

| 1.2. | The Committee endorses the objective of establishing an enabling framework for this transition covering the entire lifecycle of products, from raw material supply to eco-design, retailing, business models and consumption patterns, reuse and re-manufacturing, and the use of waste as a resource. |
| --- | --- |

1.2.

The Committee endorses the objective of establishing an enabling framework for this transition covering the entire lifecycle of products, from raw material supply to eco-design, retailing, business models and consumption patterns, reuse and re-manufacturing, and the use of waste as a resource.

| 1.3. | However, the Committee regrets that the specific proposals put forward by the Commission focus too much on waste policies and legislation while similar specific proposals ‘upstream’ aimed at improving the entire lifecycle of products are missing. The EESC expects the Commission to submit both a roadmap for such measures with clear indications of timeline, process and budgets, as well as proposals concerning the use of innovative financing instruments, such as green bonds. |
| --- | --- |

1.3.

However, the Committee regrets that the specific proposals put forward by the Commission focus too much on waste policies and legislation while similar specific proposals ‘upstream’ aimed at improving the entire lifecycle of products are missing. The EESC expects the Commission to submit both a roadmap for such measures with clear indications of timeline, process and budgets, as well as proposals concerning the use of innovative financing instruments, such as green bonds.

| 1.4. | The Committee calls on the Commission to integrate the enabling framework for a circular economy with other European policies, such as energy and climate policy and industrial policy, including the EU re-industrialisation objective. The EESC supports the complementing of the Europe 2020 headline targets with a resource efficiency target as suggested by the European Resource Efficiency Platform and considered in the communication Towards a circular economy. |
| --- | --- |

1.4.

The Committee calls on the Commission to integrate the enabling framework for a circular economy with other European policies, such as energy and climate policy and industrial policy, including the EU re-industrialisation objective. The EESC supports the complementing of the Europe 2020 headline targets with a resource efficiency target as suggested by the European Resource Efficiency Platform and considered in the communication Towards a circular economy.

| 1.5. | Although the Commission has considered the general employment benefits and also launched a Green Employment Initiative in the circular economy policy package, the Committee regrets that the opportunity to investigate more specifically the impact, risks, and benefits for employment has not been used. In particular, no consideration has been given to the employment potential in waste prevention, reuse and re-manufacturing. On the other hand, more attention should be paid to ensuring decent working conditions and to improving health and safety standards for the workforce involved. |
| --- | --- |

1.5.

Although the Commission has considered the general employment benefits and also launched a Green Employment Initiative in the circular economy policy package, the Committee regrets that the opportunity to investigate more specifically the impact, risks, and benefits for employment has not been used. In particular, no consideration has been given to the employment potential in waste prevention, reuse and re-manufacturing. On the other hand, more attention should be paid to ensuring decent working conditions and to improving health and safety standards for the workforce involved.

| 1.6. | The framework proposed by the European Commission should share the work involved in promoting awareness and changing behaviour fairly between stakeholders: looking to the future, achieving scientific progress, introducing innovative applications, and safeguarding Europe’s competitiveness and the common interest should all be kept in balance. |
| --- | --- |

1.6.

The framework proposed by the European Commission should share the work involved in promoting awareness and changing behaviour fairly between stakeholders: looking to the future, achieving scientific progress, introducing innovative applications, and safeguarding Europe’s competitiveness and the common interest should all be kept in balance.

| 1.7. | Consumers and producers must be made aware of their responsibilities. Consumers must be informed so that they can make responsible purchases, traceability must be optimal and producers must be held accountable. |
| --- | --- |

1.7.

Consumers and producers must be made aware of their responsibilities. Consumers must be informed so that they can make responsible purchases, traceability must be optimal and producers must be held accountable.

| 1.8. | Phasing out the landfilling of recyclable waste, and higher waste recycling targets, as proposed by the Commission, are preconditions for the shift towards a circular economy and should be pursued. The Commission should also bring the public on board by ensuring that targets are credible: they need to be acceptable, high-quality and proportionate. |
| --- | --- |

1.8.

Phasing out the landfilling of recyclable waste, and higher waste recycling targets, as proposed by the Commission, are preconditions for the shift towards a circular economy and should be pursued. The Commission should also bring the public on board by ensuring that targets are credible: they need to be acceptable, high-quality and proportionate.

| 1.9. | The Committee also welcomes the Commission’s measures to improve the implementation of EU waste laws, in particular by introducing better monitoring and governance instruments. If the EU is to go from recycling 42 % of municipal waste now to 50 % in 2020 and 70 % in 2030, it will need to guarantee that certain countries try harder and apply advanced waste management solutions. Steps should also be taken to improve the quality of initial products and their components and the quality of the recycling process as a whole. |
| --- | --- |

1.9.

The Committee also welcomes the Commission’s measures to improve the implementation of EU waste laws, in particular by introducing better monitoring and governance instruments. If the EU is to go from recycling 42 % of municipal waste now to 50 % in 2020 and 70 % in 2030, it will need to guarantee that certain countries try harder and apply advanced waste management solutions. Steps should also be taken to improve the quality of initial products and their components and the quality of the recycling process as a whole.

| 1.10. | The Committee points out that the Commission proposals fail to make use of the waste hierarchy set out in the Waste Framework Directive, which defines an order of priority of waste prevention; preparing for reuse; recycling; other recovery (energy); and disposal. A thorough investigation of the option of waste prevention targets and other waste prevention measures is missing, apart from a non-binding food waste reduction target. In the long term, the total volume of materials consumed and residual waste should be brought under control and reduced for the sake of the environment. |
| --- | --- |

1.10.

The Committee points out that the Commission proposals fail to make use of the waste hierarchy set out in the Waste Framework Directive, which defines an order of priority of waste prevention; preparing for reuse; recycling; other recovery (energy); and disposal. A thorough investigation of the option of waste prevention targets and other waste prevention measures is missing, apart from a non-binding food waste reduction target. In the long term, the total volume of materials consumed and residual waste should be brought under control and reduced for the sake of the environment.

| 1.11. | In the same way as reuse (on the product level), multiple recycling (on the material level) saves primary raw materials, energy consumption and greenhouse gas emissions. The revision of the waste package now offers a unique opportunity to embrace the principle of multiple recycling for permanent materials. |
| --- | --- |

1.11.

In the same way as reuse (on the product level), multiple recycling (on the material level) saves primary raw materials, energy consumption and greenhouse gas emissions. The revision of the waste package now offers a unique opportunity to embrace the principle of multiple recycling for permanent materials.

| 1.12. | The circular economy should not gauge its merits solely on the basis of waste produced; it must also encourage people to protect material and human resources along the entire length of the value chain and seek to eradicate all processes which represent a danger to the environment or people. |
| --- | --- |

1.12.

The circular economy should not gauge its merits solely on the basis of waste produced; it must also encourage people to protect material and human resources along the entire length of the value chain and seek to eradicate all processes which represent a danger to the environment or people.

| 1.13. | The Committee recommends that the policy package be complemented with measures specifically supporting the preparation of used products for reuse. Placing preparation for reuse at the same level as recycling, as the Commission does in its recycling targets, fails to respect the waste hierarchy. Short circles must be given priority. Reuse of products, preparation for reuse and re-manufacturing can make best use of the value embedded in products, and increases opportunities to retain value chains in the EU, support territorial development and create jobs. |
| --- | --- |

1.13.

The Committee recommends that the policy package be complemented with measures specifically supporting the preparation of used products for reuse. Placing preparation for reuse at the same level as recycling, as the Commission does in its recycling targets, fails to respect the waste hierarchy. Short circles must be given priority. Reuse of products, preparation for reuse and re-manufacturing can make best use of the value embedded in products, and increases opportunities to retain value chains in the EU, support territorial development and create jobs.

| 1.14. | Following this approach, the EU should also encourage all Member States to turn their waste plans into territorial circular economy plans focusing on measures to promote material resource savings and safeguard human well-being. |
| --- | --- |

1.14.

Following this approach, the EU should also encourage all Member States to turn their waste plans into territorial circular economy plans focusing on measures to promote material resource savings and safeguard human well-being.

| 1.15. | Finally, the Committee also recommends broadening the sectoral approach in order to promote the circular economy. |
| --- | --- |

1.15.

Finally, the Committee also recommends broadening the sectoral approach in order to promote the circular economy.

2.   Introduction

| 2.1. | On 2 July 2014, the European Commission published a package of five proposals (1) comprising:






  a) | the communication Towards a circular economy: A zero waste programme for Europe (COM(2014) 398 final); |
| --- | --- | --- |

2.1.

On 2 July 2014, the European Commission published a package of five proposals (1) comprising:

a)

the communication Towards a circular economy: A zero waste programme for Europe (COM(2014) 398 final);

| b) | the proposal for a new directive amending Directives 2008/98/EC on waste, 94/62/EC on packaging and packaging waste, 1999/31/EC on the landfill of waste, 2000/53/EC on end-of-life vehicles, 2006/66/EC on batteries and accumulators and waste batteries and accumulators, and 2012/19/EU on waste electrical and electronic equipment (COM(2014) 397 final); |
| --- | --- |

b)

the proposal for a new directive amending Directives 2008/98/EC on waste, 94/62/EC on packaging and packaging waste, 1999/31/EC on the landfill of waste, 2000/53/EC on end-of-life vehicles, 2006/66/EC on batteries and accumulators and waste batteries and accumulators, and 2012/19/EU on waste electrical and electronic equipment (COM(2014) 397 final);

| c) | the communication on Resource efficiency opportunities in the building sector (COM(2014) 445 final);
  and the following two documents, to which the EESC will dedicate a separate opinion (2): |
| --- | --- |

c)

the communication on Resource efficiency opportunities in the building sector (COM(2014) 445 final);

and the following two documents, to which the EESC will dedicate a separate opinion (2):

| d) | The Green Action Plan for SMEs (COM(2014) 440 final); |
| --- | --- |

d)

The Green Action Plan for SMEs (COM(2014) 440 final);

| e) | The Green Employment Initiative Communication (COM(2014) 446 final). |
| --- | --- |

e)

The Green Employment Initiative Communication (COM(2014) 446 final).

The Commission has also announced the further publication of a communication on sustainable food.

3.   General comments

| 3.1. | How can we produce goods and services while at the same time limiting the amount of raw materials and non-renewable energy sources that we consume and waste? One thing is clear: throughout the history of 20th century industry, the costs of extracting and exploiting natural mineral and energy resources have steadily fallen, largely due to gradual gains in productivity. |
| --- | --- |

3.1.

How can we produce goods and services while at the same time limiting the amount of raw materials and non-renewable energy sources that we consume and waste? One thing is clear: throughout the history of 20th century industry, the costs of extracting and exploiting natural mineral and energy resources have steadily fallen, largely due to gradual gains in productivity.

| 3.2. | Now, at the dawn of the 21st century, this linear model is not only faltering but risks becoming untenable over the long term owing to the planet’s dwindling natural resources. Danger levels have already been reached: it is no longer time to think about how we can change the economic model; we need to introduce a new one as a matter of urgency. |
| --- | --- |

3.2.

Now, at the dawn of the 21st century, this linear model is not only faltering but risks becoming untenable over the long term owing to the planet’s dwindling natural resources. Danger levels have already been reached: it is no longer time to think about how we can change the economic model; we need to introduce a new one as a matter of urgency.

| 3.3. | Extraction, production, consumption, disposal and recycling: a profound change is needed to ensure the self-sufficiency of communities and their social and sustainable development in the long term. |
| --- | --- |

3.3.

Extraction, production, consumption, disposal and recycling: a profound change is needed to ensure the self-sufficiency of communities and their social and sustainable development in the long term.

| 3.4. | Almost all human societies are currently driven by a predatory development model that is, to coin a phrase, somewhat out of control, with scant regard for those communities that are most vulnerable to the exploitation or over-exploitation of their resources, the unexpected impact of climate change and pollution, and the risk to future generations. |
| --- | --- |

3.4.

Almost all human societies are currently driven by a predatory development model that is, to coin a phrase, somewhat out of control, with scant regard for those communities that are most vulnerable to the exploitation or over-exploitation of their resources, the unexpected impact of climate change and pollution, and the risk to future generations.

| 3.5. | We should all question this model, which has been shaken by the global financial, economic, social, political, energy, ecological and environmental crisis. |
| --- | --- |

3.5.

We should all question this model, which has been shaken by the global financial, economic, social, political, energy, ecological and environmental crisis.

| 3.6. | With a view to reversing methods of production and consumption, the European Commission, through its circular economy approach, is opening up prospects which will involve the whole of society, and yet their implementation remains in the balance. |
| --- | --- |

3.6.

With a view to reversing methods of production and consumption, the European Commission, through its circular economy approach, is opening up prospects which will involve the whole of society, and yet their implementation remains in the balance.

4.   Specific comments relating to COM(2014) 398 final

| 4.1. | The communication ‘Towards a circular economy’ explains the general concept of the circular economy and describes the benefits in terms of economic development and employment. |
| --- | --- |

4.1.

The communication ‘Towards a circular economy’ explains the general concept of the circular economy and describes the benefits in terms of economic development and employment.

| 4.2. | Its general objectives are clear, and it is imperative that we make progress towards achieving those objectives. Our production and consumption model needs to be overhauled; we must use fewer resources and materials and so use them more rationally. |
| --- | --- |

4.2.

Its general objectives are clear, and it is imperative that we make progress towards achieving those objectives. Our production and consumption model needs to be overhauled; we must use fewer resources and materials and so use them more rationally.

| 4.3. | The key point is knowing how to achieve these objectives and how they fit into an overarching and comprehensive policy framework. Market failures and imperfections can and must be tackled in a variety of ways: market incentives (price and tax signals), regulation (setting binding targets and allowing players to decide how to achieve them) and standards imposed on players. |
| --- | --- |

4.3.

The key point is knowing how to achieve these objectives and how they fit into an overarching and comprehensive policy framework. Market failures and imperfections can and must be tackled in a variety of ways: market incentives (price and tax signals), regulation (setting binding targets and allowing players to decide how to achieve them) and standards imposed on players.

| 4.4. | An overarching policy framework also supposes that all the necessary conditions (economic, social, employment, health and safety) will be met. |
| --- | --- |

4.4.

An overarching policy framework also supposes that all the necessary conditions (economic, social, employment, health and safety) will be met.

| 4.5. | The Commission communication states that it aims to define ‘an enabling policy framework in order to promote design and innovation for a circular economy, unlock investment and harness action by business and consumers’. |
| --- | --- |

4.5.

The Commission communication states that it aims to define ‘an enabling policy framework in order to promote design and innovation for a circular economy, unlock investment and harness action by business and consumers’.

4.6.   Creating a framework to support the circular economy

| 4.6.1. | The Committee endorses the principle of establishing a framework to support the circular economy in cooperation with all stakeholders. This framework must provide scope for the development of a new economic model which will gradually replace the predominant model of linear economic growth. Moving towards a circular economy requires an overarching approach covering the entire lifecycle of products, from raw material supply to eco-design, retailing, business models and consumption patterns, reuse, re-manufacturing, and waste recovery and disposal. The Commission communication follows such an overarching approach in principle. In practice, however, its approach is not balanced, since concrete policy proposals are mainly restricted to the waste sector. The Commission merely announces the development of an enabling framework for the circular economy in the future (3), without giving any clear indication of timeline and process. We expect the Commission to submit a clear and transparent proposal for this work without delay. |
| --- | --- |

4.6.1.

The Committee endorses the principle of establishing a framework to support the circular economy in cooperation with all stakeholders. This framework must provide scope for the development of a new economic model which will gradually replace the predominant model of linear economic growth. Moving towards a circular economy requires an overarching approach covering the entire lifecycle of products, from raw material supply to eco-design, retailing, business models and consumption patterns, reuse, re-manufacturing, and waste recovery and disposal. The Commission communication follows such an overarching approach in principle. In practice, however, its approach is not balanced, since concrete policy proposals are mainly restricted to the waste sector. The Commission merely announces the development of an enabling framework for the circular economy in the future (3), without giving any clear indication of timeline and process. We expect the Commission to submit a clear and transparent proposal for this work without delay.

| 4.6.2. | The concept of a circular economy is based on a whole-life-cycle analysis of the use of resources. It promotes recycling, substitution of certain resources, durability and reuse of products, reduction of waste across the chain, including at source, eco-design of goods and services, new business models, etc. It introduces new forms of governance including all civil society players. The Committee calls on the Commission to produce a detailed policy strategy on the transition to a circular economy. It also expects the Commission to be less vague in its policy proposals on the promotion of eco-design, innovation and stimulating investment, and to present clear proposals, including information about the budget that will be allocated to supporting circular economy activities and about the use of innovative financial instruments, such as green bonds. The Commission should therefore continue its work and:






  a) | clarify the relationship between this new framework and other European policies, particularly reindustrialisation policy (raw materials, innovation, health and safety for workers, transport, etc.) and energy and climate policy; |
| --- | --- | --- |

4.6.2.

The concept of a circular economy is based on a whole-life-cycle analysis of the use of resources. It promotes recycling, substitution of certain resources, durability and reuse of products, reduction of waste across the chain, including at source, eco-design of goods and services, new business models, etc. It introduces new forms of governance including all civil society players. The Committee calls on the Commission to produce a detailed policy strategy on the transition to a circular economy. It also expects the Commission to be less vague in its policy proposals on the promotion of eco-design, innovation and stimulating investment, and to present clear proposals, including information about the budget that will be allocated to supporting circular economy activities and about the use of innovative financial instruments, such as green bonds. The Commission should therefore continue its work and:

a)

clarify the relationship between this new framework and other European policies, particularly reindustrialisation policy (raw materials, innovation, health and safety for workers, transport, etc.) and energy and climate policy;

| b) | include resource efficiency targets in the revised Europe 2020 strategy, taking account of suggestions made by the European platform on resource efficiency; |
| --- | --- |

b)

include resource efficiency targets in the revised Europe 2020 strategy, taking account of suggestions made by the European platform on resource efficiency;

| c) | identify more specific measures to bring about a real change in production and consumption patterns, building in the necessary reduction at source in the use of certain resources (given their rarity or toxicity), the shift towards a less materialistic, more cooperative society, and improvements in the well-being of workers and society at large. |
| --- | --- |

c)

identify more specific measures to bring about a real change in production and consumption patterns, building in the necessary reduction at source in the use of certain resources (given their rarity or toxicity), the shift towards a less materialistic, more cooperative society, and improvements in the well-being of workers and society at large.

| 4.6.3. | With this goal in mind, the Committee would point to its opinion of April 2012 on The promotion of sustainable production and consumption in the EU, which called for ‘the development of a renewed, joint vision of the economic model, including consultations [...] with all sectors of organised civil society’ (4). |
| --- | --- |

4.6.3.

With this goal in mind, the Committee would point to its opinion of April 2012 on The promotion of sustainable production and consumption in the EU, which called for ‘the development of a renewed, joint vision of the economic model, including consultations [...] with all sectors of organised civil society’ (4).

4.7.   Defining the scope

| 4.7.1. | The approach to developing the circular economy taken by the European Commission does not indicate how this is to be done at local and regional level. The Committee considers that any circular economy strategy should be drawn up with a territorial hierarchy dimension, from local authorities to the global level, including regional, national and European, with short circle and supply chains given priority everywhere and whenever possible. |
| --- | --- |

4.7.1.

The approach to developing the circular economy taken by the European Commission does not indicate how this is to be done at local and regional level. The Committee considers that any circular economy strategy should be drawn up with a territorial hierarchy dimension, from local authorities to the global level, including regional, national and European, with short circle and supply chains given priority everywhere and whenever possible.

| 4.7.2. | The potential social and economic benefits of the circular economy can first be perceived at strictly local level (sustainable neighbourhoods, green towns) and then in the (EU’s) regions, before being introduced at national and international level. |
| --- | --- |

4.7.2.

The potential social and economic benefits of the circular economy can first be perceived at strictly local level (sustainable neighbourhoods, green towns) and then in the (EU’s) regions, before being introduced at national and international level.

| 4.7.3. | The fight against international social and environmental dumping and thus potential small-scale relocation of a large proportion of the economy both form part of this local-level approach. Optimising waste management comprises a number of initiatives by local and regional leaders: organising selective collection, setting up waste collection and recycling centres and repair-resale-reuse networks, etc. For proper management of biowaste, short supply chains should clearly be given priority, including as far as job creation is concerned. |
| --- | --- |

4.7.3.

The fight against international social and environmental dumping and thus potential small-scale relocation of a large proportion of the economy both form part of this local-level approach. Optimising waste management comprises a number of initiatives by local and regional leaders: organising selective collection, setting up waste collection and recycling centres and repair-resale-reuse networks, etc. For proper management of biowaste, short supply chains should clearly be given priority, including as far as job creation is concerned.

| 4.7.4. | Following this approach, the EU should encourage the Member States to gradually develop their waste plans into territorial circular economy plans. |
| --- | --- |

4.7.4.

Following this approach, the EU should encourage the Member States to gradually develop their waste plans into territorial circular economy plans.

4.8.   Controlling the socioeconomic impact

| 4.8.1. | While the Commission’s package does indeed link up the environmental (waste management) and the economic (green jobs; SME action plan), it does not systematically pin down:






  — | the employment potential arising from the various stages of implementation of the waste management hierarchy, especially prevention and preparation for reuse; |
| --- | --- | --- |

4.8.1.

While the Commission’s package does indeed link up the environmental (waste management) and the economic (green jobs; SME action plan), it does not systematically pin down:

—

the employment potential arising from the various stages of implementation of the waste management hierarchy, especially prevention and preparation for reuse;

| — | the employment potential inherent in the various innovative developments that the circular economy can bring about (eco-design, industrial symbiosis, a functional or sharing economy, etc.); |
| --- | --- |

—

the employment potential inherent in the various innovative developments that the circular economy can bring about (eco-design, industrial symbiosis, a functional or sharing economy, etc.);

| — | the health and safety implications of economic activities potentially arising from the development of the circular economy. |
| --- | --- |

—

the health and safety implications of economic activities potentially arising from the development of the circular economy.

4.9.   Completing the sectoral approaches

| 4.9.1. | The new circular economy strategy should do more to shape the sectoral approach to waste, and the Committee would also like to see sectoral developments outside sustainable construction. |
| --- | --- |

4.9.1.

The new circular economy strategy should do more to shape the sectoral approach to waste, and the Committee would also like to see sectoral developments outside sustainable construction.

| 4.9.2. | The Committee considers that the sectoral approach should be broadened to include proposals not only concerning sustainable food and sustainable construction, but also other sectors such as manufacturing. |
| --- | --- |

4.9.2.

The Committee considers that the sectoral approach should be broadened to include proposals not only concerning sustainable food and sustainable construction, but also other sectors such as manufacturing.

5.   Specific recommendations relating to document COM(2014) 397 final

5.1.   A legislative proposal which needs to be expanded

| 5.1.1. | The Committee supports the broad thrust of the amendments aimed at:






  — | increasing recycling rates for municipal waste and packaging and reducing landfilling of certain wastes; |
| --- | --- | --- |

5.1.1.

The Committee supports the broad thrust of the amendments aimed at:

—

increasing recycling rates for municipal waste and packaging and reducing landfilling of certain wastes;

| — | introducing an early warning system to monitor compliance with the recycling targets; |
| --- | --- |

—

introducing an early warning system to monitor compliance with the recycling targets;

| — | setting minimum operating conditions for extended producer responsibility, standardising definitions; |
| --- | --- |

—

setting minimum operating conditions for extended producer responsibility, standardising definitions;

| — | streamlining reporting obligations. |
| --- | --- |

—

streamlining reporting obligations.

| 5.1.2. | However, certain complementary options (such as setting specific targets for prevention and reuse, or mandatory ‘take back’ schemes for some products) seem to have been rejected out of hand by the impact assessment. The Commission proposals fail to respect the waste hierarchy as set out in the Waste Framework Directive (5), with an order of priority of waste prevention, preparing for reuse, recycling, other recovery and disposal. |
| --- | --- |

5.1.2.

However, certain complementary options (such as setting specific targets for prevention and reuse, or mandatory ‘take back’ schemes for some products) seem to have been rejected out of hand by the impact assessment. The Commission proposals fail to respect the waste hierarchy as set out in the Waste Framework Directive (5), with an order of priority of waste prevention, preparing for reuse, recycling, other recovery and disposal.

| 5.1.3. | Article 9(c) of the Waste Framework Directive requires the Commission to submit a report to the European Parliament and the Council accompanied, where appropriate, by proposals for measures required to set waste prevention and decoupling objectives for 2020, together with waste prevention indicators. Since waste prevention is an integral part of the circular economy, this report should have been submitted with the circular economy package. The impact assessment accompanying the current set of measures on the circular economy indicates that the idea of setting an overarching waste prevention objective was rejected, without providing detailed analysis on this point. |
| --- | --- |

5.1.3.

Article 9(c) of the Waste Framework Directive requires the Commission to submit a report to the European Parliament and the Council accompanied, where appropriate, by proposals for measures required to set waste prevention and decoupling objectives for 2020, together with waste prevention indicators. Since waste prevention is an integral part of the circular economy, this report should have been submitted with the circular economy package. The impact assessment accompanying the current set of measures on the circular economy indicates that the idea of setting an overarching waste prevention objective was rejected, without providing detailed analysis on this point.

| 5.1.4. | Similarly, eco-design of products and services does not seem to be sufficiently guaranteed. This could be done by means of:






  — | specific clauses to be included in public procurement; |
| --- | --- | --- |

5.1.4.

Similarly, eco-design of products and services does not seem to be sufficiently guaranteed. This could be done by means of:

—

specific clauses to be included in public procurement;

| — | requirements that certain products should be given preference over others; |
| --- | --- |

—

requirements that certain products should be given preference over others;

| — | obligations to incorporate a certain percentage of recycled materials in products; |
| --- | --- |

—

obligations to incorporate a certain percentage of recycled materials in products;

| — | economic incentives for reusable, if not recyclable products (such as VAT reductions); |
| --- | --- |

—

economic incentives for reusable, if not recyclable products (such as VAT reductions);

| — | etc. |
| --- | --- |

—

etc.

| 5.1.5. | The Committee considers that planned obsolescence should be tackled by means of a strategy incorporating technological, business, regulatory, educational and information aspects (6). |
| --- | --- |

5.1.5.

The Committee considers that planned obsolescence should be tackled by means of a strategy incorporating technological, business, regulatory, educational and information aspects (6).

5.2.   Targets to be completed

| 5.2.1. | Prevention targets are practically a necessity for the proper application of the waste hierarchy, as already pointed out by the European Parliament, the Committee of the Regions and a European Court audit. The Commission should develop such targets based on the national prevention programmes submitted by the Member States. |
| --- | --- |

5.2.1.

Prevention targets are practically a necessity for the proper application of the waste hierarchy, as already pointed out by the European Parliament, the Committee of the Regions and a European Court audit. The Commission should develop such targets based on the national prevention programmes submitted by the Member States.

| 5.2.2. | The target of 10 % less municipal waste proposed by the Committee of the Regions should be analysed carefully (7). Drawing on national and regional experiences of capping household waste, consideration should also be given to setting a limit at European level (around 200-300 kg per person per year). |
| --- | --- |

5.2.2.

The target of 10 % less municipal waste proposed by the Committee of the Regions should be analysed carefully (7). Drawing on national and regional experiences of capping household waste, consideration should also be given to setting a limit at European level (around 200-300 kg per person per year).

| 5.2.3. | Municipal Waste (Article 3 Waste Framework Directive) should be strictly defined as household waste and not enlarged to Commercial and Industrial Waste or Waste collected by extended producer responsibility schemes in order to ensure clear definition of roles and responsibilities; |
| --- | --- |

5.2.3.

Municipal Waste (Article 3 Waste Framework Directive) should be strictly defined as household waste and not enlarged to Commercial and Industrial Waste or Waste collected by extended producer responsibility schemes in order to ensure clear definition of roles and responsibilities;

| 5.2.4. | Commercial and Industrial Waste should be defined as waste not considered as household waste in view of defining a separate recycling target; |
| --- | --- |

5.2.4.

Commercial and Industrial Waste should be defined as waste not considered as household waste in view of defining a separate recycling target;

| 5.2.5. | Backfilling should not be defined as always being a ‘recovery’ operation, and this technique should be banned for hazardous waste and limited to Construction and Demolition Waste (Article 3 Waste Framework Directive); |
| --- | --- |

5.2.5.

Backfilling should not be defined as always being a ‘recovery’ operation, and this technique should be banned for hazardous waste and limited to Construction and Demolition Waste (Article 3 Waste Framework Directive);

| 5.2.6. | The Commission’s proposal for a prevention target limited to food waste should include, or be linked with, a target for reducing packaging. |
| --- | --- |

5.2.6.

The Commission’s proposal for a prevention target limited to food waste should include, or be linked with, a target for reducing packaging.

| 5.2.7. | The Committee recommends that the policy package be complemented with measures specifically supporting the preparation of used products for reuse. Placing preparation for reuse at the same level as recycling, as the Commission does with its recycling targets, does not comply with the waste hierarchy. The refurbishment of products and product parts provides not only significant scope for more efficient use of products and materials, but also important opportunities for job creation at local and regional level. Furthermore, preparation for reuse (e.g. the preparation for reuse of packaging and electrical/electronic equipment, or even other goods such as toys and napkin liners) should not be treated in the same way as recycling: a separate target (for instance around 5 %) should apply. |
| --- | --- |

5.2.7.

The Committee recommends that the policy package be complemented with measures specifically supporting the preparation of used products for reuse. Placing preparation for reuse at the same level as recycling, as the Commission does with its recycling targets, does not comply with the waste hierarchy. The refurbishment of products and product parts provides not only significant scope for more efficient use of products and materials, but also important opportunities for job creation at local and regional level. Furthermore, preparation for reuse (e.g. the preparation for reuse of packaging and electrical/electronic equipment, or even other goods such as toys and napkin liners) should not be treated in the same way as recycling: a separate target (for instance around 5 %) should apply.

| 5.2.8. | The legislative proposal plans to increase recycling/reuse of municipal waste to 70 % in 2030; increase packaging waste recycling/reuse to 80 % in 2030; phase out landfilling by 2025 for recyclable waste; reduce food waste generation by 30 % by 2025. These targets are crucial and must be upheld. |
| --- | --- |

5.2.8.

The legislative proposal plans to increase recycling/reuse of municipal waste to 70 % in 2030; increase packaging waste recycling/reuse to 80 % in 2030; phase out landfilling by 2025 for recyclable waste; reduce food waste generation by 30 % by 2025. These targets are crucial and must be upheld.

| 5.2.9. | Targets must be an integral part of the business models implemented by economic players (particularly in the packaging and trade sectors), who should find the most effective method of reaching them. However, it is imperative to ensure that this necessary transition is carried out in compliance with other, equally important principles and criteria. The key concern is for the working conditions and health and safety standards of the workers involved. Owing to the difficult working and unstable employment conditions and the health and safety risks which prevail, the packaging and waste management sectors are particularly vulnerable. Steps must be taken to guarantee that these ambitious targets are met without any deterioration in working conditions; on the contrary, working conditions should improve (8). |
| --- | --- |

5.2.9.

Targets must be an integral part of the business models implemented by economic players (particularly in the packaging and trade sectors), who should find the most effective method of reaching them. However, it is imperative to ensure that this necessary transition is carried out in compliance with other, equally important principles and criteria. The key concern is for the working conditions and health and safety standards of the workers involved. Owing to the difficult working and unstable employment conditions and the health and safety risks which prevail, the packaging and waste management sectors are particularly vulnerable. Steps must be taken to guarantee that these ambitious targets are met without any deterioration in working conditions; on the contrary, working conditions should improve (8).

| 5.2.10. | A financing framework for local authorities should be developed: the economic conditions should enable local authorities to meet the set targets by having access to the necessary financing. If public authorities are constrained by rigid rules on debt, any additional investment needs, for instance, in waste management, will inevitably reduce spending on other key activities. The policy framework must guarantee a suitable financial framework, if necessary with the help of specific budgets like the EU Structural Funds and the money available for Europe 2020. |
| --- | --- |

5.2.10.

A financing framework for local authorities should be developed: the economic conditions should enable local authorities to meet the set targets by having access to the necessary financing. If public authorities are constrained by rigid rules on debt, any additional investment needs, for instance, in waste management, will inevitably reduce spending on other key activities. The policy framework must guarantee a suitable financial framework, if necessary with the help of specific budgets like the EU Structural Funds and the money available for Europe 2020.

| 5.2.11. | As regards reducing food waste, food safety must not be sacrificed and compliance with consumer protection standards must be ensured. In this respect, consumer protection organisations and food safety bodies must be involved and consulted. |
| --- | --- |

5.2.11.

As regards reducing food waste, food safety must not be sacrificed and compliance with consumer protection standards must be ensured. In this respect, consumer protection organisations and food safety bodies must be involved and consulted.

| 5.2.12. | Food waste consists of organic raw materials, which should, on as large a scale as possible, be either processed or be returned to agricultural production in an unchanged state. Certain kinds of food waste are by nature particularly suited for reuse, either as animal feed or as soil fertiliser. As present this is prevented by a number of restrictive rules. The EESC therefore recommends that the Commission consider whether these restrictions are appropriate. |
| --- | --- |

5.2.12.

Food waste consists of organic raw materials, which should, on as large a scale as possible, be either processed or be returned to agricultural production in an unchanged state. Certain kinds of food waste are by nature particularly suited for reuse, either as animal feed or as soil fertiliser. As present this is prevented by a number of restrictive rules. The EESC therefore recommends that the Commission consider whether these restrictions are appropriate.

6.   Specific comments relating to COM(2014) 445 final

| 6.1. | The communication on resource efficiency opportunities in the building sector is meant to promote a reduction in the sector’s overall environmental impact throughout the life cycle. It proposes a set of indicators for assessing buildings’ environmental performance to enable designers, manufacturers, contractors, authorities and users to make informed choices. A transparent system of indicators is vital, particularly standardised statistics and a set of comparable, user-friendly indicators. |
| --- | --- |

6.1.

The communication on resource efficiency opportunities in the building sector is meant to promote a reduction in the sector’s overall environmental impact throughout the life cycle. It proposes a set of indicators for assessing buildings’ environmental performance to enable designers, manufacturers, contractors, authorities and users to make informed choices. A transparent system of indicators is vital, particularly standardised statistics and a set of comparable, user-friendly indicators.

| 6.2. | The circular economy package should include suitable demand-based pull measures, which would provide scope for the establishment of a self-sufficient market in secondary raw materials (for example, products containing a minimum amount of recycled materials). We must create a situation in which waste can be traded as a raw material with good market liquidity, at an appropriate economic, human and environmental price. This would be the best incentive for the collection of waste. |
| --- | --- |

6.2.

The circular economy package should include suitable demand-based pull measures, which would provide scope for the establishment of a self-sufficient market in secondary raw materials (for example, products containing a minimum amount of recycled materials). We must create a situation in which waste can be traded as a raw material with good market liquidity, at an appropriate economic, human and environmental price. This would be the best incentive for the collection of waste.

6.3.   Challenges for product classification — prevention of serial claim risk

| 6.3.1. | Preventing serial claims is a major challenge for insurance companies: a defect in an item of which tens of thousands of copies are made can give rise, directly and indirectly, to repair costs amounting to tens or even hundreds of millions of euros. For example, some of the serial claims of the last 20 years have been the result of chemical incompatibility between the different components of a given building product. |
| --- | --- |

6.3.1.

Preventing serial claims is a major challenge for insurance companies: a defect in an item of which tens of thousands of copies are made can give rise, directly and indirectly, to repair costs amounting to tens or even hundreds of millions of euros. For example, some of the serial claims of the last 20 years have been the result of chemical incompatibility between the different components of a given building product.

| 6.3.2. | This type of serial claim is generally due to a reaction which develops over time following interaction with external parameters (such as humidity or temperature). Some of these claims can also be linked to imported products, certain characteristics of which had not been initially indicated properly. |
| --- | --- |

6.3.2.

This type of serial claim is generally due to a reaction which develops over time following interaction with external parameters (such as humidity or temperature). Some of these claims can also be linked to imported products, certain characteristics of which had not been initially indicated properly.

| 6.3.3. | Using recycled materials when manufacturing building materials is not inherently an obstacle. However, full knowledge of the physical and chemical characteristics of the material to be recycled is vital in order to prevent any danger of incompatibility when it is reused. The difficulty lies in properly defining and classifying the material to be recycled and ensuring that there are no variations within the batch of products to be reused. |
| --- | --- |

6.3.3.

Using recycled materials when manufacturing building materials is not inherently an obstacle. However, full knowledge of the physical and chemical characteristics of the material to be recycled is vital in order to prevent any danger of incompatibility when it is reused. The difficulty lies in properly defining and classifying the material to be recycled and ensuring that there are no variations within the batch of products to be reused.

| 6.3.4. | The revision of the waste package offers a unique opportunity to embrace the principle of multiple recycling in order to stimulate resource efficiency. Multiple recycling occurs when materials do not degrade structurally in the recycling process, i.e. for permanent materials, but can be reintroduced over and over again to reinforce the circular economy, ensuring that functional materials are not wasted or lost in incineration or landfill. As such permanent materials are an asset available to society forever. |
| --- | --- |

6.3.4.

The revision of the waste package offers a unique opportunity to embrace the principle of multiple recycling in order to stimulate resource efficiency. Multiple recycling occurs when materials do not degrade structurally in the recycling process, i.e. for permanent materials, but can be reintroduced over and over again to reinforce the circular economy, ensuring that functional materials are not wasted or lost in incineration or landfill. As such permanent materials are an asset available to society forever.

| 6.3.5. | Implementing a traceability system for building materials during their first life cycle would make it easier to manage reuse; a set of rules should be developed classifying materials according to their future usage with a focus on high biodegradability and introducing quality standards. |
| --- | --- |

6.3.5.

Implementing a traceability system for building materials during their first life cycle would make it easier to manage reuse; a set of rules should be developed classifying materials according to their future usage with a focus on high biodegradability and introducing quality standards.

| 6.4. | The Commission should consider implementing binding provisions and penalties to avoid potential dumping, whereby materials that have become undesirable are exported outside the EU. |
| --- | --- |

6.4.

The Commission should consider implementing binding provisions and penalties to avoid potential dumping, whereby materials that have become undesirable are exported outside the EU.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

---

(1)  http://ec.europa.eu/environment/circular-economy/

1

(2)  See page 99 of this Official Journal.

2

(3)  COM(2014) 398 final, p. 3.

3

(4)  OJ C 191, 29.6.2012, p. 6.

4

(5)  OJ L 312,, 22.11.2008, p. 3.

5

(6)  OJ C 67, 6.3.2014, p. 23.

6

(7)  http://cor.europa.eu/en/news/regional/Pages/cities-and-regions-eu-waste.aspx

7

(8)  For detailed observations on waste management, see issue 2014/9 of HesaMag published by the European Trade Union Institute (ETUI): http://www.etui.org/en/Topics/Health-Safety/HesaMag

8

---

| 14.7.2015 | EN | Official Journal of the European Union | C 230/99 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/99

---

Opinion of the European Economic and Social Committee on the ‘Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Green Action Plan for SMEs — Enabling SMEs to turn environmental challenges into business opportunities’

(COM(2014) 440 final)

and the ‘Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions — Green Employment Initiative: Tapping into the job creation potential of the green economy’

(COM(2014) 446 final)

(2015/C 230/15)

| Rapporteur: | Mr PEZZINI |
| --- | --- |

Rapporteur:

Mr PEZZINI

On 16 July 2014, the European Commission decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Green Action Plan for SMEs — Enabling SMEs to turn environmental challenges into business opportunities

COM(2014) 440 final

and the

Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions — Green Employment Initiative: Tapping into the job creation potential of the green economy

COM(2014) 446 final.

The Section for Agriculture, Rural Development and the Environment, which was responsible for preparing the Committee’s work on the subject, adopted its opinion on 12 November 2014.

At its 503rd plenary session, held on 10 and 11 December 2014 (meeting of 10 December), the European Economic and Social Committee adopted the following opinion by 135 votes to 1 with 1 abstention.

1.   Conclusions and recommendations

| 1.1. | The European Economic and Social Committee (EESC) believes that the prospect of a European circular economy should bring a major boost to the systemic competitiveness of the EU, providing it is based on a shared European strategic vision with active participation from the world of work, governments, employers and employees, consumers and legislative and regulatory authorities at various levels. |
| --- | --- |

1.1.

The European Economic and Social Committee (EESC) believes that the prospect of a European circular economy should bring a major boost to the systemic competitiveness of the EU, providing it is based on a shared European strategic vision with active participation from the world of work, governments, employers and employees, consumers and legislative and regulatory authorities at various levels.

| 1.2. | The EESC is convinced that the transition to a circular economy could improve the outlook for achieving the Europe 2020 strategy objectives: becoming a driver for growth, a generator of new green jobs and skills, and building capacity to manage natural resources sustainably within a sustainable and competitive economy. |
| --- | --- |

1.2.

The EESC is convinced that the transition to a circular economy could improve the outlook for achieving the Europe 2020 strategy objectives: becoming a driver for growth, a generator of new green jobs and skills, and building capacity to manage natural resources sustainably within a sustainable and competitive economy.

| 1.3. | The Committee calls for the launch of a major participatory foresight initiative at European level, with a view to moulding a common vision among all public and private players, in order to pave the way for a consensus-based transition to a circular economy with coherent and effective policies and instruments at EU, national and regional levels, and in order to give concrete impetus to the green innovation agenda. Networks of civil society actors advocating the transition to a circular economy model should be supported. The Committee could actively promote such networks and also explore the setting up and management of a European platform for the circular economy. |
| --- | --- |

1.3.

The Committee calls for the launch of a major participatory foresight initiative at European level, with a view to moulding a common vision among all public and private players, in order to pave the way for a consensus-based transition to a circular economy with coherent and effective policies and instruments at EU, national and regional levels, and in order to give concrete impetus to the green innovation agenda. Networks of civil society actors advocating the transition to a circular economy model should be supported. The Committee could actively promote such networks and also explore the setting up and management of a European platform for the circular economy.

| 1.4. | At the same time, the EESC considers it essential to set up a structured dialogue with individual sectors within which to launch pilot schemes to provide guidance and demonstrate the potential of more sustainable practices, with the full participation of consumer organisations, micro- and small businesses and the social economy. |
| --- | --- |

1.4.

At the same time, the EESC considers it essential to set up a structured dialogue with individual sectors within which to launch pilot schemes to provide guidance and demonstrate the potential of more sustainable practices, with the full participation of consumer organisations, micro- and small businesses and the social economy.

| 1.5. | The Committee believes cost-benefit analysis should be used to assess who would stand to lose out from the systemic conversion of manufacturing, commercial, distribution and consumption systems, doing away with planned obsolescence and shifting to new forms of use and consumption, involving products and components maintaining their added value and continuing to be reusable for as long as possible. |
| --- | --- |

1.5.

The Committee believes cost-benefit analysis should be used to assess who would stand to lose out from the systemic conversion of manufacturing, commercial, distribution and consumption systems, doing away with planned obsolescence and shifting to new forms of use and consumption, involving products and components maintaining their added value and continuing to be reusable for as long as possible.

| 1.6. | In the Committee’s view, the transition to the new circular economy model, including remanufacturing and reuse, must go hand in hand with the generalised dissemination of socially responsible territory methodologies that draw on the development of a shared innovative and participatory culture. |
| --- | --- |

1.6.

In the Committee’s view, the transition to the new circular economy model, including remanufacturing and reuse, must go hand in hand with the generalised dissemination of socially responsible territory methodologies that draw on the development of a shared innovative and participatory culture.

| 1.7. | The Committee calls on the EU to use predetermined criteria to pick out a significant number of well-defined areas for facilitated innovation — smart cities, free port areas, local clusters, green deal — in which to trial the transition to a circular economy. This could also be done by tapping into the positive experience garnered from European instruments such as the Covenant of Mayors. |
| --- | --- |

1.7.

The Committee calls on the EU to use predetermined criteria to pick out a significant number of well-defined areas for facilitated innovation — smart cities, free port areas, local clusters, green deal — in which to trial the transition to a circular economy. This could also be done by tapping into the positive experience garnered from European instruments such as the Covenant of Mayors.

| 1.8. | The EESC therefore welcomes the proposals of the Green Action Plan for SMEs and the Green Employment Initiative but regrets the absence of concrete measures and practical guidelines to help SMEs to become more sustainable and ecological. It also calls for the ‘Think Small First’ principle to be placed at the centre of the action plan, in line with the Small Business Act. |
| --- | --- |

1.8.

The EESC therefore welcomes the proposals of the Green Action Plan for SMEs and the Green Employment Initiative but regrets the absence of concrete measures and practical guidelines to help SMEs to become more sustainable and ecological. It also calls for the ‘Think Small First’ principle to be placed at the centre of the action plan, in line with the Small Business Act.

| 1.9. | In particular the EESC considers it crucial to secure an active role for the social partners and civil society in the design, application and monitoring of national sustainable development policies and in the transition to an environmentally sustainable circular economy with strong potential for creating businesses with high ‘green’ employment. |
| --- | --- |

1.9.

In particular the EESC considers it crucial to secure an active role for the social partners and civil society in the design, application and monitoring of national sustainable development policies and in the transition to an environmentally sustainable circular economy with strong potential for creating businesses with high ‘green’ employment.

| 1.10. | In the Committee’s view, the measures proposed for bridging the current gap in green skills should be backed up by the efficient and targeted use of the Structural Funds, in particular the European Social Fund (ESF), the European Regional Development Fund (ERDF), the European Agricultural Fund for Rural Development (EAFRD), the European Maritime and Fisheries Fund (EMFF) and innovation instruments — such as Horizon 2020 (H2020), COSME and LIFE, not to mention the European Investment Bank (EIB) one-stop facility for green microfinance. |
| --- | --- |

1.10.

In the Committee’s view, the measures proposed for bridging the current gap in green skills should be backed up by the efficient and targeted use of the Structural Funds, in particular the European Social Fund (ESF), the European Regional Development Fund (ERDF), the European Agricultural Fund for Rural Development (EAFRD), the European Maritime and Fisheries Fund (EMFF) and innovation instruments — such as Horizon 2020 (H2020), COSME and LIFE, not to mention the European Investment Bank (EIB) one-stop facility for green microfinance.

| 1.10.1. | Other worthwhile ventures include:






  — | properly quantifying sustainable and non-relocatable employment potential; |
| --- | --- | --- |

1.10.1.

Other worthwhile ventures include:

—

properly quantifying sustainable and non-relocatable employment potential;

| — | safeguarding the fairness and sustainability of the process, using structured social dialogue at the various levels within a joint strategic vision so as to avoid poverty and energy poverty; |
| --- | --- |

—

safeguarding the fairness and sustainability of the process, using structured social dialogue at the various levels within a joint strategic vision so as to avoid poverty and energy poverty;

| — | promoting joint action by the social partners to develop awareness-raising and guidance activities; |
| --- | --- |

—

promoting joint action by the social partners to develop awareness-raising and guidance activities;

| — | providing for close interaction between the world of work and that of education and training, making the most of input from social interest groups. |
| --- | --- |

—

providing for close interaction between the world of work and that of education and training, making the most of input from social interest groups.

| 1.11. | The EESC is convinced that a consensus-based, participatory transition to a European circular economy could open up a great number of opportunities for micro-, small and medium-sized companies and for the social economy, becoming a major driver for growth on both the internal and the international markets. In this respect, priority should be given to:






  — | fleshing out and promoting more widespread application of the voluntary green audit mechanism for companies; |
| --- | --- | --- |

1.11.

The EESC is convinced that a consensus-based, participatory transition to a European circular economy could open up a great number of opportunities for micro-, small and medium-sized companies and for the social economy, becoming a major driver for growth on both the internal and the international markets. In this respect, priority should be given to:

—

fleshing out and promoting more widespread application of the voluntary green audit mechanism for companies;

| — | boosting access to credit, especially with guarantee systems; |
| --- | --- |

—

boosting access to credit, especially with guarantee systems;

| — | financing eco-innovation for micro- and small enterprises, particularly in demonstrator regions show-casing systemic eco-innovations; |
| --- | --- |

—

financing eco-innovation for micro- and small enterprises, particularly in demonstrator regions show-casing systemic eco-innovations;

| — | building on in-company entrepreneurial training and tutoring measures; |
| --- | --- |

—

building on in-company entrepreneurial training and tutoring measures;

| — | supporting a circular EU market for materials, parts and intermediate products, not least by launching a ‘circular eBay’ based on European and international technical standards, and also in order to stabilise those primary and secondary resources in Europe which could constitute valuable aspects of security of supply and trade balances. |
| --- | --- |

—

supporting a circular EU market for materials, parts and intermediate products, not least by launching a ‘circular eBay’ based on European and international technical standards, and also in order to stabilise those primary and secondary resources in Europe which could constitute valuable aspects of security of supply and trade balances.

| 1.12. | The Committee is convinced that the shift towards a circular economy warrants strong support, especially for the European continent. This would therefore require:






  — | building a joined-up policy approach into the mid-term review of the Europe 2020 strategy for smart and inclusive growth so that its economic and job-related benefits can be reaped; |
| --- | --- | --- |

1.12.

The Committee is convinced that the shift towards a circular economy warrants strong support, especially for the European continent. This would therefore require:

—

building a joined-up policy approach into the mid-term review of the Europe 2020 strategy for smart and inclusive growth so that its economic and job-related benefits can be reaped;

| — | focusing attention on new ideas and/or extremely innovative sectors with a high degree of practical technological implementation, including the exploitation of existing technologies and the integration of sustainable social innovation; |
| --- | --- |

—

focusing attention on new ideas and/or extremely innovative sectors with a high degree of practical technological implementation, including the exploitation of existing technologies and the integration of sustainable social innovation;

| — | shifting from a prohibitory to a proactive political and legislative approach at the EU, national and regional levels, not least through the much needed publication of a White Paper on the circular economy, employment and growth, encompassing the wide range of instruments and policies concerned. |
| --- | --- |

—

shifting from a prohibitory to a proactive political and legislative approach at the EU, national and regional levels, not least through the much needed publication of a White Paper on the circular economy, employment and growth, encompassing the wide range of instruments and policies concerned.

2.   Introduction

| 2.1. | The concept of a circular economy, as opposed to a linear ‘take-make-use-dispose’ economy, was born of the need to foster sustainable growth, with a view to ensuring that products retain their added value for as long as possible and to maximising the chances of reusing their components productively, thus reducing waste generation and waste disposal and environmental pressures ever further. |
| --- | --- |

2.1.

The concept of a circular economy, as opposed to a linear ‘take-make-use-dispose’ economy, was born of the need to foster sustainable growth, with a view to ensuring that products retain their added value for as long as possible and to maximising the chances of reusing their components productively, thus reducing waste generation and waste disposal and environmental pressures ever further.

| 2.2. | According to McKinsey, between 60 and 80 % of resources are wasted at the end of the linear take-make-use-dispose process. In a world where three billion consumers are set to join the middle classes, this is no longer sustainable. |
| --- | --- |

2.2.

According to McKinsey, between 60 and 80 % of resources are wasted at the end of the linear take-make-use-dispose process. In a world where three billion consumers are set to join the middle classes, this is no longer sustainable.

| 2.3. | The transition to a circular economy requires producers, workers, consumers and citizens to make significant changes to their attitudes towards the use of resources and raw materials, product design, market and business models, and the search for new waste and resource processing methods. |
| --- | --- |

2.3.

The transition to a circular economy requires producers, workers, consumers and citizens to make significant changes to their attitudes towards the use of resources and raw materials, product design, market and business models, and the search for new waste and resource processing methods.

| 2.4. | There are the technologies required for tracking the lifecycle of materials throughout the value chain. Then there is also the growing scarcity of resources and high commodity prices. For consumers, a timely one-off service may prove more convenient than simply having a product in their possession. |
| --- | --- |

2.4.

There are the technologies required for tracking the lifecycle of materials throughout the value chain. Then there is also the growing scarcity of resources and high commodity prices. For consumers, a timely one-off service may prove more convenient than simply having a product in their possession.

| 2.5. | A green growth model of this type requires not only a wholesale culture shift, with a strong boost to innovation and research, but also significant investment in technology, education, organisation, training for new occupational profiles, new funding methods and appropriate policies. |
| --- | --- |

2.5.

A green growth model of this type requires not only a wholesale culture shift, with a strong boost to innovation and research, but also significant investment in technology, education, organisation, training for new occupational profiles, new funding methods and appropriate policies.

| 2.6. | An integrated policy approach is essential in order to exploit job creation potential based on appropriate access to new occupations and to address the challenges inherent in the transition to a non-linear economy, partly by enhancing communication in order to address the set of major challenges involved through new training, labour and organisational models. |
| --- | --- |

2.6.

An integrated policy approach is essential in order to exploit job creation potential based on appropriate access to new occupations and to address the challenges inherent in the transition to a non-linear economy, partly by enhancing communication in order to address the set of major challenges involved through new training, labour and organisational models.

| 2.7. | The future of the EU’s industrial competitiveness hinges on boosting the capacity to produce sustainable goods with fewer raw materials and energy and water resources and to recover abandoned resources in its territory. It is necessary to design and manufacture goods that can be reused, repaired, reprocessed and recycled and to organise functional services for this purpose. |
| --- | --- |

2.7.

The future of the EU’s industrial competitiveness hinges on boosting the capacity to produce sustainable goods with fewer raw materials and energy and water resources and to recover abandoned resources in its territory. It is necessary to design and manufacture goods that can be reused, repaired, reprocessed and recycled and to organise functional services for this purpose.

| 2.8. | It should be possible to transform waste generated by processing into resources for various industries and, possibly, for use as fertilisers for farms in the area. Heat should not be wasted but harnessed and used for other purposes such as heating homes or greenhouses. |
| --- | --- |

2.8.

It should be possible to transform waste generated by processing into resources for various industries and, possibly, for use as fertilisers for farms in the area. Heat should not be wasted but harnessed and used for other purposes such as heating homes or greenhouses.

| 2.9. | The circular model: it should be possible to get more value-added and more benefit from each ton of material, each joule of energy and each hectare of land by saving, reusing and recycling materials. |
| --- | --- |

2.9.

The circular model: it should be possible to get more value-added and more benefit from each ton of material, each joule of energy and each hectare of land by saving, reusing and recycling materials.

| 2.10. | In order to benefit from the transition to a circular economy, the following actions will be required. |
| --- | --- |

2.10.

In order to benefit from the transition to a circular economy, the following actions will be required.

| 2.10.1. | The systemic barriers impeding the deployment of circular business models by SMEs will have to be removed and efficient use made of materials from waste streams and sectoral and cross-sectoral information networks, including at EU level. |
| --- | --- |

2.10.1.

The systemic barriers impeding the deployment of circular business models by SMEs will have to be removed and efficient use made of materials from waste streams and sectoral and cross-sectoral information networks, including at EU level.

| 2.10.2. | New occupational profiles will have to be developed for staff responsible for managing these processes since education and training aimed at creating greener jobs relies on sound basic training supported by lifelong learning and should incorporate training geared to raising environmental awareness (1). |
| --- | --- |

2.10.2.

New occupational profiles will have to be developed for staff responsible for managing these processes since education and training aimed at creating greener jobs relies on sound basic training supported by lifelong learning and should incorporate training geared to raising environmental awareness (1).

| 2.10.3. | Appropriate financial instruments will have to be made available, especially for research and innovation, capacity building and market analysis, through instruments such as H2020, the Structural Funds, the EIB and public-private partnerships (PPPs). |
| --- | --- |

2.10.3.

Appropriate financial instruments will have to be made available, especially for research and innovation, capacity building and market analysis, through instruments such as H2020, the Structural Funds, the EIB and public-private partnerships (PPPs).

| 2.10.4. | The various levels of authority will have to undertake legislative simplifications and transitions from prohibitory systems to proactive approaches to make it easier to set up and develop green businesses that can generate long-term skilled jobs, in line with the Small Business Act (SBA). |
| --- | --- |

2.10.4.

The various levels of authority will have to undertake legislative simplifications and transitions from prohibitory systems to proactive approaches to make it easier to set up and develop green businesses that can generate long-term skilled jobs, in line with the Small Business Act (SBA).

| 2.10.5. | An active role will have to be developed for the social partners and civil society in the design, application and monitoring of national sustainable development policies and in the transition to an environmentally sustainable circular economy with strong potential for creating green jobs. |
| --- | --- |

2.10.5.

An active role will have to be developed for the social partners and civil society in the design, application and monitoring of national sustainable development policies and in the transition to an environmentally sustainable circular economy with strong potential for creating green jobs.

| 2.10.6. | Micro-, small and medium-sized enterprises and cooperatives will have to be provided with practical technical support and guidance on how to make their production methods more ecological; this should take the form of a toolbox for new business models and involve the exchange of best practice. |
| --- | --- |

2.10.6.

Micro-, small and medium-sized enterprises and cooperatives will have to be provided with practical technical support and guidance on how to make their production methods more ecological; this should take the form of a toolbox for new business models and involve the exchange of best practice.

| 2.10.7. | A culture of dialogue and cooperation in the workplace must be fostered in order to encourage a more rational use of resources, to cut waste, adopt clean and risk-free technologies and working methods and improve the quality of employment. |
| --- | --- |

2.10.7.

A culture of dialogue and cooperation in the workplace must be fostered in order to encourage a more rational use of resources, to cut waste, adopt clean and risk-free technologies and working methods and improve the quality of employment.

| 2.11. | The greening of jobs and promotion of green jobs in both traditional and emerging sectors should contribute to an ecologically sustainable and competitive economy with a low-carbon footprint, sustainable consumption and production patterns that help to mitigate climate change. |
| --- | --- |

2.11.

The greening of jobs and promotion of green jobs in both traditional and emerging sectors should contribute to an ecologically sustainable and competitive economy with a low-carbon footprint, sustainable consumption and production patterns that help to mitigate climate change.

| 2.12. | The EESC has addressed this broad area on many occasions in various opinions (2), emphasising, inter alia, the following points:






  — | how everyone must be fully aware of the fact that we are facing a new industrial revolution that places quality of life and of the environment at the heart of development and requires a new, integrated approach to planning, production and consumption, and to conserving and managing natural resources; |
| --- | --- | --- |

2.12.

The EESC has addressed this broad area on many occasions in various opinions (2), emphasising, inter alia, the following points:

—

how everyone must be fully aware of the fact that we are facing a new industrial revolution that places quality of life and of the environment at the heart of development and requires a new, integrated approach to planning, production and consumption, and to conserving and managing natural resources;

| — | the urgent need to move on from a defensive, knee-jerk approach to one that is decisive and proactive; |
| --- | --- |

—

the urgent need to move on from a defensive, knee-jerk approach to one that is decisive and proactive;

| — | support must be given to initiatives aimed at developing an EU policy of sustainable production and consumption, fully mainstreamed into other EU policies, with a view to: converting potential challenges into opportunities for EU industry to be competitive; |
| --- | --- |

—

support must be given to initiatives aimed at developing an EU policy of sustainable production and consumption, fully mainstreamed into other EU policies, with a view to: converting potential challenges into opportunities for EU industry to be competitive;

| — | the need for a serious dialogue involving EU institutions, national and local government, and all the social partners about the potential for changing consumption patterns and the overall economic and social model. |
| --- | --- |

—

the need for a serious dialogue involving EU institutions, national and local government, and all the social partners about the potential for changing consumption patterns and the overall economic and social model.

| 2.12.1. | Many of the industrial advances achieved in the last 30 years stem from laws and standards imposed on industries in order to reduce pollution and find new ways to convert waste into profit. New tax rules must be found to create a balance between energy savings and consumption, along with appropriate provisions to enable industries to take responsibility for their products’ entire lifecycle. |
| --- | --- |

2.12.1.

Many of the industrial advances achieved in the last 30 years stem from laws and standards imposed on industries in order to reduce pollution and find new ways to convert waste into profit. New tax rules must be found to create a balance between energy savings and consumption, along with appropriate provisions to enable industries to take responsibility for their products’ entire lifecycle.

| 2.13. | Furthermore, in a recent opinion, the EESC argued that ‘the far-reaching and much-needed changes to production and consumption make it absolutely essential to involve civil society throughout the transition to an inclusive green economy at all levels, especially at the sectoral and territorial levels (European, national and regional)’ (3). |
| --- | --- |

2.13.

Furthermore, in a recent opinion, the EESC argued that ‘the far-reaching and much-needed changes to production and consumption make it absolutely essential to involve civil society throughout the transition to an inclusive green economy at all levels, especially at the sectoral and territorial levels (European, national and regional)’ (3).

| 2.14. | On 12 December 2013, the European Parliament adopted a resolution on ‘Eco-innovation — jobs and growth through environmental policy’ (4) which:






  — | highlighted the dual environmental and economic benefits of transition to a green sustainable economy, in terms of creating sustainable jobs; |
| --- | --- | --- |

2.14.

On 12 December 2013, the European Parliament adopted a resolution on ‘Eco-innovation — jobs and growth through environmental policy’ (4) which:

—

highlighted the dual environmental and economic benefits of transition to a green sustainable economy, in terms of creating sustainable jobs;

| — | stressed that these opportunities should generate high-quality, sustainable jobs both for skilled and unskilled workers; and |
| --- | --- |

—

stressed that these opportunities should generate high-quality, sustainable jobs both for skilled and unskilled workers; and

| — | encouraged the Member States to provide incentives for businesses, in particular SMEs, to promote greater investment in private sector R & D activities. |
| --- | --- |

—

encouraged the Member States to provide incentives for businesses, in particular SMEs, to promote greater investment in private sector R & D activities.

| 2.15. | In October 2011, the Committee of the Regions (CoR) adopted an opinion on the resource-efficient Europe flagship initiative, expressing the CoR’s support for ‘the creation of a ‘multi-actor transition platform on resource efficiency’, which should also include ‘policy makers from various administrative levels including regional and local’. |
| --- | --- |

2.15.

In October 2011, the Committee of the Regions (CoR) adopted an opinion on the resource-efficient Europe flagship initiative, expressing the CoR’s support for ‘the creation of a ‘multi-actor transition platform on resource efficiency’, which should also include ‘policy makers from various administrative levels including regional and local’.

3.   General comments

| 3.1. | The EESC welcomes the publication of the Circular Economy Package and, in particular, the two initiatives to promote green employment and the development of SMEs — the subject of this opinion — in the transition to a circular economy. |
| --- | --- |

3.1.

The EESC welcomes the publication of the Circular Economy Package and, in particular, the two initiatives to promote green employment and the development of SMEs — the subject of this opinion — in the transition to a circular economy.

| 3.2. | Nevertheless, at the same time, the EESC has concerns about these initiatives — especially the Action Plan for SMEs — due to the considerable amount of information given without providing the SMEs and workers involved with concrete measures and practical guidelines on efficient and affordable ways to develop green production processes and services while also improving the quality of work without losing competitiveness. |
| --- | --- |

3.2.

Nevertheless, at the same time, the EESC has concerns about these initiatives — especially the Action Plan for SMEs — due to the considerable amount of information given without providing the SMEs and workers involved with concrete measures and practical guidelines on efficient and affordable ways to develop green production processes and services while also improving the quality of work without losing competitiveness.

| 3.3. | In the EESC’s view, the transition to the circular economy cannot happen without the involvement of production, processing and consumption structures and of the political authorities and public administration at various levels, starting with the EU level, which should shift from a prohibitory approach to a consistent proactive one that supports transition by introducing green specifications across the public procurement system. |
| --- | --- |

3.3.

In the EESC’s view, the transition to the circular economy cannot happen without the involvement of production, processing and consumption structures and of the political authorities and public administration at various levels, starting with the EU level, which should shift from a prohibitory approach to a consistent proactive one that supports transition by introducing green specifications across the public procurement system.

| 3.4. | After all, it is not simply about new manufacturing systems and the resulting need for entrepreneurs and workers to acquire new skills, or about innovative organisational systems and markets, or new forms of use and consumption, but it is also, perhaps above all, about developing a whole new industrial and service culture and — possibly more importantly — a legislative and administrative one. |
| --- | --- |

3.4.

After all, it is not simply about new manufacturing systems and the resulting need for entrepreneurs and workers to acquire new skills, or about innovative organisational systems and markets, or new forms of use and consumption, but it is also, perhaps above all, about developing a whole new industrial and service culture and — possibly more importantly — a legislative and administrative one.

| 3.5. | The Committee is convinced of the need to launch a major participatory foresight initiative at European level, under H2020, with a view to shaping a common vision for all public and private players, so as to have coherent and effective instruments available at EU, national and regional levels for a consensus-based transition to a circular economy, in addition to the positive efforts of the European Resource Efficiency Platform (EREP). |
| --- | --- |

3.5.

The Committee is convinced of the need to launch a major participatory foresight initiative at European level, under H2020, with a view to shaping a common vision for all public and private players, so as to have coherent and effective instruments available at EU, national and regional levels for a consensus-based transition to a circular economy, in addition to the positive efforts of the European Resource Efficiency Platform (EREP).

| 3.5.1. | to involve citizens, workers, consumers and companies through specific innovative — including individual — incentives for rewarding behaviour and actions; |
| --- | --- |

3.5.1.

to involve citizens, workers, consumers and companies through specific innovative — including individual — incentives for rewarding behaviour and actions;

| 3.5.2. | to promote environmental and social sustainability and stimulate innovation and investment in human, social and environmental capital through facilitated EU regulatory and financial frameworks; |
| --- | --- |

3.5.2.

to promote environmental and social sustainability and stimulate innovation and investment in human, social and environmental capital through facilitated EU regulatory and financial frameworks;

| 3.5.3. | to establish a consistent and simplified institutional framework within which companies, workers, investors and consumers can play an active part in the transition process; |
| --- | --- |

3.5.3.

to establish a consistent and simplified institutional framework within which companies, workers, investors and consumers can play an active part in the transition process;

| 3.5.4. | to secure adequate levels of EU, national and regional financial support, facilitating access to credit, especially for micro-enterprises; |
| --- | --- |

3.5.4.

to secure adequate levels of EU, national and regional financial support, facilitating access to credit, especially for micro-enterprises;

| 3.5.5. | to promote targeted tax concessions, innovative PPPs and green public procurement policies, and disseminate best practice with a view to opening up access to markets and making labour markets more inclusive, conserving resources at the regional level; |
| --- | --- |

3.5.5.

to promote targeted tax concessions, innovative PPPs and green public procurement policies, and disseminate best practice with a view to opening up access to markets and making labour markets more inclusive, conserving resources at the regional level;

| 3.5.6. | to set up lasting interaction between the world of work and business and that of education and training, with regard to green production, consumption and jobs (5); |
| --- | --- |

3.5.6.

to set up lasting interaction between the world of work and business and that of education and training, with regard to green production, consumption and jobs (5);

| 3.5.7. | provide assistance and mentoring for micro-, small and medium-sized enterprises by means of European networks and centres of excellence for the development of knowledge, skills and markets, but above all through funding and training support; |
| --- | --- |

3.5.7.

provide assistance and mentoring for micro-, small and medium-sized enterprises by means of European networks and centres of excellence for the development of knowledge, skills and markets, but above all through funding and training support;

| 3.6. | At the same time, the EESC considers it essential to set up a structured dialogue with individual sectors within which to establish pilot schemes to serve as guidance and demonstrate the potential of more sustainable practices, with the full participation of social interest groups, consumer organisations, micro- and small enterprises and the social economy. |
| --- | --- |

3.6.

At the same time, the EESC considers it essential to set up a structured dialogue with individual sectors within which to establish pilot schemes to serve as guidance and demonstrate the potential of more sustainable practices, with the full participation of social interest groups, consumer organisations, micro- and small enterprises and the social economy.

| 3.7. | The EESC believes that before adopting measures to create new decent and durable green employment and develop green action plans for SMEs, it would make sense to launch a plan to combat the planned obsolescence of products. |
| --- | --- |

3.7.

The EESC believes that before adopting measures to create new decent and durable green employment and develop green action plans for SMEs, it would make sense to launch a plan to combat the planned obsolescence of products.

| 3.8. | The costs of the recycling and reuse industries and the quality and the security of the new jobs thus created cannot be treated as the mere dictates of environmental policy; they require complex proactive governance systems involving integrated measures in many strategic sectors as well as in areas relating to consumers, transport, farming and energy (6). |
| --- | --- |

3.8.

The costs of the recycling and reuse industries and the quality and the security of the new jobs thus created cannot be treated as the mere dictates of environmental policy; they require complex proactive governance systems involving integrated measures in many strategic sectors as well as in areas relating to consumers, transport, farming and energy (6).

| 3.9. | Innovation in recycled materials markets needs to be able to count on a renewed and consistent European regulatory framework, with incentives linking product innovation with product use, combatting the present flows of scrap materials and components for reprocessing and disposal in countries with low processing costs, where scant attention is paid to the health and safety of workers (7). |
| --- | --- |

3.9.

Innovation in recycled materials markets needs to be able to count on a renewed and consistent European regulatory framework, with incentives linking product innovation with product use, combatting the present flows of scrap materials and components for reprocessing and disposal in countries with low processing costs, where scant attention is paid to the health and safety of workers (7).

| 3.10. | In the Committee’s view, the transition to the new circular economy model, including remanufacturing and reuse, must go hand in hand with the generalised dissemination of the concept of a socially responsible territory. |
| --- | --- |

3.10.

In the Committee’s view, the transition to the new circular economy model, including remanufacturing and reuse, must go hand in hand with the generalised dissemination of the concept of a socially responsible territory.

4.   The circular economy and job creation

| 4.1. | The EESC considers the measures proposed to bridge the current gaps in terms of green skills to be insufficient: the exchange of best practice within existing networks does not appear to be enough to secure a better evaluation of development in terms of skills and jobs. In the EESC’s view, clearer analyses and more targeted foresight exercises could be achieved by providing a clearer European definition of green skills and jobs, which would also feed into better statistical analysis, with the involvement of the social partners, SMEs and the social economy. This would make it possible not only to devise new job profiles, but also to convert job profiles that have become obsolete, to reflect flexicurity and the introduction of the European Quality Framework (8). |
| --- | --- |

4.1.

The EESC considers the measures proposed to bridge the current gaps in terms of green skills to be insufficient: the exchange of best practice within existing networks does not appear to be enough to secure a better evaluation of development in terms of skills and jobs. In the EESC’s view, clearer analyses and more targeted foresight exercises could be achieved by providing a clearer European definition of green skills and jobs, which would also feed into better statistical analysis, with the involvement of the social partners, SMEs and the social economy. This would make it possible not only to devise new job profiles, but also to convert job profiles that have become obsolete, to reflect flexicurity and the introduction of the European Quality Framework (8).

| 4.2. | The Committee believes that efficient and targeted use of the Structural Funds — and innovation instruments such as H2020, COSME and LIFE and also the EIB green microfinance facility — are absolutely key to promoting skilled work, particularly when geared towards small companies and the social economy and when tied in with the consensus-based foresight process promoted by the Committee.
  In this respect what is needed is: |
| --- | --- |

4.2.

The Committee believes that efficient and targeted use of the Structural Funds — and innovation instruments such as H2020, COSME and LIFE and also the EIB green microfinance facility — are absolutely key to promoting skilled work, particularly when geared towards small companies and the social economy and when tied in with the consensus-based foresight process promoted by the Committee.

In this respect what is needed is:

| 4.2.1. | a proper estimation of the number of potential sustainable, non-relocatable jobs at local, sectoral and inter-sectoral levels that could be generated by the circular economy, not least in the light of the European economy’s pressing need for sustainable growth that can generate jobs; |
| --- | --- |

4.2.1.

a proper estimation of the number of potential sustainable, non-relocatable jobs at local, sectoral and inter-sectoral levels that could be generated by the circular economy, not least in the light of the European economy’s pressing need for sustainable growth that can generate jobs;

| 4.2.2. | the guarantee of a fair and sustainable process: the shift to the circular economy should not pose social justice problems for workers, micro- and small enterprises or the social economy; |
| --- | --- |

4.2.2.

the guarantee of a fair and sustainable process: the shift to the circular economy should not pose social justice problems for workers, micro- and small enterprises or the social economy;

| 4.2.3. | a structure for social dialogue at the various levels enabling full involvement in defining a joint strategic vision and joined-up policies whose implementation will ensure that the circular economy is equipped at once with occupational skills and a work force that can enable it to grow. |
| --- | --- |

4.2.3.

a structure for social dialogue at the various levels enabling full involvement in defining a joint strategic vision and joined-up policies whose implementation will ensure that the circular economy is equipped at once with occupational skills and a work force that can enable it to grow.

| 4.2.4. | close interaction between the world of work and that of education and training for the positive development of skills, and technical and professional training systems that involve social interest groups directly (9). |
| --- | --- |

4.2.4.

close interaction between the world of work and that of education and training for the positive development of skills, and technical and professional training systems that involve social interest groups directly (9).

5.   The Green Action Plan for SMEs

| 5.1. | The EESC is convinced that the transition towards a European circular economy could open up a great number of opportunities for micro-, small and medium-sized companies and for the social economy, becoming a major driver for growth on both the internal and the international markets, and boosting their capacity to manage natural resources sustainably and generate new skilled jobs. |
| --- | --- |

5.1.

The EESC is convinced that the transition towards a European circular economy could open up a great number of opportunities for micro-, small and medium-sized companies and for the social economy, becoming a major driver for growth on both the internal and the international markets, and boosting their capacity to manage natural resources sustainably and generate new skilled jobs.

| 5.2. | The EESC calls for the Action Plan for SMEs to follow and promote the ‘Think Small First’ principle throughout the legislative and implementation process, with particular attention to legislation on the efficient use of resources and in line with the Small Business Act, carrying out ‘SME Tests’ as a key factor in the transition to a circular economy. |
| --- | --- |

5.2.

The EESC calls for the Action Plan for SMEs to follow and promote the ‘Think Small First’ principle throughout the legislative and implementation process, with particular attention to legislation on the efficient use of resources and in line with the Small Business Act, carrying out ‘SME Tests’ as a key factor in the transition to a circular economy.

| 5.3. | According to the EESC, the instruments designed to support small companies and the social economy therefore need to be readjusted since the previous set of instruments, for instance the Eco-innovation Action Plan, garnered limited results. |
| --- | --- |

5.3.

According to the EESC, the instruments designed to support small companies and the social economy therefore need to be readjusted since the previous set of instruments, for instance the Eco-innovation Action Plan, garnered limited results.

| 5.4. | Of the 34 actions described in the Commission working document (10) appended to the proposal, the Committee considers that priority should be given to the following: |
| --- | --- |

5.4.

Of the 34 actions described in the Commission working document (10) appended to the proposal, the Committee considers that priority should be given to the following:

| 5.4.1. | building up and expanding the piloting of the voluntary Environmental Technology Verification (ETV) green audit mechanism for SMEs, involving widespread verification of ecodesign and processes, potentially using the EU’s green label (e.g. Eco-label II), with the help of EU subsidies: |
| --- | --- |

5.4.1.

building up and expanding the piloting of the voluntary Environmental Technology Verification (ETV) green audit mechanism for SMEs, involving widespread verification of ecodesign and processes, potentially using the EU’s green label (e.g. Eco-label II), with the help of EU subsidies:

| 5.4.2. | boosting access to credit: broadening the role of the EIB with regard to companies’ access to credit for transition to the circular economy, expanding the Natural Capital Financing Facility (NCFF); establishing specific guarantee systems for micro- and small companies for rapid and simple access to credit, microcredit, venture capital and Private Finance for Energy Efficiency (PF4EE) instruments throughout the EU; |
| --- | --- |

5.4.2.

boosting access to credit: broadening the role of the EIB with regard to companies’ access to credit for transition to the circular economy, expanding the Natural Capital Financing Facility (NCFF); establishing specific guarantee systems for micro- and small companies for rapid and simple access to credit, microcredit, venture capital and Private Finance for Energy Efficiency (PF4EE) instruments throughout the EU;

| 5.4.3. | financing eco-innovation in micro- and small companies: facilitating use of the new SME instruments under Horizon 2020, the ERDF, the EMFF, the LIFE fund and the EAFRD, for innovative EU pilot schemes by means of a cross-programme, one-stop facility in well-defined and circumscribed areas such as the Systemic Eco-Innovation Demonstrator (SEIDEM) — in areas such as smart cities, territorial clusters, and free zones — in which to focus measures, concessions and exemptions, with quantifiable, high-profile intermediate objectives; |
| --- | --- |

5.4.3.

financing eco-innovation in micro- and small companies: facilitating use of the new SME instruments under Horizon 2020, the ERDF, the EMFF, the LIFE fund and the EAFRD, for innovative EU pilot schemes by means of a cross-programme, one-stop facility in well-defined and circumscribed areas such as the Systemic Eco-Innovation Demonstrator (SEIDEM) — in areas such as smart cities, territorial clusters, and free zones — in which to focus measures, concessions and exemptions, with quantifiable, high-profile intermediate objectives;

| 5.4.4. | stepping up in-company entrepreneurial training and mentoring: giving priority to in-company training by means of digital applications — with support from the Enterprise Europe Network (EEN) and the future European Resource Efficiency Excellence Centre — and mentoring from experts with EU funding for professional organisations working with local micro-and small companies, using Erasmus Plus and COSME for selected projects; |
| --- | --- |

5.4.4.

stepping up in-company entrepreneurial training and mentoring: giving priority to in-company training by means of digital applications — with support from the Enterprise Europe Network (EEN) and the future European Resource Efficiency Excellence Centre — and mentoring from experts with EU funding for professional organisations working with local micro-and small companies, using Erasmus Plus and COSME for selected projects;

| 5.4.5. | establishing a circular market for materials, parts and intermediate products: launching a ‘circular eBay’ with easy, secure, access for green micro- and small companies and the social economy, involving an exchange based on stiffer CEN-Cenelec-ETSI and ISO technical standards. |
| --- | --- |

5.4.5.

establishing a circular market for materials, parts and intermediate products: launching a ‘circular eBay’ with easy, secure, access for green micro- and small companies and the social economy, involving an exchange based on stiffer CEN-Cenelec-ETSI and ISO technical standards.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

---

(1)  OJ C 318, 29.10.2011, p. 142.

1

(2)  OJ C 224, 30.8.2008, p. 1; OJ C 226, 16.7.2014, p. 1; OJ C 67, 6.3.2014, p. 23 and OJ C 44, 11.2.2011, p. 110.

2

(3)  OJ C 271, 19.9.2013, p. 18.

3

(4)  http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P7-TA-2013-0584+0+DOC+XML+V0//EN

4

(5)  OJ C 311, 12.9.2014, p. 7.

5

(6)  OJ C 24, 28.1.2012, p. 11.

6

(7)  OJ C 107, 6.4.2011, p. 1.

7

(8)  OJ C 451, 16.12.2014, p. 116.

8

(9)  OJ C 311, 12.9.2014, p. 7.

9

(10)  SWD(2014) 213 final.

10

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| 14.7.2015 | EN | Official Journal of the European Union | C 230/107 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/107

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Opinion of the European Economic and Social Committee on the ‘Communication from the Commission to the European Parliament and the Council — Better situational awareness by enhanced cooperation across maritime surveillance authorities: next steps within the Common Information Sharing Environment for the EU maritime domain’

(COM(2014) 451 final)

(2015/C 230/16)

| Rapporteur: | Mr POLYZOGOPOULOS |
| --- | --- |

Rapporteur:

Mr POLYZOGOPOULOS

On 20 November 2013 the European Commission decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

Communication from the Commission to the European Parliament and the Council — Better situational awareness by enhanced cooperation across maritime surveillance authorities: next steps within the Common Information Sharing Environment for the EU maritime domain

COM(2014) 451 final.

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for preparing the Committee’s work on the subject, adopted its opinion on 11 November 2014.

At its 503rd plenary session, held on 10 and 11 December 2014 (meeting of 10 December), the European Economic and Social Committee adopted the following opinion unanimously.

1.   Conclusions and recommendations

| 1.1. | The EESC welcomes the communication as the logical sequel to efforts to make maritime surveillance more effective and economically efficient, one of the strategic objectives of the Integrated Maritime Policy (IMP), and emphasises that enhanced information-sharing between maritime surveillance authorities is a crucial to the protection, security, economy and environmental future of the EU. |
| --- | --- |

1.1.

The EESC welcomes the communication as the logical sequel to efforts to make maritime surveillance more effective and economically efficient, one of the strategic objectives of the Integrated Maritime Policy (IMP), and emphasises that enhanced information-sharing between maritime surveillance authorities is a crucial to the protection, security, economy and environmental future of the EU.

The EESC recognises the progress made at EU level and nationally since drawing up the roadmap in 2010 (1), but nevertheless considers that it would be particularly useful to evaluate more clearly the progress made in respect of the objectives and six steps set out in the roadmap and of the communication of 15 October 2009 (2).

| 1.2. | Having recently (3) drawn attention to the heightened geopolitical, strategic and environmental challenges in the area of maritime security, the EESC urges the Commission to now speed up action on the review process ‘to assess the implementation of a Maritime CISE and the need for further action’ (4), to be launched by 2018, and make it more specific. |
| --- | --- |

1.2.

Having recently (3) drawn attention to the heightened geopolitical, strategic and environmental challenges in the area of maritime security, the EESC urges the Commission to now speed up action on the review process ‘to assess the implementation of a Maritime CISE and the need for further action’ (4), to be launched by 2018, and make it more specific.

| 1.3. | In further developing the CISE (Common Information Sharing Environment), the EESC recommends making full use of the broad scope and opportunities contained in the recent Joint Communication on a European Union Maritime Security Strategy (EMMS) (5) aiming for an up-to-date, coherent and global approach to maritime surveillance. |
| --- | --- |

1.3.

In further developing the CISE (Common Information Sharing Environment), the EESC recommends making full use of the broad scope and opportunities contained in the recent Joint Communication on a European Union Maritime Security Strategy (EMMS) (5) aiming for an up-to-date, coherent and global approach to maritime surveillance.

| 1.4. | The EESC would ask the Commission to clarify how it intends to encourage Member States ‘to continue to work on modernising their IT [Information Technology] set up’ without more resources than ‘some funding [which] is available at EU level to support small improvements’ (6) and recommends that a proportion of the resources saved be earmarked or reinvested for closing the gaps in the CISE and improving it overall. |
| --- | --- |

1.4.

The EESC would ask the Commission to clarify how it intends to encourage Member States ‘to continue to work on modernising their IT [Information Technology] set up’ without more resources than ‘some funding [which] is available at EU level to support small improvements’ (6) and recommends that a proportion of the resources saved be earmarked or reinvested for closing the gaps in the CISE and improving it overall.

| 1.5. | Given the voluntary nature of the project and the significance of political commitment and of cultural barriers arising from entrenched mindsets, stereotypes, working methods, etc., the EESC urges the Commission to focus on education/training measures and confidence-building initiatives, drawing on existing successful experiences such as the North Atlantic Coast Guard Forum and the International Association of Marine Aids to Navigation and Lighthouse Authorities (IALA). |
| --- | --- |

1.5.

Given the voluntary nature of the project and the significance of political commitment and of cultural barriers arising from entrenched mindsets, stereotypes, working methods, etc., the EESC urges the Commission to focus on education/training measures and confidence-building initiatives, drawing on existing successful experiences such as the North Atlantic Coast Guard Forum and the International Association of Marine Aids to Navigation and Lighthouse Authorities (IALA).

| 1.6. | It would also ask the Commission to indicate more clearly the policy mix it intends to use, in the short and long term, to address the legal and the technical hurdles preventing the establishment of an effective CISE. |
| --- | --- |

1.6.

It would also ask the Commission to indicate more clearly the policy mix it intends to use, in the short and long term, to address the legal and the technical hurdles preventing the establishment of an effective CISE.

| 1.7. | The EESC points out that very rapid pace of development of IT will inevitably expose a common information-sharing environment such as the CISE to cyber attacks (7), as well as terrorist attacks, with incalculable security implications for transport, trade, ports, ships, crews and cargoes, and urges the Commission to address the issue of cyber safety in maritime transport and draw up detailed measures for protecting the CISE without delay. The 2014 report of the US Government Accountability Office on Maritime Critical Infrastructure Protection (http://gao.gov/products/GAO-14-459) demonstrates the urgency of the situation. |
| --- | --- |

1.7.

The EESC points out that very rapid pace of development of IT will inevitably expose a common information-sharing environment such as the CISE to cyber attacks (7), as well as terrorist attacks, with incalculable security implications for transport, trade, ports, ships, crews and cargoes, and urges the Commission to address the issue of cyber safety in maritime transport and draw up detailed measures for protecting the CISE without delay. The 2014 report of the US Government Accountability Office on Maritime Critical Infrastructure Protection (http://gao.gov/products/GAO-14-459) demonstrates the urgency of the situation.

| 1.8. | The EESC emphasises that better situational awareness and enhanced cooperation on the part of maritime surveillance authorities through the CISE will also help to safeguard the ecological integrity of the EU’s marine environment by providing better protection of biodiversity and marine resources against nuclear accidents, unlawful discharges of toxic substances, serious accidents involving pollutants and climate change. Moreover, improving the security of submarine cables and pipelines will boost energy efficiency. |
| --- | --- |

1.8.

The EESC emphasises that better situational awareness and enhanced cooperation on the part of maritime surveillance authorities through the CISE will also help to safeguard the ecological integrity of the EU’s marine environment by providing better protection of biodiversity and marine resources against nuclear accidents, unlawful discharges of toxic substances, serious accidents involving pollutants and climate change. Moreover, improving the security of submarine cables and pipelines will boost energy efficiency.

2.   Introduction

| 2.1. | Timely access to accurate information and a common, reliable representation of the situation at sea are vitally important in addressing risks and threats. Integrating different sources of data and coordination between the competent bodies will make for a fuller understanding of what is happening at sea and create added value by making efficient use of scarce resources. |
| --- | --- |

2.1.

Timely access to accurate information and a common, reliable representation of the situation at sea are vitally important in addressing risks and threats. Integrating different sources of data and coordination between the competent bodies will make for a fuller understanding of what is happening at sea and create added value by making efficient use of scarce resources.

| 2.2. | Seen in this context, optimum information-sharing between maritime surveillance authorities is one of the strategic aims of the Integrated Maritime Policy. Development of a common information-sharing environment for the EU maritime domain was already the subject of two communications by the Commission, published in 2009 and 2010 (8). |
| --- | --- |

2.2.

Seen in this context, optimum information-sharing between maritime surveillance authorities is one of the strategic aims of the Integrated Maritime Policy. Development of a common information-sharing environment for the EU maritime domain was already the subject of two communications by the Commission, published in 2009 and 2010 (8).

| 2.3. | In 2012, enhancing maritime security through integrated maritime surveillance was made a key component of the Blue Growth agenda, which sets out to promote development and create jobs in the maritime economy (9). |
| --- | --- |

2.3.

In 2012, enhancing maritime security through integrated maritime surveillance was made a key component of the Blue Growth agenda, which sets out to promote development and create jobs in the maritime economy (9).

| 2.4. | The recent (2014) Joint Communication on a European Union Maritime Security Strategy (10) reaffirms and illustrates the role of maritime surveillance and information-sharing as an important building-block of maritime security. |
| --- | --- |

2.4.

The recent (2014) Joint Communication on a European Union Maritime Security Strategy (10) reaffirms and illustrates the role of maritime surveillance and information-sharing as an important building-block of maritime security.

3.   Main points of the Commission communication

| 3.1. | The communication provides an update on progress made at European and Member State level since the introduction of the CISE roadmap, which is an ongoing collaborative and voluntary process aimed at enhancing awareness, efficiency, quality, responsiveness and coordination of surveillance operations in the European maritime domain, as well as promoting innovation. |
| --- | --- |

3.1.

The communication provides an update on progress made at European and Member State level since the introduction of the CISE roadmap, which is an ongoing collaborative and voluntary process aimed at enhancing awareness, efficiency, quality, responsiveness and coordination of surveillance operations in the European maritime domain, as well as promoting innovation.

| 3.2. | In addition to the simple exchange of information, the CISE is designed to achieve multipurpose and efficient information use by different user communities with no duplication, based on a decentralised maritime monitoring network that complies with data protection provisions and international rules. It does not replace existing information exchange systems and platforms and will not affect Member State systems or legislation in this area. |
| --- | --- |

3.2.

In addition to the simple exchange of information, the CISE is designed to achieve multipurpose and efficient information use by different user communities with no duplication, based on a decentralised maritime monitoring network that complies with data protection provisions and international rules. It does not replace existing information exchange systems and platforms and will not affect Member State systems or legislation in this area.

| 3.3. | More specifically, the roadmap (11) sets out six steps for developing the CISE: identifying user communities, mapping of data sets and gap analysis for data exchange, setting common data classification levels, developing a supporting framework, establishing access rights and ensuring respect of legal provisions. |
| --- | --- |

3.3.

More specifically, the roadmap (11) sets out six steps for developing the CISE: identifying user communities, mapping of data sets and gap analysis for data exchange, setting common data classification levels, developing a supporting framework, establishing access rights and ensuring respect of legal provisions.

| 3.4. | The CISE covers the following sectoral functions: 1) shipping security (including search and rescue operations), maritime security and prevention of pollution caused by vessels; 2) fisheries control; 3) preparedness and response in the event of maritime pollution incidents and marine environment protection; 4) customs; 5) border controls; 6) law enforcement; and 7) defence. |
| --- | --- |

3.4.

The CISE covers the following sectoral functions: 1) shipping security (including search and rescue operations), maritime security and prevention of pollution caused by vessels; 2) fisheries control; 3) preparedness and response in the event of maritime pollution incidents and marine environment protection; 4) customs; 5) border controls; 6) law enforcement; and 7) defence.

| 3.5. | The potential savings in administrative and operational costs could yield an overall benefit to the European economy of around EUR 400 million per year, with a direct benefit of some EUR 40 million for public authorities. Investment costs in this area are estimated at EUR 10 million per year in the first 10 years. |
| --- | --- |

3.5.

The potential savings in administrative and operational costs could yield an overall benefit to the European economy of around EUR 400 million per year, with a direct benefit of some EUR 40 million for public authorities. Investment costs in this area are estimated at EUR 10 million per year in the first 10 years.

4.   General considerations

| 4.1. | Underscoring the scale and importance of European shipping for employment and the economy, the EESC has in previous opinions made a number of pertinent comments and suggestions in connection with a range of issues relating to European maritime policy (12) and has given its view in detail both on general questions of maritime security and on specific aspects of integrated maritime surveillance, highlighting the need for an integrated system of maritime surveillance (13). |
| --- | --- |

4.1.

Underscoring the scale and importance of European shipping for employment and the economy, the EESC has in previous opinions made a number of pertinent comments and suggestions in connection with a range of issues relating to European maritime policy (12) and has given its view in detail both on general questions of maritime security and on specific aspects of integrated maritime surveillance, highlighting the need for an integrated system of maritime surveillance (13).

| 4.2. | In particular, endorsing a cross-sectoral approach to maritime governance, the EESC has stressed that a genuinely integrated maritime market calls for closer cooperation between Member States’ national surveillance authorities, coastguards and navies, which would require a common information-sharing structure and introduction of an integrated maritime surveillance system (14). |
| --- | --- |

4.2.

In particular, endorsing a cross-sectoral approach to maritime governance, the EESC has stressed that a genuinely integrated maritime market calls for closer cooperation between Member States’ national surveillance authorities, coastguards and navies, which would require a common information-sharing structure and introduction of an integrated maritime surveillance system (14).

| 4.3. | The EESC has also expressed support for a common EU-wide surveillance mechanism based on a harmonised legal framework for sharing sensitive and non-sensitive information between the EU Member States’ authorities, agencies and users (15). |
| --- | --- |

4.3.

The EESC has also expressed support for a common EU-wide surveillance mechanism based on a harmonised legal framework for sharing sensitive and non-sensitive information between the EU Member States’ authorities, agencies and users (15).

| 4.4. | The EESC attaches particular importance to clarifying and securing governance structures and resources if the present exceptionally complex and ambitious project, involving some 400 bodies handling a vast amount of diverse information on maritime surveillance, is to be viable. These bodies include the authorities of the EU and EEA Member States and various EU agencies, such as the European Fisheries Control Agency (EFCA), Frontex, the European Maritime Safety Agency (EMSA) and the European Defence Agency (EDA). |
| --- | --- |

4.4.

The EESC attaches particular importance to clarifying and securing governance structures and resources if the present exceptionally complex and ambitious project, involving some 400 bodies handling a vast amount of diverse information on maritime surveillance, is to be viable. These bodies include the authorities of the EU and EEA Member States and various EU agencies, such as the European Fisheries Control Agency (EFCA), Frontex, the European Maritime Safety Agency (EMSA) and the European Defence Agency (EDA).

| 4.5. | The EESC points out that — given the voluntary nature of the CISE and the subsidiarity principle — the Member States play a pivotal role that, in a climate of budget austerity and crisis, places an additional burden on their competent authorities and will incur major expenses in terms of modernising the relevant IT systems or ensuring that they are compatible, as a significant proportion (around a quarter) are based on monolithic and obsolete architecture. (See SWD(2014) 224 final. Impact assessment; and Gartner, 2013. Sustainability and Efficiency of Visions for CISE, European Commission, DG for Maritime Affairs and Fisheries.) |
| --- | --- |

4.5.

The EESC points out that — given the voluntary nature of the CISE and the subsidiarity principle — the Member States play a pivotal role that, in a climate of budget austerity and crisis, places an additional burden on their competent authorities and will incur major expenses in terms of modernising the relevant IT systems or ensuring that they are compatible, as a significant proportion (around a quarter) are based on monolithic and obsolete architecture. (See SWD(2014) 224 final. Impact assessment; and Gartner, 2013. Sustainability and Efficiency of Visions for CISE, European Commission, DG for Maritime Affairs and Fisheries.)

| 4.6. | Taking into account the Risk Assessment Study on the EU maritime domain for the next 15 years, the EESC considers that when ranking information to be shared, priority should be given to effectively identifying risks, threats and vulnerabilities in each individual sector, both in maritime regions and overall. (See Wise Pens International, 2013. Risk Assessment Study as an Integral Part of the Impact Assessment in Support of a CISE for the EU Maritime Domain, European Commission, DG for Maritime Affairs and Fisheries.) |
| --- | --- |

4.6.

Taking into account the Risk Assessment Study on the EU maritime domain for the next 15 years, the EESC considers that when ranking information to be shared, priority should be given to effectively identifying risks, threats and vulnerabilities in each individual sector, both in maritime regions and overall. (See Wise Pens International, 2013. Risk Assessment Study as an Integral Part of the Impact Assessment in Support of a CISE for the EU Maritime Domain, European Commission, DG for Maritime Affairs and Fisheries.)

| 4.7. | In any event, the confidentiality and protection of sensitive commercial and personal data is an issue of major importance. In the EESC’s view, this is a subject that merits attention and more detailed study, and it refers to its previous comments and suggestions on the subject. |
| --- | --- |

4.7.

In any event, the confidentiality and protection of sensitive commercial and personal data is an issue of major importance. In the EESC’s view, this is a subject that merits attention and more detailed study, and it refers to its previous comments and suggestions on the subject.

| 4.8. | The EESC is pleased with the progress made in implementing the roadmap through the BluemassMed, Marsuno and CoopP programmes, which have reaffirmed the operational need for cross-sectoral information exchange and helped to provide clarification, and urges the Commission to broaden its efforts here. |
| --- | --- |

4.8.

The EESC is pleased with the progress made in implementing the roadmap through the BluemassMed, Marsuno and CoopP programmes, which have reaffirmed the operational need for cross-sectoral information exchange and helped to provide clarification, and urges the Commission to broaden its efforts here.

| 4.9. | The Committee also finds it encouraging that progress has already been made in introducing a range of systems (16) serving the objectives of different policy areas and in some cases covering more than one policy area. |
| --- | --- |

4.9.

The Committee also finds it encouraging that progress has already been made in introducing a range of systems (16) serving the objectives of different policy areas and in some cases covering more than one policy area.

| 4.10. | The EESC draws attention to the EU’s unique marine environment with its six sea basins, its peripheral regions and the particular features of its islands, and emphasises that in a context of heightened globalised threats and risks it does not make sense to enhance awareness and the efficiency of the CISE without promoting international, regional and cross-border cooperation, paying due attention to sharing selected information with third countries in the light of security issues and the reciprocity of the information concerned. |
| --- | --- |

4.10.

The EESC draws attention to the EU’s unique marine environment with its six sea basins, its peripheral regions and the particular features of its islands, and emphasises that in a context of heightened globalised threats and risks it does not make sense to enhance awareness and the efficiency of the CISE without promoting international, regional and cross-border cooperation, paying due attention to sharing selected information with third countries in the light of security issues and the reciprocity of the information concerned.

| 4.11. | The EESC considers that a coherent approach to maritime surveillance in the EU and worldwide will also need to take account of issues arising from the planning and deployment of Common Security and Defence Policy (CSDP) missions and operations. |
| --- | --- |

4.11.

The EESC considers that a coherent approach to maritime surveillance in the EU and worldwide will also need to take account of issues arising from the planning and deployment of Common Security and Defence Policy (CSDP) missions and operations.

| 4.12. | The EESC welcomes the significant improvement in information exchange between civilian and military user communities, since the latter are one of the main holders of maritime surveillance data, and calls on the Commission to consider making targeted use of NATO resources. It also points to the best practice in civilian-military cooperation that has been developed, at national and European level, under the European Border Surveillance System (EUROSUR). |
| --- | --- |

4.12.

The EESC welcomes the significant improvement in information exchange between civilian and military user communities, since the latter are one of the main holders of maritime surveillance data, and calls on the Commission to consider making targeted use of NATO resources. It also points to the best practice in civilian-military cooperation that has been developed, at national and European level, under the European Border Surveillance System (EUROSUR).

| 4.13. | The EESC urges the Commission to pursue greater use of space assets and data in developing the CISE and notes that maritime surveillance is one of the uses offered by the EU’s satellite systems. The maritime surveillance services of Copernicus (formerly GMES — Global Monitoring for Environment and Security System), for example, support measures to combat piracy, drug trafficking, illegal fishing and toxic waste disposal in cooperation with services such as Frontex, EMSA and the European Union Satellite Centre for the surveillance of EU land borders, while contributing to security applications in the surveillance of the EU’s external sea borders. |
| --- | --- |

4.13.

The EESC urges the Commission to pursue greater use of space assets and data in developing the CISE and notes that maritime surveillance is one of the uses offered by the EU’s satellite systems. The maritime surveillance services of Copernicus (formerly GMES — Global Monitoring for Environment and Security System), for example, support measures to combat piracy, drug trafficking, illegal fishing and toxic waste disposal in cooperation with services such as Frontex, EMSA and the European Union Satellite Centre for the surveillance of EU land borders, while contributing to security applications in the surveillance of the EU’s external sea borders.

| 4.14. | The EESC urges the Commission to explore the issue of cyber security in maritime transport and draw up detailed measures for protecting the CISE without delay, bearing in mind that this will require particularly active horizontal coordination between the authorities involved. |
| --- | --- |

4.14.

The EESC urges the Commission to explore the issue of cyber security in maritime transport and draw up detailed measures for protecting the CISE without delay, bearing in mind that this will require particularly active horizontal coordination between the authorities involved.

5.   Specific comments

| 5.1. | The EESC urges the Commission to intensify its efforts in the area of research, development and innovation in order to tackle the considerable technical issues involved in the interoperability and architecture of applications, systems and services, e.g. variations in data quality between different software and systems, which have a significant impact on the effective implementation of the CISE and on its credibility (17). |
| --- | --- |

5.1.

The EESC urges the Commission to intensify its efforts in the area of research, development and innovation in order to tackle the considerable technical issues involved in the interoperability and architecture of applications, systems and services, e.g. variations in data quality between different software and systems, which have a significant impact on the effective implementation of the CISE and on its credibility (17).

| 5.2. | The EESC considers that establishing the common information-sharing environment in the EU maritime domain presents opportunities for employment and innovative entrepreneurship, particularly in the area of information and communications technology (ICT), and calls on the Commission to develop this important aspect. |
| --- | --- |

5.2.

The EESC considers that establishing the common information-sharing environment in the EU maritime domain presents opportunities for employment and innovative entrepreneurship, particularly in the area of information and communications technology (ICT), and calls on the Commission to develop this important aspect.

| 5.3. | The EESC urges the Commission to step up its efforts to overcome cultural barriers to information-sharing and distribution and believes that producing a non-binding handbook containing best-practice recommendations on how to apply the CISE will not be enough on its own to build trust and understanding through a ‘care to share to be aware’ approach within and between sectors. |
| --- | --- |

5.3.

The EESC urges the Commission to step up its efforts to overcome cultural barriers to information-sharing and distribution and believes that producing a non-binding handbook containing best-practice recommendations on how to apply the CISE will not be enough on its own to build trust and understanding through a ‘care to share to be aware’ approach within and between sectors.

| 5.4. | Differences in cross-sectoral integration in maritime surveillance in the Member States are giving rise to pronounced discrepancies in efforts to connect with the CISE, e.g. some countries have simplified their IT systems in the area of surveillance while others have not. A number of countries have built up robust systems of cross-sectoral electronic cooperation domestically, whereas in others individual sectors continue to operate closed sectoral IT systems. |
| --- | --- |

5.4.

Differences in cross-sectoral integration in maritime surveillance in the Member States are giving rise to pronounced discrepancies in efforts to connect with the CISE, e.g. some countries have simplified their IT systems in the area of surveillance while others have not. A number of countries have built up robust systems of cross-sectoral electronic cooperation domestically, whereas in others individual sectors continue to operate closed sectoral IT systems.

| 5.5. | The EESC welcomes the Commission’s initiatives to develop prototypes aimed at designing a common data model, in other words a list of terms, meanings, naming conventions, data formats and data relationships, as a tool for ‘translation’ between the various maritime surveillance information systems, particularly the civilian and military systems. |
| --- | --- |

5.5.

The EESC welcomes the Commission’s initiatives to develop prototypes aimed at designing a common data model, in other words a list of terms, meanings, naming conventions, data formats and data relationships, as a tool for ‘translation’ between the various maritime surveillance information systems, particularly the civilian and military systems.

| 5.6. | The EESC is pleased with the progress made in setting up National Single Windows, which provide central national information exchange platforms for reporting and sharing of ship-related information linked to the Union maritime information and exchange system, as well as to other systems. Examples of good practice in this area have been identified by the UN’s Economic Commission for Europe (ECE/UN) in its Recommendation 33 on facilitating trade and transport, serving as useful reference points for the CISE. |
| --- | --- |

5.6.

The EESC is pleased with the progress made in setting up National Single Windows, which provide central national information exchange platforms for reporting and sharing of ship-related information linked to the Union maritime information and exchange system, as well as to other systems. Examples of good practice in this area have been identified by the UN’s Economic Commission for Europe (ECE/UN) in its Recommendation 33 on facilitating trade and transport, serving as useful reference points for the CISE.

| 5.7. | The EESC believes that the serious matter of vendor lock-in for IT platforms needs to be addressed, as this will impede interoperability. In fact, around 85 % of maritime IT surveillance systems in the Member States have their own specific infrastructure and are not standardised, meaning that a single vendor must be relied on if they have to be upgraded or adjusted. |
| --- | --- |

5.7.

The EESC believes that the serious matter of vendor lock-in for IT platforms needs to be addressed, as this will impede interoperability. In fact, around 85 % of maritime IT surveillance systems in the Member States have their own specific infrastructure and are not standardised, meaning that a single vendor must be relied on if they have to be upgraded or adjusted.

Brussels, 10 December 2014

The President of the European Economic and Social Committee

Henri MALOSSE

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(1)  A Draft Roadmap towards establishing the Common Information Sharing Environment for the surveillance of the EU maritime domain, COM(2010) 584 final.

1

A Draft Roadmap towards establishing the Common Information Sharing Environment for the surveillance of the EU maritime domain,

(2)  Towards the integration of maritime surveillance: A common information sharing environment for the EU maritime domain, COM(2009) 538 final.

2

Towards the integration of maritime surveillance: A common information sharing environment for the EU maritime domain

(3)  EESC opinion on an EU Maritime Security Strategy (OJ C 458, 19.12.2014, p. 61).

3

EU Maritime Security Strategy

(4)  COM(2014) 451 final, p. 7.

4

(5)  For an open and secure global maritime domain: elements for a European Union maritime security strategy, JOIN(2014) 9 final.

5

For an open and secure global maritime domain: elements for a European Union maritime security strategy

(6)  COM(2014) 451 final, p. 8.

6

(7)  EESC own-initiative opinion on Cyber attacks in the EU (OJ C 451, 16.12.2014, p. 31).

7

Cyber attacks in the EU

(8)  COM(2009) 538 final and COM(2010) 584 final.

8

(9)  COM(2012) 494 final.

9

(10)  JOIN(2014) 9 final, pp. 7-8.

10

(11)  COM(2010) 584 final.

11

(12)  See, for example: OJ C 211, 19.8.2008, p. 31; OJ C 128, 18.5.2010, p. 131; OJ C 107, 6.4.2011, p. 64; OJ C 161, 6.6.2013, p. 87; OJ C 255, 22.9.2010, p. 103.

12

(13)  See, for example: OJ C 44, 11.2.2011, p. 173; OJ C 67, 6.3.2014, p. 32; OJ C 76, 14.3.2013, p. 15; OJ C 168, 20.7.2007, p. 57; OJ C 32, 5.2.2004, p. 21; OJ C 61, 14.3.2003, p. 174; and OJ C 458, 19.12.2014, p. 61.

13

(14)  OJ C 107, 6.4.2011, p. 64.

14

(15)  OJ C 44, 11.2.2011, p. 173.

15

(16)  COM(2014) 451 final, p. 4.

16

(17)  COM(2014) 451 final.

17

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| 14.7.2015 | EN | Official Journal of the European Union | C 230/112 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/112

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Opinion of the European Economic and Social Committee on the ‘Strategy for the protection and enforcement of intellectual property rights in third countries (Communication)’

(COM(2014) 389 final)

(2015/C 230/17)

| Rapporteur: | Mr Jacques LEMERCIER |
| --- | --- |

Rapporteur:

Mr Jacques LEMERCIER

On 16 July 2014, the Commission decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee — Trade, growth and intellectual property — Strategy for the protection and enforcement of intellectual property rights in third countries

COM(2014) 389 final.

The Section for External Relations, which was responsible for preparing the Committee’s work on the subject, adopted its opinion on 17 November 2014.

At its 503rd plenary session, held on 10 and 11 December 2014 (meeting of 10 December 2014), the European Economic and Social Committee adopted the following opinion by 127 votes, with no votes against and four abstentions.

1.   Conclusions and recommendations

| 1.1. | The EESC endorses the communication aimed at enhancing the protection and enforcement of intellectual property rights in third countries. |
| --- | --- |

1.1.

The EESC endorses the communication aimed at enhancing the protection and enforcement of intellectual property rights in third countries.

| 1.2. | In particular, the Committee supports the Commission’s approach to combating counterfeiting in third countries, which it sees as a priority. |
| --- | --- |

1.2.

In particular, the Committee supports the Commission’s approach to combating counterfeiting in third countries, which it sees as a priority.

| 1.3. | The EESC considers that the new approach towards third countries strikes a balance between maintaining European aid and making provision for sanctions in cases of proven fraud. |
| --- | --- |

1.3.

The EESC considers that the new approach towards third countries strikes a balance between maintaining European aid and making provision for sanctions in cases of proven fraud.

| 1.4. | The EESC notes that under no circumstances must local populations suffer from any reduction in particular forms of EU funding. |
| --- | --- |

1.4.

The EESC notes that under no circumstances must local populations suffer from any reduction in particular forms of EU funding.

| 1.5. | The EESC stresses the need to raise awareness among civil society both in Europe and in third countries and ensure it is better informed about the consequences of IPR infringements. The luxury goods sector is not the only one to have been hit by counterfeiting. Counterfeiting affects a variety of sectors, including the automobile, aviation, medicinal, phytosanitary and hygiene products sectors, not to mention numerous mass-marketed consumer goods such as toys and electrical appliances. |
| --- | --- |

1.5.

The EESC stresses the need to raise awareness among civil society both in Europe and in third countries and ensure it is better informed about the consequences of IPR infringements. The luxury goods sector is not the only one to have been hit by counterfeiting. Counterfeiting affects a variety of sectors, including the automobile, aviation, medicinal, phytosanitary and hygiene products sectors, not to mention numerous mass-marketed consumer goods such as toys and electrical appliances.

| 1.6. | The EESC is convinced that, alongside international agreements on the protection of intellectual property rights, the signature of bilateral trade agreements, combined with technical assistance for third countries, remains the best instrument for upholding the rights of the various parties. |
| --- | --- |

1.6.

The EESC is convinced that, alongside international agreements on the protection of intellectual property rights, the signature of bilateral trade agreements, combined with technical assistance for third countries, remains the best instrument for upholding the rights of the various parties.

| 1.7. | The EESC is in favour of the ‘follow the money’ approach to IPR taken by the Commission at EU level, whilst wondering how effective it really is, beyond the exemplary voluntary steps taken by the key intermediaries on the internet economy value chain. |
| --- | --- |

1.7.

The EESC is in favour of the ‘follow the money’ approach to IPR taken by the Commission at EU level, whilst wondering how effective it really is, beyond the exemplary voluntary steps taken by the key intermediaries on the internet economy value chain.

| 1.8. | Lastly, the EESC believes that, having failed to raise public awareness of the importance of upholding intellectual property rights, the Commission should take new measures to put this right. |
| --- | --- |

1.8.

Lastly, the EESC believes that, having failed to raise public awareness of the importance of upholding intellectual property rights, the Commission should take new measures to put this right.

2.   Gist of the Commission communication

| 2.1. | This communication is intended to revise the strategy introduced by the European Commission in 2004 by proposing a new strategy ‘for the protection of intellectual property rights in third countries’. The Commission considers that not only has there been significant technological change but also the challenges and risks to European companies’ intellectual property (IP) have evolved considerably in the last 10 years, as has the relationship between society and IPR. The text sets out more specific and effective methods for protecting intellectual property rights in third countries and for combating counterfeiting. |
| --- | --- |

2.1.

This communication is intended to revise the strategy introduced by the European Commission in 2004 by proposing a new strategy ‘for the protection of intellectual property rights in third countries’. The Commission considers that not only has there been significant technological change but also the challenges and risks to European companies’ intellectual property (IP) have evolved considerably in the last 10 years, as has the relationship between society and IPR. The text sets out more specific and effective methods for protecting intellectual property rights in third countries and for combating counterfeiting.

2.2.   The findings are harsh: misappropriation of intellectual property rights impedes growth.

| 2.2.1. | IPR-intensive sectors account for around 39 % of EU GDP (worth some EUR 4  700 billion annually) and, taking indirect jobs into account, up to 35 % of all jobs. |
| --- | --- |

2.2.1.

IPR-intensive sectors account for around 39 % of EU GDP (worth some EUR 4  700 billion annually) and, taking indirect jobs into account, up to 35 % of all jobs.

| 2.2.2. | Some estimates cited by the Commission suggest that the EU loses about EUR 8 billion of its GDP a year to counterfeiting and piracy. Global costs could reach as high as EUR 1  300 billion by 2015. |
| --- | --- |

2.2.2.

Some estimates cited by the Commission suggest that the EU loses about EUR 8 billion of its GDP a year to counterfeiting and piracy. Global costs could reach as high as EUR 1  300 billion by 2015.

| 2.2.3. | Given that the share of the BRICS countries (1) in world trade increased from 8 % in 2000 to 18,2 % in 2010 and it is estimated that developing countries will account for nearly 60 % of global GDP by 2030, there is a risk that counterfeiting, piracy, theft and other forms of IP misappropriation will develop further. |
| --- | --- |

2.2.3.

Given that the share of the BRICS countries (1) in world trade increased from 8 % in 2000 to 18,2 % in 2010 and it is estimated that developing countries will account for nearly 60 % of global GDP by 2030, there is a risk that counterfeiting, piracy, theft and other forms of IP misappropriation will develop further.

| 2.2.4. | The internet is vital in many sectors, with the internet economy estimated to have generated more than 20 % of the growth in GDP in the G8 countries between 2006 and 2011. The rise in digital technology, however, has caused damage to IPR on an unprecedented scale, with counterfeit and pirated products estimated to have accounted for 2 % of world trade in 2008. |
| --- | --- |

2.2.4.

The internet is vital in many sectors, with the internet economy estimated to have generated more than 20 % of the growth in GDP in the G8 countries between 2006 and 2011. The rise in digital technology, however, has caused damage to IPR on an unprecedented scale, with counterfeit and pirated products estimated to have accounted for 2 % of world trade in 2008.

| 2.2.5. | This involves not only cultural digital goods, but also physical goods, traded increasingly on e-commerce platforms. |
| --- | --- |

2.2.5.

This involves not only cultural digital goods, but also physical goods, traded increasingly on e-commerce platforms.

2.3.   This why proper IP ‘infrastructure’ is a necessity.

| 2.3.1. | There have been significant IP regulatory reforms in many third countries as a result of the WTO’s Trade-Related Intellectual Property Rights (TRIPS) agreement. Enforcement efforts have however been hindered by a lack of political will, local officials lacking training, overly lengthy judicial proceedings and court sanctions having insufficient clout. Furthermore, the fact that the internet knows no boundaries (in contrast to intellectual property laws) complicates the framing of balanced policies and raises the issue of the responsibility of intermediaries, such as internet service providers when they host sites that disregard IPR, particularly when they are based in third countries where there is an absence of appropriate legislation or a lack of willingness to act. |
| --- | --- |

2.3.1.

There have been significant IP regulatory reforms in many third countries as a result of the WTO’s Trade-Related Intellectual Property Rights (TRIPS) agreement. Enforcement efforts have however been hindered by a lack of political will, local officials lacking training, overly lengthy judicial proceedings and court sanctions having insufficient clout. Furthermore, the fact that the internet knows no boundaries (in contrast to intellectual property laws) complicates the framing of balanced policies and raises the issue of the responsibility of intermediaries, such as internet service providers when they host sites that disregard IPR, particularly when they are based in third countries where there is an absence of appropriate legislation or a lack of willingness to act.

| 2.3.2. | With regard to the specific issue of access to affordable, safe and effective medicines, the EU applies policies intended to reduce obstacles to trade in both innovative and generic medicines. At the same time, one of its objectives is to curb trade in counterfeit and falsified medicines that can be dangerous for patients. |
| --- | --- |

2.3.2.

With regard to the specific issue of access to affordable, safe and effective medicines, the EU applies policies intended to reduce obstacles to trade in both innovative and generic medicines. At the same time, one of its objectives is to curb trade in counterfeit and falsified medicines that can be dangerous for patients.

| 2.3.3. | The communication notes that the EU has a range of ‘tools’ available to combat these abuses, but that their effectiveness all too often depends on the willingness of third countries to enforce rights. |
| --- | --- |

2.3.3.

The communication notes that the EU has a range of ‘tools’ available to combat these abuses, but that their effectiveness all too often depends on the willingness of third countries to enforce rights.

2.4.   Improving communication with stakeholders

| 2.4.1. | It is worth noting that respect for fundamental rights and ‘internet freedoms’ led to the rejection of the proposal for an Anti-Counterfeiting Trade Agreement (ACTA) in Europe and of the Stop On-line Piracy Act (SOPA) and the Protect IP Act (PIPA) proposals in the USA. These failures demonstrate how difficult it is to reconcile the need to uphold IPR with public opinion. Indeed some sections of the European public do not consider counterfeiting and piracy to be crimes and are unaware of the economic consequences of IPR infringements.
  A better explanation of the EU’s goals, the impact of IPR infringements and the EU’s efforts to enhance IPR enforcement must therefore be provided in third countries so as to create an environment conducive to the defence of inventors’ rights there. |
| --- | --- |

2.4.1.

It is worth noting that respect for fundamental rights and ‘internet freedoms’ led to the rejection of the proposal for an Anti-Counterfeiting Trade Agreement (ACTA) in Europe and of the Stop On-line Piracy Act (SOPA) and the Protect IP Act (PIPA) proposals in the USA. These failures demonstrate how difficult it is to reconcile the need to uphold IPR with public opinion. Indeed some sections of the European public do not consider counterfeiting and piracy to be crimes and are unaware of the economic consequences of IPR infringements.

A better explanation of the EU’s goals, the impact of IPR infringements and the EU’s efforts to enhance IPR enforcement must therefore be provided in third countries so as to create an environment conducive to the defence of inventors’ rights there.

2.5.   Providing better data

| 2.5.1. | Some data, for example on the scale and impact of IPR infringements, is still difficult to obtain. |
| --- | --- |

2.5.1.

Some data, for example on the scale and impact of IPR infringements, is still difficult to obtain.

| 2.5.2. | The establishment of a European Observatory on Infringements of Intellectual Property Rights is an important measure. It produces information on the IPR situation in non-EU countries in order to establish priorities and inform stakeholders. |
| --- | --- |

2.5.2.

The establishment of a European Observatory on Infringements of Intellectual Property Rights is an important measure. It produces information on the IPR situation in non-EU countries in order to establish priorities and inform stakeholders.

2.6.   Harmonising European legislation, for a bigger influence in third countries

There is evidence that harmonised EU-level IPR legislation facilitates negotiations with third countries because it provides a clear basis for establishing the EU’s negotiating position.

2.7.   Enhancing cooperation within the EU

The scope for further improving cooperation between the Commission and Member States (on information sharing, for instance) should be explored, building on the partnership that has, for example, been established between the Commission, Member States and business to implement the market access strategy and thus to be more resource-efficient.

2.8.   Improving protection and enforcement of IPRs in third countries

As the 2010 evaluation study noted, ‘The Commission was an active contributor to IP enforcement at multilateral level, in particular at the WTO TRIPS Council, but it reaped only limited rewards owing mainly to third country opposition.’

2.9.   Dispute settlement and other remedies

| 2.9.1. | WTO dispute settlement procedures can be resorted to for breaches of the TRIPS Agreement. |
| --- | --- |

2.9.1.

WTO dispute settlement procedures can be resorted to for breaches of the TRIPS Agreement.

| 2.9.2. | The Commission could consider restricting participation in or funding under specific EU-funded technical assistance programmes for countries that persistently break international commitments on IP rules. |
| --- | --- |

2.9.2.

The Commission could consider restricting participation in or funding under specific EU-funded technical assistance programmes for countries that persistently break international commitments on IP rules.

| 2.9.3. | To improve dialogue and ensure that they have expertise on the ground, several Member States have ‘IP attachés’ (2) within their delegations in key countries. The aim is to provide EU right holders in third countries with assistance. |
| --- | --- |

2.9.3.

To improve dialogue and ensure that they have expertise on the ground, several Member States have ‘IP attachés’ (2) within their delegations in key countries. The aim is to provide EU right holders in third countries with assistance.

2.10.   Establishing geographical priorities

Every two years, the EU will update its list of priority countries where IPR are flouted.

3.   Key issues

| 3.1. | A recent study carried out by the European Observatory on Infringements of Intellectual Property Rights and the European Patent Office examines intellectual property rights intensive industries. The study evaluates their contribution to economic performance and trade at EU level and conducts an analysis at Member State level for the 2008-10 period. |
| --- | --- |

3.1.

A recent study carried out by the European Observatory on Infringements of Intellectual Property Rights and the European Patent Office examines intellectual property rights intensive industries. The study evaluates their contribution to economic performance and trade at EU level and conducts an analysis at Member State level for the 2008-10 period.

| 3.2. | During that period intellectual property rights intensive industries accounted for the greater share of EU trade with the rest of the world and generated a trade surplus. 88 % of EU imports consisted of the products of IPR-intensive industries. The share for EU exports was 90 %. IPR-intensive industries clearly make a positive contribution to the EU’s trade position. |
| --- | --- |

3.2.

During that period intellectual property rights intensive industries accounted for the greater share of EU trade with the rest of the world and generated a trade surplus. 88 % of EU imports consisted of the products of IPR-intensive industries. The share for EU exports was 90 %. IPR-intensive industries clearly make a positive contribution to the EU’s trade position.

| 3.3. | According to the study, IPR-intensive industries account for 26 % of total employment in the EU, i.e. 56 million direct jobs, not to mention a further 20 million indirect jobs. A total of one in three jobs in the EU is based on IPR-intensive sectors. |
| --- | --- |

3.3.

According to the study, IPR-intensive industries account for 26 % of total employment in the EU, i.e. 56 million direct jobs, not to mention a further 20 million indirect jobs. A total of one in three jobs in the EU is based on IPR-intensive sectors.

| 3.4. | The economic and social difficulties currently facing the European Union would make it worth measuring the economic and social impact of the failure to uphold IPR in the EU Member States and in third countries. |
| --- | --- |

3.4.

The economic and social difficulties currently facing the European Union would make it worth measuring the economic and social impact of the failure to uphold IPR in the EU Member States and in third countries.

3.5.   Certain sectors remain highly sensitive, and access to medicinal products is one of them

| 3.5.1. | The EESC would draw attention to the specific case of compulsory licences in the context of international trade. The licences are defined by Article 31 of the TRIPS agreement and are a mechanism that enables patents to be used without the authorisation of the right holder, in the interests of public health for instance. |
| --- | --- |

3.5.1.

The EESC would draw attention to the specific case of compulsory licences in the context of international trade. The licences are defined by Article 31 of the TRIPS agreement and are a mechanism that enables patents to be used without the authorisation of the right holder, in the interests of public health for instance.

| 3.5.2. | In general, the holder of a patent can either use the protected inventions him or herself or authorise someone else to do so. However, when it is justifiable for reasons of general interest, national public authorities can authorise the exploitation of a patent by a third party without the owner’s consent. |
| --- | --- |

3.5.2.

In general, the holder of a patent can either use the protected inventions him or herself or authorise someone else to do so. However, when it is justifiable for reasons of general interest, national public authorities can authorise the exploitation of a patent by a third party without the owner’s consent.

| 3.5.3. | This provision can be applied in any third country that has signed the TRIPS agreement and by EU Member States when molecules that could improve public health are marketed at a prohibitive price by companies based in a third country. |
| --- | --- |

3.5.3.

This provision can be applied in any third country that has signed the TRIPS agreement and by EU Member States when molecules that could improve public health are marketed at a prohibitive price by companies based in a third country.

4.   Specific comments

| 4.1. | The EESC endorses the communication aimed at enhancing the protection and enforcement of intellectual property rights in third countries. |
| --- | --- |

4.1.

The EESC endorses the communication aimed at enhancing the protection and enforcement of intellectual property rights in third countries.

| 4.2. | The EESC welcomes the fact that the new approach towards third countries strikes a balance between the need to maintain European aid while also providing for sanctions in cases of IPR infringement. |
| --- | --- |

4.2.

The EESC welcomes the fact that the new approach towards third countries strikes a balance between the need to maintain European aid while also providing for sanctions in cases of IPR infringement.

| 4.3. | The EESC notes that under no circumstances must local populations suffer from any reduction in particular forms of EU funding. |
| --- | --- |

4.3.

The EESC notes that under no circumstances must local populations suffer from any reduction in particular forms of EU funding.

| 4.4. | The EESC endorses the March 2014 European Council statement that intellectual property (IP) constitutes a key driver for growth and innovation. |
| --- | --- |

4.4.

The EESC endorses the March 2014 European Council statement that intellectual property (IP) constitutes a key driver for growth and innovation.

| 4.5. | The Committee therefore supports the Commission’s approach to combating counterfeiting, which it sees as a priority. |
| --- | --- |

4.5.

The Committee therefore supports the Commission’s approach to combating counterfeiting, which it sees as a priority.

| 4.6. | The EESC notes that it is not only the luxury goods sectors (clothing, perfumes, leather goods, etc.) that are affected. The counterfeiting of mechanical parts for the automotive sector, of pesticides with highly dangerous ingredients, and of everyday consumer goods for personal hygiene is growing at an alarming rate, with immediate implications for health and safety. |
| --- | --- |

4.6.

The EESC notes that it is not only the luxury goods sectors (clothing, perfumes, leather goods, etc.) that are affected. The counterfeiting of mechanical parts for the automotive sector, of pesticides with highly dangerous ingredients, and of everyday consumer goods for personal hygiene is growing at an alarming rate, with immediate implications for health and safety.

| 4.7. | The EESC would point out that 90 % of EU exports are carried out by IPR-intensive sectors and that the consequences for the economy and jobs are far from negligible. |
| --- | --- |

4.7.

The EESC would point out that 90 % of EU exports are carried out by IPR-intensive sectors and that the consequences for the economy and jobs are far from negligible.

| 4.8. | The EESC takes note of the new measures for combating international trade law infringements. |
| --- | --- |

4.8.

The EESC takes note of the new measures for combating international trade law infringements.

| 4.9. | The EESC is in favour of the principle of systematic periodical investigations to identify the companies or countries responsible for this sort of behaviour. |
| --- | --- |

4.9.

The EESC is in favour of the principle of systematic periodical investigations to identify the companies or countries responsible for this sort of behaviour.

| 4.10. | The EESC would welcome appropriate measures to sanction offenders who are not inclined to abide by the rules. |
| --- | --- |

4.10.

The EESC would welcome appropriate measures to sanction offenders who are not inclined to abide by the rules.

| 4.11. | The EESC would therefore welcome any policy whose priority was to target offenders who operate on a commercial scale, with the aim of depriving them of revenue gained by means of illegal trade, in total violation of IPR, with the accompanying effect on growth, innovation and jobs. |
| --- | --- |

4.11.

The EESC would therefore welcome any policy whose priority was to target offenders who operate on a commercial scale, with the aim of depriving them of revenue gained by means of illegal trade, in total violation of IPR, with the accompanying effect on growth, innovation and jobs.

| 4.12. | The EESC hopes to this end that the notion of ‘commercial scale’ will be given as precise a definition as possible in order to prevent the sanctions planned from being too limited in their scope, and avoid a considerable increase in implementation times. |
| --- | --- |

4.12.

The EESC hopes to this end that the notion of ‘commercial scale’ will be given as precise a definition as possible in order to prevent the sanctions planned from being too limited in their scope, and avoid a considerable increase in implementation times.

| 4.13. | The EESC stresses the need for solid cooperation with the Member States and notes in particular that certain Member States have taken action to protect and uphold IPR in third countries. |
| --- | --- |

4.13.

The EESC stresses the need for solid cooperation with the Member States and notes in particular that certain Member States have taken action to protect and uphold IPR in third countries.

| 4.14. | Lastly, the EESC believes that, having failed to raise public awareness of the importance of upholding intellectual property rights, the Commission should take new measures to put this right. |
| --- | --- |

4.14.

Lastly, the EESC believes that, having failed to raise public awareness of the importance of upholding intellectual property rights, the Commission should take new measures to put this right.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

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(1)  Brazil, Russia, India, China and South Africa.

1

(2)  Intellectual Property attachés.

2

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| 14.7.2015 | EN | Official Journal of the European Union | C 230/117 |
| --- | --- | --- | --- |

14.7.2015

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Official Journal of the European Union

C 230/117

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Opinion of the European Economic and Social Committee on the ‘Proposal for a Regulation of the European Parliament and of the Council on the import into the Union of agricultural products originating in Turkey (codification)’

(COM(2014) 586 final — 2014/0272 (COD))

(2015/C 230/18)

On 20 October 2014 the European Parliament decided to consult the European Economic and Social Committee, under Article 207(2) of the TFEU, on the

Proposal for a Regulation of the European Parliament and of the Council on the import into the Union of agricultural products originating in Turkey (codification)

COM(2014) 586 final — 2014/0272 (COD).

Since the Committee unreservedly endorses the content of the proposal and feels that it requires no comment on its part, it decided, at its 503rd plenary session of 10 and 11 December 2014 (meeting of 10 December 2014), by 144 votes to 3 with 2 abstentions, to issue an opinion endorsing the proposed text.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

---

| 14.7.2015 | EN | Official Journal of the European Union | C 230/118 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/118

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Opinion of the European Economic and Social Committee on the ‘Proposal for a regulation of the European Parliament and of the Council suspending certain concessions relating to the import into the Union of agricultural products originating in Turkey (Codification)’

(COM(2014) 593 final — 2014/0275 (COD))

(2015/C 230/19)

On 20 October 2014 the European Parliament decided to consult the European Economic and Social Committee, under Article 207(2) of the TFEU, on the

‘Proposal for a regulation of the European Parliament and of the Council suspending certain concessions relating to the import into the Union of agricultural products originating in Turkey (Codification)’

COM(2014) 593 final — 2014/0275 (COD).

Since the Committee unreservedly endorses the content of the proposal and feels that it requires no comment on its part, it decided, at its 503rd plenary session of 10 and 11 December 2014 (meeting of 10 December 2014), by 145 votes to 2 with 5 abstentions, to issue an opinion endorsing the proposed text.

Brussels, 10 December 2014

The President of the European Economic and Social Committee

Henri MALOSSE

---

| 14.7.2015 | EN | Official Journal of the European Union | C 230/119 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/119

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Opinion of the European Economic and Social Committee on the ‘Proposal for a Regulation of the European Parliament and of the Council opening and providing for the administration of certain Union tariff quotas for high-quality beef, and for pigmeat, poultrymeat, wheat and meslin, and brans, sharps and other residues (codification)’

(COM(2014) 594 final — 2014/0276 COD)

(2015/C 230/20)

On 20 October 2014 the European Parliament decided to consult the European Economic and Social Committee, under Article 207(2) of the TFEU, on the

‘Proposal for a Regulation of the European Parliament and of the Council opening and providing for the administration of certain Union tariff quotas for high-quality beef, and for pigmeat, poultrymeat, wheat and meslin, and brans, sharps and other residues (codification)’

COM(2014) 594 final — 2014/0276 COD.

Since the Committee unreservedly endorses the content of the proposal and feels that it requires no comment on its part, it decided, at its 503rd plenary session of 10 and 11 December 2014 (meeting of 10 December 2014), by 150 votes to 2 with 6 abstentions, to issue an opinion endorsing the proposed text.

Brussels, 10 December 2014

The President of the European Economic and Social Committee

Henri MALOSSE

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| 14.7.2015 | EN | Official Journal of the European Union | C 230/120 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/120

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Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council establishing a multiannual plan for the stocks of cod, herring and sprat in the Baltic Sea and the fisheries exploiting those stocks, amending Council Regulation (EC) No 2187/2005 and repealing Council Regulation (EC) No 1098/2007

(COM(2014) 614 final — 2014/0285 COD)

(2015/C 230/21)

On 20 October 2014 the European Parliament and on 27 October 2014 the Council respectively decided to consult the European Economic and Social Committee, under Article 43 (2) of the TFEU, on the

Proposal for a Regulation of the European Parliament and of the Council establishing a multiannual plan for the stocks of cod, herring and sprat in the Baltic Sea and the fisheries exploiting those stocks, amending Council Regulation (EC) No 2187/2005 and repealing Council Regulation (EC) No 1098/2007

COM(2014) 614 final — 2014/0285 COD.

Since the Committee unreservedly endorses the content of the proposal and feels that it requires no comment on its part, it decided, at its 503rd plenary session of 10 and 11 December 2014 (meeting of 10 December 2014), by 152 votes to 1 with 2 abstentions, to issue an opinion endorsing the proposed text.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

---

| 14.7.2015 | EN | Official Journal of the European Union | C 230/121 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/121

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Opinion of the European Economic and Social Committee on the ‘Proposal for a Regulation of the European Parliament and of the Council on the safeguard measures provided for in the Agreement between the European Economic Community and the Republic of Iceland (codification)’

(COM(2014) 308 final — 2014/0160 (COD))

(2015/C 230/22)

On 15 September 2014 the European Parliament decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

‘Proposal for a Regulation of the European Parliament and of the Council on the safeguard measures provided for in the Agreement between the European Economic Community and the Republic of Iceland (codification)’

COM(2014) 308 final — 2014/0160 (COD).

Since the Committee unreservedly endorses the content of the proposal and feels that it requires no comment on its part, it decided, at its 503rd plenary session of 10 and 11 December 2014 (meeting of 10 December 2014), by 157 votes to 1 with 3 abstentions, to issue an opinion endorsing the proposed text.

Brussels, 10 December 2014

The President of the European Economic and Social Committee

Henri MALOSSE

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| 14.7.2015 | EN | Official Journal of the European Union | C 230/122 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/122

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Opinion of the European Economic and Social Committee on the ‘Proposal for a Regulation of the European Parliament and of the Council on common rules for imports (codification)’

(COM(2014) 322 final — 2014/0167 (COD))

(2015/C 230/23)

On 15 September 2014 the European Parliament decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

‘Proposal for a Regulation of the European Parliament and of the Council on common rules for exports (codification)’

COM(2014) 322 final — 2014/0167 (COD).

Since the Committee unreservedly endorses the proposal and feels that it requires no comment on its part, it decided, at its 503rd plenary session of 10 and 11 December 2014 (meeting of 10 December 2014), by 147 votes to 1 with 4 abstentions, to issue an opinion endorsing the proposed text.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

---

| 14.7.2015 | EN | Official Journal of the European Union | C 230/123 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/123

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Opinion of the European Economic and Social Committee on the ‘Proposal for a Regulation of the European Parliament and of the Council on common rules for imports (codification)’

(COM(2014) 321 final — 2014/0166 (COD))

(2015/C 230/24)

On 15 September 2014 the European Parliament decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

‘Proposal for a Regulation of the European Parliament and of the Council on common rules for imports (codification)’

COM(2014) 321 final — 2014/0166 (COD).

Since the Committee unreservedly endorses the proposal and feels that it requires no comment on its part, it decided, at its 503rd plenary session of 10 and 11 December 2014 (meeting of 10 December 2014), by 150 votes to 1 with 5 abstentions, to issue an opinion endorsing the proposed text.

Brussels, 10 December 2014

The President of the European Economic and Social Committee

Henri MALOSSE

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| 14.7.2015 | EN | Official Journal of the European Union | C 230/124 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/124

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Opinion of the European Economic and Social Committee on the ‘Proposal for a Regulation of the European Parliament and of the Council on common rules for imports from certain third countries (recast)’

COM(2014) 323 final — 2014/0168 (COD)

(2015/C 230/25)

On 15 September 2014 and 8 October 2014 respectively, the European Parliament and the Council decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

‘Proposal for a Regulation of the European Parliament and of the Council on common rules for imports from certain third countries (recast)’

COM(2014) 323 final — 2014/0168 (COD).

Since the Committee unreservedly endorses the proposal and feels that it requires no comment on its part, it decided, at its 503rd plenary session of 10 and 11 December 2014 (meeting of 10 December 2014), by 145 votes to 3 with 7 abstentions, to issue an opinion endorsing the proposed text.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

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| 14.7.2015 | EN | Official Journal of the European Union | C 230/125 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/125

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Opinion of the European Economic and Social Committee on the ‘Proposal for a Regulation of the European Parliament and of the Council on common rules for imports of textile products from certain third countries not covered by bilateral agreements, protocols or other arrangements, or by other specific Union import rules (recast)’

COM(2014) 345 final — 2014/0177 (COD)

(2015/C 230/26)

On 8 October 2014, the Council decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

‘Proposal for a Regulation of the European Parliament and of the Council on common rules for imports of textile products from certain third countries not covered by bilateral agreements, protocols or other arrangements, or by other specific Union import rules (recast)’

COM(2014) 345 final — 2014/0177 (COD).

Since the Committee unreservedly endorses the proposal and feels that it requires no comment on its part, it decided, at its 503rd plenary session of 10 and 11 December 2014 (meeting of 10 December 2014), by 151 votes to 2 with 5 abstentions, to issue an opinion endorsing the proposed text.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

---

| 14.7.2015 | EN | Official Journal of the European Union | C 230/126 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/126

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Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council laying down Union procedures in the field of the common commercial policy in order to ensure the exercise of the Union’s rights under international trade rules, in particular those established under the auspices of the World Trade Organization (codification)

COM(2014) 341 final — 2014/0174 (COD)

(2015/C 230/27)

On 15 September 2014 the European Parliament decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

Proposal for a Regulation of the European Parliament and of the Council laying down Union procedures in the field of the common commercial policy in order to ensure the exercise of the Union’s rights under international trade rules, in particular those established under the auspices of the World Trade Organization (codification)

COM(2014) 341 final — 2014/0174 (COD).

Since the Committee unreservedly endorses the proposal and feels that it requires no comment on its part, it decided, at its 503rd plenary session of 10 and 11 December 2014 (meeting of 10 December), by 150 votes to 3 with 1 abstention, to issue an opinion endorsing the proposed text.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

---

| 14.7.2015 | EN | Official Journal of the European Union | C 230/127 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/127

---

Opinion of the European Economic and Social Committee on the ‘Proposal for a Regulation of the European Parliament and of the Council on the measures that the Union may take following a report adopted by the WTO Dispute Settlement Body concerning anti-dumping and anti-subsidy matters (codification)’

COM(2014) 317 final — 2014/0163 (COD)

(2015/C 230/28)

On 20 October 2014, the European Parliament decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

Proposal for a Regulation of the European Parliament and of the Council on the measures that the Union may take following a report adopted by the WTO Dispute Settlement Body concerning anti-dumping and anti-subsidy matters (codification)

COM(2014) 317 final — 2014/0163 (COD).

Since the Committee unreservedly endorses the proposal and feels that it requires no comment on its part, it decided, at its 503rd plenary session of 10 and 11 December 2014 (meeting of 10 December), by 148 votes to 3 with 6 abstentions, to issue an opinion endorsing the proposed text.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

---

| 14.7.2015 | EN | Official Journal of the European Union | C 230/128 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/128

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Opinion of the European Economic and Social Committee on the ‘Proposal for a Regulation of the European Parliament and of the Council on certain procedures for applying the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Montenegro, of the other part (codification)’

COM(2014) 374 final — 2014/0190 (COD)

(2015/C 230/29)

On 20 October 2014, the European Parliament decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

Proposal for a Regulation of the European Parliament and of the Council on certain procedures for applying the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Montenegro, of the other part (codification)

COM(2014) 374 final — 2014/0190 (COD).

Since the Committee unreservedly endorses the proposal and feels that it requires no comment on its part, it decided, at its 503rd plenary session of 10 and 11 December 2014 (meeting of 10 December), by 152 votes to 1 with 6 abstentions, to issue an opinion endorsing the proposed text.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

---

| 14.7.2015 | EN | Official Journal of the European Union | C 230/129 |
| --- | --- | --- | --- |

14.7.2015

EN

Official Journal of the European Union

C 230/129

---

Opinion of the European Economic and Social Committee on the ‘Proposal for a Regulation of the European Parliament and of the Council on protection against subsidised imports from countries not members of the European Union (codification)’

COM(2014) 660 final — 2014/0305 (COD)

(2015/C 230/30)

On 12 November 2014, the European Parliament decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

Proposal for a Regulation of the European Parliament and of the Council on protection against subsidised imports from countries not members of the European Union (codification)

COM(2014) 660 final — 2014/0305 (COD).

Since the Committee unreservedly endorses the proposal and feels that it requires no comment on its part, it decided, at its 503rd plenary session of 10 and 11 December 2014 (meeting of 10 December), by 154 votes to 3 with 5 abstentions, to issue an opinion endorsing the proposed text.

Brussels, 10 December 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

---