# Official Journal C 356/2013

| | ISSN 1977-091X
  doi:10.3000/1977091X.C_2013.356.eng |
| --- | --- |
| Official Journal
  of the European Union | C 356 |
| | |
| English edition | Information and Notices | Volume 565 December 2013 |

ISSN 1977-091X

doi:10.3000/1977091X.C_2013.356.eng

Official Journal

of the European Union

C 356

English edition

Information and Notices

Volume 565 December 2013

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| Notice No | Contents | page |
| --- | --- | --- |
| | I   Resolutions, recommendations and opinions |
| | RESOLUTIONS |
| | Committee of the Regions |
| | 103rd plenary session held on 7-9 October 2013 |
| 2013/C 356/01 | Resolution of the Committee of the Regions COP 19 UNFCCC – Advancing the International Climate Change Agenda | 1 |
| | OPINIONS |
| | Committee of the Regions |
| | 103rd plenary session held on 7-9 October 2013 |
| 2013/C 356/02 | Opinion of the Committee of the Regions on Recommendations for better spending | 3 |
| 2013/C 356/03 | Opinion of the Committee of the Regions on Urban-rural partnership and governance | 9 |
| 2013/C 356/04 | Opinion of the Committee of the Regions on The Draft EU Budget for 2014 | 15 |
| 2013/C 356/05 | Opinion of the Committee of the Regions on Local and regional authorities perspective on shale/tight gas and oil (unconventional hydrocarbons) | 23 |
| 2013/C 356/06 | Opinion of the Committee of the Regions — Green Paper on a European strategy on plastic waste in the environment | 30 |
| 2013/C 356/07 | Opinion of the Committee of the Regions on EU Strategy for Adaptation to Climate Change | 37 |
| 2013/C 356/08 | Opinion of the Committee of the Regions — Green infrastructure — enhancing Europe’s natural capital | 43 |
| 2013/C 356/09 | Opinion of the Committee of the Regions EU space industrial policy | 49 |
| 2013/C 356/10 | Opinion of the Committee of the Regions on CARS 2020: action plan for a competitive and sustainable automotive industry in Europe | 55 |
| 2013/C 356/11 | Opinion of the Committee of the Regions — The EU Social Investment Package | 60 |
| 2013/C 356/12 | Opinion of the Committee of the Regions on Entrepreneurship 2020 Action Plan | 68 |
| 2013/C 356/13 | Opinion of the Committee of the Regions — Green Paper on the long-term financing of the European economy | 75 |
| 2013/C 356/14 | Opinion of the Committee of the Regions on The sustainability of rural areas | 80 |
| 2013/C 356/15 | Opinion of the Committee of the Regions — Empowering local authorities in partner countries for enhanced governance and more effective development outcomes | 86 |

Notice No

Contents

page

I   Resolutions, recommendations and opinions

RESOLUTIONS

Committee of the Regions

103rd plenary session held on 7-9 October 2013

2013/C 356/01

Resolution of the Committee of the Regions COP 19 UNFCCC – Advancing the International Climate Change Agenda

1

OPINIONS

Committee of the Regions

103rd plenary session held on 7-9 October 2013

2013/C 356/02

Opinion of the Committee of the Regions on Recommendations for better spending

3

2013/C 356/03

Opinion of the Committee of the Regions on Urban-rural partnership and governance

9

2013/C 356/04

Opinion of the Committee of the Regions on The Draft EU Budget for 2014

15

2013/C 356/05

Opinion of the Committee of the Regions on Local and regional authorities perspective on shale/tight gas and oil (unconventional hydrocarbons)

23

2013/C 356/06

Opinion of the Committee of the Regions — Green Paper on a European strategy on plastic waste in the environment

30

2013/C 356/07

Opinion of the Committee of the Regions on EU Strategy for Adaptation to Climate Change

37

2013/C 356/08

Opinion of the Committee of the Regions — Green infrastructure — enhancing Europe’s natural capital

43

2013/C 356/09

Opinion of the Committee of the Regions EU space industrial policy

49

2013/C 356/10

Opinion of the Committee of the Regions on CARS 2020: action plan for a competitive and sustainable automotive industry in Europe

55

2013/C 356/11

Opinion of the Committee of the Regions — The EU Social Investment Package

60

2013/C 356/12

Opinion of the Committee of the Regions on Entrepreneurship 2020 Action Plan

68

2013/C 356/13

Opinion of the Committee of the Regions — Green Paper on the long-term financing of the European economy

75

2013/C 356/14

Opinion of the Committee of the Regions on The sustainability of rural areas

80

2013/C 356/15

Opinion of the Committee of the Regions — Empowering local authorities in partner countries for enhanced governance and more effective development outcomes

86

| | III   Preparatory acts |
| --- | --- |
| | COMMITTEE OF THE REGIONS |
| | 103rd plenary session held on 7-9 October 2013 |
| 2013/C 356/16 | Opinion of the Committee of the Regions — The fourth railway package | 92 |
| 2013/C 356/17 | Opinion of the Committee of the Regions – Guidelines for Trans-European Telecommunications Networks | 116 |
| 2013/C 356/18 | Opinion of the Committee of the Regions on Proposed directive for maritime spatial planning and integrated coastal management | 124 |

III   Preparatory acts

COMMITTEE OF THE REGIONS

103rd plenary session held on 7-9 October 2013

2013/C 356/16

Opinion of the Committee of the Regions — The fourth railway package

92

2013/C 356/17

Opinion of the Committee of the Regions – Guidelines for Trans-European Telecommunications Networks

116

2013/C 356/18

Opinion of the Committee of the Regions on Proposed directive for maritime spatial planning and integrated coastal management

124

| EN | |
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EN

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I Resolutions, recommendations and opinions

RESOLUTIONS

Committee of the Regions

103rd plenary session held on 7-9 October 2013

| 5.12.2013 | EN | Official Journal of the European Union | C 356/1 |
| --- | --- | --- | --- |

5.12.2013

EN

Official Journal of the European Union

C 356/1

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Resolution of the Committee of the Regions COP 19 UNFCCC – Advancing the International Climate Change Agenda

2013/C 356/01

THE COMMITTEE OF THE REGIONS

| 1. | declares its full support to the joint EU position and calls on all the Parties involved in COP 19 to take the necessary steps towards an international legally binding climate change agreement aimed at limiting global warming below 2 degree Celsius to be concluded by 2015, and implemented by 2020; |
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1.

declares its full support to the joint EU position and calls on all the Parties involved in COP 19 to take the necessary steps towards an international legally binding climate change agreement aimed at limiting global warming below 2 degree Celsius to be concluded by 2015, and implemented by 2020;

| 2. | calls on negotiators to rediscover a sense of urgency and to move forward on raising ambition in the new agreement; |
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2.

calls on negotiators to rediscover a sense of urgency and to move forward on raising ambition in the new agreement;

| 3. | insists that national governments and the EU will only be able to meet their targets with the active involvement of the local and regional authorities which are most directly affected by the impact of climate change and are responsible in large parts for policy implementation; therefore also underlines the need for ‘spatially resolved’ data on the impact of climate change and adaptation strategies; |
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3.

insists that national governments and the EU will only be able to meet their targets with the active involvement of the local and regional authorities which are most directly affected by the impact of climate change and are responsible in large parts for policy implementation; therefore also underlines the need for ‘spatially resolved’ data on the impact of climate change and adaptation strategies;

| 4. | calls for mainstreaming of climate change action in all sectors and budgets at all levels of governance and points out that many sectors in need of reform, including energy, agriculture, buildings, spatial planning, waste and transport, fall in the remits of local or regional authorities; |
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4.

calls for mainstreaming of climate change action in all sectors and budgets at all levels of governance and points out that many sectors in need of reform, including energy, agriculture, buildings, spatial planning, waste and transport, fall in the remits of local or regional authorities;

| 5. | therefore asks international authorities and the EU delegation to involve local and regional authorities prominently in the international climate change negotiations and implementation processes, and to recognise their potential role in facilitating the negotiations; |
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5.

therefore asks international authorities and the EU delegation to involve local and regional authorities prominently in the international climate change negotiations and implementation processes, and to recognise their potential role in facilitating the negotiations;

| 6. | welcomes the UN Secretary-General's proposal to hold a world leaders' climate summit in September 2014; believes that the involvement of local and regional authorities would be necessary for an effective summit; |
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6.

welcomes the UN Secretary-General's proposal to hold a world leaders' climate summit in September 2014; believes that the involvement of local and regional authorities would be necessary for an effective summit;

| 7. | draws attention to the fact that the atmospheric carbon dioxide concentration is now surpassing the critical threshold of 400 ppm and is also very concerned by the so called ‘gigatonne gap’ between measures negotiators agreed to implement and measures which still need to be adopted in order to keep global warming below 2 degree Celsius; |
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7.

draws attention to the fact that the atmospheric carbon dioxide concentration is now surpassing the critical threshold of 400 ppm and is also very concerned by the so called ‘gigatonne gap’ between measures negotiators agreed to implement and measures which still need to be adopted in order to keep global warming below 2 degree Celsius;

| 8. | recognises the uncertainties associated with climate modelling and delivering the reductions and therefore advocates a precautionary approach to adaptation policy that anticipates the impact of more than 2 degrees temperature increase; |
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8.

recognises the uncertainties associated with climate modelling and delivering the reductions and therefore advocates a precautionary approach to adaptation policy that anticipates the impact of more than 2 degrees temperature increase;

| 9. | fully supports the approach that the expected 2015 UN agreement on climate change should cover not only mitigation but also adaptation, and underlines the importance of treating them with the same level of priority; |
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9.

fully supports the approach that the expected 2015 UN agreement on climate change should cover not only mitigation but also adaptation, and underlines the importance of treating them with the same level of priority;

| 10. | urges negotiators to honour the commitment of USD 100 billion to the Green Climate Fund and to operationalise the concept of ‘loss and damage’ as agreed during the Conference of the Parties in Doha in 2012; |
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10.

urges negotiators to honour the commitment of USD 100 billion to the Green Climate Fund and to operationalise the concept of ‘loss and damage’ as agreed during the Conference of the Parties in Doha in 2012;

| 11. | welcomes and encourages further progress on forestry, notably on methodological aspects of the UN programme on Reducing Emissions from Deforestation and Forest Degradation (REDD+); also notes that financing possibilities in this domain should be increased accordingly; |
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11.

welcomes and encourages further progress on forestry, notably on methodological aspects of the UN programme on Reducing Emissions from Deforestation and Forest Degradation (REDD+); also notes that financing possibilities in this domain should be increased accordingly;

| 12. | stresses the essential role of the Land use, land-use change and forestry (LULUCF) sector in mitigating the effects of climate change but insists on the necessity to take into account rural sustainable development and food security, particularly in developing countries; |
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12.

stresses the essential role of the Land use, land-use change and forestry (LULUCF) sector in mitigating the effects of climate change but insists on the necessity to take into account rural sustainable development and food security, particularly in developing countries;

| 13. | reiterates that building resilience to climate change, in particular among the most vulnerable regions of the world and among the most vulnerable members of society, is crucial if the agreement is to be equitable; |
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13.

reiterates that building resilience to climate change, in particular among the most vulnerable regions of the world and among the most vulnerable members of society, is crucial if the agreement is to be equitable;

| 14. | asks for future emissions reductions and all other mitigation measures to be distributed fairly across the whole of the international community, with due consideration to the different capabilities and starting positions of countries and regions; |
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14.

asks for future emissions reductions and all other mitigation measures to be distributed fairly across the whole of the international community, with due consideration to the different capabilities and starting positions of countries and regions;

| 15. | in this context, calls also for a comprehensive structural reform of the EU Emission Trading Scheme; |
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15.

in this context, calls also for a comprehensive structural reform of the EU Emission Trading Scheme;

| 16. | draws attention to the urgent need to encourage synergies between adaptation and mitigation activities by sharing lessons learnt and good practices, and by promoting research and innovation and policy coordination; |
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16.

draws attention to the urgent need to encourage synergies between adaptation and mitigation activities by sharing lessons learnt and good practices, and by promoting research and innovation and policy coordination;

| 17. | stresses that the EU has demonstrated that the de-coupling of CO2 emissions from GDP-growth is possible; reiterates that the EU must continue to lead by example and implement ambitious and binding targets such as those for the reduction of CO2 emissions, renewable energy and energy efficiency; |
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17.

stresses that the EU has demonstrated that the de-coupling of CO2 emissions from GDP-growth is possible; reiterates that the EU must continue to lead by example and implement ambitious and binding targets such as those for the reduction of CO2 emissions, renewable energy and energy efficiency;

| 18. | underlines the efforts of cities and regions across Europe that have adopted local or regional climate and energy strategies or initiatives with the power to raise ambition at national level such as the European Green Capital scheme or the Covenant of Mayors, whose signatories commit themselves to reduce the CO2 emissions by more than the 20 % by the year 2020; |
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18.

underlines the efforts of cities and regions across Europe that have adopted local or regional climate and energy strategies or initiatives with the power to raise ambition at national level such as the European Green Capital scheme or the Covenant of Mayors, whose signatories commit themselves to reduce the CO2 emissions by more than the 20 % by the year 2020;

| 19. | calls for the efforts of municipalities and regions to be recognised and made part of the MRV (measurable, reportable and verifiable) accounting system; |
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19.

calls for the efforts of municipalities and regions to be recognised and made part of the MRV (measurable, reportable and verifiable) accounting system;

| 20. | calls for more information sharing worldwide and confirms its commitment to the Memorandum of Understanding it has signed with the United Nations Environment Programme (UNEP) to promote synergies between the different levels of governance and improve the implementation of multilateral environmental agreements; reiterates in this context also its commitment to the Memorandum of Understanding signed with the US Conference of Mayors and to the future agreement with the mayors of China; |
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20.

calls for more information sharing worldwide and confirms its commitment to the Memorandum of Understanding it has signed with the United Nations Environment Programme (UNEP) to promote synergies between the different levels of governance and improve the implementation of multilateral environmental agreements; reiterates in this context also its commitment to the Memorandum of Understanding signed with the US Conference of Mayors and to the future agreement with the mayors of China;

| 21. | calls for future EU strategies to use the potential of multilateral decentralised cooperation with third countries, and draws attention to the specific instruments it has developed to facilitate this cooperation; |
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21.

calls for future EU strategies to use the potential of multilateral decentralised cooperation with third countries, and draws attention to the specific instruments it has developed to facilitate this cooperation;

| 22. | would like ‘climate criteria’ to be fully taken into account in the various EU funding instruments, including European development policy (EDP); |
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22.

would like ‘climate criteria’ to be fully taken into account in the various EU funding instruments, including European development policy (EDP);

| 23. | draws attention to the fact that subnational governments and local authorities have been given increased recognition in the Cancun Agreement, and reiterates its call for a multi-level governance approach in global environmental policy; therefore calls for a clear commitment from the UNFCCC parties to involve and support subnational governments and local authorities in the implementation of UNFCCC decisions, following the example of Decision X/22 of the Convention on Biological Diversity; |
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23.

draws attention to the fact that subnational governments and local authorities have been given increased recognition in the Cancun Agreement, and reiterates its call for a multi-level governance approach in global environmental policy; therefore calls for a clear commitment from the UNFCCC parties to involve and support subnational governments and local authorities in the implementation of UNFCCC decisions, following the example of Decision X/22 of the Convention on Biological Diversity;

| 24. | instructs the President of the Committee of the Regions to submit this resolution to the President of the European Parliament, the President of the European Council, the President of the European Commission, the Lithuanian Presidency of the EU and the Secretariat of the UNFCCC. |
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24.

instructs the President of the Committee of the Regions to submit this resolution to the President of the European Parliament, the President of the European Council, the President of the European Commission, the Lithuanian Presidency of the EU and the Secretariat of the UNFCCC.

Brussels, 9 October 2013.

The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO

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OPINIONS

Committee of the Regions

103rd plenary session held on 7-9 October 2013

| 5.12.2013 | EN | Official Journal of the European Union | C 356/3 |
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5.12.2013

EN

Official Journal of the European Union

C 356/3

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Opinion of the Committee of the Regions on ‘Recommendations for better spending’

2013/C 356/02

THE COMMITTEE OF THE REGIONS

| — | stresses the importance of local and regional budgets as a proportion of public spending in the European Union. In this connection, points out that cohesion policy funding should be seen as investment and not simply as public spending; |
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—

stresses the importance of local and regional budgets as a proportion of public spending in the European Union. In this connection, points out that cohesion policy funding should be seen as investment and not simply as public spending;

| — | considers that, in order to ensure better spending, it is not enough simply to increase the effectiveness and efficiency of the allocation of resources; it is also necessary to take account of the territorial differences and obstacles which can impede growth in certain regions, analyse the effect of these on spending and seek ways of reducing the impact on cohesion policy; |
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—

considers that, in order to ensure better spending, it is not enough simply to increase the effectiveness and efficiency of the allocation of resources; it is also necessary to take account of the territorial differences and obstacles which can impede growth in certain regions, analyse the effect of these on spending and seek ways of reducing the impact on cohesion policy;

| — | stresses that multilevel governance and cooperation between various levels of government are essential for improved implementation of the funds with a view to achieving the objectives of the 2020 strategy; |
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—

stresses that multilevel governance and cooperation between various levels of government are essential for improved implementation of the funds with a view to achieving the objectives of the 2020 strategy;

| — | reiterates that ex ante conditionalities should be restricted to areas directly related to the implementation of cohesion policy and that it is important to avoid overloading cohesion policy with responsibilities which are not its concern and which merely increase bureaucracy; |
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—

reiterates that ex ante conditionalities should be restricted to areas directly related to the implementation of cohesion policy and that it is important to avoid overloading cohesion policy with responsibilities which are not its concern and which merely increase bureaucracy;

| — | reiterates its firm opposition to macroeconomic conditionality along the position of the European Parliament; |
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—

reiterates its firm opposition to macroeconomic conditionality along the position of the European Parliament;

| — | regrets the Council's insistence on the performance reserve and reiterates instead its proposal for the establishment of a flexibility reserve financed from the automatic decommitment of resources; |
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—

regrets the Council's insistence on the performance reserve and reiterates instead its proposal for the establishment of a flexibility reserve financed from the automatic decommitment of resources;

| — | suggests as possible mechanisms for simplifying management: the standardisation of procedures and documents, the use of common IT tools and the effective establishment of one-stop shops, thus avoiding interdepartmental formalities within the same administration. |
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—

suggests as possible mechanisms for simplifying management: the standardisation of procedures and documents, the use of common IT tools and the effective establishment of one-stop shops, thus avoiding interdepartmental formalities within the same administration.

| Rapporteur | Alberto NUÑEZ FEIJÓO (ES/EPP), President of the Autonomous Community of Galicia |
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Rapporteur

Alberto NUÑEZ FEIJÓO (ES/EPP), President of the Autonomous Community of Galicia

Reference document

I.   POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS

Role of cohesion policy and of local and regional budgets

| 1. | stresses the important role which cohesion policy has played up until now in the process of convergence between the regions of the European Union and highlights the role which it will continue to have in the future as a basis for creating jobs, promoting economic growth and tackling social and territorial cohesion, thus helping to achieve the objectives of Europe 2020. In fact the Structural Funds represent more than 60 % of all public investment in six Member States and between 30 % and 60 % of public investment in seven Member States; |
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1.

stresses the important role which cohesion policy has played up until now in the process of convergence between the regions of the European Union and highlights the role which it will continue to have in the future as a basis for creating jobs, promoting economic growth and tackling social and territorial cohesion, thus helping to achieve the objectives of Europe 2020. In fact the Structural Funds represent more than 60 % of all public investment in six Member States and between 30 % and 60 % of public investment in seven Member States;

| 2. | stresses the importance of local and regional budgets as a proportion of public spending in the European Union, which represented 16,7 % of GDP in 2011, making up 34 % of total public spending in the European Union, with direct investment playing a major part in these budgets, which is a key factor in rapid economic recovery. In this connection, points out that cohesion policy funding should be seen as investment and not simply as public spending; |
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2.

stresses the importance of local and regional budgets as a proportion of public spending in the European Union, which represented 16,7 % of GDP in 2011, making up 34 % of total public spending in the European Union, with direct investment playing a major part in these budgets, which is a key factor in rapid economic recovery. In this connection, points out that cohesion policy funding should be seen as investment and not simply as public spending;

General factors which can contribute to better spending

| 3. | considers that, in order to ensure better spending, it is not enough simply to increase the effectiveness and efficiency of the allocation of resources; it is also necessary to take account of the territorial differences and obstacles which can impede growth in certain regions, analyse the effect of these on spending and seek ways of reducing the impact on cohesion policy; |
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3.

considers that, in order to ensure better spending, it is not enough simply to increase the effectiveness and efficiency of the allocation of resources; it is also necessary to take account of the territorial differences and obstacles which can impede growth in certain regions, analyse the effect of these on spending and seek ways of reducing the impact on cohesion policy;

| 4. | recommends concentrating the resources provided by European funding on the areas of greatest strategic importance in each region, particularly knowledge-based areas, education, research and innovation, which exert a leverage effect on the rest of the economy of the regions; |
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4.

recommends concentrating the resources provided by European funding on the areas of greatest strategic importance in each region, particularly knowledge-based areas, education, research and innovation, which exert a leverage effect on the rest of the economy of the regions;

| 5. | believes that public investment is a shared responsibility across all levels of government and welcomes the draft recommendation on basic principles on effective public investment proposed by the OECD (1); calls for these principles to be adopted at EU level and proposes regular monitoring of the implementation of these principles in the context of the Committee of the Regions' Multilevel Governance Scoreboard. |
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5.

believes that public investment is a shared responsibility across all levels of government and welcomes the draft recommendation on basic principles on effective public investment proposed by the OECD (1); calls for these principles to be adopted at EU level and proposes regular monitoring of the implementation of these principles in the context of the Committee of the Regions' Multilevel Governance Scoreboard.

Coordination of spending

| 6. | considers the integrated approach of the Common Strategic Framework for the new programming period to be positive; this brings together all the resources assigned to regional purposes, although it highlights the problem of coordination between activities, given that the thematic objectives set out in the proposal for a common provisions regulation differ from the six priorities established for the EAFRD and the EMFF; |
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6.

considers the integrated approach of the Common Strategic Framework for the new programming period to be positive; this brings together all the resources assigned to regional purposes, although it highlights the problem of coordination between activities, given that the thematic objectives set out in the proposal for a common provisions regulation differ from the six priorities established for the EAFRD and the EMFF;

| 7. | reiterates the connection between cohesion policy and the 2020 strategy and stresses that the global objectives of strengthening competitiveness and employment (sustainable growth, employment and welfare) remain fully valid. In this connection the impetus given by cohesion policy to R+D+i and knowledge is of fundamental importance; it has made it possible to develop innovative projects, while increasing Community added value and stressing the importance of the coordination of cohesion policy programmes and financing instruments with innovation and research policies; |
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7.

reiterates the connection between cohesion policy and the 2020 strategy and stresses that the global objectives of strengthening competitiveness and employment (sustainable growth, employment and welfare) remain fully valid. In this connection the impetus given by cohesion policy to R+D+i and knowledge is of fundamental importance; it has made it possible to develop innovative projects, while increasing Community added value and stressing the importance of the coordination of cohesion policy programmes and financing instruments with innovation and research policies;

| 8. | highlights the importance of following up the results obtained by the application of cohesion policy in order to measure is impact. Every activity should be quantifiable and analysed according to outcome criteria in order to assess its contribution to regional and local development. Moreover, an approach based on objectives rather than on the eligibility requirements for funding enables regions to choose instruments and measures better and to adapt them to their needs; |
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8.

highlights the importance of following up the results obtained by the application of cohesion policy in order to measure is impact. Every activity should be quantifiable and analysed according to outcome criteria in order to assess its contribution to regional and local development. Moreover, an approach based on objectives rather than on the eligibility requirements for funding enables regions to choose instruments and measures better and to adapt them to their needs;

Governance and decentralisation

| 9. | stresses that multilevel governance and cooperation between various levels of government are essential for improved implementation of the funds with a view to achieving the objectives of the 2020 strategy. In this connection, welcomes the fact that the Common Strategic Framework will include multilevel governance and the partnership principle among its horizontal principles, and commits itself to comment on the Commission's draft proposal for a European code of conduct provided for in Article 5(3) of the Common Provisions Regulation in order to promote the active participation of local and regional authorities, economic and social partners and bodies representing civil society in all stages of the programming cycle; |
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9.

stresses that multilevel governance and cooperation between various levels of government are essential for improved implementation of the funds with a view to achieving the objectives of the 2020 strategy. In this connection, welcomes the fact that the Common Strategic Framework will include multilevel governance and the partnership principle among its horizontal principles, and commits itself to comment on the Commission's draft proposal for a European code of conduct provided for in Article 5(3) of the Common Provisions Regulation in order to promote the active participation of local and regional authorities, economic and social partners and bodies representing civil society in all stages of the programming cycle;

| 10. | points out that greater decentralisation in the tasks of decentralised planning and implementation is much more efficient, in terms of both costs and quality of services, because it is closer to the grassroots level. It also offers major advantages in identifying needs and demand as well as in the design of policies intended to boost sustainable and competitive growth while at the same time strengthening autonomy and local democracy; |
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10.

points out that greater decentralisation in the tasks of decentralised planning and implementation is much more efficient, in terms of both costs and quality of services, because it is closer to the grassroots level. It also offers major advantages in identifying needs and demand as well as in the design of policies intended to boost sustainable and competitive growth while at the same time strengthening autonomy and local democracy;

| 11. | considers that decentralisation through regional and local institutions plays a crucial role in reducing existing economic and social disparities between Europe's regions, thus helping to mitigate the negative impact of the rural exodus from poorer regions to major urban centres, as well as emigration, which weakens the labour market in some Member States; points out that advance long term and annual planning and designing of investments in the regions is essential to better targeted and effective investments. A Bottom up approach is critical to better planning of countries' investment programmes and national Development plans; |
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11.

considers that decentralisation through regional and local institutions plays a crucial role in reducing existing economic and social disparities between Europe's regions, thus helping to mitigate the negative impact of the rural exodus from poorer regions to major urban centres, as well as emigration, which weakens the labour market in some Member States; points out that advance long term and annual planning and designing of investments in the regions is essential to better targeted and effective investments. A Bottom up approach is critical to better planning of countries' investment programmes and national Development plans;

| 12. | points out that the added value of spending in the European Union depends on specific obstacles encountered in each region and that, consequently, it is impossible to design a common strategy applicable to all regions, which in turn requires a degree of flexibility in the framework of rules for the programming period; |
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12.

points out that the added value of spending in the European Union depends on specific obstacles encountered in each region and that, consequently, it is impossible to design a common strategy applicable to all regions, which in turn requires a degree of flexibility in the framework of rules for the programming period;

| 13. | considers that, in order to achieve the objectives pursued, independently of differences between regions, significant participation by local and regional authorities is essential for the implementation of the funds in the period 2014-2020, from the design of the framework of rules to the implementation of activities; |
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13.

considers that, in order to achieve the objectives pursued, independently of differences between regions, significant participation by local and regional authorities is essential for the implementation of the funds in the period 2014-2020, from the design of the framework of rules to the implementation of activities;

| 14. | recommends decentralising operational management at regional and local level, which will increase coordination and complementarity between funds and ensure a bottom-up approach based on the needs and characteristics of each territory. Moreover, this decentralisation will assign to the local and regional authorities entrusted with implementation the responsibilities incumbent on each operational programme authority; |
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14.

recommends decentralising operational management at regional and local level, which will increase coordination and complementarity between funds and ensure a bottom-up approach based on the needs and characteristics of each territory. Moreover, this decentralisation will assign to the local and regional authorities entrusted with implementation the responsibilities incumbent on each operational programme authority;

Application of the subsidiarity principle

| 15. | stresses that the Lisbon Treaty strengthened the subsidiarity principle and stresses again that the cohesion policy approach based on subsidiarity needs to be retained and further developed, so that the role of local and regional authorities in all phases of the life cycle of structural activities is strengthened; |
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15.

stresses that the Lisbon Treaty strengthened the subsidiarity principle and stresses again that the cohesion policy approach based on subsidiarity needs to be retained and further developed, so that the role of local and regional authorities in all phases of the life cycle of structural activities is strengthened;

| 16. | advocates the use of the subsidiarity principle in conjunction with proportionality, and not just in the interests of greater efficiency: for example, the current decentralised system for the design of operational programmes should be maintained or even strengthened, in order to give an impetus to regional and local autonomy in the practical implementation of European cohesion policy; this will result in planning which is more closely geared to the needs and priorities of each region; |
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16.

advocates the use of the subsidiarity principle in conjunction with proportionality, and not just in the interests of greater efficiency: for example, the current decentralised system for the design of operational programmes should be maintained or even strengthened, in order to give an impetus to regional and local autonomy in the practical implementation of European cohesion policy; this will result in planning which is more closely geared to the needs and priorities of each region;

| 17. | considers that the regional and local authorities should assume the maximum level of powers in programmes and activities developed in each region, to achieve a truly integrated place-based approach. The regions are the most suitable partners for those responsible for the funds at EU level and can interconnect European, national, regional and local initiatives; |
| --- | --- |

17.

considers that the regional and local authorities should assume the maximum level of powers in programmes and activities developed in each region, to achieve a truly integrated place-based approach. The regions are the most suitable partners for those responsible for the funds at EU level and can interconnect European, national, regional and local initiatives;

Conditionality and cohesion policy

| 18. | reiterates that ex ante conditionalities should be restricted to areas directly related to the implementation of cohesion policy and that it is important to avoid overloading cohesion policy with responsibilities which are not its concern and which merely increase bureaucracy; |
| --- | --- |

18.

reiterates that ex ante conditionalities should be restricted to areas directly related to the implementation of cohesion policy and that it is important to avoid overloading cohesion policy with responsibilities which are not its concern and which merely increase bureaucracy;

| 19. | recalls the CoR position on the draft General Regulation for the 2014-2020 cohesion programming period which stressed out that regions and local authorities are in most cases not responsible for the achievement of economic governance objectives, which means that the application of macroeconomic conditionality at national level would make cohesion policy less fair while at the same time giving rise to uncertainty as to the financing of new projects in the future; |
| --- | --- |

19.

recalls the CoR position on the draft General Regulation for the 2014-2020 cohesion programming period which stressed out that regions and local authorities are in most cases not responsible for the achievement of economic governance objectives, which means that the application of macroeconomic conditionality at national level would make cohesion policy less fair while at the same time giving rise to uncertainty as to the financing of new projects in the future;

| 20. | Reiterates its firm opposition to macroeconomic conditionality along the position of the European Parliament; |
| --- | --- |

20.

Reiterates its firm opposition to macroeconomic conditionality along the position of the European Parliament;

Monitoring mechanisms

| 21. | calls for a differentiated approach to the use of quality and quantity results indicators, which should be relevant and selected appropriately targeting the result of the projects and long term benefits rather than theoretical assumptions, in an attempt to harmonise at European level the criteria for evaluating the results of fund activities; |
| --- | --- |

21.

calls for a differentiated approach to the use of quality and quantity results indicators, which should be relevant and selected appropriately targeting the result of the projects and long term benefits rather than theoretical assumptions, in an attempt to harmonise at European level the criteria for evaluating the results of fund activities;

| 22. | expressly supports the evaluation culture, which allows for continuous improvement of the quality of strategies and procedures, recommends promoting the exchange of experience and best practice between national and regional authorities throughout Europe. To achieve this objective, it proposes that an integrated database be set up to compile best practices and technologies financed by any of the funds under the Common Strategic Framework; |
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22.

expressly supports the evaluation culture, which allows for continuous improvement of the quality of strategies and procedures, recommends promoting the exchange of experience and best practice between national and regional authorities throughout Europe. To achieve this objective, it proposes that an integrated database be set up to compile best practices and technologies financed by any of the funds under the Common Strategic Framework;

Reserves

| 23. | regrets the Council's insistence on the performance reserve. Reiterates instead its proposal for the establishment of a flexibility reserve financed from the automatic decommitment of resources, so that those responsible for policy can orientate medium-term strategy, thus providing an incentive for implementing the spending initially assigned to each operational programme; |
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23.

regrets the Council's insistence on the performance reserve. Reiterates instead its proposal for the establishment of a flexibility reserve financed from the automatic decommitment of resources, so that those responsible for policy can orientate medium-term strategy, thus providing an incentive for implementing the spending initially assigned to each operational programme;

Integrated Territorial Investment

| 24. | considers that the option of designing and applying strategies by means of integrated territorial investment, which allows cross-sectoral activities to be implemented with financing from one or more priority axes or programmes, would help ensure that the projects selected have a greater real impact on the areas in which they are developed, while giving the funds greater added value and increasing the efficiency of spending; |
| --- | --- |

24.

considers that the option of designing and applying strategies by means of integrated territorial investment, which allows cross-sectoral activities to be implemented with financing from one or more priority axes or programmes, would help ensure that the projects selected have a greater real impact on the areas in which they are developed, while giving the funds greater added value and increasing the efficiency of spending;

Management of programmes

| 25. | endorses the idea of combining financial instruments and subsidies as complementary instruments contributing to balanced regional development and smart growth. Suitably combined use should be an essential feature of investment policies for the period 2014-2020. The Centre for European Policy Studies (CEPS) took this line in a report for the European Parliament, arguing that innovative financial instruments should not be a substitute for aid and are only suitable for financially profitable projects; |
| --- | --- |

25.

endorses the idea of combining financial instruments and subsidies as complementary instruments contributing to balanced regional development and smart growth. Suitably combined use should be an essential feature of investment policies for the period 2014-2020. The Centre for European Policy Studies (CEPS) took this line in a report for the European Parliament, arguing that innovative financial instruments should not be a substitute for aid and are only suitable for financially profitable projects;

| 26. | considers that during the implementation of the multiannual financial frameworks developments occur which could affect the initial objectives and priorities. Although frequent changes to planning are not desirable, there should therefore be greater flexibility to reallocate part of programme resources internally. This reallocation would at all events have to be in line with the initial objectives and be on a scale which would not significantly affect the achievement of those objectives, while making it possible to adapt them to the new situation in the region; |
| --- | --- |

26.

considers that during the implementation of the multiannual financial frameworks developments occur which could affect the initial objectives and priorities. Although frequent changes to planning are not desirable, there should therefore be greater flexibility to reallocate part of programme resources internally. This reallocation would at all events have to be in line with the initial objectives and be on a scale which would not significantly affect the achievement of those objectives, while making it possible to adapt them to the new situation in the region;

Simplification

| 27. | considers that, although the implementation requirements and financial control provisions have been tightened up, the simplifications announced in the 2007-2013 period have not materialised; on the contrary, disproportionate costs have arisen. The Committee therefore reiterates the need for real simplification of the administrative burden, focusing greater effort on programme management. This simplification should extend from the Commission to potential beneficiaries, being consistent with the essential requirements for monitoring and supervision of activities and guarantees to beneficiaries; |
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27.

considers that, although the implementation requirements and financial control provisions have been tightened up, the simplifications announced in the 2007-2013 period have not materialised; on the contrary, disproportionate costs have arisen. The Committee therefore reiterates the need for real simplification of the administrative burden, focusing greater effort on programme management. This simplification should extend from the Commission to potential beneficiaries, being consistent with the essential requirements for monitoring and supervision of activities and guarantees to beneficiaries;

| 28. | is convinced that all the simplification measures adopted at EU level will not have any significant impact on programme management unless they are accompanied by genuine simplification measures at national, regional and local level, in line with the powers of each level of government; |
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28.

is convinced that all the simplification measures adopted at EU level will not have any significant impact on programme management unless they are accompanied by genuine simplification measures at national, regional and local level, in line with the powers of each level of government;

| 29. | suggests as possible mechanisms for simplifying management: the standardisation of procedures and documents, the use of common IT tools and the effective establishment of one-stop shops, thus avoiding interdepartmental formalities within the same administration; |
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29.

suggests as possible mechanisms for simplifying management: the standardisation of procedures and documents, the use of common IT tools and the effective establishment of one-stop shops, thus avoiding interdepartmental formalities within the same administration;

| 30. | recommends wider use of e-administration, which can play an essential role in the deployment of resources and relations between beneficiaries, the real promoters of wealth creation, and authorities and managers of various activities; |
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30.

recommends wider use of e-administration, which can play an essential role in the deployment of resources and relations between beneficiaries, the real promoters of wealth creation, and authorities and managers of various activities;

| 31. | recommends the alternative approach of standard costs as a model for approval and justification of spending, which can reduce the administrative load without adversely affecting the objectives of activities; |
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31.

recommends the alternative approach of standard costs as a model for approval and justification of spending, which can reduce the administrative load without adversely affecting the objectives of activities;

| 32. | reiterates the possibility of reducing other bureaucratic formalities by means of simplified reports and checks on progress, checks on the reliability of monitoring and supervision procedures and auditing of programmes; |
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32.

reiterates the possibility of reducing other bureaucratic formalities by means of simplified reports and checks on progress, checks on the reliability of monitoring and supervision procedures and auditing of programmes;

| 33. | highlights the usefulness of single-fund programmes which have made it possible to simplify approval and revision procedures compared with integrated programmes, and points to the advantages of multi-fund operational programmes. These make it possible to maximise the positive impact of EU support in the regions by exploiting in an integrated way the opportunities created by the various development instruments; |
| --- | --- |

33.

highlights the usefulness of single-fund programmes which have made it possible to simplify approval and revision procedures compared with integrated programmes, and points to the advantages of multi-fund operational programmes. These make it possible to maximise the positive impact of EU support in the regions by exploiting in an integrated way the opportunities created by the various development instruments;

| 34. | points out that the implementation of Community rules in national law is a potential focal point of conflict for fund management. Therefore calls on the competent authorities to exercise the greatest rigour in drawing up the rules, particularly those with a horizontal impact on programmes, such as the rules on contracts or subsidies; |
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34.

points out that the implementation of Community rules in national law is a potential focal point of conflict for fund management. Therefore calls on the competent authorities to exercise the greatest rigour in drawing up the rules, particularly those with a horizontal impact on programmes, such as the rules on contracts or subsidies;

| 35. | considers that the close relationship between cohesion policy and European rules on state aid and services of general economic interest make it necessary, in the context of every reform, to pay particular attention to compatibility between financing mechanisms and to avoid imposing additional administrative burdens in connection with programme management; |
| --- | --- |

35.

considers that the close relationship between cohesion policy and European rules on state aid and services of general economic interest make it necessary, in the context of every reform, to pay particular attention to compatibility between financing mechanisms and to avoid imposing additional administrative burdens in connection with programme management;

| 36. | reiterates the need for a clear framework for application of the rules on state aid to financial instruments and public-private partnerships, avoiding duplication or delays in project implementation; |
| --- | --- |

36.

reiterates the need for a clear framework for application of the rules on state aid to financial instruments and public-private partnerships, avoiding duplication or delays in project implementation;

| 37. | proposes that the simplification introduced by the Commission, limiting the number of criteria for eligibility for subsidies in specific support activities, be implemented. It therefore suggests that indicators be introduced into the project selection processes making it possible to analyse both the impact of investment and the maturity of projects, thus ensuring more efficient allocation of resources, with priority for those with greater added value and economic impact. Strengthening of administrative capacities of Local Authorities, especially in those cases when they are Final Beneficiaries of the projects, for public procurement and technical supervision and after investment assets management is essential for success of investments in long term; |
| --- | --- |

37.

proposes that the simplification introduced by the Commission, limiting the number of criteria for eligibility for subsidies in specific support activities, be implemented. It therefore suggests that indicators be introduced into the project selection processes making it possible to analyse both the impact of investment and the maturity of projects, thus ensuring more efficient allocation of resources, with priority for those with greater added value and economic impact. Strengthening of administrative capacities of Local Authorities, especially in those cases when they are Final Beneficiaries of the projects, for public procurement and technical supervision and after investment assets management is essential for success of investments in long term;

Financing alternatives

| 38. | recommends that the competent authorities make use of the option of obtaining private co-financing, since it is an additional cohesion policy option, against the backdrop of ever scarcer public resources; this would certainly add value to this policy; in this regard, Public Private Partnership models might be a model to develop in the new programming period; moreover, private co-financing of economic development projects will help to ensure their relevance, as well as firms' commitment to and ownership of initiatives undertaken; |
| --- | --- |

38.

recommends that the competent authorities make use of the option of obtaining private co-financing, since it is an additional cohesion policy option, against the backdrop of ever scarcer public resources; this would certainly add value to this policy; in this regard, Public Private Partnership models might be a model to develop in the new programming period; moreover, private co-financing of economic development projects will help to ensure their relevance, as well as firms' commitment to and ownership of initiatives undertaken;

| 39. | draws attention to the important role which the EIB can play in this context and to the additional possibilities offered by the framework loans and structural programme loans; |
| --- | --- |

39.

draws attention to the important role which the EIB can play in this context and to the additional possibilities offered by the framework loans and structural programme loans;

| 40. | argues, as in previous opinions, that consideration should be given to the possibility of issuing bonds for the financing of major projects which are likely to be economically profitable in the medium-term; |
| --- | --- |

40.

argues, as in previous opinions, that consideration should be given to the possibility of issuing bonds for the financing of major projects which are likely to be economically profitable in the medium-term;

Financial instruments

| 41. | recognises the operational difficulties facing financial instruments at present, and is particularly aware of the specific concerns and needs of towns and urban areas with regard to the development of the Jessica instrument, as a result of tensions between programme management authorities and municipal authorities. Therefore reiterates the need to facilitate the use of loan-based instruments in the appropriate areas, when implementing cohesion policy, given their multiplier effect and positive impact on the effectiveness of support activities, and the consequent alleviation of the burden on regional and local budgets and suggests that consideration be given to the participation of investment banks, amongst other bodies; |
| --- | --- |

41.

recognises the operational difficulties facing financial instruments at present, and is particularly aware of the specific concerns and needs of towns and urban areas with regard to the development of the Jessica instrument, as a result of tensions between programme management authorities and municipal authorities. Therefore reiterates the need to facilitate the use of loan-based instruments in the appropriate areas, when implementing cohesion policy, given their multiplier effect and positive impact on the effectiveness of support activities, and the consequent alleviation of the burden on regional and local budgets and suggests that consideration be given to the participation of investment banks, amongst other bodies;

Retroactivity of the provisions

| 42. | rejects the practice of establishing retroactive provisions and considers that this should be avoided in the future, as it makes management more difficult and generates legal uncertainty; urges that the application of a proportionality principle be studied which would tailor supervisory requirements to the scale of the projects co-financed from the Structural Funds; |
| --- | --- |

42.

rejects the practice of establishing retroactive provisions and considers that this should be avoided in the future, as it makes management more difficult and generates legal uncertainty; urges that the application of a proportionality principle be studied which would tailor supervisory requirements to the scale of the projects co-financed from the Structural Funds;

Proportionality of controls

| 43. | considers that the option of establishing ‘contracts of confidence’ between the European Commission and the regions could prevent duplication in auditing procedures, in line with a proportionality principle; |
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43.

considers that the option of establishing ‘contracts of confidence’ between the European Commission and the regions could prevent duplication in auditing procedures, in line with a proportionality principle;

| 44. | considers that a specific approach needs to be taken to designing EU-level guidelines concerning the management and supervisory mechanisms applicable to multifund projects or programmes, in order to prevent administrative duplication that could discourage their use; this applies in particular to the appointment of single competent authorities, overall reporting and comprehensive auditing. In this regard, the CoR expresses its wish to comment on the application guidelines for the new multifund projects; |
| --- | --- |

44.

considers that a specific approach needs to be taken to designing EU-level guidelines concerning the management and supervisory mechanisms applicable to multifund projects or programmes, in order to prevent administrative duplication that could discourage their use; this applies in particular to the appointment of single competent authorities, overall reporting and comprehensive auditing. In this regard, the CoR expresses its wish to comment on the application guidelines for the new multifund projects;

| 45. | points out that the authorities responsible for managing projects should be a highly sensitive to the provision of additional resources to the regions by the European Union, consequently, recommends that they adapt their organisations in such a way as to ensure that an appropriate organisational structure is in place for optimum use of these resources. |
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45.

points out that the authorities responsible for managing projects should be a highly sensitive to the provision of additional resources to the regions by the European Union, consequently, recommends that they adapt their organisations in such a way as to ensure that an appropriate organisational structure is in place for optimum use of these resources.

Brussels, 8 October 2013.

The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO

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(1)  See OECD Paper GOV/TDPC/(2013)3. These principles include, amongst others: using an integrated strategy tailored to different places: adopting effective coordination instruments across national and subnational governments; coordination among subnational governments to invest at the relevant scale; assessing upfront the long-term impact and risks of public investment; engaging stakeholders throughout the investment cycle; mobilising private actors and financing institutions to diversify sources of funding and strengthen capacities; reinforcing the expertise of public officials and institutions involved in public investment; focusing on results and promoting learning; developing a fiscal framework adapted to the investment objectives pursued; requiring sound, transparent financial management at all levels of government; transparency and strategic use of public procurement; striving for quality and consistency in regulatory systems across levels of government;

1

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| 5.12.2013 | EN | Official Journal of the European Union | C 356/9 |
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5.12.2013

EN

Official Journal of the European Union

C 356/9

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Opinion of the Committee of the Regions on ‘Urban-rural partnership and governance’

2013/C 356/03

THE COMMITTEE OF THE REGIONS

| — | recognises that there are legislative, administrative, fiscal and financial barriers which make it harder to get urban-rural partnerships up and running. These barriers need to be identified and eliminated so as to ensure a legal framework which will foster the development of partnerships; |
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—

recognises that there are legislative, administrative, fiscal and financial barriers which make it harder to get urban-rural partnerships up and running. These barriers need to be identified and eliminated so as to ensure a legal framework which will foster the development of partnerships;

| — | recommends that management authorities in the Member States use the new territorial development instruments rolled out by the EU as part of its regional and rural development policy: Integrated Territorial Investments (ITI), Community-led local development (CLLD), Global Grants and the multi-fund approach; |
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—

recommends that management authorities in the Member States use the new territorial development instruments rolled out by the EU as part of its regional and rural development policy: Integrated Territorial Investments (ITI), Community-led local development (CLLD), Global Grants and the multi-fund approach;

| — | emphasises that with regard to funding eligibility, functional regions need to be recognised and the sources of financing made available through the EU's regional and common agricultural policies need to be integrated; |
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—

emphasises that with regard to funding eligibility, functional regions need to be recognised and the sources of financing made available through the EU's regional and common agricultural policies need to be integrated;

| — | considers that it is essential to improve the collection of data from functional regions. This will enable a database to be set up so that policy-makers can make informed decisions as regards territorial planning, in compliance with proportionality requirements; |
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—

considers that it is essential to improve the collection of data from functional regions. This will enable a database to be set up so that policy-makers can make informed decisions as regards territorial planning, in compliance with proportionality requirements;

| — | emphasises cross-border aspects of urban rural partnerships and the way that the funding instruments proposed by the Commission are used in order to promote economic development potential of urban-rural cross border linkages; |
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—

emphasises cross-border aspects of urban rural partnerships and the way that the funding instruments proposed by the Commission are used in order to promote economic development potential of urban-rural cross border linkages;

| — | stresses the need to involve the private sector and the social economy, which can both make a very useful contribution as regards performance criteria, business and innovation capacity, seizing opportunities and mobilising communities, and particularly as regards attracting capital and forming public-private partnerships. |
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—

stresses the need to involve the private sector and the social economy, which can both make a very useful contribution as regards performance criteria, business and innovation capacity, seizing opportunities and mobilising communities, and particularly as regards attracting capital and forming public-private partnerships.

| Rapporteur | Romeo STAVARACHE (RO/ALDE), Mayor of Bacău municipality |
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| Reference document |

Rapporteur

Romeo STAVARACHE (RO/ALDE), Mayor of Bacău municipality

Reference document

I.   POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS

Comments regarding urban-rural partnerships

| 1. | Urban and rural areas are linked demographically and economically, as well as by infrastructure for public service access. Policy-makers at every level of government need to focus on urban-rural connections arising from: the transport of goods, commuting, education, healthcare, water and waste services, business transactions, access to natural resources, culture and leisure activities. The way that these links are managed has an impact on the economic and social development of functional regions and therefore on the quality of life of the people living there. |
| --- | --- |

1.

Urban and rural areas are linked demographically and economically, as well as by infrastructure for public service access. Policy-makers at every level of government need to focus on urban-rural connections arising from: the transport of goods, commuting, education, healthcare, water and waste services, business transactions, access to natural resources, culture and leisure activities. The way that these links are managed has an impact on the economic and social development of functional regions and therefore on the quality of life of the people living there.

| 2. | A lack of coordination of relations between rural and urban areas can often lead to undesirable outcomes in towns — and their surrounding areas. Raising awareness of and understanding this interdependency can help solve problems facing rural and urban areas. It would be helpful to promote understanding, on both sides, of the linkages and interdependencies that exist. |
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2.

A lack of coordination of relations between rural and urban areas can often lead to undesirable outcomes in towns — and their surrounding areas. Raising awareness of and understanding this interdependency can help solve problems facing rural and urban areas. It would be helpful to promote understanding, on both sides, of the linkages and interdependencies that exist.

| 3. | In order to establish optimal models of urban-rural governance, it is necessary to understand the links and identify the challenges facing both urban and rural areas. A ‘one-size-fits-all’ approach must be dismissed from the start. |
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3.

In order to establish optimal models of urban-rural governance, it is necessary to understand the links and identify the challenges facing both urban and rural areas. A ‘one-size-fits-all’ approach must be dismissed from the start.

| 4. | Challenges for the development of partnerships between urban and rural areas include population decline (particularly in isolated areas), environmental sustainability and landscape conservation, unconditional access to natural and cultural resources, public services and consumer goods, the expansion of urban areas at the expense of rural areas, economic decline, regional competitiveness, links between regions, the efficiency of policies and exploiting external funding opportunities. |
| --- | --- |

4.

Challenges for the development of partnerships between urban and rural areas include population decline (particularly in isolated areas), environmental sustainability and landscape conservation, unconditional access to natural and cultural resources, public services and consumer goods, the expansion of urban areas at the expense of rural areas, economic decline, regional competitiveness, links between regions, the efficiency of policies and exploiting external funding opportunities.

| 5. | The broad range of challenges is also reflected in the goals pursued by urban-rural partnerships: economic development, integrated joint planning, exploiting synergies, strengthening regional competitiveness, realising economies of scale by providing services in partnership, promoting joint advocacy and strategic cooperation activities throughout the areas with a view to accessing public or private funding, etc. |
| --- | --- |

5.

The broad range of challenges is also reflected in the goals pursued by urban-rural partnerships: economic development, integrated joint planning, exploiting synergies, strengthening regional competitiveness, realising economies of scale by providing services in partnership, promoting joint advocacy and strategic cooperation activities throughout the areas with a view to accessing public or private funding, etc.

| 6. | Urban-rural functional regions can be established on the basis of the economic, social and environmental links between areas. Such regions are necessary because the traditional concept underpinning the development policies of towns and municipalities is limited by administrative boundaries and is not in line with real-life social and economic situations. |
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6.

Urban-rural functional regions can be established on the basis of the economic, social and environmental links between areas. Such regions are necessary because the traditional concept underpinning the development policies of towns and municipalities is limited by administrative boundaries and is not in line with real-life social and economic situations.

| 7. | The Organisation for Economic Co-operation and Development (OECD) uses the following general concept to define a functional region: a geographical area which generally does not follow the administrative boundaries, with a specific form of territorial interdependency (function) which could require some form of governance. |
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7.

The Organisation for Economic Co-operation and Development (OECD) uses the following general concept to define a functional region: a geographical area which generally does not follow the administrative boundaries, with a specific form of territorial interdependency (function) which could require some form of governance.

| 8. | One key feature of urban-rural partnerships is their geometric flexibility. This flexibility derives from: (1) the goal of the partnership which can centre on one or more points of interest, (2) its rationale — management of a project or integrated management of a functional region, and (3) the model of governance chosen (top-down or bottom-up). |
| --- | --- |

8.

One key feature of urban-rural partnerships is their geometric flexibility. This flexibility derives from: (1) the goal of the partnership which can centre on one or more points of interest, (2) its rationale — management of a project or integrated management of a functional region, and (3) the model of governance chosen (top-down or bottom-up).

| 9. | Past experience has shown that approaches and problems vary between one region and another and one country and another. In some cases the national administration has established a formal procedure for urban-rural cooperation, while in others such cooperation is more flexible. This diversity is a real advantage for the EU, offering opportunities for exploration and innovation, as well as a host of methods and practices. |
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9.

Past experience has shown that approaches and problems vary between one region and another and one country and another. In some cases the national administration has established a formal procedure for urban-rural cooperation, while in others such cooperation is more flexible. This diversity is a real advantage for the EU, offering opportunities for exploration and innovation, as well as a host of methods and practices.

| 10. | Regardless of the context, one common determining factor for successful cooperation is dialogue and trust between partners, as well as recognising and acting upon needs common to the whole region. |
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10.

Regardless of the context, one common determining factor for successful cooperation is dialogue and trust between partners, as well as recognising and acting upon needs common to the whole region.

| 11. | Lack of trust between local partners (horizontal) and between public institutions at the various levels of government involved (vertical) can be destructive and generally slows down the cooperation process. Sustained political effort by all policy-makers involved is needed to build trust and identify solutions to complex problems which affect everyone concerned. |
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11.

Lack of trust between local partners (horizontal) and between public institutions at the various levels of government involved (vertical) can be destructive and generally slows down the cooperation process. Sustained political effort by all policy-makers involved is needed to build trust and identify solutions to complex problems which affect everyone concerned.

Challenges at EU level

| 12. | While differences in development between countries have been shrinking in the European Union in recent years, macro-economic analysis based on statistics from before the crisis indicates that disparities between regions are increasing. The best solutions need to be identified to close the gap between regions, boost quality of life in regions which are lagging behind in terms of economic development, and develop industries, services and ‘green’ farming techniques. |
| --- | --- |

12.

While differences in development between countries have been shrinking in the European Union in recent years, macro-economic analysis based on statistics from before the crisis indicates that disparities between regions are increasing. The best solutions need to be identified to close the gap between regions, boost quality of life in regions which are lagging behind in terms of economic development, and develop industries, services and ‘green’ farming techniques.

| 13. | Frequently, territorial planning is carried out solely by the territorial administration and not by the functional region, without taking account of the interdependency between urban and rural areas. This can undermine territorial cohesion and reduce opportunities for local synergies which could consolidate economic and social development. |
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13.

Frequently, territorial planning is carried out solely by the territorial administration and not by the functional region, without taking account of the interdependency between urban and rural areas. This can undermine territorial cohesion and reduce opportunities for local synergies which could consolidate economic and social development.

| 14. | For reasons of efficiency, an integrated approach to development policies should not come to an abrupt halt at the administrative boundaries separating urban and rural areas. The functional dimension should be taken into account. The areas surrounding towns — known as ‘peri-urban areas’ — contribute to sustainable economic development and provide energy and environmental and cultural resources, and thus improve quality of life. It is well known that towns are a pole of public services, trade, healthcare, higher education, transport, innovation and jobs. |
| --- | --- |

14.

For reasons of efficiency, an integrated approach to development policies should not come to an abrupt halt at the administrative boundaries separating urban and rural areas. The functional dimension should be taken into account. The areas surrounding towns — known as ‘peri-urban areas’ — contribute to sustainable economic development and provide energy and environmental and cultural resources, and thus improve quality of life. It is well known that towns are a pole of public services, trade, healthcare, higher education, transport, innovation and jobs.

| 15. | Administrative boundaries at city and town level frequently diverge from the economic geography of the region. Moreover, functional regions are in a constant state of change. Territorial policies therefore need to be adaptable and sufficiently flexible. One example is the most frequent form of urban-rural interdependency, i.e. commuting to work, where the optimal travel time is an hour; above that, workplace accessibility declines. |
| --- | --- |

15.

Administrative boundaries at city and town level frequently diverge from the economic geography of the region. Moreover, functional regions are in a constant state of change. Territorial policies therefore need to be adaptable and sufficiently flexible. One example is the most frequent form of urban-rural interdependency, i.e. commuting to work, where the optimal travel time is an hour; above that, workplace accessibility declines.

| 16. | An integrated approach through urban-rural partnerships can create new and dynamic opportunities for economic development. Sustainable, inclusive economic growth at regional level is largely dependent on unleashing the potential of rural-urban cooperation. |
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16.

An integrated approach through urban-rural partnerships can create new and dynamic opportunities for economic development. Sustainable, inclusive economic growth at regional level is largely dependent on unleashing the potential of rural-urban cooperation.

| 17. | Starting from the premise that neighbouring urban and rural areas should not be in competition but should rather complement each other, coordinating public action is the real challenge. This is the only way that urban and rural environments will be able to identify win-win solutions, ironing out possible conflicts of interest. |
| --- | --- |

17.

Starting from the premise that neighbouring urban and rural areas should not be in competition but should rather complement each other, coordinating public action is the real challenge. This is the only way that urban and rural environments will be able to identify win-win solutions, ironing out possible conflicts of interest.

| 18. | Urban-rural partnerships need to take a long-term approach to the preparation of strategies and programmes and particularly the development of governance structures. The chief advantages of such long-term thinking are consistency and the delivery of stable results. Partnerships can help solve real problems by providing responses to local needs in both urban and rural areas and implementing common, practical solutions. Local and regional authorities need to insist that priority be given to a long-term strategic approach to the multiannual planning for and implementation of the EU budget, so as to eliminate drawbacks generated by procedural rules. |
| --- | --- |

18.

Urban-rural partnerships need to take a long-term approach to the preparation of strategies and programmes and particularly the development of governance structures. The chief advantages of such long-term thinking are consistency and the delivery of stable results. Partnerships can help solve real problems by providing responses to local needs in both urban and rural areas and implementing common, practical solutions. Local and regional authorities need to insist that priority be given to a long-term strategic approach to the multiannual planning for and implementation of the EU budget, so as to eliminate drawbacks generated by procedural rules.

| 19. | Case studies of urban-rural partnerships show that their success is not fully dependent on action — such as legislation or funding — by higher tiers of government, whether national or European. However, such measures can have a deciding influence on the development of these partnerships, in terms of motivation, sustainability, efficiency and ability to deliver results. On occasion, setting up and managing partnerships entails costs which the partners cannot bear fairly. In such cases, establishing an effective partnership will require financial and/or technical support. The challenge for the EU is to identify the best way to initiate and support partnerships, without creating dependency on financial subsidies and avoiding the establishment of partnerships which exist only on paper and do nothing to serve local public interests. |
| --- | --- |

19.

Case studies of urban-rural partnerships show that their success is not fully dependent on action — such as legislation or funding — by higher tiers of government, whether national or European. However, such measures can have a deciding influence on the development of these partnerships, in terms of motivation, sustainability, efficiency and ability to deliver results. On occasion, setting up and managing partnerships entails costs which the partners cannot bear fairly. In such cases, establishing an effective partnership will require financial and/or technical support. The challenge for the EU is to identify the best way to initiate and support partnerships, without creating dependency on financial subsidies and avoiding the establishment of partnerships which exist only on paper and do nothing to serve local public interests.

| 20. | Multilevel governance in urban-rural partnerships presupposes that all levels of public authorities and relevant institutional partners will be involved. Institutions managing urban and rural policy instruments at national or European level frequently fail to allow for urban-rural interdependency or for the challenges arising from it and the potential dangers and benefits. |
| --- | --- |

20.

Multilevel governance in urban-rural partnerships presupposes that all levels of public authorities and relevant institutional partners will be involved. Institutions managing urban and rural policy instruments at national or European level frequently fail to allow for urban-rural interdependency or for the challenges arising from it and the potential dangers and benefits.

| 21. | Border regions were given a real boost as borders within the EU opened up. Promoting cross-border urban-rural partnerships offers significant potential for development. The European Union in particular has a major role to play in exploiting this potential. |
| --- | --- |

21.

Border regions were given a real boost as borders within the EU opened up. Promoting cross-border urban-rural partnerships offers significant potential for development. The European Union in particular has a major role to play in exploiting this potential.

The view point of local and regional authorities

| 22. | The added value of urban-rural partnerships lies in the increased efficiency of public action, more consistent use of funding, the promotion of integrated solutions to shared problems and, last but not least, increased solidarity at regional level. |
| --- | --- |

22.

The added value of urban-rural partnerships lies in the increased efficiency of public action, more consistent use of funding, the promotion of integrated solutions to shared problems and, last but not least, increased solidarity at regional level.

| 23. | Local authority action in urban and rural areas should focus on involving local communities in planning and implementing activities. The effectiveness of such action depends on active involvement of these communities. |
| --- | --- |

23.

Local authority action in urban and rural areas should focus on involving local communities in planning and implementing activities. The effectiveness of such action depends on active involvement of these communities.

| 24. | While efficiency of public action is key for dealing with problems, frequent change and geographical challenges in the regions, governance often needs more time to become properly consolidated. As a result, stakeholders, especially the urban component, need to act altruistically, to be able to face up to prejudice and promote equal treatment of partners despite administrative or economic imbalances, to make firm commitments, to undertake sustained political efforts to build capacity and to demonstrate that they can be flexible. |
| --- | --- |

24.

While efficiency of public action is key for dealing with problems, frequent change and geographical challenges in the regions, governance often needs more time to become properly consolidated. As a result, stakeholders, especially the urban component, need to act altruistically, to be able to face up to prejudice and promote equal treatment of partners despite administrative or economic imbalances, to make firm commitments, to undertake sustained political efforts to build capacity and to demonstrate that they can be flexible.

| 25. | There are legislative, administrative, fiscal and financial barriers which make it harder to get urban-rural partnerships up and running. These barriers need to be identified and eliminated so as to ensure a legal framework which will foster the development of partnerships. |
| --- | --- |

25.

There are legislative, administrative, fiscal and financial barriers which make it harder to get urban-rural partnerships up and running. These barriers need to be identified and eliminated so as to ensure a legal framework which will foster the development of partnerships.

| 26. | Interdependency in the provision of public services, sustainable development and business opportunities created by urban/rural collaboration is a good stimulus, encouraging urban and rural partners to work together. |
| --- | --- |

26.

Interdependency in the provision of public services, sustainable development and business opportunities created by urban/rural collaboration is a good stimulus, encouraging urban and rural partners to work together.

| 27. | It is imperative to monitor and measure the benefits of partnerships. While tangible benefits are easier to measure, intangible benefits are more difficult to gauge although just as important. Moreover, in the case of action taken by third parties financing the partnership, it is even more important to quantify these benefits even if the partners themselves are satisfied with the progress achieved. |
| --- | --- |

27.

It is imperative to monitor and measure the benefits of partnerships. While tangible benefits are easier to measure, intangible benefits are more difficult to gauge although just as important. Moreover, in the case of action taken by third parties financing the partnership, it is even more important to quantify these benefits even if the partners themselves are satisfied with the progress achieved.

Policy recommendations

THE COMMITTEE OF THE REGIONS

| 28. | reaffirms its support for the RURBAN initiative proposed by the European Parliament and the European Commission. This initiative is currently in the implementation phase and will lay the groundwork for new EU measures to support integrated territorial development and urban-rural partnerships; |
| --- | --- |

28.

reaffirms its support for the RURBAN initiative proposed by the European Parliament and the European Commission. This initiative is currently in the implementation phase and will lay the groundwork for new EU measures to support integrated territorial development and urban-rural partnerships;

| 29. | welcomes the progress made by the Member States in implementing the 2020 Territorial Agenda and the policy documents adopted by ministers responsible for cohesion policy: the Leipzig Charter on sustainable European cities, the Marseille Declaration on the reference framework for the sustainable city and the Toledo Declaration on the role of integrated urban development in achieving the goals of the Europe 2020 strategy; |
| --- | --- |

29.

welcomes the progress made by the Member States in implementing the 2020 Territorial Agenda and the policy documents adopted by ministers responsible for cohesion policy: the Leipzig Charter on sustainable European cities, the Marseille Declaration on the reference framework for the sustainable city and the Toledo Declaration on the role of integrated urban development in achieving the goals of the Europe 2020 strategy;

| 30. | reiterates the European Parliament's recommendations on Good governance with regards to the EU regional policy: procedures of assistance and control by the European Commission and calls for these recommendations to be put into effect in the new 2014-2020 programming period (1); |
| --- | --- |

30.

reiterates the European Parliament's recommendations on Good governance with regards to the EU regional policy: procedures of assistance and control by the European Commission and calls for these recommendations to be put into effect in the new 2014-2020 programming period (1);

| 31. | highlights the need to facilitate the exchange of good practice and knowledge on partnerships and urban-rural governance (2); |
| --- | --- |

31.

highlights the need to facilitate the exchange of good practice and knowledge on partnerships and urban-rural governance (2);

| 32. | acknowledges the importance of harmonisation exercise of European rules on cohesion and rural development policies through the new common regulation on the funds which gives more flexibility to local authorities in designing cross-thematic integrated territorial projects, and particularly the proposals on Integrated Territorial Investments (ITI) and Community-led local development (CLLD); |
| --- | --- |

32.

acknowledges the importance of harmonisation exercise of European rules on cohesion and rural development policies through the new common regulation on the funds which gives more flexibility to local authorities in designing cross-thematic integrated territorial projects, and particularly the proposals on Integrated Territorial Investments (ITI) and Community-led local development (CLLD);

| 33. | recommends that management authorities in the Member States use the new territorial development instruments rolled out by the EU as part of its regional and rural development policy: Integrated Territorial Investments (ITI), Community-led local development (CLLD), Global Grants and the multi-fund approach; |
| --- | --- |

33.

recommends that management authorities in the Member States use the new territorial development instruments rolled out by the EU as part of its regional and rural development policy: Integrated Territorial Investments (ITI), Community-led local development (CLLD), Global Grants and the multi-fund approach;

| 34. | recommends that the integrated territorial approach be promoted in the new programming period by including and explicitly referring in partnership agreements to the territorial dimension of action and support measures (particularly those targeting urban-rural partnerships) in functional regions; |
| --- | --- |

34.

recommends that the integrated territorial approach be promoted in the new programming period by including and explicitly referring in partnership agreements to the territorial dimension of action and support measures (particularly those targeting urban-rural partnerships) in functional regions;

| 35. | emphasises that local and regional authorities structure their investment programmes around the thematic objectives of the Europe 2020 strategy, but they could use functional regions to define the geographical area covered. As regards criteria for funding eligibility, functional regions need to be recognised and the sources of financing made available through the EU's regional and common agricultural policies need to be integrated; |
| --- | --- |

35.

emphasises that local and regional authorities structure their investment programmes around the thematic objectives of the Europe 2020 strategy, but they could use functional regions to define the geographical area covered. As regards criteria for funding eligibility, functional regions need to be recognised and the sources of financing made available through the EU's regional and common agricultural policies need to be integrated;

| 36. | agrees that rural-urban partnerships are not an instrument for redistributing economic potential nor for reallocating financing within a functional region. Urban-rural partnerships use existing potential properly and link up partners to promote local development; |
| --- | --- |

36.

agrees that rural-urban partnerships are not an instrument for redistributing economic potential nor for reallocating financing within a functional region. Urban-rural partnerships use existing potential properly and link up partners to promote local development;

| 37. | considers that the dangers of institutional fragmentation in urban-rural partnerships need to be better quantified: potential conflicts of interest between partners and the economic dimension thereof; dangers relating to possible reforms to boost economic efficiency but also to stability in respect of recognising the action's legitimacy, fragility and financial sustainability, possible mismatches between financing needs and available financing; the danger of insufficient involvement of the partners concerned and private partners, etc.; |
| --- | --- |

37.

considers that the dangers of institutional fragmentation in urban-rural partnerships need to be better quantified: potential conflicts of interest between partners and the economic dimension thereof; dangers relating to possible reforms to boost economic efficiency but also to stability in respect of recognising the action's legitimacy, fragility and financial sustainability, possible mismatches between financing needs and available financing; the danger of insufficient involvement of the partners concerned and private partners, etc.;

| 38. | considers that the benefits of partnerships need to be better promoted and recognised at EU level. Consolidating the institutional capacity of local authorities to organise public services, developing and exploiting existing capacities and boosting productivity, rationalising resources and ensuring better access to natural resources should be supported by all governments levels, including the EU. Raising the profile of functional regions, reducing the negative impact of competition between neighbouring administrative entities (particularly as regards taxation), better economies of scale for investments, economic viability, access to services, making use of untapped resources, improving local knowledge by pooling information, curbing the urban sprawl constitute examples of urban-rural cooperation challenges; |
| --- | --- |

38.

considers that the benefits of partnerships need to be better promoted and recognised at EU level. Consolidating the institutional capacity of local authorities to organise public services, developing and exploiting existing capacities and boosting productivity, rationalising resources and ensuring better access to natural resources should be supported by all governments levels, including the EU. Raising the profile of functional regions, reducing the negative impact of competition between neighbouring administrative entities (particularly as regards taxation), better economies of scale for investments, economic viability, access to services, making use of untapped resources, improving local knowledge by pooling information, curbing the urban sprawl constitute examples of urban-rural cooperation challenges;

| 39. | recommends that functional regions and cross-border urban-rural partnerships be supported as points of reference for the drawing up of multiannual development programmes financed by European Structural Funds and investments; |
| --- | --- |

39.

recommends that functional regions and cross-border urban-rural partnerships be supported as points of reference for the drawing up of multiannual development programmes financed by European Structural Funds and investments;

| 40. | points out that European programmes need to be flexible in order to keep pace with the real-life situations confronting functional regions and to develop tools which will help and encourage rural and urban areas to work together and promote more efficient policy solutions; |
| --- | --- |

40.

points out that European programmes need to be flexible in order to keep pace with the real-life situations confronting functional regions and to develop tools which will help and encourage rural and urban areas to work together and promote more efficient policy solutions;

| 41. | considers that it is essential to improve the collection of data from functional regions. This will enable a database to be set up so that policy-makers can make informed decisions as regards territorial planning, in compliance with proportionality requirements i.e. the need for planning to be carried out where problems or changes actually occur. Moreover, in order to focus attention on evidence of how these partnerships work (or do not work), examples are needed of the added value and benefits for sustainable economic development offered by these partnerships (3), ESPON analysis will be of utmost importance for policy makers and project practitioners in this respect; |
| --- | --- |

41.

considers that it is essential to improve the collection of data from functional regions. This will enable a database to be set up so that policy-makers can make informed decisions as regards territorial planning, in compliance with proportionality requirements i.e. the need for planning to be carried out where problems or changes actually occur. Moreover, in order to focus attention on evidence of how these partnerships work (or do not work), examples are needed of the added value and benefits for sustainable economic development offered by these partnerships (3), ESPON analysis will be of utmost importance for policy makers and project practitioners in this respect;

| 42. | firmly believes that better understanding of the benefits, both tangible and intangible, is crucial for evaluating urban-rural partnerships. They prove how urban-rural partnerships have European added value and so can help achieve the goals of the Europe 2020 strategy. It would be useful to develop common indicators for quantifying benefits, which local authorities could be encouraged to use. In the long term, partnerships could be benchmarked, particularly in the case of programmes with European funding; |
| --- | --- |

42.

firmly believes that better understanding of the benefits, both tangible and intangible, is crucial for evaluating urban-rural partnerships. They prove how urban-rural partnerships have European added value and so can help achieve the goals of the Europe 2020 strategy. It would be useful to develop common indicators for quantifying benefits, which local authorities could be encouraged to use. In the long term, partnerships could be benchmarked, particularly in the case of programmes with European funding;

| 43. | encourages local and regional authorities to plan innovative models of urban-rural governance to maximise the effects of urban-rural cooperation and its results; |
| --- | --- |

43.

encourages local and regional authorities to plan innovative models of urban-rural governance to maximise the effects of urban-rural cooperation and its results;

| 44. | proposes that urban-rural partnerships should be one of the priorities of URBACT programme and innovative actions, with a view to capitalising on experiences and practices in urban-rural partnerships in the EU and promoting innovative models of governance; |
| --- | --- |

44.

proposes that urban-rural partnerships should be one of the priorities of URBACT programme and innovative actions, with a view to capitalising on experiences and practices in urban-rural partnerships in the EU and promoting innovative models of governance;

| 45. | is aware of the need for better cooperation, particularly in cross-border areas, and for financial support through EU programmes to co-finance the partnership's business costs which can be considerable (for example administrative and human resources costs). The cost-benefit aspect of these costs must be considered to ensure that the partnership is sustainable; |
| --- | --- |

45.

is aware of the need for better cooperation, particularly in cross-border areas, and for financial support through EU programmes to co-finance the partnership's business costs which can be considerable (for example administrative and human resources costs). The cost-benefit aspect of these costs must be considered to ensure that the partnership is sustainable;

| 46. | considers that an efficient partnership should include among its key partners the private, social economy and non-governmental sectors, and securing public support; |
| --- | --- |

46.

considers that an efficient partnership should include among its key partners the private, social economy and non-governmental sectors, and securing public support;

| 47. | emphasises cross-border aspects of urban rural partnerships and the way that the funding instruments proposed by the Commission are used in order to promote economic development potential of urban-rural cross border linkages; |
| --- | --- |

47.

emphasises cross-border aspects of urban rural partnerships and the way that the funding instruments proposed by the Commission are used in order to promote economic development potential of urban-rural cross border linkages;

| 48. | stresses the importance of engaging the general populace; this is absolutely imperative in the process of urban-rural governance in order to reach a consensus on a common vision and objectives and build trust; |
| --- | --- |

48.

stresses the importance of engaging the general populace; this is absolutely imperative in the process of urban-rural governance in order to reach a consensus on a common vision and objectives and build trust;

| 49. | considers that measures are needed to prevent urban sprawl which has an unwanted impact on sustainable development (with soil-sealing affected, flooding becoming more likely, risk prevention and water supply more problematic and air quality jeopardised), mobility (such as traffic congestion, and additional infrastructure costs) and land-use planning in general. Solutions to these problems can be identified when urban and rural environments work in partnership; |
| --- | --- |

49.

considers that measures are needed to prevent urban sprawl which has an unwanted impact on sustainable development (with soil-sealing affected, flooding becoming more likely, risk prevention and water supply more problematic and air quality jeopardised), mobility (such as traffic congestion, and additional infrastructure costs) and land-use planning in general. Solutions to these problems can be identified when urban and rural environments work in partnership;

| 50. | stresses the need to involve the private sector and the social economy, which can both make a very useful contribution as regards performance criteria, business and innovation capacity, seizing opportunities and mobilising communities, and particularly as regards attracting capital and forming public-private partnerships; |
| --- | --- |

50.

stresses the need to involve the private sector and the social economy, which can both make a very useful contribution as regards performance criteria, business and innovation capacity, seizing opportunities and mobilising communities, and particularly as regards attracting capital and forming public-private partnerships;

| 51. | points to the key factors for successful partnerships: building trust, identifying every opportunity, thinking in practical terms, devising win-win solutions for urban and rural areas, attracting funds and ensuring that the partnership is consistent and sustainable. |
| --- | --- |

51.

points to the key factors for successful partnerships: building trust, identifying every opportunity, thinking in practical terms, devising win-win solutions for urban and rural areas, attracting funds and ensuring that the partnership is consistent and sustainable.

Brussels, 8 October 2013.

The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO

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(1)  EP report (2009/2231(INI)): http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+REPORT+A7-2010-0280+0+DOC+XML+V0//EN

1

(2)  Recommendations of the Organisation for Economic Co-operation and Development (OECD) — comprehensive study on urban-rural partnerships; study carried out by the Federal Institute for research into buildings, urban business and spatial development: Partnership for sustainable urban-rural development: the proof; Eurocities report on Towns — cooperating beyond administrative limits: practical experience; and the CEMR report on urban-rural partnership for integrated territorial development.

2

(3)  In this context, it might be worth referring to the PURPLE European network, in which peri-urban regions from different EU Member States work together on the issue of the viability of rural areas surrounding urban areas.

3

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| 5.12.2013 | EN | Official Journal of the European Union | C 356/15 |
| --- | --- | --- | --- |

5.12.2013

EN

Official Journal of the European Union

C 356/15

---

Opinion of the Committee of the Regions on ‘The Draft EU Budget for 2014’

2013/C 356/04

THE COMMITTEE OF THE REGIONS

| — | stresses that the process of drawing up the annual EU budget is of a political and strategic nature for regional and local authorities and proposes a formal consultation on future years' budgets; |
| --- | --- |

—

stresses that the process of drawing up the annual EU budget is of a political and strategic nature for regional and local authorities and proposes a formal consultation on future years' budgets;

| — | welcomes the efforts made by the European Commission to provide information on who receives EU funding, but finds that the publicly available information is inadequate and too sketchy to get an accurate overall picture of the European funds spent and managed by regional and local authorities; |
| --- | --- |

—

welcomes the efforts made by the European Commission to provide information on who receives EU funding, but finds that the publicly available information is inadequate and too sketchy to get an accurate overall picture of the European funds spent and managed by regional and local authorities;

| — | stresses that it will carefully monitor whether a slow programming start and a slow absorption will have a negative impact on the mid-term review of the MFF planned for 2016; |
| --- | --- |

—

stresses that it will carefully monitor whether a slow programming start and a slow absorption will have a negative impact on the mid-term review of the MFF planned for 2016;

| — | notes that about one third of the total RAL (EUR 70.7 billion) will be paid in 2014, but concurs with the concerns expressed by the European Commission with regard to the financial years 2015 and 2016; |
| --- | --- |

—

notes that about one third of the total RAL (EUR 70.7 billion) will be paid in 2014, but concurs with the concerns expressed by the European Commission with regard to the financial years 2015 and 2016;

| — | finds it unacceptable that payments are delayed and urges that the payment deadline of 60 days for programmes under shared management should be binding and that there should be a legal or financial penalty if this is not done within the deadline; |
| --- | --- |

—

finds it unacceptable that payments are delayed and urges that the payment deadline of 60 days for programmes under shared management should be binding and that there should be a legal or financial penalty if this is not done within the deadline;

| — | regrets the absence of references to the European Semester in the political presentation of EU budget's priorities for 2014; |
| --- | --- |

—

regrets the absence of references to the European Semester in the political presentation of EU budget's priorities for 2014;

| — | suggests that the full frontloading of the YEI in 2014-2015 should be accompanied by appropriate measures (e.g. capacity building) for quick implementation; |
| --- | --- |

—

suggests that the full frontloading of the YEI in 2014-2015 should be accompanied by appropriate measures (e.g. capacity building) for quick implementation;

| — | requests further frontloading in commitment appropriations of up to EUR 200 million for Horizon 2020, EUR 150 million for Erasmus and EUR 50 million for COSME in 2014-2015; |
| --- | --- |

—

requests further frontloading in commitment appropriations of up to EUR 200 million for Horizon 2020, EUR 150 million for Erasmus and EUR 50 million for COSME in 2014-2015;

| — | welcomes the fact that a transfer of EUR 351.9 million is foreseen from the first to the second pillar of the common agriculture policy (CAP) and reiterates its firm opposition to transfers in the other direction; |
| --- | --- |

—

welcomes the fact that a transfer of EUR 351.9 million is foreseen from the first to the second pillar of the common agriculture policy (CAP) and reiterates its firm opposition to transfers in the other direction;

| — | suggests that the extra flexibility of the ‘global margin for growth and employment’ be used for heaving 1b. |
| --- | --- |

—

suggests that the extra flexibility of the ‘global margin for growth and employment’ be used for heaving 1b.

| Rapporteur | Luc VAN DEN BRANDE (BE/EPP), Chairman of the Flemish European Liaison Agency |
| --- | --- |
| Reference documents | European Commission, Statement of estimates of the European Commission for the financial year 2014 (Preparation of the 2014 Draft Budget)
  SEC(2013) 370, June 2013
  Council of the European Union, Draft Council regulation laying down the multiannual financial framework for the years 2014-2020
  11655/13, 27 June 2013 |

Rapporteur

Luc VAN DEN BRANDE (BE/EPP), Chairman of the Flemish European Liaison Agency

Reference documents

European Commission, Statement of estimates of the European Commission for the financial year 2014 (Preparation of the 2014 Draft Budget)

SEC(2013) 370, June 2013

Council of the European Union, Draft Council regulation laying down the multiannual financial framework for the years 2014-2020

11655/13, 27 June 2013

I.   POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS

| 1. | points out that it is for the first time drawing up an opinion on the annual EU budget procedure in order to represent the views of regional and local authorities (RLAs) on the budget headings of which they are the main beneficiaries and in which they are directly involved; |
| --- | --- |

1.

points out that it is for the first time drawing up an opinion on the annual EU budget procedure in order to represent the views of regional and local authorities (RLAs) on the budget headings of which they are the main beneficiaries and in which they are directly involved;

| 2. | stresses that the process of drawing up the annual EU budget is of a political and strategic nature for regional and local authorities and proposes a formal consultation on future years' budgets by the Commission, the Council or the Parliament, allowing for a CoR position once the Commission has published the draft budget and, preferably, before the Council forwards it to the Parliament; |
| --- | --- |

2.

stresses that the process of drawing up the annual EU budget is of a political and strategic nature for regional and local authorities and proposes a formal consultation on future years' budgets by the Commission, the Council or the Parliament, allowing for a CoR position once the Commission has published the draft budget and, preferably, before the Council forwards it to the Parliament;

| 3. | emphasises that the opinion does not address administrative expenditure related to heading V; |
| --- | --- |

3.

emphasises that the opinion does not address administrative expenditure related to heading V;

| 4. | focusses in this opinion on budget headings of main interest to the Committee of the Regions and RLAs, including the Structural Funds, Horizon 2020, COSME, the Cohesion Fund and other shared management programmes such as EMFF and EAFRD, and LIFE+; |
| --- | --- |

4.

focusses in this opinion on budget headings of main interest to the Committee of the Regions and RLAs, including the Structural Funds, Horizon 2020, COSME, the Cohesion Fund and other shared management programmes such as EMFF and EAFRD, and LIFE+;

The European budget and the regional and local authorities (RLAs)

| 5. | notes that the European budget is of particular importance to regional and local authorities since they directly manage some EU programmes under shared management and are therefore directly affected by the level of both commitment and payments appropriations in these fields, especially in view of delays in payments resulting from an accumulation of outstanding payment claims in past years, which directly affects the public finances of many regional and local authorities across the EU; |
| --- | --- |

5.

notes that the European budget is of particular importance to regional and local authorities since they directly manage some EU programmes under shared management and are therefore directly affected by the level of both commitment and payments appropriations in these fields, especially in view of delays in payments resulting from an accumulation of outstanding payment claims in past years, which directly affects the public finances of many regional and local authorities across the EU;

| 6. | further notes that many RLAs that benefit from European funds such as the European Regional Development Fund (ERDF), the Cohesion Fund, the European Social Fund (ESF), the European Agricultural Fund for Rural Development (EAFRD), the European Maritime and Fisheries Fund (EMFF) are very much dependent on these funds for achieving their policy objectives; |
| --- | --- |

6.

further notes that many RLAs that benefit from European funds such as the European Regional Development Fund (ERDF), the Cohesion Fund, the European Social Fund (ESF), the European Agricultural Fund for Rural Development (EAFRD), the European Maritime and Fisheries Fund (EMFF) are very much dependent on these funds for achieving their policy objectives;

| 7. | wishes also to recall that the EU budget represents only a small share (around 2 %) of the overall public spending within the European Union and in itself is insufficient to deliver the EUR 1.8 trillion of future-oriented direct investments required by Europe 2020. The Committee of the Regions considers therefore that further involvement of RLAs in the new European economic governance framework is crucial and emphasises the importance of RLAs' participation in the context of partnership agreements; |
| --- | --- |

7.

wishes also to recall that the EU budget represents only a small share (around 2 %) of the overall public spending within the European Union and in itself is insufficient to deliver the EUR 1.8 trillion of future-oriented direct investments required by Europe 2020. The Committee of the Regions considers therefore that further involvement of RLAs in the new European economic governance framework is crucial and emphasises the importance of RLAs' participation in the context of partnership agreements;

| 8. | stresses that investment from the European budget has multiplier and leverage effects through the public and private co-financing at regional, local and national level. Public investment in many Member States is heavily dependent on the structural funds, which represent over 30 % of public investment in 13 countries and, in six Member States, even more than 60 %; |
| --- | --- |

8.

stresses that investment from the European budget has multiplier and leverage effects through the public and private co-financing at regional, local and national level. Public investment in many Member States is heavily dependent on the structural funds, which represent over 30 % of public investment in 13 countries and, in six Member States, even more than 60 %;

| 9. | notes that there is no clear picture with regard to the share of the regions and local governments, although is assumed that a large part of the EU budget is spent by national, regional and local authorities, by public authorities, non-governmental organisations, non-profit organisations, private organisations, businesses, universities and educational institutions, individuals, etc., and that overall one third of public expenditure and two thirds of public investment are at regional and local level; |
| --- | --- |

9.

notes that there is no clear picture with regard to the share of the regions and local governments, although is assumed that a large part of the EU budget is spent by national, regional and local authorities, by public authorities, non-governmental organisations, non-profit organisations, private organisations, businesses, universities and educational institutions, individuals, etc., and that overall one third of public expenditure and two thirds of public investment are at regional and local level;

| 10. | is convinced that RLAs play a vital and irreplaceable role regarding the implementation of European policy objectives. RLAs participate directly or indirectly e.g. in:






  — | employment programmes for the unemployed, immigrants, women, etc.; |
| --- | --- | --- |

10.

is convinced that RLAs play a vital and irreplaceable role regarding the implementation of European policy objectives. RLAs participate directly or indirectly e.g. in:

—

employment programmes for the unemployed, immigrants, women, etc.;

| — | programmes to promote youth employment; |
| --- | --- |

—

programmes to promote youth employment;

| — | the social integration of vulnerable groups in society; |
| --- | --- |

—

the social integration of vulnerable groups in society;

| — | the fight against discrimination in the workplace; |
| --- | --- |

—

the fight against discrimination in the workplace;

| — | intercultural dialogue and the dissemination of culture; |
| --- | --- |

—

intercultural dialogue and the dissemination of culture;

| — | the social inclusion and the participation of young people; |
| --- | --- |

—

the social inclusion and the participation of young people;

| — | promoting the social inclusion of people with disabilities; |
| --- | --- |

—

promoting the social inclusion of people with disabilities;

| — | supporting the audio-visual sector; |
| --- | --- |

—

supporting the audio-visual sector;

| — | environmental protection and biodiversity; |
| --- | --- |

—

environmental protection and biodiversity;

| — | the implementation of the Seventh Framework Programme for research and technological development; |
| --- | --- |

—

the implementation of the Seventh Framework Programme for research and technological development;

| — | the programmes for the modernisation and diversification of the economic structure and for job creation in sectors such as ICT, tourism, energy, health, environment, research, etc.; |
| --- | --- |

—

the programmes for the modernisation and diversification of the economic structure and for job creation in sectors such as ICT, tourism, energy, health, environment, research, etc.;

| — | promoting innovation and knowledge; |
| --- | --- |

—

promoting innovation and knowledge;

| — | the access to transport and telecommunications; |
| --- | --- |

—

the access to transport and telecommunications;

| — | promoting energy efficiency and public transport; |
| --- | --- |

—

promoting energy efficiency and public transport;

| — | renewable energy; |
| --- | --- |

—

renewable energy;

| — | cross-border, transnational and interregional cooperation; |
| --- | --- |

—

cross-border, transnational and interregional cooperation;

| — | solving the specific problems of cities, remote areas, etc.; |
| --- | --- |

—

solving the specific problems of cities, remote areas, etc.;

| — | building European transport networks; |
| --- | --- |

—

building European transport networks;

| — | programmes to combat climate change; |
| --- | --- |

—

programmes to combat climate change;

| — | improving the competitiveness of the agricultural sector; |
| --- | --- |

—

improving the competitiveness of the agricultural sector;

| — | improving the quality of life in rural areas; |
| --- | --- |

—

improving the quality of life in rural areas;

| — | diversifying the rural economy; |
| --- | --- |

—

diversifying the rural economy;

| — | sustainable development of fisheries areas, etc.; |
| --- | --- |

—

sustainable development of fisheries areas, etc.;

| 11. | concludes that the regions and local authorities are involved, directly and/or indirectly, in managing or spending more than 75 % of the EU budget (1); |
| --- | --- |

11.

concludes that the regions and local authorities are involved, directly and/or indirectly, in managing or spending more than 75 % of the EU budget (1);

| 12. | welcomes the efforts made by the European Commission to provide information on who receives EU funding, either directly from the European Commission or through the national and regional authorities with a view to increasing responsibility by more transparency, but finds that the publicly available information is inadequate and too sketchy to get an accurate overall picture of the European funds spent and managed by RLAs; |
| --- | --- |

12.

welcomes the efforts made by the European Commission to provide information on who receives EU funding, either directly from the European Commission or through the national and regional authorities with a view to increasing responsibility by more transparency, but finds that the publicly available information is inadequate and too sketchy to get an accurate overall picture of the European funds spent and managed by RLAs;

| 13. | regrets the lack of statistical data allowing the Committee of the Regions to perform its consultative role and requests the European Commission to provide, as from 2014,






  — | consolidated data on the amounts of funds received and RAL (2) per budget line and type of beneficiary, notably subnational public authorities; |
| --- | --- | --- |

13.

regrets the lack of statistical data allowing the Committee of the Regions to perform its consultative role and requests the European Commission to provide, as from 2014,

—

consolidated data on the amounts of funds received and RAL (2) per budget line and type of beneficiary, notably subnational public authorities;

| — | the breakdown of outstanding payment claims not only by country but also by category of beneficiary (national authorities vs. subnational public authorities); |
| --- | --- |

—

the breakdown of outstanding payment claims not only by country but also by category of beneficiary (national authorities vs. subnational public authorities);

| — | the amount of funds raised by national/subnational authorities for cofinancing EU projects under shared management; |
| --- | --- |

—

the amount of funds raised by national/subnational authorities for cofinancing EU projects under shared management;

| 14. | calls on the European Commission, the European Parliament and the European Council to streamline and harmonise the way changes to the draft budgets are presented in order to facilitate the democratic scrutiny process; |
| --- | --- |

14.

calls on the European Commission, the European Parliament and the European Council to streamline and harmonise the way changes to the draft budgets are presented in order to facilitate the democratic scrutiny process;

| 15. | stresses in this respect that the effectiveness of European policy depends on proper application of the principle of multilevel governance, which is considered as a general principle governing the structural funds (3), meaning that all levels of government, each according to their competences, work together in an efficient manner to achieve the policy objectives. The regional and local authorities cannot be considered as beneficiaries in the same way as non-governmental organisations, private organisations, businesses, educational institutions, etc.; |
| --- | --- |

15.

stresses in this respect that the effectiveness of European policy depends on proper application of the principle of multilevel governance, which is considered as a general principle governing the structural funds (3), meaning that all levels of government, each according to their competences, work together in an efficient manner to achieve the policy objectives. The regional and local authorities cannot be considered as beneficiaries in the same way as non-governmental organisations, private organisations, businesses, educational institutions, etc.;

| 16. | supports the initiative of the European Commission on the European Code of Conduct on Partnership (ECCP) as a supplement to the Common Provisions Regulation; the ECCP fleshes out and expands partnership in the preparation, implementation and evaluation of the CSF programmes and funds; is of the opinion that such a partnership is the best guarantee for an effective use of resources and for an alignment with the needs of the region or local community and regrets that the Council has not included the ECCP in the negotiating box, although this code is an important management tool for the programming period 2014-2020; |
| --- | --- |

16.

supports the initiative of the European Commission on the European Code of Conduct on Partnership (ECCP) as a supplement to the Common Provisions Regulation; the ECCP fleshes out and expands partnership in the preparation, implementation and evaluation of the CSF programmes and funds; is of the opinion that such a partnership is the best guarantee for an effective use of resources and for an alignment with the needs of the region or local community and regrets that the Council has not included the ECCP in the negotiating box, although this code is an important management tool for the programming period 2014-2020;

| 17. | calls upon the Commission to report in a clear manner on the way RLAs were involved in a timely and structured way in the drafting of the Partnership Agreements and the Operational Programmes for 2014-2020; |
| --- | --- |

17.

calls upon the Commission to report in a clear manner on the way RLAs were involved in a timely and structured way in the drafting of the Partnership Agreements and the Operational Programmes for 2014-2020;

| 18. | reiterates the necessity to reduce the administrative burden for regional and local authorities and urges the Commission, Council and Parliament to take this into consideration by developing new rules affecting RLAs; |
| --- | --- |

18.

reiterates the necessity to reduce the administrative burden for regional and local authorities and urges the Commission, Council and Parliament to take this into consideration by developing new rules affecting RLAs;

| 19. | recalls its request for proposals by the European Commission to take into account the quality of public spending in the macroeconomic accountancy of the European Union and the Member States. These proposals should in particular address the issue of separating current spending and investment in the budget deficit calculations so as to avoid investments with long-term net benefits being calculated as a negative; |
| --- | --- |

19.

recalls its request for proposals by the European Commission to take into account the quality of public spending in the macroeconomic accountancy of the European Union and the Member States. These proposals should in particular address the issue of separating current spending and investment in the budget deficit calculations so as to avoid investments with long-term net benefits being calculated as a negative;

| 20. | welcomes the efforts undertaken by the European Commission to track public expenditure related to climate action; |
| --- | --- |

20.

welcomes the efforts undertaken by the European Commission to track public expenditure related to climate action;

The multiannual financial framework (MFF) and the regional and local authorities (RLAs)

| 21. | welcomes the fact that a political agreement was reached on 27 June 2013 between the Parliament, the Council Presidency and the Commission on the 2014-2020 Multiannual Financial Framework; |
| --- | --- |

21.

welcomes the fact that a political agreement was reached on 27 June 2013 between the Parliament, the Council Presidency and the Commission on the 2014-2020 Multiannual Financial Framework;

| 22. | is worried that the Commission does not have a proper risk management strategy as to the extent to which cohesion policy could work on the basis of annual budgets in the absence of a multiannual financial framework; |
| --- | --- |

22.

is worried that the Commission does not have a proper risk management strategy as to the extent to which cohesion policy could work on the basis of annual budgets in the absence of a multiannual financial framework;

| 23. | is particularly concerned that the overall level of the next MFF, as decided by the European Council, might not be sufficient to meet the EU ambitions expressed in ‘Europe 2020’ and the ‘Compact for Growth and Jobs’; |
| --- | --- |

23.

is particularly concerned that the overall level of the next MFF, as decided by the European Council, might not be sufficient to meet the EU ambitions expressed in ‘Europe 2020’ and the ‘Compact for Growth and Jobs’;

| 24. | regrets that the ceiling of the MFF for commitment appropriations (EUR 960 billion) is EUR 34 billion lower than for the period 2007-2013, and this at a time when Europe needs the necessary means to recover from the current crisis in a coordinated way, and that this MFF ceiling (EUR 960 billion) is over EUR 80 billion lower than originally proposed by the Commission; |
| --- | --- |

24.

regrets that the ceiling of the MFF for commitment appropriations (EUR 960 billion) is EUR 34 billion lower than for the period 2007-2013, and this at a time when Europe needs the necessary means to recover from the current crisis in a coordinated way, and that this MFF ceiling (EUR 960 billion) is over EUR 80 billion lower than originally proposed by the Commission;

| 25. | supports the EP's position that the MFF regulation cannot be legally adopted unless there is a political agreement on the relevant legal bases; |
| --- | --- |

25.

supports the EP's position that the MFF regulation cannot be legally adopted unless there is a political agreement on the relevant legal bases;

| 26. | regrets that no substantial progress has been made on the reform of the own resources system as a means of reducing Member States' direct contributions to the EU budget; urges therefore the Council, the Commission and the European Parliament to decide without delay on the mandate and the composition of the working group on own resources as provided in the 27th June agreement in view of meeting the deadline of a first assessment in 2014. The working group should be convened at the time of the formal adoption of the MFF Regulation; |
| --- | --- |

26.

regrets that no substantial progress has been made on the reform of the own resources system as a means of reducing Member States' direct contributions to the EU budget; urges therefore the Council, the Commission and the European Parliament to decide without delay on the mandate and the composition of the working group on own resources as provided in the 27th June agreement in view of meeting the deadline of a first assessment in 2014. The working group should be convened at the time of the formal adoption of the MFF Regulation;

| 27. | welcomes the agreement that has been reached on the enhanced flexibility with a view to making full use of the respective MFF ceilings, allowing the automatic carry-over of unused appropriations from one financial year to the next and on the compulsory review and consequent revision of the MFF by the end of 2016; |
| --- | --- |

27.

welcomes the agreement that has been reached on the enhanced flexibility with a view to making full use of the respective MFF ceilings, allowing the automatic carry-over of unused appropriations from one financial year to the next and on the compulsory review and consequent revision of the MFF by the end of 2016;

| 28. | reiterates its clear, firm opposition to any form of macro-economic conditionality, and considers that the option of extending it to all budget headings as requested by some Member States is unhelpful, as it risks heavily penalising regional and local authorities that are not responsible for their Member States' failure to comply with these requirements. Regrets that the macro-economic conditionality is still mentioned in Article 6 of the Draft Council Regulation laying down the multiannual financial framework for the years 2014-2020; |
| --- | --- |

28.

reiterates its clear, firm opposition to any form of macro-economic conditionality, and considers that the option of extending it to all budget headings as requested by some Member States is unhelpful, as it risks heavily penalising regional and local authorities that are not responsible for their Member States' failure to comply with these requirements. Regrets that the macro-economic conditionality is still mentioned in Article 6 of the Draft Council Regulation laying down the multiannual financial framework for the years 2014-2020;

| 29. | reiterates its rejection of the performance reserve since it could encourage the development of unambitious projects and discourage innovation. Regrets the references to it in the political presentation of the 2014 draft budget; |
| --- | --- |

29.

reiterates its rejection of the performance reserve since it could encourage the development of unambitious projects and discourage innovation. Regrets the references to it in the political presentation of the 2014 draft budget;

| 30. | supports the EP's position that the consent vote on the MFF Regulation cannot be granted unless there is an ‘absolute guarantee’ that the outstanding payment claims for 2013 will be covered in full and that therefore the Council should take not only a formal decision on the Draft Amending Budget (DAB) 2/2013 (EUR 7.3 billion) but also stick to its political commitment to adopt without delay a further amending budget (EUR 3.9 billion, to reach the EUR 11.2 billion (4) required) and welcomes in this respect the fact that the Commission has chosen to base its Draft Budget 2014 on the assumption that these two DABs 2013 will be adopted; |
| --- | --- |

30.

supports the EP's position that the consent vote on the MFF Regulation cannot be granted unless there is an ‘absolute guarantee’ that the outstanding payment claims for 2013 will be covered in full and that therefore the Council should take not only a formal decision on the Draft Amending Budget (DAB) 2/2013 (EUR 7.3 billion) but also stick to its political commitment to adopt without delay a further amending budget (EUR 3.9 billion, to reach the EUR 11.2 billion (4) required) and welcomes in this respect the fact that the Commission has chosen to base its Draft Budget 2014 on the assumption that these two DABs 2013 will be adopted;

| 31. | stresses that it will carefully monitor whether a slow programming start and a slow absorption will have a negative impact on the mid-term review of the MFF planned for 2016; |
| --- | --- |

31.

stresses that it will carefully monitor whether a slow programming start and a slow absorption will have a negative impact on the mid-term review of the MFF planned for 2016;

The structural deficit of the EU budget

| 32. | is concerned about the fact that the MFF 2014-2020 introduces an additional structural deficit in the European budget of EUR 52 billion. RLAs, being heavily dependent on European funds for their investments, see it as a very dangerous trend, as the Commission will not be able to honour on time the commitments made for lack of payment appropriations and notes that the creation of such a structural deficit in the European budget is contrary to the provisions of the Treaty (Articles 310 and 323 TFEU); |
| --- | --- |

32.

is concerned about the fact that the MFF 2014-2020 introduces an additional structural deficit in the European budget of EUR 52 billion. RLAs, being heavily dependent on European funds for their investments, see it as a very dangerous trend, as the Commission will not be able to honour on time the commitments made for lack of payment appropriations and notes that the creation of such a structural deficit in the European budget is contrary to the provisions of the Treaty (Articles 310 and 323 TFEU);

| 33. | expresses its great surprise that even with the assumption that the two DABs 2013, adding a total of EUR 11.2 billion of extra payments for 2013, are adopted, it is still expected that there will be at the end of 2013 a RAL of approximately EUR 225 billion (5) from 2007-2013 programmes in the new financing period, which represents about 25 % of the total MFF ceiling for payments over 2014-2020 (EUR 908.4 billion) and 1.6 times the annual EU budget; |
| --- | --- |

33.

expresses its great surprise that even with the assumption that the two DABs 2013, adding a total of EUR 11.2 billion of extra payments for 2013, are adopted, it is still expected that there will be at the end of 2013 a RAL of approximately EUR 225 billion (5) from 2007-2013 programmes in the new financing period, which represents about 25 % of the total MFF ceiling for payments over 2014-2020 (EUR 908.4 billion) and 1.6 times the annual EU budget;

| 34. | notes that this amount of RAL contrasts with the political objective expressed by the EP in the negotiations to start the new programming period from a clean slate and warns that there will be at the end of 2020 a RAL of approximately EUR 277 billion (6) and that this gap, i.e. structural deficit, will increase MFF after MFF; |
| --- | --- |

34.

notes that this amount of RAL contrasts with the political objective expressed by the EP in the negotiations to start the new programming period from a clean slate and warns that there will be at the end of 2020 a RAL of approximately EUR 277 billion (6) and that this gap, i.e. structural deficit, will increase MFF after MFF;

| 35. | points out that the two areas which contribute most to the overall level of RAL are cohesion policy (two thirds of the total) and rural development, and recommends that solutions be found to avoid an accumulation of RAL over years; |
| --- | --- |

35.

points out that the two areas which contribute most to the overall level of RAL are cohesion policy (two thirds of the total) and rural development, and recommends that solutions be found to avoid an accumulation of RAL over years;

| 36. | supports the call by the European Parliament on the European Commission to ‘provide monthly reports (...) on the evolution of Member States' payment claims for the structural funds, cohesion fund, rural development and fisheries funds (breakdown per Member State and per fund)’; |
| --- | --- |

36.

supports the call by the European Parliament on the European Commission to ‘provide monthly reports (...) on the evolution of Member States' payment claims for the structural funds, cohesion fund, rural development and fisheries funds (breakdown per Member State and per fund)’;

| 37. | notes that about one third of the total RAL (EUR 70.7 billion) will be paid in 2014, but concurs with the concerns expressed by the European Commission with regard to the financial years 2015 and 2016 and that, whilst the year 2014, being the first of the new MFF, has room of manoeuvre with payment appropriations since the new programmes will take time to start up (especially those under shared management), this flexibility will become smaller and smaller with years passing; |
| --- | --- |

37.

notes that about one third of the total RAL (EUR 70.7 billion) will be paid in 2014, but concurs with the concerns expressed by the European Commission with regard to the financial years 2015 and 2016 and that, whilst the year 2014, being the first of the new MFF, has room of manoeuvre with payment appropriations since the new programmes will take time to start up (especially those under shared management), this flexibility will become smaller and smaller with years passing;

| 38. | underlines in this respect the positive aspect of the MFF agreement (7) on flexibility possibilities within the MFF and the so-called ‘global margin for payments’ (8); |
| --- | --- |

38.

underlines in this respect the positive aspect of the MFF agreement (7) on flexibility possibilities within the MFF and the so-called ‘global margin for payments’ (8);

| 39. | expresses its concern that the Commission is not foreseeing any margin for the year 2014, since the level of payments is set at EUR 136.1 billion which means that the Commission will have no extra margin for 2015 and that the structural deficit risks accumulating again with the run-up of the new programmes in 2014-2020 and the remaining backlog from 2007-2013 (+/-EUR 155 billion); |
| --- | --- |

39.

expresses its concern that the Commission is not foreseeing any margin for the year 2014, since the level of payments is set at EUR 136.1 billion which means that the Commission will have no extra margin for 2015 and that the structural deficit risks accumulating again with the run-up of the new programmes in 2014-2020 and the remaining backlog from 2007-2013 (+/-EUR 155 billion);

| 40. | draws attention to the consequences of the new ‘n+3’ rule for decommitments in the field of cohesion policy in terms of RAL accumulation in the coming years. In this respect the Committee of the Regions recommends that the payment of outstanding claims from 2007-2013 be given priority in 2014-2016 (EUR 70 billion every year over three years), since the payment claims for the new programming period will most probably start building up in 2017-2018 (2014 + 3 years, counting with the delay in the start-up of programmes in 2014 due to the late MFF agreement); |
| --- | --- |

40.

draws attention to the consequences of the new ‘n+3’ rule for decommitments in the field of cohesion policy in terms of RAL accumulation in the coming years. In this respect the Committee of the Regions recommends that the payment of outstanding claims from 2007-2013 be given priority in 2014-2016 (EUR 70 billion every year over three years), since the payment claims for the new programming period will most probably start building up in 2017-2018 (2014 + 3 years, counting with the delay in the start-up of programmes in 2014 due to the late MFF agreement);

| 41. | finds it unacceptable that payments are delayed and urges that the payment deadline of 60 days for programmes under shared management should be binding and that there should be a legal or financial penalty if this is not done within the deadline and that the already existing financial penalty (interest) for programmes centrally managed (e.g. Framework Programme 7 /future ‘Horizon 2020’ related projects) could be envisaged for other funds when payments do not meet the deadline. This is a particularly important issue for regional and local authorities waiting for reimbursements. The Committee of the Regions therefore expects a solution to this to be found in the next revision of the EU Financial Regulation; |
| --- | --- |

41.

finds it unacceptable that payments are delayed and urges that the payment deadline of 60 days for programmes under shared management should be binding and that there should be a legal or financial penalty if this is not done within the deadline and that the already existing financial penalty (interest) for programmes centrally managed (e.g. Framework Programme 7 /future ‘Horizon 2020’ related projects) could be envisaged for other funds when payments do not meet the deadline. This is a particularly important issue for regional and local authorities waiting for reimbursements. The Committee of the Regions therefore expects a solution to this to be found in the next revision of the EU Financial Regulation;

| 42. | regrets the proliferation of amending budgets during the implementation year resulting from unrealistically low estimations in payment needs imposed by the Council, the Commission and the Parliament. For 2013 there have been already 5 draft amending budgets, whilst in 2010 there had been 10 of them; |
| --- | --- |

42.

regrets the proliferation of amending budgets during the implementation year resulting from unrealistically low estimations in payment needs imposed by the Council, the Commission and the Parliament. For 2013 there have been already 5 draft amending budgets, whilst in 2010 there had been 10 of them;

| 43. | urges the Commission, the Parliament and the Council to come forward with structural solutions to settle the EU's structural budget deficit so that the committed revenues of RLAs should no longer be threatened by a shortfall of European payment appropriations; |
| --- | --- |

43.

urges the Commission, the Parliament and the Council to come forward with structural solutions to settle the EU's structural budget deficit so that the committed revenues of RLAs should no longer be threatened by a shortfall of European payment appropriations;

The EU draft budget 2014: strategic priorities for RLAs

Europe 2020

| 44. | reaffirms that subnational public investment tends to be concentrated in a number of key priority sectors that are critical for the success of the Europe 2020 strategy; reiterates its call for a stronger political priority to be given to creating synergies between the EU, Member States, regions, and local authorities' budgets focused on delivering agreed EU priorities; |
| --- | --- |

44.

reaffirms that subnational public investment tends to be concentrated in a number of key priority sectors that are critical for the success of the Europe 2020 strategy; reiterates its call for a stronger political priority to be given to creating synergies between the EU, Member States, regions, and local authorities' budgets focused on delivering agreed EU priorities;

| 45. | welcomes the Commission's initiative to track all public expenditure dedicated to the financing of the Europe 2020 strategy, but is surprised that the seven flagships are taken as a basis, rather than the five headline targets (on employment, innovation, education, social inclusion and climate/energy); |
| --- | --- |

45.

welcomes the Commission's initiative to track all public expenditure dedicated to the financing of the Europe 2020 strategy, but is surprised that the seven flagships are taken as a basis, rather than the five headline targets (on employment, innovation, education, social inclusion and climate/energy);

| 46. | regrets the absence of any reference to the 11 thematic objectives of the Common Provisions Regulation on which the European Structural and Investment Funds need to be concentrated (9), which should be in line with the Common Strategic Framework (CSF) proposed by the European Commission on 14 March 2012; |
| --- | --- |

46.

regrets the absence of any reference to the 11 thematic objectives of the Common Provisions Regulation on which the European Structural and Investment Funds need to be concentrated (9), which should be in line with the Common Strategic Framework (CSF) proposed by the European Commission on 14 March 2012;

| 47. | reiterates its call for flexibility in order to respect territorial specificities of regions and cities; |
| --- | --- |

47.

reiterates its call for flexibility in order to respect territorial specificities of regions and cities;

| 48. | regrets the absence of references to the European Semester in the political presentation of EU budget's priorities for 2014. Regrets furthermore that the Commission has ignored the call of the EP to provide factual and concrete data on how its proposed draft EU budget can actually play a triggering, catalytic, synergetic and complementary role to investments at local, regional and national levels to implement the priorities agreed in the framework of the European semester
   (10); and therefore urges, on the basis of the principle of multi-level governance, the involvement of regions, and in particular regions with legislative powers, in the European semester; |
| --- | --- |

48.

regrets the absence of references to the European Semester in the political presentation of EU budget's priorities for 2014. Regrets furthermore that the Commission has ignored the call of the EP to provide factual and concrete data on how its proposed draft EU budget can actually play a triggering, catalytic, synergetic and complementary role to investments at local, regional and national levels to implement the priorities agreed in the framework of the European semester
   (10); and therefore urges, on the basis of the principle of multi-level governance, the involvement of regions, and in particular regions with legislative powers, in the European semester;

The Youth Employment Initiative (YEI)

| 49. | supports the Youth Employment Initiative and requests that the YEI be part of future partnership agreements, while highlighting that regions and local authorities must be fully engaged in delivering any employment initiative given that they are best placed to assess local employment markets and tailor made programmes for young people and also given that many regions have full competence in this policy field; |
| --- | --- |

49.

supports the Youth Employment Initiative and requests that the YEI be part of future partnership agreements, while highlighting that regions and local authorities must be fully engaged in delivering any employment initiative given that they are best placed to assess local employment markets and tailor made programmes for young people and also given that many regions have full competence in this policy field;

| 50. | regrets that the YEI is being created alongside the other funds instead of using the ESF framework to tackle the issue, thereby increasing the administrative burden for beneficiaries; |
| --- | --- |

50.

regrets that the YEI is being created alongside the other funds instead of using the ESF framework to tackle the issue, thereby increasing the administrative burden for beneficiaries;

| 51. | notes that the Commission proposed the full frontloading (EUR 6 billion) (11) of the YEI in 2014-2015 and suggests that a full frontloading should be accompanied by appropriate measures (e.g. capacity building) for quick implementation given the impossibility of adopting the draft Common Provisions Regulation and ESF regulation before the MFF regulation, i.e. towards the end of 2013, leading to a delay in implementation, and given the broader uncertainties with regard to how this YEI will be implemented by Member States/Regions in practice and to its absorption speed; calls in addition for Article 9f of the MFF regulation to be amended in order to remove the explicit limitation of the new YEI budget line to EUR 3 bn. This move would be all the more necessary in order to avoid any backloading after 2016 of programmes which are critical for cohesion such as cross border cooperation programmes or parts of the Connecting Europe Facility; |
| --- | --- |

51.

notes that the Commission proposed the full frontloading (EUR 6 billion) (11) of the YEI in 2014-2015 and suggests that a full frontloading should be accompanied by appropriate measures (e.g. capacity building) for quick implementation given the impossibility of adopting the draft Common Provisions Regulation and ESF regulation before the MFF regulation, i.e. towards the end of 2013, leading to a delay in implementation, and given the broader uncertainties with regard to how this YEI will be implemented by Member States/Regions in practice and to its absorption speed; calls in addition for Article 9f of the MFF regulation to be amended in order to remove the explicit limitation of the new YEI budget line to EUR 3 bn. This move would be all the more necessary in order to avoid any backloading after 2016 of programmes which are critical for cohesion such as cross border cooperation programmes or parts of the Connecting Europe Facility;

Budget cuts in crucial programmes

| 52. | is particularly worried about the cuts made in several budget headings that are essential for achieving the long-term investment needed for a swift economic recovery, notably in cohesion policy, rural development, COSME, or Horizon 2020; |
| --- | --- |

52.

is particularly worried about the cuts made in several budget headings that are essential for achieving the long-term investment needed for a swift economic recovery, notably in cohesion policy, rural development, COSME, or Horizon 2020;

| 53. | requests, in line with Article 9f of the draft MFF Council Regulation of 27 June 2013, further frontloading in commitment appropriations of up to EUR 200 million for Horizon 2020, EUR 150 million for Erasmus and EUR 50 million for COSME in 2014-2015; |
| --- | --- |

53.

requests, in line with Article 9f of the draft MFF Council Regulation of 27 June 2013, further frontloading in commitment appropriations of up to EUR 200 million for Horizon 2020, EUR 150 million for Erasmus and EUR 50 million for COSME in 2014-2015;

| 54. | is not surprised that commitment appropriations for 2014 in the field of cohesion are minimal given the delays (12) expected with the implementation of partnership agreements and operational programmes, but invites the Member States to focus on the operational programmes in order to activate the funds already in 2014; |
| --- | --- |

54.

is not surprised that commitment appropriations for 2014 in the field of cohesion are minimal given the delays (12) expected with the implementation of partnership agreements and operational programmes, but invites the Member States to focus on the operational programmes in order to activate the funds already in 2014;

| 55. | regrets the deletion of the budget item related to the Erasmus for elected local and regional representatives under heading 1b (budget item 13 03 77 11) and request its continuation based on the CoR experience with this initiative; |
| --- | --- |

55.

regrets the deletion of the budget item related to the Erasmus for elected local and regional representatives under heading 1b (budget item 13 03 77 11) and request its continuation based on the CoR experience with this initiative;

| 56. | welcomes the increase of 10.3 % in commitment appropriations for the LIFE+ programme compared to 2013 but finds the reduction in payment appropriations (– 1.1 %) incomprehensible; |
| --- | --- |

56.

welcomes the increase of 10.3 % in commitment appropriations for the LIFE+ programme compared to 2013 but finds the reduction in payment appropriations (– 1.1 %) incomprehensible;

| 57. | welcomes the major shift from direct management to shared management for the EMFF, though this means lower payments at the beginning of the financing period; |
| --- | --- |

57.

welcomes the major shift from direct management to shared management for the EMFF, though this means lower payments at the beginning of the financing period;

| 58. | welcomes the provision inserted in Article 8 of the draft MFF Council regulation, which allows the MFF to be revised in order to transfer to subsequent years, in excess of the corresponding expenditure ceilings, allocations not used in 2014 in the case of the adoption after 1st January 2014 of new rules or programmes under shared management; |
| --- | --- |

58.

welcomes the provision inserted in Article 8 of the draft MFF Council regulation, which allows the MFF to be revised in order to transfer to subsequent years, in excess of the corresponding expenditure ceilings, allocations not used in 2014 in the case of the adoption after 1st January 2014 of new rules or programmes under shared management;

Budgetary flexibility

| 59. | welcomes the fact that a transfer of EUR 351.9 million is foreseen from the first to the second pillar of the common agriculture policy (CAP) and reiterates its firm opposition to transfers in the other direction; |
| --- | --- |

59.

welcomes the fact that a transfer of EUR 351.9 million is foreseen from the first to the second pillar of the common agriculture policy (CAP) and reiterates its firm opposition to transfers in the other direction;

| 60. | stresses that neither the European Council conclusions of 7-8 February 2013 nor the draft MFF Council Regulation of 27 June 2013 foresee a sub-ceiling for cohesion policy, which has been transformed instead into a sub-heading. On this basis the Committee disputes the numerous references to this sub-ceiling in the presentation of the Draft Budget 2014 (13) and therefore argues in favour of commitment/payment appropriation transfers within heading 1, where relevant; |
| --- | --- |

60.

stresses that neither the European Council conclusions of 7-8 February 2013 nor the draft MFF Council Regulation of 27 June 2013 foresee a sub-ceiling for cohesion policy, which has been transformed instead into a sub-heading. On this basis the Committee disputes the numerous references to this sub-ceiling in the presentation of the Draft Budget 2014 (13) and therefore argues in favour of commitment/payment appropriation transfers within heading 1, where relevant;

| 61. | welcomes the ‘global margin for growth and employment’, which will be constituted with margins left available below the MFF ceilings for commitment appropriations for the years 2014-2017, appreciates that the related commitment appropriations can be used ‘over and above’ the ceilings for the years 2016 to 2020 (14), and suggests that this extra flexibility be used for heading 1b. |
| --- | --- |

61.

welcomes the ‘global margin for growth and employment’, which will be constituted with margins left available below the MFF ceilings for commitment appropriations for the years 2014-2017, appreciates that the related commitment appropriations can be used ‘over and above’ the ceilings for the years 2016 to 2020 (14), and suggests that this extra flexibility be used for heading 1b.

Brussels, 8 October 2013.

The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO

---

(1)  This calculation is based on the commitments in the initial budget 2013 and the following major budget items are concerned: the European Social Fund, Agricultural support, European Agricultural Fund for Rural Development, Trans-European Transport Network, Life +, research programmes, Fisheries Fund, European Regional Development Fund, Cohesion Fund, Instrument for pre-Accession Assistance, Programme Lifelong Learning, Culture, Youth in Action, Media 2007, European Neighbourhood and Partnership Instrument.

1

(2)  RAL: ‘reste à liquider’ (French expression commonly used in English) which means outstanding payment claims. The difference between the level of commitments and the level of related payments each year represents the additional RAL for that year.

2

(3)  Proposal for a Regulation of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund covered by the Common Strategic Framework and laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Council Regulation (EC) No 1083/2006

3

{SEC(2011) 1141 final} {SEC(2011) 1142 final}.

(4)  A contradicting figure of EUR 16.2 billion had been mentioned by the European Commission with regard to outstanding payments at year end 2012 but the European Commission is now sticking to this new figure for 2013. EUR 11.2 billion concerns all EU budget headings, out of which heading 1b (cohesion policy) represents EUR 9 billion.

4

(5)  European Commission, Statement of estimates of the European Commission for the financial year 2014 (Preparation of the 2014 Draft Budget), SEC(2013) 370, June 2013, Annex III-Payment request overview, p. 86.

5

(6)  EUR 277 billion (Formula from 2007-2013 and earlier periods expected to be paid in 2014-2020).

6

(7)  Draft Council regulation laying down the multiannual financial framework for the years 2014-2020, 27 June 2013, Article 3A.

7

(8)  The ‘global margin for payments’ specifies that every year, starting in 2015, the Commission will adjust the payment ceiling upwards by an amount equivalent to the difference between payment outturns and the MFF payment ceiling for year n-1 (e.g. 2014).

8

(9)  Lambert van Nistelrooij/Constanze Angela Krehl — Draft report on the Proposal for a regulation of the European Parliament and of the Council laying down common provisions (...), adopted in the EP Committee on 10 July, Article 9: Thematic objectives: (1) Strengthening research, technological development, innovation, (2) enhancing access to, and use and quality of, information and communication technologies, (3) enhancing the competiveness of SMEs, the agricultural sector and the fisheries and aquaculture sector, (4) supporting the shift towards a low-carbon economy in all sectors, (5) promoting climate change adaptation, risk prevention and management, (6) preserving and protecting the environment, and promoting resource efficiency, (7) removing bottlenecks in key network infrastructures and filling in missing links, (8) promoting sustainable and quality employment and supporting labour mobility, (9) promoting social inclusion, combating poverty and any discrimination, (10) investing in education, training and vocational training for skills and lifelong learning, (11) enhancing institutional capacity of public authorities and stakeholders and efficient public administration.

9

(10)  European Parliament Resolution of 13 March 2013 on the general guidelines for the preparation of-n the 2014 budget, Section III — Commission point 22.

10

(11)  i.e. the frontloading of both the EUR 2.143 billion specific top-up allocation agreed in the EP-Council MFF agreement of 27 June 2013 (Article 9f) and the EUR 3 billion carved out from the ESF budget.

11

(12)  In 2006, the general regulation was published in the official journal at the end of July, whereas this time no publication is expected before November-December, i.e. an additional 5 or 6 months delay compared to the previous financing period (which had already faced a substantial delay).

12

(13)  The only agreed sub-ceilings are for market related expenditure and direct payments under heading 2 and administrative expenditure under heading 5.

13

(14)  See Article 9g of the draft MFF Council Regulation.

14

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| 5.12.2013 | EN | Official Journal of the European Union | C 356/23 |
| --- | --- | --- | --- |

5.12.2013

EN

Official Journal of the European Union

C 356/23

---

Opinion of the Committee of the Regions on ‘Local and regional authorities perspective on shale/tight gas and oil (unconventional hydrocarbons)’

2013/C 356/05

THE COMMITTEE OF THE REGIONS

| — | concurs with the European Commissioner for the Environment that studies carried out to date indicate that there are a number of uncertainties or gaps in current EU legislation, stresses that addressing health and environmental risks will be of paramount importance if the industry is to gain public acceptance and calls on the EC to deliver a framework on managing the risks and addressing shortcomings in relevant EU regulation; |
| --- | --- |

—

concurs with the European Commissioner for the Environment that studies carried out to date indicate that there are a number of uncertainties or gaps in current EU legislation, stresses that addressing health and environmental risks will be of paramount importance if the industry is to gain public acceptance and calls on the EC to deliver a framework on managing the risks and addressing shortcomings in relevant EU regulation;

| — | requests that decisions by Local and Regional Authorities to prohibit, limit and control development/activity associated with the extraction of unconventional hydrocarbons are respected. Local and regional authorities should possess the right to exclude sensitive areas (e.g. potable water protection zones, villages, arable land, etc.) from possible Unconventional Hydrocarbon Development activities; |
| --- | --- |

—

requests that decisions by Local and Regional Authorities to prohibit, limit and control development/activity associated with the extraction of unconventional hydrocarbons are respected. Local and regional authorities should possess the right to exclude sensitive areas (e.g. potable water protection zones, villages, arable land, etc.) from possible Unconventional Hydrocarbon Development activities;

| — | underlines the crucial importance of the principle of transparency and of involving affected sections of the public as well as local and regional authorities in decision-making in this sensitive area, and is concerned that not enough consideration is yet given to these principles in all Member States; |
| --- | --- |

—

underlines the crucial importance of the principle of transparency and of involving affected sections of the public as well as local and regional authorities in decision-making in this sensitive area, and is concerned that not enough consideration is yet given to these principles in all Member States;

| — | supports the proposal that unconventional hydrocarbons should be included in Annex I of the revised EU Environmental Impact Assessment (EIA) directive, so that the relevant projects are systematically made subject to EIA, and calls on the European Commission to explore the establishment of common environmental standards for exploration and extraction of unconventional hydrocarbons in the EU to facilitate coherent and understandable EIAs. |
| --- | --- |

—

supports the proposal that unconventional hydrocarbons should be included in Annex I of the revised EU Environmental Impact Assessment (EIA) directive, so that the relevant projects are systematically made subject to EIA, and calls on the European Commission to explore the establishment of common environmental standards for exploration and extraction of unconventional hydrocarbons in the EU to facilitate coherent and understandable EIAs.

| Rapporteur | Cllr Brian MEANEY (IE/EA), Clare County Council and Mid-West Regional Authority |
| --- | --- |
| Reference document | Own-initiative opinion |

Rapporteur

Cllr Brian MEANEY (IE/EA), Clare County Council and Mid-West Regional Authority

Reference document

Own-initiative opinion

I.   POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS

| 1. | acknowledges Europe needs affordable, carbon neutral, sustainable, globally competitive, secure energy sources. This represents a major challenge to the European Union. This has led to the need for Member States to seek every alternative which has prompted significant interest in unconventional hydrocarbons. This interest has developed in the context of a currently differing and uncoordinated regulatory framework across the EU; points out, however, that unconventional hydrocarbons are not sustainable in terms of either climate change or long-term energy supply, and entail high risks; |
| --- | --- |

1.

acknowledges Europe needs affordable, carbon neutral, sustainable, globally competitive, secure energy sources. This represents a major challenge to the European Union. This has led to the need for Member States to seek every alternative which has prompted significant interest in unconventional hydrocarbons. This interest has developed in the context of a currently differing and uncoordinated regulatory framework across the EU; points out, however, that unconventional hydrocarbons are not sustainable in terms of either climate change or long-term energy supply, and entail high risks;

| 2. | recognises the significant environmental and health risks posed by the process of high volume slick-water horizontal hydraulic fracturing (Unconventional Hydrocarbon Development) used to access unconventional hydrocarbons; |
| --- | --- |

2.

recognises the significant environmental and health risks posed by the process of high volume slick-water horizontal hydraulic fracturing (Unconventional Hydrocarbon Development) used to access unconventional hydrocarbons;

| 3. | stresses the need for a strong policy response from the European Commission and calls on the European Commission to require Member States to provide competent Regional and Local Authorities the resources to correctly fulfil the regulatory and oversight roles and responsibilities, particularly in the social and environmental fields, including the proper management of all natural resources, relevant to the varying competences of Regional and Local Authorities across the EU; |
| --- | --- |

3.

stresses the need for a strong policy response from the European Commission and calls on the European Commission to require Member States to provide competent Regional and Local Authorities the resources to correctly fulfil the regulatory and oversight roles and responsibilities, particularly in the social and environmental fields, including the proper management of all natural resources, relevant to the varying competences of Regional and Local Authorities across the EU;

| 4. | stresses that the transition towards the possibility of 100 % renewable energy sources must be kept in clear view, and that the attention and resources needed for this transition must not be diverted to ‘unconventional’ or other forms of energy. Acknowledges the role that unconventional hydrocarbons may have in the transitional stage between fossil and renewable energy; |
| --- | --- |

4.

stresses that the transition towards the possibility of 100 % renewable energy sources must be kept in clear view, and that the attention and resources needed for this transition must not be diverted to ‘unconventional’ or other forms of energy. Acknowledges the role that unconventional hydrocarbons may have in the transitional stage between fossil and renewable energy;

A.   
  General principles

| 5. | noting the Lisbon Treaty (2009, Art. 194), each Member State has ‘the right to determine the conditions for exploiting its energy sources, its choice between different energy sources and the general structure of its energy supply’. There are therefore very different positions on shale gas across the EU. The CoR requests that the competences, responsibilities, opinions and views of local and regional authorities be acknowledged, respected and heeded by all and in particular, the European Commission, when drafting the proposals to enable safe and secure unconventional hydrocarbon extraction which respects local natural resources; |
| --- | --- |

5.

noting the Lisbon Treaty (2009, Art. 194), each Member State has ‘the right to determine the conditions for exploiting its energy sources, its choice between different energy sources and the general structure of its energy supply’. There are therefore very different positions on shale gas across the EU. The CoR requests that the competences, responsibilities, opinions and views of local and regional authorities be acknowledged, respected and heeded by all and in particular, the European Commission, when drafting the proposals to enable safe and secure unconventional hydrocarbon extraction which respects local natural resources;

| 6. | taking account of local and regional authorities competence, specific local knowledge and resource constraints, taking further account of the substantial multiple impacts and risks of unconventional hydrocarbon extraction, the CoR requests that decisions by Local and Regional Authorities to prohibit, limit and control development/activity associated with the extraction of unconventional hydrocarbons are respected. Stresses that local and regional authorities should possess the right to exclude sensitive areas (e.g. potable water protection zones, villages, arable land, etc.) from possible Unconventional Hydrocarbon Development activities or where those activities would render authorities unable to meet their targets for reducing greenhouse gas emissions. Moreover, local and regional authorities should be strengthened in their autonomy to decide about the banning of Unconventional Hydrocarbon Development in their territory; draws attention, in this connection, to the bans on the extraction of unconventional hydrocarbons adopted in, for example, Bulgaria, France, Luxembourg, the Swiss canton of Fribourg and the Spanish region of Cantabria; |
| --- | --- |

6.

taking account of local and regional authorities competence, specific local knowledge and resource constraints, taking further account of the substantial multiple impacts and risks of unconventional hydrocarbon extraction, the CoR requests that decisions by Local and Regional Authorities to prohibit, limit and control development/activity associated with the extraction of unconventional hydrocarbons are respected. Stresses that local and regional authorities should possess the right to exclude sensitive areas (e.g. potable water protection zones, villages, arable land, etc.) from possible Unconventional Hydrocarbon Development activities or where those activities would render authorities unable to meet their targets for reducing greenhouse gas emissions. Moreover, local and regional authorities should be strengthened in their autonomy to decide about the banning of Unconventional Hydrocarbon Development in their territory; draws attention, in this connection, to the bans on the extraction of unconventional hydrocarbons adopted in, for example, Bulgaria, France, Luxembourg, the Swiss canton of Fribourg and the Spanish region of Cantabria;

| 7. | concurs with the EP that voluntary guidelines that exist for the industry requiring companies to address the negative social and environmental impact of the activities of extractive industries, such as the Global Reporting Initiative, the UN Global Compact and the OECD Guidelines for Multinational Enterprises are insufficient to mitigate the negative impact of extraction; |
| --- | --- |

7.

concurs with the EP that voluntary guidelines that exist for the industry requiring companies to address the negative social and environmental impact of the activities of extractive industries, such as the Global Reporting Initiative, the UN Global Compact and the OECD Guidelines for Multinational Enterprises are insufficient to mitigate the negative impact of extraction;

| 8. | concurs with the European Commissioner for the Environment that studies carried out to date indicate that there are a number of uncertainties or gaps in current EU legislation, stresses that addressing health and environmental risks will be of paramount importance if the industry is to gain public acceptance and calls on the EC to deliver a framework on managing the risks and addressing shortcomings in relevant EU regulation; |
| --- | --- |

8.

concurs with the European Commissioner for the Environment that studies carried out to date indicate that there are a number of uncertainties or gaps in current EU legislation, stresses that addressing health and environmental risks will be of paramount importance if the industry is to gain public acceptance and calls on the EC to deliver a framework on managing the risks and addressing shortcomings in relevant EU regulation;

| 9. | requests the commission to consider asking Member States to limit Unconventional Hydrocarbon Development until the regulatory gaps in the relevant EU directives are amended; |
| --- | --- |

9.

requests the commission to consider asking Member States to limit Unconventional Hydrocarbon Development until the regulatory gaps in the relevant EU directives are amended;

| 10. | notwithstanding Member States prerogative in exploiting its energy resources, any development of unconventional hydrocarbons should ensure a fair and level playing field across the Union in full compliance with relevant European law safeguarding the environment and public health. A clear and legally binding regulatory framework of the EU, preferably in the form of a directive on the exploration and extraction of unconventional hydrocarbons, to provide an adequate guarantee against the risks to the environment and human health resulting from shale gas activities; |
| --- | --- |

10.

notwithstanding Member States prerogative in exploiting its energy resources, any development of unconventional hydrocarbons should ensure a fair and level playing field across the Union in full compliance with relevant European law safeguarding the environment and public health. A clear and legally binding regulatory framework of the EU, preferably in the form of a directive on the exploration and extraction of unconventional hydrocarbons, to provide an adequate guarantee against the risks to the environment and human health resulting from shale gas activities;

| 11. | believes that the EU environmental policy precautionary principal should be consistently implemented across the EU, and that environmental impact assessment should be mandatory, irrespective of the scale of exploration and extraction of unconventional hydrocarbons, taking account of economic interests, and the need to ensure security of energy supply and support for sustainable development; |
| --- | --- |

11.

believes that the EU environmental policy precautionary principal should be consistently implemented across the EU, and that environmental impact assessment should be mandatory, irrespective of the scale of exploration and extraction of unconventional hydrocarbons, taking account of economic interests, and the need to ensure security of energy supply and support for sustainable development;

| 12. | insists that mandatory Life Cycle Analysis, is conducted for each individual Unconventional Hydrocarbon Development project ahead of exploitation authorisation as the cornerstone of a new EU directive concerning the exploration and exploitation of unconventional hydrocarbons in the EU; |
| --- | --- |

12.

insists that mandatory Life Cycle Analysis, is conducted for each individual Unconventional Hydrocarbon Development project ahead of exploitation authorisation as the cornerstone of a new EU directive concerning the exploration and exploitation of unconventional hydrocarbons in the EU;

| 13. | underlines the crucial importance of the principle of transparency and of involving affected sections of the public as well as local and regional authorities in decision-making in this sensitive area, and is concerned that not enough consideration is yet given to these principles in all Member States; |
| --- | --- |

13.

underlines the crucial importance of the principle of transparency and of involving affected sections of the public as well as local and regional authorities in decision-making in this sensitive area, and is concerned that not enough consideration is yet given to these principles in all Member States;

B.   
  General understandings

| 14. | noting recent technological advancements have spurred a rapid, commercial scale extraction of unconventional gas in certain parts of the world, notably in the U.S. where shale gas has been labelled as a ‘game changer’, the CoR is aware of the technical and economic limits of shale gas in the EU. There is growing awareness that Europe may be unlikely to experience the kind of boom seen in the U.S. (1). European resources of unconventional gas are seen as at best compensating for the decline in conventional gas production, limited in part by the different geology (2), legislation and also by higher population density. Acknowledges that substantial assessment is still required in this area. |
| --- | --- |

14.

noting recent technological advancements have spurred a rapid, commercial scale extraction of unconventional gas in certain parts of the world, notably in the U.S. where shale gas has been labelled as a ‘game changer’, the CoR is aware of the technical and economic limits of shale gas in the EU. There is growing awareness that Europe may be unlikely to experience the kind of boom seen in the U.S. (1). European resources of unconventional gas are seen as at best compensating for the decline in conventional gas production, limited in part by the different geology (2), legislation and also by higher population density. Acknowledges that substantial assessment is still required in this area.

| 15. | notes also that unconventional hydrocarbon wells dry up much more quickly than conventional hydrocarbon wells, and more drilling is therefore needed, with the resulting impact on production costs. Notes, however, that unconventional hydrocarbon extraction takes place using modern techniques e.g. horizontal drilling and multi-well pads (where several wells are drilled on a single pad), which may reduce the impact on the environment and local area. |
| --- | --- |

15.

notes also that unconventional hydrocarbon wells dry up much more quickly than conventional hydrocarbon wells, and more drilling is therefore needed, with the resulting impact on production costs. Notes, however, that unconventional hydrocarbon extraction takes place using modern techniques e.g. horizontal drilling and multi-well pads (where several wells are drilled on a single pad), which may reduce the impact on the environment and local area.

| 16. | at current gas prices the CoR considers that the potential for shale gas is too small to have a substantial impact on the European gas supply situation. Even an accelerated development of gas shales in Europe could only contribute to the European gas supplies at one-digit percentage share at best. It will not reverse the continuing trend of declining domestic production and rising import dependency (3); Acknowledges that further assessment is required in this area. |
| --- | --- |

16.

at current gas prices the CoR considers that the potential for shale gas is too small to have a substantial impact on the European gas supply situation. Even an accelerated development of gas shales in Europe could only contribute to the European gas supplies at one-digit percentage share at best. It will not reverse the continuing trend of declining domestic production and rising import dependency (3); Acknowledges that further assessment is required in this area.

| 17. | conscious that lax regulation may have been one of the preconditions for the economic viability of shale gas, since shale gas's exemption from a number of environmental protection acts has been one of the driving forces behind the shale gas boom in the U.S., for example the exact composition of fracking additives is protected by the patent law and does not have to be disclosed; strongly emphasises, therefore, that approval of such activities in the European Union should be strictly conditional on disclosure of all chemical ingredients and their relative amounts in the fracking liquid; |
| --- | --- |

17.

conscious that lax regulation may have been one of the preconditions for the economic viability of shale gas, since shale gas's exemption from a number of environmental protection acts has been one of the driving forces behind the shale gas boom in the U.S., for example the exact composition of fracking additives is protected by the patent law and does not have to be disclosed; strongly emphasises, therefore, that approval of such activities in the European Union should be strictly conditional on disclosure of all chemical ingredients and their relative amounts in the fracking liquid;

| 18. | notes that during drilling, the unavoidable impact of shale gas and tight oil extraction is a high and spatially intense land occupation with the possible threat to sustainable urban/rural settlements and natural habitats due to drilling pads, parking and manoeuvring areas for trucks, equipment, gas processing and transporting facilities as well as access roads. Major proven and possible impacts are air emissions of pollutants, groundwater contamination due to uncontrolled gas or fluid flows due to blowouts or spills, leaking fracturing fluid, and uncontrolled waste water discharge. Fracturing fluids contain hazardous substances, and flow-back in addition contains heavy metals and radioactive materials from the deposit, shale gas drilling poses a ‘high risk’ to human health (4) and the environment that is worse than that posed by other fossil fuels (5), particularly since there is more drilling for the same amount extracted; |
| --- | --- |

18.

notes that during drilling, the unavoidable impact of shale gas and tight oil extraction is a high and spatially intense land occupation with the possible threat to sustainable urban/rural settlements and natural habitats due to drilling pads, parking and manoeuvring areas for trucks, equipment, gas processing and transporting facilities as well as access roads. Major proven and possible impacts are air emissions of pollutants, groundwater contamination due to uncontrolled gas or fluid flows due to blowouts or spills, leaking fracturing fluid, and uncontrolled waste water discharge. Fracturing fluids contain hazardous substances, and flow-back in addition contains heavy metals and radioactive materials from the deposit, shale gas drilling poses a ‘high risk’ to human health (4) and the environment that is worse than that posed by other fossil fuels (5), particularly since there is more drilling for the same amount extracted;

| 19. | is concerned that existing mining laws in Europe and related regulations affecting mining activities do not take care of the specific aspects of Unconventional Hydrocarbon Development. There are major differences between mining related regulations in European Member States. In many cases, mining rights are privileged over citizens’ rights, and local political authorities often do not have an influence on possible projects or mining sites as these are granted by national or state governments and their authorities; further notes that in Europe, unlike in the United States, landowners do not automatically own the mineral resources beneath their land, which means that they do not always profit from their exploitation; |
| --- | --- |

19.

is concerned that existing mining laws in Europe and related regulations affecting mining activities do not take care of the specific aspects of Unconventional Hydrocarbon Development. There are major differences between mining related regulations in European Member States. In many cases, mining rights are privileged over citizens’ rights, and local political authorities often do not have an influence on possible projects or mining sites as these are granted by national or state governments and their authorities; further notes that in Europe, unlike in the United States, landowners do not automatically own the mineral resources beneath their land, which means that they do not always profit from their exploitation;

| 20. | requests a proper evaluation of the real potential of unconventional gas in the EU, an aspect which could be crucial to any energy plans and/or policies that might be implemented, as a transition resource towards a bigger percentage of renewable energy across the EU, as has been declared in such EU trend-setting documents for Europe's energy future as Roadmap 2050. This evaluation should also make it possible to examine the scope available for the more systematic use of local energy sources. One of goals of these plans and policies must seek to ensure that the transition to future, economically competitive, energy sources with a minimal carbon footprint is undertaken in such a way that the EU becomes competitive vis-à-vis other geopolitical regions. In addition to poising unforeseeable risks to the environment, the climate and human health, shale gas could also undermine the development of renewable energies and lock Europe into even deeper fossil fuel dependency. Shale gas, like carbon capture and storage, cannot be a political goal itself separately from the citizen’s needs and should not be promoted as a green alternative for Europe’s energy future. Given its high carbon intensity, the scale of expansion and level of investment, it needs to be made clear how shale gas could be a ‘transition fuel’. The impact of falling gas prices as a result of increased shale gas development in the U.S. could threaten the viability of low carbon alternatives and put pressure on government support schemes; |
| --- | --- |

20.

requests a proper evaluation of the real potential of unconventional gas in the EU, an aspect which could be crucial to any energy plans and/or policies that might be implemented, as a transition resource towards a bigger percentage of renewable energy across the EU, as has been declared in such EU trend-setting documents for Europe's energy future as Roadmap 2050. This evaluation should also make it possible to examine the scope available for the more systematic use of local energy sources. One of goals of these plans and policies must seek to ensure that the transition to future, economically competitive, energy sources with a minimal carbon footprint is undertaken in such a way that the EU becomes competitive vis-à-vis other geopolitical regions. In addition to poising unforeseeable risks to the environment, the climate and human health, shale gas could also undermine the development of renewable energies and lock Europe into even deeper fossil fuel dependency. Shale gas, like carbon capture and storage, cannot be a political goal itself separately from the citizen’s needs and should not be promoted as a green alternative for Europe’s energy future. Given its high carbon intensity, the scale of expansion and level of investment, it needs to be made clear how shale gas could be a ‘transition fuel’. The impact of falling gas prices as a result of increased shale gas development in the U.S. could threaten the viability of low carbon alternatives and put pressure on government support schemes;

| 21. | is concerned that increased shale gas exploration and production world-wide could lead to a considerable increase in fugitive methane emissions which have a greenhouse effect 20 to 25 times greater than that of CO2, and that the overall greenhouse warming potential (GWP) predicts a rise of more than 3.5 degrees (6). (Target acceptable rise is 2 degrees). Furthermore, the exploitation of unconventional oil and gas resources could hamper the achievement of UN Millennium Development Goal (MDG) 7 — ensuring environmental sustainability — and undermine the latest international climate change commitments enshrined in the Copenhagen Accord; |
| --- | --- |

21.

is concerned that increased shale gas exploration and production world-wide could lead to a considerable increase in fugitive methane emissions which have a greenhouse effect 20 to 25 times greater than that of CO2, and that the overall greenhouse warming potential (GWP) predicts a rise of more than 3.5 degrees (6). (Target acceptable rise is 2 degrees). Furthermore, the exploitation of unconventional oil and gas resources could hamper the achievement of UN Millennium Development Goal (MDG) 7 — ensuring environmental sustainability — and undermine the latest international climate change commitments enshrined in the Copenhagen Accord;

| 22. | supports the idea of increasing EU R&D support to the eco-design sector via the Structural and Cohesion Funds and the European Investment Bank, whilst noting that alongside these efforts, greater attention must be paid to the distorting effects that the adoption of new standards might have on competition; welcomes the Commission’s preliminary assessment of the EU environmental legal framework applicable to unconventional hydrocarbons the CoR urges the Commission to urgently:






  a. | conduct a thorough evaluation of the appropriateness of these provisions to fully cover all aspects both of exploration and full commercial high volume exploitation of Unconventional Hydrocarbon Development in Europe; |
| --- | --- | --- |

22.

supports the idea of increasing EU R&D support to the eco-design sector via the Structural and Cohesion Funds and the European Investment Bank, whilst noting that alongside these efforts, greater attention must be paid to the distorting effects that the adoption of new standards might have on competition; welcomes the Commission’s preliminary assessment of the EU environmental legal framework applicable to unconventional hydrocarbons the CoR urges the Commission to urgently:

a.

conduct a thorough evaluation of the appropriateness of these provisions to fully cover all aspects both of exploration and full commercial high volume exploitation of Unconventional Hydrocarbon Development in Europe;

| b. | identify gaps and shortcomings in existing environmental legislation and come up, where necessary, with appropriate proposals adjusting it to the Unconventional Hydrocarbon Development specifics and closing loopholes which allow for misinterpretation or special derogations for Unconventional Hydrocarbon Development in national transposition as effects local and regional authorities; |
| --- | --- |

b.

identify gaps and shortcomings in existing environmental legislation and come up, where necessary, with appropriate proposals adjusting it to the Unconventional Hydrocarbon Development specifics and closing loopholes which allow for misinterpretation or special derogations for Unconventional Hydrocarbon Development in national transposition as effects local and regional authorities;

| c. | carry out an assessment of the proper transposition of key European environmental legislation in all Member States and take immediate action in cases of non-compliance; |
| --- | --- |

c.

carry out an assessment of the proper transposition of key European environmental legislation in all Member States and take immediate action in cases of non-compliance;

| d. | consider, look and learn from the experiences of County and State authorities in the U.S.; |
| --- | --- |

d.

consider, look and learn from the experiences of County and State authorities in the U.S.;

Technical issues relating to the previously referenced preference for a directive

C.   
  Baseline assessments

| 23. | demands that the Commission requires industry provide for independent, verifiable, determination of existing environmental conditions in areas where Unconventional Hydrocarbon Development is proposed:






  a. | this base line determination should give specific emphasis on background human and animal health conditions and on natural habitat's quality and connectivity; |
| --- | --- | --- |

23.

demands that the Commission requires industry provide for independent, verifiable, determination of existing environmental conditions in areas where Unconventional Hydrocarbon Development is proposed:

a.

this base line determination should give specific emphasis on background human and animal health conditions and on natural habitat's quality and connectivity;

| b. | bedrock geology relating to the storage and movement of ground water; |
| --- | --- |

b.

bedrock geology relating to the storage and movement of ground water;

| c. | habitat that groundwater itself provides for microbial fauna and flora; |
| --- | --- |

c.

habitat that groundwater itself provides for microbial fauna and flora;

| d. | existing air, surface water and soil quality and seismological data, to include study of natural pre-existing geological faults; |
| --- | --- |

d.

existing air, surface water and soil quality and seismological data, to include study of natural pre-existing geological faults;

| e. | verifiable micro-seismological data; |
| --- | --- |

e.

verifiable micro-seismological data;

| f. | 3D and 4D Visualisation of Groundwater systems; |
| --- | --- |

f.

3D and 4D Visualisation of Groundwater systems;

D.   
  Environmental Impact Assessment (EIA)

| 24. | notes with concern that the current EIA directive does not take account of the daily production levels of non-conventional hydrocarbons. This means that despite their environmental impact, the relevant projects are not subject to mandatory EIA. In accordance with the precautionary principle, and as requested by Parliament in its resolution of 21 November 2012. the CoR supports the proposal that unconventional hydrocarbons be included in Annex I of the revised directive, so that the relevant projects are systematically made subject to EIA; |
| --- | --- |

24.

notes with concern that the current EIA directive does not take account of the daily production levels of non-conventional hydrocarbons. This means that despite their environmental impact, the relevant projects are not subject to mandatory EIA. In accordance with the precautionary principle, and as requested by Parliament in its resolution of 21 November 2012. the CoR supports the proposal that unconventional hydrocarbons be included in Annex I of the revised directive, so that the relevant projects are systematically made subject to EIA;

| 25. | calls on the Commission to explore the establishment of common environmental standards for exploration and extraction of unconventional hydrocarbons in the EU to facilitate coherent and understandable EIAs; |
| --- | --- |

25.

calls on the Commission to explore the establishment of common environmental standards for exploration and extraction of unconventional hydrocarbons in the EU to facilitate coherent and understandable EIAs;

| 26. | acknowledges the lack of experience and expertise in Europe; stresses that proper regulation of Unconventional Hydrocarbon Development exploration and extraction is in part dependent on the competence and resources of regional and local authorities. Recognises the need to increase the competence and strengthen the human resources of regional and local authorities with regard to unconventional hydrocarbons; |
| --- | --- |

26.

acknowledges the lack of experience and expertise in Europe; stresses that proper regulation of Unconventional Hydrocarbon Development exploration and extraction is in part dependent on the competence and resources of regional and local authorities. Recognises the need to increase the competence and strengthen the human resources of regional and local authorities with regard to unconventional hydrocarbons;

E.   
  Water

| 27. | believes that, given the depth of 2+ km at which Unconventional Hydrocarbon Development takes place, the first and foremost concern with regards groundwater contamination is well integrity and the quality of casing and cementing. Given that experience from the U.S. indicates that 6 % of wells leaked (7); |
| --- | --- |

27.

believes that, given the depth of 2+ km at which Unconventional Hydrocarbon Development takes place, the first and foremost concern with regards groundwater contamination is well integrity and the quality of casing and cementing. Given that experience from the U.S. indicates that 6 % of wells leaked (7);

| 28. | demands that each fracturing stage is monitored and details of max fracture length logged giving distance from aquifers; |
| --- | --- |

28.

demands that each fracturing stage is monitored and details of max fracture length logged giving distance from aquifers;

| 29. | requests commission to require industry to provide a corrective action procedure in the event of methane and or naturally-occurring radioactive material release to ground water or the release of other substances harming the quality of that ground water, where fractures migrate to groundwater or failures in the integrity of casing and cementing; |
| --- | --- |

29.

requests commission to require industry to provide a corrective action procedure in the event of methane and or naturally-occurring radioactive material release to ground water or the release of other substances harming the quality of that ground water, where fractures migrate to groundwater or failures in the integrity of casing and cementing;

| 30. | calls for compulsory cement bond logs and pressure testing of surface casing and cementing before the start of any operations; |
| --- | --- |

30.

calls for compulsory cement bond logs and pressure testing of surface casing and cementing before the start of any operations;

| 31. | stresses that effective prevention requires consistent monitoring of strict adherence to the established highest standards and practices in wellbore construction; underlines that both industry and competent authorities should ensure regular quality control for casing and cement integrity; |
| --- | --- |

31.

stresses that effective prevention requires consistent monitoring of strict adherence to the established highest standards and practices in wellbore construction; underlines that both industry and competent authorities should ensure regular quality control for casing and cement integrity;

| 32. | calls for mandatory Spill Prevention Control and Contingency (SPCC) plans to be prepared jointly by operators, regulators and emergency services; |
| --- | --- |

32.

calls for mandatory Spill Prevention Control and Contingency (SPCC) plans to be prepared jointly by operators, regulators and emergency services;

| 33. | calls for the establishment of minimum distances between drill pads and public or private springs or water wells; |
| --- | --- |

33.

calls for the establishment of minimum distances between drill pads and public or private springs or water wells;

| 34. | points out that waste and waste water resulting from exploitation of unconventional hydrocarbon deposits pose a series of problems in terms of safe storage, recycling and disposal, and that this needs to be regulated; it is essential that this involve the affected local and regional authorities, who are often responsible for waste management; |
| --- | --- |

34.

points out that waste and waste water resulting from exploitation of unconventional hydrocarbon deposits pose a series of problems in terms of safe storage, recycling and disposal, and that this needs to be regulated; it is essential that this involve the affected local and regional authorities, who are often responsible for waste management;

F.   
  Waste management

| 35. | calls for waste water resulting from hydraulic fracturing to be recycled in such a way as to minimise the risk of spills and leaks; acknowledges the high volumes of waste water containing varying polluting substances resulting from hydraulic fracturing; believes that onsite close-loop water recycling during the prospecting/development of deposits using steel storage tanks offers a means of treating flowback water by minimising water volumes, potential for surface spills and costs/traffic/road damage for water treatment transportation; calls for discontinued use of lined pits due to higher risk for spills and leaks; |
| --- | --- |

35.

calls for waste water resulting from hydraulic fracturing to be recycled in such a way as to minimise the risk of spills and leaks; acknowledges the high volumes of waste water containing varying polluting substances resulting from hydraulic fracturing; believes that onsite close-loop water recycling during the prospecting/development of deposits using steel storage tanks offers a means of treating flowback water by minimising water volumes, potential for surface spills and costs/traffic/road damage for water treatment transportation; calls for discontinued use of lined pits due to higher risk for spills and leaks;

| 36. | requests publication of quantity and content of fracturing fluid not recovered from an Unconventional Hydrocarbon Development, respectively — by being aware of the soil and rock composition –its probable effect on the soil water and fauna; |
| --- | --- |

36.

requests publication of quantity and content of fracturing fluid not recovered from an Unconventional Hydrocarbon Development, respectively — by being aware of the soil and rock composition –its probable effect on the soil water and fauna;

| 37. | highlights that municipal and national waste treatment establishments, and those treating water and the waste resulting from that water treatment may not have the capacity or technical set up to manage the volume and specific composition of waste water; calls for the establishment of waste water treatment standards and compulsory water management plans by operators in cooperation with the waste treatment authorities and the competent authorising authorities; |
| --- | --- |

37.

highlights that municipal and national waste treatment establishments, and those treating water and the waste resulting from that water treatment may not have the capacity or technical set up to manage the volume and specific composition of waste water; calls for the establishment of waste water treatment standards and compulsory water management plans by operators in cooperation with the waste treatment authorities and the competent authorising authorities;

| 38. | reminds that radioactive material, naturally found in geological formations, differs from shale to shale; stresses the need for radioactive content evaluation before production authorisation; |
| --- | --- |

38.

reminds that radioactive material, naturally found in geological formations, differs from shale to shale; stresses the need for radioactive content evaluation before production authorisation;

G.   
  Chemicals

| 39. | is concerned that currently there is no EU level obligation for declaring the chemical content of fracturing fluid; maintains there should be full transparency and mandatory disclosure by operators and that these factors should be taken into account in the environmental impact assessment; calls on the Commission to examine the most appropriate act for including such obligation on European level; |
| --- | --- |

39.

is concerned that currently there is no EU level obligation for declaring the chemical content of fracturing fluid; maintains there should be full transparency and mandatory disclosure by operators and that these factors should be taken into account in the environmental impact assessment; calls on the Commission to examine the most appropriate act for including such obligation on European level;

| 40. | calls for greater effort in developing fracturing fluid additives with the lowest toxicity and environmental risk; |
| --- | --- |

40.

calls for greater effort in developing fracturing fluid additives with the lowest toxicity and environmental risk;

H.   
  Land, air and other parameters

| 41. | underlines that the geological characteristics of a region determine the design and method of extraction activities; encourages the active and timely involvement of national geological institutes as well as affected local and regional authorities; calls for a mandatory, pre-authorisation, geological analysis of the deep and shallow geology of a prospective shale play, including reports on any past or present mining activities in the region; further calls for collecting well logs; |
| --- | --- |

41.

underlines that the geological characteristics of a region determine the design and method of extraction activities; encourages the active and timely involvement of national geological institutes as well as affected local and regional authorities; calls for a mandatory, pre-authorisation, geological analysis of the deep and shallow geology of a prospective shale play, including reports on any past or present mining activities in the region; further calls for collecting well logs;

| 42. | notes that multi-horizontal-well drilling pads minimise land use and landscape disturbance; |
| --- | --- |

42.

notes that multi-horizontal-well drilling pads minimise land use and landscape disturbance;

| 43. | advocates the use of green completion systems for reducing or recovering methane emissions during well completion; |
| --- | --- |

43.

advocates the use of green completion systems for reducing or recovering methane emissions during well completion;

| 44. | reminds that onsite accidents are often a result of untrained personnel, negligence or incorrect behaviour with regards to safety instructions; |
| --- | --- |

44.

reminds that onsite accidents are often a result of untrained personnel, negligence or incorrect behaviour with regards to safety instructions;

| 45. | recommends the establishment of standardised emergency response plans and specialised emergency response teams; |
| --- | --- |

45.

recommends the establishment of standardised emergency response plans and specialised emergency response teams;

I.   
  Public participation and public health

| 46. | calls for special monitoring of the health of citizens living near drilling sites; advocates the creation of regional population health registry; |
| --- | --- |

46.

calls for special monitoring of the health of citizens living near drilling sites; advocates the creation of regional population health registry;

| 47. | recommends that the dissemination of activities related to unconventional hydrocarbons among the population to be dealt by such group of local and non-local specialists, who, by taking into account the local environmental and economic characteristics, can offer an objective perspective on all phases of the exploitation emphasizing its economic benefits as well as its social and environmental risks; |
| --- | --- |

47.

recommends that the dissemination of activities related to unconventional hydrocarbons among the population to be dealt by such group of local and non-local specialists, who, by taking into account the local environmental and economic characteristics, can offer an objective perspective on all phases of the exploitation emphasizing its economic benefits as well as its social and environmental risks;

| 48. | believes that public participation should be ensured via mandatory implementation of wide range of effective participatory planning tools and methods before exploration and public consultation before exploitation stages; calls for greater outreach and public education in UH activities to enable public understanding, acceptance and confidence in the regulation of these activities; |
| --- | --- |

48.

believes that public participation should be ensured via mandatory implementation of wide range of effective participatory planning tools and methods before exploration and public consultation before exploitation stages; calls for greater outreach and public education in UH activities to enable public understanding, acceptance and confidence in the regulation of these activities;

J.   
  Well abandonment, orphaned, failed wells and feedback ponds

| 49. | conscious of previous experience, local and regional authorities will require the lodging of financial bond 1.5 times the cost of properly plugging and sealing each bore hole, rendering it inert. This cost to include the total of materials plus expertise in undertaking the work and assessing the final process; |
| --- | --- |

49.

conscious of previous experience, local and regional authorities will require the lodging of financial bond 1.5 times the cost of properly plugging and sealing each bore hole, rendering it inert. This cost to include the total of materials plus expertise in undertaking the work and assessing the final process;

| 50. | further requests that financial bonds are lodged with local authorities to ensure best practise during the drilling and fracturing stage. This bond to be significant to ensure rehabilitation in the event of a corporate entity no longer existing; |
| --- | --- |

50.

further requests that financial bonds are lodged with local authorities to ensure best practise during the drilling and fracturing stage. This bond to be significant to ensure rehabilitation in the event of a corporate entity no longer existing;

| 51. | demands that industry also provide financially and otherwise to ensure best practice in remediation and rehabilitation of unconventional hydrocarbon extraction facilities; |
| --- | --- |

51.

demands that industry also provide financially and otherwise to ensure best practice in remediation and rehabilitation of unconventional hydrocarbon extraction facilities;

| 52. | requests that local authorities with the relevant competencies are provided with the resources necessary for prolonged air and groundwater monitoring in areas where Unconventional Hydrocarbon Development is or has taken place; |
| --- | --- |

52.

requests that local authorities with the relevant competencies are provided with the resources necessary for prolonged air and groundwater monitoring in areas where Unconventional Hydrocarbon Development is or has taken place;

K.   
  Administration and resource challenges for local authorities

| 53. | notes that the multi-stage development of shale gas plays could present an administration challenge in ensuring correct procedures legislation are followed in planning, environmental monitoring, enforcement actions. The CoR requests that Member States ensure local and regional authorities have the resources to meet that challenge; |
| --- | --- |

53.

notes that the multi-stage development of shale gas plays could present an administration challenge in ensuring correct procedures legislation are followed in planning, environmental monitoring, enforcement actions. The CoR requests that Member States ensure local and regional authorities have the resources to meet that challenge;

L.   
  Social and economic impacts for local and regional authorities

| 54. | notes that the facts regarding the pressure on local governments with low budget, the economic interests and the possibility of partial energy independency are playing down the analysis of social risks, hereby triggering irreversible processes; |
| --- | --- |

54.

notes that the facts regarding the pressure on local governments with low budget, the economic interests and the possibility of partial energy independency are playing down the analysis of social risks, hereby triggering irreversible processes;

| 55. | conscious of experiences of local and regional authorities in boom bust extractive industry cycles, the CoR is aware that:






  a. | a boom in one sector of the economy, such as coal mining or shale gas and oil extraction, leads to a strong, often sudden, growth in low-skill, high-paying jobs in that sector; |
| --- | --- | --- |

55.

conscious of experiences of local and regional authorities in boom bust extractive industry cycles, the CoR is aware that:

a.

a boom in one sector of the economy, such as coal mining or shale gas and oil extraction, leads to a strong, often sudden, growth in low-skill, high-paying jobs in that sector;

| b. | the availability of such jobs leads young workers away from advanced education or other high-skill training opportunities; |
| --- | --- |

b.

the availability of such jobs leads young workers away from advanced education or other high-skill training opportunities;

| c. | other industries avoid the region because of both the reduced job skills in the workforce and the higher wages in the area; |
| --- | --- |

c.

other industries avoid the region because of both the reduced job skills in the workforce and the higher wages in the area;

| d. | as the availability of the natural resource wanes due to extraction — or when its value decreases due to other economic forces — employment in the sector drops precipitously; |
| --- | --- |

d.

as the availability of the natural resource wanes due to extraction — or when its value decreases due to other economic forces — employment in the sector drops precipitously;

| e. | with no other viable options, the economic decline causes workers to migrate out of the area in search of other opportunities; |
| --- | --- |

e.

with no other viable options, the economic decline causes workers to migrate out of the area in search of other opportunities;

| f. | demand that Member States take account of these possible consequences and that local and regional authorities can plan ensuring sustainable communities when an unconventional hydrocarbon resource has been exhausted or is no longer viable. |
| --- | --- |

f.

demand that Member States take account of these possible consequences and that local and regional authorities can plan ensuring sustainable communities when an unconventional hydrocarbon resource has been exhausted or is no longer viable.

Brussels, 9 October 2013.

The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO

---

(1)  Dr Werner Zittel, Shale Gas European Perspectives, European Parliament 14 May 2013.

1

(2)  http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/shale-gas/Documents/cee-shale-gas-2.pdf

2

(3)  European Parliament http://europeecologie.eu/IMG/pdf/shale-gas-pe-464-425-final.pdf

3

(4)  Human health risk assessment of air emissions from development of unconventional natural gas resources, Lisa M. McKenzie, Roxana Z. Witter, Lee S. Newman, John L. Adgate, Colorado School of Public Health, University of Colorado, Anschutz Medical Campus, Aurora, Colorado, USA.

4

(5)  http://ec.europa.eu/environment/integration/energy/unconventional_en.htm

5

(6)  IEA Golden Rules for a Golden age of Gas, page 91.

6

(7)  Methane Migration Data Pennsylvania DEP.

7

---

| 5.12.2013 | EN | Official Journal of the European Union | C 356/30 |
| --- | --- | --- | --- |

5.12.2013

EN

Official Journal of the European Union

C 356/30

---

Opinion of the Committee of the Regions — ‘Green Paper on a European strategy on plastic waste in the environment’

2013/C 356/06

THE COMMITTEE OF THE REGIONS

| — | calls on the European Commission to adopt a landfill ban on plastics and highly-combustible waste by 2020, and to introduce specific and ambitious targets for prevention, preparation for re-use and recycling of plastic waste, to be harmonised in all relevant directives, and reflecting the environmental weightings for the materials; intermediate targets and transitional periods could be envisaged and negotiated with the Member States; |
| --- | --- |

—

calls on the European Commission to adopt a landfill ban on plastics and highly-combustible waste by 2020, and to introduce specific and ambitious targets for prevention, preparation for re-use and recycling of plastic waste, to be harmonised in all relevant directives, and reflecting the environmental weightings for the materials; intermediate targets and transitional periods could be envisaged and negotiated with the Member States;

| — | asks the European Commission to consider funding future infrastructure that recycles plastic effectively and to cease funding for landfill and incineration; EU funding should only be allocated to energy recovery facilities that form part of a coherent waste management strategy, which includes sufficient facilities for the earlier stages in the waste hierarchy; |
| --- | --- |

—

asks the European Commission to consider funding future infrastructure that recycles plastic effectively and to cease funding for landfill and incineration; EU funding should only be allocated to energy recovery facilities that form part of a coherent waste management strategy, which includes sufficient facilities for the earlier stages in the waste hierarchy;

| — | calls for a full implementation of the ‘polluter pays’ principle and on the European Commission to study the best way of applying extended producer responsibility in the EU. The payment of a deposit and take-back schemes are paths which should be followed at EU level for certain plastic products and products containing plastics. The ‘pay-as-you-throw’ principle for bulky articles should be encouraged with collection methods determined by LRAs. In addition to providing incentives for re-use, a ban on the free provision of plastic carrier bags is should be considered; |
| --- | --- |

—

calls for a full implementation of the ‘polluter pays’ principle and on the European Commission to study the best way of applying extended producer responsibility in the EU. The payment of a deposit and take-back schemes are paths which should be followed at EU level for certain plastic products and products containing plastics. The ‘pay-as-you-throw’ principle for bulky articles should be encouraged with collection methods determined by LRAs. In addition to providing incentives for re-use, a ban on the free provision of plastic carrier bags is should be considered;

| — | considers that in design, the use of a limited number of single plastics not combined with other materials, and a clear statement of the type of plastic on packaging and products are important to facilitate their re-use and recycling; advocates a mandatory minimum recycled content in future design; |
| --- | --- |

—

considers that in design, the use of a limited number of single plastics not combined with other materials, and a clear statement of the type of plastic on packaging and products are important to facilitate their re-use and recycling; advocates a mandatory minimum recycled content in future design;

| — | calls for an international agreement on a ban on the use of decomposable plastic micro beads for cosmetic use and other personal products to prevent this relatively new source of pollution entering the food chain; believes that there is considerable evidence to call for a ban on oxo-degradable plastic until further research establishes it has added value. |
| --- | --- |

—

calls for an international agreement on a ban on the use of decomposable plastic micro beads for cosmetic use and other personal products to prevent this relatively new source of pollution entering the food chain; believes that there is considerable evidence to call for a ban on oxo-degradable plastic until further research establishes it has added value.

| Rapporteur | Councillor Linda GILLHAM, Member of Runnymede Borough Council (UK/EA) |
| --- | --- |
| Reference document | Green Paper on a European Strategy on Plastic Waste in the Environment
  COM(2013) 123 final |

Rapporteur

Councillor Linda GILLHAM, Member of Runnymede Borough Council (UK/EA)

Reference document

Green Paper on a European Strategy on Plastic Waste in the Environment

COM(2013) 123 final

I.   POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS

| 1. | welcomes the Green Paper on plastic waste in the environment. Optimum waste management is one of the greatest challenges facing local and regional authorities (LRAs) today, both in reducing the environmental impact of increased waste generation by creating and financing waste treatment and disposal infrastructures and preserving natural resources; |
| --- | --- |

1.

welcomes the Green Paper on plastic waste in the environment. Optimum waste management is one of the greatest challenges facing local and regional authorities (LRAs) today, both in reducing the environmental impact of increased waste generation by creating and financing waste treatment and disposal infrastructures and preserving natural resources;

| 2. | points out, however, that waste prevention must still have the highest priority. In addition to optimisation of waste management, comprehensive and ambitious waste prevention are the greatest challenges; |
| --- | --- |

2.

points out, however, that waste prevention must still have the highest priority. In addition to optimisation of waste management, comprehensive and ambitious waste prevention are the greatest challenges;

| 3. | in this context, calls for a full implementation of the ‘polluter pays’ principle as it is one of the most effective waste prevention methods that could help LRAs in meeting their waste targets and also limit the financial and organisational burden on them; |
| --- | --- |

3.

in this context, calls for a full implementation of the ‘polluter pays’ principle as it is one of the most effective waste prevention methods that could help LRAs in meeting their waste targets and also limit the financial and organisational burden on them;

| 4. | recognises that household participation is key to increasing prevention, collection and recycling targets. LRAs are able to provide citizens with information and facilities to adapt their consumption habits and to boost the range and quality of materials collected. This relies on a commitment to embrace the concept of waste plastic as a potentially valuable resource; |
| --- | --- |

4.

recognises that household participation is key to increasing prevention, collection and recycling targets. LRAs are able to provide citizens with information and facilities to adapt their consumption habits and to boost the range and quality of materials collected. This relies on a commitment to embrace the concept of waste plastic as a potentially valuable resource;

| 5. | points out that it is not only in households that plastic waste accumulates: much greater focus should be placed also and especially on industry (e.g. vehicle manufacturing), the construction industry and other commercial sectors, since huge amounts of plastics are used there; |
| --- | --- |

5.

points out that it is not only in households that plastic waste accumulates: much greater focus should be placed also and especially on industry (e.g. vehicle manufacturing), the construction industry and other commercial sectors, since huge amounts of plastics are used there;

| 6. | acknowledges that there are disparities between Member States in waste management. For many reasons, including public opposition, in many Member States investment in waste management facilities has been slow to come forward, with long lead-in times for delivery of infrastructure; |
| --- | --- |

6.

acknowledges that there are disparities between Member States in waste management. For many reasons, including public opposition, in many Member States investment in waste management facilities has been slow to come forward, with long lead-in times for delivery of infrastructure;

| 7. | regrets the lack or slow pace of strategic planning along the waste management chain: actions for prevention and preparation for re-use and recycling, collection systems, treatment plants, markets leads. Secure markets will only evolve with sufficient volumes of plastic recyclate material; |
| --- | --- |

7.

regrets the lack or slow pace of strategic planning along the waste management chain: actions for prevention and preparation for re-use and recycling, collection systems, treatment plants, markets leads. Secure markets will only evolve with sufficient volumes of plastic recyclate material;

| 8. | calls on the European Commission to ensure that existing EU environmental legislation is fully implemented and enforced throughout all 28 Member States. Considers that there is currently a lack of resources for enforcement and control; |
| --- | --- |

8.

calls on the European Commission to ensure that existing EU environmental legislation is fully implemented and enforced throughout all 28 Member States. Considers that there is currently a lack of resources for enforcement and control;

| 9. | welcomes the intention to review the Landfill Directive in 2014. Considers that this should entail a landfill ban on plastics and highly-combustible waste by 2020. The CoR recognises that the waste management industry and LRAs need time, investment and certainty to commit resources in appropriate infrastructure for collection, sorting, recycling and efficient end-processing. While Member States that are lagging behind may need a phase-in period for a ban, all plastic waste must be managed as a resource as envisaged by the Roadmap to a Resource-Efficient Europe in order to meet the 2020 objectives; |
| --- | --- |

9.

welcomes the intention to review the Landfill Directive in 2014. Considers that this should entail a landfill ban on plastics and highly-combustible waste by 2020. The CoR recognises that the waste management industry and LRAs need time, investment and certainty to commit resources in appropriate infrastructure for collection, sorting, recycling and efficient end-processing. While Member States that are lagging behind may need a phase-in period for a ban, all plastic waste must be managed as a resource as envisaged by the Roadmap to a Resource-Efficient Europe in order to meet the 2020 objectives;

| 10. | recognises that while seven Member States already landfill less than 10 % of waste, eleven Member States still landfill more than 60 %. Waste management needs to recognise the specific value of plastic with better and more efficient collection systems to minimise contamination; |
| --- | --- |

10.

recognises that while seven Member States already landfill less than 10 % of waste, eleven Member States still landfill more than 60 %. Waste management needs to recognise the specific value of plastic with better and more efficient collection systems to minimise contamination;

| 11. | calls on the European Commission to adopt an integrated approach to all plastics including electrical waste (WEEE), end-of-life vehicles (ELV) and packaging in future reviews. Targets in the Waste Framework Directive (WFD) are too low and do not specifically address plastic waste; |
| --- | --- |

11.

calls on the European Commission to adopt an integrated approach to all plastics including electrical waste (WEEE), end-of-life vehicles (ELV) and packaging in future reviews. Targets in the Waste Framework Directive (WFD) are too low and do not specifically address plastic waste;

| 12. | insists that new targets for plastic should address the issue of tonnage which is not appropriate as a measurement tool especially for very lightweight plastic film. Targets should reflect environmental weightings for the materials to increase the value of plastic which tends to be overlooked in favour of heavier recyclables; |
| --- | --- |

12.

insists that new targets for plastic should address the issue of tonnage which is not appropriate as a measurement tool especially for very lightweight plastic film. Targets should reflect environmental weightings for the materials to increase the value of plastic which tends to be overlooked in favour of heavier recyclables;

| 13. | notes that Member States have all embraced ‘energy from waste’ (EfW) as a legitimate alternative to landfilling residual waste remaining after reuse and recycling; in that context reiterates that EU funding should only be allocated to energy recovery facilities that form part of a coherent waste management strategy, which includes sufficient facilities for the earlier stages of sorting, cleaning and recycling of the waste collected. Believes in addition, that because plastics provide a fuel of high Calorific Value, it is important that material-specific recycling targets for plastics are set, based on processing capacity, to avoid the demand for fuel resulting in the incineration of valuable resources; |
| --- | --- |

13.

notes that Member States have all embraced ‘energy from waste’ (EfW) as a legitimate alternative to landfilling residual waste remaining after reuse and recycling; in that context reiterates that EU funding should only be allocated to energy recovery facilities that form part of a coherent waste management strategy, which includes sufficient facilities for the earlier stages of sorting, cleaning and recycling of the waste collected. Believes in addition, that because plastics provide a fuel of high Calorific Value, it is important that material-specific recycling targets for plastics are set, based on processing capacity, to avoid the demand for fuel resulting in the incineration of valuable resources;

| 14. | believes that existing targets should be better enforced. Moreover, supports the introduction of binding, specific and ambitious, but achievable, targets for prevention, preparation for re-use and recycling of plastic waste, in addition to landfill diversion, as the former are more accurately measured. These targets are to be harmonised in all relevant directives. Intermediate targets and transitional periods could be envisaged and negotiated with the Member States and LRAs that have not achieved a satisfactory progress with regard to waste targets; |
| --- | --- |

14.

believes that existing targets should be better enforced. Moreover, supports the introduction of binding, specific and ambitious, but achievable, targets for prevention, preparation for re-use and recycling of plastic waste, in addition to landfill diversion, as the former are more accurately measured. These targets are to be harmonised in all relevant directives. Intermediate targets and transitional periods could be envisaged and negotiated with the Member States and LRAs that have not achieved a satisfactory progress with regard to waste targets;

| 15. | calls for the setting of these targets to be in line with the proportionality, proximity and precautionary principles; |
| --- | --- |

15.

calls for the setting of these targets to be in line with the proportionality, proximity and precautionary principles;

| 16. | believes that these measures will drive plastic waste up the waste hierarchy and endorses the European Parliament’s request for a ban on landfill of all recyclable and biowaste by 2020, but cautions that there is a risk of increasing the export of plastic waste outside Europe unless plastics recycling is further developed in the EU; |
| --- | --- |

16.

believes that these measures will drive plastic waste up the waste hierarchy and endorses the European Parliament’s request for a ban on landfill of all recyclable and biowaste by 2020, but cautions that there is a risk of increasing the export of plastic waste outside Europe unless plastics recycling is further developed in the EU;

| 17. | calls for greater promotion of recycling plastic at all stages to encourage a circular economy. Initial design should consider not just end-of-life recycling but rationalisation of polymers used in production as well as the use of a limited number of single plastics not combined with other materials, so to ease separation for recycling; |
| --- | --- |

17.

calls for greater promotion of recycling plastic at all stages to encourage a circular economy. Initial design should consider not just end-of-life recycling but rationalisation of polymers used in production as well as the use of a limited number of single plastics not combined with other materials, so to ease separation for recycling;

| 18. | encourages the European Commission to promote green public procurement with greater incentives in prevention, preparation for re-use, recycling, and increasing the content of recycled plastic in new goods; |
| --- | --- |

18.

encourages the European Commission to promote green public procurement with greater incentives in prevention, preparation for re-use, recycling, and increasing the content of recycled plastic in new goods;

| 19. | asks the European Commission to consider funding future infrastructure that recycles plastic effectively and to cease funding for landfill and incineration, while also supporting the market for plastic recyclate and therefore creating employment; |
| --- | --- |

19.

asks the European Commission to consider funding future infrastructure that recycles plastic effectively and to cease funding for landfill and incineration, while also supporting the market for plastic recyclate and therefore creating employment;

| 20. | recognises that material recycling enables the EU to become more self-sufficient in raw materials, and that energy recovery should remain a subsidiary option, in line with the waste hierarchy, in order to realise the full potential of the diverted waste and not create a ‘vacuum cleaner effect’ in favour of energy from waste, as the Green Paper recommends; |
| --- | --- |

20.

recognises that material recycling enables the EU to become more self-sufficient in raw materials, and that energy recovery should remain a subsidiary option, in line with the waste hierarchy, in order to realise the full potential of the diverted waste and not create a ‘vacuum cleaner effect’ in favour of energy from waste, as the Green Paper recommends;

| 21. | believes strongly that doorstep collection systems should be mandatory but should also be designed to encourage separation and maximise recovery of high quality recyclable materials. This is a question of subsidiarity and while comingled dry recycling is proving very efficient in some Member States, it must be recognised that methods of collection vary from urban to rural areas and from country to country. While it is impractical to have a uniform ‘one size fits all’ policy there are grounds for a voluntary rationalisation and standardisation of collection methods; |
| --- | --- |

21.

believes strongly that doorstep collection systems should be mandatory but should also be designed to encourage separation and maximise recovery of high quality recyclable materials. This is a question of subsidiarity and while comingled dry recycling is proving very efficient in some Member States, it must be recognised that methods of collection vary from urban to rural areas and from country to country. While it is impractical to have a uniform ‘one size fits all’ policy there are grounds for a voluntary rationalisation and standardisation of collection methods;

| 22. | reiterates its view that there may be possibilities for regional authorities to work together on cross-border waste management and treatment hubs for similar types of properties i.e. high rise flats to ensure efficient management of waste streams and optimum use of the infrastructure and resources available to the sector; |
| --- | --- |

22.

reiterates its view that there may be possibilities for regional authorities to work together on cross-border waste management and treatment hubs for similar types of properties i.e. high rise flats to ensure efficient management of waste streams and optimum use of the infrastructure and resources available to the sector;

| 23. | considers that high quality recycling should be promoted by active support for a market for recycled plastic and that environmentally friendly materials should be encouraged in order to reduce the quantity of plastic waste in the environment; |
| --- | --- |

23.

considers that high quality recycling should be promoted by active support for a market for recycled plastic and that environmentally friendly materials should be encouraged in order to reduce the quantity of plastic waste in the environment;

| 24. | regrets that current reporting of recovery targets under the WFD are based on collection and not on actual recycling or energy recovery. There is an urgent need to clarify definitions and find a single calculation methodology for recycling performance; |
| --- | --- |

24.

regrets that current reporting of recovery targets under the WFD are based on collection and not on actual recycling or energy recovery. There is an urgent need to clarify definitions and find a single calculation methodology for recycling performance;

| 25. | recognises that the European Commission has already introduced a support programme for the ten lower-performing Member States on waste policies. Regrets that 18 Member States are still far from achieving compliance with the Waste Framework Directive; |
| --- | --- |

25.

recognises that the European Commission has already introduced a support programme for the ten lower-performing Member States on waste policies. Regrets that 18 Member States are still far from achieving compliance with the Waste Framework Directive;

| 26. | suggests that a range of measures are required, as no one policy instrument will divert waste from landfill to recycling. However recycling is not always a viable strategy where plastic recycling is technically difficult and not always economically justified, even for the best environmental reasons; |
| --- | --- |

26.

suggests that a range of measures are required, as no one policy instrument will divert waste from landfill to recycling. However recycling is not always a viable strategy where plastic recycling is technically difficult and not always economically justified, even for the best environmental reasons;

| 27. | believes the EU is in a good position to show global leadership in the elimination of plastic to landfill and should share best practices in waste management locally, regionally, nationally and internationally. The EU should promote sustainable initiatives and ensure recyclers ship only to recycling plants with the same management obligations as EU plants. Brokers are not recyclers and the CoR calls for tighter monitoring of the application of shipment regulations at European ports; |
| --- | --- |

27.

believes the EU is in a good position to show global leadership in the elimination of plastic to landfill and should share best practices in waste management locally, regionally, nationally and internationally. The EU should promote sustainable initiatives and ensure recyclers ship only to recycling plants with the same management obligations as EU plants. Brokers are not recyclers and the CoR calls for tighter monitoring of the application of shipment regulations at European ports;

| 28. | In this context, reiterates its support to the creation of a European information platform that would allow LRAs exchange information on waste prevention and management inside and outside the EU; |
| --- | --- |

28.

In this context, reiterates its support to the creation of a European information platform that would allow LRAs exchange information on waste prevention and management inside and outside the EU;

| 29. | recognises that plastics have a global destination, therefore good practice at the design stage in re-use repair and design for recyclability will be effective beyond the boundaries of the EU and will help prevent plastic items becoming future marine waste; |
| --- | --- |

29.

recognises that plastics have a global destination, therefore good practice at the design stage in re-use repair and design for recyclability will be effective beyond the boundaries of the EU and will help prevent plastic items becoming future marine waste;

| 30. | notes that many consumer goods, especially electrical and electronic items, are manufactured outside the EU and, due to high EU labour costs, are subsequently re-exported for disassembly, recycling or disposal. Abiding by the proximity principle, the CoR recommends developing recycling and re-use infrastructure within an EU framework, in order for Member States to make efficient use of the waste management infrastructure in place across the EU and to avoid unnecessary duplication of investment. Thus plastic waste could be treated in neighbouring countries without the need to build many types of recycling plants in each Member State, whilst specific infrastructure for specialist treatment of certain types of waste could be planned across the EU to avoid duplication. CoR acknowledges that appropriate cross-frontier controls on the movement of waste should be in place and enforced; |
| --- | --- |

30.

notes that many consumer goods, especially electrical and electronic items, are manufactured outside the EU and, due to high EU labour costs, are subsequently re-exported for disassembly, recycling or disposal. Abiding by the proximity principle, the CoR recommends developing recycling and re-use infrastructure within an EU framework, in order for Member States to make efficient use of the waste management infrastructure in place across the EU and to avoid unnecessary duplication of investment. Thus plastic waste could be treated in neighbouring countries without the need to build many types of recycling plants in each Member State, whilst specific infrastructure for specialist treatment of certain types of waste could be planned across the EU to avoid duplication. CoR acknowledges that appropriate cross-frontier controls on the movement of waste should be in place and enforced;

| 31. | believes that while voluntary action can complement legislation, some regulation will be necessary to ensure an efficient, effective, safe and sustainable waste framework. However the CoR believes that the European Commission should consider measures that inform and influence consumer and household behavioural change before resorting to taxes or bans; |
| --- | --- |

31.

believes that while voluntary action can complement legislation, some regulation will be necessary to ensure an efficient, effective, safe and sustainable waste framework. However the CoR believes that the European Commission should consider measures that inform and influence consumer and household behavioural change before resorting to taxes or bans;

| 32. | calls on the European Commission to study the best way of applying extended producer and importer responsibility in the EU, particularly with regard to plastic waste, the management of which is too often the responsibility of local and regional authorities. Better application of this responsibility should make it possible to market products which generate less plastic waste, and plastic waste which is easier to recycle. The payment of a deposit and the obligation to take back the article at the end of its life are paths which should be followed at EU level for certain plastic products and products containing plastics in order to reduce the heavy burden on local and regional authorities; believes that it is also worth promoting ‘take-back’ schemes to retailers, schools and workplaces where quantities of separated valuable resources can be accumulated to make recycling more viable. Existing examples include mobile phones and printer cartridges; |
| --- | --- |

32.

calls on the European Commission to study the best way of applying extended producer and importer responsibility in the EU, particularly with regard to plastic waste, the management of which is too often the responsibility of local and regional authorities. Better application of this responsibility should make it possible to market products which generate less plastic waste, and plastic waste which is easier to recycle. The payment of a deposit and the obligation to take back the article at the end of its life are paths which should be followed at EU level for certain plastic products and products containing plastics in order to reduce the heavy burden on local and regional authorities; believes that it is also worth promoting ‘take-back’ schemes to retailers, schools and workplaces where quantities of separated valuable resources can be accumulated to make recycling more viable. Existing examples include mobile phones and printer cartridges;

| 33. | believes that the ‘pay-as-you-throw’ principle for bulky articles should be encouraged with collection methods determined by LRAs, together with efforts to raise awareness and monitor waste paths more closely in order to prevent (plastic) waste being burnt or abandoned more and more frequently in places other than facilities with the proper technical equipment; |
| --- | --- |

33.

believes that the ‘pay-as-you-throw’ principle for bulky articles should be encouraged with collection methods determined by LRAs, together with efforts to raise awareness and monitor waste paths more closely in order to prevent (plastic) waste being burnt or abandoned more and more frequently in places other than facilities with the proper technical equipment;

| 34. | recognises there is scope to develop deposit and return schemes on a case-by-case basis. Recovery of beverage bottles and containers has proved successful in some Member States and offers quality material to be recycled. This could provide a valuable alternative in rural areas where separate collection is not viable. Collections of plastics such as PET (polyethylene terephthalate) can also be further encouraged by LRAs through Environmental Sustainability Plans for large public events unless there are environmentally friendly alternatives to PET bottles; |
| --- | --- |

34.

recognises there is scope to develop deposit and return schemes on a case-by-case basis. Recovery of beverage bottles and containers has proved successful in some Member States and offers quality material to be recycled. This could provide a valuable alternative in rural areas where separate collection is not viable. Collections of plastics such as PET (polyethylene terephthalate) can also be further encouraged by LRAs through Environmental Sustainability Plans for large public events unless there are environmentally friendly alternatives to PET bottles;

Eco-design

| 35. | considers that product design is pivotal to minimising waste. Believes that whereas the current eco-design directive focuses on water and energy consumption, a review could now broaden the scope to extend its application to other plastic products and include requirements for preparation for re-use, combating obsolescence, repairability and recycling with advice to the consumer on the durability of a product (for example, a ‘product passport’ to accompany a product.) Design is important for consumers but also waste authorities who are responsible for managing the ‘end-of-life’ of products. Good design of an item and its associated packaging and disassembly will foresee and improve recyclability; |
| --- | --- |

35.

considers that product design is pivotal to minimising waste. Believes that whereas the current eco-design directive focuses on water and energy consumption, a review could now broaden the scope to extend its application to other plastic products and include requirements for preparation for re-use, combating obsolescence, repairability and recycling with advice to the consumer on the durability of a product (for example, a ‘product passport’ to accompany a product.) Design is important for consumers but also waste authorities who are responsible for managing the ‘end-of-life’ of products. Good design of an item and its associated packaging and disassembly will foresee and improve recyclability;

| 36. | draws attention to the trend towards ‘light-weighting’ and the introduction of pouches in consumer packaging design (moving from glass or metal to plastics), which reduces transport costs and therefore carbon emissions; but recognises that whilst these outcomes are beneficial for all, such a trend may prove very profitable for producers at the expense of increased collection and treatment costs for local and regional authorities; |
| --- | --- |

36.

draws attention to the trend towards ‘light-weighting’ and the introduction of pouches in consumer packaging design (moving from glass or metal to plastics), which reduces transport costs and therefore carbon emissions; but recognises that whilst these outcomes are beneficial for all, such a trend may prove very profitable for producers at the expense of increased collection and treatment costs for local and regional authorities;

| 37. | considers in this context that the number of types of plastic (composition) should be reduced to make it possible to melt down sorted, compatible plastics. This also requires a clear statement of the type of plastic on packaging and products to facilitate sorting; moreover, plastics should not contain POPs (Persistent Organic Pollutants) or chemicals banned under the REACH regulation; |
| --- | --- |

37.

considers in this context that the number of types of plastic (composition) should be reduced to make it possible to melt down sorted, compatible plastics. This also requires a clear statement of the type of plastic on packaging and products to facilitate sorting; moreover, plastics should not contain POPs (Persistent Organic Pollutants) or chemicals banned under the REACH regulation;

| 38. | believes that guidance on sustainable product design for the complete life cycle, including end-of-life treatment, will help the user understand the real value of an item and prevent some valuable resources from being wasted unnecessarily; |
| --- | --- |

38.

believes that guidance on sustainable product design for the complete life cycle, including end-of-life treatment, will help the user understand the real value of an item and prevent some valuable resources from being wasted unnecessarily;

| 39. | advocates a mandatory minimum recycled content in future design reviews while understanding that some food and personal health uses require specified standards from the material; |
| --- | --- |

39.

advocates a mandatory minimum recycled content in future design reviews while understanding that some food and personal health uses require specified standards from the material;

| 40. | calls for the progressive elimination of the use of dangerous substances in plastics, both in new and recycled products, in order to reduce the risks linked with their use and increase opportunities for recycling. The Committee supports the suggestion contained in the Roadmap to a Resource Efficient Europe that, by 2020, all Substances of Very High Concern should be included in the REACH Candidate List, which would make it possible to focus on the plastic additives in question. Calls, in this connection, for special attention to be paid to micro-plastics and nanoparticles, which pose new problems which are not necessarily covered by the REACH regulation; |
| --- | --- |

40.

calls for the progressive elimination of the use of dangerous substances in plastics, both in new and recycled products, in order to reduce the risks linked with their use and increase opportunities for recycling. The Committee supports the suggestion contained in the Roadmap to a Resource Efficient Europe that, by 2020, all Substances of Very High Concern should be included in the REACH Candidate List, which would make it possible to focus on the plastic additives in question. Calls, in this connection, for special attention to be paid to micro-plastics and nanoparticles, which pose new problems which are not necessarily covered by the REACH regulation;

| 41. | calls, in the context of eco-design, for particular attention to be paid to 3D printers, the development of which could have a significant impact on the quantitative and qualitative production of plastic waste; |
| --- | --- |

41.

calls, in the context of eco-design, for particular attention to be paid to 3D printers, the development of which could have a significant impact on the quantitative and qualitative production of plastic waste;

Single-use disposable plastics

| 42. | believes there needs to be a combination of measures to address short-lived single-use disposable plastic items, including provisions to reduce their use and promote articles designed for repeated use. Irresponsibly-discarded empty plastic carrier bags and bottles epitomise our throwaway society and blight our environment; in addition to providing incentives for re-use, a ban on the free provision of plastic carrier bags is showing positive results in a number of regions and should therefore be considered; |
| --- | --- |

42.

believes there needs to be a combination of measures to address short-lived single-use disposable plastic items, including provisions to reduce their use and promote articles designed for repeated use. Irresponsibly-discarded empty plastic carrier bags and bottles epitomise our throwaway society and blight our environment; in addition to providing incentives for re-use, a ban on the free provision of plastic carrier bags is showing positive results in a number of regions and should therefore be considered;

| 43. | believes that voluntary initiatives at national level, including take-back responsibility for retailers, could help to transfer the cost of handling some plastic waste from waste and environmental authorities throughout the entire value chain. Such measures need to include a consumer education programme; |
| --- | --- |

43.

believes that voluntary initiatives at national level, including take-back responsibility for retailers, could help to transfer the cost of handling some plastic waste from waste and environmental authorities throughout the entire value chain. Such measures need to include a consumer education programme;

| 44. | considers that ‘take-back’ could be encouraged and extended to other frequently visited venues (workplaces and schools often operate small equivalent schemes which help them collect a viable quantity for recycling); |
| --- | --- |

44.

considers that ‘take-back’ could be encouraged and extended to other frequently visited venues (workplaces and schools often operate small equivalent schemes which help them collect a viable quantity for recycling);

Biodegradable

| 45. | expresses its concern that consumers may be misled by the term ‘biodegradable’ when these plastics will often only biodegrade in industrial composting facilities at high temperatures; |
| --- | --- |

45.

expresses its concern that consumers may be misled by the term ‘biodegradable’ when these plastics will often only biodegrade in industrial composting facilities at high temperatures;

| 46. | stresses that it is important to distinguish between degradable, biodegradable and compostable. These terms are often incorrectly used interchangeably. A plastic may be degradable but not biodegradable or it may be only compostable; |
| --- | --- |

46.

stresses that it is important to distinguish between degradable, biodegradable and compostable. These terms are often incorrectly used interchangeably. A plastic may be degradable but not biodegradable or it may be only compostable;

| 47. | believes harmonisation and simplification are essential in all labelling for consumers. However is concerned that some information is confusing or misleading and may need removing. Information on appropriate recycling procedures and recycled content should be easy to understand; |
| --- | --- |

47.

believes harmonisation and simplification are essential in all labelling for consumers. However is concerned that some information is confusing or misleading and may need removing. Information on appropriate recycling procedures and recycled content should be easy to understand;

| 48. | is also concerned that the term ‘bio-based plastics’ may imply green credentials when biomass used in production may not be sustainable or could compete with land for food use; advocates the promotion and support of bioplastics research and development. Here, close attention should be paid to environmentally sound design as regards, inter alia, raw materials (as far as possible obtained from waste), additives (environmentally sound and safe to use), reparability (easily repaired), recyclability and decomposability; |
| --- | --- |

48.

is also concerned that the term ‘bio-based plastics’ may imply green credentials when biomass used in production may not be sustainable or could compete with land for food use; advocates the promotion and support of bioplastics research and development. Here, close attention should be paid to environmentally sound design as regards, inter alia, raw materials (as far as possible obtained from waste), additives (environmentally sound and safe to use), reparability (easily repaired), recyclability and decomposability;

| 49. | therefore calls for existing European Normalisation Standards for compostability (both industrial and home), biodegradability and degradability, such as EN 13432, EN 14995, to be fully applied, but also to be verified in view of their validity for appropriate environments including soil, marine and freshwater, wastewater treatment plants and anaerobic digestion, in order to achieve a EU-wide labelling system which distinguishes very clearly these claims; |
| --- | --- |

49.

therefore calls for existing European Normalisation Standards for compostability (both industrial and home), biodegradability and degradability, such as EN 13432, EN 14995, to be fully applied, but also to be verified in view of their validity for appropriate environments including soil, marine and freshwater, wastewater treatment plants and anaerobic digestion, in order to achieve a EU-wide labelling system which distinguishes very clearly these claims;

| 50. | calls for international agreement on a ban on the use of decomposable plastic micro beads for cosmetic use in facial scrubs, toothpaste and other personal products to prevent this relatively new source of pollution entering the food chain; |
| --- | --- |

50.

calls for international agreement on a ban on the use of decomposable plastic micro beads for cosmetic use in facial scrubs, toothpaste and other personal products to prevent this relatively new source of pollution entering the food chain;

| 51. | is concerned that plastic labelled as ‘oxo-degradable’ is only oxo-fragmentable, not bio degradable and when fragmentation takes place there is the potential to leave micro plastic particles in the environment. When introduced into the recycling process oxo-fragmentable plastic has been found to contaminate and compromise the quality of the recycled material. Again there is considerable evidence to call for a ban on oxodegradable plastic until further research establishes these products have added value; |
| --- | --- |

51.

is concerned that plastic labelled as ‘oxo-degradable’ is only oxo-fragmentable, not bio degradable and when fragmentation takes place there is the potential to leave micro plastic particles in the environment. When introduced into the recycling process oxo-fragmentable plastic has been found to contaminate and compromise the quality of the recycled material. Again there is considerable evidence to call for a ban on oxodegradable plastic until further research establishes these products have added value;

Marine waste

| 52. | agrees with the Green Paper that ‘the majority of waste found in our seas and oceans is plastic’ and this represents a serious global problem. Believes that reduction of the volume of plastic entering the marine environment must be a priority for all stakeholders in the lifecycle of plastic; |
| --- | --- |

52.

agrees with the Green Paper that ‘the majority of waste found in our seas and oceans is plastic’ and this represents a serious global problem. Believes that reduction of the volume of plastic entering the marine environment must be a priority for all stakeholders in the lifecycle of plastic;

| 53. | recognises the need for further studies to examine sources, transport and occurrence of both macro and micro plastic litter in the environment. It is also necessary to understand the impact of these microscopic particles on marine life; |
| --- | --- |

53.

recognises the need for further studies to examine sources, transport and occurrence of both macro and micro plastic litter in the environment. It is also necessary to understand the impact of these microscopic particles on marine life;

| 54. | calls for an increase in monitoring and data collection to assess the success or failure of specific measures and help develop possible solutions. Considers that a specific reduction target for marine litter can only be formulated if accurate data on the current volumes of marine litter are available; |
| --- | --- |

54.

calls for an increase in monitoring and data collection to assess the success or failure of specific measures and help develop possible solutions. Considers that a specific reduction target for marine litter can only be formulated if accurate data on the current volumes of marine litter are available;

| 55. | advocates a two pronged strategy:






  (a) | a land-based/shore-based strategy to prevent plastic waste from entering the aquatic environment; |
| --- | --- | --- |

55.

advocates a two pronged strategy:

(a)

a land-based/shore-based strategy to prevent plastic waste from entering the aquatic environment;

| (b) | a marine based strategy to ensure that ocean and sea based activities handle their waste responsibly. |
| --- | --- |

(b)

a marine based strategy to ensure that ocean and sea based activities handle their waste responsibly.

the land/shore-based strategy relies on the measures noted above, whereas the marine-based strategy relies on the better enforcement of MARPOL (International Convention for the prevention of pollution from ships) and other Conventions;

| 56. | recommends greater policy coordination and enforcement between the EU and the International Maritime Organisation (The United Nations agency responsible for the safety and security of shipping and the prevention of marine pollution by ships); |
| --- | --- |

56.

recommends greater policy coordination and enforcement between the EU and the International Maritime Organisation (The United Nations agency responsible for the safety and security of shipping and the prevention of marine pollution by ships);

| 57. | recognises that the EU Marine Strategy Framework Directive has set targets for marine litter and any new targets should be coherent with existing waste targets. Specific targets for plastic could be considered but any target should be SMART and not just call for a reduction. Existing waste and resources legislation under MARPOL need to be better enforced now; |
| --- | --- |

57.

recognises that the EU Marine Strategy Framework Directive has set targets for marine litter and any new targets should be coherent with existing waste targets. Specific targets for plastic could be considered but any target should be SMART and not just call for a reduction. Existing waste and resources legislation under MARPOL need to be better enforced now;

| 58. | recognises the role of LRAs and their partners in awareness-raising. Knowledge of the spread of plastic litter in the riverine and marine environment is a precondition to rectifying and reducing the magnitude of the problem. This can involve promotion of educational programmes in schools, encouraging responsible behaviour in the tourist industry, and initiatives by the plastics industry. The introduction of ‘European Clean-Up’ weeks or similar initiatives with appropriate publicity would raise the profile of the problem; |
| --- | --- |

58.

recognises the role of LRAs and their partners in awareness-raising. Knowledge of the spread of plastic litter in the riverine and marine environment is a precondition to rectifying and reducing the magnitude of the problem. This can involve promotion of educational programmes in schools, encouraging responsible behaviour in the tourist industry, and initiatives by the plastics industry. The introduction of ‘European Clean-Up’ weeks or similar initiatives with appropriate publicity would raise the profile of the problem;

| 59. | encourages cooperation between LRAs along with their partners to better focus valuable ‘clean up’ initiatives. While coastal clean-up days, beach litter bins and beach collections only collect a small percentage of litter, they also help raise awareness in local communities. Campaigns by the fishing industry to fish for litter on non-fishing days and to be able to dispose of litter at the nearest port rather than the home port could be promoted; the CoR in this regard support plans of the European Commission to launch in 2014 a European-wide ‘Clean- Up-Day’ and offers to explore cooperation on this initiative; |
| --- | --- |

59.

encourages cooperation between LRAs along with their partners to better focus valuable ‘clean up’ initiatives. While coastal clean-up days, beach litter bins and beach collections only collect a small percentage of litter, they also help raise awareness in local communities. Campaigns by the fishing industry to fish for litter on non-fishing days and to be able to dispose of litter at the nearest port rather than the home port could be promoted; the CoR in this regard support plans of the European Commission to launch in 2014 a European-wide ‘Clean- Up-Day’ and offers to explore cooperation on this initiative;

| 60. | believes that LRAs alone cannot meet the costs of marine litter and calls for greater cooperation within Member States at all levels of governance and responsible institutions, water authorities, port authorities and the waste management industry to find cost-effective ways of preventing plastic waste entering the marine environment; |
| --- | --- |

60.

believes that LRAs alone cannot meet the costs of marine litter and calls for greater cooperation within Member States at all levels of governance and responsible institutions, water authorities, port authorities and the waste management industry to find cost-effective ways of preventing plastic waste entering the marine environment;

| 61. | calls for an improvement in the knowledge base through programmes supported by the EU such as LIFE+ or EFRE funds, to investigate the impact of plastic waste in both the soil and marine environment; |
| --- | --- |

61.

calls for an improvement in the knowledge base through programmes supported by the EU such as LIFE+ or EFRE funds, to investigate the impact of plastic waste in both the soil and marine environment;

Concluding remark

| 62. | calls on all actors in the waste management industry to work together to reduce the incidence and impact of plastic in the environment and the use of raw materials and recognise the potential of plastics as a valuable resource. This is a challenge as plastic is cheap and versatile with a growing number of applications but its durability creates a lasting problem. While the growing accumulation of plastic litter in the global marine environment is a wake-up call it is acknowledged that the majority of this uncontrolled disposal originated on land. Plastic litter in any environment is unacceptable! |
| --- | --- |

62.

calls on all actors in the waste management industry to work together to reduce the incidence and impact of plastic in the environment and the use of raw materials and recognise the potential of plastics as a valuable resource. This is a challenge as plastic is cheap and versatile with a growing number of applications but its durability creates a lasting problem. While the growing accumulation of plastic litter in the global marine environment is a wake-up call it is acknowledged that the majority of this uncontrolled disposal originated on land. Plastic litter in any environment is unacceptable!

Brussels, 8 October 2013.

The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO

---

| 5.12.2013 | EN | Official Journal of the European Union | C 356/37 |
| --- | --- | --- | --- |

5.12.2013

EN

Official Journal of the European Union

C 356/37

---

Opinion of the Committee of the Regions on ‘EU Strategy for Adaptation to Climate Change’

2013/C 356/07

THE COMMITTEE OF THE REGIONS

| — | recognises that the effects of global climate change impacts could be as equally significant as local impacts to some European cities and regions and therefore, sees the need for a wider focus for adaptation strategies beyond the EU; |
| --- | --- |

—

recognises that the effects of global climate change impacts could be as equally significant as local impacts to some European cities and regions and therefore, sees the need for a wider focus for adaptation strategies beyond the EU;

| — | views green infrastructure as providing a classic ‘low regrets, low-cost adaptation’ option that will help increase resilience in urban areas; |
| --- | --- |

—

views green infrastructure as providing a classic ‘low regrets, low-cost adaptation’ option that will help increase resilience in urban areas;

| — | is extremely concerned about the impact of climate change on agricultural, forestry and fisheries production; |
| --- | --- |

—

is extremely concerned about the impact of climate change on agricultural, forestry and fisheries production;

| — | contends that greater attention is required in the SACC to driving adaptation forwards at the local level, where impacts are experienced most acutely and first responders are located; |
| --- | --- |

—

contends that greater attention is required in the SACC to driving adaptation forwards at the local level, where impacts are experienced most acutely and first responders are located;

| — | recognises that funding is key to the implementation of adaptation responses at a local level; |
| --- | --- |

—

recognises that funding is key to the implementation of adaptation responses at a local level;

| — | recognises the importance of local and regional networks in the promotion of adaptation measures, and believes that EU funding should be used to provide appropriate financial support for such networks. However, the CoR does not recommend a new organisation or voluntary commitment for adaptation, as suggested in the SACC, as it would create duplication, be confusing to participants and could waste valuable resources. The existing Covenant of Mayors should be better resourced, and re-launched as a network focused on climate action in both its aspects, mitigation and adaptation; |
| --- | --- |

—

recognises the importance of local and regional networks in the promotion of adaptation measures, and believes that EU funding should be used to provide appropriate financial support for such networks. However, the CoR does not recommend a new organisation or voluntary commitment for adaptation, as suggested in the SACC, as it would create duplication, be confusing to participants and could waste valuable resources. The existing Covenant of Mayors should be better resourced, and re-launched as a network focused on climate action in both its aspects, mitigation and adaptation;

| — | concludes that, due to the urgency required, the proposed review of the strategy in 2017 should focus not only on progress with national adaptation strategies and whether legislation is necessary in the future, but also should be the target date for achievement of a number of implementation milestones at all governance levels, and that the SACC should be accompanied by guidance and support for sub-national bodies as well as Member States to achieve these milestones; |
| --- | --- |

—

concludes that, due to the urgency required, the proposed review of the strategy in 2017 should focus not only on progress with national adaptation strategies and whether legislation is necessary in the future, but also should be the target date for achievement of a number of implementation milestones at all governance levels, and that the SACC should be accompanied by guidance and support for sub-national bodies as well as Member States to achieve these milestones;

| Rapporteur | Mr Neil SWANNICK (UK/PES), Member of Manchester City Council |
| --- | --- |
| Reference document | 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 Strategy on adaptation to climate change
  COM(2013) 216 final |

Rapporteur

Mr Neil SWANNICK (UK/PES), Member of Manchester City Council

Reference document

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 Strategy on adaptation to climate change

COM(2013) 216 final

I.   POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS

| 1. | acknowledges that the expected 2015 UN agreement on climate change will cover not only mitigation but also adaptation. Building resilience to climate change — particularly amongst the poorest and most vulnerable nations of the world — is absolutely crucial if the agreement is to be equitable; |
| --- | --- |

1.

acknowledges that the expected 2015 UN agreement on climate change will cover not only mitigation but also adaptation. Building resilience to climate change — particularly amongst the poorest and most vulnerable nations of the world — is absolutely crucial if the agreement is to be equitable;

| 2. | stresses that climate change mitigation is the best way to address many of the key challenges of adaptation in a preventive way, and that stronger and more ambitious climate-change mitigation measures will enable adaptation measures to remain more limited; |
| --- | --- |

2.

stresses that climate change mitigation is the best way to address many of the key challenges of adaptation in a preventive way, and that stronger and more ambitious climate-change mitigation measures will enable adaptation measures to remain more limited;

| 3. | notes that the world has crossed a perilous threshold, with atmospheric carbon dioxide levels now at 400 ppm; |
| --- | --- |

3.

notes that the world has crossed a perilous threshold, with atmospheric carbon dioxide levels now at 400 ppm;

| 4. | calls on the EU negotiators to move forward on raising ambition and enlisting international support for a 2015 Agreement, which unambiguously includes the transformation of the world’s energy system; |
| --- | --- |

4.

calls on the EU negotiators to move forward on raising ambition and enlisting international support for a 2015 Agreement, which unambiguously includes the transformation of the world’s energy system;

| 5. | is acutely aware that many developing countries are threatened by slow-onset climate change processes such as sea-level rise and increasing temperatures which are exacerbating the threats posed by extreme weather events and seriously undermine prospects for achieving global sustainable development; |
| --- | --- |

5.

is acutely aware that many developing countries are threatened by slow-onset climate change processes such as sea-level rise and increasing temperatures which are exacerbating the threats posed by extreme weather events and seriously undermine prospects for achieving global sustainable development;

| 6. | stresses that water resources are directly impacted by climate change, and the management of these resources affects ecosystems and plant and animal production, socio-economic activities and human health; |
| --- | --- |

6.

stresses that water resources are directly impacted by climate change, and the management of these resources affects ecosystems and plant and animal production, socio-economic activities and human health;

| 7. | calls on the Council and the Commission for the CoR to be associated not only with work on climate change mitigation, but also with the technical work related to the Nairobi Work Programme focusing on ecosystem-based adaptation and biodiversity; |
| --- | --- |

7.

calls on the Council and the Commission for the CoR to be associated not only with work on climate change mitigation, but also with the technical work related to the Nairobi Work Programme focusing on ecosystem-based adaptation and biodiversity;

Adaptation and resilience

| 8. | welcomes the references to resilience within the EU Strategy on Adaptation to Climate Change (SACC) and its overall aim to support progress towards a ‘climate-resilient Europe’. The CoR believes that locating climate change adaptation as a dimension of resilience is a valuable approach. A city can recover from a shock to the urban system (climatic or otherwise) if underlying resilience is high, but can be severely weakened, if low; |
| --- | --- |

8.

welcomes the references to resilience within the EU Strategy on Adaptation to Climate Change (SACC) and its overall aim to support progress towards a ‘climate-resilient Europe’. The CoR believes that locating climate change adaptation as a dimension of resilience is a valuable approach. A city can recover from a shock to the urban system (climatic or otherwise) if underlying resilience is high, but can be severely weakened, if low;

| 9. | views building links between climate change adaptation and the disaster risk management and emergency planning communities as essential; |
| --- | --- |

9.

views building links between climate change adaptation and the disaster risk management and emergency planning communities as essential;

| 10. | in the context of resilience, considers adaptation to be:






  — | a holistic agenda, cutting across systems, sectors, spatial scales and timescales, |
| --- | --- | --- |

10.

in the context of resilience, considers adaptation to be:

—

a holistic agenda, cutting across systems, sectors, spatial scales and timescales,

| — | one element of a broader strategy needed to build the resilience of Europe and the cities and regions within it, and |
| --- | --- |

—

one element of a broader strategy needed to build the resilience of Europe and the cities and regions within it, and

| — | a process of identifying and subsequently reducing risks from extreme weather and climate hazards, thereby lessening the intensity of related shocks; |
| --- | --- |

—

a process of identifying and subsequently reducing risks from extreme weather and climate hazards, thereby lessening the intensity of related shocks;

| 11. | understands that negative impacts can be expected from climate change even where strong adaptation responses are developed and the objective of limiting warming to an average of 2 °C is respected. The priority is to become resilient to these events and therefore the use of the term ‘climate-resilience’ is more appropriate than ‘climate-proofing’; |
| --- | --- |

11.

understands that negative impacts can be expected from climate change even where strong adaptation responses are developed and the objective of limiting warming to an average of 2 °C is respected. The priority is to become resilient to these events and therefore the use of the term ‘climate-resilience’ is more appropriate than ‘climate-proofing’;

| 12. | recognises that the effects of global climate change impacts could be as equally significant as local impacts to some European cities and regions through the effects on global logistics and supply chains, food security and migration (of humans, flora and fauna and diseases) and therefore, sees the need for a wider focus for adaptation strategies beyond the EU. In the same manner that development and cooperation, food and energy are supported globally, it is appropriate that adaptation is supported, given its potential risks and benefits for the EU; |
| --- | --- |

12.

recognises that the effects of global climate change impacts could be as equally significant as local impacts to some European cities and regions through the effects on global logistics and supply chains, food security and migration (of humans, flora and fauna and diseases) and therefore, sees the need for a wider focus for adaptation strategies beyond the EU. In the same manner that development and cooperation, food and energy are supported globally, it is appropriate that adaptation is supported, given its potential risks and benefits for the EU;

| 13. | notes the body of research focusing on the impact of climate change on cultural heritage, and contends that adaptation strategies should include assessments of the vulnerability of heritage assets, such as buildings, art and archives, to extreme weather events and environmental degradation; |
| --- | --- |

13.

notes the body of research focusing on the impact of climate change on cultural heritage, and contends that adaptation strategies should include assessments of the vulnerability of heritage assets, such as buildings, art and archives, to extreme weather events and environmental degradation;

| 14. | views green infrastructure as providing a classic ‘low regrets, low-cost adaptation’ option that will help increase resilience in urban areas through moderating surface temperature and reducing rainwater run-off. An adaptation approach based around natural and urban systems is essential: for example, ecological corridors which cross administrative boundaries to support wildlife migration in a changing climate. It is therefore helpful to promote ecosystems or green infrastructure as critical infrastructure; |
| --- | --- |

14.

views green infrastructure as providing a classic ‘low regrets, low-cost adaptation’ option that will help increase resilience in urban areas through moderating surface temperature and reducing rainwater run-off. An adaptation approach based around natural and urban systems is essential: for example, ecological corridors which cross administrative boundaries to support wildlife migration in a changing climate. It is therefore helpful to promote ecosystems or green infrastructure as critical infrastructure;

| 15. | maintains that healthy ecosystems and rich biodiversity will strengthen local and regional resilience to climate change, whilst emphasising that these systems themselves are also threatened by the changing climate. This theme should be recognised more forcefully within the SACC, national adaptation strategies and EU programmes; |
| --- | --- |

15.

maintains that healthy ecosystems and rich biodiversity will strengthen local and regional resilience to climate change, whilst emphasising that these systems themselves are also threatened by the changing climate. This theme should be recognised more forcefully within the SACC, national adaptation strategies and EU programmes;

Adaptation and economic competitiveness

| 16. | welcomes the connection made within the SACC between adapting to extreme weather and climate change hazards and safeguarding Europe’s future economic prosperity, but warns that measures to promote adaptation in order to maintain growth and competitiveness must not be at the expense of social welfare and health; |
| --- | --- |

16.

welcomes the connection made within the SACC between adapting to extreme weather and climate change hazards and safeguarding Europe’s future economic prosperity, but warns that measures to promote adaptation in order to maintain growth and competitiveness must not be at the expense of social welfare and health;

| 17. | recognises the significant direct costs associated with weather and climate hazards, such as damage to buildings and infrastructure. Therefore, adaptation responses that include both retrofitting existing assets and embedding resilience into future schemes, such as rail lines and housing developments, should be encouraged; |
| --- | --- |

17.

recognises the significant direct costs associated with weather and climate hazards, such as damage to buildings and infrastructure. Therefore, adaptation responses that include both retrofitting existing assets and embedding resilience into future schemes, such as rail lines and housing developments, should be encouraged;

| 18. | notes that insurance providers may consider that a city or region’s land, buildings and infrastructure are not sufficiently protected from climate change risk. This may result in limitations on insurance availability or increased cost of cover. Areas experiencing such difficulties may find meeting their growth aspirations difficult to achieve and some urban areas may become ‘uninsurable’. The fact that the Commission's Green Paper on the Insurance of Natural and Man-made Disasters will discuss this area is therefore welcome; |
| --- | --- |

18.

notes that insurance providers may consider that a city or region’s land, buildings and infrastructure are not sufficiently protected from climate change risk. This may result in limitations on insurance availability or increased cost of cover. Areas experiencing such difficulties may find meeting their growth aspirations difficult to achieve and some urban areas may become ‘uninsurable’. The fact that the Commission's Green Paper on the Insurance of Natural and Man-made Disasters will discuss this area is therefore welcome;

| 19. | identifies the importance of assessing climate impact costs so that the value of pre-emptive adaptation actions can be compared. This would bring a better understanding of the economic opportunities of adaptation and costs avoided. Economic aspects of climate change were already analysed in the Stern Review. Further research in this field should be encouraged to support the development of business cases for mainstreaming adaptation across policy and strategy; |
| --- | --- |

19.

identifies the importance of assessing climate impact costs so that the value of pre-emptive adaptation actions can be compared. This would bring a better understanding of the economic opportunities of adaptation and costs avoided. Economic aspects of climate change were already analysed in the Stern Review. Further research in this field should be encouraged to support the development of business cases for mainstreaming adaptation across policy and strategy;

| 20. | promotes a ‘whole lifecycle’ approach to assessing costs and benefits of capital to secure long term payback associated with climate-resilient investments. Accounts and risk registers should be required to include the economic, environmental and social implications of actions and capital investments that fail to account for the changing climate; |
| --- | --- |

20.

promotes a ‘whole lifecycle’ approach to assessing costs and benefits of capital to secure long term payback associated with climate-resilient investments. Accounts and risk registers should be required to include the economic, environmental and social implications of actions and capital investments that fail to account for the changing climate;

| 21. | views the potential for extreme weather and climate change to disrupt networked infrastructure systems to be a key focus of adaptation strategies. A weather or climate hazard, such as of the loss of an electricity sub-station or ICT hub, can have indirect implications or ‘cascading’ effects across many economic sectors and services; |
| --- | --- |

21.

views the potential for extreme weather and climate change to disrupt networked infrastructure systems to be a key focus of adaptation strategies. A weather or climate hazard, such as of the loss of an electricity sub-station or ICT hub, can have indirect implications or ‘cascading’ effects across many economic sectors and services;

| 22. | observes that the links between socio-economic systems, climate change and infrastructure may lead to changes in travel preferences or energy consumption habits, significantly affecting the demand for and supply of infrastructure services; |
| --- | --- |

22.

observes that the links between socio-economic systems, climate change and infrastructure may lead to changes in travel preferences or energy consumption habits, significantly affecting the demand for and supply of infrastructure services;

| 23. | is extremely concerned about the impact of climate change on agricultural, forestry and fisheries production; asks that EU policies on these matters help to increase the resilience to climate change of these vital primary production sources and of the ecosystems which make this production possible; |
| --- | --- |

23.

is extremely concerned about the impact of climate change on agricultural, forestry and fisheries production; asks that EU policies on these matters help to increase the resilience to climate change of these vital primary production sources and of the ecosystems which make this production possible;

The adaptation target

| 24. | recognises the uncertainty associated with future atmospheric concentrations of greenhouse gases and their associated temperature rises and impacts. The SACC focuses on adapting to the implications of a world that is 2 °C warmer. However, the current science, as well as the IPCC’s AR4 (1), suggests that current atmospheric concentrations (if simply maintained) will lead to warming of more than 2 °C. Therefore, under the precautionary principle, we advocate putting in place measures that meet the adaptation needs of a higher projected future temperature rise; |
| --- | --- |

24.

recognises the uncertainty associated with future atmospheric concentrations of greenhouse gases and their associated temperature rises and impacts. The SACC focuses on adapting to the implications of a world that is 2 °C warmer. However, the current science, as well as the IPCC’s AR4 (1), suggests that current atmospheric concentrations (if simply maintained) will lead to warming of more than 2 °C. Therefore, under the precautionary principle, we advocate putting in place measures that meet the adaptation needs of a higher projected future temperature rise;

Vulnerability to extreme weather and climate change hazards

| 25. | welcomes the references to vulnerability within the SACC as an important element of understanding and adapting to climate change; reducing the vulnerability of ‘receptors’ (including people, infrastructure and economic sectors) to harm from extreme weather and climate change hazards is the primary goal of adaptation; |
| --- | --- |

25.

welcomes the references to vulnerability within the SACC as an important element of understanding and adapting to climate change; reducing the vulnerability of ‘receptors’ (including people, infrastructure and economic sectors) to harm from extreme weather and climate change hazards is the primary goal of adaptation;

| 26. | promotes a vulnerability focused approach to adaptation, because:






  — | it is methodologically difficult, time-consuming and expensive to provide climate change projections at the local level whilst data on factors affecting vulnerability is generally more readily available. A vulnerability-focused approach allows immediate progress to be made in the absence of detailed localised climate change projections, |
| --- | --- | --- |

26.

promotes a vulnerability focused approach to adaptation, because:

—

it is methodologically difficult, time-consuming and expensive to provide climate change projections at the local level whilst data on factors affecting vulnerability is generally more readily available. A vulnerability-focused approach allows immediate progress to be made in the absence of detailed localised climate change projections,

| — | the World Health Organization notes that climate change is the greatest public health challenge of the 21st century, |
| --- | --- |

—

the World Health Organization notes that climate change is the greatest public health challenge of the 21st century,

| — | the most vulnerable groups, including the elderly, very young and socio-economically deprived, are particularly threatened by extreme weather and climate change because of their lack of resources and access to insurance. A vulnerability-based approach supports the inclusion of health and social justice as part of the rationale for climate change adaptation action; |
| --- | --- |

—

the most vulnerable groups, including the elderly, very young and socio-economically deprived, are particularly threatened by extreme weather and climate change because of their lack of resources and access to insurance. A vulnerability-based approach supports the inclusion of health and social justice as part of the rationale for climate change adaptation action;

| 27. | states that the SACC would benefit from developing a clearer use of terms such as risk, vulnerability, exposure and resilience, including the provision of basic definitions; |
| --- | --- |

27.

states that the SACC would benefit from developing a clearer use of terms such as risk, vulnerability, exposure and resilience, including the provision of basic definitions;

Multilevel governance

| 28. | notes that the SACC focuses on integrating adaptation into EU action and the development of national adaptation strategies, but pays less attention to the importance of supporting Member States in embedding adaptation regionally and locally; |
| --- | --- |

28.

notes that the SACC focuses on integrating adaptation into EU action and the development of national adaptation strategies, but pays less attention to the importance of supporting Member States in embedding adaptation regionally and locally;

| 29. | stresses that a more explicit recognition of the role of multilevel governance in delivering climate change adaptation responses is needed. This would help to:






  — | enhance awareness that adaptation roles and requirements differ according to the spatial scale considered, |
| --- | --- | --- |

29.

stresses that a more explicit recognition of the role of multilevel governance in delivering climate change adaptation responses is needed. This would help to:

—

enhance awareness that adaptation roles and requirements differ according to the spatial scale considered,

| — | form a clearer understanding of responsibility for adaptation responses at different spatial scales, e.g. responsibility for strategic and local highways, |
| --- | --- |

—

form a clearer understanding of responsibility for adaptation responses at different spatial scales, e.g. responsibility for strategic and local highways,

| — | recognise the importance of Member State and regional scale trans-boundary adaptation issues, for example flood risk management, and |
| --- | --- |

—

recognise the importance of Member State and regional scale trans-boundary adaptation issues, for example flood risk management, and

| — | support the translation of Member State adaptation policies through to the regional and local level where implementation will take place; |
| --- | --- |

—

support the translation of Member State adaptation policies through to the regional and local level where implementation will take place;

| 30. | recognises that national strategies can provide a high-level overview of impacts and risks but, understandably, will often miss regionally and locally relevant insights and issues; |
| --- | --- |

30.

recognises that national strategies can provide a high-level overview of impacts and risks but, understandably, will often miss regionally and locally relevant insights and issues;

| 31. | emphasises that national adaptation strategies should provide governance pathways to support the process of adapting regionally and locally, and that Member States, in partnership with local and regional authorities, should monitor the development and implementation of adaptation strategies at regional and local levels: guidance should be provided by the EU on how to perform these tasks; |
| --- | --- |

31.

emphasises that national adaptation strategies should provide governance pathways to support the process of adapting regionally and locally, and that Member States, in partnership with local and regional authorities, should monitor the development and implementation of adaptation strategies at regional and local levels: guidance should be provided by the EU on how to perform these tasks;

| 32. | Member States should be encouraged to establish networks that bring together stakeholders from a diverse range of sectors to co-produce adaptation strategies across spatial scales; |
| --- | --- |

32.

Member States should be encouraged to establish networks that bring together stakeholders from a diverse range of sectors to co-produce adaptation strategies across spatial scales;

| 33. | contends that regional adaptation strategies are best placed to provide background context, signposting of relevant resources and guidance to support local action. Regions and municipalities can also highlight prevalent climate change impacts, which are often regionally specific due to variations associated with areas such as islands, mountain regions, conurbations and coastal areas; |
| --- | --- |

33.

contends that regional adaptation strategies are best placed to provide background context, signposting of relevant resources and guidance to support local action. Regions and municipalities can also highlight prevalent climate change impacts, which are often regionally specific due to variations associated with areas such as islands, mountain regions, conurbations and coastal areas;

| 34. | recognises the differences in governance structures between Member States for implementing strategies locally, with some, but not all, having relevant regional planning structures but argues that in all cases some form of sub-national adaptation governance framework is needed to transmit Member State adaptation investment, legislation and policy down to the local level; |
| --- | --- |

34.

recognises the differences in governance structures between Member States for implementing strategies locally, with some, but not all, having relevant regional planning structures but argues that in all cases some form of sub-national adaptation governance framework is needed to transmit Member State adaptation investment, legislation and policy down to the local level;

| 35. | contends that greater attention is required in the SACC to driving adaptation forwards at the local level, where impacts are experienced most acutely and first responders are located. The success of Europe’s climate change adaptation response will be measured by the extent to which local areas have developed and implemented adaptation responses to reduce extreme weather and climate change risk; |
| --- | --- |

35.

contends that greater attention is required in the SACC to driving adaptation forwards at the local level, where impacts are experienced most acutely and first responders are located. The success of Europe’s climate change adaptation response will be measured by the extent to which local areas have developed and implemented adaptation responses to reduce extreme weather and climate change risk;

| 36. | acknowledges that cities are areas where adaptation responses are crucially important. The majority of EU citizens live in cities. Cities magnify climate change impacts (e.g. the urban heat island effect), contain vulnerable receptors and are key economic and cultural centres; |
| --- | --- |

36.

acknowledges that cities are areas where adaptation responses are crucially important. The majority of EU citizens live in cities. Cities magnify climate change impacts (e.g. the urban heat island effect), contain vulnerable receptors and are key economic and cultural centres;

| 37. | emphasises that adaptation should be mainstreamed especially in fields such as spatial planning given its key role in securing long-term changes to the landscape and built environment; |
| --- | --- |

37.

emphasises that adaptation should be mainstreamed especially in fields such as spatial planning given its key role in securing long-term changes to the landscape and built environment;

Implementation of adaptation responses regionally and locally

| 38. | welcomes the commitment to at least 20 % of the 2014-2020 Multiannual Financial Framework for increasing climate-related expenditure and to integrate adaptation within EU level funding, policy and research programmes including structural funds, Horizon 2020, Life+ and the rural development programme; |
| --- | --- |

38.

welcomes the commitment to at least 20 % of the 2014-2020 Multiannual Financial Framework for increasing climate-related expenditure and to integrate adaptation within EU level funding, policy and research programmes including structural funds, Horizon 2020, Life+ and the rural development programme;

| 39. | acknowledges that the principle of subsidiarity requires that Member States ultimately have responsibility for encouraging the integration of adaptation in regional and local policy and practice; |
| --- | --- |

39.

acknowledges that the principle of subsidiarity requires that Member States ultimately have responsibility for encouraging the integration of adaptation in regional and local policy and practice;

| 40. | recognises that the level of adaptation will vary between Member States, regions and cities due to the extent of climate change hazards, vulnerability to those hazards and capacity to adapt. This will, in turn, influence their ability to prepare for and respond to extreme weather and climate change; |
| --- | --- |

40.

recognises that the level of adaptation will vary between Member States, regions and cities due to the extent of climate change hazards, vulnerability to those hazards and capacity to adapt. This will, in turn, influence their ability to prepare for and respond to extreme weather and climate change;

| 41. | promotes the development of ‘adaptation typologies’ to support city-scale strategy formation. Identifying similarities between cities, such as current and projected climate hazards, and socio-economic characteristics, can help form networks of broad city types that share similar adaptation needs. These city groups would encourage more effective strategic adaptation planning and policy making, resource allocation, provision of appropriate guidance and establishment of learning networks. Notes that some voluntary associations already exist and should be supported; |
| --- | --- |

41.

promotes the development of ‘adaptation typologies’ to support city-scale strategy formation. Identifying similarities between cities, such as current and projected climate hazards, and socio-economic characteristics, can help form networks of broad city types that share similar adaptation needs. These city groups would encourage more effective strategic adaptation planning and policy making, resource allocation, provision of appropriate guidance and establishment of learning networks. Notes that some voluntary associations already exist and should be supported;

| 42. | points out that given the diversity of adaptation demands and capacities, such as differing governance arrangements, access to resources and biophysical characteristics, that influence the development and implementation of adaptation responses, the term ‘best practice’ is misleading. In this context, as practice is not wholly portable, the term ‘good practice’ would be more helpful; |
| --- | --- |

42.

points out that given the diversity of adaptation demands and capacities, such as differing governance arrangements, access to resources and biophysical characteristics, that influence the development and implementation of adaptation responses, the term ‘best practice’ is misleading. In this context, as practice is not wholly portable, the term ‘good practice’ would be more helpful;

| 43. | identifies the building of adaptive capacity as an important foundation upon which to develop and implement adaptation responses. Therefore establishing Member State and sub-national hubs, to deliver adaptation capacity building, training, exchange of information and experience between cities and regions is vital; |
| --- | --- |

43.

identifies the building of adaptive capacity as an important foundation upon which to develop and implement adaptation responses. Therefore establishing Member State and sub-national hubs, to deliver adaptation capacity building, training, exchange of information and experience between cities and regions is vital;

| 44. | underlines the importance of environmental education and communication and the key role of local and regional authorities in this respect; stresses that it is important to tailor communication, in particular on climate change, to local audiences and conditions, and that financial support should be made available for such communication and education campaigns; |
| --- | --- |

44.

underlines the importance of environmental education and communication and the key role of local and regional authorities in this respect; stresses that it is important to tailor communication, in particular on climate change, to local audiences and conditions, and that financial support should be made available for such communication and education campaigns;

| 45. | recognises that funding is key to the implementation of adaptation responses at a local level. Clarity is needed on where to source the large capital sums needed to progress adaptation, especially since the EU ETS auction revenues referred to are in some doubt. There is a specific need for the inclusion of adaptation in the use of structural funds such as ERDF during the next programming period, and this must be done without reducing the budgets necessary for climate change mitigation; |
| --- | --- |

45.

recognises that funding is key to the implementation of adaptation responses at a local level. Clarity is needed on where to source the large capital sums needed to progress adaptation, especially since the EU ETS auction revenues referred to are in some doubt. There is a specific need for the inclusion of adaptation in the use of structural funds such as ERDF during the next programming period, and this must be done without reducing the budgets necessary for climate change mitigation;

| 46. | recognises the importance of local and regional networks in the promotion of adaptation measures, and believes that EU funding should be used to provide appropriate financial support for such networks. However, the CoR does not recommend a new organisation or voluntary commitment for adaptation, as suggested in the SACC, as it would create duplication, be confusing to participants and could waste valuable resources. The existing Covenant of Mayors should be better resourced, and re-launched as a network focused on climate action in both its aspects, mitigation and adaptation; |
| --- | --- |

46.

recognises the importance of local and regional networks in the promotion of adaptation measures, and believes that EU funding should be used to provide appropriate financial support for such networks. However, the CoR does not recommend a new organisation or voluntary commitment for adaptation, as suggested in the SACC, as it would create duplication, be confusing to participants and could waste valuable resources. The existing Covenant of Mayors should be better resourced, and re-launched as a network focused on climate action in both its aspects, mitigation and adaptation;

| 47. | emphasises the need for the SACC’s adaptation vision to be more proactive than reactive: in developing and implementing adaptation response, attention must be paid to both strategies to reduce long-term risks and enhance preparedness and capacity to respond to present-day weather and climate extremes; |
| --- | --- |

47.

emphasises the need for the SACC’s adaptation vision to be more proactive than reactive: in developing and implementing adaptation response, attention must be paid to both strategies to reduce long-term risks and enhance preparedness and capacity to respond to present-day weather and climate extremes;

Adaptation/mitigation synergies and conflicts

| 48. | recognises that adaptation and mitigation are essential elements of an integrated climate change strategy. Whilst adaptation to current and inevitable future extreme weather and climate change is crucial, it should not be seen as a substitute for mitigation. The Cancun Agreement, developed under the UN Framework Convention on Climate Change, stresses that parties should treat adaptation and mitigation with the same level of priority. However, how resources are allocated sub-nationally will vary; |
| --- | --- |

48.

recognises that adaptation and mitigation are essential elements of an integrated climate change strategy. Whilst adaptation to current and inevitable future extreme weather and climate change is crucial, it should not be seen as a substitute for mitigation. The Cancun Agreement, developed under the UN Framework Convention on Climate Change, stresses that parties should treat adaptation and mitigation with the same level of priority. However, how resources are allocated sub-nationally will vary;

| 49. | points out that encouraging societies and economies to become more resilient to the changing climate is a crucial aspect of strengthening Europe’s competitiveness and quality of life over the coming decades. However it is vital, as a matter of urgency, to step up measures to significantly cut the harmful gas emissions that are responsible for climate change; |
| --- | --- |

49.

points out that encouraging societies and economies to become more resilient to the changing climate is a crucial aspect of strengthening Europe’s competitiveness and quality of life over the coming decades. However it is vital, as a matter of urgency, to step up measures to significantly cut the harmful gas emissions that are responsible for climate change;

| 50. | identifies that whilst climate change adaptation and mitigation are closely linked in principle, integrated adaptation/mitigation activity is at present rare, and that there is an urgent corresponding need for policy, practice and research to recognise and encourage synergy. It is also important that all of the policies conducted by the European Union help to further these two objectives; |
| --- | --- |

50.

identifies that whilst climate change adaptation and mitigation are closely linked in principle, integrated adaptation/mitigation activity is at present rare, and that there is an urgent corresponding need for policy, practice and research to recognise and encourage synergy. It is also important that all of the policies conducted by the European Union help to further these two objectives;

| 51. | acknowledges the benefits that can be realised from measures that address mitigation and adaptation in a complementary manner, otherwise there may be significant dis-benefits arising from adaptation and mitigation measures that conflict, for example the provision of mechanical cooling to respond to higher temperatures in buildings that increases greenhouse gas emissions; |
| --- | --- |

51.

acknowledges the benefits that can be realised from measures that address mitigation and adaptation in a complementary manner, otherwise there may be significant dis-benefits arising from adaptation and mitigation measures that conflict, for example the provision of mechanical cooling to respond to higher temperatures in buildings that increases greenhouse gas emissions;

| 52. | concludes that, due to the urgency required, the proposed review of the strategy in 2017 should focus not only on progress with national adaptation strategies and whether legislation is necessary in the future, but also should be the target date for achievement of a number of implementation milestones at all governance levels, possibly using the adaptation preparedness scoreboard approach, and that the SACC should be accompanied by guidance and support for sub-national bodies as well as Member States to achieve these milestones; |
| --- | --- |

52.

concludes that, due to the urgency required, the proposed review of the strategy in 2017 should focus not only on progress with national adaptation strategies and whether legislation is necessary in the future, but also should be the target date for achievement of a number of implementation milestones at all governance levels, possibly using the adaptation preparedness scoreboard approach, and that the SACC should be accompanied by guidance and support for sub-national bodies as well as Member States to achieve these milestones;

| 53. | considers the European Commission's proposals for an EU strategy for adaptation to climate change to be consistent with the subsidiarity and proportionality principles. |
| --- | --- |

53.

considers the European Commission's proposals for an EU strategy for adaptation to climate change to be consistent with the subsidiarity and proportionality principles.

Brussels, 8 October 2013.

The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO

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(1)  Intergovernmental Panel for Climate Change Assessment Report 4.

1

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| 5.12.2013 | EN | Official Journal of the European Union | C 356/43 |
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5.12.2013

EN

Official Journal of the European Union

C 356/43

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Opinion of the Committee of the Regions — Green infrastructure — enhancing Europe’s natural capital

2013/C 356/08

THE COMMITTEE OF THE REGIONS

| — | stresses the primary role of local and regional authorities in defining and implementing the initiative and urges them to take steps in all the relevant sectorial policies, in particular through their spatial and urban planning, to plan and organise green infrastructure (GI); emphasises that the key to successful GI deployment lies in effective multilevel governance and in the participation of all parties and stakeholders; |
| --- | --- |

—

stresses the primary role of local and regional authorities in defining and implementing the initiative and urges them to take steps in all the relevant sectorial policies, in particular through their spatial and urban planning, to plan and organise green infrastructure (GI); emphasises that the key to successful GI deployment lies in effective multilevel governance and in the participation of all parties and stakeholders;

| — | calls on the Commission to complete, as soon as possible, concrete implementation guides on integrating GI into the range of EU polices; and calls for additional fact-sheets on urban GI; GI should be included in the Reference Framework for Sustainable Cities and the future Urban Development Network; |
| --- | --- |

—

calls on the Commission to complete, as soon as possible, concrete implementation guides on integrating GI into the range of EU polices; and calls for additional fact-sheets on urban GI; GI should be included in the Reference Framework for Sustainable Cities and the future Urban Development Network;

| — | emphasises the urgency of establishing arrangements for including GI and its priority status in the partnership agreements and operational funding programmes as they are currently being designed for the cohesion and structural funds 2014-2020; |
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—

emphasises the urgency of establishing arrangements for including GI and its priority status in the partnership agreements and operational funding programmes as they are currently being designed for the cohesion and structural funds 2014-2020;

| — | calls on the Commission to incorporate requirements aimed at preventing any net loss of biodiversity and ecosystem services into EU legislation; asks the Commission to maintain and extend the eco-conditionality and biodiversity proofing of EU funding; advocates in addition allocating a certain percentage of all EU support for the deployment of grey infrastructure to a biodiversity fund; |
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—

calls on the Commission to incorporate requirements aimed at preventing any net loss of biodiversity and ecosystem services into EU legislation; asks the Commission to maintain and extend the eco-conditionality and biodiversity proofing of EU funding; advocates in addition allocating a certain percentage of all EU support for the deployment of grey infrastructure to a biodiversity fund;

| — | welcomes the announcement that the Commission, together with the EIB, will endeavour to establish by 2014 a special EU financing facility for promoters of GI projects; would like to see local and regional authorities involved in its design; |
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—

welcomes the announcement that the Commission, together with the EIB, will endeavour to establish by 2014 a special EU financing facility for promoters of GI projects; would like to see local and regional authorities involved in its design;

| — | welcomes the TEN-G initiative and calls for it to have the same pan-European relevance as transport, energy or ICT networks; and asks the Commission to explore the scope for EU legislation in this area. |
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—

welcomes the TEN-G initiative and calls for it to have the same pan-European relevance as transport, energy or ICT networks; and asks the Commission to explore the scope for EU legislation in this area.

| Rapporteur | Ms Annabelle JAEGER, Member of Provence-Alpes-Côte d'Azur Regional Council (FR/PES) |
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| Reference document | Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Green Infrastructure (GI) — Enhancing Europe’s Natural Capital
  COM(2013) 249 final |

Rapporteur

Ms Annabelle JAEGER, Member of Provence-Alpes-Côte d'Azur Regional Council (FR/PES)

Reference document

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Green Infrastructure (GI) — Enhancing Europe’s Natural Capital

COM(2013) 249 final

I.   POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS

General comments

| 1. | warmly welcomes the Communication from the Commission entitled ‘Green Infrastructure (GI) — enhancing Europe’s Natural Capital’, which paves the way for the EU strategy in this area. It considers the proposals put forward to be extremely important for achieving Europe's objectives for 2020 in terms of resource efficiency, social and regional cohesion, smart and sustainable growth, attractiveness, improvement in biodiversity and landscape quality, protection against natural risks, promotion of a sustainable urban model, local job preservation and creation in small and medium enterprises, public health improvements and the fight against inequality, in support of the targets of the EU Biodiversity Strategy to 2020, and in compliance with and in support of the Habitats and Birds directives and the connectivity of Natura 2000 sites (1); |
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1.

warmly welcomes the Communication from the Commission entitled ‘Green Infrastructure (GI) — enhancing Europe’s Natural Capital’, which paves the way for the EU strategy in this area. It considers the proposals put forward to be extremely important for achieving Europe's objectives for 2020 in terms of resource efficiency, social and regional cohesion, smart and sustainable growth, attractiveness, improvement in biodiversity and landscape quality, protection against natural risks, promotion of a sustainable urban model, local job preservation and creation in small and medium enterprises, public health improvements and the fight against inequality, in support of the targets of the EU Biodiversity Strategy to 2020, and in compliance with and in support of the Habitats and Birds directives and the connectivity of Natura 2000 sites (1);

| 2. | expects future GI implementation in the EU to contribute to achieving target 2 of the EU 2020 Biodiversity Strategy, which aims at restoring at least 15 % of degraded ecosystems by 2020, and to halting the loss of biodiversity and restoring ecosystems throughout Europe, and not only in Natura 2000 sites; |
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2.

expects future GI implementation in the EU to contribute to achieving target 2 of the EU 2020 Biodiversity Strategy, which aims at restoring at least 15 % of degraded ecosystems by 2020, and to halting the loss of biodiversity and restoring ecosystems throughout Europe, and not only in Natura 2000 sites;

| 3. | moreover believes that the various international, European and national strategies and programmes implemented thus far have not yet produced results which are a match for the challenges facing biodiversity; that there is consensus on the need to review societal models of production and consumption in order to respond to the challenges of biodiversity loss, of which they are the main causes, due to destruction and fragmentation of natural habitats and the numerous forms of pollution. Unless this happens, the renewed commitments under the Convention on Biological Diversity and the EU 2020 Biodiversity Strategy will achieve nothing; |
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3.

moreover believes that the various international, European and national strategies and programmes implemented thus far have not yet produced results which are a match for the challenges facing biodiversity; that there is consensus on the need to review societal models of production and consumption in order to respond to the challenges of biodiversity loss, of which they are the main causes, due to destruction and fragmentation of natural habitats and the numerous forms of pollution. Unless this happens, the renewed commitments under the Convention on Biological Diversity and the EU 2020 Biodiversity Strategy will achieve nothing;

| 4. | therefore emphasises the Commission's vital role in promoting a cross-cutting GI-based strategy, which is an unprecedented opportunity for all European national, local and regional governments, businesses, researchers and associations and the public at large to work together to reconcile the economy, society and the biosphere; |
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4.

therefore emphasises the Commission's vital role in promoting a cross-cutting GI-based strategy, which is an unprecedented opportunity for all European national, local and regional governments, businesses, researchers and associations and the public at large to work together to reconcile the economy, society and the biosphere;

| 5. | is pleased to note the proposed definition, which integrates the connectivity of species and habitats with the quality of ecosystems, at all scales, including urban settings, the remarkable biodiversity of both protected and more ordinary areas, natural solutions and man-made nature-based solutions, but believes that this definition should be explained in concrete terms in the implementation guides to be published, including the concepts of permeability and the ability to host living organisms. It is important to highlight in this respect the creation and use of ecological and operational linkages across all scales; |
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5.

is pleased to note the proposed definition, which integrates the connectivity of species and habitats with the quality of ecosystems, at all scales, including urban settings, the remarkable biodiversity of both protected and more ordinary areas, natural solutions and man-made nature-based solutions, but believes that this definition should be explained in concrete terms in the implementation guides to be published, including the concepts of permeability and the ability to host living organisms. It is important to highlight in this respect the creation and use of ecological and operational linkages across all scales;

| 6. | welcomes the fact that the true value of the numerous economic, environmental, risk protection and social benefits of well-functioning ecosystems is recognised, and emphasises that this utilitarian aspect of producing goods or services for human consumption should always be used to support the ethical aspects of nature and biodiversity conservation; |
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6.

welcomes the fact that the true value of the numerous economic, environmental, risk protection and social benefits of well-functioning ecosystems is recognised, and emphasises that this utilitarian aspect of producing goods or services for human consumption should always be used to support the ethical aspects of nature and biodiversity conservation;

| 7. | points out that the concept of GI, by its very nature, cuts across administrative and territorial borders and that its development, protection or endangerment depends in the first instance on Member States' and regional and local authorities' policies on spatial planning and territorial development and on the conservation of natural resources; |
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7.

points out that the concept of GI, by its very nature, cuts across administrative and territorial borders and that its development, protection or endangerment depends in the first instance on Member States' and regional and local authorities' policies on spatial planning and territorial development and on the conservation of natural resources;

| 8. | welcomes and supports this comprehensive approach, which firmly ties GI to climate change mitigation and adaptation. It stresses the primary role of local and regional authorities in defining and implementing this strategy; |
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8.

welcomes and supports this comprehensive approach, which firmly ties GI to climate change mitigation and adaptation. It stresses the primary role of local and regional authorities in defining and implementing this strategy;

| 9. | argues that it is far less expensive to preserve, develop and maintain GI in the medium to long term than grey infrastructure in view of its overall cost, including the external costs currently being borne by society. Solutions based on or inspired by nature, applied in synergy with biodiversity (environmental engineering), are less energy-intensive and require less maintenance and upkeep than conventional solutions and are therefore more efficient and sustainable; |
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9.

argues that it is far less expensive to preserve, develop and maintain GI in the medium to long term than grey infrastructure in view of its overall cost, including the external costs currently being borne by society. Solutions based on or inspired by nature, applied in synergy with biodiversity (environmental engineering), are less energy-intensive and require less maintenance and upkeep than conventional solutions and are therefore more efficient and sustainable;

| 10. | stresses that the prevention of ecosystem degradation and the restoration of degraded ecosystem functionalities must be absolute priorities because measures to manage the consequences of ecological imbalances caused by human activity are always more costly, lengthy and, above all, uncertain in their outcomes; |
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10.

stresses that the prevention of ecosystem degradation and the restoration of degraded ecosystem functionalities must be absolute priorities because measures to manage the consequences of ecological imbalances caused by human activity are always more costly, lengthy and, above all, uncertain in their outcomes;

| 11. | considers that although the economic evaluation of ecosystem services could help decide between conflicting objectives in the context of certain cost-benefit studies, it has its methodological difficulties — to the point that it could even be unsuitable in many situations — and also has obvious ethical implications. It should also be emphasised that there is another way to evaluate the cost of biodiversity loss, i.e. calculating the cost of maintaining the environmental potential to restore this loss by calculating the cost of the investments required to maintain or improve biodiversity in order to ensure the continued flow of environmental services. This is the method that the Committee of the Regions would prefer to see adopted; |
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11.

considers that although the economic evaluation of ecosystem services could help decide between conflicting objectives in the context of certain cost-benefit studies, it has its methodological difficulties — to the point that it could even be unsuitable in many situations — and also has obvious ethical implications. It should also be emphasised that there is another way to evaluate the cost of biodiversity loss, i.e. calculating the cost of maintaining the environmental potential to restore this loss by calculating the cost of the investments required to maintain or improve biodiversity in order to ensure the continued flow of environmental services. This is the method that the Committee of the Regions would prefer to see adopted;

| 12. | urges local and regional authorities to take steps in all the relevant sectoral policies, in particular through their spatial and urban planning responsibilities, to plan and organise green infrastructure; |
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12.

urges local and regional authorities to take steps in all the relevant sectoral policies, in particular through their spatial and urban planning responsibilities, to plan and organise green infrastructure;

| 13. | therefore calls on the EU and the Member States to support their efforts by providing them with the human, technical and financial resources to meet these challenges (2); |
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13.

therefore calls on the EU and the Member States to support their efforts by providing them with the human, technical and financial resources to meet these challenges (2);

Farming, forests, land and soil

| 14. | believes that action against the loss of soil functions, land-use intensification and land degradation must be the absolute priority for spatial and urban planning. Ensuring ‘no net loss’ of natural environments, forests and farmland is essential in the face of urban sprawl, and some local and regional authorities have already started to incorporate the concepts of GI and ‘no net loss’ into their urban and regional planning, in different forms; |
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14.

believes that action against the loss of soil functions, land-use intensification and land degradation must be the absolute priority for spatial and urban planning. Ensuring ‘no net loss’ of natural environments, forests and farmland is essential in the face of urban sprawl, and some local and regional authorities have already started to incorporate the concepts of GI and ‘no net loss’ into their urban and regional planning, in different forms;

| 15. | also reiterates its support for Member States to resume discussions to adopt a common European legal framework for protecting and restoring soil functionality, which is crucial to successfully addressing this key issue (3); |
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15.

also reiterates its support for Member States to resume discussions to adopt a common European legal framework for protecting and restoring soil functionality, which is crucial to successfully addressing this key issue (3);

| 16. | recalls that forestry contributes to GI, either actively, by restoring forest continuity or adopting environmental management practices, or passively, by preserving woodland boundaries. To be able to establish GI, particularly in regions where forests are under fragmented and private ownership, properly-functioning associations of owners need to established and regional and local authorities need to be given the tools to mobilise these private stakeholders, i.e. land ownership measures, training, technical support and assistance for mutualisation, including financial support; |
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16.

recalls that forestry contributes to GI, either actively, by restoring forest continuity or adopting environmental management practices, or passively, by preserving woodland boundaries. To be able to establish GI, particularly in regions where forests are under fragmented and private ownership, properly-functioning associations of owners need to established and regional and local authorities need to be given the tools to mobilise these private stakeholders, i.e. land ownership measures, training, technical support and assistance for mutualisation, including financial support;

| 17. | notes the decisions taken by the EU for the Common Agricultural Policy for 2014-2020, and wonders how GI is to be efficiently implemented in these areas by 2020. The Committee of the Regions therefore emphasises the importance of the activities of the relevant authorities: they must make GI one of the guidelines for their use of resources in relation to maintaining and restoring biodiversity through the greening of direct payments in ecological focus areas and the use of the EARDF including the coherent localisation of and budget allocation for agri-environmental measures. At the same time they must free up resources to restore the biodiversity of agricultural environments, not least by supporting organic farming and agroforestry; |
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17.

notes the decisions taken by the EU for the Common Agricultural Policy for 2014-2020, and wonders how GI is to be efficiently implemented in these areas by 2020. The Committee of the Regions therefore emphasises the importance of the activities of the relevant authorities: they must make GI one of the guidelines for their use of resources in relation to maintaining and restoring biodiversity through the greening of direct payments in ecological focus areas and the use of the EARDF including the coherent localisation of and budget allocation for agri-environmental measures. At the same time they must free up resources to restore the biodiversity of agricultural environments, not least by supporting organic farming and agroforestry;

| 18. | in view of promoting sustainable agriculture and forestry within GI, believes that developing bio-sourced building materials is crucial for solidarity between rural and urban areas since the use of traditional building materials in urban areas and for grey infrastructure exerts considerable pressure on rural and also maritime environments. It is essential to encourage the use of wood and other materials originating from co-products of agriculture or complementary to usual crops (straw, hemp, flax, wool etc.) to the benefit of local stakeholders. The CoR believes that local growth dynamics need to be promoted, especially through aid for structuring sectors, for investing in industrial processing tools, and for structuring the market through exemplary public procurement practices or encouraging communities which use them. It is also necessary to develop research programmes on the technical properties of these materials and the proper conditions for producing them in terms of preserving ecosystems. Finally, appropriate labelling must be used to inform users of the agricultural provenance and conditions of these materials; |
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18.

in view of promoting sustainable agriculture and forestry within GI, believes that developing bio-sourced building materials is crucial for solidarity between rural and urban areas since the use of traditional building materials in urban areas and for grey infrastructure exerts considerable pressure on rural and also maritime environments. It is essential to encourage the use of wood and other materials originating from co-products of agriculture or complementary to usual crops (straw, hemp, flax, wool etc.) to the benefit of local stakeholders. The CoR believes that local growth dynamics need to be promoted, especially through aid for structuring sectors, for investing in industrial processing tools, and for structuring the market through exemplary public procurement practices or encouraging communities which use them. It is also necessary to develop research programmes on the technical properties of these materials and the proper conditions for producing them in terms of preserving ecosystems. Finally, appropriate labelling must be used to inform users of the agricultural provenance and conditions of these materials;

Shared governance

| 19. | emphasises that the key to successful GI deployment lies in the cooperation between all governance levels and in the effective implementation of multilevel governance (MLG) principles as well as in participation of all parties and stakeholders, including local residents, in its development and implementation; |
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19.

emphasises that the key to successful GI deployment lies in the cooperation between all governance levels and in the effective implementation of multilevel governance (MLG) principles as well as in participation of all parties and stakeholders, including local residents, in its development and implementation;

| 20. | advocates participatory approaches, which will generate necessary and complementary bottom-up initiatives, from those who directly participate in spatial planning and land use management, and in particular local communities (4); |
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20.

advocates participatory approaches, which will generate necessary and complementary bottom-up initiatives, from those who directly participate in spatial planning and land use management, and in particular local communities (4);

A new type of citizenship

| 21. | notes the considerable social demand for natural areas in urban environments, which is just as much a response to the need for green areas in their various forms (leisure and recreation areas, areas dedicated to gardening and agriculture, landscaping and embellishment features, wilderness areas etc.) as to the sense of well-being they bring, as well as to public health issues, combating economic and social inequalities; these needs must be met for the sake not only of young people, but also of older or disadvantaged people; |
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21.

notes the considerable social demand for natural areas in urban environments, which is just as much a response to the need for green areas in their various forms (leisure and recreation areas, areas dedicated to gardening and agriculture, landscaping and embellishment features, wilderness areas etc.) as to the sense of well-being they bring, as well as to public health issues, combating economic and social inequalities; these needs must be met for the sake not only of young people, but also of older or disadvantaged people;

| 22. | notes with interest and encourages GI-related citizens' initiatives, especially in urban and peri-urban areas (participatory biodiversity inventories, involvement in the establishing new urban biodiversity areas, the rehabilitation of fallow or abandoned land, shared gardens, etc.). Connecting all these areas by means of access routes for non-motorised transport is crucial to improving people's quality of life; |
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22.

notes with interest and encourages GI-related citizens' initiatives, especially in urban and peri-urban areas (participatory biodiversity inventories, involvement in the establishing new urban biodiversity areas, the rehabilitation of fallow or abandoned land, shared gardens, etc.). Connecting all these areas by means of access routes for non-motorised transport is crucial to improving people's quality of life;

Potential for innovation and new jobs

| 23. | notes that GI generates research and innovation, which are development opportunities for planners, e.g. in relation to plant-based walls and roofing or ecological restoration; nevertheless points out that the real benefits of GI, in terms of climate adaptation for instance, depend on the quality of implementation. Only functional, climate-appropriate and biodiversity-friendly solutions should be encouraged; |
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23.

notes that GI generates research and innovation, which are development opportunities for planners, e.g. in relation to plant-based walls and roofing or ecological restoration; nevertheless points out that the real benefits of GI, in terms of climate adaptation for instance, depend on the quality of implementation. Only functional, climate-appropriate and biodiversity-friendly solutions should be encouraged;

| 24. | supports the Commission's proposal to reduce the risks associated with innovation through financial instruments (such as risk-sharing practices) and backs its plans to support projects involving private and public funds; |
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24.

supports the Commission's proposal to reduce the risks associated with innovation through financial instruments (such as risk-sharing practices) and backs its plans to support projects involving private and public funds;

| 25. | is pleased to note the emergence of new GI-related jobs in the area of environmental engineering to restore, maintain and rehabilitate degraded ecosystems, and stresses the importance of indirect or secondary jobs (in the production of plant-based materials, farming sectors, etc.). Regions and local authorities with responsibility for economic development should facilitate and support this potential for job creation; |
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25.

is pleased to note the emergence of new GI-related jobs in the area of environmental engineering to restore, maintain and rehabilitate degraded ecosystems, and stresses the importance of indirect or secondary jobs (in the production of plant-based materials, farming sectors, etc.). Regions and local authorities with responsibility for economic development should facilitate and support this potential for job creation;

| 26. | believes that GI is based on ecosystems and the associated human cultures, which are both extremely diverse for biogeographical and historical reasons. This is why it is a driver for developing local economic sectors and jobs that cannot be relocated. In this context, the CoR would point out that the EU legislation on public procurement is under review and that the Committee on the Internal Market of the European Parliament (EP), clarified on 11 January 2013 that the contracting authority should base the award of public contracts on the criterion of the most economically advantageous tender. The CoR supports the EP's view that that criterion should include, in addition to the price or costs, qualitative, environmental and social considerations, such as social, environmental and innovative characteristics, including cost-effectiveness of short-distance procurement where relevant; |
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26.

believes that GI is based on ecosystems and the associated human cultures, which are both extremely diverse for biogeographical and historical reasons. This is why it is a driver for developing local economic sectors and jobs that cannot be relocated. In this context, the CoR would point out that the EU legislation on public procurement is under review and that the Committee on the Internal Market of the European Parliament (EP), clarified on 11 January 2013 that the contracting authority should base the award of public contracts on the criterion of the most economically advantageous tender. The CoR supports the EP's view that that criterion should include, in addition to the price or costs, qualitative, environmental and social considerations, such as social, environmental and innovative characteristics, including cost-effectiveness of short-distance procurement where relevant;

Levers for action

| 27. | calls on the Commission to draw up, as soon as possible, practical, precise and concrete implementation guides on integrating GI into the range of EU polices and suggests that regions and local authorities already promoting GI should be involved in designing them in order to co-develop, with the Commission, local versions of these guides, which would be more accurate with regard to local biotopes, knowledge and know-how; acknowledges in this regard that first guidance is already available with the ‘Guide to multi-benefit cohesion policy investments in nature and green infrastructure’ (5); |
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27.

calls on the Commission to draw up, as soon as possible, practical, precise and concrete implementation guides on integrating GI into the range of EU polices and suggests that regions and local authorities already promoting GI should be involved in designing them in order to co-develop, with the Commission, local versions of these guides, which would be more accurate with regard to local biotopes, knowledge and know-how; acknowledges in this regard that first guidance is already available with the ‘Guide to multi-benefit cohesion policy investments in nature and green infrastructure’ (5);

| 28. | calls for additional fact-sheets on urban GI, which would also help to mobilise projects using new measures under the Structural Funds, which set aside 5 % of funds for investment in sustainable urban development; |
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28.

calls for additional fact-sheets on urban GI, which would also help to mobilise projects using new measures under the Structural Funds, which set aside 5 % of funds for investment in sustainable urban development;

| 29. | calls for GI to be included in the Reference Framework for Sustainable European Cities (6) and in the future Urban Development Network envisioned as part of cohesion policy for 2014-2020; |
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29.

calls for GI to be included in the Reference Framework for Sustainable European Cities (6) and in the future Urban Development Network envisioned as part of cohesion policy for 2014-2020;

| 30. | calls for the future review of Directive 2001/42/EC on the assessment of the effects of certain plans and programmes on the environment to include a reference to GI as an additional criterion for determining the likely significance of effects; |
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30.

calls for the future review of Directive 2001/42/EC on the assessment of the effects of certain plans and programmes on the environment to include a reference to GI as an additional criterion for determining the likely significance of effects;

| 31. | reiterates the need, when a grey infrastructure project is deemed essential following an upstream study of all the GI-based solutions, for it to be designed in such a way as to minimise its impact, for this residual impact then to be reduced and finally, for validated equivalent ecological and land-use offsets to be imposed (7). The Committee of the Regions calls on the Commission to incorporate these requirements into EU legislation, taking into account the work carried out by the European Commission on action 7b of the EU Biodiversity Strategy 2020 aimed at preventing any net loss of biodiversity and ecosystem services; |
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31.

reiterates the need, when a grey infrastructure project is deemed essential following an upstream study of all the GI-based solutions, for it to be designed in such a way as to minimise its impact, for this residual impact then to be reduced and finally, for validated equivalent ecological and land-use offsets to be imposed (7). The Committee of the Regions calls on the Commission to incorporate these requirements into EU legislation, taking into account the work carried out by the European Commission on action 7b of the EU Biodiversity Strategy 2020 aimed at preventing any net loss of biodiversity and ecosystem services;

Monitoring and evaluation

| 32. | welcomes plans for a progress review on GI in 2017 and points out that the regions and local authorities are ready to contribute to this through their local observatories for biodiversity, economic activity, health, social inequalities, etc. in order to pass on the relevant data to the EU level; |
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32.

welcomes plans for a progress review on GI in 2017 and points out that the regions and local authorities are ready to contribute to this through their local observatories for biodiversity, economic activity, health, social inequalities, etc. in order to pass on the relevant data to the EU level;

| 33. | wonders to what extent GI will be efficient, and stresses the need to support the development of a user-friendly and straightforward rapid tool to evaluate the functional health of ecosystems, not only to assess efficiency, but also to allow for comparison with grey infrastructure; |
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33.

wonders to what extent GI will be efficient, and stresses the need to support the development of a user-friendly and straightforward rapid tool to evaluate the functional health of ecosystems, not only to assess efficiency, but also to allow for comparison with grey infrastructure;

| 34. | considers that it should be made possible to carry out a full assessment of grey infrastructure interactions with nature, and supports the Commission's work on the Mapping and Assessment of Ecosystems and their Services (MAES) in Europe; also emphasises the need to support the development of methodologies and measurement and calculation tools that will make it possible to draw up a transparent assessment of economic activities and products as a whole and their interactions with nature and ecosystem services, based on lifecycle analysis; |
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34.

considers that it should be made possible to carry out a full assessment of grey infrastructure interactions with nature, and supports the Commission's work on the Mapping and Assessment of Ecosystems and their Services (MAES) in Europe; also emphasises the need to support the development of methodologies and measurement and calculation tools that will make it possible to draw up a transparent assessment of economic activities and products as a whole and their interactions with nature and ecosystem services, based on lifecycle analysis;

Communication, awareness-raising and education

| 35. | recommends that the EU carry out an ambitious communication campaign in partnership with all levels of governance and suitable for use by local and regional authorities in particular (8) as well as other local stakeholders (associations, businesses, etc.). This campaign could concentrate on the three benefits of GI: environmental, economic and social, and on current good practice in Member States; |
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35.

recommends that the EU carry out an ambitious communication campaign in partnership with all levels of governance and suitable for use by local and regional authorities in particular (8) as well as other local stakeholders (associations, businesses, etc.). This campaign could concentrate on the three benefits of GI: environmental, economic and social, and on current good practice in Member States;

| 36. | points out that the promotion of good practices needs to be stepped up. The Commission, in conjunction with other institutions, associations, and local and regional authorities which already have this information, must continue to identify, disseminate and promote success stories through a discussion platform, as well as through regular meetings and training sessions, which the regions and local authorities are prepared to hold with its support since they play a key role in raising awareness about GI; |
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36.

points out that the promotion of good practices needs to be stepped up. The Commission, in conjunction with other institutions, associations, and local and regional authorities which already have this information, must continue to identify, disseminate and promote success stories through a discussion platform, as well as through regular meetings and training sessions, which the regions and local authorities are prepared to hold with its support since they play a key role in raising awareness about GI;

| 37. | urges the Commission to include aspects of GI in existing or future EU Ecolabel schemes, whether they refer to spaces (natural parks in rural, peri-urban or urban areas) or products (materials, construction, etc.); |
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37.

urges the Commission to include aspects of GI in existing or future EU Ecolabel schemes, whether they refer to spaces (natural parks in rural, peri-urban or urban areas) or products (materials, construction, etc.);

Funding

| 38. | while recognising that cross-financing helps to steer sectoral policies towards biodiversity issues, the Committee of the Regions underlines the difficulties of mobilising these funds for a variety of reasons, ranging from designations that vary from one financial tool to another to complex financial engineering; therefore calls for precise user guides; |
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38.

while recognising that cross-financing helps to steer sectoral policies towards biodiversity issues, the Committee of the Regions underlines the difficulties of mobilising these funds for a variety of reasons, ranging from designations that vary from one financial tool to another to complex financial engineering; therefore calls for precise user guides;

| 39. | emphasises the urgency of establishing arrangements for including GI and its priority status in the partnership agreements and operational funding programmes as they are currently being designed for the cohesion and structural funds 2014-2020, thereby enabling the relevant authorities to fully meet their funding responsibilities in this area; encourages the competent regional or local authorities to take up the possibilities for financing site-adapted GI solutions proposed in the operational programmes and invest in the necessary cross-sector capacity building, co-financing and networking to ensure their successful implementation; |
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39.

emphasises the urgency of establishing arrangements for including GI and its priority status in the partnership agreements and operational funding programmes as they are currently being designed for the cohesion and structural funds 2014-2020, thereby enabling the relevant authorities to fully meet their funding responsibilities in this area; encourages the competent regional or local authorities to take up the possibilities for financing site-adapted GI solutions proposed in the operational programmes and invest in the necessary cross-sector capacity building, co-financing and networking to ensure their successful implementation;

| 40. | endorses the need for a specific financing facility for GI projects and wholeheartedly welcomes the announcement in the communication that the Commission, together with the EIB, will endeavour to establish by 2014 a special EU financing facility for promoters of green infrastructure projects. The CoR would like to see local and regional authorities involved in its design; |
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40.

endorses the need for a specific financing facility for GI projects and wholeheartedly welcomes the announcement in the communication that the Commission, together with the EIB, will endeavour to establish by 2014 a special EU financing facility for promoters of green infrastructure projects. The CoR would like to see local and regional authorities involved in its design;

| 41. | advocates allocating a certain percentage of all EU support for the deployment of grey infrastructure to a biodiversity fund, in addition to this financing facility; this fund would be used to deploy GI in the Member States concerned by this grey infrastructure, applying the rationale of recapitalisation; |
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41.

advocates allocating a certain percentage of all EU support for the deployment of grey infrastructure to a biodiversity fund, in addition to this financing facility; this fund would be used to deploy GI in the Member States concerned by this grey infrastructure, applying the rationale of recapitalisation;

| 42. | calls on the Commission, Member States and local authorities to take effective action at all levels of financial support to stop subsidies and tax relief that harm biodiversity; |
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42.

calls on the Commission, Member States and local authorities to take effective action at all levels of financial support to stop subsidies and tax relief that harm biodiversity;

| 43. | asks the Commission to maintain and extend the eco-conditionality (9) and biodiversity proofing (10) of EU funding to ensure that the impact on GI and biodiversity is taken into account in all projects supported by EU funding and that the level of EU funding support is adjusted accordingly; |
| --- | --- |

43.

asks the Commission to maintain and extend the eco-conditionality (9) and biodiversity proofing (10) of EU funding to ensure that the impact on GI and biodiversity is taken into account in all projects supported by EU funding and that the level of EU funding support is adjusted accordingly;

| 44. | calls on the Commission in its mid-term review of the Structural Funds 2014-2020 and the Connecting Europe Facility to identify and highlight further actions to be taken in the area of GI; |
| --- | --- |

44.

calls on the Commission in its mid-term review of the Structural Funds 2014-2020 and the Connecting Europe Facility to identify and highlight further actions to be taken in the area of GI;

The TEN-G initiative

| 45. | greatly welcomes the TEN-G initiative and calls for all preliminary studies to include the local and regional dimensions of pan-European GI, in order to ensure consistency, effective outcomes in terms of restoring ecosystem functionalities and hence conserving biodiversity and its resilience to climate change, and the highest levels of citizen and stakeholder uptake; |
| --- | --- |

45.

greatly welcomes the TEN-G initiative and calls for all preliminary studies to include the local and regional dimensions of pan-European GI, in order to ensure consistency, effective outcomes in terms of restoring ecosystem functionalities and hence conserving biodiversity and its resilience to climate change, and the highest levels of citizen and stakeholder uptake;

| 46. | calls for TEN-G to be recognised as having the same pan-European relevance as transport, energy or ICT networks, and asks the Commission to explore the scope for EU legislation in this area; |
| --- | --- |

46.

calls for TEN-G to be recognised as having the same pan-European relevance as transport, energy or ICT networks, and asks the Commission to explore the scope for EU legislation in this area;

Cross-border and pan-European challenges

| 47. | encourages regions and local authorities to work together in areas of cross-border ecological connectivity in order to ensure consistent GI, and asks the Commission to incorporate this cross-border cooperation into a comprehensive EU-level system; |
| --- | --- |

47.

encourages regions and local authorities to work together in areas of cross-border ecological connectivity in order to ensure consistent GI, and asks the Commission to incorporate this cross-border cooperation into a comprehensive EU-level system;

| 48. | calls for the EU's GI initiative to be extended beyond European borders by stepping up EU neighbourhood instruments for investments in GI in rural and urban areas. Existing initiatives such as the Emerald Network, the Man and Biosphere (MAB) Programme and the Pan-European Ecological Network could contribute in this respect; |
| --- | --- |

48.

calls for the EU's GI initiative to be extended beyond European borders by stepping up EU neighbourhood instruments for investments in GI in rural and urban areas. Existing initiatives such as the Emerald Network, the Man and Biosphere (MAB) Programme and the Pan-European Ecological Network could contribute in this respect;

Subsidiarity

| 49. | considers the Commission's proposals for incorporating GI into other EU policies and the support it intends to provide for the other levels of governance to develop their own policies in this area to be in line with the subsidiarity and proportionality principles. |
| --- | --- |

49.

considers the Commission's proposals for incorporating GI into other EU policies and the support it intends to provide for the other levels of governance to develop their own policies in this area to be in line with the subsidiarity and proportionality principles.

Brussels, 8 October 2013.

The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO

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(1)  CdR 22/2009 fin, CdR 112/2010 fin.

1

(2)  CdR 22/2009 fin, CdR 112/2010 fin.

2

(3)  CdR 112/2010 fin.

3

(4)  CdR 112/2010 fin.

4

(5)  http://ec.europa.eu/regional_policy/sources/docgener/studies/pdf/guide_multi_benefit_nature.pdf

5

(6)  Reference Framework for Sustainable European Cities (RFSC), a joint initiative of the EU Member States, the European Commission and European organisations of local governments. See http://www.rfsc-community.eu/

6

(7)  in order to achieve the goal of causing no net loss of biodiversity.

7

(8)  CdR 112/2010 fin.

8

(9)  CdR 22/2009 fin, CdR 218/2009 fin.

9

(10)  IEEP, December 2012: Background Study towards biodiversity proofing of the EU budget

10

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| 5.12.2013 | EN | Official Journal of the European Union | C 356/49 |
| --- | --- | --- | --- |

5.12.2013

EN

Official Journal of the European Union

C 356/49

---

Opinion of the Committee of the Regions EU space industrial policy

2013/C 356/09

THE COMMITTEE OF THE REGIONS

| — | points to relevant aspects to be regulated in the context of the nascent EU space policy: industrial standards, issues related to technical operations and commercial exploitation of satellite communication infrastructure; |
| --- | --- |

—

points to relevant aspects to be regulated in the context of the nascent EU space policy: industrial standards, issues related to technical operations and commercial exploitation of satellite communication infrastructure;

| — | agrees that demand-oriented public policy making for the EU's space sector is intended to empower users, but cannot be reduced to consumer subsidies; |
| --- | --- |

—

agrees that demand-oriented public policy making for the EU's space sector is intended to empower users, but cannot be reduced to consumer subsidies;

| — | urges the European Commission to establish the criteria of public usefulness in the service of the competences and needs of public authorities that will be used in evaluating user demand; |
| --- | --- |

—

urges the European Commission to establish the criteria of public usefulness in the service of the competences and needs of public authorities that will be used in evaluating user demand;

| — | points out that a close relationship between the local/regional level, which is working with industries to detect and support their first steps, and the national/community levels, should be a vital aspect of the EU industrial policy; |
| --- | --- |

—

points out that a close relationship between the local/regional level, which is working with industries to detect and support their first steps, and the national/community levels, should be a vital aspect of the EU industrial policy;

| — | wishes to draw attention to the evidence derived from local and regional best practices that, in the overwhelming majority of cases, Copernicus/GMES downstream services cater to the needs of public policy and have demonstrated their usefulness for public goals; |
| --- | --- |

—

wishes to draw attention to the evidence derived from local and regional best practices that, in the overwhelming majority of cases, Copernicus/GMES downstream services cater to the needs of public policy and have demonstrated their usefulness for public goals;

| — | suggests that services and applications developed on the basis of space technologies could be co-financed from the Structural Funds, provided that there is enough political will and awareness on the part of those managing the funds. A mechanism of this kind has already been employed in the 2007-2013 Financial Framework, where unused cohesion funds/ERDF funding was reallocated to a new priority: satellite based broadband internet for remote regions; |
| --- | --- |

—

suggests that services and applications developed on the basis of space technologies could be co-financed from the Structural Funds, provided that there is enough political will and awareness on the part of those managing the funds. A mechanism of this kind has already been employed in the 2007-2013 Financial Framework, where unused cohesion funds/ERDF funding was reallocated to a new priority: satellite based broadband internet for remote regions;

| — | expresses the opinion that the operational phase of Copernicus is crucial for the economic breakthrough of new technology developments, but that financial support will be required in order to overcome the start-up costs connected with the uptake of new technology by a variety of users. |
| --- | --- |

—

expresses the opinion that the operational phase of Copernicus is crucial for the economic breakthrough of new technology developments, but that financial support will be required in order to overcome the start-up costs connected with the uptake of new technology by a variety of users.

| Rapporteur | Adam STRUZIK (PL/EPP), Marshal of the Mazovia Region |
| --- | --- |
| Reference document | Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — EU space industrial policy: releasing the potential for economic growth in the space sector
  COM(2013) 108 final |

Rapporteur

Adam STRUZIK (PL/EPP), Marshal of the Mazovia Region

Reference document

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — EU space industrial policy: releasing the potential for economic growth in the space sector

COM(2013) 108 final

I.   POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS

| 1. | welcomes the Commission's communication, which clearly states the importance of EU industrial space policy; |
| --- | --- |

1.

welcomes the Commission's communication, which clearly states the importance of EU industrial space policy;

Preliminary remarks

| 2. | stresses that the space sector is a key element of the Europe 2020 Strategy and its Flagship Initiatives, in particular the Innovation Union and Industrial Policy. Space technology is especially important to the knowledge-based economy, influencing future economic competitiveness and providing the tools for resolving other pressing terrestrial problems. A space spin-off can be defined as something that has been learned or changed during space activities, which is then used or transferred to other contexts creating further economic value; |
| --- | --- |

2.

stresses that the space sector is a key element of the Europe 2020 Strategy and its Flagship Initiatives, in particular the Innovation Union and Industrial Policy. Space technology is especially important to the knowledge-based economy, influencing future economic competitiveness and providing the tools for resolving other pressing terrestrial problems. A space spin-off can be defined as something that has been learned or changed during space activities, which is then used or transferred to other contexts creating further economic value;

| 3. | notes that according to the ESA's assessment on the downstream value-adding sectors of space based applications, the European market is smaller and less specialised in the private market in comparison with the world market. Also, contrary to other space nations, the defence industry does not set initial standards and activities. Worldwide, most companies operate on several segments and along the value chain. In Europe, hardly any actors can be found controlling the entire value chain. Overall, specialisation in Europe (which has a focus on specific satellite navigation applications) is slightly less than worldwide; |
| --- | --- |

3.

notes that according to the ESA's assessment on the downstream value-adding sectors of space based applications, the European market is smaller and less specialised in the private market in comparison with the world market. Also, contrary to other space nations, the defence industry does not set initial standards and activities. Worldwide, most companies operate on several segments and along the value chain. In Europe, hardly any actors can be found controlling the entire value chain. Overall, specialisation in Europe (which has a focus on specific satellite navigation applications) is slightly less than worldwide;

| 4. | is acutely aware of the main policy issues for the EU's space sector, which include market organisation, administrative simplification, procurement principles, access to data, the customership of public institutions and the regulatory framework; |
| --- | --- |

4.

is acutely aware of the main policy issues for the EU's space sector, which include market organisation, administrative simplification, procurement principles, access to data, the customership of public institutions and the regulatory framework;

| 5. | acknowledges that, in general, the EU space industry has a major impact on Europe’s scientific and technological standing. This includes encouragement for the European science and technology base and the wider effects of space technology on the broader economy; |
| --- | --- |

5.

acknowledges that, in general, the EU space industry has a major impact on Europe’s scientific and technological standing. This includes encouragement for the European science and technology base and the wider effects of space technology on the broader economy;

| 6. | agrees with the Council Conclusions of 30 May 2013 on ‘EU Space Industrial Policy — Releasing the potential for economic growth in the space sector’ that, in the interests of a balanced industrial base, the participation of SMEs in the supply chain is an essential component of the competitiveness of the European space industry, and joins with the Council in urging the Commission to further assess the need for new innovative financial instruments; |
| --- | --- |

6.

agrees with the Council Conclusions of 30 May 2013 on ‘EU Space Industrial Policy — Releasing the potential for economic growth in the space sector’ that, in the interests of a balanced industrial base, the participation of SMEs in the supply chain is an essential component of the competitiveness of the European space industry, and joins with the Council in urging the Commission to further assess the need for new innovative financial instruments;

| 7. | considers that, from the point of view of local and regional authorities, it is particularly important to promote the use of space-based applications in EU policies and that the EU should therefore design appropriate support measures to stimulate the development and deployment of space-based applications across public and private users, in particular in local authorities and the SME sector, together with associated innovation support measures; |
| --- | --- |

7.

considers that, from the point of view of local and regional authorities, it is particularly important to promote the use of space-based applications in EU policies and that the EU should therefore design appropriate support measures to stimulate the development and deployment of space-based applications across public and private users, in particular in local authorities and the SME sector, together with associated innovation support measures;

A.   Objectives and actions of the industrial space policy

| 8. | shares the Commission's opinion that space is extremely important for the EU and its citizens and, like the Commission, sees the major challenges facing the EU space industry in light of the developments in emerging space powers (such as China and India). As diagnosed in the Communication, this situation is the result of insufficient financing rather than any lack of efficiency on the part of the European space sector; |
| --- | --- |

8.

shares the Commission's opinion that space is extremely important for the EU and its citizens and, like the Commission, sees the major challenges facing the EU space industry in light of the developments in emerging space powers (such as China and India). As diagnosed in the Communication, this situation is the result of insufficient financing rather than any lack of efficiency on the part of the European space sector;

| 9. | understands that, at a time when the EU and its Member States are facing financial difficulties, the focus of the EU industrial space policy should be on laying the foundations for a future boost of the sector on the global market and on removing obstacles that could hamper this process. Therefore, the Committee fully supports the objectives described in the Communication: establishing a regulatory framework, developing a competitive industrial base, stimulating cost-efficiency, developing markets for space applications and ensuring technological non-dependence and independent access to space; |
| --- | --- |

9.

understands that, at a time when the EU and its Member States are facing financial difficulties, the focus of the EU industrial space policy should be on laying the foundations for a future boost of the sector on the global market and on removing obstacles that could hamper this process. Therefore, the Committee fully supports the objectives described in the Communication: establishing a regulatory framework, developing a competitive industrial base, stimulating cost-efficiency, developing markets for space applications and ensuring technological non-dependence and independent access to space;

| 10. | supports the argument that efficient space governance in Europe requires an agreement between the main shareholders, i.e. the EC, the ESA and the Member States, whilst noting that, from the political point of view, a joint European defence policy decision would facilitate cooperation among national military sectors, from which the civil space sector would also benefit; |
| --- | --- |

10.

supports the argument that efficient space governance in Europe requires an agreement between the main shareholders, i.e. the EC, the ESA and the Member States, whilst noting that, from the political point of view, a joint European defence policy decision would facilitate cooperation among national military sectors, from which the civil space sector would also benefit;

| 11. | acknowledges the market achievements of the European space sector, especially in the area of SatCom, and supports the Commission in its efforts to keep this segment competitive on the global market. From this perspective, the Committee strongly supports the initiative of guaranteeing European operators access to radiofrequency channels. This issue is of importance for regions, as SatCom provides means for closing the broadband gap in low population areas; |
| --- | --- |

11.

acknowledges the market achievements of the European space sector, especially in the area of SatCom, and supports the Commission in its efforts to keep this segment competitive on the global market. From this perspective, the Committee strongly supports the initiative of guaranteeing European operators access to radiofrequency channels. This issue is of importance for regions, as SatCom provides means for closing the broadband gap in low population areas;

| 12. | recognises the importance of the technological non-dependence of the European space sector and agrees with the proposed solutions, such as cross-fertilisation with non-space sectors, launching relevant calls for projects under the Horizon 2020 Programme and investing in the training of a skilled workforce for the space industry; |
| --- | --- |

12.

recognises the importance of the technological non-dependence of the European space sector and agrees with the proposed solutions, such as cross-fertilisation with non-space sectors, launching relevant calls for projects under the Horizon 2020 Programme and investing in the training of a skilled workforce for the space industry;

| 13. | wonders, however, whether the funding available (e.g. under Horizon 2020) would be sufficient to make a significant step forward in developing technological non-dependence. Therefore, urges the Commission to present a detailed plan showing how this goal is to be achieved; |
| --- | --- |

13.

wonders, however, whether the funding available (e.g. under Horizon 2020) would be sufficient to make a significant step forward in developing technological non-dependence. Therefore, urges the Commission to present a detailed plan showing how this goal is to be achieved;

| 14. | suggests that, with regard to the skilled workforce, the initial priority should be to begin the search in the new EU Member States, which have all expressed their interest in and ambition to join the club of space nations and, in addition, demonstrate a high level of education in engineering and the physical sciences; |
| --- | --- |

14.

suggests that, with regard to the skilled workforce, the initial priority should be to begin the search in the new EU Member States, which have all expressed their interest in and ambition to join the club of space nations and, in addition, demonstrate a high level of education in engineering and the physical sciences;

| 15. | strongly supports market development for space applications and services and notes that local and regional authorities may play a fundamental role in this process; |
| --- | --- |

15.

strongly supports market development for space applications and services and notes that local and regional authorities may play a fundamental role in this process;

| 16. | in this context, wishes to recall that local and regional authorities are an important end user of space services. However, to fully exploit the potential of space applications, LRA users should be made more aware of their benefits. A more intensive dialogue between service provider and end-user is necessary; |
| --- | --- |

16.

in this context, wishes to recall that local and regional authorities are an important end user of space services. However, to fully exploit the potential of space applications, LRA users should be made more aware of their benefits. A more intensive dialogue between service provider and end-user is necessary;

| 17. | furthermore believes that, within their territories, LRAs bring together different economic actors and the players involved in the innovation triangle. LRAs are in charge of innovation and SME programmes that could be linked with space and thus contribute strategically to enhancing the space market; |
| --- | --- |

17.

furthermore believes that, within their territories, LRAs bring together different economic actors and the players involved in the innovation triangle. LRAs are in charge of innovation and SME programmes that could be linked with space and thus contribute strategically to enhancing the space market;

| 18. | also notes that, through their proximity to the public, LRAs have unique access to different societal groups within their territories and are thus ideally positioned to inform people about the benefits of space services; in light of this, networks of local and regional authorities, such as the NEREUS network (Network of European Regions Using Space Technologies), take on a particular meaning; |
| --- | --- |

18.

also notes that, through their proximity to the public, LRAs have unique access to different societal groups within their territories and are thus ideally positioned to inform people about the benefits of space services; in light of this, networks of local and regional authorities, such as the NEREUS network (Network of European Regions Using Space Technologies), take on a particular meaning;

B.   General local and regional concerns

| 19. | acknowledges, from the position of regions as one of the main users of satellite applications, in particular Copernicus/GMES services and products, that an EU space industrial policy should support technical innovation and remove the obstacles that hinder its development. The success of the EU space policy will be measured in terms of growth, cost-avoidance, cross-sectoral spillover and highly skilled, productive job opportunities; |
| --- | --- |

19.

acknowledges, from the position of regions as one of the main users of satellite applications, in particular Copernicus/GMES services and products, that an EU space industrial policy should support technical innovation and remove the obstacles that hinder its development. The success of the EU space policy will be measured in terms of growth, cost-avoidance, cross-sectoral spillover and highly skilled, productive job opportunities;

| 20. | shares the Commission’s opinion that encouraging demand-side innovation is the main challenge to be addressed by the EU space policy in order to bring economic benefits to EU regions and citizens from funds already invested for space in the Framework Programmes; |
| --- | --- |

20.

shares the Commission’s opinion that encouraging demand-side innovation is the main challenge to be addressed by the EU space policy in order to bring economic benefits to EU regions and citizens from funds already invested for space in the Framework Programmes;

| 21. | agrees that demand-oriented public policy making for the EU's space sector is intended to empower users, but cannot be reduced to consumer subsidies; |
| --- | --- |

21.

agrees that demand-oriented public policy making for the EU's space sector is intended to empower users, but cannot be reduced to consumer subsidies;

| 22. | urges the Commission to establish the criteria of public usefulness in the service of the competences and needs of public authorities that will be used in evaluating user demand; |
| --- | --- |

22.

urges the Commission to establish the criteria of public usefulness in the service of the competences and needs of public authorities that will be used in evaluating user demand;

| 23. | observes, from the regional perspective, that local and regional end users will only take up Copernicus services and products if they see a clear business case for employing them; |
| --- | --- |

23.

observes, from the regional perspective, that local and regional end users will only take up Copernicus services and products if they see a clear business case for employing them;

| 24. | recommends that the Commission should address the issue of the funding mechanisms for actual and potential users, which could be made available by the EU and its Member States when services become operational. In Europe, as elsewhere in the world, earth observation is a public infrastructure and pursuit of the public interest entails dependence on public funding for research and development as well as for the operational deployment of services; |
| --- | --- |

24.

recommends that the Commission should address the issue of the funding mechanisms for actual and potential users, which could be made available by the EU and its Member States when services become operational. In Europe, as elsewhere in the world, earth observation is a public infrastructure and pursuit of the public interest entails dependence on public funding for research and development as well as for the operational deployment of services;

| 25. | expresses the opinion that the operational phase of Copernicus is crucial for the economic breakthrough of new technology developments, but that financial support will be required in order to overcome the start-up costs connected with the uptake of new technology by a variety of users; |
| --- | --- |

25.

expresses the opinion that the operational phase of Copernicus is crucial for the economic breakthrough of new technology developments, but that financial support will be required in order to overcome the start-up costs connected with the uptake of new technology by a variety of users;

| 26. | expects that users such as local and regional authorities and SMEs will continue to require incentives and support from the EU and from Member States and notes that the ESA could also be involved in providing support for users; |
| --- | --- |

26.

expects that users such as local and regional authorities and SMEs will continue to require incentives and support from the EU and from Member States and notes that the ESA could also be involved in providing support for users;

| 27. | wishes to draw attention to the evidence derived from local and regional best practices that, in the overwhelming majority of cases, Copernicus/GMES downstream services cater to the needs of public policy and have demonstrated their usefulness for public goals; |
| --- | --- |

27.

wishes to draw attention to the evidence derived from local and regional best practices that, in the overwhelming majority of cases, Copernicus/GMES downstream services cater to the needs of public policy and have demonstrated their usefulness for public goals;

| 28. | suggests that services and applications developed on the basis of space technologies could be co-financed from the Structural Funds, provided that there is enough political will and awareness on the part of those managing the funds. A mechanism of this kind has already been employed in the 2007-2013 Financial Framework, where unused cohesion funds/ERDF funding was reallocated to a new priority: satellite based broadband internet for remote regions; |
| --- | --- |

28.

suggests that services and applications developed on the basis of space technologies could be co-financed from the Structural Funds, provided that there is enough political will and awareness on the part of those managing the funds. A mechanism of this kind has already been employed in the 2007-2013 Financial Framework, where unused cohesion funds/ERDF funding was reallocated to a new priority: satellite based broadband internet for remote regions;

C.   Addressing the problems of the sector

| 29. | notes that the space sector is characterised by long development cycles. This increases the market risks, as market potential for new applications needs to be assessed far in advance. As a result, it is difficult for space entrepreneurs to attract investors. Moreover, the long operational life of space assets (10-15 years for a telecommunications satellite) makes the market very cyclical, and it is very difficult to adjust supply quickly to changing demand conditions; |
| --- | --- |

29.

notes that the space sector is characterised by long development cycles. This increases the market risks, as market potential for new applications needs to be assessed far in advance. As a result, it is difficult for space entrepreneurs to attract investors. Moreover, the long operational life of space assets (10-15 years for a telecommunications satellite) makes the market very cyclical, and it is very difficult to adjust supply quickly to changing demand conditions;

| 30. | recognises that in the upstream sector, high fixed costs due to heavy R&D investments and long development times and the small size of the market prevent the creation of economies of scale, which encourages a tendency towards concentration (e.g. in the launch business). On the other hand, large economies of scale are possible in the downstream sector, making larger markets more viable economically. The very nature of these challenges means that the central role of governments in the European space economy cannot be overlooked; |
| --- | --- |

30.

recognises that in the upstream sector, high fixed costs due to heavy R&D investments and long development times and the small size of the market prevent the creation of economies of scale, which encourages a tendency towards concentration (e.g. in the launch business). On the other hand, large economies of scale are possible in the downstream sector, making larger markets more viable economically. The very nature of these challenges means that the central role of governments in the European space economy cannot be overlooked;

| 31. | stresses that it is absolutely crucial for the European Union and its Member States, in concert with the ESA, to take, without delay, the necessary political, legal and technical decisions to provide for the requisite financial resources to ensure independent access to space, complete the space systems currently being developed or planned and promote R&D and the development of innovative space services and applications; |
| --- | --- |

31.

stresses that it is absolutely crucial for the European Union and its Member States, in concert with the ESA, to take, without delay, the necessary political, legal and technical decisions to provide for the requisite financial resources to ensure independent access to space, complete the space systems currently being developed or planned and promote R&D and the development of innovative space services and applications;

| 32. | perceives that space manufacturing, although of strategic importance, is still not a major force in national economies as compared with other industrial sectors in Europe and calls for the future EU space industrial policy to ensure greater independence of the EU from the supply of strategic components by third countries; |
| --- | --- |

32.

perceives that space manufacturing, although of strategic importance, is still not a major force in national economies as compared with other industrial sectors in Europe and calls for the future EU space industrial policy to ensure greater independence of the EU from the supply of strategic components by third countries;

| 33. | encourages the ESA to continue its support to organisations interested in transferring space technology into other industries through funding for feasibility studies, market analyses and prototyping. Support for start-up companies is available through business incubators as well as the ‘incentive’ (or seed funding) available from the ESA Technology Transfer Programme Office (TTPO). The Committee also calls for a dialogue which could lead to increased opportunities for actors at the local and regional level; |
| --- | --- |

33.

encourages the ESA to continue its support to organisations interested in transferring space technology into other industries through funding for feasibility studies, market analyses and prototyping. Support for start-up companies is available through business incubators as well as the ‘incentive’ (or seed funding) available from the ESA Technology Transfer Programme Office (TTPO). The Committee also calls for a dialogue which could lead to increased opportunities for actors at the local and regional level;

| 34. | expresses the opinion that it is vital that the EU promotes ‘smart specialisation’ and cooperation between its regional and innovation funding programmes if it is to avoid falling behind its international competitors; |
| --- | --- |

34.

expresses the opinion that it is vital that the EU promotes ‘smart specialisation’ and cooperation between its regional and innovation funding programmes if it is to avoid falling behind its international competitors;

| 35. | agrees with the Council Conclusions that a key element of smart specialisation is the involvement of the regions as key players in Europe's innovation policy, which can also help the research sector unlock the massive financial potential of the EU's regional funds. Developing business models and upgrading business skills available in SMEs in the area of earth observation related services is particularly important from the point of view of local and regional authorities; |
| --- | --- |

35.

agrees with the Council Conclusions that a key element of smart specialisation is the involvement of the regions as key players in Europe's innovation policy, which can also help the research sector unlock the massive financial potential of the EU's regional funds. Developing business models and upgrading business skills available in SMEs in the area of earth observation related services is particularly important from the point of view of local and regional authorities;

| 36. | calls for coordinated EU and national policies to speed up the maturation process of the European earth observation sector on both the supply and demand side. The recent consolidation wave is a signal that the industry itself is preparing for the next phase. The time is right for crucial customer groups like governments to embrace large-scale EO applications. When governments succeed in unifying demand in an EU context, this will, on the one hand, raise demand and, on the other, permit standardisation (and economies of scale for the industry); |
| --- | --- |

36.

calls for coordinated EU and national policies to speed up the maturation process of the European earth observation sector on both the supply and demand side. The recent consolidation wave is a signal that the industry itself is preparing for the next phase. The time is right for crucial customer groups like governments to embrace large-scale EO applications. When governments succeed in unifying demand in an EU context, this will, on the one hand, raise demand and, on the other, permit standardisation (and economies of scale for the industry);

D.   Impact of the space sector

| 37. | notes that a number of life-sciences related technology spinoffs from the space sector are currently under-exploited in the EU, and that there would be huge benefits on a European level of having a well-targeted spin-off strategy at the start of a space programme, involving wider participation from representatives of other industries; |
| --- | --- |

37.

notes that a number of life-sciences related technology spinoffs from the space sector are currently under-exploited in the EU, and that there would be huge benefits on a European level of having a well-targeted spin-off strategy at the start of a space programme, involving wider participation from representatives of other industries;

| 38. | stresses the importance of satellite technology3 in the EU space sector and notes that roughly two thirds of all satellite sales are for telecommunications applications. In the context of the EU space industrial policy it is therefore important to take into account the fact that this market has been subject to cyclical variations, reflecting primarily changes in the demand for GEO telecommunication satellites and associated launch services; |
| --- | --- |

38.

stresses the importance of satellite technology3 in the EU space sector and notes that roughly two thirds of all satellite sales are for telecommunications applications. In the context of the EU space industrial policy it is therefore important to take into account the fact that this market has been subject to cyclical variations, reflecting primarily changes in the demand for GEO telecommunication satellites and associated launch services;

| 39. | observes that mobile phones, the Internet, credit cards, road tolls, television broadcasts and weather forecasts are but a few examples of everyday life functions which partially or wholly rely on satellites. Other more strategic functions include for example farming, monitoring of ocean and wind currents, navigation for ships and aircraft, monitoring of emergencies, pollution, climate and the environment; |
| --- | --- |

39.

observes that mobile phones, the Internet, credit cards, road tolls, television broadcasts and weather forecasts are but a few examples of everyday life functions which partially or wholly rely on satellites. Other more strategic functions include for example farming, monitoring of ocean and wind currents, navigation for ships and aircraft, monitoring of emergencies, pollution, climate and the environment;

| 40. | also notes that the growth of private actors in space has helped to make space technology and services more affordable and accessible, which has enabled states without national space programmes and developing states to gain from some of the benefits that space can provide; |
| --- | --- |

40.

also notes that the growth of private actors in space has helped to make space technology and services more affordable and accessible, which has enabled states without national space programmes and developing states to gain from some of the benefits that space can provide;

| 41. | acknowledges that the European Framework Programme (FP7) has been an important contributor to promoting innovation in Galileo/EGNOS and the accompanying services; however, the rapporteur might deplore that within FP7, attention for applications has been at a very low level, while it has been concentrated on the upstream sector; |
| --- | --- |

41.

acknowledges that the European Framework Programme (FP7) has been an important contributor to promoting innovation in Galileo/EGNOS and the accompanying services; however, the rapporteur might deplore that within FP7, attention for applications has been at a very low level, while it has been concentrated on the upstream sector;

E.   Future approach to the EU industrial space policy

| 42. | wonders whether the emphasis, which has hitherto been limited to the labour market, infrastructure and compliance with competition (in other words, the quality of the economic environment), is enough, or whether the focus should instead be shifted to the ability to produce exportable goods and services; |
| --- | --- |

42.

wonders whether the emphasis, which has hitherto been limited to the labour market, infrastructure and compliance with competition (in other words, the quality of the economic environment), is enough, or whether the focus should instead be shifted to the ability to produce exportable goods and services;

| 43. | welcomes the fact that the GALILEO and Copernicus programmes have been taken into account in the EU's 2014-2020 Multiannual Financial Framework; |
| --- | --- |

43.

welcomes the fact that the GALILEO and Copernicus programmes have been taken into account in the EU's 2014-2020 Multiannual Financial Framework;

| 44. | points out that, despite the fact that the European strategy for the period 2014-2020 is concentrated on research and development and high technology, the EU could lose its competitive edge in this area against the rapidly developing industrialising countries such as India, China and Brazil, if the Member States' budgets for research and development remain below the target set out in the Lisbon Strategy; |
| --- | --- |

44.

points out that, despite the fact that the European strategy for the period 2014-2020 is concentrated on research and development and high technology, the EU could lose its competitive edge in this area against the rapidly developing industrialising countries such as India, China and Brazil, if the Member States' budgets for research and development remain below the target set out in the Lisbon Strategy;

| 45. | notes that the success of any industrial policy is also inextricably linked with the macroeconomic trends in the EU and national economies and calls for the development of high tech, research intensive industrial production, where competitive advantage can be used; |
| --- | --- |

45.

notes that the success of any industrial policy is also inextricably linked with the macroeconomic trends in the EU and national economies and calls for the development of high tech, research intensive industrial production, where competitive advantage can be used;

| 46. | considers balanced implementation of the Europe 2020 Strategy to be important; wonders, therefore, whether competitiveness in innovative sectors is enough to improve employment and growth across the entire EU economy and calls for support to be given to the whole space sector so that the structure of the sector will be more balanced as far as large, medium and small companies are concerned; |
| --- | --- |

46.

considers balanced implementation of the Europe 2020 Strategy to be important; wonders, therefore, whether competitiveness in innovative sectors is enough to improve employment and growth across the entire EU economy and calls for support to be given to the whole space sector so that the structure of the sector will be more balanced as far as large, medium and small companies are concerned;

| 47. | acknowledges that while the European Commission does have tools in place (such as smart specialisation) to ensure a more geographical approach to industrial policy in the key sectors, much still remains to be done to ensure sufficient access to funding (risk capital) from sources that are not too risk averse; |
| --- | --- |

47.

acknowledges that while the European Commission does have tools in place (such as smart specialisation) to ensure a more geographical approach to industrial policy in the key sectors, much still remains to be done to ensure sufficient access to funding (risk capital) from sources that are not too risk averse;

| 48. | points out that a close relationship between the local/regional level, which is working with industries to detect and support their first steps, and the national/community levels, should be a vital aspect of the EU industrial policy; |
| --- | --- |

48.

points out that a close relationship between the local/regional level, which is working with industries to detect and support their first steps, and the national/community levels, should be a vital aspect of the EU industrial policy;

F.   Subsidiarity and proportionality

| 49. | agrees with the Commission’s opinion that in accordance with Art 4.3 TFEU, in the areas of research, technological development and space, the Union shall have competence to carry out activities, in particular to define and implement programmes; however, the exercise of that competence shall not result in Member States being prevented from exercising theirs. The shared competences will last until the EU creates secondary EU legislation in these areas, at which point national parliaments must remove any conflicting national law; |
| --- | --- |

49.

agrees with the Commission’s opinion that in accordance with Art 4.3 TFEU, in the areas of research, technological development and space, the Union shall have competence to carry out activities, in particular to define and implement programmes; however, the exercise of that competence shall not result in Member States being prevented from exercising theirs. The shared competences will last until the EU creates secondary EU legislation in these areas, at which point national parliaments must remove any conflicting national law;

| 50. | notes that the fragmented and limited funding available for space research is considered one of the main barriers to further development of space activities and therefore calls for better coordination of space activities between the EU, the ESA and their respective Member States, thus enabling Europe to exert global leadership in the space sector. The importance of EU involvement in funding Space research activities is supported by the fact that many space research activities would not take place without EC support. EU action is thus deemed indispensable in this respect; |
| --- | --- |

50.

notes that the fragmented and limited funding available for space research is considered one of the main barriers to further development of space activities and therefore calls for better coordination of space activities between the EU, the ESA and their respective Member States, thus enabling Europe to exert global leadership in the space sector. The importance of EU involvement in funding Space research activities is supported by the fact that many space research activities would not take place without EC support. EU action is thus deemed indispensable in this respect;

| 51. | is of the opinion that the action proposed in the Communication is necessary because the issue being addressed has trans-national aspects that cannot be satisfactorily regulated by Member States and because existing EU measures and targeted assistance provided in this framework are not sufficient to achieve the intended objectives. The proposed action will provide a clear benefit, by reason of its scale and its effectiveness, compared with fragmented action at national, regional or local levels, mainly by virtue of economies of scale, since comprehensive space programmes require a level of investment that Member States cannot afford on their own; |
| --- | --- |

51.

is of the opinion that the action proposed in the Communication is necessary because the issue being addressed has trans-national aspects that cannot be satisfactorily regulated by Member States and because existing EU measures and targeted assistance provided in this framework are not sufficient to achieve the intended objectives. The proposed action will provide a clear benefit, by reason of its scale and its effectiveness, compared with fragmented action at national, regional or local levels, mainly by virtue of economies of scale, since comprehensive space programmes require a level of investment that Member States cannot afford on their own;

| 52. | notes, moreover, that the present initiative does not seek to replace initiatives taken by Member States. It seeks to complement action taken at their level and reinforce coordination where such coordination is necessary to achieve common objectives; |
| --- | --- |

52.

notes, moreover, that the present initiative does not seek to replace initiatives taken by Member States. It seeks to complement action taken at their level and reinforce coordination where such coordination is necessary to achieve common objectives;

| 53. | considers the arguments to be clear, adequate and convincing. Therefore EU action envisaged by this Communication is in line with the principle of subsidiarity; |
| --- | --- |

53.

considers the arguments to be clear, adequate and convincing. Therefore EU action envisaged by this Communication is in line with the principle of subsidiarity;

| 54. | agrees with the Commission that, concerning proportionality, the EU should legislate only to the extent necessary. Preference should be given to encouraging cooperation between Member States, coordinating national action or to complementing and supporting such action by guidelines, setting up information exchange mechanisms etc. Relevant aspects to be regulated in the context of the nascent EU space policy will be industrial standards, issues related to technical operations and commercial exploitation of satellite communication infrastructure; |
| --- | --- |

54.

agrees with the Commission that, concerning proportionality, the EU should legislate only to the extent necessary. Preference should be given to encouraging cooperation between Member States, coordinating national action or to complementing and supporting such action by guidelines, setting up information exchange mechanisms etc. Relevant aspects to be regulated in the context of the nascent EU space policy will be industrial standards, issues related to technical operations and commercial exploitation of satellite communication infrastructure;

Brussels, 8 October 2013.

The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO

---

| 5.12.2013 | EN | Official Journal of the European Union | C 356/55 |
| --- | --- | --- | --- |

5.12.2013

EN

Official Journal of the European Union

C 356/55

---

Opinion of the Committee of the Regions on ‘CARS 2020: action plan for a competitive and sustainable automotive industry in Europe’

2013/C 356/10

THE COMMITTEE OF THE REGIONS

| — | notes that the difficulties experienced by the car industry in many Member States are connected with structural causes that require far-reaching changes; |
| --- | --- |

—

notes that the difficulties experienced by the car industry in many Member States are connected with structural causes that require far-reaching changes;

| — | stresses the importance of exploiting every opportunity at local and regional authority level. These include, depending on their competences within each country, the reduction of red tape, the acceleration of approval procedures, (re)training measures, the establishment of skill and innovation centres, and calls for tender for innovative projects; |
| --- | --- |

—

stresses the importance of exploiting every opportunity at local and regional authority level. These include, depending on their competences within each country, the reduction of red tape, the acceleration of approval procedures, (re)training measures, the establishment of skill and innovation centres, and calls for tender for innovative projects;

| — | points to the opportunities afforded by funding for research and development projects or the establishment of clusters. In some regions, ‘car clusters’ are being developed into ‘mobility clusters’, by involving rail systems and air travel and even bicycles — in particular e-bikes and bicycles with ancillary electric motors (pedelecs). Through diversification, it has been possible to maintain capacity utilisation, even in times of crisis. This trend can be encouraged, particularly through synergies in innovation and technology; |
| --- | --- |

—

points to the opportunities afforded by funding for research and development projects or the establishment of clusters. In some regions, ‘car clusters’ are being developed into ‘mobility clusters’, by involving rail systems and air travel and even bicycles — in particular e-bikes and bicycles with ancillary electric motors (pedelecs). Through diversification, it has been possible to maintain capacity utilisation, even in times of crisis. This trend can be encouraged, particularly through synergies in innovation and technology;

| — | warmly welcomes the European Commission's approach of setting up a high-level group of experts tasked with observing the implementation and fine-tuning of the action plan, and welcomes the involvement of the Committee of the Regions in its work; |
| --- | --- |

—

warmly welcomes the European Commission's approach of setting up a high-level group of experts tasked with observing the implementation and fine-tuning of the action plan, and welcomes the involvement of the Committee of the Regions in its work;

| Rapporteur: | Christian BUCHMANN (AT/EPP), Styrian regional government Minister |
| --- | --- |
| Reference document | Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on CARS 2020: Action Plan for a competitive and sustainable automotive industry in Europe
  COM(2012) 636 final |

Rapporteur:

Christian BUCHMANN (AT/EPP), Styrian regional government Minister

Reference document

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on CARS 2020: Action Plan for a competitive and sustainable automotive industry in Europe

COM(2012) 636 final

I.   GENERAL COMMENTS

| 1. | The automotive industry directly and indirectly supports 12 million jobs in the EU and spends EUR 28 billion on research and development (2009). It is a growth multiplier that accounts for a significant, positive proportion of the EU's trade balance. |
| --- | --- |

1.

The automotive industry directly and indirectly supports 12 million jobs in the EU and spends EUR 28 billion on research and development (2009). It is a growth multiplier that accounts for a significant, positive proportion of the EU's trade balance.

| 2. | The European automotive industry is suffering a serious crisis that looks likely to worsen and that will have repercussions for the entire European economy. |
| --- | --- |

2.

The European automotive industry is suffering a serious crisis that looks likely to worsen and that will have repercussions for the entire European economy.

| 3. | While markets outside Europe such as those in the BRIC countries are booming, European demand for vehicles is stagnating, as shown by trends in new registrations for passenger vehicles. The number of new vehicle registrations fell by 8.7 % in January 2013 to 885 159, which is the lowest level in any January since records began (1). |
| --- | --- |

3.

While markets outside Europe such as those in the BRIC countries are booming, European demand for vehicles is stagnating, as shown by trends in new registrations for passenger vehicles. The number of new vehicle registrations fell by 8.7 % in January 2013 to 885 159, which is the lowest level in any January since records began (1).

| 4. | European manufacturers are or have been able to benefit only to a limited extent and in different ways from the potential on foreign markets. While PSA Peugeot Citroen, Ford and Fiat are making substantial losses, premium companies such as BMW, Audi and Daimler initially saw increases in their sales figures. For mass producers who have hitherto sold their small and medium-sized cars primarily in Europe, the economic situation is becoming increasingly difficult. |
| --- | --- |

4.

European manufacturers are or have been able to benefit only to a limited extent and in different ways from the potential on foreign markets. While PSA Peugeot Citroen, Ford and Fiat are making substantial losses, premium companies such as BMW, Audi and Daimler initially saw increases in their sales figures. For mass producers who have hitherto sold their small and medium-sized cars primarily in Europe, the economic situation is becoming increasingly difficult.

| 5. | Experts do not expect the situation to improve over the next three years. Further restructuring, job losses and factory closures are to be expected in the automotive industry. At the same time, the issue of the extent of possible support and boosting research and development activities needs to be addressed. |
| --- | --- |

5.

Experts do not expect the situation to improve over the next three years. Further restructuring, job losses and factory closures are to be expected in the automotive industry. At the same time, the issue of the extent of possible support and boosting research and development activities needs to be addressed.

II.   POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS

| 6. | notes that the difficulties experienced by the car industry in many Member States are connected with structural causes that require far-reaching changes; |
| --- | --- |

6.

notes that the difficulties experienced by the car industry in many Member States are connected with structural causes that require far-reaching changes;

| 7. | stresses that these changes must be accompanied by close social dialogue so that the impact on those affected can be limited as far as possible; |
| --- | --- |

7.

stresses that these changes must be accompanied by close social dialogue so that the impact on those affected can be limited as far as possible;

| 8. | expressly welcomes the CARS 2020 Commission Communication, which proposes an Action Plan for a competitive and sustainable automotive industry in Europe; |
| --- | --- |

8.

expressly welcomes the CARS 2020 Commission Communication, which proposes an Action Plan for a competitive and sustainable automotive industry in Europe;

| 9. | shares the European Commission's view that these measures must be implemented quickly in the light of the situation outlined above; |
| --- | --- |

9.

shares the European Commission's view that these measures must be implemented quickly in the light of the situation outlined above;

| 10. | points out that the European automotive industry should contribute to a society that is sustainable over the long term. In this connection, environmental, climate and road safety measures will be very important; |
| --- | --- |

10.

points out that the European automotive industry should contribute to a society that is sustainable over the long term. In this connection, environmental, climate and road safety measures will be very important;

| 11. | warmly welcomes the European Commission's approach of setting up a high-level group of experts tasked with observing the implementation and fine-tuning of the action plan, and welcomes the involvement of the Committee of the Regions in the work of the high-level group of experts; |
| --- | --- |

11.

warmly welcomes the European Commission's approach of setting up a high-level group of experts tasked with observing the implementation and fine-tuning of the action plan, and welcomes the involvement of the Committee of the Regions in the work of the high-level group of experts;

| 12. | is very concerned at the apparent lack of consistency in the European Commission's proposals. The Directorates-General for enterprise, climate, the environment, employment, the single market or trade often work at cross purposes, and the initiatives in the various policy areas are insufficiently coordinated; |
| --- | --- |

12.

is very concerned at the apparent lack of consistency in the European Commission's proposals. The Directorates-General for enterprise, climate, the environment, employment, the single market or trade often work at cross purposes, and the initiatives in the various policy areas are insufficiently coordinated;

| 13. | refers, for example, to the restrictions on aid to large enterprises and the current, very low threshold for the definition of small and medium-sized enterprises (SMEs), as already set out in the CoR opinion on the guidelines for regional State aids 2014-2020 (CdR 2232-2012 _00_00_TRA_AC); |
| --- | --- |

13.

refers, for example, to the restrictions on aid to large enterprises and the current, very low threshold for the definition of small and medium-sized enterprises (SMEs), as already set out in the CoR opinion on the guidelines for regional State aids 2014-2020 (CdR 2232-2012 _00_00_TRA_AC);

| 14. | in this context, stresses the major importance of flexible instruments to support firms in difficulty and refers in this context to the CoR opinion on the EU guidelines on state aid for rescuing and restructuring firms in difficulty (CdR 240-2013_00_00_TRA_AC); |
| --- | --- |

14.

in this context, stresses the major importance of flexible instruments to support firms in difficulty and refers in this context to the CoR opinion on the EU guidelines on state aid for rescuing and restructuring firms in difficulty (CdR 240-2013_00_00_TRA_AC);

| 15. | points out that drawing up EU guidelines on financial incentives for promoting clean vehicles was one of the recommendations of the CARS 21 final report adopted in June 2012. Thus regrets that the Commission opted to draw up these guidelines only in the form of a working document, rather than a legislative text. Also regrets that this working document contains only five non-binding ‘recommended principles’ and that it is vague on the impact of the significant disparities in fiscal incentives on the functioning of the internal market; |
| --- | --- |

15.

points out that drawing up EU guidelines on financial incentives for promoting clean vehicles was one of the recommendations of the CARS 21 final report adopted in June 2012. Thus regrets that the Commission opted to draw up these guidelines only in the form of a working document, rather than a legislative text. Also regrets that this working document contains only five non-binding ‘recommended principles’ and that it is vague on the impact of the significant disparities in fiscal incentives on the functioning of the internal market;

| 16. | stresses the importance of exploiting every opportunity at local and regional authority level. These include, depending on their competences within each country, the reduction of red tape, the acceleration of approval procedures, (re)training measures, the establishment of skill and innovation centres, and calls for tender for innovative projects; |
| --- | --- |

16.

stresses the importance of exploiting every opportunity at local and regional authority level. These include, depending on their competences within each country, the reduction of red tape, the acceleration of approval procedures, (re)training measures, the establishment of skill and innovation centres, and calls for tender for innovative projects;

| 17. | would note in this connection that one initiative that could be taken at local or regional level is cooperation regarding shared testing environments for the European automotive industry. These joint projects could involve local and regional authorities, the industry, researchers, etc., and could potentially reduce the automotive industry's overall development costs significantly and have a positive long-term effect on competitiveness on the world stage; |
| --- | --- |

17.

would note in this connection that one initiative that could be taken at local or regional level is cooperation regarding shared testing environments for the European automotive industry. These joint projects could involve local and regional authorities, the industry, researchers, etc., and could potentially reduce the automotive industry's overall development costs significantly and have a positive long-term effect on competitiveness on the world stage;

| 18. | points out that the Communication focuses on continuing the quest for energy efficient vehicles whilst avoiding a particularly important point for both corporate competitiveness and the environment, i.e. the energy efficiency of vehicle manufacturing plants themselves and the support industry which should figure as an area of work to be considered as part of Cars 2020; |
| --- | --- |

18.

points out that the Communication focuses on continuing the quest for energy efficient vehicles whilst avoiding a particularly important point for both corporate competitiveness and the environment, i.e. the energy efficiency of vehicle manufacturing plants themselves and the support industry which should figure as an area of work to be considered as part of Cars 2020;

INVESTMENT IN R&D

| 19. | agrees with the European Commission that investment in research and development play a key role in the future development of the European automotive industry, as already explained in the CoR opinion on Horizon 2020 — The Framework Programme for Research and Innovation (CdR 402/2011 fin); |
| --- | --- |

19.

agrees with the European Commission that investment in research and development play a key role in the future development of the European automotive industry, as already explained in the CoR opinion on Horizon 2020 — The Framework Programme for Research and Innovation (CdR 402/2011 fin);

| 20. | would highlight inter alia demographic change, which accentuates the need for more significant investment in research and development. An ageing population brings with it new requirements in terms of adapting vehicle technologies and functions to meet the changing needs of the older people using those vehicles. More efficient, more comfortable, safer, quieter, more connected and more user-friendly vehicles may thus constitute modern competitive factors that could strengthen the European automotive industry in the long term; |
| --- | --- |

20.

would highlight inter alia demographic change, which accentuates the need for more significant investment in research and development. An ageing population brings with it new requirements in terms of adapting vehicle technologies and functions to meet the changing needs of the older people using those vehicles. More efficient, more comfortable, safer, quieter, more connected and more user-friendly vehicles may thus constitute modern competitive factors that could strengthen the European automotive industry in the long term;

| 21. | stresses that SMEs in particular play an important role in the automotive industry as innovators in the supply chain and in creating jobs. The European aid referred to in CARS 2020 would be extremely important here; |
| --- | --- |

21.

stresses that SMEs in particular play an important role in the automotive industry as innovators in the supply chain and in creating jobs. The European aid referred to in CARS 2020 would be extremely important here;

| 22. | points to the experience from the research framework programmes of recent years, which have left SMEs able to reap only limited benefits from funding under European research programmes, despite the Commission's efforts to improve. The causes of this are the heavy bureaucratic burden and the long lead times, but also the inadequate level of overall funding and the consequently low number of projects supported; |
| --- | --- |

22.

points to the experience from the research framework programmes of recent years, which have left SMEs able to reap only limited benefits from funding under European research programmes, despite the Commission's efforts to improve. The causes of this are the heavy bureaucratic burden and the long lead times, but also the inadequate level of overall funding and the consequently low number of projects supported;

| 23. | supports the European Commission's proposals to simplify project funding in Horizon 2020 and accordingly calls on the EP to support the current proposals to cut red tape so as to reduce the burden of monitoring; |
| --- | --- |

23.

supports the European Commission's proposals to simplify project funding in Horizon 2020 and accordingly calls on the EP to support the current proposals to cut red tape so as to reduce the burden of monitoring;

| 24. | regrets that the European Commission's proposals for Horizon 2020 funding were not taken up in full; |
| --- | --- |

24.

regrets that the European Commission's proposals for Horizon 2020 funding were not taken up in full;

THE ROLE OF THE STRUCTURAL FUNDS

| 25. | argues for an optimal use of structural funds by regional and local authorities to the extent permitted under rules on state aid; |
| --- | --- |

25.

argues for an optimal use of structural funds by regional and local authorities to the extent permitted under rules on state aid;

| 26. | points to the opportunities afforded by the Structural Funds, including, for example, funding for research and development projects or the establishment of clusters. In some regions, ‘car clusters’ are being developed into ‘mobility clusters’, by involving rail systems and air travel and even bicycles — in particular e-bikes and bicycles with ancillary electric motors (pedelecs). Through diversification, it has been possible to maintain capacity utilisation, even in times of crisis. This trend can be encouraged, particularly through synergies in innovation and technology; |
| --- | --- |

26.

points to the opportunities afforded by the Structural Funds, including, for example, funding for research and development projects or the establishment of clusters. In some regions, ‘car clusters’ are being developed into ‘mobility clusters’, by involving rail systems and air travel and even bicycles — in particular e-bikes and bicycles with ancillary electric motors (pedelecs). Through diversification, it has been possible to maintain capacity utilisation, even in times of crisis. This trend can be encouraged, particularly through synergies in innovation and technology;

SKILLS

| 27. | highlights the problems, also mentioned in the CARS 2020 communication, in relation to education and training, demographic change, the skills shortage and the noticeable lack of young graduates with technical degrees; |
| --- | --- |

27.

highlights the problems, also mentioned in the CARS 2020 communication, in relation to education and training, demographic change, the skills shortage and the noticeable lack of young graduates with technical degrees;

| 28. | stresses the need for wise use of ESF funding for further training of employees who are not yet threatened with unemployment. It is up to the Member States to plan the use of ESF resources. In so doing they should ensure that the specific development requirements of the region concerned are taken into consideration; |
| --- | --- |

28.

stresses the need for wise use of ESF funding for further training of employees who are not yet threatened with unemployment. It is up to the Member States to plan the use of ESF resources. In so doing they should ensure that the specific development requirements of the region concerned are taken into consideration;

| 29. | in this context, supports the European Parliament's request for the Commission to submit a proposal for a directive on information and consultation of workers, anticipation and management of restructuring; |
| --- | --- |

29.

in this context, supports the European Parliament's request for the Commission to submit a proposal for a directive on information and consultation of workers, anticipation and management of restructuring;

| 30. | calls for the EGF to be given sufficient resources and flexibility to be able to mitigate the effects of globalisation on European businesses and their staff; |
| --- | --- |

30.

calls for the EGF to be given sufficient resources and flexibility to be able to mitigate the effects of globalisation on European businesses and their staff;

| 31. | points to the positive experiences with early training of young people in the twin-track training system, in which businesses themselves train workers in the skills they need and young people have a good chance of finding work immediately once they have completed training; |
| --- | --- |

31.

points to the positive experiences with early training of young people in the twin-track training system, in which businesses themselves train workers in the skills they need and young people have a good chance of finding work immediately once they have completed training;

| 32. | supports targeted measures to make technical professions more attractive to women. Across Europe fewer than 10 % of graduates with technical degrees are women. Experience in individual regions has shown that, especially in R&D, women have a particularly valuable awareness that is greatly valued in automobile design. Moreover, constituting more than 50 % of buyers on this market, women represent the largest segment of buyers; |
| --- | --- |

32.

supports targeted measures to make technical professions more attractive to women. Across Europe fewer than 10 % of graduates with technical degrees are women. Experience in individual regions has shown that, especially in R&D, women have a particularly valuable awareness that is greatly valued in automobile design. Moreover, constituting more than 50 % of buyers on this market, women represent the largest segment of buyers;

| 33. | encourages continued cooperation between vocational education systems and business, which it sees as a means of more closely aligning curricula with changing labour market needs; |
| --- | --- |

33.

encourages continued cooperation between vocational education systems and business, which it sees as a means of more closely aligning curricula with changing labour market needs;

ALTERNATIVE FUELS AND THE NECESSARY INFRASTRUCTURE

| 34. | calls on the industry to step up the development of alternative propulsion technologies and to bring practical solutions to market so that climate goals can be reached, but also to make economic use of advances in technology (cutting the cost of fuels used, trade balance, jobs in creating biofuels, etc.) and energy saving. This also includes processes and technologies for storing new energy resources; |
| --- | --- |

34.

calls on the industry to step up the development of alternative propulsion technologies and to bring practical solutions to market so that climate goals can be reached, but also to make economic use of advances in technology (cutting the cost of fuels used, trade balance, jobs in creating biofuels, etc.) and energy saving. This also includes processes and technologies for storing new energy resources;

| 35. | suggests that there be an in-depth exchange of information between all Member States on successful practices in cooperation between vocational education systems and businesses, so that all regions can benefit from them; |
| --- | --- |

35.

suggests that there be an in-depth exchange of information between all Member States on successful practices in cooperation between vocational education systems and businesses, so that all regions can benefit from them;

| 36. | in this context, calls for the development of different technologies to be stimulated by specific goals and for no alternative to be ruled out. Depending on the application, individual technologies have strengths and weaknesses. At the same time, the whole energy balance, including the energy consumption involved in fuel production, should be taken into account when regulating the use of alternative fuels from renewable resources; |
| --- | --- |

36.

in this context, calls for the development of different technologies to be stimulated by specific goals and for no alternative to be ruled out. Depending on the application, individual technologies have strengths and weaknesses. At the same time, the whole energy balance, including the energy consumption involved in fuel production, should be taken into account when regulating the use of alternative fuels from renewable resources;

| 37. | in this context, stresses the importance of the provision of appropriate infrastructure, without which it is difficult to bring products to market. Together, therefore, efforts should be made to push ahead with alternative fuels and to create the infrastructure needed for them; this will require coordinating committees to be set up between the sector and those in charge of infrastructure planning. Developing these infrastructures should be based on prior studies and integrated mobility plans that will make it possible to examine different options in terms of the various modes of transport and the requirements of the region or local authority; |
| --- | --- |

37.

in this context, stresses the importance of the provision of appropriate infrastructure, without which it is difficult to bring products to market. Together, therefore, efforts should be made to push ahead with alternative fuels and to create the infrastructure needed for them; this will require coordinating committees to be set up between the sector and those in charge of infrastructure planning. Developing these infrastructures should be based on prior studies and integrated mobility plans that will make it possible to examine different options in terms of the various modes of transport and the requirements of the region or local authority;

| 38. | calls for the development of European guidelines on financial incentives to promote clean vehicles, which must be based on objective and available data such as CO2 emissions; |
| --- | --- |

38.

calls for the development of European guidelines on financial incentives to promote clean vehicles, which must be based on objective and available data such as CO2 emissions;

| 39. | in this context, welcomes the European Commission's initiative Clean power for transport and refers to the CoR's opinion on the subject (CdR 28-2013_00_00_TRA_AC); |
| --- | --- |

39.

in this context, welcomes the European Commission's initiative Clean power for transport and refers to the CoR's opinion on the subject (CdR 28-2013_00_00_TRA_AC);

| 40. | notes that there are innovative solutions in the area of public procurement. Alternative propulsion technologies can be given special support through public investment, particularly in urban areas (fleet conversion); |
| --- | --- |

40.

notes that there are innovative solutions in the area of public procurement. Alternative propulsion technologies can be given special support through public investment, particularly in urban areas (fleet conversion);

| 41. | points out that there are many success stories from regions and municipalities where new ground has been broken with a mixture of promotion of electric vehicles, parking space management, and infrastructure (electric charging stations); |
| --- | --- |

41.

points out that there are many success stories from regions and municipalities where new ground has been broken with a mixture of promotion of electric vehicles, parking space management, and infrastructure (electric charging stations);

LIFECYCLE APPROACH AND RECYCLING

| 42. | refers to EU Directive 2000/53/EC of 18 September 2000, which stipulates that as of 2015, 95 % of a car's weight in materials will have to be recycled. Thus resource consumption can be cut back by using recovered resources, and dependence on raw material imports can be reduced. At the same time, process-oriented recycling is becoming the basis for a continuous process of adding value and is creating skilled jobs in the regions of Europe; |
| --- | --- |

42.

refers to EU Directive 2000/53/EC of 18 September 2000, which stipulates that as of 2015, 95 % of a car's weight in materials will have to be recycled. Thus resource consumption can be cut back by using recovered resources, and dependence on raw material imports can be reduced. At the same time, process-oriented recycling is becoming the basis for a continuous process of adding value and is creating skilled jobs in the regions of Europe;

| 43. | stresses that an approach to life cycle consistent with the above objectives already begins with vehicle design, also covers all the environmentally relevant effects in the production process, includes the operational phase and, at the end, recycling and/or processing for subsequent re-use as well; |
| --- | --- |

43.

stresses that an approach to life cycle consistent with the above objectives already begins with vehicle design, also covers all the environmentally relevant effects in the production process, includes the operational phase and, at the end, recycling and/or processing for subsequent re-use as well;

| 44. | points out that this comprehensive approach above all creates great opportunities in developing new sustainable materials and helps meet the CO2 targets enshrined in the EU 2020 strategy; |
| --- | --- |

44.

points out that this comprehensive approach above all creates great opportunities in developing new sustainable materials and helps meet the CO2 targets enshrined in the EU 2020 strategy;

| 45. | stresses that the export of more than 75 % of used vehicles at the end of their product lifecycle represents a massive loss of resource potential and means that, to produce new vehicles, new raw materials (rare earths) imported from Asia must be used; |
| --- | --- |

45.

stresses that the export of more than 75 % of used vehicles at the end of their product lifecycle represents a massive loss of resource potential and means that, to produce new vehicles, new raw materials (rare earths) imported from Asia must be used;

| 46. | emphasises the important function of recycling in this context in creating jobs and reducing dependency on raw material suppliers; |
| --- | --- |

46.

emphasises the important function of recycling in this context in creating jobs and reducing dependency on raw material suppliers;

| 47. | therefore calls for more concerted efforts to use old vehicles as resources. The aim should be to create clear rules on recycling obligations and to push for the development of sustainable materials; |
| --- | --- |

47.

therefore calls for more concerted efforts to use old vehicles as resources. The aim should be to create clear rules on recycling obligations and to push for the development of sustainable materials;

| 48. | requests a greater attention to be put on the second hand car market and the analysis on consumers’ habits during the decision making process regarding the evaluation of the automotive industry and afferent issues; |
| --- | --- |

48.

requests a greater attention to be put on the second hand car market and the analysis on consumers’ habits during the decision making process regarding the evaluation of the automotive industry and afferent issues;

| 49. | it is unfortunate that the action plan mentions only one paragraph about the second hand car market and points out the aging car fleet characteristic to the EU’s Eastern countries. These are caused by the connection between the cheaper, second hand car dealership, the prices of new cars and the average net wage, as well as due to the decline of the standard of living. |
| --- | --- |

49.

it is unfortunate that the action plan mentions only one paragraph about the second hand car market and points out the aging car fleet characteristic to the EU’s Eastern countries. These are caused by the connection between the cheaper, second hand car dealership, the prices of new cars and the average net wage, as well as due to the decline of the standard of living.

Brussels, 9 October 2013.

The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO

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(1)  Data from ACEA — European Automobile Manufacturers' Association:

1

http://www.acea.be/index.php/news/news_detail/passenger_car_registrations_-8.7_in_january_2013 [21.2.2013].

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| 5.12.2013 | EN | Official Journal of the European Union | C 356/60 |
| --- | --- | --- | --- |

5.12.2013

EN

Official Journal of the European Union

C 356/60

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Opinion of the Committee of the Regions — The EU Social Investment Package

2013/C 356/11

THE COMMITTEE OF THE REGIONS

| — | appreciates the strategic approach proposed by the Commission through the Social Investment Package (SIP) to devote more attention to enhancing people's capacities and supporting their participation in society and the labour market in order to increase individuals' prosperity, boost the economy and help the EU emerge from the crisis stronger, more cohesive and more competitive; |
| --- | --- |

—

appreciates the strategic approach proposed by the Commission through the Social Investment Package (SIP) to devote more attention to enhancing people's capacities and supporting their participation in society and the labour market in order to increase individuals' prosperity, boost the economy and help the EU emerge from the crisis stronger, more cohesive and more competitive;

| — | regrets that the Commission's SIP neglects the role of local and regional authorities. Local and regional authorities have first-hand knowledge of social problems and play a key role in coordinating and implementing actions to address them; |
| --- | --- |

—

regrets that the Commission's SIP neglects the role of local and regional authorities. Local and regional authorities have first-hand knowledge of social problems and play a key role in coordinating and implementing actions to address them;

| — | notes that many local and regional authorities are already developing and implementing successful programmes to address the challenges mentioned in the SIP. Local and regional authority exchange of best practices should therefore be promoted; |
| --- | --- |

—

notes that many local and regional authorities are already developing and implementing successful programmes to address the challenges mentioned in the SIP. Local and regional authority exchange of best practices should therefore be promoted;

| — | calls on the EU to consider the possibility, in agreement with the Member States, of setting out a European social housing framework, as social housing plays a key role in tackling homelessness and in delivering the housing-led and preventative homeless strategies called for by the Commission; |
| --- | --- |

—

calls on the EU to consider the possibility, in agreement with the Member States, of setting out a European social housing framework, as social housing plays a key role in tackling homelessness and in delivering the housing-led and preventative homeless strategies called for by the Commission;

| — | points out that ESF should better address citizens' real needs by giving local and regional authorities greater flexibility to establish objectives at local level; |
| --- | --- |

—

points out that ESF should better address citizens' real needs by giving local and regional authorities greater flexibility to establish objectives at local level;

| — | calls on the Commission to develop a concrete implementation plan for the SIP. This should include mechanisms for monitoring, coordination, transnational exchange and mutual learning on thematic priorities such as youth unemployment, education, homelessness, child poverty and care for people with disabilities and dependent people. |
| --- | --- |

—

calls on the Commission to develop a concrete implementation plan for the SIP. This should include mechanisms for monitoring, coordination, transnational exchange and mutual learning on thematic priorities such as youth unemployment, education, homelessness, child poverty and care for people with disabilities and dependent people.

| Rapporteur | Ahmed ABOUTALEB (NL/PES), Mayor of the City of Rotterdam |
| --- | --- |
| Reference document | Communication from the European Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Towards Social Investment for Growth and Cohesion — including implementing the European Social Fund 2014-2020
  COM(2013) 83 final |

Rapporteur

Ahmed ABOUTALEB (NL/PES), Mayor of the City of Rotterdam

Reference document

Communication from the European Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Towards Social Investment for Growth and Cohesion — including implementing the European Social Fund 2014-2020

COM(2013) 83 final

I.   POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS

Background and reason for drawing up an opinion

| 1. | appreciates the strategic approach proposed by the Commission through the Social Investment Package (SIP) to devote more attention to enhancing people's capacities and supporting their participation in society and the labour market in order to increase individuals' prosperity, boost the economy and help the EU emerge from the crisis stronger, more cohesive and more competitive; |
| --- | --- |

1.

appreciates the strategic approach proposed by the Commission through the Social Investment Package (SIP) to devote more attention to enhancing people's capacities and supporting their participation in society and the labour market in order to increase individuals' prosperity, boost the economy and help the EU emerge from the crisis stronger, more cohesive and more competitive;

| 2. | recalls its opinion on Active Inclusion (2008/C 257/01), which emphasised the importance of local and regional authorities as key actors in active inclusion policies; |
| --- | --- |

2.

recalls its opinion on Active Inclusion (2008/C 257/01), which emphasised the importance of local and regional authorities as key actors in active inclusion policies;

| 3. | believes that sustainable growth, balanced budgets and social cohesion can only be achieved if more efforts are made to create new jobs and to improve social protection and social inclusion. This must be fully reflected in the European Semester by ensuring the incorporation in the surveillance and coordination mechanisms of objectives related in particular to decent jobs and the reduction of inequalities and thus a balance between economic and social objectives and continuous efforts to promote economic, social and territorial cohesion in order to reduce the economic and social gap between regions; |
| --- | --- |

3.

believes that sustainable growth, balanced budgets and social cohesion can only be achieved if more efforts are made to create new jobs and to improve social protection and social inclusion. This must be fully reflected in the European Semester by ensuring the incorporation in the surveillance and coordination mechanisms of objectives related in particular to decent jobs and the reduction of inequalities and thus a balance between economic and social objectives and continuous efforts to promote economic, social and territorial cohesion in order to reduce the economic and social gap between regions;

| 4. | draws attention to the fact that challenges related to poverty and social exclusion are particularly critical in absolute terms in urban areas which account for 80 % of the European population and 85 % of the EU's GDP, while rural areas due to lower income levels and low population density face severe social problems in relative terms. In urban areas, social problems tend to concentrate in certain neighbourhoods, creating pockets of deprivation regardless of a city’s prosperity; |
| --- | --- |

4.

draws attention to the fact that challenges related to poverty and social exclusion are particularly critical in absolute terms in urban areas which account for 80 % of the European population and 85 % of the EU's GDP, while rural areas due to lower income levels and low population density face severe social problems in relative terms. In urban areas, social problems tend to concentrate in certain neighbourhoods, creating pockets of deprivation regardless of a city’s prosperity;

General comments

| 5. | stresses that in the fight against poverty and social exclusion it is essential to guarantee, as enshrined in the EU Charter on Fundamental Rights, equal access for all citizens to basic services of general interest, such as housing, education, health care, employment and access to social services. Solidarity amongst citizens from all layers of society is one of the preconditions for achieving this. The distribution of these basic services requires a comprehensive approach, with both a short-term and long-term focus, that puts citizens at the heart of the process of finding solutions; |
| --- | --- |

5.

stresses that in the fight against poverty and social exclusion it is essential to guarantee, as enshrined in the EU Charter on Fundamental Rights, equal access for all citizens to basic services of general interest, such as housing, education, health care, employment and access to social services. Solidarity amongst citizens from all layers of society is one of the preconditions for achieving this. The distribution of these basic services requires a comprehensive approach, with both a short-term and long-term focus, that puts citizens at the heart of the process of finding solutions;

| 6. | calls for a clear commitment from all EU institutions to citizen participation in all phases of policy development, from deliberation to implementation. It is of the utmost importance at this particular moment that we regain trust in our democratic institutions by demonstrating our full responsiveness to citizens’ needs and aspirations. In addition, by looking for answers at community level and capitalising on the energy, willingness to make a difference and knowledge about the real needs on the ground among citizens, we will be better equipped to come up with realistic and effective answers to social challenges. Investing in communities at (sub)local level creates stable neighbourhoods that will have a positive impact on safety perception; |
| --- | --- |

6.

calls for a clear commitment from all EU institutions to citizen participation in all phases of policy development, from deliberation to implementation. It is of the utmost importance at this particular moment that we regain trust in our democratic institutions by demonstrating our full responsiveness to citizens’ needs and aspirations. In addition, by looking for answers at community level and capitalising on the energy, willingness to make a difference and knowledge about the real needs on the ground among citizens, we will be better equipped to come up with realistic and effective answers to social challenges. Investing in communities at (sub)local level creates stable neighbourhoods that will have a positive impact on safety perception;

| 7. | welcomes the fact that the Commission recognises that employment and social policy is primarily the responsibility of Member States and local and regional authorities, and thus that it respects the principle of subsidiarity; |
| --- | --- |

7.

welcomes the fact that the Commission recognises that employment and social policy is primarily the responsibility of Member States and local and regional authorities, and thus that it respects the principle of subsidiarity;

| 8. | supports the Commission’s view that in the fight against unemployment it is key to put greater stress on measures to create jobs, reduce unemployment and promote lifelong learning, initiatives to boost competitiveness in the labour market, education, training and equal opportunities, in addition to other measures to improve people's skills and opportunities. Enabling the mobility of workers and providing micro-loans to those wishing to set up or expand businesses are among these measures; |
| --- | --- |

8.

supports the Commission’s view that in the fight against unemployment it is key to put greater stress on measures to create jobs, reduce unemployment and promote lifelong learning, initiatives to boost competitiveness in the labour market, education, training and equal opportunities, in addition to other measures to improve people's skills and opportunities. Enabling the mobility of workers and providing micro-loans to those wishing to set up or expand businesses are among these measures;

| 9. | regrets that the Commission's Social Investment Package neglects the role of local and regional authorities. Local and regional authorities have a major impact on the lives of a majority of Europe’s citizens, who live, work and study, or receive care, in the case of people with disabilities and dependent people, in the areas managed by them. Local and regional authorities are the level where most social services are provided and most benefits are paid out; |
| --- | --- |

9.

regrets that the Commission's Social Investment Package neglects the role of local and regional authorities. Local and regional authorities have a major impact on the lives of a majority of Europe’s citizens, who live, work and study, or receive care, in the case of people with disabilities and dependent people, in the areas managed by them. Local and regional authorities are the level where most social services are provided and most benefits are paid out;

| 10. | believes that the integrated delivery of active inclusion strategies which has been called for by the European Parliament and the Commission will benefit from a stronger role for local and regional authorities in decision making. Local and regional authorities have first-hand knowledge of social problems and play a key role in coordinating and implementing actions to address them. Experience in dealing with social challenges is crucial to realising the Europe 2020 objectives. For this reason, local and regional authorities need to play a key role in the European semester and in negotiations about NRPs and their implementation; |
| --- | --- |

10.

believes that the integrated delivery of active inclusion strategies which has been called for by the European Parliament and the Commission will benefit from a stronger role for local and regional authorities in decision making. Local and regional authorities have first-hand knowledge of social problems and play a key role in coordinating and implementing actions to address them. Experience in dealing with social challenges is crucial to realising the Europe 2020 objectives. For this reason, local and regional authorities need to play a key role in the European semester and in negotiations about NRPs and their implementation;

| 11. | stresses that work should pay. This means guaranteeing an adequate minimum wage and good quality of jobs. If a person is (temporarily) not (yet) able to work, an adequate livelihood with equal access to basic preventive, capacitating and activating services should be ensured. The CoR therefore calls on the European Commission to address the need for an implementation of the 1992 Council Recommendation on Minimum Income; |
| --- | --- |

11.

stresses that work should pay. This means guaranteeing an adequate minimum wage and good quality of jobs. If a person is (temporarily) not (yet) able to work, an adequate livelihood with equal access to basic preventive, capacitating and activating services should be ensured. The CoR therefore calls on the European Commission to address the need for an implementation of the 1992 Council Recommendation on Minimum Income;

| 12. | notes local authorities need to harness the energies of all the individuals, civil society and businesses flocking to their urban areas. The innovative spirit of social entrepreneurs who can step in with new solutions to meet demand for services and infrastructure should be fostered. Regions and cities should strive for a process of co-creation by forming productive partnerships with the private sector and civil society groups, while simultaneously promoting genuine and profound citizen involvement at all stages of social innovation (ideas, planning, piloting, developing and implementing); |
| --- | --- |

12.

notes local authorities need to harness the energies of all the individuals, civil society and businesses flocking to their urban areas. The innovative spirit of social entrepreneurs who can step in with new solutions to meet demand for services and infrastructure should be fostered. Regions and cities should strive for a process of co-creation by forming productive partnerships with the private sector and civil society groups, while simultaneously promoting genuine and profound citizen involvement at all stages of social innovation (ideas, planning, piloting, developing and implementing);

| 13. | considers that at local and regional level, in social inclusion and integration policies, participation of all residents is crucial; there should be no distinction between third country nationals and EU citizens. Draws attention to the fact that the inflow of newcomers as a result of intra-EU mobility creates challenges in terms of adjustment as regards public services and care provision for citizens in terms of accommodation, work and education. The basic integration requirements for EU citizens are generally no different from those of other newcomers. They need to get to grips with a new language, with new institutions and, sometimes, with different social norms; |
| --- | --- |

13.

considers that at local and regional level, in social inclusion and integration policies, participation of all residents is crucial; there should be no distinction between third country nationals and EU citizens. Draws attention to the fact that the inflow of newcomers as a result of intra-EU mobility creates challenges in terms of adjustment as regards public services and care provision for citizens in terms of accommodation, work and education. The basic integration requirements for EU citizens are generally no different from those of other newcomers. They need to get to grips with a new language, with new institutions and, sometimes, with different social norms;

| 14. | regrets that the Commission has only partially taken up the European Parliament’s own-initiative report on social investment (25.7.2012, 2012/2003 INI), which called for better governance to achieve the employment and social targets of the Europe 2020 strategy and is not proposing any additional resources. The SIP should go beyond policy recommendations addressed to the Member States and the announcement of a few legislative initiatives. Particularly in these times of crises, the European budget and national budgets should aim to include employment and social investment programmes; |
| --- | --- |

14.

regrets that the Commission has only partially taken up the European Parliament’s own-initiative report on social investment (25.7.2012, 2012/2003 INI), which called for better governance to achieve the employment and social targets of the Europe 2020 strategy and is not proposing any additional resources. The SIP should go beyond policy recommendations addressed to the Member States and the announcement of a few legislative initiatives. Particularly in these times of crises, the European budget and national budgets should aim to include employment and social investment programmes;

| 15. | notes that the SIP presents comprehensive information on social trends in Europe. The data and information used is based on national or regional trends and statistics. Such aggregate information does not sufficiently illustrate the local level challenges or the diverse social needs and deprivation between city and regional or national levels. Collecting evidence of what works and what does not work at local level is essential to ensure that implemented measures are both efficient and effective in meeting the social policy objectives. The CoR encourages the European institutions to collect data and information on social trends at local and regional level and to assess and evaluate social inclusion policies coming from regional and local authorities and in particular from major cities; |
| --- | --- |

15.

notes that the SIP presents comprehensive information on social trends in Europe. The data and information used is based on national or regional trends and statistics. Such aggregate information does not sufficiently illustrate the local level challenges or the diverse social needs and deprivation between city and regional or national levels. Collecting evidence of what works and what does not work at local level is essential to ensure that implemented measures are both efficient and effective in meeting the social policy objectives. The CoR encourages the European institutions to collect data and information on social trends at local and regional level and to assess and evaluate social inclusion policies coming from regional and local authorities and in particular from major cities;

| 16. | would refer to the constant gender discrimination still suffered by people belonging to groups disadvantaged on several levels (e.g. women and single parents); welcomes the fact that the European Commission is aware of this particular challenge and wishes to pay appropriate attention thereto; |
| --- | --- |

16.

would refer to the constant gender discrimination still suffered by people belonging to groups disadvantaged on several levels (e.g. women and single parents); welcomes the fact that the European Commission is aware of this particular challenge and wishes to pay appropriate attention thereto;

| 17. | acknowledges however that the communication could represent a turning point by defining social policy as an investment in society rather than a cost of market failure. Describing social policy in these terms may promote a shift in policy from corrective measures to preventative measures, thereby tackling issues such as social exclusion before they develop and delaying the onset of dependency by promoting personal autonomy and active ageing; |
| --- | --- |

17.

acknowledges however that the communication could represent a turning point by defining social policy as an investment in society rather than a cost of market failure. Describing social policy in these terms may promote a shift in policy from corrective measures to preventative measures, thereby tackling issues such as social exclusion before they develop and delaying the onset of dependency by promoting personal autonomy and active ageing;

| 18. | welcomes the recognition by the European Council of 27-28 June 2013 of the need to strengthen the EMU's social dimension. The challenge is to provide the EU with the tools to sustain the potential for real economic convergence and social progress for all Member States instead of relying of internal devaluation mechanisms only to address asymmetric shocks. Looks forward therefore to the Commission Communication on the social dimension of the EMU planned for early October 2013; |
| --- | --- |

18.

welcomes the recognition by the European Council of 27-28 June 2013 of the need to strengthen the EMU's social dimension. The challenge is to provide the EU with the tools to sustain the potential for real economic convergence and social progress for all Member States instead of relying of internal devaluation mechanisms only to address asymmetric shocks. Looks forward therefore to the Commission Communication on the social dimension of the EMU planned for early October 2013;

| 19. | considers that the EMU's social dimension could, as suggested by the European Parliament (1), build on a ‘Social Investment Pact’ based on the model of the ‘Euro Plus Pact’. It would set targets for social investments to be made by Member States in order to meet the employment, social and education objectives of the Europe 2020 strategy; the Social Investment Pact should also be complemented with an Employment and Social policy scoreboard to be introduced in line with article 148 TFEU and under the responsibility of EPSCO in order to detect employment and social imbalances that could threaten the stability of the Economic and Monetary Union; |
| --- | --- |

19.

considers that the EMU's social dimension could, as suggested by the European Parliament (1), build on a ‘Social Investment Pact’ based on the model of the ‘Euro Plus Pact’. It would set targets for social investments to be made by Member States in order to meet the employment, social and education objectives of the Europe 2020 strategy; the Social Investment Pact should also be complemented with an Employment and Social policy scoreboard to be introduced in line with article 148 TFEU and under the responsibility of EPSCO in order to detect employment and social imbalances that could threaten the stability of the Economic and Monetary Union;

| 20. | encourages the European Commission to further explore the feasibility of a European Union unemployment benefit insurance scheme potentially acting as an automatic stabiliser at EMU level; |
| --- | --- |

20.

encourages the European Commission to further explore the feasibility of a European Union unemployment benefit insurance scheme potentially acting as an automatic stabiliser at EMU level;

| 21. | welcomes the fact that the European Council conclusions (2) stress that ‘the possibilities offered by the EU's existing fiscal framework to balance productive public investment needs with fiscal discipline objectives’ should be further ‘exploited’ in the preventive arm of the Stability and Growth Pact; therefore expects the Commission to address further the issue of the quality of public spending, inter alia by assessing a separation of current spending and investment in the budget deficit calculations so as to avoid public investments with long-term net benefits being impeded; |
| --- | --- |

21.

welcomes the fact that the European Council conclusions (2) stress that ‘the possibilities offered by the EU's existing fiscal framework to balance productive public investment needs with fiscal discipline objectives’ should be further ‘exploited’ in the preventive arm of the Stability and Growth Pact; therefore expects the Commission to address further the issue of the quality of public spending, inter alia by assessing a separation of current spending and investment in the budget deficit calculations so as to avoid public investments with long-term net benefits being impeded;

Recommendations

| 22. | insists that education (either formal and or informal) should be at the heart of the SIP. Inequalities in access to education — especially high-quality education that prepares young people for employment opportunities in an inclusive information society and helps them become active citizens in complex, democratic societies — are a critical barrier to reducing poverty and increasing economic growth. Member States must show a commitment to investing in education, lifelong learning and training for all by putting special emphasis on early childhood education and access to tertiary education, cooperation between businesses and schools, on-the-job training and special training for sectors with labour shortages (e.g. medical sector, clean tech, ICT) and on cutting school drop-out rates; |
| --- | --- |

22.

insists that education (either formal and or informal) should be at the heart of the SIP. Inequalities in access to education — especially high-quality education that prepares young people for employment opportunities in an inclusive information society and helps them become active citizens in complex, democratic societies — are a critical barrier to reducing poverty and increasing economic growth. Member States must show a commitment to investing in education, lifelong learning and training for all by putting special emphasis on early childhood education and access to tertiary education, cooperation between businesses and schools, on-the-job training and special training for sectors with labour shortages (e.g. medical sector, clean tech, ICT) and on cutting school drop-out rates;

| 23. | welcomes the Commission’s focus on education and training and believes that, in so doing, we should pay greater attention to vocational training and its quality by introducing practical measures at the guidance stage as well as during education and training. We need more craftspeople, engineers and technicians in the EU economy in order to be competitive in a global world. Regrettably, fewer and fewer people within the EU are interested in vocational training, while it offers great opportunities in combating unemployment and for sustainable development of the economy; |
| --- | --- |

23.

welcomes the Commission’s focus on education and training and believes that, in so doing, we should pay greater attention to vocational training and its quality by introducing practical measures at the guidance stage as well as during education and training. We need more craftspeople, engineers and technicians in the EU economy in order to be competitive in a global world. Regrettably, fewer and fewer people within the EU are interested in vocational training, while it offers great opportunities in combating unemployment and for sustainable development of the economy;

| 24. | insists that ongoing and lifelong vocational training must be highly valued. The European Union should present sufficient long-term measures and reserve sufficient funding from the European Social Fund (ESF) to improve the level of vocational training; |
| --- | --- |

24.

insists that ongoing and lifelong vocational training must be highly valued. The European Union should present sufficient long-term measures and reserve sufficient funding from the European Social Fund (ESF) to improve the level of vocational training;

| 25. | stresses that, in addition to the strong focus on the supply side of employability, more attention is required for the demand side of the labour market. It is a fact that the unemployed are predominantly low-skilled and that vacant jobs require high skills, and, in these times of crisis, we need to complement demand-side measures with supply-side instruments that go beyond the deregulation of labour markets, lowering of labour costs and provision of incentives for the unemployed to take poorly paid jobs. We should improve the skills of the low-skilled and unemployed by providing them with the necessary learning capacities; |
| --- | --- |

25.

stresses that, in addition to the strong focus on the supply side of employability, more attention is required for the demand side of the labour market. It is a fact that the unemployed are predominantly low-skilled and that vacant jobs require high skills, and, in these times of crisis, we need to complement demand-side measures with supply-side instruments that go beyond the deregulation of labour markets, lowering of labour costs and provision of incentives for the unemployed to take poorly paid jobs. We should improve the skills of the low-skilled and unemployed by providing them with the necessary learning capacities;

| 26. | urges the Commission, Member States and regional and local authorities to promote better anticipation of future skills needs, develop better matching between skills and labour market needs and bridge the gap between the worlds of education and work. Especially at the lowest segments of the labour market where labour participation must be encouraged, in a flexible and non-bureaucratic manner. In the Netherlands, for example, the government, businesses, and education institutions signed the Technology Pact, which aims to improve the link between education and the labour market in the technology sector and thus reduce the shortage of technical personnel. The Technology Pact has been agreed on at national level, but largely consists of actions to be carried out through a regional and sectoral approach, making use of already existing structures, for example the different local centres of expertise ‘kenniswerkplaatsen’ on talent development, liveable cities and public health in Rotterdam; |
| --- | --- |

26.

urges the Commission, Member States and regional and local authorities to promote better anticipation of future skills needs, develop better matching between skills and labour market needs and bridge the gap between the worlds of education and work. Especially at the lowest segments of the labour market where labour participation must be encouraged, in a flexible and non-bureaucratic manner. In the Netherlands, for example, the government, businesses, and education institutions signed the Technology Pact, which aims to improve the link between education and the labour market in the technology sector and thus reduce the shortage of technical personnel. The Technology Pact has been agreed on at national level, but largely consists of actions to be carried out through a regional and sectoral approach, making use of already existing structures, for example the different local centres of expertise ‘kenniswerkplaatsen’ on talent development, liveable cities and public health in Rotterdam;

| 27. | stresses that it is important to make the most of all labour potential. For people on the margins of the labour market, support measures can be introduced that fall within the competences of national and/or subnational authorities; |
| --- | --- |

27.

stresses that it is important to make the most of all labour potential. For people on the margins of the labour market, support measures can be introduced that fall within the competences of national and/or subnational authorities;

| 28. | recommends adding (social) participation to the three existing pillars of the Commission’s approach put forward to enhance the active inclusion of people furthest from the labour market: sufficient income support, active integration, and quality services. Social participation and inclusion must be the keys for achieving our social ambitions, developing welfare states and keeping them strong. Citizens should be empowered to reach their full potential and use and further develop their set of skills to the maximum, with economic self-reliance being the objective; |
| --- | --- |

28.

recommends adding (social) participation to the three existing pillars of the Commission’s approach put forward to enhance the active inclusion of people furthest from the labour market: sufficient income support, active integration, and quality services. Social participation and inclusion must be the keys for achieving our social ambitions, developing welfare states and keeping them strong. Citizens should be empowered to reach their full potential and use and further develop their set of skills to the maximum, with economic self-reliance being the objective;

| 29. | seeks further clarification in the area of conditionality in welfare access. Conditionality may be regarded as acceptable if social transfers are in place to provide individuals with both support and incentives to re-enter employment, education or training; |
| --- | --- |

29.

seeks further clarification in the area of conditionality in welfare access. Conditionality may be regarded as acceptable if social transfers are in place to provide individuals with both support and incentives to re-enter employment, education or training;

| 30. | considering that it is estimated that around 56 million people in the EU above the age of 15 do not have a bank account, the CoR welcomes the Commission's proposal to give every individual in the European Union the right to a basic bank account; |
| --- | --- |

30.

considering that it is estimated that around 56 million people in the EU above the age of 15 do not have a bank account, the CoR welcomes the Commission's proposal to give every individual in the European Union the right to a basic bank account;

| 31. | welcomes the Commission's intention to explore the use of new financial instruments and in particular of social return on investment and social investment bonds to increase the leverage of public social investments and calls on the Commission to come forward with more detailed proposals on that matter by making EU procurement rules ‘Social Return on Investment-proof’. Supports in this context the proposed introduction of an EU savings account that could provide the EU with complementary financing to contribute to the Europe 2020 employment and growth objectives at local and regional level; |
| --- | --- |

31.

welcomes the Commission's intention to explore the use of new financial instruments and in particular of social return on investment and social investment bonds to increase the leverage of public social investments and calls on the Commission to come forward with more detailed proposals on that matter by making EU procurement rules ‘Social Return on Investment-proof’. Supports in this context the proposed introduction of an EU savings account that could provide the EU with complementary financing to contribute to the Europe 2020 employment and growth objectives at local and regional level;

| 32. | stresses that Member States, regions and local communities should make use of the diversity of their citizens. An inclusive culture in which it is safe to be unique and to connect with others through that diversity is a prerequisite for innovation; |
| --- | --- |

32.

stresses that Member States, regions and local communities should make use of the diversity of their citizens. An inclusive culture in which it is safe to be unique and to connect with others through that diversity is a prerequisite for innovation;

| 33. | notes that many local and regional authorities are already developing and implementing successful programmes to address the challenges mentioned in the SIP. Examples include one-stop shops (youth desks), regional Centres for Youth and Family, housing-led and preventative homeless strategies, social return on investment strategies, social impact bonds, talent houses, child friendly neighbourhoods and full engagement. Local and regional authority exchange of best practices should therefore be promoted. Partnership and collaboration between local authorities enable them to tap into a larger pool of resources and experiences while promoting widespread participation in development, with their partners from diverse sectors. We should take full account of these experiences in the building-up of the knowledge bank suggested by the SIP and in supporting these exchanges in the context of Programme for Social Change and Innovation; |
| --- | --- |

33.

notes that many local and regional authorities are already developing and implementing successful programmes to address the challenges mentioned in the SIP. Examples include one-stop shops (youth desks), regional Centres for Youth and Family, housing-led and preventative homeless strategies, social return on investment strategies, social impact bonds, talent houses, child friendly neighbourhoods and full engagement. Local and regional authority exchange of best practices should therefore be promoted. Partnership and collaboration between local authorities enable them to tap into a larger pool of resources and experiences while promoting widespread participation in development, with their partners from diverse sectors. We should take full account of these experiences in the building-up of the knowledge bank suggested by the SIP and in supporting these exchanges in the context of Programme for Social Change and Innovation;

| 34. | points out that both the European Integration Fund (INTI) and the ESF have funded integration programmes. However, too often, the source of funding has limited the scope of service provision. It should be stressed that, considering the ever-growing EU mobility, the next budget programme should dedicate funding to support for mobile EU citizens, amalgamating priorities from both funds and create a funding programme for all nationals, regardless of citizenship. These new funding budgets could be used to include EU citizens in language and orientation programmes, in close cooperation with other stakeholders such as NGOs and particularly with the private sector. The Commission must use its influence to urge some local and regional authorities in the sending countries to use the ESF and the European Regional Development Fund (ERDF) to invest heavily in the social and economic development of their populations; |
| --- | --- |

34.

points out that both the European Integration Fund (INTI) and the ESF have funded integration programmes. However, too often, the source of funding has limited the scope of service provision. It should be stressed that, considering the ever-growing EU mobility, the next budget programme should dedicate funding to support for mobile EU citizens, amalgamating priorities from both funds and create a funding programme for all nationals, regardless of citizenship. These new funding budgets could be used to include EU citizens in language and orientation programmes, in close cooperation with other stakeholders such as NGOs and particularly with the private sector. The Commission must use its influence to urge some local and regional authorities in the sending countries to use the ESF and the European Regional Development Fund (ERDF) to invest heavily in the social and economic development of their populations;

| 35. | notes that, although migration within and between Member States has provided one way for individuals to respond to the economic downturn, more comprehensive and long-term social investment in regions and municipalities, which are best placed to understand the specificities of their own regions and communities, may address the crisis in a more sustainable way by mitigating the pressures on individuals to leave their homes, families and communities in search of employment. Furthermore, the ability of individuals to migrate to other Member States in search of employment or educational opportunities, etc., may be compromised by inadequate language skills; renewed efforts may be needed to strengthen language teaching to support short-term migration until more long-term solutions are found. Additionally, this will further promote social inclusion; |
| --- | --- |

35.

notes that, although migration within and between Member States has provided one way for individuals to respond to the economic downturn, more comprehensive and long-term social investment in regions and municipalities, which are best placed to understand the specificities of their own regions and communities, may address the crisis in a more sustainable way by mitigating the pressures on individuals to leave their homes, families and communities in search of employment. Furthermore, the ability of individuals to migrate to other Member States in search of employment or educational opportunities, etc., may be compromised by inadequate language skills; renewed efforts may be needed to strengthen language teaching to support short-term migration until more long-term solutions are found. Additionally, this will further promote social inclusion;

| 36. | supports the Commission’s view on the local impact of demographic change and the ageing population, which is creating new demands on social infrastructures and the accessibility of public areas. The growing phenomenon of poverty in old age is creating a need for sustainable social security systems and services which must be accessible and affordable to all. The corrective model must be replaced with a preventative model, which enables people to enjoy longer periods of functional autonomy and relational integration. Special attention should be devoted to the promotion of active and healthy ageing among European people, making a shift from an institutional approach to a community-based approach; |
| --- | --- |

36.

supports the Commission’s view on the local impact of demographic change and the ageing population, which is creating new demands on social infrastructures and the accessibility of public areas. The growing phenomenon of poverty in old age is creating a need for sustainable social security systems and services which must be accessible and affordable to all. The corrective model must be replaced with a preventative model, which enables people to enjoy longer periods of functional autonomy and relational integration. Special attention should be devoted to the promotion of active and healthy ageing among European people, making a shift from an institutional approach to a community-based approach;

| 37. | regrets that the Commission Staff Working Document on Long-Term Care in Ageing Societies does not address the issue of poverty, social exclusion and decent incomes of older people which may lead in return to increased need for long-term care. The CoR also misses a more profound analysis on how structural funds can support investment in long-term care; |
| --- | --- |

37.

regrets that the Commission Staff Working Document on Long-Term Care in Ageing Societies does not address the issue of poverty, social exclusion and decent incomes of older people which may lead in return to increased need for long-term care. The CoR also misses a more profound analysis on how structural funds can support investment in long-term care;

| 38. | considers that the Social Investment Package should go together with an increased recognition of the role of social economy knowing that at EU level social economy enterprises represent 2 million enterprises (i.e. 10 % of all European businesses) and employ over 11 million paid employees (the equivalent of 6 % of the working population of the EU). Reiterates therefore its call for a Statute for a European Mutual Society which was also endorsed in March 2013 by the European Parliament; |
| --- | --- |

38.

considers that the Social Investment Package should go together with an increased recognition of the role of social economy knowing that at EU level social economy enterprises represent 2 million enterprises (i.e. 10 % of all European businesses) and employ over 11 million paid employees (the equivalent of 6 % of the working population of the EU). Reiterates therefore its call for a Statute for a European Mutual Society which was also endorsed in March 2013 by the European Parliament;

| 39. | stresses the importance of interprofessional cooperation between the health and social care sectors and between formal and informal networks in the community. Knowledge is needed about different types of neighbour support and the complementary roles of volunteers, professionals, and neighbours providing support. Professionals should identify more closely with the local neighbourhood, in which a cooperative and facilitating role may strengthen and mediate neighbour support and volunteer work. This new approach to governance, which is successful in some European cities, should be supported with instruments at the European level in order to disseminate best practices across Europe. A positive approach would be to implement systems which bring together information on the citizen (social and medical history) and access to information regarding the resources and services available (catalogues or portfolios of services and resources, the innovative technologies available, such as advanced telecare systems, remote monitoring etc.); |
| --- | --- |

39.

stresses the importance of interprofessional cooperation between the health and social care sectors and between formal and informal networks in the community. Knowledge is needed about different types of neighbour support and the complementary roles of volunteers, professionals, and neighbours providing support. Professionals should identify more closely with the local neighbourhood, in which a cooperative and facilitating role may strengthen and mediate neighbour support and volunteer work. This new approach to governance, which is successful in some European cities, should be supported with instruments at the European level in order to disseminate best practices across Europe. A positive approach would be to implement systems which bring together information on the citizen (social and medical history) and access to information regarding the resources and services available (catalogues or portfolios of services and resources, the innovative technologies available, such as advanced telecare systems, remote monitoring etc.);

| 40. | calls on the EU to consider the possibility, in agreement with the Member States, of setting out a European social housing framework as requested by the CoR in its opinion of October 2011 and by the European Parliament in its resolution of 11 June 2013. While social housing is not among the EU's explicit competence, many EU policies (competition policy, internal market, structural funds, energy efficiency policy, environmental norms...) directly impact on social housing. Therefore a coordination framework in needed in order to ensure consistency with fundamental rights and between EU policies which impact housing. In this context, the CoR recalls that according to the EU Treaty public authorities are free to determine how social housing is organised and which households are eligible. The CoR also believes that social housing is key to cohesion and should not be only limited the disadvantaged in order to promote a social mix; |
| --- | --- |

40.

calls on the EU to consider the possibility, in agreement with the Member States, of setting out a European social housing framework as requested by the CoR in its opinion of October 2011 and by the European Parliament in its resolution of 11 June 2013. While social housing is not among the EU's explicit competence, many EU policies (competition policy, internal market, structural funds, energy efficiency policy, environmental norms...) directly impact on social housing. Therefore a coordination framework in needed in order to ensure consistency with fundamental rights and between EU policies which impact housing. In this context, the CoR recalls that according to the EU Treaty public authorities are free to determine how social housing is organised and which households are eligible. The CoR also believes that social housing is key to cohesion and should not be only limited the disadvantaged in order to promote a social mix;

| 41. | reminds Member States and the Commission that spending on social housing helps meet urgent social needs as a basis for strategic social investment; it also helps in a sustainable way to provide local jobs that cannot be ‘off-shored’, to stabilise the economy by preventing property bubbles, to counter climate change and to combat energy poverty. The CoR furthermore underlines that social housing plays a key role in tackling homelessness and in delivering the housing-led and preventative homeless strategies called for by the Commission; |
| --- | --- |

41.

reminds Member States and the Commission that spending on social housing helps meet urgent social needs as a basis for strategic social investment; it also helps in a sustainable way to provide local jobs that cannot be ‘off-shored’, to stabilise the economy by preventing property bubbles, to counter climate change and to combat energy poverty. The CoR furthermore underlines that social housing plays a key role in tackling homelessness and in delivering the housing-led and preventative homeless strategies called for by the Commission;

| 42. | welcomes the inclusion of homelessness as a thematic priority in the SIP and the call for Member States to ‘confront homelessness through comprehensive strategies based on prevention, housing-led approaches and reviewing regulations and practices on eviction, taking into account the key findings of the guidance on confronting homelessness provided in this Package’. In this context, the CoR calls on the Commission to develop a concrete EU framework to support stakeholders and particularly relevant national, regional and local authorities to make progress on tackling homelessness, taking into account the Committee of the Regions' own-initiative opinion on the matter; |
| --- | --- |

42.

welcomes the inclusion of homelessness as a thematic priority in the SIP and the call for Member States to ‘confront homelessness through comprehensive strategies based on prevention, housing-led approaches and reviewing regulations and practices on eviction, taking into account the key findings of the guidance on confronting homelessness provided in this Package’. In this context, the CoR calls on the Commission to develop a concrete EU framework to support stakeholders and particularly relevant national, regional and local authorities to make progress on tackling homelessness, taking into account the Committee of the Regions' own-initiative opinion on the matter;

| 43. | stresses that, in order to be successful in achieving our social goals, we must reform our approaches so as to improve quality of outcomes for beneficiaries, and achieve effectiveness and efficiency. Social innovation in fighting poverty and social exclusion is needed and should be included in the Structural Funds regulations, but also have a prominent role in HORIZON 2020 and be effectively supported by the European Programme for Social Change and Innovation. To this end, the flagship initiatives of Europe 2020, particularly the European platform against poverty and exclusion, should provide a reference framework in order to better achieve these objectives; |
| --- | --- |

43.

stresses that, in order to be successful in achieving our social goals, we must reform our approaches so as to improve quality of outcomes for beneficiaries, and achieve effectiveness and efficiency. Social innovation in fighting poverty and social exclusion is needed and should be included in the Structural Funds regulations, but also have a prominent role in HORIZON 2020 and be effectively supported by the European Programme for Social Change and Innovation. To this end, the flagship initiatives of Europe 2020, particularly the European platform against poverty and exclusion, should provide a reference framework in order to better achieve these objectives;

| 44. | points out that contemporary societies rely on science and technology not only for economic growth, but also for social well-being and progress. However, the interaction between science/research and society/citizens is frequently insufficient and sometimes non-existent. Future European research funding must therefore pay attention not only to technological sciences, but also to social sciences and the humanities in order to develop practically relevant knowledge and research about problems and liveability in urban neighbourhoods and thinly populated areas and disseminate such practically relevant knowledge among those responsible for urban and spatial planning policy. In particular state-of-the-art evaluative research designs are recommended to build up systematic knowledge of the effectiveness of policy interventions, why they ‘work’ and for which social groups and in what circumstances; welcomes the initiatives that the Commission is undertaking to support social innovation and efforts to share information on innovation experiences; |
| --- | --- |

44.

points out that contemporary societies rely on science and technology not only for economic growth, but also for social well-being and progress. However, the interaction between science/research and society/citizens is frequently insufficient and sometimes non-existent. Future European research funding must therefore pay attention not only to technological sciences, but also to social sciences and the humanities in order to develop practically relevant knowledge and research about problems and liveability in urban neighbourhoods and thinly populated areas and disseminate such practically relevant knowledge among those responsible for urban and spatial planning policy. In particular state-of-the-art evaluative research designs are recommended to build up systematic knowledge of the effectiveness of policy interventions, why they ‘work’ and for which social groups and in what circumstances; welcomes the initiatives that the Commission is undertaking to support social innovation and efforts to share information on innovation experiences;

| 45. | draws attention to the fact that the EU's regional policy has been promoting sustainable urban development since 1989. Through its structural funds, regional policy invests in projects that promote good local governance, ensure a sustainable urban environment, foster social inclusion and equality, regenerate urban areas and boost economic growth and jobs. In light of the proximity of local and regional authorities to their citizens and their expertise in identifying local needs and aspirations, it should be stressed that the current funding structure should be more adaptable to local needs, enabling cities and urban areas to take greater responsibility and leadership in coordinating integrated approaches at the level of the city or metropolitan area. To support territorial cohesion and integrated area based approaches, ESF and ERDF coordination should be improved; |
| --- | --- |

45.

draws attention to the fact that the EU's regional policy has been promoting sustainable urban development since 1989. Through its structural funds, regional policy invests in projects that promote good local governance, ensure a sustainable urban environment, foster social inclusion and equality, regenerate urban areas and boost economic growth and jobs. In light of the proximity of local and regional authorities to their citizens and their expertise in identifying local needs and aspirations, it should be stressed that the current funding structure should be more adaptable to local needs, enabling cities and urban areas to take greater responsibility and leadership in coordinating integrated approaches at the level of the city or metropolitan area. To support territorial cohesion and integrated area based approaches, ESF and ERDF coordination should be improved;

| 46. | welcomes the proposal to earmark at least 20 % of ESF funding in each Member State to promote social inclusion and tackling poverty. The CoR would like further assurances in this area to ensure that funding is correctly managed and targeted to assist the most in need. This may involve earmarking funds at regional rather than central level in each Member State, on the basis of a set of factors determining the greater need for support (poverty indicators, per capita GDP, employment, education levels, immigration, etc.); |
| --- | --- |

46.

welcomes the proposal to earmark at least 20 % of ESF funding in each Member State to promote social inclusion and tackling poverty. The CoR would like further assurances in this area to ensure that funding is correctly managed and targeted to assist the most in need. This may involve earmarking funds at regional rather than central level in each Member State, on the basis of a set of factors determining the greater need for support (poverty indicators, per capita GDP, employment, education levels, immigration, etc.);

| 47. | calls for immediate implementation of the Youth Employment initiative (YEI) and the need to include in youth guarantee schemes young people up to the age of 30. Endorses the Commission's Youth Guarantee recommendation, aimed at early intervention for individuals at risk of being out of education, employment or training. Underlines the key role of local and regional authorities in delivering it. Expresses strong concerns about the lack of sufficient funding for the YEI over the entire next programming period (EUR 6 billion) and calls, as a matter of urgency, for a significant frontloading of the new decent YEI budget line in the first years of the Multiannual Financial Framework. The NUTS II eligibility should not only rely on the criterion of 25 % youth unemployment, but take into account significant deviation at the regional level from the average youth unemployment rate at national level; |
| --- | --- |

47.

calls for immediate implementation of the Youth Employment initiative (YEI) and the need to include in youth guarantee schemes young people up to the age of 30. Endorses the Commission's Youth Guarantee recommendation, aimed at early intervention for individuals at risk of being out of education, employment or training. Underlines the key role of local and regional authorities in delivering it. Expresses strong concerns about the lack of sufficient funding for the YEI over the entire next programming period (EUR 6 billion) and calls, as a matter of urgency, for a significant frontloading of the new decent YEI budget line in the first years of the Multiannual Financial Framework. The NUTS II eligibility should not only rely on the criterion of 25 % youth unemployment, but take into account significant deviation at the regional level from the average youth unemployment rate at national level;

| 48. | points out that ESF should therefore better address citizens' real needs by giving local and regional authorities greater flexibility to establish objectives at local level. Local and regional authorities should be involved in shaping ESF priorities and managing ESF funds. In terms of legislation, the regulation governing the future ESF should detail a greater role for local and regional authorities in strategic ESF governance. The CoR also asks for the introduction of an obligation on the part of ESF managing authorities to demonstrate that local and regional authorities have been involved in shaping the priorities of operational programmes and the subsequent strategic management of the ESF; |
| --- | --- |

48.

points out that ESF should therefore better address citizens' real needs by giving local and regional authorities greater flexibility to establish objectives at local level. Local and regional authorities should be involved in shaping ESF priorities and managing ESF funds. In terms of legislation, the regulation governing the future ESF should detail a greater role for local and regional authorities in strategic ESF governance. The CoR also asks for the introduction of an obligation on the part of ESF managing authorities to demonstrate that local and regional authorities have been involved in shaping the priorities of operational programmes and the subsequent strategic management of the ESF;

| 49. | more specifically, referring to its previous opinions related to the EU's urban agenda and its 2012 Copenhagen Summit, the CoR considers that there are a number of options that would strengthen the practical involvement of cities: operational programmes with a clear urban focus; city participation as Intermediary Bodies and in ESF boards, management committees and advisory groups; and ESF managing authorities working in partnership with cities in designing and delivering the programmes. It may be appropriate for some major cities to have their own operational programmes; |
| --- | --- |

49.

more specifically, referring to its previous opinions related to the EU's urban agenda and its 2012 Copenhagen Summit, the CoR considers that there are a number of options that would strengthen the practical involvement of cities: operational programmes with a clear urban focus; city participation as Intermediary Bodies and in ESF boards, management committees and advisory groups; and ESF managing authorities working in partnership with cities in designing and delivering the programmes. It may be appropriate for some major cities to have their own operational programmes;

| 50. | calls for the ESF to promote innovative service models and for the new legal framework to facilitate and finance the development of grassroots community-based services to support labour market measures; |
| --- | --- |

50.

calls for the ESF to promote innovative service models and for the new legal framework to facilitate and finance the development of grassroots community-based services to support labour market measures;

| 51. | notes that the budget for the EU's Common Agricultural Policy (CAP) is five times larger than the ESF budget. This is of course linked to the fact that the CAP is solely a common EU policy while the financing of social policy relies to a very large extent on national and sub-national budgets. However, this imbalance could also be interpreted by public opinion as a lack of priority granted to the EU's social policy. The CoR therefore insists that the renewed focus on EU social policies be accompanied by an increase in ESF resources; |
| --- | --- |

51.

notes that the budget for the EU's Common Agricultural Policy (CAP) is five times larger than the ESF budget. This is of course linked to the fact that the CAP is solely a common EU policy while the financing of social policy relies to a very large extent on national and sub-national budgets. However, this imbalance could also be interpreted by public opinion as a lack of priority granted to the EU's social policy. The CoR therefore insists that the renewed focus on EU social policies be accompanied by an increase in ESF resources;

| 52. | welcomes the Integrated Territorial Investment approach of the Commission within the new ESF period for consolidating social, economic and physical development. Given the major importance of cities for social, economic and territorial cohesion, the European support given must go far beyond the proposed minimum target of 5 %; |
| --- | --- |

52.

welcomes the Integrated Territorial Investment approach of the Commission within the new ESF period for consolidating social, economic and physical development. Given the major importance of cities for social, economic and territorial cohesion, the European support given must go far beyond the proposed minimum target of 5 %;

| 53. | notes that the strict EU regulations on public procurement and state aid should be better aligned with social policies, allowing the latter to be developed and implemented more effectively; In order to shape this alignment, the COR calls for the European Commission to present a proposal to improve the quality and accessibility of social services of general interest based on Article 14 TFEU; |
| --- | --- |

53.

notes that the strict EU regulations on public procurement and state aid should be better aligned with social policies, allowing the latter to be developed and implemented more effectively; In order to shape this alignment, the COR calls for the European Commission to present a proposal to improve the quality and accessibility of social services of general interest based on Article 14 TFEU;

| 54. | recommends that the document must be implemented in close synergy with the other Staff Working Documents of the Communication to ensure consistent and more effective implementation. The CoR encourages the Commission to take a holistic approach to this and to engage directly with local and regional authorities in this process; |
| --- | --- |

54.

recommends that the document must be implemented in close synergy with the other Staff Working Documents of the Communication to ensure consistent and more effective implementation. The CoR encourages the Commission to take a holistic approach to this and to engage directly with local and regional authorities in this process;

| 55. | calls on the Commission to develop a concrete implementation plan for the SIP. This should include mechanisms for monitoring, coordination, transnational exchange and mutual learning on thematic priorities such as youth unemployment, education, homelessness and child poverty and care for people with disabilities and dependent people. In the framework of the European Semester, local and regional authorities should be consulted on drawing up annual growth surveys and play a greater role in monitoring progress. The Member States should be pushed to improve the extent to which local and regional authorities are consulted, informed and involved in decision-making, since much social investment touches the very heart of the local and regional authorities. |
| --- | --- |

55.

calls on the Commission to develop a concrete implementation plan for the SIP. This should include mechanisms for monitoring, coordination, transnational exchange and mutual learning on thematic priorities such as youth unemployment, education, homelessness and child poverty and care for people with disabilities and dependent people. In the framework of the European Semester, local and regional authorities should be consulted on drawing up annual growth surveys and play a greater role in monitoring progress. The Member States should be pushed to improve the extent to which local and regional authorities are consulted, informed and involved in decision-making, since much social investment touches the very heart of the local and regional authorities.

Brussels, 9 October 2013.

The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO

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(1)  Resolution of 20 November 2012 on ‘The Social Investment Pact — as a response to the crisis’.

1

(2)  European Council conclusions, 13-14 December 2012, I. Economic Policy Pt. 2.

2

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| 5.12.2013 | EN | Official Journal of the European Union | C 356/68 |
| --- | --- | --- | --- |

5.12.2013

EN

Official Journal of the European Union

C 356/68

---

Opinion of the Committee of the Regions on ‘Entrepreneurship 2020 Action Plan’

2013/C 356/12

THE COMMITTEE OF THE REGIONS

| — | recognising the significance of the Action Plan, stresses the importance of coordinating action by authorities at supranational, national and above all regional and local level to successfully implement the objectives of the Plan; |
| --- | --- |

—

recognising the significance of the Action Plan, stresses the importance of coordinating action by authorities at supranational, national and above all regional and local level to successfully implement the objectives of the Plan;

| — | stresses that involvement of local and regional authorities and stakeholders in implementing the Action Plan is crucial, since local and regional authorities are the closest level of governance to SMEs and to business support providers, and since most SMEs are embedded in and operate within regional and local markets; |
| --- | --- |

—

stresses that involvement of local and regional authorities and stakeholders in implementing the Action Plan is crucial, since local and regional authorities are the closest level of governance to SMEs and to business support providers, and since most SMEs are embedded in and operate within regional and local markets;

| — | emphasises that the European Entrepreneurial Regions (EER) award, granted by the Committee of the Region since 2010, can serve as a European benchmark for the development and implementation of entrepreneurship-friendly policies and for tailored SME support and forward-thinking strategies; |
| --- | --- |

—

emphasises that the European Entrepreneurial Regions (EER) award, granted by the Committee of the Region since 2010, can serve as a European benchmark for the development and implementation of entrepreneurship-friendly policies and for tailored SME support and forward-thinking strategies;

| — | stresses that a more prominent role should be given to self-employment and business development, which should be perceived as a realistic and welcome alternative; highlights that it is important to further promote social entrepreneurship as a valuable alternative to traditional ways of doing business in both for-profit and non-profit forms; |
| --- | --- |

—

stresses that a more prominent role should be given to self-employment and business development, which should be perceived as a realistic and welcome alternative; highlights that it is important to further promote social entrepreneurship as a valuable alternative to traditional ways of doing business in both for-profit and non-profit forms;

| — | underlines that Europe should present entrepreneurship to young people as a viable and promising future career path, thus reigniting the entrepreneurial spirit; underlines that local and regional authorities have a mandate to support education while incorporating an entrepreneurial dimension. |
| --- | --- |

—

underlines that Europe should present entrepreneurship to young people as a viable and promising future career path, thus reigniting the entrepreneurial spirit; underlines that local and regional authorities have a mandate to support education while incorporating an entrepreneurial dimension.

| Rapporteur | Paweł ADAMOWICZ (PL/EPP), President of the City of Gdańsk |
| --- | --- |
| Reference document | Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the ENTREPRENEURSHIP 2020 ACTION PLAN — Reigniting the entrepreneurial spirit in Europe
  COM(2012) 795 final |

Rapporteur

Paweł ADAMOWICZ (PL/EPP), President of the City of Gdańsk

Reference document

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the ENTREPRENEURSHIP 2020 ACTION PLAN — Reigniting the entrepreneurial spirit in Europe

COM(2012) 795 final

I.   POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS

| 1. | welcomes the Commission's Communication Entrepreneurship 2020 Action Plan, aiming to foster a culture of entrepreneurship in Europe, provide better access to finance, deliver high quality business support services. develop role models and reach out to specific groups; |
| --- | --- |

1.

welcomes the Commission's Communication Entrepreneurship 2020 Action Plan, aiming to foster a culture of entrepreneurship in Europe, provide better access to finance, deliver high quality business support services. develop role models and reach out to specific groups;

| 2. | restates its full support for actions aimed at fostering entrepreneurship and dismantling the barriers to SME development, thus recognising their key role in making the European Union more competitive; |
| --- | --- |

2.

restates its full support for actions aimed at fostering entrepreneurship and dismantling the barriers to SME development, thus recognising their key role in making the European Union more competitive;

| 3. | stresses that all authorities at all levels should seek to streamline their authorisation and monitoring procedures as well as other administrative measures. They should work towards a simplified way of exchanging information, standardised terminology and operational flow systems, which enable information from other systems and databases to be retrieved automatically; |
| --- | --- |

3.

stresses that all authorities at all levels should seek to streamline their authorisation and monitoring procedures as well as other administrative measures. They should work towards a simplified way of exchanging information, standardised terminology and operational flow systems, which enable information from other systems and databases to be retrieved automatically;

| 4. | points out the importance of swift implementation of decisions already taken. Further theoretical discussion would contribute nothing to developing the entrepreneurial environment; |
| --- | --- |

4.

points out the importance of swift implementation of decisions already taken. Further theoretical discussion would contribute nothing to developing the entrepreneurial environment;

| 5. | stresses that the recent economic downturn, has been very difficult for European small and medium sized entrepreneurs, particularly in peripheral regions which have seen a significant increase in business failure rates; |
| --- | --- |

5.

stresses that the recent economic downturn, has been very difficult for European small and medium sized entrepreneurs, particularly in peripheral regions which have seen a significant increase in business failure rates;

| 6. | recognises the critical importance of an adequate entrepreneurial environment and a completed Single Market for Europe's economic recovery and growth and a higher level of social cohesion; |
| --- | --- |

6.

recognises the critical importance of an adequate entrepreneurial environment and a completed Single Market for Europe's economic recovery and growth and a higher level of social cohesion;

| 7. | stresses that the local and regional business environment is a critical factor for success: steps should be taken to develop innovation capacity and cultivate a mind-set conducive to open innovation, whose cornerstones include effective use of knowledge from different sources and motivational dialogue, collaboration and co-creativity; |
| --- | --- |

7.

stresses that the local and regional business environment is a critical factor for success: steps should be taken to develop innovation capacity and cultivate a mind-set conducive to open innovation, whose cornerstones include effective use of knowledge from different sources and motivational dialogue, collaboration and co-creativity;

| 8. | perceives the Action Plan as a necessary step in encouraging the creation of a supportive environment for entrepreneurs within the Single Market and thus contributing to economic recovery across the EU; |
| --- | --- |

8.

perceives the Action Plan as a necessary step in encouraging the creation of a supportive environment for entrepreneurs within the Single Market and thus contributing to economic recovery across the EU;

| 9. | supports the choice of priorities of the Action Plan as represented by its three pillars (namely developing entrepreneurial education and training, creating the right business environment and role models, and reaching out to specific groups) and welcomes the expected results of this Action Plan; |
| --- | --- |

9.

supports the choice of priorities of the Action Plan as represented by its three pillars (namely developing entrepreneurial education and training, creating the right business environment and role models, and reaching out to specific groups) and welcomes the expected results of this Action Plan;

| 10. | stresses that a more prominent role should be given to self-employment and business development, which should be perceived as a realistic and welcome alternative. They are an essential part of boosting European competitiveness, and therefore require integrated multilevel support; this implies that all levels of government take measures to drastically reduce red tape for the self-employed, improve their social protection and pension entitlements and reduce the tax pressure; |
| --- | --- |

10.

stresses that a more prominent role should be given to self-employment and business development, which should be perceived as a realistic and welcome alternative. They are an essential part of boosting European competitiveness, and therefore require integrated multilevel support; this implies that all levels of government take measures to drastically reduce red tape for the self-employed, improve their social protection and pension entitlements and reduce the tax pressure;

| 11. | recognises the underachievement of women in the enterprise sphere where only 30 % of entrepreneurs are female, and the significant impact of gender specific training and support to increase the number of female entrepreneurs, and calls for the creation of dedicated women’s business centres; |
| --- | --- |

11.

recognises the underachievement of women in the enterprise sphere where only 30 % of entrepreneurs are female, and the significant impact of gender specific training and support to increase the number of female entrepreneurs, and calls for the creation of dedicated women’s business centres;

| 12. | reiterates its request to the Commission, set out in its recent opinions on industrial policy (1) and regional state aid (2) to address ‘threshold effect’ issues associated with the definition of categories of enterprise and to review the definition of SMEs. In concrete terms, the Commission should enhance its powers of analysis and its support measures for businesses, by looking into the possibility of creating, as it has agreed for the agri-food industry, a new category of mid-sized enterprise somewhere between SMEs and large enterprises, employing between 250 and 750 workers and with a turnover of under EUR 200 million. Similarly, the Committee of the Regions calls for a discussion to take account of mid-cap enterprises (MCEs), employing between 250 and 5 000 workers, which have emerged from growth SMEs and which will make a major contribution to Europe's future wealth. These new categories could receive appropriate rates of aid, higher than those for large enterprises and lower than those for SMEs; |
| --- | --- |

12.

reiterates its request to the Commission, set out in its recent opinions on industrial policy (1) and regional state aid (2) to address ‘threshold effect’ issues associated with the definition of categories of enterprise and to review the definition of SMEs. In concrete terms, the Commission should enhance its powers of analysis and its support measures for businesses, by looking into the possibility of creating, as it has agreed for the agri-food industry, a new category of mid-sized enterprise somewhere between SMEs and large enterprises, employing between 250 and 750 workers and with a turnover of under EUR 200 million. Similarly, the Committee of the Regions calls for a discussion to take account of mid-cap enterprises (MCEs), employing between 250 and 5 000 workers, which have emerged from growth SMEs and which will make a major contribution to Europe's future wealth. These new categories could receive appropriate rates of aid, higher than those for large enterprises and lower than those for SMEs;

| 13. | emphasises that craftsmanship — a part of the SME sector, has played and still plays an important role in the growth of the European economy as a base for industrial development and its specific needs should be taken to a larger extent into account; this applies in particular to development and enhancement of vocational training centres; |
| --- | --- |

13.

emphasises that craftsmanship — a part of the SME sector, has played and still plays an important role in the growth of the European economy as a base for industrial development and its specific needs should be taken to a larger extent into account; this applies in particular to development and enhancement of vocational training centres;

| 14. | draws attention, also, to the specific role played by the enterprises that are evolving in the social and solidarity economy. These businesses contribute to economic activity and help to strengthen social ties in disadvantaged areas and fulfil missions of general interest which justify differential treatment, particularly where the setting of rates of public support is concerned; |
| --- | --- |

14.

draws attention, also, to the specific role played by the enterprises that are evolving in the social and solidarity economy. These businesses contribute to economic activity and help to strengthen social ties in disadvantaged areas and fulfil missions of general interest which justify differential treatment, particularly where the setting of rates of public support is concerned;

| 15. | points out that further de-industrialisation can have an impact on European employment and prosperity. The EU should therefore work towards structural reforms to boost its international competitiveness, especially in terms of its industrial capacity; |
| --- | --- |

15.

points out that further de-industrialisation can have an impact on European employment and prosperity. The EU should therefore work towards structural reforms to boost its international competitiveness, especially in terms of its industrial capacity;

| 16. | agrees that the role of entrepreneurs in society deserves greater recognition and should be significantly strengthened; |
| --- | --- |

16.

agrees that the role of entrepreneurs in society deserves greater recognition and should be significantly strengthened;

| 17. | welcomes the open and inclusive approach of the Action Plan targeting a broad group of stakeholders and setting out to engage with a large variety of established SMEs, nascent entrepreneurs and potential new entrepreneurs; |
| --- | --- |

17.

welcomes the open and inclusive approach of the Action Plan targeting a broad group of stakeholders and setting out to engage with a large variety of established SMEs, nascent entrepreneurs and potential new entrepreneurs;

| 18. | is committed to promoting a more entrepreneurial Europe and full implementation of the Entrepreneurship 2020 Action Plan and the Small Business Act (SBA) for Europe at local and regional level; |
| --- | --- |

18.

is committed to promoting a more entrepreneurial Europe and full implementation of the Entrepreneurship 2020 Action Plan and the Small Business Act (SBA) for Europe at local and regional level;

| 19. | is disappointed that the role of local and regional authorities has not been given the recognition it deserves in the Action Plan despite the fact that the local and regional authorities are given an indispensably significant role in realising all objectives set up within the 3 main pillars of the Action Plan; |
| --- | --- |

19.

is disappointed that the role of local and regional authorities has not been given the recognition it deserves in the Action Plan despite the fact that the local and regional authorities are given an indispensably significant role in realising all objectives set up within the 3 main pillars of the Action Plan;

| 20. | highlights the key role of local and regional authorities in the key areas of the Entrepreneurship 2020 Action Plan, i.e. education and training, provision of transparent administrative practices, creation of a supportive environment for entrepreneurs, and promotion of entrepreneurship; |
| --- | --- |

20.

highlights the key role of local and regional authorities in the key areas of the Entrepreneurship 2020 Action Plan, i.e. education and training, provision of transparent administrative practices, creation of a supportive environment for entrepreneurs, and promotion of entrepreneurship;

| 21. | emphasises that many important measures and initiatives in the areas of the Action Plan have been already taken by local and regional authorities in all Member States; |
| --- | --- |

21.

emphasises that many important measures and initiatives in the areas of the Action Plan have been already taken by local and regional authorities in all Member States;

| 22. | is disappointed that the role of local and regional authorities in implementing the Action Plan is not sufficiently taken into account, while the regional dimension is mentioned only as part of a horizontal network to support businesses; |
| --- | --- |

22.

is disappointed that the role of local and regional authorities in implementing the Action Plan is not sufficiently taken into account, while the regional dimension is mentioned only as part of a horizontal network to support businesses;

| 23. | stresses that involvement of local and regional authorities and stakeholders in implementing the Action Plan is crucial since the local and regional authorities are the closest level of governance to SMEs and to business support providers, and since most SMEs are embedded in and operate within regional and local markets; |
| --- | --- |

23.

stresses that involvement of local and regional authorities and stakeholders in implementing the Action Plan is crucial since the local and regional authorities are the closest level of governance to SMEs and to business support providers, and since most SMEs are embedded in and operate within regional and local markets;

| 24. | emphasises the central role of local and regional authorities in providing the organisational and political momentum that frees up synergies of cooperation among regionally-embedded actors such as chambers of commerce or crafts, professional organisations, technology centres, technology parks, business incubators, universities, cluster initiatives or others which are suitable partners in assisting SMEs, nascent entrepreneurs, high-growth start-ups and others in their projects; |
| --- | --- |

24.

emphasises the central role of local and regional authorities in providing the organisational and political momentum that frees up synergies of cooperation among regionally-embedded actors such as chambers of commerce or crafts, professional organisations, technology centres, technology parks, business incubators, universities, cluster initiatives or others which are suitable partners in assisting SMEs, nascent entrepreneurs, high-growth start-ups and others in their projects;

| 25. | emphasises that local and regional actors are responsible for shaping regional entrepreneurial strategies which can be supported more strongly than ever during the next EU financial perspective, namely from the Structural Funds; |
| --- | --- |

25.

emphasises that local and regional actors are responsible for shaping regional entrepreneurial strategies which can be supported more strongly than ever during the next EU financial perspective, namely from the Structural Funds;

| 26. | highlights that more public intervention and support are needed in the provision of public goods and services, information, expertise and finance for innovative SMEs and start-up businesses including management development and training particularly in financial planning, strategy and marketing for progressive entrepreneurs; |
| --- | --- |

26.

highlights that more public intervention and support are needed in the provision of public goods and services, information, expertise and finance for innovative SMEs and start-up businesses including management development and training particularly in financial planning, strategy and marketing for progressive entrepreneurs;

| 27. | considers that there needs to be an improvement in the approach and in the processes of many banks in evaluating entrepreneurial risk and in financing start-ups and SME’s; where public authorities continue to support banks this should be prioritised; |
| --- | --- |

27.

considers that there needs to be an improvement in the approach and in the processes of many banks in evaluating entrepreneurial risk and in financing start-ups and SME’s; where public authorities continue to support banks this should be prioritised;

| 28. | emphasises that the European Entrepreneurial Regions (EER) award, granted by the Committee of the Region since 2010, can serve as a European benchmark for the development and implementation of entrepreneurship-friendly policies and for tailored SME support and forward-thinking strategies. The EER can also support the development of local and regional ‘SBA partnerships’ for ‘entrepreneurial partnerships’, and as such help to implement the objectives of the Action Plan and the COSME programme; |
| --- | --- |

28.

emphasises that the European Entrepreneurial Regions (EER) award, granted by the Committee of the Region since 2010, can serve as a European benchmark for the development and implementation of entrepreneurship-friendly policies and for tailored SME support and forward-thinking strategies. The EER can also support the development of local and regional ‘SBA partnerships’ for ‘entrepreneurial partnerships’, and as such help to implement the objectives of the Action Plan and the COSME programme;

| 29. | acknowledging the critical role of SMEs as the main driver for job creation and economic growth in Europe (85 % of net new jobs in the EU between 2002 and 2010 created by SMEs), underlines the challenge for local and regional authorities in reaching out to SMEs, tailoring support for the many different types of SMEs — especially micro-enterprises — and providing first-class support measures; |
| --- | --- |

29.

acknowledging the critical role of SMEs as the main driver for job creation and economic growth in Europe (85 % of net new jobs in the EU between 2002 and 2010 created by SMEs), underlines the challenge for local and regional authorities in reaching out to SMEs, tailoring support for the many different types of SMEs — especially micro-enterprises — and providing first-class support measures;

| 30. | recognises that although local and regional authorities play a key role in removing barriers to entrepreneurship, the EU has a major part in the process by smoothing the functioning of the Single Market and improving the business environment; |
| --- | --- |

30.

recognises that although local and regional authorities play a key role in removing barriers to entrepreneurship, the EU has a major part in the process by smoothing the functioning of the Single Market and improving the business environment;

| 31. | recognising the significance of the Action Plan, stresses the importance of coordinating action by authorities at supranational, national and above all regional and local level to successfully implement the objectives of the Plan; |
| --- | --- |

31.

recognising the significance of the Action Plan, stresses the importance of coordinating action by authorities at supranational, national and above all regional and local level to successfully implement the objectives of the Plan;

| 32. | taking into account the horizontal, cross-cutting nature of projects to foster entrepreneurship, emphasises the need for enhanced cooperation between different Directorates-General of the European Commission; |
| --- | --- |

32.

taking into account the horizontal, cross-cutting nature of projects to foster entrepreneurship, emphasises the need for enhanced cooperation between different Directorates-General of the European Commission;

| 33. | taking the above into account, calls upon the European Commission to ensure full complementarity between different EU funding programmes for enterprises, especially between COSME, the Structural Funds and the Horizon 2020 programme in order to exploit synergies to the maximum and avoid inefficient overlaps; |
| --- | --- |

33.

taking the above into account, calls upon the European Commission to ensure full complementarity between different EU funding programmes for enterprises, especially between COSME, the Structural Funds and the Horizon 2020 programme in order to exploit synergies to the maximum and avoid inefficient overlaps;

| 34. | stresses that potential duplication of efforts could prove to be ineffective and inefficient and therefore calls for streamlining and coordination between policy measures implemented at different governance levels; |
| --- | --- |

34.

stresses that potential duplication of efforts could prove to be ineffective and inefficient and therefore calls for streamlining and coordination between policy measures implemented at different governance levels;

| 35. | taking into account the significance of the problem, demands more detailed information on specific funding allocated for implementation of the various proposed measures; |
| --- | --- |

35.

taking into account the significance of the problem, demands more detailed information on specific funding allocated for implementation of the various proposed measures;

| 36. | is disappointed that the Communication does not take into account the specificity of the diverse entrepreneurial cultures and ecosystems present in European regions, with major differences especially between the ‘old’ and ‘new’ Member States, metropolitan and non-metropolitan regions as well as central and peripheral regions; |
| --- | --- |

36.

is disappointed that the Communication does not take into account the specificity of the diverse entrepreneurial cultures and ecosystems present in European regions, with major differences especially between the ‘old’ and ‘new’ Member States, metropolitan and non-metropolitan regions as well as central and peripheral regions;

| 37. | invites local and regional authorities to increase interest in promoting business dynamics and stimulate sustainable growth through innovative companies in their regions; |
| --- | --- |

37.

invites local and regional authorities to increase interest in promoting business dynamics and stimulate sustainable growth through innovative companies in their regions;

| 38. | highlights measures to implement entrepreneurial discovery, which is considered one of the cornerstones underlying use of the Structural Funds and smart specialisation; |
| --- | --- |

38.

highlights measures to implement entrepreneurial discovery, which is considered one of the cornerstones underlying use of the Structural Funds and smart specialisation;

| 39. | calls on local and regional authorities to develop their Operational Programmes in such a way as to anticipate tailored measures to promote the objectives of the Action Plan and ensure that diversity and gender equality are reflected in Structural Fund Partnerships; |
| --- | --- |

39.

calls on local and regional authorities to develop their Operational Programmes in such a way as to anticipate tailored measures to promote the objectives of the Action Plan and ensure that diversity and gender equality are reflected in Structural Fund Partnerships;

| 40. | stresses that the Committee of the Regions' European Entrepreneurial Region (EER) award label is a good example, demonstrating that regions can develop forward-looking strategies with a specific focus on entrepreneurship and tailored SME support in order to better meet the common and region-specific challenges they face; |
| --- | --- |

40.

stresses that the Committee of the Regions' European Entrepreneurial Region (EER) award label is a good example, demonstrating that regions can develop forward-looking strategies with a specific focus on entrepreneurship and tailored SME support in order to better meet the common and region-specific challenges they face;

| 41. | underlines that the award-winning EER regions (2011-2013) have all initiated interesting new measures or extended existing ones to shape their regional economic policy making; |
| --- | --- |

41.

underlines that the award-winning EER regions (2011-2013) have all initiated interesting new measures or extended existing ones to shape their regional economic policy making;

| 42. | calls for the development of the ‘EER network’, using the European Commission's flagship programme COSME (2014-2020) as one of the appropriate channels; |
| --- | --- |

42.

calls for the development of the ‘EER network’, using the European Commission's flagship programme COSME (2014-2020) as one of the appropriate channels;

| 43. | calls for implementation of the objectives outlined in COSME (Programme for the Competitiveness of Enterprises and SMEs), which is intended to facilitate access to finance for SMEs, create an environment favourable to business creation and growth, encourage an entrepreneurial culture in Europe, increase the sustainable competitiveness of EU companies, help small businesses operate outside their home countries and improve their access to markets; |
| --- | --- |

43.

calls for implementation of the objectives outlined in COSME (Programme for the Competitiveness of Enterprises and SMEs), which is intended to facilitate access to finance for SMEs, create an environment favourable to business creation and growth, encourage an entrepreneurial culture in Europe, increase the sustainable competitiveness of EU companies, help small businesses operate outside their home countries and improve their access to markets;

| 44. | welcomes the European Commission's intention to simplify management of the COSME programme compared to its predecessors such as the CIP (2007-2013) in order to reduce administrative costs and to focus instead on providing better support measures for businesses; |
| --- | --- |

44.

welcomes the European Commission's intention to simplify management of the COSME programme compared to its predecessors such as the CIP (2007-2013) in order to reduce administrative costs and to focus instead on providing better support measures for businesses;

| 45. | demands that the Committee of the Regions be invited to future COSME Management Committee meetings; |
| --- | --- |

45.

demands that the Committee of the Regions be invited to future COSME Management Committee meetings;

| 46. | stresses that the Action Plan should focus on the general policy framework and is disappointed that the entrepreneurial dilemma seems to be perceived by the European Commission mainly as a quantitative challenge (increasing the number of enterprises); |
| --- | --- |

46.

stresses that the Action Plan should focus on the general policy framework and is disappointed that the entrepreneurial dilemma seems to be perceived by the European Commission mainly as a quantitative challenge (increasing the number of enterprises);

| 47. | highlights measures that significantly increase start-up activities linked to universities and other educational institutions. A key tool is modelling of proven examples of excellence in a way that can be replicated across the EU; |
| --- | --- |

47.

highlights measures that significantly increase start-up activities linked to universities and other educational institutions. A key tool is modelling of proven examples of excellence in a way that can be replicated across the EU;

| 48. | stresses that innovative and competitive enterprises are key to economic growth, moreover there is a need to particularly encourage a greater aspiration for growth to global markets and to be globally competitive. If lagging regions are to catch up (converge), and others are to maintain international competitiveness, encouraging the growth of efficient companies is indispensable; |
| --- | --- |

48.

stresses that innovative and competitive enterprises are key to economic growth, moreover there is a need to particularly encourage a greater aspiration for growth to global markets and to be globally competitive. If lagging regions are to catch up (converge), and others are to maintain international competitiveness, encouraging the growth of efficient companies is indispensable;

| 49. | is concerned that due to demographic change, many family entrepreneurs will reach the age of retirement on the coming years but that they cannot always find a successor who could take over the company, which can put the future of the company and the jobs at risk; |
| --- | --- |

49.

is concerned that due to demographic change, many family entrepreneurs will reach the age of retirement on the coming years but that they cannot always find a successor who could take over the company, which can put the future of the company and the jobs at risk;

| 50. | recommends improving the language skills both of entrepreneurs and of pupils and students, in order to make it easier for enterprises to internationalise; as well as expanding the knowledge referring to the possibilities of the common market of the European Union, and of the global market environment; |
| --- | --- |

50.

recommends improving the language skills both of entrepreneurs and of pupils and students, in order to make it easier for enterprises to internationalise; as well as expanding the knowledge referring to the possibilities of the common market of the European Union, and of the global market environment;

| 51. | recalls that EU funding should also be used to help adopt the master-apprentice model in entrepreneurship. Transfer of knowledge between the generations creates significant added value, because older workers can pass on ways of thinking and know-how, while younger workers offer fresh ideas and enthusiasm. Thus, the master-apprentice model works in both directions (3); |
| --- | --- |

51.

recalls that EU funding should also be used to help adopt the master-apprentice model in entrepreneurship. Transfer of knowledge between the generations creates significant added value, because older workers can pass on ways of thinking and know-how, while younger workers offer fresh ideas and enthusiasm. Thus, the master-apprentice model works in both directions (3);

| 52. | stresses that local and regional business support providers should step up efforts so that SMEs can benefit from full utilisation of the potential of the EU's Single Market; in this respect, stresses that the Enterprise Europe Network's activities should be continued; |
| --- | --- |

52.

stresses that local and regional business support providers should step up efforts so that SMEs can benefit from full utilisation of the potential of the EU's Single Market; in this respect, stresses that the Enterprise Europe Network's activities should be continued;

| 53. | stresses that other regional actors such as business support providers, universities, technology transfer centres, clusters etc. should reshape their engagement in the regional development setting, in order to identify the best possible cooperation patterns allowing their regional businesses to receive professional and comprehensive support to conquer new markets; |
| --- | --- |

53.

stresses that other regional actors such as business support providers, universities, technology transfer centres, clusters etc. should reshape their engagement in the regional development setting, in order to identify the best possible cooperation patterns allowing their regional businesses to receive professional and comprehensive support to conquer new markets;

| 54. | agrees that regardless of strong cooperation and partnerships, EU regions must be able to define their own growth potential and to trigger innovation both in high and low technology sectors, developing for instance smart specialisation strategies in line with region-region specific preconditions; |
| --- | --- |

54.

agrees that regardless of strong cooperation and partnerships, EU regions must be able to define their own growth potential and to trigger innovation both in high and low technology sectors, developing for instance smart specialisation strategies in line with region-region specific preconditions;

| 55. | recognises that for some European regions key enabling technologies (advanced materials, nanotechnology, micro- and nano-electronics, biotechnology and photonics) could be of the utmost importance as drivers of growth and new jobs. These sectors are part of a shift to a low carbon, knowledge-based economy. Entrepreneurs active in these technologies could contribute significantly to meeting today's societal challenges and modernising the EU's industry; |
| --- | --- |

55.

recognises that for some European regions key enabling technologies (advanced materials, nanotechnology, micro- and nano-electronics, biotechnology and photonics) could be of the utmost importance as drivers of growth and new jobs. These sectors are part of a shift to a low carbon, knowledge-based economy. Entrepreneurs active in these technologies could contribute significantly to meeting today's societal challenges and modernising the EU's industry;

| 56. | stresses the importance, alongside conventional entrepreneurship, of accelerating measures to significantly increase academic entrepreneurship among PhDs and PhD students in all Member States; |
| --- | --- |

56.

stresses the importance, alongside conventional entrepreneurship, of accelerating measures to significantly increase academic entrepreneurship among PhDs and PhD students in all Member States;

| 57. | stresses that the EU has supporting competences in the areas covered by the Action Plan, subject to the subsidiarity principle. Underlines that the Action Plan provides a voluntary scheme for regional and local authorities; |
| --- | --- |

57.

stresses that the EU has supporting competences in the areas covered by the Action Plan, subject to the subsidiarity principle. Underlines that the Action Plan provides a voluntary scheme for regional and local authorities;

| 58. | recognises that the proposed actions specifically target policy failures and market failures such as information asymmetries which can only be tackled at EU level and thus are in line with the Lisbon Treaty; |
| --- | --- |

58.

recognises that the proposed actions specifically target policy failures and market failures such as information asymmetries which can only be tackled at EU level and thus are in line with the Lisbon Treaty;

| 59. | acknowledges that the Action Plan is in line with the proportionality principle. The size and scale of the intended action is expected to generate positive impacts through crowding-in and multiplier effects targeting specific market failures; |
| --- | --- |

59.

acknowledges that the Action Plan is in line with the proportionality principle. The size and scale of the intended action is expected to generate positive impacts through crowding-in and multiplier effects targeting specific market failures;

Promoting entrepreneurship education and training

| 60. | underlines that Europe should present entrepreneurship to young people as a viable and promising future career path, thus reigniting the entrepreneurial spirit; |
| --- | --- |

60.

underlines that Europe should present entrepreneurship to young people as a viable and promising future career path, thus reigniting the entrepreneurial spirit;

| 61. | underlines that local and regional authorities have a mandate to support education while incorporating an entrepreneurial dimension; |
| --- | --- |

61.

underlines that local and regional authorities have a mandate to support education while incorporating an entrepreneurial dimension;

| 62. | stresses that the capacity of local and regional authorities to promote entrepreneurship should be recognised; |
| --- | --- |

62.

stresses that the capacity of local and regional authorities to promote entrepreneurship should be recognised;

| 63. | calls on local and regional training organisations and education systems to provide more tailored formal and non-formal learning opportunities in entrepreneurial and business development training for specific target audiences; |
| --- | --- |

63.

calls on local and regional training organisations and education systems to provide more tailored formal and non-formal learning opportunities in entrepreneurial and business development training for specific target audiences;

| 64. | stresses the significance of the European framework of key competences, within which entrepreneurship education has been identified as very important, alongside mathematics, problem solving techniques, communication, languages and other competences; |
| --- | --- |

64.

stresses the significance of the European framework of key competences, within which entrepreneurship education has been identified as very important, alongside mathematics, problem solving techniques, communication, languages and other competences;

| 65. | urges the Commission to encourage entrepreneurial learning in non-specialist schools and tertiary education with an emphasis on acquisition of practical skills and informal learning between entrepreneurs and pupils and students; |
| --- | --- |

65.

urges the Commission to encourage entrepreneurial learning in non-specialist schools and tertiary education with an emphasis on acquisition of practical skills and informal learning between entrepreneurs and pupils and students;

| 66. | calls upon local and regional authorities to introduce or enhance the quality of entrepreneurial education and training programmes currently offered; |
| --- | --- |

66.

calls upon local and regional authorities to introduce or enhance the quality of entrepreneurial education and training programmes currently offered;

| 67. | stresses the importance of entrepreneurial awareness and skills enhancement programmes from as early as primary education in order to nurture the innovative potential and experimental nature of the young generation; |
| --- | --- |

67.

stresses the importance of entrepreneurial awareness and skills enhancement programmes from as early as primary education in order to nurture the innovative potential and experimental nature of the young generation;

| 68. | considers that the local and regional authorities are able to launch such educational programs, Which would enhance the youth’s entrepreneurial spirit in region specific economic sectors, contributing to the development of the given economic field and of the whole region, as well; |
| --- | --- |

68.

considers that the local and regional authorities are able to launch such educational programs, Which would enhance the youth’s entrepreneurial spirit in region specific economic sectors, contributing to the development of the given economic field and of the whole region, as well;

| 69. | stresses the importance of dialogue among nascent and would-be entrepreneurs, such as that promoted through the ‘Erasmus for Young Entrepreneurs’ European programme; |
| --- | --- |

69.

stresses the importance of dialogue among nascent and would-be entrepreneurs, such as that promoted through the ‘Erasmus for Young Entrepreneurs’ European programme;

| 70. | underlines that some EER-labelled regions have engaged seriously in this programme and results for their entrepreneurs have been very encouraging. The programme offers future entrepreneurs training in established SMEs, with experienced entrepreneurs benefiting at the same time from young, motivated (future) entrepreneurs providing a fresh look at some of their daily challenges (production or existing processes). Thus, there is a great potential to increase the innovation capacity of the companies involved in such exchanges; |
| --- | --- |

70.

underlines that some EER-labelled regions have engaged seriously in this programme and results for their entrepreneurs have been very encouraging. The programme offers future entrepreneurs training in established SMEs, with experienced entrepreneurs benefiting at the same time from young, motivated (future) entrepreneurs providing a fresh look at some of their daily challenges (production or existing processes). Thus, there is a great potential to increase the innovation capacity of the companies involved in such exchanges;

| 71. | highlights that it is important to further promote social entrepreneurship as a valuable alternative to traditional ways of doing business in both for-profit and non-profit forms. Social entrepreneurship can be a very rewarding business activity especially given the persisting financial and economic crisis calls for more sustainable entrepreneurial activity; |
| --- | --- |

71.

highlights that it is important to further promote social entrepreneurship as a valuable alternative to traditional ways of doing business in both for-profit and non-profit forms. Social entrepreneurship can be a very rewarding business activity especially given the persisting financial and economic crisis calls for more sustainable entrepreneurial activity;

Creating an environment where entrepreneurs can flourish and grow

| 72. | recognises that awareness should be increased among businesses and future entrepreneurs to seize the opportunities offered by the Single Market; |
| --- | --- |

72.

recognises that awareness should be increased among businesses and future entrepreneurs to seize the opportunities offered by the Single Market;

| 73. | encourages the Commission and the Member States to efficiently dismantle the still existing barriers to entrepreneurship as indicated in the second pillar of the Action Plan, moreover considers that social security systems should not discriminate against entrepreneurs and the self-employed; |
| --- | --- |

73.

encourages the Commission and the Member States to efficiently dismantle the still existing barriers to entrepreneurship as indicated in the second pillar of the Action Plan, moreover considers that social security systems should not discriminate against entrepreneurs and the self-employed;

| 74. | notes that, to create a business-friendly environment, the public authorities must invest in high quality infrastructure in the area of transport and digital technology, and that they will need support from the European Union if they are to achieve this; |
| --- | --- |

74.

notes that, to create a business-friendly environment, the public authorities must invest in high quality infrastructure in the area of transport and digital technology, and that they will need support from the European Union if they are to achieve this;

| 75. | acknowledges in particular that during the coming years, several hundred thousand older company owners in the EU will either have to transfer their businesses to the next generation or close down; business succession strategies will therefore have to be implemented and awareness of the problem should be raised. In this regard, the Committee of the Regions reiterates the call it made in its Opinion on the Regional State Aid Guidelines (4), for company takeovers to be made eligible by the RSA guidelines; |
| --- | --- |

75.

acknowledges in particular that during the coming years, several hundred thousand older company owners in the EU will either have to transfer their businesses to the next generation or close down; business succession strategies will therefore have to be implemented and awareness of the problem should be raised. In this regard, the Committee of the Regions reiterates the call it made in its Opinion on the Regional State Aid Guidelines (4), for company takeovers to be made eligible by the RSA guidelines;

| 76. | agrees that bankruptcy procedures should be simplified in order to give entrepreneurs a second chance; |
| --- | --- |

76.

agrees that bankruptcy procedures should be simplified in order to give entrepreneurs a second chance;

Promoting role models and entrepreneurship among specific target groups

| 77. | thinks it important to make continuous efforts to dismantle the red tape required for starting up, expanding or establishing companies; |
| --- | --- |

77.

thinks it important to make continuous efforts to dismantle the red tape required for starting up, expanding or establishing companies;

| 78. | supports the idea of fostering entrepreneurship among specific target groups taking into account the specific challenges faced; |
| --- | --- |

78.

supports the idea of fostering entrepreneurship among specific target groups taking into account the specific challenges faced;

| 79. | stresses the crucial role of older entrepreneurs in the EU economy and underlines that given the observed demographic processes their role is likely to increase; |
| --- | --- |

79.

stresses the crucial role of older entrepreneurs in the EU economy and underlines that given the observed demographic processes their role is likely to increase;

| 80. | appreciates the fact that the Action Plan addresses the role of seniors as a valuable resource for entrepreneurship in the EU and as such enables potential synergies with social policies aiming to increase economic activity among the 50+ generation; |
| --- | --- |

80.

appreciates the fact that the Action Plan addresses the role of seniors as a valuable resource for entrepreneurship in the EU and as such enables potential synergies with social policies aiming to increase economic activity among the 50+ generation;

| 81. | underlines that, given their long working experience, older employees are a rich source of knowledge and can be crucial in helping a new generation of businessmen to set up or consolidate companies; |
| --- | --- |

81.

underlines that, given their long working experience, older employees are a rich source of knowledge and can be crucial in helping a new generation of businessmen to set up or consolidate companies;

| 82. | agrees that business support providers at local and regional level must further identify working models allowing older workers to remain active, based on their own will and helping increase the employability of both students and nascent entrepreneurs (through mentoring programmes); |
| --- | --- |

82.

agrees that business support providers at local and regional level must further identify working models allowing older workers to remain active, based on their own will and helping increase the employability of both students and nascent entrepreneurs (through mentoring programmes);

| 83. | in this respect, recommends stimulating an ‘active ageing attitude’ in societies. Active ageing benefits not only those directly concerned, but can also be a source of growth and innovation. At local and regional level, decision-makers could further explore and promote the ‘golden opportunities’ offered by the silver economy, which will depend closely on changing attitudes to new age-aware policies; |
| --- | --- |

83.

in this respect, recommends stimulating an ‘active ageing attitude’ in societies. Active ageing benefits not only those directly concerned, but can also be a source of growth and innovation. At local and regional level, decision-makers could further explore and promote the ‘golden opportunities’ offered by the silver economy, which will depend closely on changing attitudes to new age-aware policies;

| 84. | underlines that some European regions have already targeted specific groups in order to increase their entrepreneurship potential, and encourages other to make use of the knowledge gained; a good example here is the Principi Attivi programme implemented by Puglia Region; |
| --- | --- |

84.

underlines that some European regions have already targeted specific groups in order to increase their entrepreneurship potential, and encourages other to make use of the knowledge gained; a good example here is the Principi Attivi programme implemented by Puglia Region;

Increasing Europe's innovation potential through entrepreneurship

| 85. | agrees that the green economy offers considerable innovation potential, and that this could be more effectively targeted by European SMEs; |
| --- | --- |

85.

agrees that the green economy offers considerable innovation potential, and that this could be more effectively targeted by European SMEs;

| 86. | refers to the important role business incubators, cluster initiatives and clusters can play in promoting the smoother transfer of scientific know-how and dissemination of viable knowledge to the real economy, and strengthening the competitive base and advocacy power of regional economies; encourages commercialisation of scientific knowledge; |
| --- | --- |

86.

refers to the important role business incubators, cluster initiatives and clusters can play in promoting the smoother transfer of scientific know-how and dissemination of viable knowledge to the real economy, and strengthening the competitive base and advocacy power of regional economies; encourages commercialisation of scientific knowledge;

| 87. | underlines that there are promising examples in many of the EER-labelled regions where clustering initiatives and incubation centres for new entrepreneurs have resulted in new products and services with growth potential. Examples of such successes are the Eco World Styria (EER 2013 region), the Golm Science Park in Brandenburg (EER 2011 region) or the Science Park with incubator in the Murcia Region (EER 2011 region); |
| --- | --- |

87.

underlines that there are promising examples in many of the EER-labelled regions where clustering initiatives and incubation centres for new entrepreneurs have resulted in new products and services with growth potential. Examples of such successes are the Eco World Styria (EER 2013 region), the Golm Science Park in Brandenburg (EER 2011 region) or the Science Park with incubator in the Murcia Region (EER 2011 region);

| 88. | welcomes the strengthening of the Enterprise Europe Network and the increased budget attached to the ‘Improving access to markets’ specific objective, which is supported by the Network; |
| --- | --- |

88.

welcomes the strengthening of the Enterprise Europe Network and the increased budget attached to the ‘Improving access to markets’ specific objective, which is supported by the Network;

| 89. | calls for all relevant regional actors to be represented in the Enterprise Europe Network in order to reach out to all different types of SMEs and to build stronger relationships. |
| --- | --- |

89.

calls for all relevant regional actors to be represented in the Enterprise Europe Network in order to reach out to all different types of SMEs and to build stronger relationships.

Brussels, 9 October 2013.

The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO

---

(1)  CoR opinion of 11 April 2013, CDR2255-2012_00_00_TRA_AC, point 18.

1

(2)  CoR opinion of 31 January 2013, CDR2232-2012_00_00_TRA_AC, point 45.

2

(3)  CdR 14/2012 fin, ECOS-V-025, point 64

3

(4)  CoR Opinion of 31 January 2013, CDR2232-2012_00_00 TRA_AC, point 49

4

---

| 5.12.2013 | EN | Official Journal of the European Union | C 356/75 |
| --- | --- | --- | --- |

5.12.2013

EN

Official Journal of the European Union

C 356/75

---

Opinion of the Committee of the Regions — Green Paper on the long-term financing of the European economy

2013/C 356/13

THE COMMITTEE OF THE REGIONS

| — | welcomes the Commission's timely Green Paper on the long-term financing of the European economy, and welcomes the move to launch a wide-ranging debate in the form of a public consultation on how the supply of long-term financing can be improved and the system of financing long-term investments in Europe strengthened and diversified with a view to the EU's future development; |
| --- | --- |

—

welcomes the Commission's timely Green Paper on the long-term financing of the European economy, and welcomes the move to launch a wide-ranging debate in the form of a public consultation on how the supply of long-term financing can be improved and the system of financing long-term investments in Europe strengthened and diversified with a view to the EU's future development;

| — | shares the Commission's view that the European financial sector has been less successful since the financial crisis at channelling savings into long-term investments; the financial crisis and the present weak macroeconomic environment in particular have created a climate of uncertainty and risk aversion especially felt by cash-strapped Member States; |
| --- | --- |

—

shares the Commission's view that the European financial sector has been less successful since the financial crisis at channelling savings into long-term investments; the financial crisis and the present weak macroeconomic environment in particular have created a climate of uncertainty and risk aversion especially felt by cash-strapped Member States;

| — | is also concerned that specific local and regional-level circumstances are not given enough attention in provision of long-term financing and in measures typically taken to promote long-term investment; |
| --- | --- |

—

is also concerned that specific local and regional-level circumstances are not given enough attention in provision of long-term financing and in measures typically taken to promote long-term investment;

| — | has reservations about EU moves to restrict competition and the leeway of governments in some areas of investment that are especially important to local and regional authorities. The coordination process and authorisation procedures are too time-consuming and complicated, which makes Europe less competitive internationally and increases the appeal of other parts of the world to investors. |
| --- | --- |

—

has reservations about EU moves to restrict competition and the leeway of governments in some areas of investment that are especially important to local and regional authorities. The coordination process and authorisation procedures are too time-consuming and complicated, which makes Europe less competitive internationally and increases the appeal of other parts of the world to investors.

| Rapporteur | Uno SILBERG (EE/EA), Member of Kose Rural Municipality Council |
| --- | --- |
| Reference document | Commission Green Paper on the long-term financing of the European economy
  COM(2013) 150 final |

Rapporteur

Uno SILBERG (EE/EA), Member of Kose Rural Municipality Council

Reference document

Commission Green Paper on the long-term financing of the European economy

COM(2013) 150 final

I.   GENERAL COMMENTS

THE COMMITTEE OF THE REGIONS

Smart and inclusive growth

| 1. | welcomes the Commission's timely Green Paper on the long-term financing of the European economy, and welcomes the move to launch a wide-ranging debate in the form of a public consultation on how the supply of long-term financing can be improved and the system of financing long-term investments in Europe strengthened and diversified with a view to the EU's future development; |
| --- | --- |

1.

welcomes the Commission's timely Green Paper on the long-term financing of the European economy, and welcomes the move to launch a wide-ranging debate in the form of a public consultation on how the supply of long-term financing can be improved and the system of financing long-term investments in Europe strengthened and diversified with a view to the EU's future development;

| 2. | shares the Commission's view that the European financial sector has been less successful since the financial crisis at channelling savings into long-term investments; the financial crisis and the present weak macroeconomic environment in particular have created a climate of uncertainty and risk aversion especially felt by cash-strapped Member States; |
| --- | --- |

2.

shares the Commission's view that the European financial sector has been less successful since the financial crisis at channelling savings into long-term investments; the financial crisis and the present weak macroeconomic environment in particular have created a climate of uncertainty and risk aversion especially felt by cash-strapped Member States;

| 3. | supports the Commission's view that Europe faces the pressing task of returning the EU to the path of smart, sustainable and inclusive growth. At the same time, the Committee believes that more heed should be given to specific local and regional circumstances as well as the challenges faced by SMEs; |
| --- | --- |

3.

supports the Commission's view that Europe faces the pressing task of returning the EU to the path of smart, sustainable and inclusive growth. At the same time, the Committee believes that more heed should be given to specific local and regional circumstances as well as the challenges faced by SMEs;

| 4. | emphasises that far-reaching, all-round cooperation between the EU institutions, the Member States, cities and regions, local and regional authorities, and interest groups, based first and foremost on subsidiarity and proportionality, will be pivotal to overcoming the economic crisis, facing new challenges and setting and achieving common goals; |
| --- | --- |

4.

emphasises that far-reaching, all-round cooperation between the EU institutions, the Member States, cities and regions, local and regional authorities, and interest groups, based first and foremost on subsidiarity and proportionality, will be pivotal to overcoming the economic crisis, facing new challenges and setting and achieving common goals;

| 5. | believes that increasing the average value added by businesses from the productive economy in job-rich sectors could be an effective way to boost economic growth. Strengthening such businesses with the help of innovation and simplified conditions for access to capital could have a profound impact on the economy as a whole; |
| --- | --- |

5.

believes that increasing the average value added by businesses from the productive economy in job-rich sectors could be an effective way to boost economic growth. Strengthening such businesses with the help of innovation and simplified conditions for access to capital could have a profound impact on the economy as a whole;

| 6. | notes that the knowledge-based assets of the world's biggest companies (listed on the S&P 500 index) already make up 80 % of their company value. Drivers of growth are mainly to be found in sectors of the economy with the greatest potential for global expansion: the green economy; agriculture (including efficient use of local biological resources and the bio-economy); the silver economy; products and services linked to healthcare and social services; IT applications; and business and lifestyle applications from the creative sector. In the USA, for example, a large share (almost 60 %) of the new jobs created over the next ten years may be linked to products and services that do not even exist yet. The economic benefits of re-using or adding value to public sector information through IT applications could amount to as much as EUR 140 billion annually, which would boost GDP accordingly (1); |
| --- | --- |

6.

notes that the knowledge-based assets of the world's biggest companies (listed on the S&P 500 index) already make up 80 % of their company value. Drivers of growth are mainly to be found in sectors of the economy with the greatest potential for global expansion: the green economy; agriculture (including efficient use of local biological resources and the bio-economy); the silver economy; products and services linked to healthcare and social services; IT applications; and business and lifestyle applications from the creative sector. In the USA, for example, a large share (almost 60 %) of the new jobs created over the next ten years may be linked to products and services that do not even exist yet. The economic benefits of re-using or adding value to public sector information through IT applications could amount to as much as EUR 140 billion annually, which would boost GDP accordingly (1);

| 7. | points to its earlier, related opinions on Synergies between private investment and public funding at local and regional levels
   (2); Mobilising private and public investment for recovery and long term structural change: developing public-private partnerships
   (3); a Programme for the competitiveness of enterprises and small and medium-sized enterprises (2014-2020)
   (4); Creating greater synergies between EU, national and subnational budgets
   (5); and The role of local and regional authorities in promoting growth and boosting job creation
   (6); |
| --- | --- |

7.

points to its earlier, related opinions on Synergies between private investment and public funding at local and regional levels
   (2); Mobilising private and public investment for recovery and long term structural change: developing public-private partnerships
   (3); a Programme for the competitiveness of enterprises and small and medium-sized enterprises (2014-2020)
   (4); Creating greater synergies between EU, national and subnational budgets
   (5); and The role of local and regional authorities in promoting growth and boosting job creation
   (6);

II.   VIEWS OF THE COMMITTEE OF THE REGIONS

The supply of long-term financing and characteristics of long-term investment

| 8. | agrees with the Commission's analysis, which is essentially that investors face a lack of legal certainty and are very cautious in their investments. They prefer short-term, more liquid investments, and above all investments in private assets. Financial institutions are often focused on fast-developing emerging markets with low wage costs; |
| --- | --- |

8.

agrees with the Commission's analysis, which is essentially that investors face a lack of legal certainty and are very cautious in their investments. They prefer short-term, more liquid investments, and above all investments in private assets. Financial institutions are often focused on fast-developing emerging markets with low wage costs;

| 9. | is concerned about the rapidly growing competition for foreign capital, because indebted countries urgently need new sources of capital to make growth-enhancing investments and service existing debt. Attention should not, or not just, be focused on loans, but also on other sources of capital; |
| --- | --- |

9.

is concerned about the rapidly growing competition for foreign capital, because indebted countries urgently need new sources of capital to make growth-enhancing investments and service existing debt. Attention should not, or not just, be focused on loans, but also on other sources of capital;

| 10. | points out that the municipalities and regions play many different roles in financial markets, making their own long-term investments, as well as investing to a greater or lesser degree on their own account, for instance through municipal undertakings or for industrial policy reasons. Municipalities and regions are also themselves investments on the financial markets; |
| --- | --- |

10.

points out that the municipalities and regions play many different roles in financial markets, making their own long-term investments, as well as investing to a greater or lesser degree on their own account, for instance through municipal undertakings or for industrial policy reasons. Municipalities and regions are also themselves investments on the financial markets;

| 11. | notes that the public sector operates on the financial markets in a different environment and with different objectives than does the private sector. The need for a return on investment, the investment horizon and risk tolerance, for example, are very different for public and private investors. The Commission should therefore pay particular attention to public sector activity where long-term financing is concerned; |
| --- | --- |

11.

notes that the public sector operates on the financial markets in a different environment and with different objectives than does the private sector. The need for a return on investment, the investment horizon and risk tolerance, for example, are very different for public and private investors. The Commission should therefore pay particular attention to public sector activity where long-term financing is concerned;

| 12. | is also concerned that specific local and regional-level circumstances are not given enough attention in provision of long-term financing and in measures typically taken to promote long-term investment; |
| --- | --- |

12.

is also concerned that specific local and regional-level circumstances are not given enough attention in provision of long-term financing and in measures typically taken to promote long-term investment;

| 13. | has reservations about EU moves to restrict competition and the leeway of governments in some areas of investment that are especially important to local and regional authorities. The coordination process and authorisation procedures are too time-consuming and complicated, which makes Europe less competitive internationally and increases the appeal of other parts of the world to investors; |
| --- | --- |

13.

has reservations about EU moves to restrict competition and the leeway of governments in some areas of investment that are especially important to local and regional authorities. The coordination process and authorisation procedures are too time-consuming and complicated, which makes Europe less competitive internationally and increases the appeal of other parts of the world to investors;

| 14. | calls for long-term investments by municipal and regional authorities that create jobs, promote technological innovation and green growth, and develop energy, transport and communications infrastructure to be facilitated and encouraged, including in difficult economic times; |
| --- | --- |

14.

calls for long-term investments by municipal and regional authorities that create jobs, promote technological innovation and green growth, and develop energy, transport and communications infrastructure to be facilitated and encouraged, including in difficult economic times;

Enhancing the long-term financing of the European economy. The capacity of financial institutions to channel long-term finance. Commercial banks

| 15. | points out that the December 2012 European Council Conclusions (7) stress that ‘the possibilities offered by the EU's existing fiscal framework to balance productive public investment needs with fiscal discipline objectives’ should be further ‘exploited’ in the preventive arm of the Stability and Growth Pact. Reiterates, against this backdrop, its call for separation of current spending and investment in the budget deficit calculations so as to avoid investments with long-term net benefits being impeded; |
| --- | --- |

15.

points out that the December 2012 European Council Conclusions (7) stress that ‘the possibilities offered by the EU's existing fiscal framework to balance productive public investment needs with fiscal discipline objectives’ should be further ‘exploited’ in the preventive arm of the Stability and Growth Pact. Reiterates, against this backdrop, its call for separation of current spending and investment in the budget deficit calculations so as to avoid investments with long-term net benefits being impeded;

| 16. | is pleased that banks are slowly re-establishing their capacity to make long-term investments, but notes that so far funds for local investment have only been made available under wholly inadequate conditions; |
| --- | --- |

16.

is pleased that banks are slowly re-establishing their capacity to make long-term investments, but notes that so far funds for local investment have only been made available under wholly inadequate conditions;

National and multilateral development banks and financial incentives

| 17. | feels that is important for national and multilateral development banks to (a) support strategically important investments, especially in infrastructure and energy provision, and (b) pursue counter-cyclical financial policies, which means retaining capital in periods of economic growth and substantially boosting investment during economic crises; |
| --- | --- |

17.

feels that is important for national and multilateral development banks to (a) support strategically important investments, especially in infrastructure and energy provision, and (b) pursue counter-cyclical financial policies, which means retaining capital in periods of economic growth and substantially boosting investment during economic crises;

| 18. | agrees that excessive consolidation of banks should be prevented at EU level, but at the same time recommends stepping up cooperation so as to pool free capital for investment at local and regional level; |
| --- | --- |

18.

agrees that excessive consolidation of banks should be prevented at EU level, but at the same time recommends stepping up cooperation so as to pool free capital for investment at local and regional level;

| 19. | advocates linking investment aimed at sustainable growth to long-term checks, and calls for provisional investment plans to be continued. In the long term, project bonds would also ensure sustainability at local and regional level; |
| --- | --- |

19.

advocates linking investment aimed at sustainable growth to long-term checks, and calls for provisional investment plans to be continued. In the long term, project bonds would also ensure sustainability at local and regional level;

| 20. | believes that long-term investments at local and regional level can also be supported by complementing policy tools and frameworks with efforts to cut red tape, develop online communication and streamline the decision-making process; |
| --- | --- |

20.

believes that long-term investments at local and regional level can also be supported by complementing policy tools and frameworks with efforts to cut red tape, develop online communication and streamline the decision-making process;

Institutional investors

| 21. | agrees that institutional investors play a key role in long-term financing, and on the need for compliance with the Solvency II Directive. Clearly, the greater the sums invested, the greater the role played by these investors. At the same time, it has to be ensured that available funds are invested in the economy of the EU, and not that of Asia or other parts of the world; |
| --- | --- |

21.

agrees that institutional investors play a key role in long-term financing, and on the need for compliance with the Solvency II Directive. Clearly, the greater the sums invested, the greater the role played by these investors. At the same time, it has to be ensured that available funds are invested in the economy of the EU, and not that of Asia or other parts of the world;

The cumulative effects of regulatory reform on financial institutions

| 22. | underlines that current and future reform of supervisory rules will produce long-term, cumulative effects. The regulatory system must be thoroughly thought-out and its possible repercussions over time — including at local and regional level — closely followed; |
| --- | --- |

22.

underlines that current and future reform of supervisory rules will produce long-term, cumulative effects. The regulatory system must be thoroughly thought-out and its possible repercussions over time — including at local and regional level — closely followed;

The efficiency and effectiveness of financial markets in offering long-term financing instruments

| 23. | notes that capital market financing of long-term investment in Europe can be improved by strengthening the EU's single market for capital, developing infrastructure supporting the local and regional financial institutions and ensuring effective investor protection, and that pension funds investing in local and regional development should be included; |
| --- | --- |

23.

notes that capital market financing of long-term investment in Europe can be improved by strengthening the EU's single market for capital, developing infrastructure supporting the local and regional financial institutions and ensuring effective investor protection, and that pension funds investing in local and regional development should be included;

| 24. | considers that there is a need to develop further investment products or packages of potential investments (such as road / utility projects) that could make them more amenable to direct investment by pension funds; |
| --- | --- |

24.

considers that there is a need to develop further investment products or packages of potential investments (such as road / utility projects) that could make them more amenable to direct investment by pension funds;

| 25. | believes there is a pressing need to lift labour productivity. It needs to constantly adapt to an ever-changing economic environment. In such an environment it can be beneficial if employees are able and want also to function as shareholders and investors with an interest in long-term investment in the company that employs them; in case of local investments, especially in energetic and environmental sectors, there is need for establishing investment constructions, where the local and regional community may appear as a financing actor also, and not just as a consumer; |
| --- | --- |

25.

believes there is a pressing need to lift labour productivity. It needs to constantly adapt to an ever-changing economic environment. In such an environment it can be beneficial if employees are able and want also to function as shareholders and investors with an interest in long-term investment in the company that employs them; in case of local investments, especially in energetic and environmental sectors, there is need for establishing investment constructions, where the local and regional community may appear as a financing actor also, and not just as a consumer;

| 26. | underlines that it might be beneficial for change and local development if employees are also shareholders and investors, should they should so wish and should the possibility for such participation even exist in the market structure concerned. Legislative reform and greater transparency can play a supportive role to encourage employees to participate in this way; |
| --- | --- |

26.

underlines that it might be beneficial for change and local development if employees are also shareholders and investors, should they should so wish and should the possibility for such participation even exist in the market structure concerned. Legislative reform and greater transparency can play a supportive role to encourage employees to participate in this way;

| 27. | is convinced of the need to more clearly include micro companies and SMEs, improve transparency at trade centres, and involve investors. The share of the market for loans outside the financial sector should be expanded and access to the market for SME loans made easier; |
| --- | --- |

27.

is convinced of the need to more clearly include micro companies and SMEs, improve transparency at trade centres, and involve investors. The share of the market for loans outside the financial sector should be expanded and access to the market for SME loans made easier;

| 28. | underlines that the EU's securitisation market can be revived if there are controls on how financial institutes invest capital, and if harmonised, transparent rating methods are used to ensure that the only capital that counts is that which is properly collateralised. Implementing these measures should free up capital which can be invested, and the liquid project bond market for SMEs should also be guaranteed; |
| --- | --- |

28.

underlines that the EU's securitisation market can be revived if there are controls on how financial institutes invest capital, and if harmonised, transparent rating methods are used to ensure that the only capital that counts is that which is properly collateralised. Implementing these measures should free up capital which can be invested, and the liquid project bond market for SMEs should also be guaranteed;

Cross-cutting factors enabling long-term saving and financing

| 29. | believes that creating different models for special savings accounts within the EU, and the potential advantages of such models, are linked to the question of how to guarantee interest on savings. |
| --- | --- |

29.

believes that creating different models for special savings accounts within the EU, and the potential advantages of such models, are linked to the question of how to guarantee interest on savings.

| 30. | is concerned that a compulsory or partly compulsory European savings account could be met with scepticism in some Member States, while voluntary accounts would arouse little public interest. In choosing a model for a special EU savings account, priority should clearly be given to the one best able to restore low levels of confidence and contribute to the Europe 2020 employment and growth objectives at local and regional level; |
| --- | --- |

30.

is concerned that a compulsory or partly compulsory European savings account could be met with scepticism in some Member States, while voluntary accounts would arouse little public interest. In choosing a model for a special EU savings account, priority should clearly be given to the one best able to restore low levels of confidence and contribute to the Europe 2020 employment and growth objectives at local and regional level;

Taxation

| 31. | a coordinated European approach for applying a lower tax rate to capital investments should be considered; |
| --- | --- |

31.

a coordinated European approach for applying a lower tax rate to capital investments should be considered;

| 32. | takes the view that to create the right incentives for long-term saving, consideration should be given to tax advantages at national level that incentivise rapid reinvestment of profits, long-term investment, and capital investments in micro companies and SMEs; it would make sense to distinguish between income from capital and income from other sources here. Consideration could also be given to lowering tax rates and exempting long-term financial savings; |
| --- | --- |

32.

takes the view that to create the right incentives for long-term saving, consideration should be given to tax advantages at national level that incentivise rapid reinvestment of profits, long-term investment, and capital investments in micro companies and SMEs; it would make sense to distinguish between income from capital and income from other sources here. Consideration could also be given to lowering tax rates and exempting long-term financial savings;

| 33. | recommends drawing on previous positive or negative experience when assessing the utility of reducing corporate income taxation on businesses. In some Member States, for example, all profits are presently exempt from taxation, regardless of whether or not they are reinvested, with only some forms of deployment in which money leaves the company incurring taxation, such as dividends, special benefits and natural benefits, etc. The result is an estimated effective tax rate of 4-5 %. Such a system does not encourage local investment; |
| --- | --- |

33.

recommends drawing on previous positive or negative experience when assessing the utility of reducing corporate income taxation on businesses. In some Member States, for example, all profits are presently exempt from taxation, regardless of whether or not they are reinvested, with only some forms of deployment in which money leaves the company incurring taxation, such as dividends, special benefits and natural benefits, etc. The result is an estimated effective tax rate of 4-5 %. Such a system does not encourage local investment;

| 34. | points out that a number of surveys on investment decisions place the taxation regime in fourth to sixth place in terms of priority. They suggest that there are other, more important factors, such as local availability of labour and appropriate skills, availability of energy and water, etc., low basic business costs, and other factors that directly or indirectly impact on business, such as corruption and the like; |
| --- | --- |

34.

points out that a number of surveys on investment decisions place the taxation regime in fourth to sixth place in terms of priority. They suggest that there are other, more important factors, such as local availability of labour and appropriate skills, availability of energy and water, etc., low basic business costs, and other factors that directly or indirectly impact on business, such as corruption and the like;

| 35. | advises the Commission to consider the possibility of not taxing reinvested profits and income from interest, and of granting tax exemptions to research, development and environmental projects; |
| --- | --- |

35.

advises the Commission to consider the possibility of not taxing reinvested profits and income from interest, and of granting tax exemptions to research, development and environmental projects;

| 36. | also supports increased coordination to simplify the corporate income taxation system, expand the tax base and reduce tax rates. State intervention in the economy and in people's lives should be restricted, giving businesses and citizens increased responsibility for their financial position and thereby encouraging a range of collective activities; |
| --- | --- |

36.

also supports increased coordination to simplify the corporate income taxation system, expand the tax base and reduce tax rates. State intervention in the economy and in people's lives should be restricted, giving businesses and citizens increased responsibility for their financial position and thereby encouraging a range of collective activities;

Accounting principles

| 37. | notes that fair value accounting principles are not applied in all Member States. They are used by companies that operate in several EU Member States simultaneously. Fair value accounting principles have not yet brought about any change in investor behaviour; |
| --- | --- |

37.

notes that fair value accounting principles are not applied in all Member States. They are used by companies that operate in several EU Member States simultaneously. Fair value accounting principles have not yet brought about any change in investor behaviour;

| 38. | steps should be taken to ensure the stability of accounting principles based on market-based assessments of assets and liabilities over long-term funding periods, and alternative measures should be planned to allow risk-free long-term financing with a view to the market value of assets and their sources; |
| --- | --- |

38.

steps should be taken to ensure the stability of accounting principles based on market-based assessments of assets and liabilities over long-term funding periods, and alternative measures should be planned to allow risk-free long-term financing with a view to the market value of assets and their sources;

Corporate governance arrangements

| 39. | believes that granting tax concessions on dividends would be one way of inducing long-term engagement on the part of shareholders. Distributing a larger share of dividends to shareholders who place their dividends in long-term investments would achieve the same result. There should also be tax concessions for long-term investment in local and regional developments; |
| --- | --- |

39.

believes that granting tax concessions on dividends would be one way of inducing long-term engagement on the part of shareholders. Distributing a larger share of dividends to shareholders who place their dividends in long-term investments would achieve the same result. There should also be tax concessions for long-term investment in local and regional developments;

| 40. | is convinced that where incentives for asset managers prove counter-productive, accounting transparency should clearly be improved to ensure trust between the public, business owners, business management and employees; |
| --- | --- |

40.

is convinced that where incentives for asset managers prove counter-productive, accounting transparency should clearly be improved to ensure trust between the public, business owners, business management and employees;

Information and reporting

| 41. | believes that efforts to more closely integrate financial and non-financial information that helps businesses gain a clearer overview of their long-term financial position so that they can make better decisions should not be coupled with a move away from quarterly reporting, given the current pace of life and the opportunities offered by the digital age. Moreover, it enables assessment of an evolving situation before problems pile up or before remedying those problems becomes much more expensive; |
| --- | --- |

41.

believes that efforts to more closely integrate financial and non-financial information that helps businesses gain a clearer overview of their long-term financial position so that they can make better decisions should not be coupled with a move away from quarterly reporting, given the current pace of life and the opportunities offered by the digital age. Moreover, it enables assessment of an evolving situation before problems pile up or before remedying those problems becomes much more expensive;

| 42. | recommends considering the scale and scope of quarterly indicators with regard to all the possibilities offered by the digital age. At the same time, it is important for the specialist media not to publish data in a biased manner, but in an objective, trustworthy manner, with comprehensible summaries, expert contributions and brief analyses included where necessary; |
| --- | --- |

42.

recommends considering the scale and scope of quarterly indicators with regard to all the possibilities offered by the digital age. At the same time, it is important for the specialist media not to publish data in a biased manner, but in an objective, trustworthy manner, with comprehensible summaries, expert contributions and brief analyses included where necessary;

| 43. | believes that economics and statistics already provide adequate indicators for long-term comparison, which makes applying, checking and analysing existing indicators a time-consuming task. Deploying new indicators would not appear to make much sense, therefore. Of course, this could change if a particularly informative indicator or benchmark median were identified; |
| --- | --- |

43.

believes that economics and statistics already provide adequate indicators for long-term comparison, which makes applying, checking and analysing existing indicators a time-consuming task. Deploying new indicators would not appear to make much sense, therefore. Of course, this could change if a particularly informative indicator or benchmark median were identified;

The ease of SMEs to access bank and non-bank financing

| 44. | agrees that SMEs have more limited access to financing than large companies do, and in several Member States face the added difficulty of legislation that is discriminatory in many respects; |
| --- | --- |

44.

agrees that SMEs have more limited access to financing than large companies do, and in several Member States face the added difficulty of legislation that is discriminatory in many respects;

| 45. | recommends considering the possibility of a public exchange or of developing an Internet-based bond market where everyone would be free to invest in local or regional development without having to go through brokers; |
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45.

recommends considering the possibility of a public exchange or of developing an Internet-based bond market where everyone would be free to invest in local or regional development without having to go through brokers;

| 46. | advises SMEs to make use of additional lenders, such as credit cooperatives, building societies and similar small financial institutions, whose share of the market in most countries in Eastern Europe is, regrettably, rather small, and whose development is often not promoted by the state. Some Member States offer a bank deposit guarantee, for example, but exclude credit cooperatives; |
| --- | --- |

46.

advises SMEs to make use of additional lenders, such as credit cooperatives, building societies and similar small financial institutions, whose share of the market in most countries in Eastern Europe is, regrettably, rather small, and whose development is often not promoted by the state. Some Member States offer a bank deposit guarantee, for example, but exclude credit cooperatives;

| 47. | proposes for local and regional governments, economical advocacy organisations, organisations having authority on public wealth and money market organisations to create local and regional cooperatives, which can supply alternative sources of funds for local and regional long-term financing; |
| --- | --- |

47.

proposes for local and regional governments, economical advocacy organisations, organisations having authority on public wealth and money market organisations to create local and regional cooperatives, which can supply alternative sources of funds for local and regional long-term financing;

| 48. | calls on the Commission to study the legal reforms that are necessary and fit to allow credit cooperatives to function efficiently, and to draft legislative proposals accordingly; |
| --- | --- |

48.

calls on the Commission to study the legal reforms that are necessary and fit to allow credit cooperatives to function efficiently, and to draft legislative proposals accordingly;

| 49. | is convinced that such a network of small financial institutes could be the solution to many local and regional problems, and that steps must be taken to ensure that SMEs receive a guaranteed share of risk capital. At the same time, thought should be given to large-scale use of credit guarantees; |
| --- | --- |

49.

is convinced that such a network of small financial institutes could be the solution to many local and regional problems, and that steps must be taken to ensure that SMEs receive a guaranteed share of risk capital. At the same time, thought should be given to large-scale use of credit guarantees;

| 50. | underlines that the development of an EU legal framework for alternative, non-bank sources of SME financing would, under certain conditions, clearly benefit local and regional development, since the current legal framework does more to constrain SMEs than benefit them. |
| --- | --- |

50.

underlines that the development of an EU legal framework for alternative, non-bank sources of SME financing would, under certain conditions, clearly benefit local and regional development, since the current legal framework does more to constrain SMEs than benefit them.

Brussels, 9 October 2013.

The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO

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(1)  European Commission, Public Sector Information — Raw Data for New Services and Products (http://bit.ly/wa4AR).

1

(2)  CdR 272/2013.

2

(3)  CdR 21/2010.

3

(4)  CdR 98/2012.

4

(5)  CdR 1778/2012.

5

(6)  CdR 1186/2012.

6

(7)  European Council Conclusions of 13 and 14 December 2012, I. Economic Policy, point 2.

7

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| 5.12.2013 | EN | Official Journal of the European Union | C 356/80 |
| --- | --- | --- | --- |

5.12.2013

EN

Official Journal of the European Union

C 356/80

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Opinion of the Committee of the Regions on ‘The sustainability of rural areas’

2013/C 356/14

THE COMMITTEE OF THE REGIONS

| — | confirms that while predominantly rural areas have gone some way towards catching up, their level of development still remains significantly below the EU average; |
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—

confirms that while predominantly rural areas have gone some way towards catching up, their level of development still remains significantly below the EU average;

| — | regrets that the amount of funding allocated to rural development has been significantly cut back compared to the 2007–2013 financial perspective; |
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—

regrets that the amount of funding allocated to rural development has been significantly cut back compared to the 2007–2013 financial perspective;

| — | notes that consideration is being given to expanding the areas where CAP second pillar funding may be used. Regrets this development as it will only further weaken the allocation of resources for improving technical and social infrastructure in rural areas; |
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—

notes that consideration is being given to expanding the areas where CAP second pillar funding may be used. Regrets this development as it will only further weaken the allocation of resources for improving technical and social infrastructure in rural areas;

| — | earmarking a minimum amount of the 5 % of EAFRD resources for the LEADER programme is an insufficient level for stimulating the rural economy; |
| --- | --- |

—

earmarking a minimum amount of the 5 % of EAFRD resources for the LEADER programme is an insufficient level for stimulating the rural economy;

| — | believes that extensive and direct cooperation between rural municipalities located in functional areas is justified particularly when preparing negotiating strategies in respect of towns located in such areas; |
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—

believes that extensive and direct cooperation between rural municipalities located in functional areas is justified particularly when preparing negotiating strategies in respect of towns located in such areas;

| — | recognises that the development strategies in these areas should identify a multiannual framework covering a period of at least a dozen or so years; |
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—

recognises that the development strategies in these areas should identify a multiannual framework covering a period of at least a dozen or so years;

| — | calls for systematic and complete mapping of zones of poverty in rural areas (at least at the level of NUTS 3), to ensure that more effective use is made of resources to combat social marginalisation; |
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—

calls for systematic and complete mapping of zones of poverty in rural areas (at least at the level of NUTS 3), to ensure that more effective use is made of resources to combat social marginalisation;

| — | believes that the future European rural development policy should:






  — | be compatible with the sustainability of rural areas, |
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—

believes that the future European rural development policy should:

—

be compatible with the sustainability of rural areas,

| — | recognise that rural areas offer prospects for development and have a crucial role to play in meeting Europe's challenges, |
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—

recognise that rural areas offer prospects for development and have a crucial role to play in meeting Europe's challenges,

| — | recognise that the diversity of Europe's rural areas is an important factor when it comes to meeting future challenges, |
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—

recognise that the diversity of Europe's rural areas is an important factor when it comes to meeting future challenges,

| — | be transparent and clear, to ensure that it is more widely accepted, |
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—

be transparent and clear, to ensure that it is more widely accepted,

| — | harness regional diversity to reach a shared European goal, ensuring that no regions are left behind; |
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—

harness regional diversity to reach a shared European goal, ensuring that no regions are left behind;

| Rapporteur | Jerzy ZAJĄKAŁA, Mayor of Łubianka(PL/EA) |
| --- | --- |

Rapporteur

Jerzy ZAJĄKAŁA, Mayor of Łubianka(PL/EA)

I.   POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS,

The importance of the vitality of rural areas

| 1. | notes that, according to current Eurostat figures, over 23 % of the EU's population lives in rural areas, with a further 35 % living in intermediate regions. Equally, draws attention to the fact that there are several Member States in which the number of people living in exclusively rural areas is significantly higher. This is the case in as many as 17 of the EU's 27 Member States, including Ireland (73 %), Slovakia (50 %), Estonia (48 %), Romania (46 %), Finland, Greece, Lithuania and Denmark (43 %); |
| --- | --- |

1.

notes that, according to current Eurostat figures, over 23 % of the EU's population lives in rural areas, with a further 35 % living in intermediate regions. Equally, draws attention to the fact that there are several Member States in which the number of people living in exclusively rural areas is significantly higher. This is the case in as many as 17 of the EU's 27 Member States, including Ireland (73 %), Slovakia (50 %), Estonia (48 %), Romania (46 %), Finland, Greece, Lithuania and Denmark (43 %);

| 2. | emphasises that rural areas harbour huge potential in terms of their human resources (cultural and social factors), natural environment and biodiversity, and raw materials and other economic resources, which are especially important for community life in the European Union and for its development. Against this background, recognises the particular importance of measures to preserve the vitality of rural areas in the social, cultural, environmental and economic domains; |
| --- | --- |

2.

emphasises that rural areas harbour huge potential in terms of their human resources (cultural and social factors), natural environment and biodiversity, and raw materials and other economic resources, which are especially important for community life in the European Union and for its development. Against this background, recognises the particular importance of measures to preserve the vitality of rural areas in the social, cultural, environmental and economic domains;

| 3. | notes that rural areas are highly diverse. While some areas are falling victim to the problem of depopulation, experiencing serious difficulties as a result, other regions, primarily those located close to urban areas, are coming under increasing demographic pressures and experiencing a growing demand for land. Some regions are still grappling with a serious recession in the wake of the economic crisis, which has also affected agriculture, while others are enjoying burgeoning success thanks to tourism and the quality of their natural environment; |
| --- | --- |

3.

notes that rural areas are highly diverse. While some areas are falling victim to the problem of depopulation, experiencing serious difficulties as a result, other regions, primarily those located close to urban areas, are coming under increasing demographic pressures and experiencing a growing demand for land. Some regions are still grappling with a serious recession in the wake of the economic crisis, which has also affected agriculture, while others are enjoying burgeoning success thanks to tourism and the quality of their natural environment;

| 4. | is concerned about the drastic population decline and the increasingly ageing population in broad swathes of Europe's rural areas. To ensure the viability of the regions concerned, rural areas will have to be placed on a stable footing both as a place to live and as a business location, offering adequate earnings possibilities. This will require efforts from across society and region-specific ideas based on home-grown potential; |
| --- | --- |

4.

is concerned about the drastic population decline and the increasingly ageing population in broad swathes of Europe's rural areas. To ensure the viability of the regions concerned, rural areas will have to be placed on a stable footing both as a place to live and as a business location, offering adequate earnings possibilities. This will require efforts from across society and region-specific ideas based on home-grown potential;

| 5. | underlines that the quality of life in rural areas is a significant factor in the decisions taken by farmers, their families, the other professionals who exploit, add value to and process other primary resources, and other non-farming residents of rural municipalities about whether they should continue to live and work in these areas. Such decisions have an impact on the size and demographic make-up of the population and on preserving the vitality of rural areas; |
| --- | --- |

5.

underlines that the quality of life in rural areas is a significant factor in the decisions taken by farmers, their families, the other professionals who exploit, add value to and process other primary resources, and other non-farming residents of rural municipalities about whether they should continue to live and work in these areas. Such decisions have an impact on the size and demographic make-up of the population and on preserving the vitality of rural areas;

| 6. | emphasises the need to preserve and rekindle the traditional cultural features of rural areas as an important element of the local, regional, national and European identity; |
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6.

emphasises the need to preserve and rekindle the traditional cultural features of rural areas as an important element of the local, regional, national and European identity;

| 7. | recognises the important role of agriculture in delivering such essential public goods as the countryside and safe food. Accordingly, supports continued EU funding for farms engaged in the delivery of these goods. Also considers that rural areas will be the most vulnerable to future changes in the climate scenarios created by climate change, which calls for the inclusion of mitigation measures and the adaptation of territorial planning, management and budgetary instruments so that participatory mechanisms and farming practices can be used to facilitate sustainable development; |
| --- | --- |

7.

recognises the important role of agriculture in delivering such essential public goods as the countryside and safe food. Accordingly, supports continued EU funding for farms engaged in the delivery of these goods. Also considers that rural areas will be the most vulnerable to future changes in the climate scenarios created by climate change, which calls for the inclusion of mitigation measures and the adaptation of territorial planning, management and budgetary instruments so that participatory mechanisms and farming practices can be used to facilitate sustainable development;

| 8. | considers that there is a need to educate society as a whole, particularly the younger generation, to help people understand and appreciate the positive aspects of rural areas and the importance of preserving their vitality for the general public; |
| --- | --- |

8.

considers that there is a need to educate society as a whole, particularly the younger generation, to help people understand and appreciate the positive aspects of rural areas and the importance of preserving their vitality for the general public;

The financial dimension of the sustainable development of rural areas

| 9. | recognises the need for continued implementation and improvement of the Common Agricultural Policy, which is an important Community instrument for achieving both short and long-term objectives, focused on the delivery of good results in terms of the national economy and global competitiveness and on ensuring territorial cohesion in all regions of the Member States; |
| --- | --- |

9.

recognises the need for continued implementation and improvement of the Common Agricultural Policy, which is an important Community instrument for achieving both short and long-term objectives, focused on the delivery of good results in terms of the national economy and global competitiveness and on ensuring territorial cohesion in all regions of the Member States;

| 10. | considers that the rural world will change substantially due to the impact of energy and climate policies and the more efficient use of raw materials which can give it a more important role in the primary economic sector, and that these changes must be taken into account right now to ensure that they are sustainable and integrate economic, social and environmental concerns in a harmonious manner. In addition, crop rotation is still of great interest for rural areas because it reduces dependence on soy bean imports, improves soil quality, reduces the use of fertilisers, brings back stable economic activity to rural areas and restores the EU's trade balance. Regrets, however, that the CoR opinion on capping and greening was not taken into account in the decisions taken by the heads of state and government on 26 June last because they weaken both the diversity and sustainability of rural areas; |
| --- | --- |

10.

considers that the rural world will change substantially due to the impact of energy and climate policies and the more efficient use of raw materials which can give it a more important role in the primary economic sector, and that these changes must be taken into account right now to ensure that they are sustainable and integrate economic, social and environmental concerns in a harmonious manner. In addition, crop rotation is still of great interest for rural areas because it reduces dependence on soy bean imports, improves soil quality, reduces the use of fertilisers, brings back stable economic activity to rural areas and restores the EU's trade balance. Regrets, however, that the CoR opinion on capping and greening was not taken into account in the decisions taken by the heads of state and government on 26 June last because they weaken both the diversity and sustainability of rural areas;

| 11. | at the same time supports the extensive funding provided by the European Union for incentive programmes for young farmers as well as financial support for semi-subsistence farms and farms located in less favoured areas, which are important instruments for preserving the vitality of rural areas. Also points to the need to increase support and subsidies for activities associated with the restoration, conservation and improvement of protected areas, in order to reconcile environmental conservation with the sustainable development of rural areas which bear responsibility for most protected areas; |
| --- | --- |

11.

at the same time supports the extensive funding provided by the European Union for incentive programmes for young farmers as well as financial support for semi-subsistence farms and farms located in less favoured areas, which are important instruments for preserving the vitality of rural areas. Also points to the need to increase support and subsidies for activities associated with the restoration, conservation and improvement of protected areas, in order to reconcile environmental conservation with the sustainable development of rural areas which bear responsibility for most protected areas;

| 12. | notes that the income earned by farmers from their agricultural activity and from the equivalent payments and subsidies which they receive under both pillars of the Common Agricultural Policy has a significant impact on the situation in the rural municipalities where they live and operate their farms. This income not only impacts on the efficiency of farming activities and on the standard of living of farmers and their families but also on the tax revenues of the localities where they live. The level of income significantly affects the extent to which farmers can raise the standard of living in rural areas and their personal involvement in this process; |
| --- | --- |

12.

notes that the income earned by farmers from their agricultural activity and from the equivalent payments and subsidies which they receive under both pillars of the Common Agricultural Policy has a significant impact on the situation in the rural municipalities where they live and operate their farms. This income not only impacts on the efficiency of farming activities and on the standard of living of farmers and their families but also on the tax revenues of the localities where they live. The level of income significantly affects the extent to which farmers can raise the standard of living in rural areas and their personal involvement in this process;

| 13. | voices concern about the anticipated reduction in resources for rural development in the 2014–2020 financial perspective. Regrets that the amount of funding allocated to rural development has been significantly cut back compared to the 2007–2013 financial perspective, from EUR 95.7 billion to below EUR 85 billion. The pool of resources actually available to rural municipalities may be reduced even further in view of the plans to give Member States the right to transfer up to 15 % of resources from the second to the first pillar of the CAP (up to 25 % in certain EU regions); |
| --- | --- |

13.

voices concern about the anticipated reduction in resources for rural development in the 2014–2020 financial perspective. Regrets that the amount of funding allocated to rural development has been significantly cut back compared to the 2007–2013 financial perspective, from EUR 95.7 billion to below EUR 85 billion. The pool of resources actually available to rural municipalities may be reduced even further in view of the plans to give Member States the right to transfer up to 15 % of resources from the second to the first pillar of the CAP (up to 25 % in certain EU regions);

| 14. | notes that consideration is being given to expanding the areas where CAP second pillar funding may be used to include trust funds set up to cover financial losses incurred due to plant or livestock disease, environmental incidents or substantial reductions in agricultural revenue, funds which traditionally formed part of the CAP's first pillar. Regrets this development as it will only further weaken the allocation of resources for improving technical and social infrastructure in rural areas; |
| --- | --- |

14.

notes that consideration is being given to expanding the areas where CAP second pillar funding may be used to include trust funds set up to cover financial losses incurred due to plant or livestock disease, environmental incidents or substantial reductions in agricultural revenue, funds which traditionally formed part of the CAP's first pillar. Regrets this development as it will only further weaken the allocation of resources for improving technical and social infrastructure in rural areas;

| 15. | welcomes the fact that the Common Strategic Framework and the partnership agreements create the conditions needed to foster coordination and integration, with a view to supporting the sustainable development of rural areas. Earmarking a minimum amount of the 5 % of EAFRD resources for the LEADER programme is an important approach to supporting local development; states, nonetheless, that this is an insufficient level for stimulating the rural economy; |
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15.

welcomes the fact that the Common Strategic Framework and the partnership agreements create the conditions needed to foster coordination and integration, with a view to supporting the sustainable development of rural areas. Earmarking a minimum amount of the 5 % of EAFRD resources for the LEADER programme is an important approach to supporting local development; states, nonetheless, that this is an insufficient level for stimulating the rural economy;

| 16. | supports the inclusion of CLLD (community-led local development) in Structural Fund programmes in the form of a local development strategy to be implemented by local stakeholders. Nonetheless, considers that a multifund strategy should be accompanied by the necessary coordination between the rules governing the various funds. The Commission's proposal for intermediaries to resolve this is unsatisfactory, giving responsibility to one authority rather than several but without simplifying the actual administrative tasks. There is a lack of consistency between regulatory systems and an evident risk that more time and resources will be invested in heading off objections than in making progress; |
| --- | --- |

16.

supports the inclusion of CLLD (community-led local development) in Structural Fund programmes in the form of a local development strategy to be implemented by local stakeholders. Nonetheless, considers that a multifund strategy should be accompanied by the necessary coordination between the rules governing the various funds. The Commission's proposal for intermediaries to resolve this is unsatisfactory, giving responsibility to one authority rather than several but without simplifying the actual administrative tasks. There is a lack of consistency between regulatory systems and an evident risk that more time and resources will be invested in heading off objections than in making progress;

| 17. | regrets that the use of the LEADER initiative for the ERDF and EFS operational programmes is optional and that it may only be financed under the ninth thematic objective on ‘promoting social inclusion and combating poverty’. This principle will restrict local action groups' room for manoeuvre as well as the opportunities for harnessing different funds for the development of local development strategies; |
| --- | --- |

17.

regrets that the use of the LEADER initiative for the ERDF and EFS operational programmes is optional and that it may only be financed under the ninth thematic objective on ‘promoting social inclusion and combating poverty’. This principle will restrict local action groups' room for manoeuvre as well as the opportunities for harnessing different funds for the development of local development strategies;

| 18. | emphasises that maintaining quality public or private services often requires a major political, civic or financial effort, with more decisive evening out of disparities, which entails the need for a higher degree of solidarity between rural and urban areas; |
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18.

emphasises that maintaining quality public or private services often requires a major political, civic or financial effort, with more decisive evening out of disparities, which entails the need for a higher degree of solidarity between rural and urban areas;

| 19. | anticipates that the further deregulation of Europe's agricultural markets will increase the volatility of agricultural prices, primarily threatening small and medium-sized family farms. Also draws attention to the fact that the liberalisation of milk quotas could lead to greater industrialisation and intensification of dairy farming, further accelerating both the rural exodus and climate change. Notes that it is still important to compensate farmers for the public goods which they provide, including natural and cultural assets such as grazed, open land, which have no commercial value. If abolishing the milk quota system were to lead to undesirable distortions in livestock farming, policy measures would be needed to support more information for consumers and the market more generally, and to safeguard animal welfare across the EU; |
| --- | --- |

19.

anticipates that the further deregulation of Europe's agricultural markets will increase the volatility of agricultural prices, primarily threatening small and medium-sized family farms. Also draws attention to the fact that the liberalisation of milk quotas could lead to greater industrialisation and intensification of dairy farming, further accelerating both the rural exodus and climate change. Notes that it is still important to compensate farmers for the public goods which they provide, including natural and cultural assets such as grazed, open land, which have no commercial value. If abolishing the milk quota system were to lead to undesirable distortions in livestock farming, policy measures would be needed to support more information for consumers and the market more generally, and to safeguard animal welfare across the EU;

| 20. | points out that there are ways of linking activities supported by the rural development programme (second pillar) with activities under the regional, social and fisheries funds, i.e. funds within the CSF. Biogas production, terrestrial ICT infrastructure, innovation, skills development, business development and CLLD (community-led local development) are areas that fall within the rural development programme but are also linked to the other funds, where different industries can help each other and where urban and rural needs and resources coincide; |
| --- | --- |

20.

points out that there are ways of linking activities supported by the rural development programme (second pillar) with activities under the regional, social and fisheries funds, i.e. funds within the CSF. Biogas production, terrestrial ICT infrastructure, innovation, skills development, business development and CLLD (community-led local development) are areas that fall within the rural development programme but are also linked to the other funds, where different industries can help each other and where urban and rural needs and resources coincide;

Importance of functional links between rural and urban areas

| 21. | realises the particular challenges facing rural municipalities located in areas where medium-sized and large towns have a direct impact and recommends adopting a functional approach to identifying development strategies for these areas; |
| --- | --- |

21.

realises the particular challenges facing rural municipalities located in areas where medium-sized and large towns have a direct impact and recommends adopting a functional approach to identifying development strategies for these areas;

| 22. | notes that both towns and rural municipalities located in functional areas harbour valuable and highly useful social and economic resources. When preparing a development strategy for a functional area, the CoR recommends analysing all existing resources for the whole functional area and ensuring that the development strategy takes account of the potential of both rural municipalities and towns and fully taps into that potential with an eye to sustainability. Also draws attention to the potential dangers for rural areas that can arise as a result of the lack of balanced development between towns and rural municipalities and which can occur in situations where a town exploits its dominance in terms of its economy and population; |
| --- | --- |

22.

notes that both towns and rural municipalities located in functional areas harbour valuable and highly useful social and economic resources. When preparing a development strategy for a functional area, the CoR recommends analysing all existing resources for the whole functional area and ensuring that the development strategy takes account of the potential of both rural municipalities and towns and fully taps into that potential with an eye to sustainability. Also draws attention to the potential dangers for rural areas that can arise as a result of the lack of balanced development between towns and rural municipalities and which can occur in situations where a town exploits its dominance in terms of its economy and population;

| 23. | believes that extensive and direct cooperation between rural municipalities located in functional areas is justified particularly when preparing negotiating strategies in respect of towns located in such areas; |
| --- | --- |

23.

believes that extensive and direct cooperation between rural municipalities located in functional areas is justified particularly when preparing negotiating strategies in respect of towns located in such areas;

| 24. | considers that the application of a methodology which ensures the involvement of local authorities and the residents of both urban and rural municipalities is desirable when drafting sustainable development strategies for functional areas. This participation should be ensured both during preparatory work (research and analytical work) and when adopting decisions which determine the final shape of the strategy; |
| --- | --- |

24.

considers that the application of a methodology which ensures the involvement of local authorities and the residents of both urban and rural municipalities is desirable when drafting sustainable development strategies for functional areas. This participation should be ensured both during preparatory work (research and analytical work) and when adopting decisions which determine the final shape of the strategy;

| 25. | also highlights that only part of the population of rural municipalities located in peri-urban areas is actually engaged in agricultural activity. People who have migrated to these areas from the towns frequently expect certain types of agricultural activity which they consider to be a nuisance to stop, e.g. the use of natural or artificial fertilisers and agricultural equipment, livestock rearing and grazing etc. It is recommended that spatial planning policies anticipate and tackle these problems by means of, in particular, a sustainable development strategy that reconciles everyone's economic, social and environmental interests and by, for instance, identifying zones earmarked for agricultural production in order to minimise possible social conflicts; |
| --- | --- |

25.

also highlights that only part of the population of rural municipalities located in peri-urban areas is actually engaged in agricultural activity. People who have migrated to these areas from the towns frequently expect certain types of agricultural activity which they consider to be a nuisance to stop, e.g. the use of natural or artificial fertilisers and agricultural equipment, livestock rearing and grazing etc. It is recommended that spatial planning policies anticipate and tackle these problems by means of, in particular, a sustainable development strategy that reconciles everyone's economic, social and environmental interests and by, for instance, identifying zones earmarked for agricultural production in order to minimise possible social conflicts;

| 26. | points out that social integration programmes in rural areas experiencing a steady population influx from urban areas provide one way of addressing social conflicts that may arise where there is contact between different lifestyles, values and social standards; |
| --- | --- |

26.

points out that social integration programmes in rural areas experiencing a steady population influx from urban areas provide one way of addressing social conflicts that may arise where there is contact between different lifestyles, values and social standards;

| 27. | draws attention to the need for a fair division of the costs of eliminating the economic, environmental and social effects of ‘urban sprawl’ between urban and rural areas; |
| --- | --- |

27.

draws attention to the need for a fair division of the costs of eliminating the economic, environmental and social effects of ‘urban sprawl’ between urban and rural areas;

The challenges facing rural municipalities in outlying areas

| 28. | notes that the great majority of rural municipalities are located outside areas where large and medium-sized towns have a direct impact. This situation requires the use of specific instruments to support these areas. Therefore recommends that both the Common Agricultural Policy and Cohesion Policy — which is also implemented through regional development instruments — should include solutions that will genuinely help achieve territorial cohesion and ensure sustainable equal development opportunities; |
| --- | --- |

28.

notes that the great majority of rural municipalities are located outside areas where large and medium-sized towns have a direct impact. This situation requires the use of specific instruments to support these areas. Therefore recommends that both the Common Agricultural Policy and Cohesion Policy — which is also implemented through regional development instruments — should include solutions that will genuinely help achieve territorial cohesion and ensure sustainable equal development opportunities;

| 29. | recognising the importance of preserving rural areas, the CoR calls for greater support for local authorities to help them create and maintain technical as well as social infrastructure which can play a role in maintaining the vitality of these areas; |
| --- | --- |

29.

recognising the importance of preserving rural areas, the CoR calls for greater support for local authorities to help them create and maintain technical as well as social infrastructure which can play a role in maintaining the vitality of these areas;

| 30. | emphasises the functional links that exist between outlying rural areas and small towns and calls for the creation of appropriate mechanisms to stimulate joint action to improve the quality of life in these areas, particularly by ensuring that small towns provide all the local services needed for such areas to function properly; |
| --- | --- |

30.

emphasises the functional links that exist between outlying rural areas and small towns and calls for the creation of appropriate mechanisms to stimulate joint action to improve the quality of life in these areas, particularly by ensuring that small towns provide all the local services needed for such areas to function properly;

| 31. | notes that the strategic documents which set out the development policy for these areas should be the result of joint action and agreements between neighbouring local municipalities (bilateral and broader cooperation) and cooperation in the area of regional policy; |
| --- | --- |

31.

notes that the strategic documents which set out the development policy for these areas should be the result of joint action and agreements between neighbouring local municipalities (bilateral and broader cooperation) and cooperation in the area of regional policy;

Rural — urban links and their significant impact on regional development

| 32. | stresses once again the particular importance and need for rural municipalities and towns to work together and cooperate as part of functional areas. Equally, recognises that the development strategies in these areas should identify a multiannual framework covering a period of at least a dozen or so years; |
| --- | --- |

32.

stresses once again the particular importance and need for rural municipalities and towns to work together and cooperate as part of functional areas. Equally, recognises that the development strategies in these areas should identify a multiannual framework covering a period of at least a dozen or so years;

| 33. | recommends that cooperation between rural and urban municipalities take the form of a territorial partnership; |
| --- | --- |

33.

recommends that cooperation between rural and urban municipalities take the form of a territorial partnership;

| 34. | considers that a broad public debate should be held before any joint action is launched within a functional area, leading to the sovereign decision of the local authorities involved. Equally, the subsequent withdrawal of a municipality from such cooperation in a functional area should — due to the existence of a network of infrastructure and social links — be subject to the approval of all towns and municipalities engaged in cooperation in the given functional area; |
| --- | --- |

34.

considers that a broad public debate should be held before any joint action is launched within a functional area, leading to the sovereign decision of the local authorities involved. Equally, the subsequent withdrawal of a municipality from such cooperation in a functional area should — due to the existence of a network of infrastructure and social links — be subject to the approval of all towns and municipalities engaged in cooperation in the given functional area;

| 35. | draws attention to the mutual dependencies between towns and rural municipalities which exist in functional areas and which are based on the shared use of human, environmental and economic resources and the joint operation of public services; |
| --- | --- |

35.

draws attention to the mutual dependencies between towns and rural municipalities which exist in functional areas and which are based on the shared use of human, environmental and economic resources and the joint operation of public services;

| 36. | in view of current lifestyle trends present in urban communities, proposes that these trends be used to promote the benefits of living in rural areas. Stresses that networking provides an unprecedented opportunity to forge close links between farmers and food consumers. Notes that these types of initiative can significantly contribute to the development of a new kind of rural-urban relations; |
| --- | --- |

36.

in view of current lifestyle trends present in urban communities, proposes that these trends be used to promote the benefits of living in rural areas. Stresses that networking provides an unprecedented opportunity to forge close links between farmers and food consumers. Notes that these types of initiative can significantly contribute to the development of a new kind of rural-urban relations;

| 37. | emphasises that short supply chains for agricultural products help to develop sustainable production and responsible consumption. They meet a growing demand from consumers for authentic, seasonal, locally and community-produced products. This is also a socially conscious model of consumption that is respectful of the environment, cuts down on packaging, limits CO2 emissions and supports sustainable production practices. Support for short supply chains should coexist with the promotion of cooperative integration as a factor that strengthens the market position of farmers. Supply concentration is an effective way to ensure fair prices for farmers and to secure the growing demand for food; |
| --- | --- |

37.

emphasises that short supply chains for agricultural products help to develop sustainable production and responsible consumption. They meet a growing demand from consumers for authentic, seasonal, locally and community-produced products. This is also a socially conscious model of consumption that is respectful of the environment, cuts down on packaging, limits CO2 emissions and supports sustainable production practices. Support for short supply chains should coexist with the promotion of cooperative integration as a factor that strengthens the market position of farmers. Supply concentration is an effective way to ensure fair prices for farmers and to secure the growing demand for food;

| 38. | stresses, however, that producers who wish to engage in such initiatives face numerous problems. Ensuring a steady and regular supply of goods to consumers, who generally demand a continuous supply of food in sufficient quantity and variety, is often difficult. Costly equipment is generally required (e.g. specially adapted vehicles, cooling systems, sales points and processing facilities etc.). Recommends, therefore, that this type of activity should be supported; |
| --- | --- |

38.

stresses, however, that producers who wish to engage in such initiatives face numerous problems. Ensuring a steady and regular supply of goods to consumers, who generally demand a continuous supply of food in sufficient quantity and variety, is often difficult. Costly equipment is generally required (e.g. specially adapted vehicles, cooling systems, sales points and processing facilities etc.). Recommends, therefore, that this type of activity should be supported;

| 39. | notes that the issues of physical accessibility, remoteness from centres of decision-making and research and restricted access to new technologies are all obstacles which many areas are finding it hard to overcome and which are key factors in development possibilities, equal opportunities and quality of life. Moreover, labour force participation is lower in rural areas than in urban regions and fewer new jobs are created in the countryside; |
| --- | --- |

39.

notes that the issues of physical accessibility, remoteness from centres of decision-making and research and restricted access to new technologies are all obstacles which many areas are finding it hard to overcome and which are key factors in development possibilities, equal opportunities and quality of life. Moreover, labour force participation is lower in rural areas than in urban regions and fewer new jobs are created in the countryside;

| 40. | notes that current problems are being compounded by new challenges such as the effect of climate change, biodiversity loss and other environmental problems, the diminishing countryside, particularly the amount of agricultural land, as well as the issue of the ageing population. Emphasises that a significant effort is required to understand this issue and to take the necessary measures to resolve it, using active policies to tackle depopulation; |
| --- | --- |

40.

notes that current problems are being compounded by new challenges such as the effect of climate change, biodiversity loss and other environmental problems, the diminishing countryside, particularly the amount of agricultural land, as well as the issue of the ageing population. Emphasises that a significant effort is required to understand this issue and to take the necessary measures to resolve it, using active policies to tackle depopulation;

| 41. | regrets that rural areas are losing their dynamism compared to urban areas. Also emphasises that the 5th Report on Economic, Social and Territorial Cohesion, issued in November 2010, highlighted the socio-economic divergence between Europe’s regions; |
| --- | --- |

41.

regrets that rural areas are losing their dynamism compared to urban areas. Also emphasises that the 5th Report on Economic, Social and Territorial Cohesion, issued in November 2010, highlighted the socio-economic divergence between Europe’s regions;

| 42. | confirms that while predominantly rural areas have gone some way towards catching up, their level of development still remains significantly below the EU average. Notes that this gap is particularly marked compared with predominantly urban regions. In the EU-12 Member States, the average GDP of rural areas is 73 % lower than that of urban areas. The divergence between rural and urban areas is particularly visible in Central and Eastern Europe as well as in Southern Europe; |
| --- | --- |

42.

confirms that while predominantly rural areas have gone some way towards catching up, their level of development still remains significantly below the EU average. Notes that this gap is particularly marked compared with predominantly urban regions. In the EU-12 Member States, the average GDP of rural areas is 73 % lower than that of urban areas. The divergence between rural and urban areas is particularly visible in Central and Eastern Europe as well as in Southern Europe;

| 43. | calls for systematic and complete mapping of zones of poverty in rural areas (at least at the level of NUTS 3), to ensure that more effective use is made of resources to combat social marginalisation; |
| --- | --- |

43.

calls for systematic and complete mapping of zones of poverty in rural areas (at least at the level of NUTS 3), to ensure that more effective use is made of resources to combat social marginalisation;

| 44. | once again notes that it is essential to establish a framework for multilevel governance to ensure the effective transformation of European and national policies, including the Common Agricultural Policy, after 2013. A number of doubts arise in this context, which should be addressed as a matter of urgency. While this principle has been clearly recognised in the proposal for a General Regulation, the role of local and regional authorities in partnership agreements remains unclear. Regions and communities in rural areas can no longer be satisfied with their status as co-financing entities that have no say in the selection of priorities or implementation and management methods. The guidelines drawn up by the European Commission on the content of partnership agreements should explicitly stress the importance of involving representatives of rural areas in the preparation of these agreements; |
| --- | --- |

44.

once again notes that it is essential to establish a framework for multilevel governance to ensure the effective transformation of European and national policies, including the Common Agricultural Policy, after 2013. A number of doubts arise in this context, which should be addressed as a matter of urgency. While this principle has been clearly recognised in the proposal for a General Regulation, the role of local and regional authorities in partnership agreements remains unclear. Regions and communities in rural areas can no longer be satisfied with their status as co-financing entities that have no say in the selection of priorities or implementation and management methods. The guidelines drawn up by the European Commission on the content of partnership agreements should explicitly stress the importance of involving representatives of rural areas in the preparation of these agreements;

The European strategy and policies for rural areas up to 2030

| 45. | Believes that the future European rural development policy should:






  — | be compatible with the sustainability of rural areas, |
| --- | --- | --- |

45.

Believes that the future European rural development policy should:

—

be compatible with the sustainability of rural areas,

| — | recognise that rural areas offer prospects for development and have a crucial role to play in meeting Europe's challenges, |
| --- | --- |

—

recognise that rural areas offer prospects for development and have a crucial role to play in meeting Europe's challenges,

| — | recognise that the diversity of Europe's rural areas is an important factor when it comes to meeting future challenges, |
| --- | --- |

—

recognise that the diversity of Europe's rural areas is an important factor when it comes to meeting future challenges,

| — | be transparent and clear, to ensure that it is more widely accepted, |
| --- | --- |

—

be transparent and clear, to ensure that it is more widely accepted,

| — | harness regional diversity to reach a shared European goal, ensuring that no regions are left behind; |
| --- | --- |

—

harness regional diversity to reach a shared European goal, ensuring that no regions are left behind;

| 46. | considers that, in order to achieve these objectives, the future rural development policy will need to ensure that farmers are more involved in the provision of public services; |
| --- | --- |

46.

considers that, in order to achieve these objectives, the future rural development policy will need to ensure that farmers are more involved in the provision of public services;

| 47. | considers that, in the next programming period, the current tendency to focus rural development funding mainly on the agricultural sector will have to be more balanced, in order to ensure genuine economic development in rural areas. |
| --- | --- |

47.

considers that, in the next programming period, the current tendency to focus rural development funding mainly on the agricultural sector will have to be more balanced, in order to ensure genuine economic development in rural areas.

Brussels, 9 October 2013.

The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO

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| 5.12.2013 | EN | Official Journal of the European Union | C 356/86 |
| --- | --- | --- | --- |

5.12.2013

EN

Official Journal of the European Union

C 356/86

---

Opinion of the Committee of the Regions — Empowering local authorities in partner countries for enhanced governance and more effective development outcomes

2013/C 356/15

THE COMMITTEE OF THE REGIONS

| — | fully endorses the Commission’s approach in this new communication, in which LRAs are recognised in their political role as policy-makers and decision-makers, requiring an adequate level of autonomy, capacity development and financial resources; |
| --- | --- |

—

fully endorses the Commission’s approach in this new communication, in which LRAs are recognised in their political role as policy-makers and decision-makers, requiring an adequate level of autonomy, capacity development and financial resources;

| — | welcomes the idea that support to the public sector in partner countries, with the aim of encouraging a more effective and efficient design and implementation of national development policies and plans, should also take into account the important role of the local public sector; |
| --- | --- |

—

welcomes the idea that support to the public sector in partner countries, with the aim of encouraging a more effective and efficient design and implementation of national development policies and plans, should also take into account the important role of the local public sector;

| — | encourages the Commission to adopt the rules (Implementing Rules of the Financial Regulations) for full financing ‘where it is in the interests of the Community to be the sole donor to an action’ in its programmes, e.g. for Non-State Actors and Local Authorities; |
| --- | --- |

—

encourages the Commission to adopt the rules (Implementing Rules of the Financial Regulations) for full financing ‘where it is in the interests of the Community to be the sole donor to an action’ in its programmes, e.g. for Non-State Actors and Local Authorities;

| — | agrees with the Commission that the EU should adapt its support to the growing role, potential and needs of LRAs and associations of LRAs in partner countries, with a view to moving beyond aid effectiveness to development effectiveness; and emphasises that this implies increased financial allocations to activities in support of decentralisation and the empowerment of LRAs and their associations; |
| --- | --- |

—

agrees with the Commission that the EU should adapt its support to the growing role, potential and needs of LRAs and associations of LRAs in partner countries, with a view to moving beyond aid effectiveness to development effectiveness; and emphasises that this implies increased financial allocations to activities in support of decentralisation and the empowerment of LRAs and their associations;

| — | expresses its willingness to contribute, with Commission technical and financial support, to developing a means of evaluating and monitoring the decentralisation aspects in partner countries, in cooperation with all interested parties; |
| --- | --- |

—

expresses its willingness to contribute, with Commission technical and financial support, to developing a means of evaluating and monitoring the decentralisation aspects in partner countries, in cooperation with all interested parties;

| — | states that, in order to secure broad involvement of local authorities in the post-2015 agenda, a truly participatory process is needed and, in contrast to the development of the Millennium Development Goals, this involvement must be secured early on in the development phase of the post-2015 agenda, with the necessary financial resources; |
| --- | --- |

—

states that, in order to secure broad involvement of local authorities in the post-2015 agenda, a truly participatory process is needed and, in contrast to the development of the Millennium Development Goals, this involvement must be secured early on in the development phase of the post-2015 agenda, with the necessary financial resources;

| — | reiterates its support for the designation of 2015 as the European Year of Development demands therefore that the budget provides for adequate financial support to local and regional authorities' initiatives; |
| --- | --- |

—

reiterates its support for the designation of 2015 as the European Year of Development demands therefore that the budget provides for adequate financial support to local and regional authorities' initiatives;

| — | reaffirms its readiness to provide European LRAs with a political space for developing their international and cross-border cooperation. |
| --- | --- |

—

reaffirms its readiness to provide European LRAs with a political space for developing their international and cross-border cooperation.

| Rapporteur | Hans JANSSEN (NL/EPP), Mayor of Oisterwijk |
| --- | --- |
| Reference document | Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Empowering Local Authorities in partner countries for enhanced governance and more effective development outcomes
  COM(2013) 280 final |

Rapporteur

Hans JANSSEN (NL/EPP), Mayor of Oisterwijk

Reference document

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Empowering Local Authorities in partner countries for enhanced governance and more effective development outcomes

COM(2013) 280 final

I.   POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS

General comments

| 1. | welcomes the new European Commission communication on Empowering local authorities in partner countries for enhanced governance and more effective development outcomes. This is an important next step in the explicit recognition and the elaboration of the specific position of local and regional authorities (LRAs) as partners in EU development policy, next to and distinguished from other partners and actors such as central governments and civil society organisations; |
| --- | --- |

1.

welcomes the new European Commission communication on Empowering local authorities in partner countries for enhanced governance and more effective development outcomes. This is an important next step in the explicit recognition and the elaboration of the specific position of local and regional authorities (LRAs) as partners in EU development policy, next to and distinguished from other partners and actors such as central governments and civil society organisations;

| 2. | recalls that in 2008, the European Commission (EC) published its first communication (1) on the role of LRAs within development. That was a major step towards acknowledging the place, role and added value of LRAs in development policy and cooperation; |
| --- | --- |

2.

recalls that in 2008, the European Commission (EC) published its first communication (1) on the role of LRAs within development. That was a major step towards acknowledging the place, role and added value of LRAs in development policy and cooperation;

| 3. | refers to earlier CoR opinions, notably the most recent ones on the communication on Global Europe: a new approach to financing EU external action and on the communication on Increasing the impact of EU development policy: an Agenda for Change, which stressed the specific position and role of LRAs in the EU's external action; |
| --- | --- |

3.

refers to earlier CoR opinions, notably the most recent ones on the communication on Global Europe: a new approach to financing EU external action and on the communication on Increasing the impact of EU development policy: an Agenda for Change, which stressed the specific position and role of LRAs in the EU's external action;

| 4. | fully endorses the Commission’s approach in this new communication, in which LRAs are recognised in their political role as policy-makers and decision-makers, requiring an adequate level of autonomy, capacity development and financial resources; |
| --- | --- |

4.

fully endorses the Commission’s approach in this new communication, in which LRAs are recognised in their political role as policy-makers and decision-makers, requiring an adequate level of autonomy, capacity development and financial resources;

| 5. | recalls that each and every type of ‘local authority’ — regions, provinces, counties, districts, municipalities, villages, etc. — play a strategic role in enhancing democratic governance and contributing to more effective development. It therefore does not see a ground for the decision of the European Commission to put the focus of the Communication primarily on the municipal level, as stated in footnote 1; |
| --- | --- |

5.

recalls that each and every type of ‘local authority’ — regions, provinces, counties, districts, municipalities, villages, etc. — play a strategic role in enhancing democratic governance and contributing to more effective development. It therefore does not see a ground for the decision of the European Commission to put the focus of the Communication primarily on the municipal level, as stated in footnote 1;

| 6. | welcomes the empowerment of LRAs in partner countries, as advocated in the communication, as this will help LRAs fulfil the important role bestowed on them, inter alia by the Agenda for Change, in the areas of human rights, democracy and other key elements of good governance, as well as in inclusive and sustainable growth for human development; |
| --- | --- |

6.

welcomes the empowerment of LRAs in partner countries, as advocated in the communication, as this will help LRAs fulfil the important role bestowed on them, inter alia by the Agenda for Change, in the areas of human rights, democracy and other key elements of good governance, as well as in inclusive and sustainable growth for human development;

| 7. | reiterates that European LRAs possess a wealth of experience in many areas in which LRAs in partner countries need to build capacity. This should be recognised more explicitly in the communication, which should also focus on how this experience can be transferred, inter alia through peer-to-peer knowledge-sharing, and applied to local circumstances; |
| --- | --- |

7.

reiterates that European LRAs possess a wealth of experience in many areas in which LRAs in partner countries need to build capacity. This should be recognised more explicitly in the communication, which should also focus on how this experience can be transferred, inter alia through peer-to-peer knowledge-sharing, and applied to local circumstances;

| 8. | believes that, on the basis of the analysis in the communication, LRAs should be closely involved in formulating the post-2015 development agenda. The important role for LRAs applies not only to sustainable development, but also to related areas such as inclusive urbanisation, social cohesion, adaptation to climate change, human security, etc. In this respect:






  — | welcomes the report issued by the UN Secretary-General's High-level Panel of Eminent Persons on the Post-2015 Development Agenda; |
| --- | --- | --- |

8.

believes that, on the basis of the analysis in the communication, LRAs should be closely involved in formulating the post-2015 development agenda. The important role for LRAs applies not only to sustainable development, but also to related areas such as inclusive urbanisation, social cohesion, adaptation to climate change, human security, etc. In this respect:

—

welcomes the report issued by the UN Secretary-General's High-level Panel of Eminent Persons on the Post-2015 Development Agenda;

| — | welcomes the fact that HABITAT III (2) in 2016 will concentrate on a new urban agenda; and |
| --- | --- |

—

welcomes the fact that HABITAT III (2) in 2016 will concentrate on a new urban agenda; and

| — | underlines the need for local and regional authorities to be fully involved in the establishment of the EU contributions and positions, including in the preparatory process; |
| --- | --- |

—

underlines the need for local and regional authorities to be fully involved in the establishment of the EU contributions and positions, including in the preparatory process;

| 9. | recognises the open process followed during the preparatory phase of the communication. LRAs were able to submit contributions and ideas, and exchanges of views took place on various occasions, including during a CoR CIVEX commission meeting; |
| --- | --- |

9.

recognises the open process followed during the preparatory phase of the communication. LRAs were able to submit contributions and ideas, and exchanges of views took place on various occasions, including during a CoR CIVEX commission meeting;

| 10. | acknowledges the communication's recognition of the key role of the CoR in stimulating and coordinating LRAs’ development efforts and offers its continued cooperation in the further shaping and implementation of EU development policy. Good forums for this include the assises on decentralised cooperation, which facilitates dialogue between LRAs from the EU and developing countries and with European institutions, and, particularly as regards cooperation in EU efforts to support development in neighbouring countries, ARLEM and CORLEAP — two assemblies gathering local and regional representatives from the EU and (neighbourhood) partner countries; |
| --- | --- |

10.

acknowledges the communication's recognition of the key role of the CoR in stimulating and coordinating LRAs’ development efforts and offers its continued cooperation in the further shaping and implementation of EU development policy. Good forums for this include the assises on decentralised cooperation, which facilitates dialogue between LRAs from the EU and developing countries and with European institutions, and, particularly as regards cooperation in EU efforts to support development in neighbouring countries, ARLEM and CORLEAP — two assemblies gathering local and regional representatives from the EU and (neighbourhood) partner countries;

Background

| 11. | agrees with the Commission that centrally-led, top-down policies and programmes cannot on their own succeed in addressing the complexities of sustainable development and fighting poverty, and that public and private actors have their role to play, especially at local level; |
| --- | --- |

11.

agrees with the Commission that centrally-led, top-down policies and programmes cannot on their own succeed in addressing the complexities of sustainable development and fighting poverty, and that public and private actors have their role to play, especially at local level;

| 12. | agrees with the well balanced position the Commission takes as to the key role of LRAs: on the one hand, their key role can also apply independently from how central authorities function (for instance in fragile states), on the other hand, their key role can be undermined by negative factors, including at local level; |
| --- | --- |

12.

agrees with the well balanced position the Commission takes as to the key role of LRAs: on the one hand, their key role can also apply independently from how central authorities function (for instance in fragile states), on the other hand, their key role can be undermined by negative factors, including at local level;

| 13. | welcomes the proposed more strategic engagement of the European Commission with LRAs in partner countries, with a view to their empowerment and the achievement of development objectives; |
| --- | --- |

13.

welcomes the proposed more strategic engagement of the European Commission with LRAs in partner countries, with a view to their empowerment and the achievement of development objectives;

| 14. | shares the Commission's view that the political recognition of the role of LRAs in development processes should be accompanied by an adequate level of autonomy, capacity development and financial resources, in order for their empowerment to be complete and to reflect the division of powers among the different tiers of government; |
| --- | --- |

14.

shares the Commission's view that the political recognition of the role of LRAs in development processes should be accompanied by an adequate level of autonomy, capacity development and financial resources, in order for their empowerment to be complete and to reflect the division of powers among the different tiers of government;

| 15. | urges the Commission to translate these very true observations into the priorities it agrees with partner countries for its cooperation programmes. Given the relevance of LRAs, these should be fully involved in the preparation and implementation of these programmes, including through their representative associations; |
| --- | --- |

15.

urges the Commission to translate these very true observations into the priorities it agrees with partner countries for its cooperation programmes. Given the relevance of LRAs, these should be fully involved in the preparation and implementation of these programmes, including through their representative associations;

Unlocking the development potential of local authorities

| 16. | welcomes the idea that support to the public sector in partner countries, with the aim of encouraging a more effective and efficient design and implementation of national development policies and plans, should also take into account the important role of the public sector at local and regional level. This coincides with the Committee of the Regions’ plea for better involvement of LRAs in development policy, both within the EU and in partner developing countries; |
| --- | --- |

16.

welcomes the idea that support to the public sector in partner countries, with the aim of encouraging a more effective and efficient design and implementation of national development policies and plans, should also take into account the important role of the public sector at local and regional level. This coincides with the Committee of the Regions’ plea for better involvement of LRAs in development policy, both within the EU and in partner developing countries;

| 17. | endorses the importance the Commission gives to stakeholder partnerships and dialogue mechanisms at beneficiary level as a way of engaging in dialogue with relevant central authorities to ensure their needs and concerns are known and taken into account. This is aligned with the multilevel governance approach. At the same time, the multilevel approach also requires that central authorities on their side seek to engage in dialogue with LRAs to get to know the needs and concerns at local level; |
| --- | --- |

17.

endorses the importance the Commission gives to stakeholder partnerships and dialogue mechanisms at beneficiary level as a way of engaging in dialogue with relevant central authorities to ensure their needs and concerns are known and taken into account. This is aligned with the multilevel governance approach. At the same time, the multilevel approach also requires that central authorities on their side seek to engage in dialogue with LRAs to get to know the needs and concerns at local level;

| 18. | The requirement for co-financing prevents the participation of certain actors in both EU Member States and Partner Countries. In the case of Partner Countries, financial resource constraints may prevent the engagement of local actors, while in some Member States like Sweden, local and regional government cannot participate in programmes like Non-State Actors and Local Authorities because they are not permitted to utilise local taxes to finance international development cooperation. Given the specific goals of the programme, and the wide-ranging experiences of different European countries (welfare, decentralisation, healthcare, etc.), this does not seem to be in the interest of EU and its external cooperation programme. To avoid this situation, the Committee of the Regions encourages the Commission to adopt the rules (Implementing Rules of the Financial Regulations) for full financing ‘where it is in the interests of the Community to be the sole donor to an action’ (Article 253 — 1(e)); |
| --- | --- |

18.

The requirement for co-financing prevents the participation of certain actors in both EU Member States and Partner Countries. In the case of Partner Countries, financial resource constraints may prevent the engagement of local actors, while in some Member States like Sweden, local and regional government cannot participate in programmes like Non-State Actors and Local Authorities because they are not permitted to utilise local taxes to finance international development cooperation. Given the specific goals of the programme, and the wide-ranging experiences of different European countries (welfare, decentralisation, healthcare, etc.), this does not seem to be in the interest of EU and its external cooperation programme. To avoid this situation, the Committee of the Regions encourages the Commission to adopt the rules (Implementing Rules of the Financial Regulations) for full financing ‘where it is in the interests of the Community to be the sole donor to an action’ (Article 253 — 1(e));

| 19. | emphasises the importance of a territorial approach to development, as referred to in the communication, and calls on the EU to work together with other development partners on the elaboration and implementation of this approach. The EU should also elaborate incentives, such as additional financial support for partner countries who, in dialogue with LRAs and their association(s) within the country, are genuinely taking steps forward in terms of applying a territorial approach within their national development plan(s); |
| --- | --- |

19.

emphasises the importance of a territorial approach to development, as referred to in the communication, and calls on the EU to work together with other development partners on the elaboration and implementation of this approach. The EU should also elaborate incentives, such as additional financial support for partner countries who, in dialogue with LRAs and their association(s) within the country, are genuinely taking steps forward in terms of applying a territorial approach within their national development plan(s);

Shaping EU support for improved governance and more effective development outcomes at local level

| 20. | notes that while the Commission’s proposal to work in favour of legitimate authorities is pertinent, the specific reference in the first paragraph of this section to ‘opportunities for coordination with regional authorities’ does not make sense, in the Committee's view, given the premise in footnote 1 of the communication that sub-state authorities of all types, i.e. not only municipalities and cities, but also districts, provinces and regions are included within its understanding of local authorities; |
| --- | --- |

20.

notes that while the Commission’s proposal to work in favour of legitimate authorities is pertinent, the specific reference in the first paragraph of this section to ‘opportunities for coordination with regional authorities’ does not make sense, in the Committee's view, given the premise in footnote 1 of the communication that sub-state authorities of all types, i.e. not only municipalities and cities, but also districts, provinces and regions are included within its understanding of local authorities;

| 21. | agrees with the Commission that political will is a condition for successful decentralisation. In accordance with the communication, however, this political will should be promoted, for instance in policy dialogue. And when it is demonstrated, it should be rewarded via incentives in EU cooperation; |
| --- | --- |

21.

agrees with the Commission that political will is a condition for successful decentralisation. In accordance with the communication, however, this political will should be promoted, for instance in policy dialogue. And when it is demonstrated, it should be rewarded via incentives in EU cooperation;

| 22. | shares the view that EU support for decentralisation should focus on the establishment of a conducive legal and policy environment and on institutional and capacity development. The CoR also supports additional identified priorities, such as a strong focus on fiscal decentralisation, public financial management and accountability, and a long-term and demand-driven approach to capacity development; |
| --- | --- |

22.

shares the view that EU support for decentralisation should focus on the establishment of a conducive legal and policy environment and on institutional and capacity development. The CoR also supports additional identified priorities, such as a strong focus on fiscal decentralisation, public financial management and accountability, and a long-term and demand-driven approach to capacity development;

| 23. | reiterates that LRAs from EU countries possess a wealth of relevant knowledge and experience in many areas where LRAs in partner countries need to develop capacity, and feels that, in addition to and in combination with bilateral cooperation between LRAs in the EU and partner countries, their associations should be considered strategic partners for managing capacity-building programmes for LRAs; |
| --- | --- |

23.

reiterates that LRAs from EU countries possess a wealth of relevant knowledge and experience in many areas where LRAs in partner countries need to develop capacity, and feels that, in addition to and in combination with bilateral cooperation between LRAs in the EU and partner countries, their associations should be considered strategic partners for managing capacity-building programmes for LRAs;

| 24. | agrees with the Commission that associations of LRAs can be instrumental in achieving good governance and development outcomes at local level, and points out that apart from the six main functions distinguished in the communication, the function of service provision to the members of the association should be mentioned. Associations of LRAs are often called upon by their members to provide capacity development and training services, particularly in a development context. Providing these services has proved vital for the visibility, membership commitment and thus sustainability of the associations. It also generates information and insights that can be used in the associations' lobby and advocacy activities; |
| --- | --- |

24.

agrees with the Commission that associations of LRAs can be instrumental in achieving good governance and development outcomes at local level, and points out that apart from the six main functions distinguished in the communication, the function of service provision to the members of the association should be mentioned. Associations of LRAs are often called upon by their members to provide capacity development and training services, particularly in a development context. Providing these services has proved vital for the visibility, membership commitment and thus sustainability of the associations. It also generates information and insights that can be used in the associations' lobby and advocacy activities;

| 25. | agrees with the view of the Commission that in many partner countries associations of LRAs are still weak. In order to fulfil their roles to their full potential, substantial long-term support is needed. This can take various forms. For example, by providing direct funding as part of the budgets being managed by the EU delegations, and by establishing or continuing bigger, interconnected programmes such as the ARIAL programme referred to in the communication. In all cases, making use of the knowledge and experience of European associations of LRAs, via peer-to-peer learning and exchange of experience, is of key importance; |
| --- | --- |

25.

agrees with the view of the Commission that in many partner countries associations of LRAs are still weak. In order to fulfil their roles to their full potential, substantial long-term support is needed. This can take various forms. For example, by providing direct funding as part of the budgets being managed by the EU delegations, and by establishing or continuing bigger, interconnected programmes such as the ARIAL programme referred to in the communication. In all cases, making use of the knowledge and experience of European associations of LRAs, via peer-to-peer learning and exchange of experience, is of key importance;

A way forward: more efficient and flexible means of support

| 26. | agrees with the Commission that the EU should adapt its support to the growing role, potential and needs of LRAs and associations of LRAs in partner countries, with a view to moving beyond aid effectiveness to development effectiveness; |
| --- | --- |

26.

agrees with the Commission that the EU should adapt its support to the growing role, potential and needs of LRAs and associations of LRAs in partner countries, with a view to moving beyond aid effectiveness to development effectiveness;

| 27. | emphasises that this implies increased financial allocations to activities in support of decentralisation and the empowerment of LRAs and their associations. Now is the time to do so, at the beginning of the new financing period. LRAs should be explicitly eligible in all instruments of the Global Europe package. And a significant shift is needed within the European Development Fund. The Thematic global evaluation of the Commission support to decentralisation processes
   (3) of February 2012, shows that direct contributions to decentralisation represented only 1 % of the Commission's overall financial contributions (all sectors and countries) over the period 2000-2004, only around 2,5 % over the period 2004-2008, and much less again over the last years of the evaluation (2008-2009). Empowering local authorities for enhanced governance and more effective development outcomes is worth more; |
| --- | --- |

27.

emphasises that this implies increased financial allocations to activities in support of decentralisation and the empowerment of LRAs and their associations. Now is the time to do so, at the beginning of the new financing period. LRAs should be explicitly eligible in all instruments of the Global Europe package. And a significant shift is needed within the European Development Fund. The Thematic global evaluation of the Commission support to decentralisation processes
   (3) of February 2012, shows that direct contributions to decentralisation represented only 1 % of the Commission's overall financial contributions (all sectors and countries) over the period 2000-2004, only around 2,5 % over the period 2004-2008, and much less again over the last years of the evaluation (2008-2009). Empowering local authorities for enhanced governance and more effective development outcomes is worth more;

| 28. | welcomes the wish of the Commission to explore the use of innovative funding arrangements and the idea that this could be linked to the assessment of LRAs’ institutional performance. Too often, however, such assessments are top-down exercises, which result in sanctions for those who perform less well. This generally leads to less openness amongst the participants. Taking the need for the capacity development of LRAs into account, encourages the use of horizontal learning processes, using instruments such as benchmarking and open comparisons in which the efficiency-building role of LRA associations can be strengthened, which can more easily be linked with positive financial incentives, and are more appropriate and more fruitful in the long term; |
| --- | --- |

28.

welcomes the wish of the Commission to explore the use of innovative funding arrangements and the idea that this could be linked to the assessment of LRAs’ institutional performance. Too often, however, such assessments are top-down exercises, which result in sanctions for those who perform less well. This generally leads to less openness amongst the participants. Taking the need for the capacity development of LRAs into account, encourages the use of horizontal learning processes, using instruments such as benchmarking and open comparisons in which the efficiency-building role of LRA associations can be strengthened, which can more easily be linked with positive financial incentives, and are more appropriate and more fruitful in the long term;

| 29. | endorses the view that the EU should ensure sufficient flexibility in its programmes to support the initiatives of LRAs and their associations. In fact, this is an essential element in opting for a more strategic engagement in their empowerment. Such flexibility should therefore include the possibility of direct funding to LRAs and their associations for these ‘own initiatives’, and the funding of such initiatives with or via their partner LRAs and partner associations in Europe; |
| --- | --- |

29.

endorses the view that the EU should ensure sufficient flexibility in its programmes to support the initiatives of LRAs and their associations. In fact, this is an essential element in opting for a more strategic engagement in their empowerment. Such flexibility should therefore include the possibility of direct funding to LRAs and their associations for these ‘own initiatives’, and the funding of such initiatives with or via their partner LRAs and partner associations in Europe;

| 30. | shares the Commission’s view that, in the context of budget support, the EU should support systems to monitor financial transfers from central government to LRAs. This should also contribute to the development of more comprehensive instruments at regional and global levels that provide direction for decentralisation processes and a basis for monitoring the state of play, as the European Charter on Local Self-Government does at European level; |
| --- | --- |

30.

shares the Commission’s view that, in the context of budget support, the EU should support systems to monitor financial transfers from central government to LRAs. This should also contribute to the development of more comprehensive instruments at regional and global levels that provide direction for decentralisation processes and a basis for monitoring the state of play, as the European Charter on Local Self-Government does at European level;

| 31. | expresses its willingness to contribute, with Commission technical and financial support, to developing a means of evaluating and monitoring the decentralisation aspects in partner countries, in cooperation with all interested parties, notably associations of LRAs, and others organisations (UN-Habitat; UNDP) or entities, including in developing countries (the CCT of the UEMOA for instance); |
| --- | --- |

31.

expresses its willingness to contribute, with Commission technical and financial support, to developing a means of evaluating and monitoring the decentralisation aspects in partner countries, in cooperation with all interested parties, notably associations of LRAs, and others organisations (UN-Habitat; UNDP) or entities, including in developing countries (the CCT of the UEMOA for instance);

| 32. | considers that such comprehensive instruments provide a valuable input for the policy dialogue between the EU and partner countries. They allow the dialogue to take into account policy coordination, complementarity and coherence between various levels of government in a country. Such policy dialogue can be reinforced by financial incentives related to these issues, in line with the wish to explore the use of innovative funding arrangements; |
| --- | --- |

32.

considers that such comprehensive instruments provide a valuable input for the policy dialogue between the EU and partner countries. They allow the dialogue to take into account policy coordination, complementarity and coherence between various levels of government in a country. Such policy dialogue can be reinforced by financial incentives related to these issues, in line with the wish to explore the use of innovative funding arrangements;

| 33. | agrees with the Commission that the EU should support decentralised and cross-border cooperation between LRAs from Europe and partner countries based on long-term and equal institutional partnerships. From a European perspective, coordination of partnerships in wider networks or working together in joint programmes should be encouraged and facilitated. Points out that the Portal on decentralised cooperation for development facilitates such coordination by providing information on existing projects and enabling discussion with a view to developing new ones. The CoR is willing to continue its role in this respect, together with associations of LRAs, for example. In view of the enhanced impact that is expected from more coordinated approaches, this should be encouraged by increasing the EU funding available for such approaches; |
| --- | --- |

33.

agrees with the Commission that the EU should support decentralised and cross-border cooperation between LRAs from Europe and partner countries based on long-term and equal institutional partnerships. From a European perspective, coordination of partnerships in wider networks or working together in joint programmes should be encouraged and facilitated. Points out that the Portal on decentralised cooperation for development facilitates such coordination by providing information on existing projects and enabling discussion with a view to developing new ones. The CoR is willing to continue its role in this respect, together with associations of LRAs, for example. In view of the enhanced impact that is expected from more coordinated approaches, this should be encouraged by increasing the EU funding available for such approaches;

| 34. | welcomes the Commission’s view that the EU should support the role that LRAs and associations of LRAs play in shaping the post-2015 development agenda; notes with satisfaction that this view is supported by the Council (4), which calls on the EU and its Member States, as appropriate in cooperation with the Committee of the Regions, to take into account the voice and experience of local authorities and to support their representation in policy discussions at national and international level, including in the development of the post-2015 agenda and in the preparation of HABITAT III; |
| --- | --- |

34.

welcomes the Commission’s view that the EU should support the role that LRAs and associations of LRAs play in shaping the post-2015 development agenda; notes with satisfaction that this view is supported by the Council (4), which calls on the EU and its Member States, as appropriate in cooperation with the Committee of the Regions, to take into account the voice and experience of local authorities and to support their representation in policy discussions at national and international level, including in the development of the post-2015 agenda and in the preparation of HABITAT III;

| 35. | states that, in order to secure broad involvement of local authorities in the post-2015 agenda, a truly participatory process is needed and, in contrast to the development of the Millennium Development Goals, this involvement must be secured early on in the development phase of the post-2015 agenda. The necessary financial resources need to be released to guarantee this involvement; |
| --- | --- |

35.

states that, in order to secure broad involvement of local authorities in the post-2015 agenda, a truly participatory process is needed and, in contrast to the development of the Millennium Development Goals, this involvement must be secured early on in the development phase of the post-2015 agenda. The necessary financial resources need to be released to guarantee this involvement;

| 36. | reiterates its support for the designation of 2015 as the European Year of Development (5), and regards it as a good opportunity to launch and support, including financially, activities at local and regional level; demands therefore that the budget provides for adequate financial support to local and regional authorities' initiatives; |
| --- | --- |

36.

reiterates its support for the designation of 2015 as the European Year of Development (5), and regards it as a good opportunity to launch and support, including financially, activities at local and regional level; demands therefore that the budget provides for adequate financial support to local and regional authorities' initiatives;

| 37. | reaffirms its readiness to provide European LRAs with a political space for developing their international and cross-border cooperation; |
| --- | --- |

37.

reaffirms its readiness to provide European LRAs with a political space for developing their international and cross-border cooperation;

| 38. | confirms its commitment to contributing to further policy development and innovations, building inter alia on this communication and on the experience of the decentralised cooperation for Development, and in cooperation with networks and associations of LRAs. All of this is aimed at empowering LRAs in partner countries for enhanced governance and more effective development outcomes. |
| --- | --- |

38.

confirms its commitment to contributing to further policy development and innovations, building inter alia on this communication and on the experience of the decentralised cooperation for Development, and in cooperation with networks and associations of LRAs. All of this is aimed at empowering LRAs in partner countries for enhanced governance and more effective development outcomes.

Brussels, 9 October 2013.

The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO

---

(1)  COM(2008) 626 final.

1

(2)  The Third United Nations Conference on Housing and Sustainable Urban Development.

2

(3)  http://ec.europa.eu/europaid/how/evaluation/evaluation_reports/2012/1300_docs_en.htm

3

(4)  See ‘Council conclusions on local authorities in development’, Foreign Affairs Council meeting, Brussels, 22 July 2013 and ‘The Overarching Post 2015 Agenda — Council Conclusions’, General Affairs Council meeting, Luxembourg, 25 June 2013

4

(5)  Proposal for a decision of the European Parliament and the Council on the European Year of Development (2015), COM(2013) 509 final.

5

---

III Preparatory acts

COMMITTEE OF THE REGIONS

103rd plenary session held on 7-9 October 2013

| 5.12.2013 | EN | Official Journal of the European Union | C 356/92 |
| --- | --- | --- | --- |

5.12.2013

EN

Official Journal of the European Union

C 356/92

---

Opinion of the Committee of the Regions — The fourth railway package

2013/C 356/16

THE COMMITTEE OF THE REGIONS

| — | welcomes the European Commission's willingness to complete the regulatory framework needed to achieve a single European railway area; |
| --- | --- |

—

welcomes the European Commission's willingness to complete the regulatory framework needed to achieve a single European railway area;

| — | does not view liberalisation as an end in itself: the purpose should be to improve the range and quality of services. The opening up to competition cannot be assessed without also taking investment in infrastructure, real market operating conditions and the technical aspects of interoperability into consideration; |
| --- | --- |

—

does not view liberalisation as an end in itself: the purpose should be to improve the range and quality of services. The opening up to competition cannot be assessed without also taking investment in infrastructure, real market operating conditions and the technical aspects of interoperability into consideration;

| — | points out that the principle of free administration enables local authorities to decide how they want to organise their public transport services; sees the introduction of ceilings for direct award which are too low as a dramatic limitation of the principle of local and regional authority free administration; |
| --- | --- |

—

points out that the principle of free administration enables local authorities to decide how they want to organise their public transport services; sees the introduction of ceilings for direct award which are too low as a dramatic limitation of the principle of local and regional authority free administration;

| — | welcomes the stronger role for infrastructure managers and the introduction of coordination committees that will supervise the activity of the reinforced infrastructure managers and ensure the efficiency of the entire system. Local authorities must be automatically involved, not only ‘if appropriate’; |
| --- | --- |

—

welcomes the stronger role for infrastructure managers and the introduction of coordination committees that will supervise the activity of the reinforced infrastructure managers and ensure the efficiency of the entire system. Local authorities must be automatically involved, not only ‘if appropriate’;

| — | urges that a European network of infrastructure managers, which is crucial to the operation of a single European railway area and to cross-border coordination, be set up rapidly; |
| --- | --- |

—

urges that a European network of infrastructure managers, which is crucial to the operation of a single European railway area and to cross-border coordination, be set up rapidly;

| — | supports a stronger role for the European Railway Agency with the aim of supporting technical interoperability and harmonisation of ‘safety’ procedures, in order to avoid the major problems resulting from divergences between 26 national authorities. |
| --- | --- |

—

supports a stronger role for the European Railway Agency with the aim of supporting technical interoperability and harmonisation of ‘safety’ procedures, in order to avoid the major problems resulting from divergences between 26 national authorities.

| Rapporteur | Pascal MANGIN (FR/EPP), Member of Alsace Regional Council |
| --- | --- |
| Reference documents | Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on ‘The Fourth Railway Package — completing the Single European Railway Area to foster European competitiveness and growth’
  COM(2013) 25 final;
  Proposal for a Regulation of the European Parliament and of the Council repealing Regulation (EEC) No 1192/69 of the Council on common rules for the normalisation of the accounts of railway undertakings
  COM(2013) 26 final;
  Proposal for a Regulation of the European Parliament and of the Council on the European Union Agency for Railways and repealing Regulation (EC) No 881/2004
  COM(2013) 27 final;
  Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EC) No 1370/2007 concerning the opening of the market for domestic passenger transport services by rail
  COM(2013) 28 final;
  Proposal for a Directive of the European Parliament and of the Council amending Directive 2012/34/EU of the European Parliament and of the Council of 21 November 2012 establishing a single European railway area, as regards the opening of the market for domestic passenger transport services by rail and the governance of the railway infrastructure
  COM(2013) 29 final;
  Proposal for a Directive of the European Parliament and of the Council on the interoperability of the rail system within the European Union (Recast)
  COM(2013) 30 final;
  Proposal for a Directive of the European Parliament and of the Council on railway safety (Recast)
  COM(2013) 31 final;
  Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the progress made towards achieving interoperability of the rail system
  COM(2013) 32 final;
  Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the profile and tasks of other train crew members
  COM(2013) 33 final;
  Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the implementation of the provisions of Directive 2007/58/EC on the opening of the market of international rail passenger transport accompanying the Commission Communication on the fourth Railway Package
  COM(2013) 34 final. |

Rapporteur

Pascal MANGIN (FR/EPP), Member of Alsace Regional Council

Reference documents

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on ‘The Fourth Railway Package — completing the Single European Railway Area to foster European competitiveness and growth’

COM(2013) 25 final;

Proposal for a Regulation of the European Parliament and of the Council repealing Regulation (EEC) No 1192/69 of the Council on common rules for the normalisation of the accounts of railway undertakings

COM(2013) 26 final;

Proposal for a Regulation of the European Parliament and of the Council on the European Union Agency for Railways and repealing Regulation (EC) No 881/2004

COM(2013) 27 final;

Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EC) No 1370/2007 concerning the opening of the market for domestic passenger transport services by rail

COM(2013) 28 final;

Proposal for a Directive of the European Parliament and of the Council amending Directive 2012/34/EU of the European Parliament and of the Council of 21 November 2012 establishing a single European railway area, as regards the opening of the market for domestic passenger transport services by rail and the governance of the railway infrastructure

COM(2013) 29 final;

Proposal for a Directive of the European Parliament and of the Council on the interoperability of the rail system within the European Union (Recast)

COM(2013) 30 final;

Proposal for a Directive of the European Parliament and of the Council on railway safety (Recast)

COM(2013) 31 final;

Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the progress made towards achieving interoperability of the rail system

COM(2013) 32 final;

Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the profile and tasks of other train crew members

COM(2013) 33 final;

Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the implementation of the provisions of Directive 2007/58/EC on the opening of the market of international rail passenger transport accompanying the Commission Communication on the fourth Railway Package

COM(2013) 34 final.

I.   POLICY RECOMMENDATIONS

A.   
  Public service obligations

THE COMMITTEE OF THE REGIONS

General comments

| 1. | welcomes the European Commission's willingness to complete the regulatory framework needed to achieve a single European railway area; |
| --- | --- |

1.

welcomes the European Commission's willingness to complete the regulatory framework needed to achieve a single European railway area;

| 2. | refers to its view — repeatedly expressed, for example in connection with ‘greening the transport sector’ — that one of the main objectives of European transport policy is to transfer goods and passenger traffic, particularly cross-border goods and heavy goods traffic, from the roads to rail, as the most environment-friendly mode, and that the EU must ensure that this objective is achieved by means of appropriate measures, if sufficient free capacity is available for this; |
| --- | --- |

2.

refers to its view — repeatedly expressed, for example in connection with ‘greening the transport sector’ — that one of the main objectives of European transport policy is to transfer goods and passenger traffic, particularly cross-border goods and heavy goods traffic, from the roads to rail, as the most environment-friendly mode, and that the EU must ensure that this objective is achieved by means of appropriate measures, if sufficient free capacity is available for this;

| 3. | does not view liberalisation as an end in itself: the purpose should be to improve the range and quality of services. The opening up to competition cannot be assessed without also taking investment in infrastructure, real market operating conditions and the technical aspects of interoperability into consideration; |
| --- | --- |

3.

does not view liberalisation as an end in itself: the purpose should be to improve the range and quality of services. The opening up to competition cannot be assessed without also taking investment in infrastructure, real market operating conditions and the technical aspects of interoperability into consideration;

| 4. | wishes to take a holistic approach combining proportionality, subsidiarity and market supervision by a robust regulator. The Committee of the Regions is in favour of the public service proportionality conditions introduced by the Commission and of supervision by regulators of how commercial and public services connect to each other; |
| --- | --- |

4.

wishes to take a holistic approach combining proportionality, subsidiarity and market supervision by a robust regulator. The Committee of the Regions is in favour of the public service proportionality conditions introduced by the Commission and of supervision by regulators of how commercial and public services connect to each other;

| 5. | trusts that local and regional authorities will be fully involved in preparing and implementing rail policy measures having a direct impact on users and the relevant authorities themselves; |
| --- | --- |

5.

trusts that local and regional authorities will be fully involved in preparing and implementing rail policy measures having a direct impact on users and the relevant authorities themselves;

| 6. | considers that more effective rail systems and, in particular, public service contracts are good for local and regional authorities, given the tight budgetary and financial constraints placed on them; |
| --- | --- |

6.

considers that more effective rail systems and, in particular, public service contracts are good for local and regional authorities, given the tight budgetary and financial constraints placed on them;

| 7. | points out that the principle of free administration enables local authorities to decide how they want to organise their public transport services. In this regard, Article 5.2 must not be called into question because it allows an internal operator to be used; sees the introduction of ceilings for direct award which are too low as a dramatic limitation of the principle of local and regional authority free administration; |
| --- | --- |

7.

points out that the principle of free administration enables local authorities to decide how they want to organise their public transport services. In this regard, Article 5.2 must not be called into question because it allows an internal operator to be used; sees the introduction of ceilings for direct award which are too low as a dramatic limitation of the principle of local and regional authority free administration;

| 8. | emphasises that public transport must be affordable; |
| --- | --- |

8.

emphasises that public transport must be affordable;

The regulatory framework

Public transport plans

| 9. | calls for public transport plans to provide operators and users of all modes of transport with adequate visibility and safety, in order to facilitate intermodality. They must take account of social and territorial cohesion issues and of sustainable development; |
| --- | --- |

9.

calls for public transport plans to provide operators and users of all modes of transport with adequate visibility and safety, in order to facilitate intermodality. They must take account of social and territorial cohesion issues and of sustainable development;

| 10. | supports the European Commission's call for transport plans to cover all modes of transport. It must be possible for the local authorities responsible to adjust them, as changes in circumstances of various kinds can affect them. Effective cross-border cooperation between the relevant authorities must also be fostered and guaranteed, for example through EGTCs, so that they can coordinate their transport plans for the different modes; |
| --- | --- |

10.

supports the European Commission's call for transport plans to cover all modes of transport. It must be possible for the local authorities responsible to adjust them, as changes in circumstances of various kinds can affect them. Effective cross-border cooperation between the relevant authorities must also be fostered and guaranteed, for example through EGTCs, so that they can coordinate their transport plans for the different modes;

| 11. | calls for the obligations imposed on local authorities in connection with the implementation of transport plans not to entail excessive organisational or financial burdens; |
| --- | --- |

11.

calls for the obligations imposed on local authorities in connection with the implementation of transport plans not to entail excessive organisational or financial burdens;

Social dimension

| 12. | welcomes the references made to the social dimension. They must however be made more specific in order to minimise the risk of social dumping. On the other hand, they must not place obstacles in the path of greater competitiveness in the rail sector, and should encourage multiskilling among personnel; |
| --- | --- |

12.

welcomes the references made to the social dimension. They must however be made more specific in order to minimise the risk of social dumping. On the other hand, they must not place obstacles in the path of greater competitiveness in the rail sector, and should encourage multiskilling among personnel;

Provider selection methods

| 13. | notes that the award of contracts by competitive tendering may, in certain circumstances, generate efficiency gains and savings for the relevant authorities, for equivalent or even better service provision; |
| --- | --- |

13.

notes that the award of contracts by competitive tendering may, in certain circumstances, generate efficiency gains and savings for the relevant authorities, for equivalent or even better service provision;

| 14. | calls, however, for local authorities to retain the option of choosing between competitive tendering (partially or fully opening up the public service contract), direct labour contracts and direct award. In order to prevent monopolistic tendencies, direct award must be more strictly regulated, in particular in accordance with provision quality criteria and not price alone. The challenge for the organising authorities will be to achieve price transparency regarding the services provided, by means of market contestability; |
| --- | --- |

14.

calls, however, for local authorities to retain the option of choosing between competitive tendering (partially or fully opening up the public service contract), direct labour contracts and direct award. In order to prevent monopolistic tendencies, direct award must be more strictly regulated, in particular in accordance with provision quality criteria and not price alone. The challenge for the organising authorities will be to achieve price transparency regarding the services provided, by means of market contestability;

| 15. | stresses that a flexible approach to the choice of transport operator by the competent local authorities, including regions, should take account of the degree of development of the regional transport market in individual Member States; |
| --- | --- |

15.

stresses that a flexible approach to the choice of transport operator by the competent local authorities, including regions, should take account of the degree of development of the regional transport market in individual Member States;

| 16. | has doubts about how real the opening up to competition is when some calls for tender involve very little competition; calls on the Commission to clarify the criteria for the genuine introduction of competition, based in particular on the administrative costs of responding to calls for tender or the duration of the contracts offered by the competent authorities; |
| --- | --- |

16.

has doubts about how real the opening up to competition is when some calls for tender involve very little competition; calls on the Commission to clarify the criteria for the genuine introduction of competition, based in particular on the administrative costs of responding to calls for tender or the duration of the contracts offered by the competent authorities;

| 17. | emphasises that rail operators providing a public service must also be responsible for the accuracy of the information provided under the tendering procedure for the renewal or transfer of the contract, within the bounds of business confidentiality; |
| --- | --- |

17.

emphasises that rail operators providing a public service must also be responsible for the accuracy of the information provided under the tendering procedure for the renewal or transfer of the contract, within the bounds of business confidentiality;

Access to the rolling stock market

| 18. | recognises that acquisition of rolling stock can act as a barrier to entry; |
| --- | --- |

18.

recognises that acquisition of rolling stock can act as a barrier to entry;

| 19. | would not rule out any method of guaranteeing cover of the residual value of rolling stock; |
| --- | --- |

19.

would not rule out any method of guaranteeing cover of the residual value of rolling stock;

State Aid

| 20. | points out that the Parliament and the Council have already made it clear that they would reject removal of Article 9 of the current regulation; |
| --- | --- |

20.

points out that the Parliament and the Council have already made it clear that they would reject removal of Article 9 of the current regulation;

| 21. | agrees with the Parliament and the Council in opposing mandatory, systematic notification of all contributions to public transport services, given the specific features of the transport sector; |
| --- | --- |

21.

agrees with the Parliament and the Council in opposing mandatory, systematic notification of all contributions to public transport services, given the specific features of the transport sector;

B.   
  Opening up of the markets and governance

| 22. | believes that, once an open and level playing field for European rail undertakings and the absence of distortion of competition on the market are strictly ensured, Member States should enjoy a certain amount of freedom to organise and develop their rail system according to the separation model or the integrated undertakings model; |
| --- | --- |

22.

believes that, once an open and level playing field for European rail undertakings and the absence of distortion of competition on the market are strictly ensured, Member States should enjoy a certain amount of freedom to organise and develop their rail system according to the separation model or the integrated undertakings model;

| 23. | welcomes the stronger role for infrastructure managers with a view to rationalising the rail system. Infrastructure managers must provide a one-stop shop for access to the network, particularly with regard to the organising authorities. Their management or supervisory boards must therefore include a group of representatives of the regional organising authorities; |
| --- | --- |

23.

welcomes the stronger role for infrastructure managers with a view to rationalising the rail system. Infrastructure managers must provide a one-stop shop for access to the network, particularly with regard to the organising authorities. Their management or supervisory boards must therefore include a group of representatives of the regional organising authorities;

| 24. | warmly welcomes the introduction of coordination committees that will supervise the activity of the reinforced infrastructure managers and ensure the efficiency of the entire system. Local authorities must be automatically involved, not only ‘if appropriate’; |
| --- | --- |

24.

warmly welcomes the introduction of coordination committees that will supervise the activity of the reinforced infrastructure managers and ensure the efficiency of the entire system. Local authorities must be automatically involved, not only ‘if appropriate’;

| 25. | urges that contact people be appointed among the infrastructure managers for relations with local and regional authorities; |
| --- | --- |

25.

urges that contact people be appointed among the infrastructure managers for relations with local and regional authorities;

| 26. | points to the mandatory application of the principles of proportionality and subsidiarity, particularly when the Commission wishes to assume new decision-making powers; |
| --- | --- |

26.

points to the mandatory application of the principles of proportionality and subsidiarity, particularly when the Commission wishes to assume new decision-making powers;

| 27. | urges that a European network of infrastructure managers, which is crucial to the operation of a single European railway area and to cross-border coordination, be set up rapidly; |
| --- | --- |

27.

urges that a European network of infrastructure managers, which is crucial to the operation of a single European railway area and to cross-border coordination, be set up rapidly;

| 28. | stresses that station managers must be responsible to local and regional authorities. Stations play an important role in making a region attractive; |
| --- | --- |

28.

stresses that station managers must be responsible to local and regional authorities. Stations play an important role in making a region attractive;

| 29. | notes that liberalisation is not an end in itself: the purpose should be to improve the range and quality of services. Experience of opening up interurban passenger rail markets to competition remains, however, too limited in Europe. This should be encouraged, while safeguarding public services by applying the concept of compromising the economic equilibrium of such services; |
| --- | --- |

29.

notes that liberalisation is not an end in itself: the purpose should be to improve the range and quality of services. Experience of opening up interurban passenger rail markets to competition remains, however, too limited in Europe. This should be encouraged, while safeguarding public services by applying the concept of compromising the economic equilibrium of such services;

| 30. | stresses the need to maintain the current rules which allow firms acting as infrastructure managers and operators providing local services on specific small-scale rail infrastructure to continue their activities under the existing conditions. Such local infrastructure should not exceed 150 km; |
| --- | --- |

30.

stresses the need to maintain the current rules which allow firms acting as infrastructure managers and operators providing local services on specific small-scale rail infrastructure to continue their activities under the existing conditions. Such local infrastructure should not exceed 150 km;

| 31. | welcomes the references made to the social dimension. They must however be made more specific in order to minimise the risk of social dumping. On the other hand, they must not place obstacles in the path of greater competitiveness in the rail sector, and should encourage multiskilling among personnel; |
| --- | --- |

31.

welcomes the references made to the social dimension. They must however be made more specific in order to minimise the risk of social dumping. On the other hand, they must not place obstacles in the path of greater competitiveness in the rail sector, and should encourage multiskilling among personnel;

| 32. | supports stronger powers for regulatory bodies and encourages them to cooperate at European level, especially in assessing compromise of economic equilibrium in a service. Local and regional authorities must also be given reasonable deadlines for referring to regulatory bodies when they have concerns about the maintenance of an equilibrium; |
| --- | --- |

32.

supports stronger powers for regulatory bodies and encourages them to cooperate at European level, especially in assessing compromise of economic equilibrium in a service. Local and regional authorities must also be given reasonable deadlines for referring to regulatory bodies when they have concerns about the maintenance of an equilibrium;

| 33. | points out that ticketing is an integral part of opening up the market. More effective cooperation between railway companies and with the relevant local and regional authorities is necessary in this area; |
| --- | --- |

33.

points out that ticketing is an integral part of opening up the market. More effective cooperation between railway companies and with the relevant local and regional authorities is necessary in this area;

| 34. | considers that the requirement for companies operating national systems to join in a national information system for supply and ticketing (intermodal) should be made mandatory, since the development of associated services is a major factor in boosting the attractiveness of public transport, rail in particular; |
| --- | --- |

34.

considers that the requirement for companies operating national systems to join in a national information system for supply and ticketing (intermodal) should be made mandatory, since the development of associated services is a major factor in boosting the attractiveness of public transport, rail in particular;

C.   
  Technical aspect

| 35. | agrees with the Commission's description of the main problems and constraints of the current European legislative framework in the technical field; |
| --- | --- |

35.

agrees with the Commission's description of the main problems and constraints of the current European legislative framework in the technical field;

| 36. | supports a stronger role for the European Railway Agency based in Valenciennes, with the aim of supporting technical interoperability and harmonisation of ‘safety’ procedures, speeding up the introduction of a single authorisation for placing vehicles in service and strengthening the ERA's powers in order to avoid the major problems resulting from divergences between 26 national authorities. Vehicles that are only to be used within a country could continue to be authorised by national safety authorities; |
| --- | --- |

36.

supports a stronger role for the European Railway Agency based in Valenciennes, with the aim of supporting technical interoperability and harmonisation of ‘safety’ procedures, speeding up the introduction of a single authorisation for placing vehicles in service and strengthening the ERA's powers in order to avoid the major problems resulting from divergences between 26 national authorities. Vehicles that are only to be used within a country could continue to be authorised by national safety authorities;

| 37. | calls however for a transitional period to be envisaged before the ERA is fully operational with regard to its new tasks; |
| --- | --- |

37.

calls however for a transitional period to be envisaged before the ERA is fully operational with regard to its new tasks;

| 38. | supports the Commission's objective of reducing the number of national rules by removing those that are redundant or contrary to EU law and to the technical specifications for interoperability; |
| --- | --- |

38.

supports the Commission's objective of reducing the number of national rules by removing those that are redundant or contrary to EU law and to the technical specifications for interoperability;

| 39. | welcomes certain of the Commission's proposals on the role of the ERA and the establishment within it of an appeals body. The Commission is proposing to strengthen the ERA's role and to make it a one-stop shop for decisions on vehicles and safety certificates for railway companies. Reinforcement and clarification of the Agency's powers, its resources (financial and human) and its responsibility are therefore necessary. The same applies to the appeals body; |
| --- | --- |

39.

welcomes certain of the Commission's proposals on the role of the ERA and the establishment within it of an appeals body. The Commission is proposing to strengthen the ERA's role and to make it a one-stop shop for decisions on vehicles and safety certificates for railway companies. Reinforcement and clarification of the Agency's powers, its resources (financial and human) and its responsibility are therefore necessary. The same applies to the appeals body;

| 40. | calls for the Committee of the Regions to be involved in drawing up the ERA's programmes; |
| --- | --- |

40.

calls for the Committee of the Regions to be involved in drawing up the ERA's programmes;

| 41. | urges that the cost-benefit analyses of interoperability measures not be overlooked, with a particular focus on their impact for local and regional authorities. |
| --- | --- |

41.

urges that the cost-benefit analyses of interoperability measures not be overlooked, with a particular focus on their impact for local and regional authorities.

II.   RECOMMENDATIONS FOR AMENDMENTS

Amendment 1

COM(2013) 28 final

New Recital after Recital 9

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| | The reciprocity principle is an important means to counter distortion of competition; it should be applied to third-country businesses that wish to take part in tenders within the Union. |

Text proposed by the Commission

CoR amendment

The reciprocity principle is an important means to counter distortion of competition; it should be applied to third-country businesses that wish to take part in tenders within the Union.

Reason

Third countries should not be given the opportunity to take part in tenders in EU countries unless they have opened their own markets to EU Member States.

Amendment 2

COM(2013) 28 final

Recital 15

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Preparing railway undertakings for mandatory competitive tendering for public service contracts requires some extra time to allow effective and sustainable internal restructuring of companies to which such contracts were directly awarded in the past. Transitional measures are therefore necessary for contracts directly awarded between the date of entry into force of this Regulation and 3 December 2019. | Preparing railway undertakings for mandatory competitive tendering for public service contracts requires some extra time to allow effective and sustainable internal restructuring of companies to which such contracts were directly awarded in the past. Transitional measures are therefore necessary for contracts directly awarded between the date of entry into force of this Regulation and 3 December 2019. |

Text proposed by the Commission

CoR amendment

Preparing railway undertakings for mandatory competitive tendering for public service contracts requires some extra time to allow effective and sustainable internal restructuring of companies to which such contracts were directly awarded in the past. Transitional measures are therefore necessary for contracts directly awarded between the date of entry into force of this Regulation and 3 December 2019.

Preparing railway undertakings for mandatory competitive tendering for public service contracts requires some extra time to allow effective and sustainable internal restructuring of companies to which such contracts were directly awarded in the past. Transitional measures are therefore necessary for contracts directly awarded between the date of entry into force of this Regulation and 3 December 2019.

Amendment 3

COM(2013) 28 final

Recital 18

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 18. | In the context of amendments to the Regulation (EC) No 994/98 (Enabling Regulation), the Commission proposed also an amendment of Regulation (EC) No 1370/2007 (COM(2012) 730/3). In order to harmonize the approach to block exemption regulations in the field of State aid and, in accordance with the procedures foreseen in Articles 108(4) and 109 of the Treaty, aid for the coordination of transport or reimbursement for the discharge of certain obligations inherent in the concept of a public service as referred to Article 93 of the Treaty should be brought under the scope of the Enabling Regulation. |

Text proposed by the Commission

CoR amendment

18.

In the context of amendments to the Regulation (EC) No 994/98 (Enabling Regulation), the Commission proposed also an amendment of Regulation (EC) No 1370/2007 (COM(2012) 730/3). In order to harmonize the approach to block exemption regulations in the field of State aid and, in accordance with the procedures foreseen in Articles 108(4) and 109 of the Treaty, aid for the coordination of transport or reimbursement for the discharge of certain obligations inherent in the concept of a public service as referred to Article 93 of the Treaty should be brought under the scope of the Enabling Regulation.

| 18. | In the context of amendments to the Regulation (EC) No 994/98 (Enabling Regulation), the Commission proposed also an amendment of Regulation (EC) No 1370/2007 (COM(2012) 730/3). In order to harmonize the approach to block exemption regulations in the field of State aid and, in accordance with the procedures foreseen in Articles 108(4) and 109 of the Treaty, aid for the coordination of transport or reimbursement for the discharge of certain obligations inherent in the concept of a public service as referred to Article 93 of the Treaty should be brought under the scope of the Enabling Regulation. |
| --- | --- |

18.

In the context of amendments to the Regulation (EC) No 994/98 (Enabling Regulation), the Commission proposed also an amendment of Regulation (EC) No 1370/2007 (COM(2012) 730/3). In order to harmonize the approach to block exemption regulations in the field of State aid and, in accordance with the procedures foreseen in Articles 108(4) and 109 of the Treaty, aid for the coordination of transport or reimbursement for the discharge of certain obligations inherent in the concept of a public service as referred to Article 93 of the Treaty should be brought under the scope of the Enabling Regulation.

Reason

Referring to another text for the principle of exemption from the obligation to notify compensations would change the entire structure of the PSO Regulation and would present public passenger transport services with a serious risk of legal uncertainty.

Amendment 4

COM(2013) 28 final

Article 2, point (c)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| c) | ‘competent local authority’ means any competent authority whose geographical area of competence is not national and which covers the transport needs of an urban agglomeration or a rural district; |

Text proposed by the Commission

CoR amendment

c)

‘competent local authority’ means any competent authority whose geographical area of competence is not national and which covers the transport needs of an urban agglomeration or a rural district;

| c) | ‘competent local authority’ means any competent authority whose geographical area of competence is not national
  does not cover the entire territory of a Member State or
  and which covers the transport needs of an
  region or urban agglomeration or a rural district, including at cross-border level; |
| --- | --- |

c)

‘competent local authority’ means any competent authority whose geographical area of competence is not national
  does not cover the entire territory of a Member State or
  and which covers the transport needs of an
  region or urban agglomeration or a rural district, including at cross-border level;

Reason

‘Is not national’ could have two meanings: not covering the entire territory of a Member State, or a competent local authority which may have its territory in two or more Member States. The definition must be clarified in order to keep step with the emergence of organising authorities with cross-border powers.

In addition, regions must be unambiguously covered by the present regulation.

Amendment 5

COM(2013) 28 final

Article 2, point (e)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| e) | The scope of public service obligations shall exclude all public transport services that go beyond of what is necessary to reap local, regional or sub-national network effects. |

Text proposed by the Commission

CoR amendment

e)

The scope of public service obligations shall exclude all public transport services that go beyond of what is necessary to reap local, regional or sub-national network effects.

| e) | The scope of public service obligations shall exclude all public transport services that go beyond of what is necessary to reap local, regional or sub-national network effects.
  (e) The scope of public service obligations shall include all public transport services that produce local, regional or sub-national network effects; these effects may result from combining profitable and unprofitable routes. |
| --- | --- |

e)

The scope of public service obligations shall exclude all public transport services that go beyond of what is necessary to reap local, regional or sub-national network effects.
  (e) The scope of public service obligations shall include all public transport services that produce local, regional or sub-national network effects; these effects may result from combining profitable and unprofitable routes.

Reason

If a regional transport route breaks even or makes a profit, it should be possible to include it in a public service contract with other loss-making routes so that the profits of the former can help to finance the latter, and a solution optimising the technical means needed for operation can be found, where necessary.

Amendment 6

COM(2013) 28 final

Article 2a(1)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 1.   Competent authorities shall establish and regularly update public passenger transport plans covering all relevant transport modes for the territory for which they are responsible. | 1.   Competent authorities shall establish and regularly update public passenger transport plans covering all relevant transport modes for the territory for which they are responsible. These obligations shall apply only to agglomerations of more than 100 000 inhabitants. |
| These public transport plans shall define the objectives of public transport policy and the means to implement them covering all relevant transport modes for the territory for which they are responsible. They shall at least include: | These public transport plans shall define the objectives of public transport policy and the means to implement them covering all relevant transport modes for the territory for which they are responsible. They shall at least include: |
| (a) | the structure of the network or routes; |

Text proposed by the Commission

CoR amendment

1.   Competent authorities shall establish and regularly update public passenger transport plans covering all relevant transport modes for the territory for which they are responsible.

1.   Competent authorities shall establish and regularly update public passenger transport plans covering all relevant transport modes for the territory for which they are responsible. These obligations shall apply only to agglomerations of more than 100 000 inhabitants.

These public transport plans shall define the objectives of public transport policy and the means to implement them covering all relevant transport modes for the territory for which they are responsible. They shall at least include:

These public transport plans shall define the objectives of public transport policy and the means to implement them covering all relevant transport modes for the territory for which they are responsible. They shall at least include:

(a)

the structure of the network or routes;

| (a) | the structure of the network or routes; |
| --- | --- |

(a)

the structure of the network or routes;

| (b) | basic requirements to be fulfilled by public transport offer such as accessibility, territorial connectivity, security, modal and intermodal interconnections at main connecting hubs, offer characteristics such as times of operation, frequency of services and minimum degree of capacity utilisation; |
| --- | --- |

(b)

basic requirements to be fulfilled by public transport offer such as accessibility, territorial connectivity, security, modal and intermodal interconnections at main connecting hubs, offer characteristics such as times of operation, frequency of services and minimum degree of capacity utilisation;

| (b) | basic requirements to be fulfilled by public transport offer such as accessibility, territorial connectivity, security, modal and intermodal interconnections at main connecting hubs, offer characteristics such as the principles governing timetabling
  times of operation,
  and frequency of services and minimum degree of capacity utilisation; |
| --- | --- |

(b)

basic requirements to be fulfilled by public transport offer such as accessibility, territorial connectivity, security, modal and intermodal interconnections at main connecting hubs, offer characteristics such as the principles governing timetabling
  times of operation,
  and frequency of services and minimum degree of capacity utilisation;

| (c) | quality standards related to items such as equipment features of stops and of rolling stock, punctuality and reliability, cleanliness, customer service and information, complaint handling and redress, monitoring of service quality; |
| --- | --- |

(c)

quality standards related to items such as equipment features of stops and of rolling stock, punctuality and reliability, cleanliness, customer service and information, complaint handling and redress, monitoring of service quality;

| (c) | quality standards related to items such as equipment features of stops and of rolling stock, punctuality and reliability, cleanliness, customer service and information, complaint handling and redress, monitoring of service quality; |
| --- | --- |

(c)

quality standards related to items such as equipment features of stops and of rolling stock, punctuality and reliability, cleanliness, customer service and information, complaint handling and redress, monitoring of service quality;

| (d) | principles of tariff policy; |
| --- | --- |

(d)

principles of tariff policy;

| (d) | principles of tariff policy; |
| --- | --- |

(d)

principles of tariff policy;

| (e) | operational requirements such as transport of bicycles, traffic management, contingency plan in case of disturbances. |
| --- | --- |

(e)

operational requirements such as transport of bicycles, traffic management, contingency plan in case of disturbances.

| (e) | operational requirements such as transport of bicycles, traffic management, contingency plan in case of disturbances.; |
| --- | --- |

(e)

operational requirements such as transport of bicycles, traffic management, contingency plan in case of disturbances.;

| (f) | social and territorial cohesion requirements. |
| --- | --- |

(f)

social and territorial cohesion requirements.

In establishing public transport plans, competent authorities shall have regard in particular to applicable rules regarding passenger rights, social, employment and environmental protection.

In establishing public transport plans, competent authorities shall have regard in particular to applicable rules regarding passenger rights, social, employment and environmental protection in order to prevent dumping in these areas.

Public transport plans must be submitted to the regulatory body for consultation only, one month before publication.

The competent authorities shall cooperate in coordinating the information contained in their respective public transport plans, and shall draw up common transport plans for cross-border regional transport services.

The competent authorities shall adopt the public transport plans after consultation of relevant stakeholders and publish them. For the purpose of this Regulation, relevant stakeholders to be taken into consideration are at least transport operators, infrastructure managers if appropriate, and representative passenger and employee organisations.

The competent authorities shall adopt the public transport plans after consultation of relevant stakeholders and publish them. For the purpose of this Regulation, relevant stakeholders to be taken into consideration are at least transport operators, infrastructure managers if appropriate, and representative passenger and employee organisations.

Previous or present public service providers shall be required to provide the competent authorities with the necessary data within one month following the request from such authorities, even if they are authorities of a neighbouring Member State.

Reason

Public passenger transport plans can represent heavy extra obligations, but have no effect on mainline trains governed by regional planning agreements. The proposed amendment suggests limiting the obligation to agglomerations of a certain size only.

Given the complexity and volatility (for reasons beyond the control of the competent authorities) of operating timetables, it is more realistic to mention the principles governing timetabling in transport plans.

For little-used lines, a commitment to a minimum degree of capacity utilisation could have a negative impact on the relevant public service and would therefore act against the interests of the competent authority.

Both intermodality and cross-border cooperation should be encouraged.

Public transport plans require accurate data on the market evolution of different transport modes. Market operators are the main source of information and must share data with the public authorities.

Amendment 7

COM(2013) 28 final

Article 2a(4)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The specifications of public service obligations and the related compensation of the net financial effect of public service obligations shall: | The specifications of public service obligations and the related compensation of the net financial effect of public service obligations shall: |
| (a) | achieve the objectives of the public transport plan in the most cost-effective manner; |

Text proposed by the Commission

CoR amendment

The specifications of public service obligations and the related compensation of the net financial effect of public service obligations shall:

The specifications of public service obligations and the related compensation of the net financial effect of public service obligations shall:

(a)

achieve the objectives of the public transport plan in the most cost-effective manner;

| (a) | achieve the objectives of the public transport plan in the most cost-effective manner; |
| --- | --- |

(a)

achieve the objectives of the public transport plan in the most cost-effective manner;

Amendment 8

COM(2013) 28 final

Article 4(8)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 8.   Competent authorities shall make available to all interested parties relevant information for the preparation of an offer under a competitive tender procedure. | 8.   Competent authorities shall make available to all interested parties relevant information for the preparation of an offer under a competitive tender procedure. The rail infrastructure managers, the railway companies which perform or have performed the public service contract, must help the competent authorities to provide all relevant data. They are responsible for the accuracy of the data supplied to the competent authority. |
| This shall include information on passenger demand, fares, costs and revenues related to the public passenger transport covered by the tender and details of the infrastructure specifications relevant for the operation of the required vehicles or rolling stock to enable them to draft well informed business plans. Rail infrastructure managers shall support competent authorities in providing all relevant infrastructure specifications. | This shall include information on passenger demand, fares, costs and revenues related to the public passenger transport covered by the tender and details of the infrastructure specifications relevant for the operation of the required vehicles or rolling stock to enable them to draft well informed business plans. Rail infrastructure managers shall support competent authorities in providing all relevant infrastructure specifications. |
| Non-compliance with the provisions set out above shall be subject to the legal review provided for in Article 5(7). | Non-compliance with the provisions set out above shall be subject to the legal review provided for in Article 5(7). |
| | The current operator of a line or network which is submitted to competitive tendering must provide the competent authority with the data necessary for the preparation of the tender procedure, free of charge; such data must be full and accurate, particularly regarding demand for travel and income generated by passenger transport, within the bounds of business confidentiality. |
| | The former operator and the infrastructure manager must compensate other operators for any loss caused by offers made on the basis of incorrect or incomplete data. |

Text proposed by the Commission

CoR amendment

8.   Competent authorities shall make available to all interested parties relevant information for the preparation of an offer under a competitive tender procedure.

8.   Competent authorities shall make available to all interested parties relevant information for the preparation of an offer under a competitive tender procedure. The rail infrastructure managers, the railway companies which perform or have performed the public service contract, must help the competent authorities to provide all relevant data. They are responsible for the accuracy of the data supplied to the competent authority.

This shall include information on passenger demand, fares, costs and revenues related to the public passenger transport covered by the tender and details of the infrastructure specifications relevant for the operation of the required vehicles or rolling stock to enable them to draft well informed business plans. Rail infrastructure managers shall support competent authorities in providing all relevant infrastructure specifications.

This shall include information on passenger demand, fares, costs and revenues related to the public passenger transport covered by the tender and details of the infrastructure specifications relevant for the operation of the required vehicles or rolling stock to enable them to draft well informed business plans. Rail infrastructure managers shall support competent authorities in providing all relevant infrastructure specifications.

Non-compliance with the provisions set out above shall be subject to the legal review provided for in Article 5(7).

Non-compliance with the provisions set out above shall be subject to the legal review provided for in Article 5(7).

The current operator of a line or network which is submitted to competitive tendering must provide the competent authority with the data necessary for the preparation of the tender procedure, free of charge; such data must be full and accurate, particularly regarding demand for travel and income generated by passenger transport, within the bounds of business confidentiality.

The former operator and the infrastructure manager must compensate other operators for any loss caused by offers made on the basis of incorrect or incomplete data.

Reason

Infrastructure manager data are not sufficient, as they do not include the rail operator's commercial data. Previous and/or current providers — particularly incumbent operators — must supply data in order to ensure non-discriminatory access to information. It is essential to ensure consistency in this way: otherwise competent authorities may be subject to obligations that they cannot fulfil.

Amendment 9

COM(2013) 28 final

Article 5, new paragraph after paragraph 3

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| | The competent authorities may exclude third-country operators from a competitive tender procedure if these third countries do not provide competitive tender procedures for companies from the EU Member States. |

Text proposed by the Commission

CoR amendment

The competent authorities may exclude third-country operators from a competitive tender procedure if these third countries do not provide competitive tender procedures for companies from the EU Member States.

Reason

Third countries should not be given the opportunity to take part in tenders in EU countries unless they have opened their own markets to EU Member States.

Amendment 10

COM(2013) 28 final

Article 5(4)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 4.   Unless prohibited by national law, the competent authorities may decide to award public service contracts directly | 4.   Unless prohibited by national law, the competent authorities may decide to award public service contracts directly |
| (a) | where their average annual value is estimated at: less than EUR 1 000 000 or less than EUR 5 000 000 in the case of a public service contract including public transport by rail or, |

Text proposed by the Commission

CoR amendment

4.   Unless prohibited by national law, the competent authorities may decide to award public service contracts directly

4.   Unless prohibited by national law, the competent authorities may decide to award public service contracts directly

(a)

where their average annual value is estimated at: less than EUR 1 000 000 or less than EUR 5 000 000 in the case of a public service contract including public transport by rail or,

| (a) | where their average annual value is estimated at: less than EUR 1 000 000 or less than EUR 5 000 000 in the case of a public service contract including public transport by rail or, |
| --- | --- |

(a)

where their average annual value is estimated at: less than EUR 1 000 000 or less than EUR 5 000 000 in the case of a public service contract including public transport by rail or,

| (b) | where they concern the annual provision of less than 300 000 kilometres of public passenger transport services or less than 150 000 kilometres in the case of a public service contract including public transport by rail. |
| --- | --- |

(b)

where they concern the annual provision of less than 300 000 kilometres of public passenger transport services or less than 150 000 kilometres in the case of a public service contract including public transport by rail.

| (b) | where they concern the annual provision of less than 300 000 kilometres of public passenger transport services or less than 150 000
  500 000 kilometres in the case of a public service contract including public transport by rail. |
| --- | --- |

(b)

where they concern the annual provision of less than 300 000 kilometres of public passenger transport services or less than 150 000
  500 000 kilometres in the case of a public service contract including public transport by rail.

Reason

The annual 150 000 km by rail threshold proposed by the Commission effectively excludes all rail lines where this mode would be relevant. The 500 000 km threshold allows exceptions to the competitive tendering rule to be restricted to single lines of a relevant length for the rail mode and with a viable service level for the rail mode.

Amendment 11

COM(2013) 28 final

Article 5, new paragraph after paragraph 4

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| | The decision to award services directly must be transmitted within two months for consultation to the regulatory body defined in Article 55 of Directive 2012/34/EC. |

Text proposed by the Commission

CoR amendment

The decision to award services directly must be transmitted within two months for consultation to the regulatory body defined in Article 55 of Directive 2012/34/EC.

Reason

This new paragraph allows for involvement of the competent regulatory body in the process of organising rail transport, without limiting the powers of the competent local bodies to directly award services to internal providers. At the same time, this paragraph frames the conditions for awarding services directly in such a way as to limit oligopolistic positions.

Amendment 12

COM(2013) 28 final

Article 5, new paragraph after paragraph 6

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| | Unless prohibited by national law, competent authorities may decide to make direct awards of public service contracts where they concern transport by rail, with the exception of other track-based modes such as metros or trams. In derogation from Article 4(3), such contracts shall not exceed 10 years, except where Article 4(4) applies. |
| | However, if the contract has already been awarded directly and service quality indicators fall by more than an average of 10 % over the duration of the contract for reasons within the control of the body providing public services, it shall be subject to competitive tendering upon expiry. Six months after adoption of the present regulation, the European Commission shall define the quality by means of delegated acts, in accordance with a series of performance indicators, including punctuality. |

Text proposed by the Commission

CoR amendment

Unless prohibited by national law, competent authorities may decide to make direct awards of public service contracts where they concern transport by rail, with the exception of other track-based modes such as metros or trams. In derogation from Article 4(3), such contracts shall not exceed 10 years, except where Article 4(4) applies.

However, if the contract has already been awarded directly and service quality indicators fall by more than an average of 10 % over the duration of the contract for reasons within the control of the body providing public services, it shall be subject to competitive tendering upon expiry. Six months after adoption of the present regulation, the European Commission shall define the quality by means of delegated acts, in accordance with a series of performance indicators, including punctuality.

Reason

The option of direct award should be restored, but placing time limits on it. If it does not work satisfactorily, the competent authority must automatically switch back to competitive tendering.

Amendment 13

COM(2013) 28 final

Article 5a(2)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| [...] | [...] |
| The competent authority may comply with the requirement set out in the first subparagraph in one of the following ways: | The competent authority may comply with the requirement set out in the first subparagraph in one of the following ways
  various ways that facilitate economies of scale, such as: |
| (a) | by acquiring itself the rolling stock used for the execution of the public service contract with a view to making it available to the selected public service operator at market price or as part of the public service contract pursuant to Article 4(1) (b), Article 6 and, if applicable, to the Annex, |

Text proposed by the Commission

CoR amendment

[...]

[...]

The competent authority may comply with the requirement set out in the first subparagraph in one of the following ways:

The competent authority may comply with the requirement set out in the first subparagraph in one of the following ways
  various ways that facilitate economies of scale, such as:

(a)

by acquiring itself the rolling stock used for the execution of the public service contract with a view to making it available to the selected public service operator at market price or as part of the public service contract pursuant to Article 4(1) (b), Article 6 and, if applicable, to the Annex,

| (a) | by acquiring itself the rolling stock used for the execution of the public service contract with a view to making it available to the selected public service operator at market price or as part of the public service contract pursuant to Article 4(1) (b), Article 6 and, if applicable, to the Annex, |
| --- | --- |

(a)

by acquiring itself the rolling stock used for the execution of the public service contract with a view to making it available to the selected public service operator at market price or as part of the public service contract pursuant to Article 4(1) (b), Article 6 and, if applicable, to the Annex,

| (b) | by providing a guarantee for the financing of the rolling stock used for the execution of the public service contract at market price or as part of the public service contract pursuant to Article 4(1)(b), Article 6 and, if applicable, to the Annex. Such a guarantee may cover the residual value risk while respecting the relevant state aid rules when applicable, |
| --- | --- |

(b)

by providing a guarantee for the financing of the rolling stock used for the execution of the public service contract at market price or as part of the public service contract pursuant to Article 4(1)(b), Article 6 and, if applicable, to the Annex. Such a guarantee may cover the residual value risk while respecting the relevant state aid rules when applicable,

| (b) | by providing a guarantee for the financing of the rolling stock used for the execution of the public service contract at market price or as part of the public service contract pursuant to Article 4(1)(b), Article 6 and, if applicable, to the Annex. Such a guarantee may cover the residual value risk while respecting the relevant state aid rules when applicable, |
| --- | --- |

(b)

by providing a guarantee for the financing of the rolling stock used for the execution of the public service contract at market price or as part of the public service contract pursuant to Article 4(1)(b), Article 6 and, if applicable, to the Annex. Such a guarantee may cover the residual value risk while respecting the relevant state aid rules when applicable,

| (c) | by committing in the public service contract to take over of the rolling stock at the end of the contract at market price. |
| --- | --- |

(c)

by committing in the public service contract to take over of the rolling stock at the end of the contract at market price.

| (c) | by committing in the public service contract to take over of the rolling stock at the end of the contract at market price., |
| --- | --- |

(c)

by committing in the public service contract to take over of the rolling stock at the end of the contract at market price.,

| (d) | by cooperating with neighbouring local authorities in order to create a larger pool of rolling stock, |
| --- | --- |

(d)

by cooperating with neighbouring local authorities in order to create a larger pool of rolling stock,

| (e) | by applying to their Member State for a contribution to one of the methods for covering the residual value of rolling stock. |
| --- | --- |

(e)

by applying to their Member State for a contribution to one of the methods for covering the residual value of rolling stock.

[...]

[...]

Reason

We should not exclude any local method of financing (e.g. guarantees, take-overs, direct purchase, or others). This does not however mean that governments can shrug off their responsibilities and unduly shift the burden onto local authorities. The legislative and regulatory framework must be such as to stimulate the market for rolling-stock favouring, for example, economies of scale and suitable financial packages.

Amendment 14

COM(2013) 28 final

Article 8(b)2a

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 2a   Public service contracts for public passenger transport by rail directly awarded between 1 January 2013 and 2 December 2019 may continue until their expiry date. However they shall, in any event, not continue after 31 December 2022. | 2a   Public service contracts for public passenger transport by rail directly awarded between 1 January 2013
  the date on which this regulation enters into force and 2 December 2019 may continue until their expiry date. However they shall, in any event, not continue after 31 December 2022. This shall not apply to contracts entered into before the entry into force of this regulation. |

Text proposed by the Commission

CoR amendment

2a   Public service contracts for public passenger transport by rail directly awarded between 1 January 2013 and 2 December 2019 may continue until their expiry date. However they shall, in any event, not continue after 31 December 2022.

2a   Public service contracts for public passenger transport by rail directly awarded between 1 January 2013
  the date on which this regulation enters into force and 2 December 2019 may continue until their expiry date. However they shall, in any event, not continue after 31 December 2022. This shall not apply to contracts entered into before the entry into force of this regulation.

Reason

The date of entry into force of the revised regulation should be the date when the proposed changes enter into force. This provision should not apply to contracts entered into before that date.

Amendment 15

COM(2013) 29 final

Recital 10

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The existing requirements of Directive 2012/34/EU only include legal, organisational and decision-making independence. This does not entirely exclude the possibility of maintaining an integrated undertaking, as long as these three categories of independence are ensured. Concerning the decision-making independence it must be ensured that the appropriate safeguards exclude control of an integrated undertaking over the decision-making of an infrastructure manager. However, even the full application of such safeguards does not completely remove all the possibilities for discriminatory behaviour towards competitors which exist in the presence of a vertically integrated undertaking. In particular, the potential for cross-subsidisation still exists in integrated structures, or at least it is very difficult for regulatory bodies to control and enforce safeguards which are established to prevent such cross-subsidisation. An institutional separation of infrastructure management and transport operation is the most effective measure to solve these problems. | The existing requirements of Directive 2012/34/EU only include legal, organisational and decision-making independence. This does not entirely exclude the possibility of maintaining an integrated undertaking, as long as the
  these three categories of independence of the manager from operators is preserved regarding the essential functions, which are decision-making on train path allocation and on infrastructure charging, stations, investment and maintenance
  are ensured. Concerning the decision-making independence it must be ensured that the appropriate safeguards exclude control of an integrated undertaking over the decision-making of an infrastructure manager. However, even the full application of such safeguards does not completely remove all the possibilities for discriminatory behaviour towards competitors which exist in the presence of a vertically integrated undertaking. In particular, the potential for cross-subsidisation still exists in integrated structures, or at least it is very difficult for regulatory bodies to control and enforce safeguards which are established to prevent such cross-subsidisation. An institutional separation of infrastructure management and transport operation is the most effective measure to solve these problems. |

Text proposed by the Commission

CoR amendment

The existing requirements of Directive 2012/34/EU only include legal, organisational and decision-making independence. This does not entirely exclude the possibility of maintaining an integrated undertaking, as long as these three categories of independence are ensured. Concerning the decision-making independence it must be ensured that the appropriate safeguards exclude control of an integrated undertaking over the decision-making of an infrastructure manager. However, even the full application of such safeguards does not completely remove all the possibilities for discriminatory behaviour towards competitors which exist in the presence of a vertically integrated undertaking. In particular, the potential for cross-subsidisation still exists in integrated structures, or at least it is very difficult for regulatory bodies to control and enforce safeguards which are established to prevent such cross-subsidisation. An institutional separation of infrastructure management and transport operation is the most effective measure to solve these problems.

The existing requirements of Directive 2012/34/EU only include legal, organisational and decision-making independence. This does not entirely exclude the possibility of maintaining an integrated undertaking, as long as the
  these three categories of independence of the manager from operators is preserved regarding the essential functions, which are decision-making on train path allocation and on infrastructure charging, stations, investment and maintenance
  are ensured. Concerning the decision-making independence it must be ensured that the appropriate safeguards exclude control of an integrated undertaking over the decision-making of an infrastructure manager. However, even the full application of such safeguards does not completely remove all the possibilities for discriminatory behaviour towards competitors which exist in the presence of a vertically integrated undertaking. In particular, the potential for cross-subsidisation still exists in integrated structures, or at least it is very difficult for regulatory bodies to control and enforce safeguards which are established to prevent such cross-subsidisation. An institutional separation of infrastructure management and transport operation is the most effective measure to solve these problems.

Reason

The Commission is working on the ideological assumption that a total separation of activities is the best possible solution. This is purely an ideological assumption and has no place in the draft directive, which should remain neutral on this issue.

Amendment 16

COM(2013) 29 final

Article 6(2)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The European Commission proposes deleting Article 6 (2) of Directive 2012/34/EU. | Keep Article 6 (2) of Directive 2012/34/EU, to read as follows: |
| | In order to avoid disproportionate transaction costs, Member States may provide that this separation shall require the organisation of distinct divisions within a single undertaking, provided that the undertaking in question has fewer than 3 000 employees and that its activities are limited to local transport, over an infrastructure of less than 150 km. |

Text proposed by the Commission

CoR amendment

The European Commission proposes deleting Article 6 (2) of Directive 2012/34/EU.

Keep Article 6 (2) of Directive 2012/34/EU, to read as follows:

In order to avoid disproportionate transaction costs, Member States may provide that this separation shall require the organisation of distinct divisions within a single undertaking, provided that the undertaking in question has fewer than 3 000 employees and that its activities are limited to local transport, over an infrastructure of less than 150 km.

Reason

With regard to the institutional separation of infrastructure management from the operation of transport services, it is recommended that the current rules be retained for companies whose activities are limited to the provision of regional services. It should be realised that, in the case of small entities providing services on specific infrastructure, this institutional separation could mean significant fragmentation of companies and a rise in operating costs, and thus in the compensation paid from public resources.

Amendment 17

COM(2013) 29 final

Article 7(1)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Member States shall ensure that the infrastructure manager performs all the functions referred to in Article 3(2) and is independent from any railway undertaking. | Member States shall ensure that the infrastructure manager performs all the functions referred to in Article 3(2) and is independent from any railway undertaking with respect to essential functions, which are decision-making on train path allocation and on infrastructure charging, stations, investment and maintenance. |
| To guarantee the independence of the infrastructure manager, Member States shall ensure that infrastructure managers are organised in an entity that is legally distinct from any railway undertaking. | To guarantee the independence of the infrastructure manager, Member States shall ensure that infrastructure managers are organised in an entity that is legally distinct from any railway undertaking.
  may act as they see fit in accordance with the subsidiarity principle. |

Text proposed by the Commission

CoR amendment

Member States shall ensure that the infrastructure manager performs all the functions referred to in Article 3(2) and is independent from any railway undertaking.

Member States shall ensure that the infrastructure manager performs all the functions referred to in Article 3(2) and is independent from any railway undertaking with respect to essential functions, which are decision-making on train path allocation and on infrastructure charging, stations, investment and maintenance.

To guarantee the independence of the infrastructure manager, Member States shall ensure that infrastructure managers are organised in an entity that is legally distinct from any railway undertaking.

To guarantee the independence of the infrastructure manager, Member States shall ensure that infrastructure managers are organised in an entity that is legally distinct from any railway undertaking.
  may act as they see fit in accordance with the subsidiarity principle.

Amendment 18

COM(2013) 29 final

Article 7(5)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Where on the date of entry into force of this Directive, the infrastructure manager belongs to a vertically integrated undertaking, Member States may decide not to apply paragraphs 2 to 4 of this Article. In such case, the Member State concerned shall ensure that the infrastructure manager performs all the functions referred to in Article 3(2) and has effective organisational and decision-making independence from any railway undertaking in accordance with the requirements set in Articles 7a to 7c. | Where on the date of entry into force of this Directive, the infrastructure manager belongs to a vertically integrated undertaking,
  The Member States may decide not to apply paragraphs 2 to 4 of this Article. In such case, the Member State concerned shall ensure that the infrastructure manager performs all the functions referred to in Article 3(2) and has effective organisational and decision-making independence from any railway undertaking in accordance with the requirements set in Articles 7a to 7c. |

Text proposed by the Commission

CoR amendment

Where on the date of entry into force of this Directive, the infrastructure manager belongs to a vertically integrated undertaking, Member States may decide not to apply paragraphs 2 to 4 of this Article. In such case, the Member State concerned shall ensure that the infrastructure manager performs all the functions referred to in Article 3(2) and has effective organisational and decision-making independence from any railway undertaking in accordance with the requirements set in Articles 7a to 7c.

Where on the date of entry into force of this Directive, the infrastructure manager belongs to a vertically integrated undertaking,
  The Member States may decide not to apply paragraphs 2 to 4 of this Article. In such case, the Member State concerned shall ensure that the infrastructure manager performs all the functions referred to in Article 3(2) and has effective organisational and decision-making independence from any railway undertaking in accordance with the requirements set in Articles 7a to 7c.

Reason

Allows for a return to an integrated model regardless of the situation when the Directive enters into force.

Amendment 19

COM(2013) 29 final

Article 7b(3)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 3.   The infrastructure manager shall have a Supervisory Board which is composed of representatives of the ultimate owners of the vertically integrated undertaking. | 3.   The infrastructure manager shall have a Supervisory Board which is composed of representatives of the ultimate owners of the vertically integrated undertaking and of representatives of the competent local and regional authorities if they are not already members of the infrastructure manager's management board. |
| [...] | [...] |

Text proposed by the Commission

CoR amendment

3.   The infrastructure manager shall have a Supervisory Board which is composed of representatives of the ultimate owners of the vertically integrated undertaking.

3.   The infrastructure manager shall have a Supervisory Board which is composed of representatives of the ultimate owners of the vertically integrated undertaking and of representatives of the competent local and regional authorities if they are not already members of the infrastructure manager's management board.

[...]

[...]

Reason

Local and regional authorities are fully-fledged actors in the rail system. They must consequently be involved in decision-making bodies or bodies supervising infrastructure managers which have a natural monopoly. They are the link between the operators and the final users, whose needs they know.

Amendment 20

COM(2013) 29 final

Article 7b(5)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 5.   [...] Transfers of staff other than those referred to under point (c) between the infrastructure manager and the other legal entities within the vertically integrated undertaking shall only be possible if it can be ensured that sensitive information will not be passed on between them. | 5.   [...] Transfers of staff other than those referred to under point (c) between the infrastructure manager and the other legal entities within the vertically integrated undertaking shall only be possible.
  if it can be ensured that sensitive information will not be passed on between them. The staff concerned will nevertheless be bound by trade secrecy requirements in relation to their previous activities, in accordance with commercial law practice. |

Text proposed by the Commission

CoR amendment

5.   [...] Transfers of staff other than those referred to under point (c) between the infrastructure manager and the other legal entities within the vertically integrated undertaking shall only be possible if it can be ensured that sensitive information will not be passed on between them.

5.   [...] Transfers of staff other than those referred to under point (c) between the infrastructure manager and the other legal entities within the vertically integrated undertaking shall only be possible.
  if it can be ensured that sensitive information will not be passed on between them. The staff concerned will nevertheless be bound by trade secrecy requirements in relation to their previous activities, in accordance with commercial law practice.

Reason

Application of the principle of proportionality: the concept of sensitive information is too vague to prevent internal mobility within rail groups. Periods of absence and other ‘Chinese walls’ will be enough to ensure that sensitive information does not pass between the different parts of a single rail group. As is normal practice under commercial law, such staff must however be required to comply with commercial confidentiality.

Amendment 21

COM(2013) 29 final

Article 7b, new paragraph after paragraph 7

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| | The European Commission must, before 1 January 2019, introduce specific provisions for mobile workers in order to prevent wage competition and dumping, and consider the option of specific certification for on-board staff. |

Text proposed by the Commission

CoR amendment

The European Commission must, before 1 January 2019, introduce specific provisions for mobile workers in order to prevent wage competition and dumping, and consider the option of specific certification for on-board staff.

Reason

The wage competition and dumping that have taken place in the road and maritime transport sectors must be avoided.

Amendment 22

COM(2013) 29 final

Article 7c

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Procedure of verification of compliance | Procedure of verification of compliance |
| 1.   Upon request of a Member State or on its own initiative, the Commission shall decide whether infrastructure managers which are part of a vertically integrated undertaking fulfil the requirements of Article 7a and Article 7b and whether the implementation of these requirements is appropriate to ensure a level playing field for all railway undertakings and the absence of distortion of competition in the relevant market. | 1.   Upon request of a Member State or on its own initiative, the Commission shall decide whether infrastructure managers which are part of a vertically integrated undertaking fulfil the requirements of Articles 7, 7a and Article 7b and whether the implementation of these requirements is appropriate to ensure a level playing field for all railway undertakings and the absence of distortion of competition in the relevant market. |
| 2.   The Commission shall be entitled to require all necessary information within a reasonable deadline from the Member State where the vertically integrated undertaking is established. The Commission shall consult the regulatory body or bodies concerned and, if appropriate, the network of regulatory bodies referred to in Article 57. | 2.   The Commission shall be entitled to require all necessary information within a reasonable deadline from the Member State concerned
  where the vertically integrated undertaking is established. The Commission shall consult the regulatory body or bodies concerned, the competent authorities concerned and, if appropriate, the network of regulatory bodies referred to in Article 57. |
| 3.   Member States may limit the rights of access provided for in Article 10 to railway undertakings which are part of the vertically integrated undertaking to which the infrastructure manager concerned belongs, if the Commission informs Member States that no request has been made in accordance with paragraph 1 or pending the examination of the request by the Commission or if it decides, in accordance with the procedure referred to in Article 62(2), that: | 3.   Member States may limit the rights of access provided for in Article 10 to railway undertakings which are part of the vertically integrated undertaking to which the infrastructure manager concerned belongs, if the Commission informs Member States that no request has been made in accordance with paragraph 1 or pending the examination of the request by the Commission or if it decides, in accordance with the procedure referred to in Article 62(2), that: |
| (a) | no adequate replies to the Commission information requests in accordance with paragraph 2 have been made, or |

Text proposed by the Commission

CoR amendment

Procedure of verification of compliance

Procedure of verification of compliance

1.   Upon request of a Member State or on its own initiative, the Commission shall decide whether infrastructure managers which are part of a vertically integrated undertaking fulfil the requirements of Article 7a and Article 7b and whether the implementation of these requirements is appropriate to ensure a level playing field for all railway undertakings and the absence of distortion of competition in the relevant market.

1.   Upon request of a Member State or on its own initiative, the Commission shall decide whether infrastructure managers which are part of a vertically integrated undertaking fulfil the requirements of Articles 7, 7a and Article 7b and whether the implementation of these requirements is appropriate to ensure a level playing field for all railway undertakings and the absence of distortion of competition in the relevant market.

2.   The Commission shall be entitled to require all necessary information within a reasonable deadline from the Member State where the vertically integrated undertaking is established. The Commission shall consult the regulatory body or bodies concerned and, if appropriate, the network of regulatory bodies referred to in Article 57.

2.   The Commission shall be entitled to require all necessary information within a reasonable deadline from the Member State concerned
  where the vertically integrated undertaking is established. The Commission shall consult the regulatory body or bodies concerned, the competent authorities concerned and, if appropriate, the network of regulatory bodies referred to in Article 57.

3.   Member States may limit the rights of access provided for in Article 10 to railway undertakings which are part of the vertically integrated undertaking to which the infrastructure manager concerned belongs, if the Commission informs Member States that no request has been made in accordance with paragraph 1 or pending the examination of the request by the Commission or if it decides, in accordance with the procedure referred to in Article 62(2), that:

3.   Member States may limit the rights of access provided for in Article 10 to railway undertakings which are part of the vertically integrated undertaking to which the infrastructure manager concerned belongs, if the Commission informs Member States that no request has been made in accordance with paragraph 1 or pending the examination of the request by the Commission or if it decides, in accordance with the procedure referred to in Article 62(2), that:

(a)

no adequate replies to the Commission information requests in accordance with paragraph 2 have been made, or

| (a) | no adequate replies to the Commission information requests in accordance with paragraph 2 have been made, or |
| --- | --- |

(a)

no adequate replies to the Commission information requests in accordance with paragraph 2 have been made, or

| (b) | the infrastructure manager concerned does not fulfil the requirements set out in Articles 7a and 7b, or |
| --- | --- |

(b)

the infrastructure manager concerned does not fulfil the requirements set out in Articles 7a and 7b, or

| (b) | the infrastructure manager concerned does not fulfil the requirements set out in Articles 7, 7a and 7b, or |
| --- | --- |

(b)

the infrastructure manager concerned does not fulfil the requirements set out in Articles 7, 7a and 7b, or

| (c) | the implementation of requirements set out in Articles 7a and 7b is not sufficient to ensure a level playing field for all railway undertakings and the absence of distortion of competition in the Member State where the infrastructure manager concerned is established. |
| --- | --- |

(c)

the implementation of requirements set out in Articles 7a and 7b is not sufficient to ensure a level playing field for all railway undertakings and the absence of distortion of competition in the Member State where the infrastructure manager concerned is established.

| (c) | the implementation of requirements set out in Articles 7, 7a and 7b is not sufficient to ensure a level playing field for all railway undertakings and the absence of distortion of competition in the Member State where the infrastructure manager concerned is established. |
| --- | --- |

(c)

the implementation of requirements set out in Articles 7, 7a and 7b is not sufficient to ensure a level playing field for all railway undertakings and the absence of distortion of competition in the Member State where the infrastructure manager concerned is established.

The Commission shall decide within a reasonable period of time.

The Commission shall decide within a reasonable period of time
  30 working days.

4.   The Member State concerned may request the Commission to repeal its decision referred to in paragraph 3, in accordance with the procedure referred to in Article 62(2), when that Member State demonstrates to the satisfaction of the Commission that the reasons for the decision do not exist any longer. The Commission shall decide within a reasonable period of time.

4.   The Member State concerned may request the Commission to repeal its decision referred to in paragraph 3, in accordance with the procedure referred to in Article 62(2), when that Member State demonstrates to the satisfaction of the Commission that the reasons for the decision do not exist any longer. The Commission shall decide within a reasonable period of time
  30 working days.

5.   Without prejudice to paragraphs 1 to 4, the on-going compliance with the requirements set out in Articles 7a and 7b shall be monitored by the regulatory body referred to in Article 55. Any applicant shall have the right to appeal to the regulatory body if it believes that these requirements are not complied with. Upon such an appeal, the regulatory body shall decide, within the time-limits indicated in Article 56(9), on all the necessary measures to remedy the situation.

5.   Without prejudice to paragraphs 1 to 4, the on-going compliance with the requirements set out in Articles 7, 7a and 7b shall be monitored by the regulatory body referred to in Article 55. Any applicant shall have the right to appeal to the regulatory body if it believes that these requirements are not complied with. Upon such an appeal, the regulatory body shall decide, within the time-limits indicated in Article 56(9), on all the necessary measures to remedy the situation.

Reason

The Commission discriminates against vertically integrated undertakings. The scope of the verifications carried out by the European commission should be the same for both integrated and separate undertakings. Like all supervisory bodies, the Commission must be subject to specific deadlines in order to boost legal certainty for all stakeholders.

Amendment 23

COM(2013) 29 final

Article 7d(1)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Coordination Committee | Coordination Committee |
| 1.   Member States shall ensure that infrastructure managers set up and organise Coordination Committees for each network. Membership of this committee shall be open at least to the infrastructure manager, known applicants in the sense of Article 8(3) and, upon their request, potential applicants, their representative organisations, representatives of users of the rail freight and passenger transport services and, where relevant, regional and local authorities. Member State representatives and the regulatory body concerned shall be invited to the meetings of the Coordination Committee as observers. | 1.   Member States shall ensure that infrastructure managers set up and organise Coordination Committees for each network, be it national, regional or local. Membership of this committee shall be open at least to the infrastructure manager, known applicants in the sense of Article 8(3) and, upon their request, potential applicants, their representative organisations, representatives of users of the rail freight and passenger transport services and, where
  the relevant, regional and local authorities. Member State representatives and the regulatory body concerned shall be invited to the meetings of the Coordination Committee as observers. |

Text proposed by the Commission

CoR amendment

Coordination Committee

Coordination Committee

1.   Member States shall ensure that infrastructure managers set up and organise Coordination Committees for each network. Membership of this committee shall be open at least to the infrastructure manager, known applicants in the sense of Article 8(3) and, upon their request, potential applicants, their representative organisations, representatives of users of the rail freight and passenger transport services and, where relevant, regional and local authorities. Member State representatives and the regulatory body concerned shall be invited to the meetings of the Coordination Committee as observers.

1.   Member States shall ensure that infrastructure managers set up and organise Coordination Committees for each network, be it national, regional or local. Membership of this committee shall be open at least to the infrastructure manager, known applicants in the sense of Article 8(3) and, upon their request, potential applicants, their representative organisations, representatives of users of the rail freight and passenger transport services and, where
  the relevant, regional and local authorities. Member State representatives and the regulatory body concerned shall be invited to the meetings of the Coordination Committee as observers.

Reason

As major transport policy actors, regional and local authorities must necessarily be included on the Coordination Committees.

Amendment 24

COM(2013) 29 final

Article 7e(1)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| European Network of Infrastructure Managers | European Network of Infrastructure Managers |
| 1.   Member States shall ensure that infrastructure managers participate and cooperate in a network to develop the Union rail infrastructure, in particular to ensure timely and efficient implementation of the trans-European transport network, including the core network corridors, rail freight corridors according to Regulation (EU) No 913/2010 and the European Rail Traffic Management System (ERTMS) deployment plan laid down in Decision 2012/88/EU. | 1.   Within two years of the entry into force of the present directive, Member States shall ensure
  require that infrastructure managers participate and cooperate in a network to develop the Union rail infrastructure, in particular to ensure timely and efficient implementation of the trans-European transport network, including the core network corridors, rail freight corridors according to Regulation (EU) No 913/2010 and the European Rail Traffic Management System (ERTMS) deployment plan laid down in Decision 2012/88/EU and the effectiveness of regional rail cooperation at cross-border level. |
| The Commission shall be a member of the Network. It shall coordinate and support the work of the Network and make recommendations to the Network, as appropriate. It shall ensure the active cooperation of the appropriate infrastructure managers. | The Commission shall be a member of the Network. It shall coordinate and support the work of the Network and make recommendations to the Network, as appropriate. It shall ensure the active cooperation of the appropriate infrastructure managers. It shall report on the progress of the Network to the Committee of the Regions and to the network of regulatory bodies referred to in Article 57 at least every two years. |

Text proposed by the Commission

CoR amendment

European Network of Infrastructure Managers

European Network of Infrastructure Managers

1.   Member States shall ensure that infrastructure managers participate and cooperate in a network to develop the Union rail infrastructure, in particular to ensure timely and efficient implementation of the trans-European transport network, including the core network corridors, rail freight corridors according to Regulation (EU) No 913/2010 and the European Rail Traffic Management System (ERTMS) deployment plan laid down in Decision 2012/88/EU.

1.   Within two years of the entry into force of the present directive, Member States shall ensure
  require that infrastructure managers participate and cooperate in a network to develop the Union rail infrastructure, in particular to ensure timely and efficient implementation of the trans-European transport network, including the core network corridors, rail freight corridors according to Regulation (EU) No 913/2010 and the European Rail Traffic Management System (ERTMS) deployment plan laid down in Decision 2012/88/EU and the effectiveness of regional rail cooperation at cross-border level.

The Commission shall be a member of the Network. It shall coordinate and support the work of the Network and make recommendations to the Network, as appropriate. It shall ensure the active cooperation of the appropriate infrastructure managers.

The Commission shall be a member of the Network. It shall coordinate and support the work of the Network and make recommendations to the Network, as appropriate. It shall ensure the active cooperation of the appropriate infrastructure managers. It shall report on the progress of the Network to the Committee of the Regions and to the network of regulatory bodies referred to in Article 57 at least every two years.

Reason

The European Network of Infrastructure Managers provides an opportunity to deal with cross-border operational problems at the appropriate level. Local authorities must take part in it. Similarly, the network of regulatory bodies must be kept informed of developments in the network of infrastructure managers.

Amendment 25

COM(2013) 29 final

New article after Article 7e

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| | The infrastructure manager shall appoint from among its own staff a representative responsible for relations with local and regional authorities. The representative must be capable of replying, on behalf of the infrastructure manager, to any requests from a local or regional authority within five days. |

Text proposed by the Commission

CoR amendment

The infrastructure manager shall appoint from among its own staff a representative responsible for relations with local and regional authorities. The representative must be capable of replying, on behalf of the infrastructure manager, to any requests from a local or regional authority within five days.

Reason

Increased powers for infrastructure managers must go hand in hand with making them more answerable at international level via the network of infrastructure managers, but also at local level. As a genuine one-stop shop, the contact person for local or regional authorities must be capable of replying rapidly to any questions submitted.

Amendment 26

COM(2013) 29 final

Article 10, new paragraph after paragraph 2

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| | In order to guarantee non-discriminatory access to stations, station and platform managers shall make an online complaint form available to operators and all customers. The supervisory bodies and competent authorities shall receive an annual report on such complaints. |

Text proposed by the Commission

CoR amendment

In order to guarantee non-discriminatory access to stations, station and platform managers shall make an online complaint form available to operators and all customers. The supervisory bodies and competent authorities shall receive an annual report on such complaints.

Reason

It must be possible to assess non-discriminatory access at regular intervals, especially for local and regional authorities, who have an interest in users benefiting from high-quality service provision.

Amendment 27

COM(2013) 29 final

Article 11(2)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| In order to determine whether the economic equilibrium of a public service contract would be compromised, the relevant regulatory body or bodies referred to in Article 55 shall make an objective economic analysis and base its decision on pre-determined criteria. They shall determine this after a request from any of the following, submitted within one month from the information on the intended passenger service referred to in Article 38(4): | In order to determine whether the economic equilibrium of a public service contract would be compromised, the relevant regulatory body or bodies referred to in Article 55 shall make an objective economic analysis and base its decision on pre-determined criteria. They shall determine this after a request from any of the following, submitted within one
  two months from the information on the intended passenger service referred to in Article 38(4): |
| (a) | the competent authority or competent authorities that awarded the public service contract; |

Text proposed by the Commission

CoR amendment

In order to determine whether the economic equilibrium of a public service contract would be compromised, the relevant regulatory body or bodies referred to in Article 55 shall make an objective economic analysis and base its decision on pre-determined criteria. They shall determine this after a request from any of the following, submitted within one month from the information on the intended passenger service referred to in Article 38(4):

In order to determine whether the economic equilibrium of a public service contract would be compromised, the relevant regulatory body or bodies referred to in Article 55 shall make an objective economic analysis and base its decision on pre-determined criteria. They shall determine this after a request from any of the following, submitted within one
  two months from the information on the intended passenger service referred to in Article 38(4):

(a)

the competent authority or competent authorities that awarded the public service contract;

| (a) | the competent authority or competent authorities that awarded the public service contract; |
| --- | --- |

(a)

the competent authority or competent authorities that awarded the public service contract;

| (b) | any other interested competent authority with the right to limit access under this Article; |
| --- | --- |

(b)

any other interested competent authority with the right to limit access under this Article;

| (b) | any other interested competent authority with the right to limit access under this Article; |
| --- | --- |

(b)

any other interested competent authority with the right to limit access under this Article;

| (c) | the infrastructure manager; |
| --- | --- |

(c)

the infrastructure manager;

| (c) | the infrastructure manager; |
| --- | --- |

(c)

the infrastructure manager;

| (d) | the railway undertaking performing the public service contract. |
| --- | --- |

(d)

the railway undertaking performing the public service contract.

| (d) | the railway undertaking performing the public service contract. |
| --- | --- |

(d)

the railway undertaking performing the public service contract.

Reason

One month is too short for raising objections to a new transport service affecting the economic equilibrium of a public service contract.

Amendment 28

COM(2013) 29 final

Article 13a(1)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Common information and integrated ticketing schemes | Common information and integrated ticketing schemes |
| 1.   Without prejudice to Regulation (EC) No 1371/2007 and Directive 2010/40/EU, Member States may require railway undertakings operating domestic passenger services to participate in a common information and integrated ticketing scheme for the supply of tickets, through-tickets and reservations or decide to give the power to competent authorities to establish such a scheme. If such a scheme is established, Member States shall ensure that it does not create market distortion or discriminate between railway undertakings and that it is managed by a public or private legal entity or an association of all railway undertakings operating passenger services. | 1.   Without prejudice to Regulation (EC) No 1371/2007 and Directive 2010/40/EU, Member States shall
  may require railway undertakings operating domestic passenger services to participate in a common information and integrated ticketing scheme for the supply of tickets, through-tickets and reservations or decide to give the power to competent authorities to establish such a scheme. If
  When such a scheme is established, Member States shall ensure that it does not create market distortion or discriminate between railway undertakings and that it is managed by a public or private legal entity or an association of all railway undertakings operating passenger services. |
| | A group of representatives of local and regional authorities shall form part of this legal entity or association, and shall be fully involved in its decisions. |

Text proposed by the Commission

CoR amendment

Common information and integrated ticketing schemes

Common information and integrated ticketing schemes

1.   Without prejudice to Regulation (EC) No 1371/2007 and Directive 2010/40/EU, Member States may require railway undertakings operating domestic passenger services to participate in a common information and integrated ticketing scheme for the supply of tickets, through-tickets and reservations or decide to give the power to competent authorities to establish such a scheme. If such a scheme is established, Member States shall ensure that it does not create market distortion or discriminate between railway undertakings and that it is managed by a public or private legal entity or an association of all railway undertakings operating passenger services.

1.   Without prejudice to Regulation (EC) No 1371/2007 and Directive 2010/40/EU, Member States shall
  may require railway undertakings operating domestic passenger services to participate in a common information and integrated ticketing scheme for the supply of tickets, through-tickets and reservations or decide to give the power to competent authorities to establish such a scheme. If
  When such a scheme is established, Member States shall ensure that it does not create market distortion or discriminate between railway undertakings and that it is managed by a public or private legal entity or an association of all railway undertakings operating passenger services.

A group of representatives of local and regional authorities shall form part of this legal entity or association, and shall be fully involved in its decisions.

Reason

This article represents the legal basis for the regions' objective of harmonising ticketing systems in a competitive market. It enables them to address a range of issues that have emerged with regard to ticketing systems in stations managed by incumbent operators.

Companies operating national systems must be required to join in a national information system, since the development of associated services is a major factor in boosting the attractiveness of public transport, rail in particular. For this reason, local authorities must take part in system governance bodies.

Amendment 29

COM(2013) 29 final

Article 59, new paragraph after paragraph 3

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| | Vertically integrated undertakings that manage infrastructures of less than 150 km or that provide exclusively local rail services shall not be affected by Articles 7 and 7a to 7c when such services come under auxiliary management of maritime and inland port infrastructures, without prejudice to Article 13(3) of the present directive or to ‘short line’ freight transport. |

Text proposed by the Commission

CoR amendment

Vertically integrated undertakings that manage infrastructures of less than 150 km or that provide exclusively local rail services shall not be affected by Articles 7 and 7a to 7c when such services come under auxiliary management of maritime and inland port infrastructures, without prejudice to Article 13(3) of the present directive or to ‘short line’ freight transport.

Reason

This amendment aims to remove small rail networks and operations to meet local, little-developed needs from the scope of Articles 7 and 7a to 7c. Non-discriminatory access to service installations is also mentioned.

Amendment 30

COM(2013) 29 final

Article 59, new paragraph after paragraph 3

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| | Vertically integrated undertakings that manage specific investment projects falling under Article 32(3) of the present directive and subject to direct competition with other modes of transport are not affected by Articles 7 and 7a to 7c. |

Text proposed by the Commission

CoR amendment

Vertically integrated undertakings that manage specific investment projects falling under Article 32(3) of the present directive and subject to direct competition with other modes of transport are not affected by Articles 7 and 7a to 7c.

Reason

This amendment, in keeping with other provisions of Directive 2012/34/EU, seeks to exclude the particular case of ‘specific investment projects’, which are only likely to be profitable over the very long term, from the scope of Articles 7 and 7a to 7c.

Amendment 31

COM(2013) 27 final

Recital 29

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| (29) | In order to ensure effectively the accomplishment of the functions of the Agency, the Member States and the Commission should be represented on a Management Board vested with the necessary powers, including to establish the budget and approve the annual and multi-annual work programmes. |

Text proposed by the Commission

CoR amendment

(29)

In order to ensure effectively the accomplishment of the functions of the Agency, the Member States and the Commission should be represented on a Management Board vested with the necessary powers, including to establish the budget and approve the annual and multi-annual work programmes.

| (29) | In order to ensure effectively the accomplishment of the functions of the Agency, the Member States and the Commission should be represented on a Management Board vested with the necessary powers, including to establish the budget and approve the annual and multi-annual work programmes, matters on which the Committee of the Regions and representative bodies must be consulted. |
| --- | --- |

(29)

In order to ensure effectively the accomplishment of the functions of the Agency, the Member States and the Commission should be represented on a Management Board vested with the necessary powers, including to establish the budget and approve the annual and multi-annual work programmes, matters on which the Committee of the Regions and representative bodies must be consulted.

Reason

The network of representative bodies from the rail sector and the Committee of the Regions should be consulted in connection with the ERA's annual and multiannual work programmes, since they are affected by the outcome and the priorities of the ERA's work.

Amendment 32

COM(2013) 27 final

Article 33(5)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The national authorities responsible for issuing the licences and certificates referred to in points (c) and (d) of paragraph 2 shall notify the Agency within one month of each individual decision to issue, renew, amend or revoke those licenses and certificates. | The national authorities responsible for issuing the licences and certificates referred to in points (c) and (d) of paragraph 2 shall notify the Agency within one month of each individual decision to issue, renew, amend, deny or revoke those licenses and certificates, stating the grounds for their decision. The Agency shall ratify or revoke each decision within a month and grant the interested parties a hearing. |

Text proposed by the Commission

CoR amendment

The national authorities responsible for issuing the licences and certificates referred to in points (c) and (d) of paragraph 2 shall notify the Agency within one month of each individual decision to issue, renew, amend or revoke those licenses and certificates.

The national authorities responsible for issuing the licences and certificates referred to in points (c) and (d) of paragraph 2 shall notify the Agency within one month of each individual decision to issue, renew, amend, deny or revoke those licenses and certificates, stating the grounds for their decision. The Agency shall ratify or revoke each decision within a month and grant the interested parties a hearing.

Reason

The point is to avoid national authorities exhausting all channels of redress, prior to the European Court of Justice, which is why the European Railway Agency should be involved in ratifying or revoking national decisions contrary to the spirit of the Single European Railway Area.

Amendment 33

COM(2013) 27 final

Article 48(5)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 5.   The Management Board shall also adopt and update a strategic multi-annual work programme by 30 November each year. The opinion of the Commission shall be taken into account. The European Parliament and the networks referred to in Article 34 shall be consulted on the draft. The adopted multi-annual work programme shall be forwarded to the Member States, the European Parliament, the Council, the Commission and to the networks referred to in Article 34. | 5.   The Management Board shall also adopt and update a strategic multi-annual work programme by 30 November each year. The opinion of the Commission shall be taken into account. The European Parliament, the Committee of the Regions and the networks referred to in Article 34 shall be consulted on the draft. The adopted multi-annual work programme shall be forwarded to the Member States, the European Parliament, the Council, the Commission, the Committee of the Regions and to the networks referred to in Article 34. |

Text proposed by the Commission

CoR amendment

5.   The Management Board shall also adopt and update a strategic multi-annual work programme by 30 November each year. The opinion of the Commission shall be taken into account. The European Parliament and the networks referred to in Article 34 shall be consulted on the draft. The adopted multi-annual work programme shall be forwarded to the Member States, the European Parliament, the Council, the Commission and to the networks referred to in Article 34.

5.   The Management Board shall also adopt and update a strategic multi-annual work programme by 30 November each year. The opinion of the Commission shall be taken into account. The European Parliament, the Committee of the Regions and the networks referred to in Article 34 shall be consulted on the draft. The adopted multi-annual work programme shall be forwarded to the Member States, the European Parliament, the Council, the Commission, the Committee of the Regions and to the networks referred to in Article 34.

Reason

The Committee of the Regions should also be consulted in connection with the ERA's multiannual work programme given that the local and regional authorities contribute to financing rolling stock and have a direct interest in improving interoperability and safety.

Amendment 34

COM(2013) 27 final

Article 54(1)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 1.   An appeal may be brought before the Board of Appeal against decisions taken by the Agency pursuant to Articles 12, 16, 17 and 18. | 1.   An appeal may be brought before the Board of Appeal against decisions taken by the Agency pursuant to Articles 12, 16, 17 and 18, or against a failure on its part to respond within the deadlines laid down. |

Text proposed by the Commission

CoR amendment

1.   An appeal may be brought before the Board of Appeal against decisions taken by the Agency pursuant to Articles 12, 16, 17 and 18.

1.   An appeal may be brought before the Board of Appeal against decisions taken by the Agency pursuant to Articles 12, 16, 17 and 18, or against a failure on its part to respond within the deadlines laid down.

Reason

In the event that the Agency fails to act or does not reach a decision within the established deadlines, it must be possible to appeal.

Amendment 35

COM(2013) 27 final

Article 56(1)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 1.   When examining the appeal, the Board of Appeal shall act expeditiously. It shall, as often as necessary, invite the parties to the appeal proceedings to file, within specified time limits, observations on its notifications or on communications from other parties to the appeal proceedings. Parties to the appeal proceedings shall be entitled to make oral presentations. | 1.   When examining the appeal, the Board of Appeal shall act expeditiously. It shall, as often as necessary, invite the parties to the appeal proceedings to file, within specified time limits, observations on its notifications or on communications from other parties to the appeal proceedings. Parties to the appeal proceedings shall be entitled to make oral presentations. |
| | The Board of Appeal shall examine all the complaints and, according to the case, shall ask for relevant information and consult with the parties concerned within one month of receiving the complaint. It is required to decide on each complaint and shall take the necessary measures in order to remedy the situation; it shall inform the parties concerned of its decision, with reasons, by a reasonable deadline decided in advance and in all cases within a maximum of two months from receipt of all the relevant information. If the Agency should fail to act within the deadlines, the Board of Appeal may issue an injunction, if necessary applying a financial penalty. |

Text proposed by the Commission

CoR amendment

1.   When examining the appeal, the Board of Appeal shall act expeditiously. It shall, as often as necessary, invite the parties to the appeal proceedings to file, within specified time limits, observations on its notifications or on communications from other parties to the appeal proceedings. Parties to the appeal proceedings shall be entitled to make oral presentations.

1.   When examining the appeal, the Board of Appeal shall act expeditiously. It shall, as often as necessary, invite the parties to the appeal proceedings to file, within specified time limits, observations on its notifications or on communications from other parties to the appeal proceedings. Parties to the appeal proceedings shall be entitled to make oral presentations.

The Board of Appeal shall examine all the complaints and, according to the case, shall ask for relevant information and consult with the parties concerned within one month of receiving the complaint. It is required to decide on each complaint and shall take the necessary measures in order to remedy the situation; it shall inform the parties concerned of its decision, with reasons, by a reasonable deadline decided in advance and in all cases within a maximum of two months from receipt of all the relevant information. If the Agency should fail to act within the deadlines, the Board of Appeal may issue an injunction, if necessary applying a financial penalty.

Reason

It is important to specify the procedures and deadlines applied by the Board of Appeal when examining complaints submitted to it (e.g. the time at which the application is considered to have been received should be defined in order to calculate the deadline once the procedure has begun).

Specific powers should be invested in the Board of Appeal so that it can enforce its decision, in the form of injunctions or financial penalties (fines), especially in the event of failure to act within the deadlines.

Amendment 36

COM(2013) 27 final

New article after Article 77

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| | 1.   The Agency shall take decisions under Articles 12, 16, 17 and 18 with effect from [two years after the entry into force of the present regulation]. Until that time, the Member States shall continue to implement the prevailing legislative and regulatory provisions.


  2.   During an additional transitional period of 42 months from the date set out in paragraph 1, the Member States shall continue to issue certificates and authorisations by derogation from the provisions of Articles 12, 16, 17 and 18 under the conditions defined by the Commission in the rules laid down for their implementation in accordance with Article 75. Before issuing its decisions, the Agency must assess whether:







  — | this would lower the level of railway safety, and/or |

Text proposed by the Commission

CoR amendment

1.   The Agency shall take decisions under Articles 12, 16, 17 and 18 with effect from [two years after the entry into force of the present regulation]. Until that time, the Member States shall continue to implement the prevailing legislative and regulatory provisions.

2.   During an additional transitional period of 42 months from the date set out in paragraph 1, the Member States shall continue to issue certificates and authorisations by derogation from the provisions of Articles 12, 16, 17 and 18 under the conditions defined by the Commission in the rules laid down for their implementation in accordance with Article 75. Before issuing its decisions, the Agency must assess whether:

—

this would lower the level of railway safety, and/or

| — | this would constitute arbitrary discrimination or an excessive restriction on a rail transport service. |
| --- | --- |

—

this would constitute arbitrary discrimination or an excessive restriction on a rail transport service.

The Agency may ask the national safety authorities concerned to amend the decision, to suspend its implementation or to revoke it. If the national safety authority refuses to act, the Agency may submit the issue to the Commission and to the committee mentioned in Article 75.

Reason

Based on the model of the EASA's transitional period concerning responsibility for certification of aircraft, a mechanism should be introduced for the ERA so that additional staff can gradually be recruited and trained for new tasks.

Amendment 37

COM(2013) 30 final

Annex I, 4.2

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| | 3.   
  Cost controls



  The cost-benefit analysis of the proposed measures will take into consideration, among others, the following:







  — | cost of the proposed measure, |

Text proposed by the Commission

CoR amendment

3.   
  Cost controls

The cost-benefit analysis of the proposed measures will take into consideration, among others, the following:

—

cost of the proposed measure,

| — | benefits to interoperability of an extension of the scope to particular subcategories of networks and vehicles, |
| --- | --- |

—

benefits to interoperability of an extension of the scope to particular subcategories of networks and vehicles,

| — | reduction of capital costs and charges due to economies of scale and better utilisation of vehicles, |
| --- | --- |

—

reduction of capital costs and charges due to economies of scale and better utilisation of vehicles,

| — | reduction of investment and maintenance/operating costs due to increased competition between manufacturers and maintenance companies, |
| --- | --- |

—

reduction of investment and maintenance/operating costs due to increased competition between manufacturers and maintenance companies,

| — | environmental benefits, due to technical improvements of the rail system, |
| --- | --- |

—

environmental benefits, due to technical improvements of the rail system,

| — | increase of safety in operation. |
| --- | --- |

—

increase of safety in operation.

In addition, this assessment will indicate the likely impact for all the operators and economic agents involved, including local and regional authorities.

Reason

This extract from the current directive (Annex I, 4.2) should be reinstated, so that a cost-benefit analysis of all technical measures envisaged is carried out, for each Technical Specification for Interoperability, in order to implement the most viable options, to the benefit in particular of local and regional authorities.

Brussels, 8 October 2013.

The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO

---

| 5.12.2013 | EN | Official Journal of the European Union | C 356/116 |
| --- | --- | --- | --- |

5.12.2013

EN

Official Journal of the European Union

C 356/116

---

Opinion of the Committee of the Regions – Guidelines for Trans-European Telecommunications Networks

2013/C 356/17

THE COMMITTEE OF THE REGIONS

| — | takes note of the European Commission (Commission) amended Proposal for a Regulation on guidelines for trans-European telecommunications networks and highlights that the priorities set out in this paper — high-speed networks, cross-border public services, access to re-usable Public Sector Information (PSI) and multilingual services, safer internet service infrastructures — are all domains in which the cities and regions are simultaneously actors, providers and beneficiaries; |
| --- | --- |

—

takes note of the European Commission (Commission) amended Proposal for a Regulation on guidelines for trans-European telecommunications networks and highlights that the priorities set out in this paper — high-speed networks, cross-border public services, access to re-usable Public Sector Information (PSI) and multilingual services, safer internet service infrastructures — are all domains in which the cities and regions are simultaneously actors, providers and beneficiaries;

| — | highlights the key role of trans-European telecommunications networks for both commercial and non-commercial purposes and of investment in research to support specific activities and development of future applications in order to enhance the value of the telecommunications sector; |
| --- | --- |

—

highlights the key role of trans-European telecommunications networks for both commercial and non-commercial purposes and of investment in research to support specific activities and development of future applications in order to enhance the value of the telecommunications sector;

| — | proposes the entire exploitation of Europe's full potential for developing ICT services in the public and private sectors, and usage of ICT as a mean of improving LRAs' services in fields such as healthcare, education, public procurement, security and social services, but also in other measures to support LRAs in their decision-making; |
| --- | --- |

—

proposes the entire exploitation of Europe's full potential for developing ICT services in the public and private sectors, and usage of ICT as a mean of improving LRAs' services in fields such as healthcare, education, public procurement, security and social services, but also in other measures to support LRAs in their decision-making;

| — | highlights the importance of stimulating public and private investment in a mutually reinforcing partnership for rural and low density areas, as well as for urban areas that are facing social and economic problems and thus draws attention to the coordination of broadband access by government administration, public safety, local schools and healthcare facilities. |
| --- | --- |

—

highlights the importance of stimulating public and private investment in a mutually reinforcing partnership for rural and low density areas, as well as for urban areas that are facing social and economic problems and thus draws attention to the coordination of broadband access by government administration, public safety, local schools and healthcare facilities.

| Rapporteur | Alin-Adrian NICA (RO/ALDE), Mayor of Dudeștii Noi |
| --- | --- |
| Reference document | Amended Proposal for a Regulation of the European Parliament and of the Council on guidelines for trans-European telecommunications networks and repealing Decision No 1336/97/EC
  COM(2013) 329 final |

Rapporteur

Alin-Adrian NICA (RO/ALDE), Mayor of Dudeștii Noi

Reference document

Amended Proposal for a Regulation of the European Parliament and of the Council on guidelines for trans-European telecommunications networks and repealing Decision No 1336/97/EC

COM(2013) 329 final

I.   THE COMMITTEE OF THE REGIONS’ VIEWS

THE COMMITTEE OF THE REGIONS

| 1. | takes note of the European Commission (Commission) amended Proposal for a Regulation on guidelines for trans-European telecommunications networks and highlights that the priorities set out in this paper — high-speed networks, cross-border public services, access to re-usable Public Sector Information (PSI) and multilingual services, safer internet service infrastructures — are all domains in which the cities and regions are simultaneously actors, providers and beneficiaries; |
| --- | --- |

1.

takes note of the European Commission (Commission) amended Proposal for a Regulation on guidelines for trans-European telecommunications networks and highlights that the priorities set out in this paper — high-speed networks, cross-border public services, access to re-usable Public Sector Information (PSI) and multilingual services, safer internet service infrastructures — are all domains in which the cities and regions are simultaneously actors, providers and beneficiaries;

| 2. | acknowledges the importance of carefully reviewing existing European regulations, as requested by the European Parliament, and of adapting them to current needs; |
| --- | --- |

2.

acknowledges the importance of carefully reviewing existing European regulations, as requested by the European Parliament, and of adapting them to current needs;

| 3. | notes with concern the substantial reduction from EUR 9.2 billion to EUR 1 billion for the telecommunications part of the Connecting Europe Facility (CEF) and points out that neglecting telecommunication networks could cause serious problems regarding the implementation and development of future digital services and the digital economy; in this respect, the CoR regrets the elimination for budgetary reasons of two services — the ‘Trans-European high-speed backbone connections for public administrations’ and the ‘Information and communication technology solutions for intelligent energy networks and for the provision of Smart Energy Services’ — which are no longer considered projects of common interest; |
| --- | --- |

3.

notes with concern the substantial reduction from EUR 9.2 billion to EUR 1 billion for the telecommunications part of the Connecting Europe Facility (CEF) and points out that neglecting telecommunication networks could cause serious problems regarding the implementation and development of future digital services and the digital economy; in this respect, the CoR regrets the elimination for budgetary reasons of two services — the ‘Trans-European high-speed backbone connections for public administrations’ and the ‘Information and communication technology solutions for intelligent energy networks and for the provision of Smart Energy Services’ — which are no longer considered projects of common interest;

| 4. | highlights the key role of trans-European telecommunications networks for both commercial and non-commercial purposes and of investment in research to support specific activities and development of future applications in order to enhance the value of the telecommunications sector; |
| --- | --- |

4.

highlights the key role of trans-European telecommunications networks for both commercial and non-commercial purposes and of investment in research to support specific activities and development of future applications in order to enhance the value of the telecommunications sector;

| 5. | considers that these technologies have the potential to turn into valuable assets for citizens, businesses and administrations, and could contribute to the improvement of products and quality of public services; |
| --- | --- |

5.

considers that these technologies have the potential to turn into valuable assets for citizens, businesses and administrations, and could contribute to the improvement of products and quality of public services;

| 6. | reaffirms the importance of investment in ICT research in order to ensure growth and development of new businesses and points out that the use of ICT in innovation could address key socio-economic challenges; |
| --- | --- |

6.

reaffirms the importance of investment in ICT research in order to ensure growth and development of new businesses and points out that the use of ICT in innovation could address key socio-economic challenges;

| 7. | recalls that ICT, underpinning an information society which is open to all, should include the needs of all members of society, including those risking social exclusion; |
| --- | --- |

7.

recalls that ICT, underpinning an information society which is open to all, should include the needs of all members of society, including those risking social exclusion;

| 8. | stresses that local and regional authorities (LRA) should not be regarded only as users of pan-European eServices, but also as major providers of services in the context of the proposal; |
| --- | --- |

8.

stresses that local and regional authorities (LRA) should not be regarded only as users of pan-European eServices, but also as major providers of services in the context of the proposal;

| 9. | asks for encouraging private investment as well as investment from public sources other than the CEF, including wider contribution from business and institutional players such as the European Investment Bank (EIB); |
| --- | --- |

9.

asks for encouraging private investment as well as investment from public sources other than the CEF, including wider contribution from business and institutional players such as the European Investment Bank (EIB);

| 10. | reaffirms importance of synergies between Horizon2020, Structural Funds (SF) and national policies in relation to the broader EU objectives of competitiveness and cohesion; |
| --- | --- |

10.

reaffirms importance of synergies between Horizon2020, Structural Funds (SF) and national policies in relation to the broader EU objectives of competitiveness and cohesion;

| 11. | stresses the key role of local LRAs in promoting informed dialogue with the general public, and in addressing public concerns close to the citizens as well as facilitating cooperation between users and producers of ICT innovations in different corners of governments and administrations; |
| --- | --- |

11.

stresses the key role of local LRAs in promoting informed dialogue with the general public, and in addressing public concerns close to the citizens as well as facilitating cooperation between users and producers of ICT innovations in different corners of governments and administrations;

| 12. | points out that the exchange of best practices between the regions and LRAs would not only be useful but should in fact be an essential part of the proposal; |
| --- | --- |

12.

points out that the exchange of best practices between the regions and LRAs would not only be useful but should in fact be an essential part of the proposal;

II.   THE COMMITTEE OF THE REGIONS’ RECOMMENDATIONS

| 13. | encourages the LRAs to participate in wide-ranging cooperation to improve the interoperability of public administration and the effectiveness of public service delivery; |
| --- | --- |

13.

encourages the LRAs to participate in wide-ranging cooperation to improve the interoperability of public administration and the effectiveness of public service delivery;

| 14. | stresses the key role of LRAs in facilitating the deployment of cross-border services, both physical and digital; it insists, therefore, on the need to fully involve such authorities in the governance of the programme; |
| --- | --- |

14.

stresses the key role of LRAs in facilitating the deployment of cross-border services, both physical and digital; it insists, therefore, on the need to fully involve such authorities in the governance of the programme;

| 15. | acknowledges that in addition to the need to pay ongoing attention to the competitiveness of particular sectors, it is important to note that Europe's future prosperity will be increasingly dependent upon inter-sectoral activities (1); |
| --- | --- |

15.

acknowledges that in addition to the need to pay ongoing attention to the competitiveness of particular sectors, it is important to note that Europe's future prosperity will be increasingly dependent upon inter-sectoral activities (1);

II.1   
  Broadband

| 16. | reaffirms that LRAs have a key role to play in helping to ensure equal and affordable broadband access in areas where the market fails, in leading projects aimed at bridging the e-Accessibility gap, and in developing new approaches towards people-centred public e-services (2); |
| --- | --- |

16.

reaffirms that LRAs have a key role to play in helping to ensure equal and affordable broadband access in areas where the market fails, in leading projects aimed at bridging the e-Accessibility gap, and in developing new approaches towards people-centred public e-services (2);

| 17. | proposes the entire exploitation of Europe's full potential for developing ICT services in the public and private sectors, and usage of ICT as a mean of improving LRAs' services in fields such as healthcare, education, public procurement, security and social services, but also in other measures to support LRAs in their decision-making; |
| --- | --- |

17.

proposes the entire exploitation of Europe's full potential for developing ICT services in the public and private sectors, and usage of ICT as a mean of improving LRAs' services in fields such as healthcare, education, public procurement, security and social services, but also in other measures to support LRAs in their decision-making;

| 18. | recalls that EU-backed public-private partnerships among LRAs and ICT-development SMEs in the area of public ICT services can serve as an excellent cornerstone for building up local skills and knowledge across the EU (3); |
| --- | --- |

18.

recalls that EU-backed public-private partnerships among LRAs and ICT-development SMEs in the area of public ICT services can serve as an excellent cornerstone for building up local skills and knowledge across the EU (3);

| 19. | points out that while investing in ultra-fast broadband networks could be considered a risk, it is the best option for investors since high-speed Internet allows better access to digital services; proposes that this investment be accompanied by plans encouraging and helping the public to sign up for these services, thus working towards the European Digital Agenda's objectives; |
| --- | --- |

19.

points out that while investing in ultra-fast broadband networks could be considered a risk, it is the best option for investors since high-speed Internet allows better access to digital services; proposes that this investment be accompanied by plans encouraging and helping the public to sign up for these services, thus working towards the European Digital Agenda's objectives;

| 20. | recalls that funding and other support measures should favour the implementation of open-access broadband networks that are based on horizontally layered network architecture and highlights the need for a business model that separates physical access to the network from service provision, with modern optical fibre networks opened up to competition; in practice, this means actively promoting open-access business models for so-called dark optic fibre — which is a kind of passive infrastructure; |
| --- | --- |

20.

recalls that funding and other support measures should favour the implementation of open-access broadband networks that are based on horizontally layered network architecture and highlights the need for a business model that separates physical access to the network from service provision, with modern optical fibre networks opened up to competition; in practice, this means actively promoting open-access business models for so-called dark optic fibre — which is a kind of passive infrastructure;

| 21. | highlights the importance of stimulating public and private investment in a mutually reinforcing partnership for rural and low density areas, as well as for urban areas that are facing social and economic problems and thus draws attention to the coordination of broadband access by government administration, public safety, local schools and healthcare facilities (4); |
| --- | --- |

21.

highlights the importance of stimulating public and private investment in a mutually reinforcing partnership for rural and low density areas, as well as for urban areas that are facing social and economic problems and thus draws attention to the coordination of broadband access by government administration, public safety, local schools and healthcare facilities (4);

II.2   
  Government and Interoperability

| 22. | asks for more focus on awareness-raising at regional and local level about the importance of interoperability of digital services infrastructures for the effective delivery of projects of common interest within and across borders; moreover, it insists on the need to stimulate the infrastructure upgrade in order to ensure the development and implementation of trans-European telecommunications networks; |
| --- | --- |

22.

asks for more focus on awareness-raising at regional and local level about the importance of interoperability of digital services infrastructures for the effective delivery of projects of common interest within and across borders; moreover, it insists on the need to stimulate the infrastructure upgrade in order to ensure the development and implementation of trans-European telecommunications networks;

| 23. | recognises the need to develop a framework at European level to ensure that research infrastructures work more effectively and barriers to international research are eliminated; |
| --- | --- |

23.

recognises the need to develop a framework at European level to ensure that research infrastructures work more effectively and barriers to international research are eliminated;

| 24. | considers that effective information society infrastructure must be guaranteed to all members of the population regardless of where they live and acknowledges that fast and operationally reliable communication links, complemented by efficient wireless mobile services, play a key role in promoting regional competitiveness, accessibility and equality between people (5); |
| --- | --- |

24.

considers that effective information society infrastructure must be guaranteed to all members of the population regardless of where they live and acknowledges that fast and operationally reliable communication links, complemented by efficient wireless mobile services, play a key role in promoting regional competitiveness, accessibility and equality between people (5);

| 25. | encourages the development of cross border public authority services by covering aspects of interoperability and eIdentification of citizens, eSignatures, electronic service of documents and other building blocks of eGovernment; |
| --- | --- |

25.

encourages the development of cross border public authority services by covering aspects of interoperability and eIdentification of citizens, eSignatures, electronic service of documents and other building blocks of eGovernment;

II.3   
  Access to digital resources

| 26. | reaffirms the role of the Digital Single Market as a cornerstone of the Digital Agenda for Europe that will make it possible to create a growing, successful and vibrant pan-European market for providing access to electronic services (6); |
| --- | --- |

26.

reaffirms the role of the Digital Single Market as a cornerstone of the Digital Agenda for Europe that will make it possible to create a growing, successful and vibrant pan-European market for providing access to electronic services (6);

| 27. | highlights the need for a coordinated effort in the area of digitisation and notes that the online accessibility of cultural material will make it possible for citizens throughout Europe to access and use it for leisure, studies or work; |
| --- | --- |

27.

highlights the need for a coordinated effort in the area of digitisation and notes that the online accessibility of cultural material will make it possible for citizens throughout Europe to access and use it for leisure, studies or work;

| 28. | encourages the creation and distribution of legal digital content and online services, as well as giving consumers easy, safe and flexible access to digital content and service markets; |
| --- | --- |

28.

encourages the creation and distribution of legal digital content and online services, as well as giving consumers easy, safe and flexible access to digital content and service markets;

| 29. | welcomes the fact that digital resources of European heritage are a priori eligible for funding under the programme; notes to this effect the impact of online accessibility of cultural material on citizens throughout Europe and underlines that this process contributes to giving Europe’s diverse and multilingual heritage a clear profile on the internet; welcomes therefore the continued support to the current European portal, Europe's online library, museum and archive; |
| --- | --- |

29.

welcomes the fact that digital resources of European heritage are a priori eligible for funding under the programme; notes to this effect the impact of online accessibility of cultural material on citizens throughout Europe and underlines that this process contributes to giving Europe’s diverse and multilingual heritage a clear profile on the internet; welcomes therefore the continued support to the current European portal, Europe's online library, museum and archive;

| 30. | considers that the digitised material can be re-used — for both commercial and non-commercial purposes — for uses such as developing learning and educational content, documentaries, tourism applications, games, animations and design tools, provided that this is done with full respect for copyright and related rights; |
| --- | --- |

30.

considers that the digitised material can be re-used — for both commercial and non-commercial purposes — for uses such as developing learning and educational content, documentaries, tourism applications, games, animations and design tools, provided that this is done with full respect for copyright and related rights;

| 31. | recalls that it is crucial that public institutions at regional and local level have adequate in-house capacities and sustainable financial resources for digitisation in order to benefit of considerable cost reductions; |
| --- | --- |

31.

recalls that it is crucial that public institutions at regional and local level have adequate in-house capacities and sustainable financial resources for digitisation in order to benefit of considerable cost reductions;

II.4   
  Access to re-usable PSI

| 32. | considers it necessary to make distinction between access (regulated by the Member States) and re-use of public information, that should be undertaken with full respect of data protection rules, in order to improve the benefits of the producer who might not entirely cover his expenses on generating the respective information and eliminate the risks of consumer’s disappointment when a limited access is granted to the public information (7); |
| --- | --- |

32.

considers it necessary to make distinction between access (regulated by the Member States) and re-use of public information, that should be undertaken with full respect of data protection rules, in order to improve the benefits of the producer who might not entirely cover his expenses on generating the respective information and eliminate the risks of consumer’s disappointment when a limited access is granted to the public information (7);

| 33. | reaffirms the significance of and the need for common rules and practices governing the re-use and exploitation of public sector information to ensure that the same basic conditions are applied to all players in the European information market, conditions for re-using such information are more transparent, and distortions of the internal market are eliminated as settled within Directive 2013/37/EU (8); |
| --- | --- |

33.

reaffirms the significance of and the need for common rules and practices governing the re-use and exploitation of public sector information to ensure that the same basic conditions are applied to all players in the European information market, conditions for re-using such information are more transparent, and distortions of the internal market are eliminated as settled within Directive 2013/37/EU (8);

| 34. | notes that ready access to re-usable public sector data boosts economic growth and creates new business opportunities, including for small businesses, regardless of their location and remarks that participation in re-use by SMEs in particular should be encouraged and the necessary refinancing ensured for the production, storage and updating of public sector documents (9); |
| --- | --- |

34.

notes that ready access to re-usable public sector data boosts economic growth and creates new business opportunities, including for small businesses, regardless of their location and remarks that participation in re-use by SMEs in particular should be encouraged and the necessary refinancing ensured for the production, storage and updating of public sector documents (9);

| 35. | stresses that the full potential of PSI re-use could be reached with closer involvement of LRAs, which could significantly contribute to promoting PSI re-use in order to increase competitiveness and create jobs (10); |
| --- | --- |

35.

stresses that the full potential of PSI re-use could be reached with closer involvement of LRAs, which could significantly contribute to promoting PSI re-use in order to increase competitiveness and create jobs (10);

II.5   
  Safety and Security

| 36. | urges that all security requirements at every level are met when further developing the infrastructures and services under the Digital Agenda for Europe in order to ensure optimum levels of privacy and protection of personal data and prevent any unauthorised tracking of any kind of personal information and profiling, including shopping preferences, medical status, health records, etc. (11); |
| --- | --- |

36.

urges that all security requirements at every level are met when further developing the infrastructures and services under the Digital Agenda for Europe in order to ensure optimum levels of privacy and protection of personal data and prevent any unauthorised tracking of any kind of personal information and profiling, including shopping preferences, medical status, health records, etc. (11);

| 37. | proposes that organisations, including public authorities, need to acknowledge that tackling cybercrime is an ongoing battle, and are urged to prioritise the threat posed by cyber disruptions and attacks by identifying vulnerabilities and develop organisational capacities for managing breaches; |
| --- | --- |

37.

proposes that organisations, including public authorities, need to acknowledge that tackling cybercrime is an ongoing battle, and are urged to prioritise the threat posed by cyber disruptions and attacks by identifying vulnerabilities and develop organisational capacities for managing breaches;

| 38. | notes that cybercrime, in all its forms, is a rapidly developing, sophisticated new threat to Member States, organisations and EU citizens in the 21st century and one which continually increases in frequency, complexity and knows no borders; |
| --- | --- |

38.

notes that cybercrime, in all its forms, is a rapidly developing, sophisticated new threat to Member States, organisations and EU citizens in the 21st century and one which continually increases in frequency, complexity and knows no borders;

| 39. | stresses that LRAs could have a key role to play in fighting cybercrime, collating cyber-related data and protecting data security considering that breaches of security are a threat to utility services — local water, energy, and given they use and own many digital information products and services; |
| --- | --- |

39.

stresses that LRAs could have a key role to play in fighting cybercrime, collating cyber-related data and protecting data security considering that breaches of security are a threat to utility services — local water, energy, and given they use and own many digital information products and services;

| 40. | asks for partnerships to be encouraged and developed between all relevant actors to work on coordinated actions for cyber security and feed into cyber security actions at the national and EU level, with a view to combating e-crime and minimising its effects caused by direct financial or intellectual property theft, disruption of communications or damage to business-critical data (12); |
| --- | --- |

40.

asks for partnerships to be encouraged and developed between all relevant actors to work on coordinated actions for cyber security and feed into cyber security actions at the national and EU level, with a view to combating e-crime and minimising its effects caused by direct financial or intellectual property theft, disruption of communications or damage to business-critical data (12);

II.6   
  Final remarks

| 41. | considers that the actions planned in the amended proposal for Regulation, as they stand, do not appear to raise any issue regarding their compliance with both the principle of subsidiarity and proportionality; |
| --- | --- |

41.

considers that the actions planned in the amended proposal for Regulation, as they stand, do not appear to raise any issue regarding their compliance with both the principle of subsidiarity and proportionality;

| 42. | highlights the role of LRAs in promoting joint research programmes since LRAs are key players in developing regional research and innovation strategies and they often manage research institutions and they support innovative environments; |
| --- | --- |

42.

highlights the role of LRAs in promoting joint research programmes since LRAs are key players in developing regional research and innovation strategies and they often manage research institutions and they support innovative environments;

| 43. | stresses that LRAs should be systematically consulted in the conception, implementation and governance of the measures designed to provide financing for the trans-European telecommunication networks (particularly concerning the aspects related to broadband roll-out in less populated areas, provision of cross-border services, etc.). |
| --- | --- |

43.

stresses that LRAs should be systematically consulted in the conception, implementation and governance of the measures designed to provide financing for the trans-European telecommunication networks (particularly concerning the aspects related to broadband roll-out in less populated areas, provision of cross-border services, etc.).

III.   RECOMMENDATIONS FOR AMENDMENTS

Amendment 1

Preamble

| New | CoR amendment |
| --- | --- |
| | (10) | When further developing the digital services infrastructures, it will be crucial to ensure that all security requirements at every level are met to ensure adequate levels of privacy and protection of personal data and prevent any unauthorised tracking of any kind of personal information and profiling. |

New

CoR amendment

(10)

When further developing the digital services infrastructures, it will be crucial to ensure that all security requirements at every level are met to ensure adequate levels of privacy and protection of personal data and prevent any unauthorised tracking of any kind of personal information and profiling.

Reason

Nowadays, it is important to ensure the protection of personal data and apply privacy standards as security requirements because of the vulnerabilities that could compromise individual personal information including shopping preferences, medical status, health records, etc.

Amendment 2

Preamble, Point 1

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Telecommunications networks and services are increasingly becoming internet-based infrastructures, with broadband networks and digital services closely interrelated. The internet is becoming the dominant platform for communication, services, and doing business. Therefore, the trans-European availability of fast Internet access and digital services in the public interest is essential for economic growth and the Single Market. | Telecommunications networks and services are increasingly becoming internet-based infrastructures, with broadband networks and digital services closely interrelated. The internet is becoming the dominant platform for communication, services, and doing business. Therefore, the trans-European availability in all EU regions of fast Internet access at affordable prices and digital services in the public interest is essential for competitiveness, economic growth, social inclusion and the Single Market. |

Text proposed by the Commission

CoR amendment

Telecommunications networks and services are increasingly becoming internet-based infrastructures, with broadband networks and digital services closely interrelated. The internet is becoming the dominant platform for communication, services, and doing business. Therefore, the trans-European availability of fast Internet access and digital services in the public interest is essential for economic growth and the Single Market.

Telecommunications networks and services are increasingly becoming internet-based infrastructures, with broadband networks and digital services closely interrelated. The internet is becoming the dominant platform for communication, services, and doing business. Therefore, the trans-European availability in all EU regions of fast Internet access at affordable prices and digital services in the public interest is essential for competitiveness, economic growth, social inclusion and the Single Market.

Reason

Competitiveness and social inclusion are two important issues that should be taken into consideration.

Amendment 3

Preamble, Point 7

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| With regard to digital service infrastructures, building blocks shall take priority over other digital service infrastructures, since the former are a pre-condition for the later. Digital service infrastructures should, inter alia, create European added value and meet proven needs. They should be sufficiently mature for deployment, technically as well as operationally as proven in particular through successful piloting. They should be based on a concrete sustainability plan to ensure the long-term operation of core service platforms beyond the CEF.Financial assistance under this Regulation should therefore wherever possible be phased out over time and funding from sources other than the CEF should be mobilised. | With regard to digital service infrastructures, building blocks and digital services infrastructures with elements that can be used by other service providers shall take priority over other digital service infrastructures, since the former are
  provides a pre-condition
  basis for the later to build on. Digital service infrastructures should, inter alia, create European added value and meet proven needs. They should be sufficiently mature for deployment, technically as well as operationally as proven in particular through successful piloting. They should be based on a concretesustainability plan to ensure the long-term operation of core service platforms beyond the CEF. Financial assistance under this Regulation should therefore wherever possible be phased out over time and funding from sources other than the CEF should be mobilised. |

Text proposed by the Commission

CoR amendment

With regard to digital service infrastructures, building blocks shall take priority over other digital service infrastructures, since the former are a pre-condition for the later. Digital service infrastructures should, inter alia, create European added value and meet proven needs. They should be sufficiently mature for deployment, technically as well as operationally as proven in particular through successful piloting. They should be based on a concrete sustainability plan to ensure the long-term operation of core service platforms beyond the CEF.Financial assistance under this Regulation should therefore wherever possible be phased out over time and funding from sources other than the CEF should be mobilised.

With regard to digital service infrastructures, building blocks and digital services infrastructures with elements that can be used by other service providers shall take priority over other digital service infrastructures, since the former are
  provides a pre-condition
  basis for the later to build on. Digital service infrastructures should, inter alia, create European added value and meet proven needs. They should be sufficiently mature for deployment, technically as well as operationally as proven in particular through successful piloting. They should be based on a concretesustainability plan to ensure the long-term operation of core service platforms beyond the CEF. Financial assistance under this Regulation should therefore wherever possible be phased out over time and funding from sources other than the CEF should be mobilised.

Amendment 4

Preamble, Point 22

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The Commission should be assisted by an Expert Group of representatives of Member States which shall be consulted on and contribute to, inter alia, monitoring of the implementation of these guidelines, planning, evaluation and addressing implementation problems. | The Commission should be assisted by an Expert Group of representatives of Member States and one representative from the local and regional authorities which shall be consulted on and contribute to, inter alia, monitoring of the implementation of these guidelines, planning, evaluation and addressing implementation problems. |

Text proposed by the Commission

CoR amendment

The Commission should be assisted by an Expert Group of representatives of Member States which shall be consulted on and contribute to, inter alia, monitoring of the implementation of these guidelines, planning, evaluation and addressing implementation problems.

The Commission should be assisted by an Expert Group of representatives of Member States and one representative from the local and regional authorities which shall be consulted on and contribute to, inter alia, monitoring of the implementation of these guidelines, planning, evaluation and addressing implementation problems.

Reason

The participation of representatives from LRAs could be useful in the process of consultation due to their role in implementing of services.

Amendment 5

Article 3.2(b)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 3.2(b) | improvements in the daily life for citizens, businesses and governments through the promotion of interconnection and interoperability of national, regional and local telecommunications networks as well as access to such networks. |

Text proposed by the Commission

CoR amendment

3.2(b)

improvements in the daily life for citizens, businesses and governments through the promotion of interconnection and interoperability of national, regional and local telecommunications networks as well as access to such networks.

| 3.2(b) | improvements in the daily life and social and economic activities for citizens, businesses and governments through the promotion of interconnection and interoperability of national, regional and local telecommunications networks as well as access to such networks. |
| --- | --- |

3.2(b)

improvements in the daily life and social and economic activities for citizens, businesses and governments through the promotion of interconnection and interoperability of national, regional and local telecommunications networks as well as access to such networks.

Reason

Social and economic activities are connected to everyday life and are part of the local and regional priorities and together could stimulate development and more efficient public services as well as businesses.

Amendment 6

Article 3.3(b)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 3.3(b) | efficient flow of private and public investments to stimulate the deployment and modernisation of broadband networks in view to contribute towards achieving the broadband targets of the Digital Agenda for Europe. |

Text proposed by the Commission

CoR amendment

3.3(b)

efficient flow of private and public investments to stimulate the deployment and modernisation of broadband networks in view to contribute towards achieving the broadband targets of the Digital Agenda for Europe.

| 3.3(b) | efficient flow of private and public investments and the development of e-learning to stimulate the deployment and modernisation of broadband networks in view to contribute towards achieving the broadband targets of the Digital Agenda for Europe. |
| --- | --- |

3.3(b)

efficient flow of private and public investments and the development of e-learning to stimulate the deployment and modernisation of broadband networks in view to contribute towards achieving the broadband targets of the Digital Agenda for Europe.

Reason

The development of e-learning markets provides alternatives to finance content digitisation.

Amendment 7

Article 4.2

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Projects of common interest may encompass their entire cycle, including feasibility studies, implementation, continuous operation, coordination and evaluation. | Projects of common interest may encompass their entire cycle, including feasibility studies, implementation, continuous operation, coordination and evaluation.
  and should respect the principle of technology neutrality, which forms the basis of the EU electronic communications structure |

Text proposed by the Commission

CoR amendment

Projects of common interest may encompass their entire cycle, including feasibility studies, implementation, continuous operation, coordination and evaluation.

Projects of common interest may encompass their entire cycle, including feasibility studies, implementation, continuous operation, coordination and evaluation.
  and should respect the principle of technology neutrality, which forms the basis of the EU electronic communications structure

Reason

It is important to specify the principles that settle the structure of electronic communications, especially here in the context of establishing the projects of common interest.

Amendment 8

Article 7

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The Union may establish contacts, discuss, exchange information and cooperate with public authorities or any other organisations in third countries to achieve any objective pursued by these guidelines. Among other objectives, this cooperation shall seek to promote the interoperability between telecommunications networks in the Union and telecommunications networks of third countries. | The Union may establish contacts, discuss, exchange information and cooperate with public authorities or any other organisations in third countries , where this is in the public interest, to achieve any objective pursued by these guidelines. Among other objectives, this cooperation shall seek to promote the interoperability between telecommunications networks in the Union and telecommunications networks of third countries. This cooperation shall be coordinated with the strategies drawn up in the context of the Union’s external policies, in particular those covered by any macro-regional strategies which are already being implemented or are being prepared. |

Text proposed by the Commission

CoR amendment

The Union may establish contacts, discuss, exchange information and cooperate with public authorities or any other organisations in third countries to achieve any objective pursued by these guidelines. Among other objectives, this cooperation shall seek to promote the interoperability between telecommunications networks in the Union and telecommunications networks of third countries.

The Union may establish contacts, discuss, exchange information and cooperate with public authorities or any other organisations in third countries , where this is in the public interest, to achieve any objective pursued by these guidelines. Among other objectives, this cooperation shall seek to promote the interoperability between telecommunications networks in the Union and telecommunications networks of third countries. This cooperation shall be coordinated with the strategies drawn up in the context of the Union’s external policies, in particular those covered by any macro-regional strategies which are already being implemented or are being prepared.

Reason

Public interest should represent a priority for the preparation of decision making. Also, it is advisable to follow the existing policies and strategies while establishing external cooperation mechanisms.

Amendment 9

Article 8.1

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| On the basis of information received under Article 21 of the Regulation XXX establishing the CEF, Member States and the Commission shall exchange information about the progress made with the implementation of these guidelines. | On the basis of information received under Article 21 of the Regulation XXX establishing the CEF, Member States and the Commission shall exchange information and best practices about the progress made with the implementation of these guidelines . A yearly overview of that information shall be sent to the European Parliament. Member States shall involve local and regional authorities in the process. |

Text proposed by the Commission

CoR amendment

On the basis of information received under Article 21 of the Regulation XXX establishing the CEF, Member States and the Commission shall exchange information about the progress made with the implementation of these guidelines.

On the basis of information received under Article 21 of the Regulation XXX establishing the CEF, Member States and the Commission shall exchange information and best practices about the progress made with the implementation of these guidelines . A yearly overview of that information shall be sent to the European Parliament. Member States shall involve local and regional authorities in the process.

Reason

A suggestion for improving the transparency process.

Amendment 10

Article 8.2

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The Commission shall consult and be assisted by an Expert Group, composed of a representative of each Member State. | The Commission shall consult and be assisted by an Expert Group, composed of a representative of each Member State, including one representative of a regional government and one from local government. |

Text proposed by the Commission

CoR amendment

The Commission shall consult and be assisted by an Expert Group, composed of a representative of each Member State.

The Commission shall consult and be assisted by an Expert Group, composed of a representative of each Member State, including one representative of a regional government and one from local government.

Reason

The participation of local and regional government would be beneficial because public services in Europe are provided mainly by local and regional authorities and it is these services that are important for the daily life and free movement of businesses and individuals.

Amendment 11

Annex-Section 1-2(g)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Safer internet service infrastructure: This refers to the platform for acquiring, operating and maintaining shared computing facilities, databases and software tools for the Safer Internet Centres (SICs) in the Member States. Back-office operations to handle reporting of sex abuse content are also included as well as the link with police authorities including international organisations such as Interpol, and when appropriate, the handling of the take down of this content by the relevant web sites. This will be supported by common databases. | Safer internet service infrastructure: This refers to the platform for acquiring, operating and maintaining shared computing facilities, databases and software tools as well as exchange of best practices for the Safer Internet Centres (SICs) in the Member States. SICs in the Member States ensuring Union added value are the key element of the safer internet service infrastructure, of which national helplines, hotlines, awareness nodes and other awareness-raising activities are of particular importance. Back-office operations to handle reporting of sex abuse content are also included as well as the link with police authorities including international organisations such as Interpol, and when appropriate, the handling of the take down of this content by the relevant web sites. This will be supported by common databases and by common software systems. |

Text proposed by the Commission

CoR amendment

Safer internet service infrastructure: This refers to the platform for acquiring, operating and maintaining shared computing facilities, databases and software tools for the Safer Internet Centres (SICs) in the Member States. Back-office operations to handle reporting of sex abuse content are also included as well as the link with police authorities including international organisations such as Interpol, and when appropriate, the handling of the take down of this content by the relevant web sites. This will be supported by common databases.

Safer internet service infrastructure: This refers to the platform for acquiring, operating and maintaining shared computing facilities, databases and software tools as well as exchange of best practices for the Safer Internet Centres (SICs) in the Member States. SICs in the Member States ensuring Union added value are the key element of the safer internet service infrastructure, of which national helplines, hotlines, awareness nodes and other awareness-raising activities are of particular importance. Back-office operations to handle reporting of sex abuse content are also included as well as the link with police authorities including international organisations such as Interpol, and when appropriate, the handling of the take down of this content by the relevant web sites. This will be supported by common databases and by common software systems.

Reason

Best practice examples could help significantly SIC activity.

Brussels, 8 October 2013.

The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO

---

(1)  CdR 39/2006.

1

(2)  CdR 5/2008 fin.

2

(3)  CdR 156/2009 fin.

3

(4)  CdR 10/2009 fin.

4

(5)  CdR 104/2010 fin.

5

(6)  CdR 104/2010 fin.

6

(7)  CdR 247/2009 fin.

7

(8)  CdR 247/2009 fin.

8

(9)  CdR 626/2012 fin.

9

(10)  CdR 247/2009 fin.

10

(11)  CdR 247/2009 fin.

11

(12)  CDR1646-2013.

12

---

| 5.12.2013 | EN | Official Journal of the European Union | C 356/124 |
| --- | --- | --- | --- |

5.12.2013

EN

Official Journal of the European Union

C 356/124

---

Opinion of the Committee of the Regions on Proposed directive for maritime spatial planning and integrated coastal management

2013/C 356/18

THE COMMITTEE OF THE REGIONS

| — | highlights that the proposed Directive is made in the context of a number of Member States already having MSP and ICM policies, to which local and regional authorities are key players; furthermore, would wish the proposal not to affect the competences that exist with and within Member States in the field of spatial planning; |
| --- | --- |

—

highlights that the proposed Directive is made in the context of a number of Member States already having MSP and ICM policies, to which local and regional authorities are key players; furthermore, would wish the proposal not to affect the competences that exist with and within Member States in the field of spatial planning;

| — | considers that the question of whether the EU should legislate remains open and that the question of how it should legislate also needs to be addressed; suggests in this regard, that the proposal as currently worded breaches the proportionality principle; |
| --- | --- |

—

considers that the question of whether the EU should legislate remains open and that the question of how it should legislate also needs to be addressed; suggests in this regard, that the proposal as currently worded breaches the proportionality principle;

| — | suggests that the proposed Directive provides insufficient flexibility for implementation as: (a) it cuts across well-established informal processes for ICM, in some of the Member States; and (b) the proposals on ICM, in particular, impinge directly on existing competences for spatial planning policy and practice held at regional and/or local level; |
| --- | --- |

—

suggests that the proposed Directive provides insufficient flexibility for implementation as: (a) it cuts across well-established informal processes for ICM, in some of the Member States; and (b) the proposals on ICM, in particular, impinge directly on existing competences for spatial planning policy and practice held at regional and/or local level;

| — | underlines that a framework Directive must not establish the content of maritime spatial plans; |
| --- | --- |

—

underlines that a framework Directive must not establish the content of maritime spatial plans;

| — | believes that a framework Directive should set common principles and facilitate cross-border cooperation and cooperation between national authorities which have competence for their shorelines and leave the definition of ‘coastal zones’ to Member State authorities; |
| --- | --- |

—

believes that a framework Directive should set common principles and facilitate cross-border cooperation and cooperation between national authorities which have competence for their shorelines and leave the definition of ‘coastal zones’ to Member State authorities;

| — | highlights that the proposed Directive, as currently worded, will have negative consequences for local/regional planning policy and procedures, as the proposal will subject spatial plans with a coastal dimension to minimum sector-specific content requirements, which considerably undermine the autonomy of planning authorities to balance the needs of all appropriate uses. |
| --- | --- |

—

highlights that the proposed Directive, as currently worded, will have negative consequences for local/regional planning policy and procedures, as the proposal will subject spatial plans with a coastal dimension to minimum sector-specific content requirements, which considerably undermine the autonomy of planning authorities to balance the needs of all appropriate uses.

| Rapporteur | Mr Paul O'DONOGHUE, Member of Kerry County Council and South West Regional Authority (IE/ALDE) |
| --- | --- |
| Reference document | Proposal for a Directive of the European Parliament and of the Council establishing a framework for maritime spatial planning and integrated coastal management
  COM(2013) 133 final |

Rapporteur

Mr Paul O'DONOGHUE, Member of Kerry County Council and South West Regional Authority (IE/ALDE)

Reference document

Proposal for a Directive of the European Parliament and of the Council establishing a framework for maritime spatial planning and integrated coastal management

COM(2013) 133 final

I.   POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS

General comments

| 1. | supports the general aims of the proposed Directive to: achieve a more effective management of marine activities and efficient use of marine resources; develop consistent and evidence-based decision-making and enhanced cooperation of coastal and marine management; facilitate the coherent implementation of key EU policy objectives (1) and contribute to sustainable growth and the development of the ‘blue economy’; |
| --- | --- |

1.

supports the general aims of the proposed Directive to: achieve a more effective management of marine activities and efficient use of marine resources; develop consistent and evidence-based decision-making and enhanced cooperation of coastal and marine management; facilitate the coherent implementation of key EU policy objectives (1) and contribute to sustainable growth and the development of the ‘blue economy’;

| 2. | welcomes efforts to achieve better coordination between land-based and sea-based activities; endorses coherent European policy based on international best practice and sympathetic to established national practices; and supports the development of common principles for Marine Spatial Planning (MSP) and Integrated Coastal Management (ICM); |
| --- | --- |

2.

welcomes efforts to achieve better coordination between land-based and sea-based activities; endorses coherent European policy based on international best practice and sympathetic to established national practices; and supports the development of common principles for Marine Spatial Planning (MSP) and Integrated Coastal Management (ICM);

| 3. | highlights that the proposed Directive is made in the context of a number of Member States already having MSP and ICM policies, or developing such policies, to which local and regional authorities are key players; furthermore, would wish the proposal not to affect the competences that exist with and within Member States in the field of spatial planning; |
| --- | --- |

3.

highlights that the proposed Directive is made in the context of a number of Member States already having MSP and ICM policies, or developing such policies, to which local and regional authorities are key players; furthermore, would wish the proposal not to affect the competences that exist with and within Member States in the field of spatial planning;

| 4. | given that ‘maritime spatial planning’ requires regular consultations between the Member States, the EU's role in this area should be limited to establishing a procedural framework or procedural standards; |
| --- | --- |

4.

given that ‘maritime spatial planning’ requires regular consultations between the Member States, the EU's role in this area should be limited to establishing a procedural framework or procedural standards;

| 5. | regrets the lack of targeted consultation on the Impact Assessment with local and regional authorities, as planning authorities and key implementers of the proposed Directive; |
| --- | --- |

5.

regrets the lack of targeted consultation on the Impact Assessment with local and regional authorities, as planning authorities and key implementers of the proposed Directive;

Legal base

| 6. | recognises that the proposed Directive follows on from the establishment of the Integrated Maritime Policy in 2007 and the adoption of a ‘Blue Growth’ agenda in 2012, but nevertheless understands a number of the concerns that have been expressed on the multiple legal base of the proposed Directive; |
| --- | --- |

6.

recognises that the proposed Directive follows on from the establishment of the Integrated Maritime Policy in 2007 and the adoption of a ‘Blue Growth’ agenda in 2012, but nevertheless understands a number of the concerns that have been expressed on the multiple legal base of the proposed Directive;

| 7. | in this regard notes the opinion of the Council Legal Service (2) regarding the multiple legal basis used for the proposed Directive; considers that greater clarity will be required when the European Commission makes future proposals using multiple legal bases or using Article 3 (TEU-territorial cohesion) that may have direct and/or indirect implications for spatial planning policy and practice in the Member States; |
| --- | --- |

7.

in this regard notes the opinion of the Council Legal Service (2) regarding the multiple legal basis used for the proposed Directive; considers that greater clarity will be required when the European Commission makes future proposals using multiple legal bases or using Article 3 (TEU-territorial cohesion) that may have direct and/or indirect implications for spatial planning policy and practice in the Member States;

Subsidiarity and proportionality principles

| 8. | highlights that the subsidiarity check by national (and regional) parliaments produced nine negative reasoned opinions (3); agrees that elements of the proposed Directive fail to adequately meet necessity and added-value requirements for legislation at EU level; |
| --- | --- |

8.

highlights that the subsidiarity check by national (and regional) parliaments produced nine negative reasoned opinions (3); agrees that elements of the proposed Directive fail to adequately meet necessity and added-value requirements for legislation at EU level;

| 9. | appreciates that there are concerns regarding: (a) competence — lack of clear competence at EU level, while MSP and ICM are already national, regional and/or local competences in some Member States; (b) failure of the proposed Directive to adequately take account of regional/local specificities of coastal areas and existing planning and management practices; and (c) the appropriateness of using EU legislation to address specific cross-border issues and the adequacy of the EU level to frame cooperation with third countries, where international maritime conventions already operate; |
| --- | --- |

9.

appreciates that there are concerns regarding: (a) competence — lack of clear competence at EU level, while MSP and ICM are already national, regional and/or local competences in some Member States; (b) failure of the proposed Directive to adequately take account of regional/local specificities of coastal areas and existing planning and management practices; and (c) the appropriateness of using EU legislation to address specific cross-border issues and the adequacy of the EU level to frame cooperation with third countries, where international maritime conventions already operate;

| 10. | considers that the question of whether the EU should legislate remains open and that the question of how it should legislate also needs to be addressed; suggests in this regard, that the proposal as currently worded breaches the proportionality principle; |
| --- | --- |

10.

considers that the question of whether the EU should legislate remains open and that the question of how it should legislate also needs to be addressed; suggests in this regard, that the proposal as currently worded breaches the proportionality principle;

| 11. | considers that the proposed Directive is too prescriptive; disagrees with the listing of minimum requirements in Articles 6-8 as these limit the scope for regional or local priority setting and are in contrast to the stated objectives of the Directive being procedural only and not intervening in planning detail; |
| --- | --- |

11.

considers that the proposed Directive is too prescriptive; disagrees with the listing of minimum requirements in Articles 6-8 as these limit the scope for regional or local priority setting and are in contrast to the stated objectives of the Directive being procedural only and not intervening in planning detail;

| 12. | suggests that the proposed Directive provides insufficient flexibility for implementation as: (a) it cuts across well-established informal processes for ICM, in some of the Member States; and (b) the proposals on ICM, in particular, impinge directly on existing competences for spatial planning policy and practice held at regional and/or local level; |
| --- | --- |

12.

suggests that the proposed Directive provides insufficient flexibility for implementation as: (a) it cuts across well-established informal processes for ICM, in some of the Member States; and (b) the proposals on ICM, in particular, impinge directly on existing competences for spatial planning policy and practice held at regional and/or local level;

| 13. | questions, furthermore, the prescriptive approach to other aspects of the proposal, such as the setting of timeframes for the review of plans and strategies (Article 6) and the requirements on reporting (Article 15); considers that the associated increase in bureaucracy, administrative burden and additional costs in implementing the Directive, particularly at local level, further undermine its added-value; |
| --- | --- |

13.

questions, furthermore, the prescriptive approach to other aspects of the proposal, such as the setting of timeframes for the review of plans and strategies (Article 6) and the requirements on reporting (Article 15); considers that the associated increase in bureaucracy, administrative burden and additional costs in implementing the Directive, particularly at local level, further undermine its added-value;

| 14. | has reservations on the proposed use of further Implementing Acts on operational steps for the establishment of plans and strategies (Article 16); feels these go beyond what is required to help implement the obligations of the Directive and seem to suggest that the European Commission considers the Directive, as currently proposed, in need of further strengthening; suggests that the proposed use of Implementing Acts should be reconsidered so that these focus on procedural aspects only; |
| --- | --- |

14.

has reservations on the proposed use of further Implementing Acts on operational steps for the establishment of plans and strategies (Article 16); feels these go beyond what is required to help implement the obligations of the Directive and seem to suggest that the European Commission considers the Directive, as currently proposed, in need of further strengthening; suggests that the proposed use of Implementing Acts should be reconsidered so that these focus on procedural aspects only;

Maritime Spatial Planning (MSP)

| 15. | fully supports the development of MSP as a multi-sector tool to facilitate the implementation of the ecosystem approach, to support the rational use of maritime resources, to reconcile concurrent human activities and minimise impact on the marine environment, as well as ensuring climate-resilient coastal and marine areas; further supports a plan-led approach that provides clear rules to help foster long-term investment and thus increase the contribution made by maritime activities to achieving the objectives of the Europe 2020 strategy; |
| --- | --- |

15.

fully supports the development of MSP as a multi-sector tool to facilitate the implementation of the ecosystem approach, to support the rational use of maritime resources, to reconcile concurrent human activities and minimise impact on the marine environment, as well as ensuring climate-resilient coastal and marine areas; further supports a plan-led approach that provides clear rules to help foster long-term investment and thus increase the contribution made by maritime activities to achieving the objectives of the Europe 2020 strategy;

| 16. | underlines that MSP must be developed as a neutral planning tool which incorporates a certain level of flexibility to accommodate appropriate policy processes for diverse marine environments; further calls for clarity on the scope of the ecosystem-based approach of the draft Directive as there will need to be a balance between economic development and environmental protection; rejects therefore the setting of ‘top-down’ priorities and minimum requirements for management plans and using MSP as an instrument to ensure implementation of sector specific policy objectives; |
| --- | --- |

16.

underlines that MSP must be developed as a neutral planning tool which incorporates a certain level of flexibility to accommodate appropriate policy processes for diverse marine environments; further calls for clarity on the scope of the ecosystem-based approach of the draft Directive as there will need to be a balance between economic development and environmental protection; rejects therefore the setting of ‘top-down’ priorities and minimum requirements for management plans and using MSP as an instrument to ensure implementation of sector specific policy objectives;

| 17. | considers that the proposed Directive, as currently worded, is too detailed and insufficiently flexible to fully take account of: existing MSP practices; the need to maintain the setting of management priorities at the national or sub-national level; and the regional specificity of the marine resource; |
| --- | --- |

17.

considers that the proposed Directive, as currently worded, is too detailed and insufficiently flexible to fully take account of: existing MSP practices; the need to maintain the setting of management priorities at the national or sub-national level; and the regional specificity of the marine resource;

| 18. | supports, however, the adoption of a framework Directive for establishing MSP in the European Union, which, taking account of existing practices in some Member States, should: establish the obligation for maritime spatial plans; set common principles; establish minimum requirements for cross-border cooperation and the coordination of maritime plans; and set principles for reconciliation of competing uses in the maritime space and competing objectives of different Marine Spatial Plans; |
| --- | --- |

18.

supports, however, the adoption of a framework Directive for establishing MSP in the European Union, which, taking account of existing practices in some Member States, should: establish the obligation for maritime spatial plans; set common principles; establish minimum requirements for cross-border cooperation and the coordination of maritime plans; and set principles for reconciliation of competing uses in the maritime space and competing objectives of different Marine Spatial Plans;

| 19. | underlines that a framework Directive must not establish the content of maritime spatial plans; |
| --- | --- |

19.

underlines that a framework Directive must not establish the content of maritime spatial plans;

| 20. | highlights that, in supporting MSP, the development of the ‘blue economy’ requires integrated management of which MSP is part of the solution, but not the solution, and that maritime governance needs to be improved; |
| --- | --- |

20.

highlights that, in supporting MSP, the development of the ‘blue economy’ requires integrated management of which MSP is part of the solution, but not the solution, and that maritime governance needs to be improved;

| 21. | is therefore surprised that, given its prescriptive nature, the draft Directive is silent on the governance principles required; thus considers that maritime policy and MSP in particular requires a multi-level, cross-sectoral governance approach; acknowledges that whilst Member States have responsibility for administering territorial waters and the EEZs, regional and local authorities by virtue of their spatial planning and management competences can ensure coherence and coordination between maritime and terrestrial spatial planning approaches; |
| --- | --- |

21.

is therefore surprised that, given its prescriptive nature, the draft Directive is silent on the governance principles required; thus considers that maritime policy and MSP in particular requires a multi-level, cross-sectoral governance approach; acknowledges that whilst Member States have responsibility for administering territorial waters and the EEZs, regional and local authorities by virtue of their spatial planning and management competences can ensure coherence and coordination between maritime and terrestrial spatial planning approaches;

Integrated Coastal Management (ICM)

| 22. | underlines that it has been a long-term advocate and supporter of ICM (formerly ICZM) and recognises that ICM can play a significant role in achieving synergies between planning frameworks for the marine and terrestrial environments and building consensus among concerned stakeholders; |
| --- | --- |

22.

underlines that it has been a long-term advocate and supporter of ICM (formerly ICZM) and recognises that ICM can play a significant role in achieving synergies between planning frameworks for the marine and terrestrial environments and building consensus among concerned stakeholders;

| 23. | draws attention to the definition of ‘coastal zone’ (Article 3.1) and in particular the implications this has on local/regional planning authorities; in particular, considers that defining the seaward side of the zone to include the entire territorial sea as a very wide delimitation and beyond the scope of existing planning authorities (including their human and financial resources) in a number of Member States and that the defined landward side of the zone lacks clarity and clearly has direct implications for existing land-use plans and practices; |
| --- | --- |

23.

draws attention to the definition of ‘coastal zone’ (Article 3.1) and in particular the implications this has on local/regional planning authorities; in particular, considers that defining the seaward side of the zone to include the entire territorial sea as a very wide delimitation and beyond the scope of existing planning authorities (including their human and financial resources) in a number of Member States and that the defined landward side of the zone lacks clarity and clearly has direct implications for existing land-use plans and practices;

| 24. | believes that a framework Directive should set common principles and facilitate cross-border cooperation and cooperation between national authorities which have competence for their shorelines and leave the definition of ‘coastal zones’ to Member State authorities, when necessary and as appropriate to the planning policy and practice in their jurisdictions; |
| --- | --- |

24.

believes that a framework Directive should set common principles and facilitate cross-border cooperation and cooperation between national authorities which have competence for their shorelines and leave the definition of ‘coastal zones’ to Member State authorities, when necessary and as appropriate to the planning policy and practice in their jurisdictions;

| 25. | considers that the interface between land-sea planning must take a more holistic approach, given that the interconnections between land and sea go beyond the ‘coastal zone’ (such as the influence of river basins further inland, the impact of ports as regional development hubs, the interconnectedness of transportation routes and energy generation and transmission systems; etc.) and suggests that Member States must have greater flexibility in determining which tools to use to enable effective coordination between land-based and sea-based activities; |
| --- | --- |

25.

considers that the interface between land-sea planning must take a more holistic approach, given that the interconnections between land and sea go beyond the ‘coastal zone’ (such as the influence of river basins further inland, the impact of ports as regional development hubs, the interconnectedness of transportation routes and energy generation and transmission systems; etc.) and suggests that Member States must have greater flexibility in determining which tools to use to enable effective coordination between land-based and sea-based activities;

| 26. | questions, therefore, the value of transforming what is currently an informal management approach into an additional formal planning tool; is unconvinced by Article 2.3 which says that ‘the provisions of this Directive shall be without prejudice to Member States' competences for town and country planning’ as it considers legislating for Integrated Coastal Management as terrestrial planning legislation, which is primarily a competence at Member State level although in some Member States this legislative competence lies with the regions; believes that the implementation of the Directive will have a direct impact on planning practice at national, regional and local levels and for these reasons has strong reservations about making the production of ICM strategies an obligation in all coastal Member States (4); |
| --- | --- |

26.

questions, therefore, the value of transforming what is currently an informal management approach into an additional formal planning tool; is unconvinced by Article 2.3 which says that ‘the provisions of this Directive shall be without prejudice to Member States' competences for town and country planning’ as it considers legislating for Integrated Coastal Management as terrestrial planning legislation, which is primarily a competence at Member State level although in some Member States this legislative competence lies with the regions; believes that the implementation of the Directive will have a direct impact on planning practice at national, regional and local levels and for these reasons has strong reservations about making the production of ICM strategies an obligation in all coastal Member States (4);

| 27. | recalls the ICZM Recommendation (2002) which considered that ‘given the diversity of conditions in the coastal zones and the legal and institutional frameworks in the Member States, the objectives of the proposed action (implementing ICZM in Europe) can best be achieved by guidance at the Community level’ (5); suggests that little has changed since then and regrets that the European Commission did not give full consideration of all non-binding options to strengthen the implementation of ICM; |
| --- | --- |

27.

recalls the ICZM Recommendation (2002) which considered that ‘given the diversity of conditions in the coastal zones and the legal and institutional frameworks in the Member States, the objectives of the proposed action (implementing ICZM in Europe) can best be achieved by guidance at the Community level’ (5); suggests that little has changed since then and regrets that the European Commission did not give full consideration of all non-binding options to strengthen the implementation of ICM;

| 28. | considers, however, that ICM must continue to play an important role in complementing MSP and helping to manage coastal resources and engage concerned stakeholders; calls on the European Commission to reconsider how this could be reinvigorated by developing more appropriate non-binding measures; proposes that Member States assess what specific measures need to be taken to ensure better consistency between land-use and marine spatial plans; |
| --- | --- |

28.

considers, however, that ICM must continue to play an important role in complementing MSP and helping to manage coastal resources and engage concerned stakeholders; calls on the European Commission to reconsider how this could be reinvigorated by developing more appropriate non-binding measures; proposes that Member States assess what specific measures need to be taken to ensure better consistency between land-use and marine spatial plans;

Local and regional impacts

| 29. | underlines the role that local and regional authorities play in spatial planning policy, including in existing MSP and ICM practices; also highlights that local and regional authorities already engage in bilateral cross-border coordination in spatial planning policy; |
| --- | --- |

29.

underlines the role that local and regional authorities play in spatial planning policy, including in existing MSP and ICM practices; also highlights that local and regional authorities already engage in bilateral cross-border coordination in spatial planning policy;

| 30. | supports existing regional cooperation initiatives, at macro-regional or sea-basin level; regrets that the proposed Directive has not specifically provided for the diversity of maritime environments and the potential closer cooperation taking such regional specificities into account; furthermore considers that provisions will have to be made for the unpredictability of dealing with some third countries and the complexity for the Outermost Regions; |
| --- | --- |

30.

supports existing regional cooperation initiatives, at macro-regional or sea-basin level; regrets that the proposed Directive has not specifically provided for the diversity of maritime environments and the potential closer cooperation taking such regional specificities into account; furthermore considers that provisions will have to be made for the unpredictability of dealing with some third countries and the complexity for the Outermost Regions;

| 31. | considers that the potential intended and unintended impacts of the proposed Directive at local/regional level will be significant, particularly in terms of (a) impacting on existing competences at local/regional level in planning policy and practice; and (b) imposing additional administrative and financial burdens; |
| --- | --- |

31.

considers that the potential intended and unintended impacts of the proposed Directive at local/regional level will be significant, particularly in terms of (a) impacting on existing competences at local/regional level in planning policy and practice; and (b) imposing additional administrative and financial burdens;

| 32. | highlights that the proposed Directive, as currently worded, will have negative consequences for local/regional planning policy and procedures, as the proposal will subject spatial plans with a coastal dimension to minimum sector-specific content requirements, which considerably undermine the autonomy of planning authorities to balance the needs of all appropriate uses; |
| --- | --- |

32.

highlights that the proposed Directive, as currently worded, will have negative consequences for local/regional planning policy and procedures, as the proposal will subject spatial plans with a coastal dimension to minimum sector-specific content requirements, which considerably undermine the autonomy of planning authorities to balance the needs of all appropriate uses;

| 33. | considers that the proposed timescale to have maritime plans and coastal strategies in place within 36 months of the Directive entering into force is very ambitious; highlights that such timeframes would be impossible to comply with where MSP and ICM are in their infancy; proposes therefore that such timescales should be extended; |
| --- | --- |

33.

considers that the proposed timescale to have maritime plans and coastal strategies in place within 36 months of the Directive entering into force is very ambitious; highlights that such timeframes would be impossible to comply with where MSP and ICM are in their infancy; proposes therefore that such timescales should be extended;

| 34. | questions, more specifically, the logic of requiring a review of maritime spatial plans and integrated coastal management strategies at least every six years, on the grounds that this will be a difficult and costly exercise for the competent authorities and that it does not necessarily conform with well-established plan review cycles in the Member States; |
| --- | --- |

34.

questions, more specifically, the logic of requiring a review of maritime spatial plans and integrated coastal management strategies at least every six years, on the grounds that this will be a difficult and costly exercise for the competent authorities and that it does not necessarily conform with well-established plan review cycles in the Member States;

| 35. | highlights that implementation will place significant additional burdens on planning authorities at local and regional levels, as well as requiring such authorities, at a time of budget restraint, to find additional financial and human resources, including (scarce) suitably qualified marine spatial planners, to comply with the Directive; |
| --- | --- |

35.

highlights that implementation will place significant additional burdens on planning authorities at local and regional levels, as well as requiring such authorities, at a time of budget restraint, to find additional financial and human resources, including (scarce) suitably qualified marine spatial planners, to comply with the Directive;

| 36. | is concerned that no detailed assessment has been made by the European Commission on the extent of the additional administrative burden and costs of implementation, a significant amount of which will be borne by local and regional authorities; suggests that these impacts undermine the added-value aspects of the proposed Directive for these authorities; |
| --- | --- |

36.

is concerned that no detailed assessment has been made by the European Commission on the extent of the additional administrative burden and costs of implementation, a significant amount of which will be borne by local and regional authorities; suggests that these impacts undermine the added-value aspects of the proposed Directive for these authorities;

| 37. | proposes, therefore, that the European Commission undertakes a detailed ex-ante assessment of: (a) the impact of the Directive on existing planning policy and practice in coastal regions; and (b) the additional costs of implementing the Directive, particularly at local and regional levels. |
| --- | --- |

37.

proposes, therefore, that the European Commission undertakes a detailed ex-ante assessment of: (a) the impact of the Directive on existing planning policy and practice in coastal regions; and (b) the additional costs of implementing the Directive, particularly at local and regional levels.

II.   RECOMMENDATIONS FOR AMENDMENTS

Amendment 1

Recital 3

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The Integrated Maritime Policy identifies maritime spatial planning and integrated coastal management as cross-cutting policy tools for public authorities and stakeholders to apply a coordinated, integrated approach. The application of an ecosystem-based approach will contribute to promoting the sustainable growth of the maritime and coastal economies and the sustainable use of marine and coastal resources. | The Integrated Maritime Policy identifies maritime spatial planning and integrated coastal management as cross-cutting policy tools for public authorities and stakeholders to apply a coordinated, integrated and cross-border approach. The application of an ecosystem-based approach will contribute to promoting the sustainable growth of the maritime and coastal economies and the sustainable use of marine and coastal resources. |

Text proposed by the Commission

CoR amendment

The Integrated Maritime Policy identifies maritime spatial planning and integrated coastal management as cross-cutting policy tools for public authorities and stakeholders to apply a coordinated, integrated approach. The application of an ecosystem-based approach will contribute to promoting the sustainable growth of the maritime and coastal economies and the sustainable use of marine and coastal resources.

The Integrated Maritime Policy identifies maritime spatial planning and integrated coastal management as cross-cutting policy tools for public authorities and stakeholders to apply a coordinated, integrated and cross-border approach. The application of an ecosystem-based approach will contribute to promoting the sustainable growth of the maritime and coastal economies and the sustainable use of marine and coastal resources.

Reason

Stronger cross-border cooperation is crucial for the integrated maritime policy, particularly for maritime spatial planning (MSP) and integrated coastal zone management (ICZM).

Amendment 2

Recital 12

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| While it is appropriate for the Union to lay down rules on maritime spatial plans and integrated coastal management strategies, Member States and their competent authorities remain responsible for designing and determining, within their marine waters and coastal zones, the content of such plans and strategies, including the apportionment of maritime space to the different sector activities | While it is appropriate for the Union to lay down rules on
  establish a framework for maritime spatial plans and integrated coastal management strategies, Member States and their competent authorities remain responsible for designing and determining, within their marine waters and coastal zones, the content of such plans and strategies, including the apportionment of maritime space to the different sector activities and maritime uses. |

Text proposed by the Commission

CoR amendment

While it is appropriate for the Union to lay down rules on maritime spatial plans and integrated coastal management strategies, Member States and their competent authorities remain responsible for designing and determining, within their marine waters and coastal zones, the content of such plans and strategies, including the apportionment of maritime space to the different sector activities

While it is appropriate for the Union to lay down rules on
  establish a framework for maritime spatial plans and integrated coastal management strategies, Member States and their competent authorities remain responsible for designing and determining, within their marine waters and coastal zones, the content of such plans and strategies, including the apportionment of maritime space to the different sector activities and maritime uses.

Amendment 3

Article 3.2

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 2. | ‘Integrated Maritime Policy’ means the Union policy with the aim to foster coordinated and coherent decision-making to maximise the sustainable development, economic growth and social cohesion of Member States, in particular with regard to coastal, insular and outermost regions in the Union, as well as maritime sectors, through coherent maritime-related policies and relevant international cooperation. |

Text proposed by the Commission

CoR amendment

2.

‘Integrated Maritime Policy’ means the Union policy with the aim to foster coordinated and coherent decision-making to maximise the sustainable development, economic growth and social cohesion of Member States, in particular with regard to coastal, insular and outermost regions in the Union, as well as maritime sectors, through coherent maritime-related policies and relevant international cooperation.

| 2. | ‘Integrated Maritime Policy’ means the Union policy with the aim to foster coordinated and coherent inter-sectoral and cross-border maritime governance designed
  decision-making to maximise the sustainable development, economic growth and social cohesion of Member States, in particular with regard to coastal, insular and outermost regions in the Union, as well as maritime sectors, through coherent maritime-related policies and relevant international cooperation. |
| --- | --- |

2.

‘Integrated Maritime Policy’ means the Union policy with the aim to foster coordinated and coherent inter-sectoral and cross-border maritime governance designed
  decision-making to maximise the sustainable development, economic growth and social cohesion of Member States, in particular with regard to coastal, insular and outermost regions in the Union, as well as maritime sectors, through coherent maritime-related policies and relevant international cooperation.

Amendment 4

Article 5

Objectives of maritime spatial plans and integrated coastal management strategies

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Maritime spatial plans and integrated coastal management strategies shall apply an ecosystem-based approach to facilitate the co-existence and prevent conflicts between competing sector activities in marine waters and coastal zones, and shall aim to contribute to:






  (a) | ... |

Text proposed by the Commission

CoR amendment

Maritime spatial plans and integrated coastal management strategies shall apply an ecosystem-based approach to facilitate the co-existence and prevent conflicts between competing sector activities in marine waters and coastal zones, and shall aim to contribute to:

(a)

...

| (b) | ... |
| --- | --- |

(b)

...

Maritime spatial plans and integrated coastal management strategies shall apply an ecosystem-based approach to facilitate the co-existence and prevent conflicts between competing sector activities in marine waters and coastal zones, and shall set out objectives that may include contributing
  aim to contribute to:

| (a) | ... |
| --- | --- |

(a)

...

| (b) | ... |
| --- | --- |

(b)

...

Reason

It should be clear that the objectives in the proposed legal text are illustrative. There must be sufficient flexibility to allow the competent authorities to decide priorities as appropriate for their marine environments and how these are delivered.

Amendment 5

Article 6

Common minimum requirements for maritime spatial plans and integrated coastal management strategies

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 1.   Maritime spatial plans and integrated coastal management strategies shall establish operational steps to achieve the objectives as set out in Article 5 taking into account all relevant activities and measures applicable to them.
  2.   In doing so, maritime spatial plans and integrated coastal management strategies shall, at least:






  (a) | be mutually coordinated, provided they are not integrated; |

Text proposed by the Commission

CoR amendment

1.   Maritime spatial plans and integrated coastal management strategies shall establish operational steps to achieve the objectives as set out in Article 5 taking into account all relevant activities and measures applicable to them.

2.   In doing so, maritime spatial plans and integrated coastal management strategies shall, at least:

(a)

be mutually coordinated, provided they are not integrated;

| (b) | ensure effective trans-boundary cooperation between Member States, and between national authorities and stakeholders of the relevant sector policies; |
| --- | --- |

(b)

ensure effective trans-boundary cooperation between Member States, and between national authorities and stakeholders of the relevant sector policies;

| (c) | identify the trans-boundary effects of maritime spatial plans and integrated coastal management strategies on the marine waters and coastal zones under the sovereignty or jurisdiction of third countries in the same marine region or sub-region and related coastal zones and deal with them in cooperation with the competent authorities of these countries in accordance with Articles 12 and 13; |
| --- | --- |

(c)

identify the trans-boundary effects of maritime spatial plans and integrated coastal management strategies on the marine waters and coastal zones under the sovereignty or jurisdiction of third countries in the same marine region or sub-region and related coastal zones and deal with them in cooperation with the competent authorities of these countries in accordance with Articles 12 and 13;

3.   Maritime spatial plans and integrated coastal management strategies shall be reviewed at least every 6 years.

1.   Maritime spatial plans and integrated coastal management strategies shall establish operational steps to achieve the objectives as set out in Article 5 taking into account all relevant activities and measures applicable to them.

2.   In doing so, maritime spatial plans and integrated coastal management strategies shall, at least:

| (a) | be mutually coordinated, provided they are not integrated; |
| --- | --- |

(a)

be mutually coordinated, provided they are not integrated;

| (b) | ensure effective trans-boundary cooperation between Member States, and between national authorities and stakeholders of the relevant sector policies; |
| --- | --- |

(b)

ensure effective trans-boundary cooperation between Member States, and between national authorities and stakeholders of the relevant sector policies;

| (c) | identify the trans-boundary effects of maritime spatial plans and integrated coastal management strategies on the marine waters and coastal zones under the sovereignty or jurisdiction of third countries in the same marine region or sub-region and related coastal zones and deal with them in cooperation with the competent authorities of these countries in accordance with Articles 12 and 13; |
| --- | --- |

(c)

identify the trans-boundary effects of maritime spatial plans and integrated coastal management strategies on the marine waters and coastal zones under the sovereignty or jurisdiction of third countries in the same marine region or sub-region and related coastal zones and deal with them in cooperation with the competent authorities of these countries in accordance with Articles 12 and 13;

3.   Maritime spatial plans and integrated coastal management strategies shall be reviewed in accordance with national plan review cycles

  or at least every 6 years.

Reason

Implementation cycles will have to vary from one Member State to another in order to reduce the administrative burden required and to ensure that the implementation of the Directive complies with existing and well established practice in the Member States.

Amendment 6

Article 7

Specific minimum requirements for maritime spatial plans

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 1.   Maritime spatial plans shall contain at least a mapping of marine waters which identifies the actual and potential spatial and temporal distribution of all relevant maritime activities in order to achieve the objectives as set out in Article 5.
  2.   When establishing maritime spatial plans Member States shall take into consideration, at least, the following activities:






  (a) | installations for the extraction of energy and the production of renewable energy; |

Text proposed by the Commission

CoR amendment

1.   Maritime spatial plans shall contain at least a mapping of marine waters which identifies the actual and potential spatial and temporal distribution of all relevant maritime activities in order to achieve the objectives as set out in Article 5.

2.   When establishing maritime spatial plans Member States shall take into consideration, at least, the following activities:

(a)

installations for the extraction of energy and the production of renewable energy;

| (b) | oil and gas extraction sites and infrastructures; |
| --- | --- |

(b)

oil and gas extraction sites and infrastructures;

| (c) | maritime transport routes; |
| --- | --- |

(c)

maritime transport routes;

| (d) | submarine cable and pipeline routes; |
| --- | --- |

(d)

submarine cable and pipeline routes;

| (e) | fishing areas; |
| --- | --- |

(e)

fishing areas;

| (f) | sea farming sites; |
| --- | --- |

(f)

sea farming sites;

| (g) | nature conservation sites. |
| --- | --- |

(g)

nature conservation sites.

1.   Maritime spatial plans shall contain at least a mapping of marine waters which identifies the actual and potential spatial and temporal distribution of all relevant maritime activities in order to achieve the objectives as set out in Article 5.

2.   When establishing maritime spatial plans Member States shall take into consideration, activities it considers relevant which may include
  at least, the following activities:

| (a) | installations for the extraction of energy and the production of renewable energy; |
| --- | --- |

(a)

installations for the extraction of energy and the production of renewable energy;

| (b) | oil and gas extraction sites and infrastructures; |
| --- | --- |

(b)

oil and gas extraction sites and infrastructures;

| (c) | maritime transport routes and recreational navigation zones; |
| --- | --- |

(c)

maritime transport routes and recreational navigation zones;

| (d) | submarine cable and pipeline routes; |
| --- | --- |

(d)

submarine cable and pipeline routes;

| (e) | fishing areas; |
| --- | --- |

(e)

fishing areas;

| (f) | sea farming sites; |
| --- | --- |

(f)

sea farming sites;

| (g) | nature conservation sites;. |
| --- | --- |

(g)

nature conservation sites;.

| h) | port areas (business, fishing, leisure). |
| --- | --- |

h)

port areas (business, fishing, leisure).

Reason

There must be sufficient flexibility to allow the competent authorities to decide priorities as appropriate for their marine environments and how these are delivered.

Recreational boating activities are highly developed in some regions of Europe and need to be taken into account in spatial planning, as do port areas which are important hubs for both maritime and land planning (road and rail networks).

Amendment 7

Article 8

Specific minimum requirements for integrated coastal management strategies

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 1.   Integrated coastal management strategies shall contain at least, an inventory of existing measures applied in coastal zones and an analysis of the need for additional actions in order to achieve the objectives set out in Article 5. The strategies shall provide for integrated and cross-sectoral policy implementation and consider interactions between terrestrial and maritime activities.
  2.   When establishing integrated coastal management strategies, Member States shall take into consideration, at least, the following activities:






  (a) | utilisation of specific natural resources including installations for the extraction of energy and the production of renewable energy; |

Text proposed by the Commission

CoR amendment

1.   Integrated coastal management strategies shall contain at least, an inventory of existing measures applied in coastal zones and an analysis of the need for additional actions in order to achieve the objectives set out in Article 5. The strategies shall provide for integrated and cross-sectoral policy implementation and consider interactions between terrestrial and maritime activities.

2.   When establishing integrated coastal management strategies, Member States shall take into consideration, at least, the following activities:

(a)

utilisation of specific natural resources including installations for the extraction of energy and the production of renewable energy;

| (b) | development of infrastructure, energy facilities, transport, ports, maritime works and other structures including green infrastructure; |
| --- | --- |

(b)

development of infrastructure, energy facilities, transport, ports, maritime works and other structures including green infrastructure;

| (c) | agriculture and industry; |
| --- | --- |

(c)

agriculture and industry;

| (d) | fishing and aquaculture; |
| --- | --- |

(d)

fishing and aquaculture;

| (e) | conservation, restoration and management of coastal ecosystems, ecosystem services and nature, coastal landscapes and islands; |
| --- | --- |

(e)

conservation, restoration and management of coastal ecosystems, ecosystem services and nature, coastal landscapes and islands;

| (f) | mitigation and adaptation to climate change. |
| --- | --- |

(f)

mitigation and adaptation to climate change.

1.   Integrated coastal management strategies shall contain at least, an inventory of existing measures applied in coastal zones and an analysis of the need for additional actions in order to achieve the objectives set out in Article 5. The strategies shall provide for integrated and cross-sectoral policy implementation and consider interactions between terrestrial and maritime activities.

2.   When establishing integrated coastal management strategies, Member States shall take into consideration, at least, the following activities:

| (a) | utilisation of specific natural resources including installations for the extraction of energy and the production of renewable energy; |
| --- | --- |

(a)

utilisation of specific natural resources including installations for the extraction of energy and the production of renewable energy;

| (b) | development of infrastructure, energy facilities, transport, ports, maritime works and other structures including green infrastructure; |
| --- | --- |

(b)

development of infrastructure, energy facilities, transport, ports, maritime works and other structures including green infrastructure;

| (c) | agriculture and industry; |
| --- | --- |

(c)

agriculture and industry;

| (d) | fishing and aquaculture; |
| --- | --- |

(d)

fishing and aquaculture;

| (e) | conservation, restoration and management of coastal ecosystems, ecosystem services and nature, coastal landscapes and islands; |
| --- | --- |

(e)

conservation, restoration and management of coastal ecosystems, ecosystem services and nature, coastal landscapes and islands;

| (f) | mitigation and adaptation to climate change. |
| --- | --- |

(f)

mitigation and adaptation to climate change.

Reason

Considers that legislating for ICM is the equivalent of land-use planning legislation, which is a competence of Member States. Furthermore, sees little added-value of formalising an existing informal management tool.

Amendment 8

Article 14

Competent authorities

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 1.   Each Member State shall designate for each coastal zone and marine region or sub-region concerned, the authority or authorities competent for the implementation of this Directive, including to ensure cooperation with other Member States as defined in Article 12 and cooperation with third countries as defined in Article 13.
  2.   Each Member State shall provide the Commission with a list of the competent authorities, together with the items of information listed in Annex I to this Directive.
  3.   At the same time, each Member State shall send to the Commission a list of their competent authorities responsible for those international bodies in which they participate and which are relevant for the implementation of this Directive.
  4.   Each Member State shall inform the Commission of any change to the information provided pursuant to paragraph 1 within six months of such a change coming into effect. | 1.   Each Member State, taking into account the need for a strong multi-level governance and cross-sectoral approach, shall designate for each coastal zone and marine region or sub-region concerned, the authority or authorities competent for the implementation of this Directive, including to ensure cooperation with other Member States as defined in Article 12 and cooperation with third countries as defined in Article 13.
  2.   Each Member State shall provide the Commission with a list of the competent authorities, together with the items of information listed in Annex I to this Directive.
  3.   At the same time, each Member State shall send to the Commission a list of their competent authorities responsible for those international bodies in which they participate and which are relevant for the implementation of this Directive.
  4.   Each Member State shall inform the Commission of any change to the information provided pursuant to paragraph 1 within six months of such a change coming into effect. |

Text proposed by the Commission

CoR amendment

1.   Each Member State shall designate for each coastal zone and marine region or sub-region concerned, the authority or authorities competent for the implementation of this Directive, including to ensure cooperation with other Member States as defined in Article 12 and cooperation with third countries as defined in Article 13.

2.   Each Member State shall provide the Commission with a list of the competent authorities, together with the items of information listed in Annex I to this Directive.

3.   At the same time, each Member State shall send to the Commission a list of their competent authorities responsible for those international bodies in which they participate and which are relevant for the implementation of this Directive.

4.   Each Member State shall inform the Commission of any change to the information provided pursuant to paragraph 1 within six months of such a change coming into effect.

1.   Each Member State, taking into account the need for a strong multi-level governance and cross-sectoral approach, shall designate for each coastal zone and marine region or sub-region concerned, the authority or authorities competent for the implementation of this Directive, including to ensure cooperation with other Member States as defined in Article 12 and cooperation with third countries as defined in Article 13.

2.   Each Member State shall provide the Commission with a list of the competent authorities, together with the items of information listed in Annex I to this Directive.

3.   At the same time, each Member State shall send to the Commission a list of their competent authorities responsible for those international bodies in which they participate and which are relevant for the implementation of this Directive.

4.   Each Member State shall inform the Commission of any change to the information provided pursuant to paragraph 1 within six months of such a change coming into effect.

Reason

Underlines in the legal text the need for a multi-level governance approach to the implementation of the Directive.

Amendment 9

Article 16

Implementing acts

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 1.   The Commission may, by means of implementing acts, adopt provisions on:






  (a) | operational specifications for management of data referred in Article 10, provided they have not been established by other EU legislation, such as Directive 2007/2/EC or 2008/56/EC, on






  — | the sharing of data, and interfacing with existing data management and collection processes; and |

Text proposed by the Commission

CoR amendment

1.   The Commission may, by means of implementing acts, adopt provisions on:

(a)

operational specifications for management of data referred in Article 10, provided they have not been established by other EU legislation, such as Directive 2007/2/EC or 2008/56/EC, on

—

the sharing of data, and interfacing with existing data management and collection processes; and

| (b) | the operational steps for the establishment and reporting on maritime spatial plans and integrated coastal management strategies concerning:






  — | coherence of reporting obligations under this Directive with other relevant Union legislation; |
| --- | --- | --- |

(b)

the operational steps for the establishment and reporting on maritime spatial plans and integrated coastal management strategies concerning:

—

coherence of reporting obligations under this Directive with other relevant Union legislation;

| — | monitoring and revision cycles; |
| --- | --- |

—

monitoring and revision cycles;

| — | cross-border cooperation modalities; |
| --- | --- |

—

cross-border cooperation modalities;

| — | public consultation. |
| --- | --- |

—

public consultation.

1.   The Commission may, by means of implementing acts, adopt provisions on:

| (a) | operational specifications for management of data referred in Article 10, provided they have not been established by other EU legislation, such as Directive 2007/2/EC or 2008/56/EC, on






  — | the sharing of data, and interfacing with existing data management and collection processes ; and |
| --- | --- | --- |

(a)

operational specifications for management of data referred in Article 10, provided they have not been established by other EU legislation, such as Directive 2007/2/EC or 2008/56/EC, on

—

the sharing of data, and interfacing with existing data management and collection processes ; and

| (b) | the operational steps for the establishment and reporting on maritime spatial plans and integrated coastal management strategies concerning:







  — | coherence of reporting obligations under this Directive with other relevant Union legislation; |
| --- | --- | --- |

(b)

the operational steps for the establishment and reporting on maritime spatial plans and integrated coastal management strategies concerning:

—

coherence of reporting obligations under this Directive with other relevant Union legislation;

| — | monitoring and revision cycles; |
| --- | --- |

—

monitoring and revision cycles;

| — | cross-border cooperation modalities; |
| --- | --- |

—

cross-border cooperation modalities;

| — | public consultation. |
| --- | --- |

—

public consultation.

2.   The implementing acts referred to in paragraph 1 shall be adopted in accordance with the procedure referred to in Article 17(2).

2.   The implementing acts referred to in paragraph 1 shall be adopted in accordance with the procedure referred to in Article 17(2).

Reason

There are significant reservations on the use of Implementing Acts, particularly on operational aspects for establishing plans and strategies, which go beyond what is required to help implement the obligations of the Directive.

Brussels, 9 October 2013.

The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO

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(1)  In particular the Marine Strategy Framework Directive, the Birds and Habitats Directives and the reformed Common Fisheries Policy.

1

(2)  Opinion of the Council Legal Service issued on 12 July 2013 (12283/13).

2

(3)  Negative reasoned opinions were issued by BE, DE, FI, IE, LT, NL, PL, SV, with two positive opinions by PT and RO.

3

(4)  The Barcelona Convention already places some obligations on Member States in the Mediterranean.

4

(5)  Recommendation concerning the implementation of Integrated Coastal Zone Management in Europe (2002/413/EC), Recital 17.

5

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