# Official Journal C 195/2006

| | ISSN 1725-2423 |
| --- | --- |
| Official Journal
  of the European Union | C 195 |
| | |
| English edition | Information and Notices | Volume 4918 August 2006 |

ISSN 1725-2423

Official Journal

of the European Union

C 195

English edition

Information and Notices

Volume 4918 August 2006

---

| Notice No | Contents | page |
| --- | --- | --- |
| | II   Preparatory Acts |
| | European Economic and Social Committee |
| | 427th plenary session, held on 17 and 18 May 2006 |
| 2006/C 195/1 | Opinion of the European Economic and Social Committee on the Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions Responding to the Five-Year Assessment of Community research activities (1999-2003) carried out by high level independent experts (COM(2005) 387 final) | 1 |
| 2006/C 195/2 | Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council on the placing on the market of pyrotechnic articles (COM(2005) 457 final — 2005/0194 (COD)) | 7 |
| 2006/C 195/3 | Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council relating to restrictions on the marketing and use of perfluorooctane sulfonates (amendment of Council Directive 76/769/EEC) (COM(2005) 618 final — 2005/0244 (COD)) | 10 |
| 2006/C 195/4 | Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council amending Council Directives 90/385/EEC and 93/42/EEC and Directive 98/8/EC of the European Parliament and the Council as regards the review of the medical device directives (COM(2005) 681 final — 2005/0263 (COD)) | 14 |
| 2006/C 195/5 | Opinion of the European Economic and Social Committee on the Proposal for a Council Directive on the exemption from taxes of imports of small consignments of goods of a non-commercial character from third countries (codified version) (COM(2006) 12 final — 2006/0007 (CNS)) | 19 |
| 2006/C 195/6 | Opinion of the European Economic and Social Committee on the Revised proposal for a Regulation of the European Parliament and of the Council on public passenger transport services by rail and by road (COM(2005) 319 final — 2000/0212 (COD)) | 20 |
| 2006/C 195/7 | Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council on the promotion of clean road transport vehicles (COM(2005) 634 final — 2005/0283 (COD)) | 26 |
| 2006/C 195/8 | Opinion of the European Economic and Social Committee on the Communication from the Commission to the Council and the European Parliament on the review of the Sustainable Development Strategy — A platform for action (COM(2005) 658 final) | 29 |
| 2006/C 195/9 | Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council on the assessment and management of floods (COM(2006) 15 final — 2006/0005 (COD)) | 37 |
| 2006/C 195/0 | Opinion of the European Economic and Social Committee on the Proposal for a Council Decision establishing a Community civil protection mechanism (recast) (COM(2006) 29 final — 2006/0009 (CNS)) | 40 |
| 2006/C 195/1 | Opinion of the European Economic and Social Committee on the Green Paper Improving the mental health of the population — Towards a strategy on mental health for the European Union (COM(2005) 484 final) | 42 |
| 2006/C 195/2 | Opinion of the European Economic and Social Committee on Flexicurity: the case of Denmark | 48 |
| 2006/C 195/3 | Opinion of the European Economic and Social Committee on the Amended proposal for a Council Directive amending Directive 77/388/EEC as regards the place of supply of services (COM(2005) 334 final — 2003/0329 (CNS)) | 54 |
| 2006/C 195/4 | Opinion of the European Economic and Social Committee on Tackling the corporation tax obstacles of small and medium-sized enterprises in the Internal Market — outline of a possible Home State Taxation pilot scheme (COM(2005) 702 final) | 58 |
| 2006/C 195/5 | Opinion of the European Economic and Social Committee on the Amended Proposal for a Council Regulation establishing a Cohesion Fund (Codified version) (COM(2006) 5 final — 2003/0129 (AVC)) | 61 |
| 2006/C 195/6 | Opinion of the European Economic and Social Committee on External action of the Union: the role of organised civil society | 62 |
| 2006/C 195/7 | Opinion of the European Economic and Social Committee on the Contribution to the European Council of 15-16 June 2006 — Period of reflection | 64 |
| 2006/C 195/8 | Opinion of the European Economic and Social Committee on the Proposal for a Council Decision on guidelines for the employment policies of the Member States (COM(2006) 32 final — 2006/0010 (CNS)) | 66 |
| 2006/C 195/9 | Opinion of the European Economic and Social Committee on the Communication from the Commission on the Biomass Action Plan (COM(2005) 628 final) | 69 |
| 2006/C 195/0 | Opinion of the European Economic and Social Committee on The development and promotion of alternative fuels for road transport in the European Union | 75 |
| 2006/C 195/1 | Opinion of the European Economic and Social Committee on the Proposal for a Council Directive on passenger car related taxes (COM(2005) 261 final — 2005/0130 (CNS)) | 80 |
| 2006/C 195/2 | Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council on ambient air quality and cleaner air for Europe (COM(2005) 447 final — 2005/0183 COD) | 84 |
| 2006/C 195/3 | Opinion of the European Economic and Social Committee on the Situation of civil society in the Western Balkans | 88 |
| 2006/C 195/4 | Opinion of the European Economic and Social Committee on the EU campaign to conserve biodiversity: position and contribution of civil society | 96 |
| 2006/C 195/5 | Opinion of the European Economic and Social Committee on Prioritising Africa: European civil society's perspective | 104 |
| 2006/C 195/6 | Opinion of the European Economic and Social Committee on the Proposal for a Recommendation of the European Parliament and of the Council on key competences for lifelong learning (COM(2005) 548 final — 2005/0221 (COD)) | 109 |

Notice No

Contents

page

II   Preparatory Acts

European Economic and Social Committee

427th plenary session, held on 17 and 18 May 2006

2006/C 195/1

Opinion of the European Economic and Social Committee on the Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions Responding to the Five-Year Assessment of Community research activities (1999-2003) carried out by high level independent experts (COM(2005) 387 final)

(COM(2005) 387 final)

1

2006/C 195/2

Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council on the placing on the market of pyrotechnic articles (COM(2005) 457 final — 2005/0194 (COD))

(COM(2005) 457 final — 2005/0194 (COD))

7

2006/C 195/3

Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council relating to restrictions on the marketing and use of perfluorooctane sulfonates (amendment of Council Directive 76/769/EEC) (COM(2005) 618 final — 2005/0244 (COD))

(COM(2005) 618 final — 2005/0244 (COD))

10

2006/C 195/4

Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council amending Council Directives 90/385/EEC and 93/42/EEC and Directive 98/8/EC of the European Parliament and the Council as regards the review of the medical device directives (COM(2005) 681 final — 2005/0263 (COD))

(COM(2005) 681 final — 2005/0263 (COD))

14

2006/C 195/5

Opinion of the European Economic and Social Committee on the Proposal for a Council Directive on the exemption from taxes of imports of small consignments of goods of a non-commercial character from third countries (codified version) (COM(2006) 12 final — 2006/0007 (CNS))

(COM(2006) 12 final — 2006/0007 (CNS))

19

2006/C 195/6

Opinion of the European Economic and Social Committee on the Revised proposal for a Regulation of the European Parliament and of the Council on public passenger transport services by rail and by road (COM(2005) 319 final — 2000/0212 (COD))

(COM(2005) 319 final — 2000/0212 (COD))

20

2006/C 195/7

Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council on the promotion of clean road transport vehicles (COM(2005) 634 final — 2005/0283 (COD))

(COM(2005) 634 final — 2005/0283 (COD))

26

2006/C 195/8

Opinion of the European Economic and Social Committee on the Communication from the Commission to the Council and the European Parliament on the review of the Sustainable Development Strategy — A platform for action (COM(2005) 658 final)

(COM(2005) 658 final)

29

2006/C 195/9

Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council on the assessment and management of floods (COM(2006) 15 final — 2006/0005 (COD))

(COM(2006) 15 final — 2006/0005 (COD))

37

2006/C 195/0

Opinion of the European Economic and Social Committee on the Proposal for a Council Decision establishing a Community civil protection mechanism (recast) (COM(2006) 29 final — 2006/0009 (CNS))

(COM(2006) 29 final — 2006/0009 (CNS))

40

2006/C 195/1

Opinion of the European Economic and Social Committee on the Green Paper Improving the mental health of the population — Towards a strategy on mental health for the European Union (COM(2005) 484 final)

(COM(2005) 484 final)

42

2006/C 195/2

Opinion of the European Economic and Social Committee on Flexicurity: the case of Denmark

48

2006/C 195/3

Opinion of the European Economic and Social Committee on the Amended proposal for a Council Directive amending Directive 77/388/EEC as regards the place of supply of services (COM(2005) 334 final — 2003/0329 (CNS))

(COM(2005) 334 final — 2003/0329 (CNS))

54

2006/C 195/4

Opinion of the European Economic and Social Committee on Tackling the corporation tax obstacles of small and medium-sized enterprises in the Internal Market — outline of a possible Home State Taxation pilot scheme (COM(2005) 702 final)

(COM(2005) 702 final)

58

2006/C 195/5

Opinion of the European Economic and Social Committee on the Amended Proposal for a Council Regulation establishing a Cohesion Fund (Codified version) (COM(2006) 5 final — 2003/0129 (AVC))

(COM(2006) 5 final — 2003/0129 (AVC))

61

2006/C 195/6

Opinion of the European Economic and Social Committee on External action of the Union: the role of organised civil society

62

2006/C 195/7

Opinion of the European Economic and Social Committee on the Contribution to the European Council of 15-16 June 2006 — Period of reflection

64

2006/C 195/8

Opinion of the European Economic and Social Committee on the Proposal for a Council Decision on guidelines for the employment policies of the Member States (COM(2006) 32 final — 2006/0010 (CNS))

(COM(2006) 32 final — 2006/0010 (CNS))

66

2006/C 195/9

Opinion of the European Economic and Social Committee on the Communication from the Commission on the Biomass Action Plan (COM(2005) 628 final)

(COM(2005) 628 final)

69

2006/C 195/0

Opinion of the European Economic and Social Committee on The development and promotion of alternative fuels for road transport in the European Union

75

2006/C 195/1

Opinion of the European Economic and Social Committee on the Proposal for a Council Directive on passenger car related taxes (COM(2005) 261 final — 2005/0130 (CNS))

(COM(2005) 261 final — 2005/0130 (CNS))

80

2006/C 195/2

Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council on ambient air quality and cleaner air for Europe (COM(2005) 447 final — 2005/0183 COD)

(COM(2005) 447 final — 2005/0183 COD)

84

2006/C 195/3

Opinion of the European Economic and Social Committee on the Situation of civil society in the Western Balkans

88

2006/C 195/4

Opinion of the European Economic and Social Committee on the EU campaign to conserve biodiversity: position and contribution of civil society

96

2006/C 195/5

Opinion of the European Economic and Social Committee on Prioritising Africa: European civil society's perspective

104

2006/C 195/6

Opinion of the European Economic and Social Committee on the Proposal for a Recommendation of the European Parliament and of the Council on key competences for lifelong learning (COM(2005) 548 final — 2005/0221 (COD))

(COM(2005) 548 final — 2005/0221 (COD))

109

| EN | |
| --- | --- |

EN

---

II Preparatory Acts

European Economic and Social Committee

427th plenary session, held on 17 and 18 May 2006

| 18.8.2006 | EN | Official Journal of the European Union | C 195/1 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/1

---

Opinion of the European Economic and Social Committee on the Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions Responding to the Five-Year Assessment of Community research activities (1999-2003) carried out by high level independent experts

(COM(2005) 387 final)

(2006/C 195/01)

On 24 August 2005 the Commission decided to consult the European Economic and Social Committee, under Article 262 of the Treaty establishing the European Community, on the abovementioned proposal.

The Section for the Single Market, Production and Consumption, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 25 April 2006. The rapporteur was Mr Braghin.

At its 427th plenary session, held on 17 and 18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 108 votes to one with one abstention.

1.   Gist of the Opinion

| 1.1 | The EESC values and supports the efforts made in the third five-year assessment and the engagement on a large scale of such high-powered intellectual resources and hopes that the recommendations from the various groups of experts, and particularly the panel responsible for the overall assessment (1), will serve as a constant point of reference in the implementation of the framework programmes, in the future framing of the research and innovation policy and, more generally, in the policies implementing the Lisbon Strategy. |
| --- | --- |

1.1

The EESC values and supports the efforts made in the third five-year assessment and the engagement on a large scale of such high-powered intellectual resources and hopes that the recommendations from the various groups of experts, and particularly the panel responsible for the overall assessment (1), will serve as a constant point of reference in the implementation of the framework programmes, in the future framing of the research and innovation policy and, more generally, in the policies implementing the Lisbon Strategy.

| 1.2 | The EESC has repeatedly expressed its support for substantially increasing the European R&D budget and therefore regrets the proposed reduction of this sum because it contradicts the priority of development imposed by competitive global challenges and called for by the Lisbon strategy. |
| --- | --- |

1.2

The EESC has repeatedly expressed its support for substantially increasing the European R&D budget and therefore regrets the proposed reduction of this sum because it contradicts the priority of development imposed by competitive global challenges and called for by the Lisbon strategy.

| 1.3 | The EESC stresses the importance of greater commitment by industry to research and innovative development to achieve the Barcelona Council goal and hopes to see more focused efforts at communication and at involving companies and producers' organisations and associations in order, among other things, to identify strategic fields of research in which European research excellence could emerge. |
| --- | --- |

1.3

The EESC stresses the importance of greater commitment by industry to research and innovative development to achieve the Barcelona Council goal and hopes to see more focused efforts at communication and at involving companies and producers' organisations and associations in order, among other things, to identify strategic fields of research in which European research excellence could emerge.

| 1.4 | The EESC calls for instruments to be developed to encourage private funding of research and development (from risk capital and venture capital to targeted EIB funding and credit facilities for research) to smooth the path from research results to specific business initiatives. |
| --- | --- |

1.4

The EESC calls for instruments to be developed to encourage private funding of research and development (from risk capital and venture capital to targeted EIB funding and credit facilities for research) to smooth the path from research results to specific business initiatives.

| 1.5 | The EESC agrees with the panel's position on the need to offer researchers greater autonomy and responsibility (albeit while respecting ethical principles), to give careers in science a higher profile, to guarantee greater interdisciplinary as well as spatial mobility and to integrate the Marie Curie system of grants with national and regional programmes and use them specifically to boost mobility between public and private sectors. |
| --- | --- |

1.5

The EESC agrees with the panel's position on the need to offer researchers greater autonomy and responsibility (albeit while respecting ethical principles), to give careers in science a higher profile, to guarantee greater interdisciplinary as well as spatial mobility and to integrate the Marie Curie system of grants with national and regional programmes and use them specifically to boost mobility between public and private sectors.

| 1.6 | The EESC calls for priority to be given to policies aimed at developing university teaching in science and engineering, increasing the number of female researchers, making careers in science more attractive and bringing researchers working abroad back into the European Union. It would also be helpful to have more science and technical courses in upper secondary education and a policy for promoting science as a degree option at university. |
| --- | --- |

1.6

The EESC calls for priority to be given to policies aimed at developing university teaching in science and engineering, increasing the number of female researchers, making careers in science more attractive and bringing researchers working abroad back into the European Union. It would also be helpful to have more science and technical courses in upper secondary education and a policy for promoting science as a degree option at university.

| 1.7 | In the interests of simplification, the EESC hopes to see calls for proposals which have clearer types of schemes and activities and categories of participants, greater flexibility and freedom of choice for the applicant, and simple guides on administrative and financial management, especially for the Contractual Agreement between participants. |
| --- | --- |

1.7

In the interests of simplification, the EESC hopes to see calls for proposals which have clearer types of schemes and activities and categories of participants, greater flexibility and freedom of choice for the applicant, and simple guides on administrative and financial management, especially for the Contractual Agreement between participants.

| 1.8 | The EESC suggests an ongoing evaluation of the effectiveness of the procedures used, including those for checking formal compliance and assessment, and, in well-defined development projects, the inclusion of checkpoints at which activities and anticipated results are monitored at precise and predetermined stages. Provision of funding and the continuation of the project itself should be conditional on such monitoring. |
| --- | --- |

1.8

The EESC suggests an ongoing evaluation of the effectiveness of the procedures used, including those for checking formal compliance and assessment, and, in well-defined development projects, the inclusion of checkpoints at which activities and anticipated results are monitored at precise and predetermined stages. Provision of funding and the continuation of the project itself should be conditional on such monitoring.

| 1.9 | The EESC also suggests investing particular efforts into putting in place a series of indicators which would allow real measurement of performances in terms of competitiveness and development. Such research performance indicators should measure the efficacy of funded activities in terms of further scientific progress, the EU's global development and targeting the priorities in future activities. |
| --- | --- |

1.9

The EESC also suggests investing particular efforts into putting in place a series of indicators which would allow real measurement of performances in terms of competitiveness and development. Such research performance indicators should measure the efficacy of funded activities in terms of further scientific progress, the EU's global development and targeting the priorities in future activities.

2.   The challenges facing European research

| 2.1 | The third five-year assessment (1999-2003) of the framework research programmes is an analytical exercise of great scope and depth (2). In the main, the EESC agrees with the analyses and recommendations put forward by the panel of experts and endorsed by the Commission. In the light of global competition and the Lisbon Strategy and Barcelona Council goals, the EESC stresses the necessity and urgency of giving careful consideration to the priorities and underlying aims of Community research, particularly with a view to increasing the involvement of the production sectors. |
| --- | --- |

2.1

The third five-year assessment (1999-2003) of the framework research programmes is an analytical exercise of great scope and depth (2). In the main, the EESC agrees with the analyses and recommendations put forward by the panel of experts and endorsed by the Commission. In the light of global competition and the Lisbon Strategy and Barcelona Council goals, the EESC stresses the necessity and urgency of giving careful consideration to the priorities and underlying aims of Community research, particularly with a view to increasing the involvement of the production sectors.

| 2.2 | The reality today is that scientific and technological innovation is increasingly proceeding through the cross-fertilisation of different disciplines involving extensive multidisciplinary interaction between universities, companies and the outside world, rather than exclusively according to a linear model in which innovation is the work of basic research (mostly at the academic level), while development and application compete with industrial research — a model which has governed scientific research until recent years (3). The key characteristics of research today are cooperation, interactive learning, uncertainty and risk. |
| --- | --- |

2.2

The reality today is that scientific and technological innovation is increasingly proceeding through the cross-fertilisation of different disciplines involving extensive multidisciplinary interaction between universities, companies and the outside world, rather than exclusively according to a linear model in which innovation is the work of basic research (mostly at the academic level), while development and application compete with industrial research — a model which has governed scientific research until recent years (3). The key characteristics of research today are cooperation, interactive learning, uncertainty and risk.

| 2.3 | The interactive model explains the success of regional clusters: these form a ‘system’ which acts beneficially on the behaviour of companies and universities, as well as creating the right social and cultural context, an effective organisational and institutional framework, an infrastructure network, and regulatory systems equipped to take on the challenges of competition. |
| --- | --- |

2.3

The interactive model explains the success of regional clusters: these form a ‘system’ which acts beneficially on the behaviour of companies and universities, as well as creating the right social and cultural context, an effective organisational and institutional framework, an infrastructure network, and regulatory systems equipped to take on the challenges of competition.

2.4   Global competition

| 2.4.1 | Europe is facing an unprecedented challenge in terms of global competition and potential for growth and is tackling this less efficiently not only than its traditional competitors, but also than the major emerging countries. Growth rates of R&D spending in India and China in particular are extremely high, reaching almost 20 % p.a. in the latter country, which is expected to match the EU's R&D spending as a percentage of GDP in 2010. Many European companies invest in China not only because of lower costs, but also because of the favourable combination of highly-skilled manpower and large and dynamic markets for technologies and high-tech products (4). Since research and innovation are key factors in responding to such challenges (5), Europe must mobilise sufficient funds and all its intellectual resources to promote science, technology and innovation (6). |
| --- | --- |

2.4.1

Europe is facing an unprecedented challenge in terms of global competition and potential for growth and is tackling this less efficiently not only than its traditional competitors, but also than the major emerging countries. Growth rates of R&D spending in India and China in particular are extremely high, reaching almost 20 % p.a. in the latter country, which is expected to match the EU's R&D spending as a percentage of GDP in 2010. Many European companies invest in China not only because of lower costs, but also because of the favourable combination of highly-skilled manpower and large and dynamic markets for technologies and high-tech products (4). Since research and innovation are key factors in responding to such challenges (5), Europe must mobilise sufficient funds and all its intellectual resources to promote science, technology and innovation (6).

| 2.4.2 | The most recent figures, however, make disturbing reading, with spending on research stuck at around 1.9 % of GDP since 2001. If annual growth were to remain at the 2000-2003 rate (0.7 %) until 2010, the figure would be no higher than 2.2 % of GDP. It must be remembered that the USA's larger GDP means that its R&D activity is far greater in absolute terms, which means it can more easily achieve the necessary critical mass. The main reason for the gap in Europe's R&D spending and that of its main competitors is the lower private sector input (55.6 % of total spending in the EU in 2002 against 63.1 % in the USA and 73.9 % in Japan). More alarmingly still, private funding of research fell in the same period and better overall conditions seem to be attracting European private investments to other parts of the globe: in the 1997-2002 period, European businesses increased research investment in the USA by 54 %, in real terms, compared with 38 % in the opposite direction (7). |
| --- | --- |

2.4.2

The most recent figures, however, make disturbing reading, with spending on research stuck at around 1.9 % of GDP since 2001. If annual growth were to remain at the 2000-2003 rate (0.7 %) until 2010, the figure would be no higher than 2.2 % of GDP. It must be remembered that the USA's larger GDP means that its R&D activity is far greater in absolute terms, which means it can more easily achieve the necessary critical mass. The main reason for the gap in Europe's R&D spending and that of its main competitors is the lower private sector input (55.6 % of total spending in the EU in 2002 against 63.1 % in the USA and 73.9 % in Japan). More alarmingly still, private funding of research fell in the same period and better overall conditions seem to be attracting European private investments to other parts of the globe: in the 1997-2002 period, European businesses increased research investment in the USA by 54 %, in real terms, compared with 38 % in the opposite direction (7).

2.5   The key goals

| 2.5.1 | The EESC concurs with the analysis identifying four key goals:






  — | attract and reward the best talent; |
| --- | --- | --- |

2.5.1

The EESC concurs with the analysis identifying four key goals:

—

attract and reward the best talent;

| — | create a high-potential environment for business and industrial RTD; |
| --- | --- |

—

create a high-potential environment for business and industrial RTD;

| — | mobilise resources for innovation and sustainable growth; |
| --- | --- |

—

mobilise resources for innovation and sustainable growth;

| — | build trust in science and technology. |
| --- | --- |

—

build trust in science and technology.

| 2.5.2 | Comparing and coordinating Community and national research policies is vital to meet the key challenge laid down by the Barcelona Council — allocating 3 % of GDP to research before 2010 and, in the process, increasing to two-thirds the amount of research financed by the private sector. This goal can only be achieved if a) Europe makes itself more attractive to investors in research, b) the right framework conditions are put in place to increase the efficacy of research, c) the stimulus effect of public investment in private research is boosted, and d) research policies are made more efficient and coherent at both Community and national level (8). |
| --- | --- |

2.5.2

Comparing and coordinating Community and national research policies is vital to meet the key challenge laid down by the Barcelona Council — allocating 3 % of GDP to research before 2010 and, in the process, increasing to two-thirds the amount of research financed by the private sector. This goal can only be achieved if a) Europe makes itself more attractive to investors in research, b) the right framework conditions are put in place to increase the efficacy of research, c) the stimulus effect of public investment in private research is boosted, and d) research policies are made more efficient and coherent at both Community and national level (8).

| 2.5.3 | In the light of the analyses carried out in the assessment process and the views expressed by many stakeholders, the EESC believes a more incisive intervention is needed, with actions coordinated between the Commission and the Member States, to improve the insufficiently research-friendly environment. A package of direct measures needs to be conceived to make the system more innovative and competitive at EU level: fragmentation and inadequate coordination of forces is an obstacle to achieving critical mass and the necessary focus. The very different job also needs to be tackled of comparing and coordinating not only national research policies, but also policies of education and human resources development, intellectual property protection, innovation development through fiscal leverage, constructive and synergetic collaboration between universities and companies, and so on. |
| --- | --- |

2.5.3

In the light of the analyses carried out in the assessment process and the views expressed by many stakeholders, the EESC believes a more incisive intervention is needed, with actions coordinated between the Commission and the Member States, to improve the insufficiently research-friendly environment. A package of direct measures needs to be conceived to make the system more innovative and competitive at EU level: fragmentation and inadequate coordination of forces is an obstacle to achieving critical mass and the necessary focus. The very different job also needs to be tackled of comparing and coordinating not only national research policies, but also policies of education and human resources development, intellectual property protection, innovation development through fiscal leverage, constructive and synergetic collaboration between universities and companies, and so on.

2.6   Recommendations concerning future European research policy

| 2.6.1 | The EESC has repeatedly expressed its support for substantially increasing the European R&D budget in the future and in so doing has strongly backed the Commission's proposal for increased funding of the 7th Framework Programme and, eventually, for a subsequent long-term increase (9). It does not welcome the prospect raised by the Council that this amount would be substantially reduced to around 5 % of the EU's general budget instead of the 8 % envisaged by the Commission and believes that this contradicts the priority of development imposed by competitive global challenges and called for by the Lisbon strategy. |
| --- | --- |

2.6.1

The EESC has repeatedly expressed its support for substantially increasing the European R&D budget in the future and in so doing has strongly backed the Commission's proposal for increased funding of the 7th Framework Programme and, eventually, for a subsequent long-term increase (9). It does not welcome the prospect raised by the Council that this amount would be substantially reduced to around 5 % of the EU's general budget instead of the 8 % envisaged by the Commission and believes that this contradicts the priority of development imposed by competitive global challenges and called for by the Lisbon strategy.

| 2.6.2 | The EESC has always supported the creation of a European Research Area (10) and has endorsed the establishment of a body such as the European Research Council (ERC), which could, in particular, become a key instrument in promoting scientific excellence through frontier science areas identified via a bottom-up process. The EESC is pleased that its recommendations concerning, in particular, the autonomy of the ERC and the composition of its scientific council have been followed, and reiterates the importance of involving first-rate scientists, including ones from the world of industrial research (11). |
| --- | --- |

2.6.2

The EESC has always supported the creation of a European Research Area (10) and has endorsed the establishment of a body such as the European Research Council (ERC), which could, in particular, become a key instrument in promoting scientific excellence through frontier science areas identified via a bottom-up process. The EESC is pleased that its recommendations concerning, in particular, the autonomy of the ERC and the composition of its scientific council have been followed, and reiterates the importance of involving first-rate scientists, including ones from the world of industrial research (11).

| 2.6.3 | The EESC agrees that a broad range of coordinated actions is needed for optimal integration of the new Member States, but does not believe adequate instruments have been put in place in this regard. The process of transition these countries have undergone in the assessment period under discussion makes it more difficult to pinpoint the best actions to take in order to build an economy firmly grounded on development of knowledge and research. The approach geared to ‘strengthening research’ is particularly relevant in these countries, but will have to be focused on the ‘production of innovation’ in order to activate the development levers which they require. |
| --- | --- |

2.6.3

The EESC agrees that a broad range of coordinated actions is needed for optimal integration of the new Member States, but does not believe adequate instruments have been put in place in this regard. The process of transition these countries have undergone in the assessment period under discussion makes it more difficult to pinpoint the best actions to take in order to build an economy firmly grounded on development of knowledge and research. The approach geared to ‘strengthening research’ is particularly relevant in these countries, but will have to be focused on the ‘production of innovation’ in order to activate the development levers which they require.

3.   Remarks on the recommendations concerning the Framework Programme

3.1   Private sector involvement

| 3.1.1 | The EESC agrees with the panel's recommendations and stresses in particular the importance of greater participation and involvement by industry as a sine qua non for achieving the Barcelona Council goal. It will be easier to reach this goal if the world of business plays a more active role in strategic choices and in identifying fields of research in which European research excellence could emerge more fully. |
| --- | --- |

3.1.1

The EESC agrees with the panel's recommendations and stresses in particular the importance of greater participation and involvement by industry as a sine qua non for achieving the Barcelona Council goal. It will be easier to reach this goal if the world of business plays a more active role in strategic choices and in identifying fields of research in which European research excellence could emerge more fully.

| 3.1.2 | To ensure such participation, the EESC thinks a more focused effort of communication is needed, involving companies and producers' organisations and associations, not least to facilitate involvement of SMEs and so raise participation from the far from satisfactory current level of 13 %. Their very nature requires that the 7th FP and the competition and innovation FP must not be seen as alternatives, but as complementary and synergetic. |
| --- | --- |

3.1.2

To ensure such participation, the EESC thinks a more focused effort of communication is needed, involving companies and producers' organisations and associations, not least to facilitate involvement of SMEs and so raise participation from the far from satisfactory current level of 13 %. Their very nature requires that the 7th FP and the competition and innovation FP must not be seen as alternatives, but as complementary and synergetic.

| 3.1.3 | The EESC believes the traditional financial instruments (12) and the new ones already provided for the 6th FP should not be substantially modified, in order to avoid inadvertently erecting new barriers to access (as the experts found at the outset of the 6th FP), but should be adapted in line with experience accrued to make them more user-friendly. |
| --- | --- |

3.1.3

The EESC believes the traditional financial instruments (12) and the new ones already provided for the 6th FP should not be substantially modified, in order to avoid inadvertently erecting new barriers to access (as the experts found at the outset of the 6th FP), but should be adapted in line with experience accrued to make them more user-friendly.

| 3.1.4 | The Integrated Projects (IPs) and the Specific Targeted Research Projects (STREPs) are the instruments preferred by SMEs and should therefore be improved to further facilitate their participation. There is no doubt that the Technology Platforms and — even more — the Joint Technology Initiatives will help achieve this goal. The Networks of Excellence, which universities and public research centres value and participate in on a large scale, should be developed to further encourage involvement of industry and as instruments for boosting researcher mobility, with increased and more promising exchanges between private and public sectors. |
| --- | --- |

3.1.4

The Integrated Projects (IPs) and the Specific Targeted Research Projects (STREPs) are the instruments preferred by SMEs and should therefore be improved to further facilitate their participation. There is no doubt that the Technology Platforms and — even more — the Joint Technology Initiatives will help achieve this goal. The Networks of Excellence, which universities and public research centres value and participate in on a large scale, should be developed to further encourage involvement of industry and as instruments for boosting researcher mobility, with increased and more promising exchanges between private and public sectors.

3.2   Simplifying management and procedures

| 3.2.1 | Simplification of management and procedures is a recurring theme with every new Framework Programme: many improvements have been made down the years, from a number of documents on simplification to the sounding board of representatives of small research groups set up by Commissioner Potočnik. However, the proposals put forward appear not to have solved the difficulties and problems encountered by participants. |
| --- | --- |

3.2.1

Simplification of management and procedures is a recurring theme with every new Framework Programme: many improvements have been made down the years, from a number of documents on simplification to the sounding board of representatives of small research groups set up by Commissioner Potočnik. However, the proposals put forward appear not to have solved the difficulties and problems encountered by participants.

| 3.2.2 | Drawing on experience gathered by the experts and directly by the stakeholders, the EESC suggests that the difficulties met by participants in the projects under the current Framework Programme be systematically collected and analysed so that mechanisms more tailored to the present reality can be proposed. These could be helpful to ongoing evaluation on the effectiveness of the procedures used and the procedures of formal control and assessment. |
| --- | --- |

3.2.2

Drawing on experience gathered by the experts and directly by the stakeholders, the EESC suggests that the difficulties met by participants in the projects under the current Framework Programme be systematically collected and analysed so that mechanisms more tailored to the present reality can be proposed. These could be helpful to ongoing evaluation on the effectiveness of the procedures used and the procedures of formal control and assessment.

| 3.2.3 | It would also be helpful, in well-defined development projects, to include checkpoints at which activities and anticipated results are monitored regularly. Provision of funding and the continuation of the project itself should be conditional on such monitoring at precise and predetermined stages. |
| --- | --- |

3.2.3

It would also be helpful, in well-defined development projects, to include checkpoints at which activities and anticipated results are monitored regularly. Provision of funding and the continuation of the project itself should be conditional on such monitoring at precise and predetermined stages.

| 3.2.4 | As far as the modalities of participation and administrative and financial management are concerned, it could be useful to have more detailed and unambiguous guidelines for the Contractual Agreements between participants, greater flexibility and freedom of choice for the applicant, and calls for proposals which set out more clearly the kinds of schemes and activity and the categories of participants. |
| --- | --- |

3.2.4

As far as the modalities of participation and administrative and financial management are concerned, it could be useful to have more detailed and unambiguous guidelines for the Contractual Agreements between participants, greater flexibility and freedom of choice for the applicant, and calls for proposals which set out more clearly the kinds of schemes and activity and the categories of participants.

| 3.2.5 | It has been noted that a relatively small core of organisations has participated a number of times and in a number of programmes, often acting as prime contractor (the case in around an estimated fifth of the projects) (13). Concentration of this kind is somewhat disturbing: on the one hand, it says something about the difficulty of participating, especially for those entering a research competition for the first time; on the other, it restricts the implementation of new projects aimed at radical innovation and greater risk (as called for in the second recommendation). |
| --- | --- |

3.2.5

It has been noted that a relatively small core of organisations has participated a number of times and in a number of programmes, often acting as prime contractor (the case in around an estimated fifth of the projects) (13). Concentration of this kind is somewhat disturbing: on the one hand, it says something about the difficulty of participating, especially for those entering a research competition for the first time; on the other, it restricts the implementation of new projects aimed at radical innovation and greater risk (as called for in the second recommendation).

3.3   Incentives for research

| 3.3.1 | Ways of encouraging private RDT funding still need to be better defined, while the market forces capable of triggering a virtuous cycle of synergy are not clearly identified and so are not available, as they should be, in the short term. Fiscal incentives, strengthening of intellectual property rights and facilitating interventions of risk capital are goals rather than instruments of action. |
| --- | --- |

3.3.1

Ways of encouraging private RDT funding still need to be better defined, while the market forces capable of triggering a virtuous cycle of synergy are not clearly identified and so are not available, as they should be, in the short term. Fiscal incentives, strengthening of intellectual property rights and facilitating interventions of risk capital are goals rather than instruments of action.

| 3.3.2 | The EESC would particularly like to see instruments developed to foster the spirit of entrepreneurship among European researchers, and other instruments put into place (from risk capital and venture capital to targeted EIB funding and credit facilities for research) to smooth the path from research results to specific business initiatives. |
| --- | --- |

3.3.2

The EESC would particularly like to see instruments developed to foster the spirit of entrepreneurship among European researchers, and other instruments put into place (from risk capital and venture capital to targeted EIB funding and credit facilities for research) to smooth the path from research results to specific business initiatives.

| 3.3.3 | The recommendation of ensuring greater participation of high-tech SMEs, which (as made clear in many previous opinions) the EESC fully endorses, must be supported by specific instruments in addition to the Joint Technology Initiatives, the Technology Platforms and the opportunities provided by the ‘Ideas’ project. The EESC hopes that this will be a key objective and will accordingly receive special attention in the practice of the Open Method of Coordination. |
| --- | --- |

3.3.3

The recommendation of ensuring greater participation of high-tech SMEs, which (as made clear in many previous opinions) the EESC fully endorses, must be supported by specific instruments in addition to the Joint Technology Initiatives, the Technology Platforms and the opportunities provided by the ‘Ideas’ project. The EESC hopes that this will be a key objective and will accordingly receive special attention in the practice of the Open Method of Coordination.

| 3.3.4 | In the EESC's view, if encouragement is to be given to more innovative research geared to improving competitiveness, unresolved intellectual property issues must be addressed, particularly the Community patent, the patentability of computer implemented inventions and inventions in new areas of knowledge, and the full implementation of the Directive on the Legal Protection of Biotechnological Inventions. |
| --- | --- |

3.3.4

In the EESC's view, if encouragement is to be given to more innovative research geared to improving competitiveness, unresolved intellectual property issues must be addressed, particularly the Community patent, the patentability of computer implemented inventions and inventions in new areas of knowledge, and the full implementation of the Directive on the Legal Protection of Biotechnological Inventions.

3.4   Human resources

| 3.4.1 | In the EESC's view, making careers in science and technology attractive by improving the social, as well as economic, standing of the researcher is a priority. There can be no doubt that the growing trend for people to undertake postgraduate studies and conduct research in other countries (in academia and elsewhere) is a form of mobility which helps researchers to develop, since the interchange of knowledge and working methods is a unique process of enrichment. It becomes problematic, however, when such mobility is in one direction only and the country of origin is unable to offer the conditions of work, career, social prestige and adequate economic reward to attract people back (14). All European countries must be attractive for young people embarking upon a research career. In particular, there should be easier access to the EU, including organised exchanges, for new human resources coming from emerging countries, including China and India. |
| --- | --- |

3.4.1

In the EESC's view, making careers in science and technology attractive by improving the social, as well as economic, standing of the researcher is a priority. There can be no doubt that the growing trend for people to undertake postgraduate studies and conduct research in other countries (in academia and elsewhere) is a form of mobility which helps researchers to develop, since the interchange of knowledge and working methods is a unique process of enrichment. It becomes problematic, however, when such mobility is in one direction only and the country of origin is unable to offer the conditions of work, career, social prestige and adequate economic reward to attract people back (14). All European countries must be attractive for young people embarking upon a research career. In particular, there should be easier access to the EU, including organised exchanges, for new human resources coming from emerging countries, including China and India.

| 3.4.2 | Programmes involving human resources and mobility do not appear sufficient to deliver that qualitative leap capable of ‘attracting and rewarding the best talent’, as the first of the key objectives puts it. There is no clear prospect of the ‘European researcher’ status which should be the nub of such action. |
| --- | --- |

3.4.2

Programmes involving human resources and mobility do not appear sufficient to deliver that qualitative leap capable of ‘attracting and rewarding the best talent’, as the first of the key objectives puts it. There is no clear prospect of the ‘European researcher’ status which should be the nub of such action.

| 3.4.3 | Critical situations such as these call for innovative policies: investment is needed a) to develop university teaching in science and engineering (a prerequisite for which are more science courses in upper secondary education and promoting science as a degree option at university), b) to reduce the number of those who graduated, but are not employed, in such fields (an unwelcome situation prevalent in the new Member States and in Italy, Portugal and Austria), c) to encourage more women researchers (now little over a third, despite accounting for more than 63 % of graduates in science and engineering disciplines) (15), and d) to make careers in science more attractive. |
| --- | --- |

3.4.3

Critical situations such as these call for innovative policies: investment is needed a) to develop university teaching in science and engineering (a prerequisite for which are more science courses in upper secondary education and promoting science as a degree option at university), b) to reduce the number of those who graduated, but are not employed, in such fields (an unwelcome situation prevalent in the new Member States and in Italy, Portugal and Austria), c) to encourage more women researchers (now little over a third, despite accounting for more than 63 % of graduates in science and engineering disciplines) (15), and d) to make careers in science more attractive.

| 3.4.4 | The EESC considers that such policies, primarily the responsibility of Member States, should receive particular attention in the Open Coordination Method, which could also be usefully applied to higher and tertiary education systems and research systems in order to identify best practices, appropriate forms of peer review, concerted action between Member States and regions, and priority transnational research topics. |
| --- | --- |

3.4.4

The EESC considers that such policies, primarily the responsibility of Member States, should receive particular attention in the Open Coordination Method, which could also be usefully applied to higher and tertiary education systems and research systems in order to identify best practices, appropriate forms of peer review, concerted action between Member States and regions, and priority transnational research topics.

| 3.4.5 | Researchers constitute a far lower percentage of the labour force than is the case in competitor countries (0.54 % in the EU — and no higher than 0.5 % in all the new Member States and the countries of southern Europe — compared with 0.9 % in the USA and 1.01 % in Japan). The age of those in the science and technology sectors is also becoming a cause for concern (35 % — above 40 % in some MS — in the 45-64 age group, compared with 31 % in the 25-34 age group) (16). There is a thought-provoking estimate that 150 000 European researchers are currently working in the USA and a further 500 000 to 700 000 (17) researchers will be needed over the next ten years to achieve the Barcelona goal. |
| --- | --- |

3.4.5

Researchers constitute a far lower percentage of the labour force than is the case in competitor countries (0.54 % in the EU — and no higher than 0.5 % in all the new Member States and the countries of southern Europe — compared with 0.9 % in the USA and 1.01 % in Japan). The age of those in the science and technology sectors is also becoming a cause for concern (35 % — above 40 % in some MS — in the 45-64 age group, compared with 31 % in the 25-34 age group) (16). There is a thought-provoking estimate that 150 000 European researchers are currently working in the USA and a further 500 000 to 700 000 (17) researchers will be needed over the next ten years to achieve the Barcelona goal.

| 3.4.6 | The EESC agrees with the panel's position on the need to offer researchers greater autonomy and responsibility (albeit while respecting ethical principles), to give careers in science a higher profile, to guarantee greater interdisciplinary as well as spatial mobility and to integrate the Marie Curie system of grants with national and regional programmes and use them specifically to boost mobility between public and private research. |
| --- | --- |

3.4.6

The EESC agrees with the panel's position on the need to offer researchers greater autonomy and responsibility (albeit while respecting ethical principles), to give careers in science a higher profile, to guarantee greater interdisciplinary as well as spatial mobility and to integrate the Marie Curie system of grants with national and regional programmes and use them specifically to boost mobility between public and private research.

| 3.4.7 | The EESC also supports the Commission's effort to create a European Charter for Researchers (18) as a first step in the right direction, but considers the Member States need to be more coordinated and committed to achieve more effective and better harmonised systems of training, career, remuneration (including social insurance, pensions and fiscal regimes) and social insurance incentives (19). |
| --- | --- |

3.4.7

The EESC also supports the Commission's effort to create a European Charter for Researchers (18) as a first step in the right direction, but considers the Member States need to be more coordinated and committed to achieve more effective and better harmonised systems of training, career, remuneration (including social insurance, pensions and fiscal regimes) and social insurance incentives (19).

| 3.4.8 | Addressing the trustworthiness and legitimacy of science and technology in Europe is an issue to which the EESC attaches great importance and is a sine qua non for giving legitimacy to the researcher and recognition to his work: if for no other reason, an active and coordinated policy between the Commission and Member States needs to be urgently defined and allocated the appropriate means and resources. |
| --- | --- |

3.4.8

Addressing the trustworthiness and legitimacy of science and technology in Europe is an issue to which the EESC attaches great importance and is a sine qua non for giving legitimacy to the researcher and recognition to his work: if for no other reason, an active and coordinated policy between the Commission and Member States needs to be urgently defined and allocated the appropriate means and resources.

3.5   The assessment procedure

| 3.5.1 | The EESC notes the considerable efforts made by the Commission to improve the assessment procedure, as instanced by a series of documents focused on the work of assessors. However, the real problem lies in the logic of ex-post assessment: if it is limited to verifying formal compatibility with the goals, it risks losing sight of the real strategic objective, namely assessing the structural impact of the Framework Programmes on the EU's economy and research as a whole, the priorities to pursue and consequent allocation of funds. |
| --- | --- |

3.5.1

The EESC notes the considerable efforts made by the Commission to improve the assessment procedure, as instanced by a series of documents focused on the work of assessors. However, the real problem lies in the logic of ex-post assessment: if it is limited to verifying formal compatibility with the goals, it risks losing sight of the real strategic objective, namely assessing the structural impact of the Framework Programmes on the EU's economy and research as a whole, the priorities to pursue and consequent allocation of funds.

| 3.5.2 | The EESC suggests investing particular efforts into setting up a series of indicators which would really measure performances in terms of competitiveness and development. Such research performance indicators should make it possible to measure the efficacy of funded activities for the EU's development as a whole and to steer future activities towards the priorities established. The EESC is aware, however, that no automatic evaluation can take the place of delicate judgements made on a case-by-case basis by appropriate experts. |
| --- | --- |

3.5.2

The EESC suggests investing particular efforts into setting up a series of indicators which would really measure performances in terms of competitiveness and development. Such research performance indicators should make it possible to measure the efficacy of funded activities for the EU's development as a whole and to steer future activities towards the priorities established. The EESC is aware, however, that no automatic evaluation can take the place of delicate judgements made on a case-by-case basis by appropriate experts.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  Five-Year Assessment of the EU Research Framework Programmes 1999-2003, European Commission, DG Research, 15.12.2004.

1

(2)  The assessment process involved numerous documents and reports, available to the public on the site: http://forum.europa.eu.int/Public/irc/rtd/fiveyearasskb/library.

2

(3)  See: Keith Smith, The Framework Programmes and the changing economic landscape, European Commission, JRC/IPTS, Seville, December 2004, pp. 11-12.

3

(4)  Potočnik, preface to Key Figures 2005 — Towards a European Research Area Science, Technology and Innovation, DG Research, 2005, p. 5.

4

Key Figures 2005 — Towards a European Research Area Science, Technology and Innovation

(5)  The EESC has addressed this subject at length in a number of opinions, most recently INT/269 CESE 1484/2005 Opinion on the seventh framework programme for research and training, rapporteur Mr Wolf, points, 2.2, 2.3, and 2.4. (OJ C 65, 17.3.2006).

5

(6)  See the introduction by the chairman, Erkki Ormala, and the Five-Year Assessment of the EU Research Framework Programmes 1999-2003, cit.

6

(7)  All the figures in this point are taken from: Key Figures 2005, cit. pp. 9-10.

7

(8)  See the preamble and Key Figures 2005, cit., p. 3.

8

(9)  INT/269-CESE 1484/2005, point 1.4 and points 4.1 to 4.6. pp. 9-10. (OJ C 65, 17.3.2006).

9

(10)  See especially INT/246 – CESE 1647/2004 in OJ C 156 of 28.6.2005: Opinion on the Communication from the Commission Science and technology, the key to Europe's future, rapporteur Mr Wolf, and the complementary opinion on the same subject, rapporteur Mr Van Iersel, co-rapporteur Mr Gibillieri, CCMI/015 – CESE 1353/2004.

10

(11)  INT/269-CESE 1484/2005, point 4.11. (OJ C 65, 17.3.2006).

11

(12)  See the EESC opinion currently being prepared on dossier INT/309.

12

(13)  Five-Year Assessment, cit. p. 7.

13

(14)  The EESC has expressed its views on this issue in many opinions, most recently INT/269 – CESE 1484/2005, point 4.12 et seq. (OJ C 65, 17.3.2006).

14

(15)  Key figures 2005, cit pp. 55-57.

15

(16)  Key figures 2005, cit pp. 47-51.

16

(17)  Five-Year Assessment, cit p. 12.

17

(18)  Commission Recommendation of 11 March 2005 on the European Charter for Researchers and on a Code of Conduct for the Recruitment of Researchers, OJ L 75, 22.3.2005, p. 67.

18

(19)  See CESE 205/2004, Opinion on the Communication from the Commission - Researchers in the European Research Area, rapporteur Mr Wolf, in OJ C 110, of 30.4.2004.

19

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/7 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/7

---

Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council on the placing on the market of pyrotechnic articles

(COM(2005) 457 final — 2005/0194 (COD))

(2006/C 195/02)

On 25 November 2005, the Council decided to consult the European Economic and Social Committee, under Article 95 of the Treaty establishing the European Community, on the abovementioned proposal.

The Section for the Single Market, Production and Consumption, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 25 April 2006. The rapporteur was Mr Cassidy.

At its 427th plenary session, held on 17 and 18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 117 votes to 1 with 2 abstentions.

1.   Executive summary of EESC conclusions and recommendations

| 1.1 | The draft directive is intended:






  — | to ensure the free movement of pyrotechnic products within the EU, |
| --- | --- | --- |

1.1

The draft directive is intended:

—

to ensure the free movement of pyrotechnic products within the EU,

| — | to improve safety of consumers and professionals, |
| --- | --- |

—

to improve safety of consumers and professionals,

| — | to harmonise safety requirements in all Member States. |
| --- | --- |

—

to harmonise safety requirements in all Member States.

| 1.2 | The EESC in general supports the Commission draft directive but makes the following recommendations. |
| --- | --- |

1.2

The EESC in general supports the Commission draft directive but makes the following recommendations.

| 1.2.1 | The Commission should consider a longer period for transposition than that allowed for in the current Article 20. The period allowed for fireworks is only 24 months after publication of the directive, whereas for other pyrotechnic devices it is five years. Given the long lead time for importers of fireworks from China and other sources, estimated by distributors in the EU to be at least three years, the EESC recommends that the same length of time should be allowed for fireworks as for other pyrotechnic devices, i.e. five years. |
| --- | --- |

1.2.1

The Commission should consider a longer period for transposition than that allowed for in the current Article 20. The period allowed for fireworks is only 24 months after publication of the directive, whereas for other pyrotechnic devices it is five years. Given the long lead time for importers of fireworks from China and other sources, estimated by distributors in the EU to be at least three years, the EESC recommends that the same length of time should be allowed for fireworks as for other pyrotechnic devices, i.e. five years.

| 1.2.2 | The Committee points out that the arrangements for testing fireworks and for meeting the CEN specification impose responsibilities on importers and distributors. It recommends therefore that it should be made clear in the directive that importers must specify the standards to be obtained for the CE marking when placing their orders with manufacturers throughout the world. The responsibility for testing and for CE marking should rest with the manufacturer, with the importer having a secondary responsibility for ensuring that products bearing the CE mark are genuinely able to meet the CEN standards to avoid counterfeit products being put on the market. |
| --- | --- |

1.2.2

The Committee points out that the arrangements for testing fireworks and for meeting the CEN specification impose responsibilities on importers and distributors. It recommends therefore that it should be made clear in the directive that importers must specify the standards to be obtained for the CE marking when placing their orders with manufacturers throughout the world. The responsibility for testing and for CE marking should rest with the manufacturer, with the importer having a secondary responsibility for ensuring that products bearing the CE mark are genuinely able to meet the CEN standards to avoid counterfeit products being put on the market.

| 1.2.3 | The Committee believes that customs and other authorities in the Member States should also be involved in monitoring that products bearing the CE mark are genuinely meeting the standard. |
| --- | --- |

1.2.3

The Committee believes that customs and other authorities in the Member States should also be involved in monitoring that products bearing the CE mark are genuinely meeting the standard.

| 1.2.4 | Accident data supplied by Member States to the European Commission are incomplete. The Commission is aware of this. The Committee urges all Member States to improve their monitoring of consumer accidents. |
| --- | --- |

1.2.4

Accident data supplied by Member States to the European Commission are incomplete. The Commission is aware of this. The Committee urges all Member States to improve their monitoring of consumer accidents.

| 1.2.5 | Article 14 sets up arrangements for rapid information on products presenting serious risks. The RAPEX system could also be used as an interim measure until the directive comes into force. |
| --- | --- |

1.2.5

Article 14 sets up arrangements for rapid information on products presenting serious risks. The RAPEX system could also be used as an interim measure until the directive comes into force.

| 1.2.6 | For pyrotechnic products used in the automotive industry, Article 12 (1) requires manufacturers to ensure that they ‘are properly labelled in the official language(s) of the country in which the article is sold to the consumer’. The Committee beliefs the reference to the consumer is misleading as most pyrotechnic articles are fitted to motor vehicles at the manufacturing stage. The information for Original Equipment can therefore continue to be used in the current language (English). However, manufacturers of this equipment are concerned about the obligation to print instructions in all the official languages of the 25 countries because they have no control over which country the device will be used in. The Committee believes that the manufacturers' Safety Data Sheets should be sufficient as the information they contain is mainly diagrammatic and statistical.






  — | The requirement of labelling ‘in the official language(s) of the country in which the article is sold to the consumer’ is contrary to the basic principles of the single market as language labelling would be an obstacle to trade. The Committee also believes that replacement airbags, etc. would only rarely be sold to the final consumer but rather installed by garage technicians. |
| --- | --- | --- |

1.2.6

For pyrotechnic products used in the automotive industry, Article 12 (1) requires manufacturers to ensure that they ‘are properly labelled in the official language(s) of the country in which the article is sold to the consumer’. The Committee beliefs the reference to the consumer is misleading as most pyrotechnic articles are fitted to motor vehicles at the manufacturing stage. The information for Original Equipment can therefore continue to be used in the current language (English). However, manufacturers of this equipment are concerned about the obligation to print instructions in all the official languages of the 25 countries because they have no control over which country the device will be used in. The Committee believes that the manufacturers' Safety Data Sheets should be sufficient as the information they contain is mainly diagrammatic and statistical.

—

The requirement of labelling ‘in the official language(s) of the country in which the article is sold to the consumer’ is contrary to the basic principles of the single market as language labelling would be an obstacle to trade. The Committee also believes that replacement airbags, etc. would only rarely be sold to the final consumer but rather installed by garage technicians.

| 1.2.7 | Article 8.4 of the draft directive obliges Member States to inform the Commission if they believe that products do not fully satisfy the essential safety requirements referred to in Article 4 (1) which will provide a legal base. In the meantime, however, the Committee recommends that the RAPEX system might be used to convey accident and hazard data to the Commission so that the information will flow to other Member States. |
| --- | --- |

1.2.7

Article 8.4 of the draft directive obliges Member States to inform the Commission if they believe that products do not fully satisfy the essential safety requirements referred to in Article 4 (1) which will provide a legal base. In the meantime, however, the Committee recommends that the RAPEX system might be used to convey accident and hazard data to the Commission so that the information will flow to other Member States.

| 1.2.8 | The Committee has learned that in some Member States there are a number of micro enterprises involved in the manufacture of fireworks for special local occasions. Member States must ensure that these enterprises also respect the safety requirements of the directive. |
| --- | --- |

1.2.8

The Committee has learned that in some Member States there are a number of micro enterprises involved in the manufacture of fireworks for special local occasions. Member States must ensure that these enterprises also respect the safety requirements of the directive.

| 1.2.9 | Automotive pyrotechnical devices should be covered by a UN/ECE regulation under the 1958 Agreement (WP 29 in Geneva) rather than in a standard. |
| --- | --- |

1.2.9

Automotive pyrotechnical devices should be covered by a UN/ECE regulation under the 1958 Agreement (WP 29 in Geneva) rather than in a standard.

| 1.2.10 | The Committee believes that for automotive pyrotechnical devices, the Commission should be prepared to accept some form of type approval. |
| --- | --- |

1.2.10

The Committee believes that for automotive pyrotechnical devices, the Commission should be prepared to accept some form of type approval.

2.   Summary of the Commission proposal

| 2.1 | ‘Fireworks’ are commonly used for entertainment or to mark a special event such as a religious festival. They form part of the cultural history of many EU Member States. The directive deals with these separately from ‘pyrotechnic articles’ which, for the purposes of the directive, cover explosive devices used to trigger airbags and seat restraints in motor vehicles. |
| --- | --- |

2.1

‘Fireworks’ are commonly used for entertainment or to mark a special event such as a religious festival. They form part of the cultural history of many EU Member States. The directive deals with these separately from ‘pyrotechnic articles’ which, for the purposes of the directive, cover explosive devices used to trigger airbags and seat restraints in motor vehicles.

2.2   Categories

Article 3 of the draft directive establishes four categories of fireworks:

| a) | Fireworks






  — | Category 1: presenting a very low hazard and intended for use in a domestic or confined environment, |
| --- | --- | --- |

a)

Fireworks

—

Category 1: presenting a very low hazard and intended for use in a domestic or confined environment,

| — | Category 2: presenting a low hazard and intended for use in outdoor confined areas, |
| --- | --- |

—

Category 2: presenting a low hazard and intended for use in outdoor confined areas,

| — | Category 3: presenting a medium hazard and intended for outdoor use in large open areas, |
| --- | --- |

—

Category 3: presenting a medium hazard and intended for outdoor use in large open areas,

| — | Category 4: presenting a high hazard and intended for professional use only. |
| --- | --- |

—

Category 4: presenting a high hazard and intended for professional use only.

| b) | Other pyrotechnic articles






  — | Category 1: pyrotechnic articles other than fireworks which present low hazard, |
| --- | --- | --- |

b)

Other pyrotechnic articles

—

Category 1: pyrotechnic articles other than fireworks which present low hazard,

| — | Category 2: pyrotechnic articles other than fireworks which are intended for handling or use by persons with specialist knowledge only. |
| --- | --- |

—

Category 2: pyrotechnic articles other than fireworks which are intended for handling or use by persons with specialist knowledge only.

2.3   Age limits

| 2.3.1 | Article 7 of the directive forbids the sale of:






  — | Category 1 fireworks to anyone under 12; |
| --- | --- | --- |

2.3.1

Article 7 of the directive forbids the sale of:

—

Category 1 fireworks to anyone under 12;

| — | Category 2 to anyone under 16; |
| --- | --- |

—

Category 2 to anyone under 16;

| — | Category 3 to anyone under 18. |
| --- | --- |

—

Category 3 to anyone under 18.

Other pyrotechnic articles may not be sold or made available to anyone under 18 unless they have the necessary vocational training.

| 2.4 | The rules for placing pyrotechnic articles on the market differ widely across the present 25 Member States as do the statistics on accidents and their compilation. Currently, Member States' data refer only to fireworks and not to other products such as those used in the automotive industry, in stage effects or in distress flares. |
| --- | --- |

2.4

The rules for placing pyrotechnic articles on the market differ widely across the present 25 Member States as do the statistics on accidents and their compilation. Currently, Member States' data refer only to fireworks and not to other products such as those used in the automotive industry, in stage effects or in distress flares.

| 2.5 | The market for automotive articles is the more important of the two branches with a value of EUR 5.5 billion annually (EUR 3.5 billion airbag systems and EUR 2 billion seat belt pre-tensioners). (The export value in 2004 was EUR 223 438 297 and the import value of EUR 16 090 411.) |
| --- | --- |

2.5

The market for automotive articles is the more important of the two branches with a value of EUR 5.5 billion annually (EUR 3.5 billion airbag systems and EUR 2 billion seat belt pre-tensioners). (The export value in 2004 was EUR 223 438 297 and the import value of EUR 16 090 411.)

| 2.6 | The vast majority of fireworks on the EU market are imported from China so that the main employment in the EU is in SMEs. The consumer market is estimated at around EUR 700 million per year and the ‘professional’ market about the same. The Commission's impact assessment reckons that employment is around 3 000 mainly involved with purchasing, storage, distribution and professional firework displays. Malta is an exception in having a large number of religious festivals involving displays of hand-made fireworks, which are not sold to consumers. |
| --- | --- |

2.6

The vast majority of fireworks on the EU market are imported from China so that the main employment in the EU is in SMEs. The consumer market is estimated at around EUR 700 million per year and the ‘professional’ market about the same. The Commission's impact assessment reckons that employment is around 3 000 mainly involved with purchasing, storage, distribution and professional firework displays. Malta is an exception in having a large number of religious festivals involving displays of hand-made fireworks, which are not sold to consumers.

| 2.7 | Accident levels vary according to the accuracy of the national statistics and vary from 1.36 per million population in Estonia to 60.1 per million in the United Kingdom. The Commission extrapolates these statistics to arrive at a total number of firework accidents of between 7 000 and 45 000 for an EU population of 455 million. |
| --- | --- |

2.7

Accident levels vary according to the accuracy of the national statistics and vary from 1.36 per million population in Estonia to 60.1 per million in the United Kingdom. The Commission extrapolates these statistics to arrive at a total number of firework accidents of between 7 000 and 45 000 for an EU population of 455 million.

| 2.8 | There appear to be no separate statistics for automotive pyrotechnic accidents compared with those for traffic accidents in general. |
| --- | --- |

2.8

There appear to be no separate statistics for automotive pyrotechnic accidents compared with those for traffic accidents in general.

2.9   CE marking

| 2.9.1 | There is no current requirement for fireworks to carry a CE mark though a CEN standard was published in May 2003. Articles 9 and 10 propose that they shall not be placed on the market unless they conform to the procedures laid down in these articles. |
| --- | --- |

2.9.1

There is no current requirement for fireworks to carry a CE mark though a CEN standard was published in May 2003. Articles 9 and 10 propose that they shall not be placed on the market unless they conform to the procedures laid down in these articles.

| 2.9.2 | Member States will be required to inform the Commission of who has been appointed in their territory to carry out the procedure. |
| --- | --- |

2.9.2

Member States will be required to inform the Commission of who has been appointed in their territory to carry out the procedure.

| 2.9.3 | No fireworks will be permitted unless the manufacture has satisfied the assessment procedure. |
| --- | --- |

2.9.3

No fireworks will be permitted unless the manufacture has satisfied the assessment procedure.

2.10   Automotive pyrotechnic articles

| 2.10.1 | There is no uniform approval process for placing on the market inflators, modules and other automotive safety devices. |
| --- | --- |

2.10.1

There is no uniform approval process for placing on the market inflators, modules and other automotive safety devices.

2.11   Impact assessment

| 2.11.1 | The Commission estimates that their harmonisation will lead to considerable cost saving for both fireworks and automotive pyrotechnic articles. Currently, there are believed to be as many as 50 000 different types of approved fireworks in use in the EU and approval for one firework can cost between EUR 500 and EUR 3 000per firework per country. It calculates that the cost of a new system with one procedure covering all 25 States will be cheaper. |
| --- | --- |

2.11.1

The Commission estimates that their harmonisation will lead to considerable cost saving for both fireworks and automotive pyrotechnic articles. Currently, there are believed to be as many as 50 000 different types of approved fireworks in use in the EU and approval for one firework can cost between EUR 500 and EUR 3 000per firework per country. It calculates that the cost of a new system with one procedure covering all 25 States will be cheaper.

| 2.11.2 | For automotive products, the cost of one airbag approval can be EUR 25 000 in one country (Germany) and the Commission hopes that competition among testing authorities will bring down the price. |
| --- | --- |

2.11.2

For automotive products, the cost of one airbag approval can be EUR 25 000 in one country (Germany) and the Commission hopes that competition among testing authorities will bring down the price.

3.   General comments

| 3.1 | The Committee while welcoming the objectives of the directive — free movement of pyrotechnic articles, a high degree of consumer protection and essential safety requirements — has some reservations in particular about fireworks. |
| --- | --- |

3.1

The Committee while welcoming the objectives of the directive — free movement of pyrotechnic articles, a high degree of consumer protection and essential safety requirements — has some reservations in particular about fireworks.

| 3.2 | Bearing in mind that the vast majority of them are made in China and that the manufacturers there may well not have the resources to comply with an EU standard, who will assume responsibility for testing — the importer, the manufacturer's agent or the retailer? |
| --- | --- |

3.2

Bearing in mind that the vast majority of them are made in China and that the manufacturers there may well not have the resources to comply with an EU standard, who will assume responsibility for testing — the importer, the manufacturer's agent or the retailer?

| 3.3 | What reassurance will there be that the CE mark attached to an imported firework is genuine and that the device to which it is attached is not counterfeit? |
| --- | --- |

3.3

What reassurance will there be that the CE mark attached to an imported firework is genuine and that the device to which it is attached is not counterfeit?

| 3.4 | What degree of cooperation is achievable between consumer-protection bodies in the EU and the authorities in the country of origin? |
| --- | --- |

3.4

What degree of cooperation is achievable between consumer-protection bodies in the EU and the authorities in the country of origin?

| 3.5 | The EESC is somewhat sceptical about the statistics in the Commission impact assessments, especially the wide range of accident figures — between 7 000 and 45 000. It shares the Commission opinion that ‘... any attempt to estimate a figure for the total number of accidents across the EU must be treated very cautiously’. |
| --- | --- |

3.5

The EESC is somewhat sceptical about the statistics in the Commission impact assessments, especially the wide range of accident figures — between 7 000 and 45 000. It shares the Commission opinion that ‘... any attempt to estimate a figure for the total number of accidents across the EU must be treated very cautiously’.

| 3.6 | The same reservations apply to the economic impact assessment and the rather optimistic reliance in the case of automotive pyrotechnic articles on ‘... increased competition of testing authorities’ to bring down the cost of appliance approval. |
| --- | --- |

3.6

The same reservations apply to the economic impact assessment and the rather optimistic reliance in the case of automotive pyrotechnic articles on ‘... increased competition of testing authorities’ to bring down the cost of appliance approval.

| 3.7 | The EESC notes that the Social impact assessment is positive in aiming to reduce the number of firework-related accidents and neutral for employment in both firework and automotive sectors. |
| --- | --- |

3.7

The EESC notes that the Social impact assessment is positive in aiming to reduce the number of firework-related accidents and neutral for employment in both firework and automotive sectors.

| 3.8 | The Environmental impact assessment draws attention to the influence of Council Directive 96/82/EC (Seveso II) of 9 December 1996 and its extension in Parliament and Council Directive 2003/105/EC of 16 December 2003 to establishments where pyrotechnics are present. |
| --- | --- |

3.8

The Environmental impact assessment draws attention to the influence of Council Directive 96/82/EC (Seveso II) of 9 December 1996 and its extension in Parliament and Council Directive 2003/105/EC of 16 December 2003 to establishments where pyrotechnics are present.

| 3.9 | In spite of its reservations, the EESC welcomes these impact assessments. |
| --- | --- |

3.9

In spite of its reservations, the EESC welcomes these impact assessments.

4.   Specific comments

| 4.1 | The automotive sector is far more important economically than that for fireworks. It is a major exporter and employs large numbers. The EESC welcomes any step which will assist EU manufacturers in holding their own in a sector in which competition from ‘off shore’ is becoming more intense. |
| --- | --- |

4.1

The automotive sector is far more important economically than that for fireworks. It is a major exporter and employs large numbers. The EESC welcomes any step which will assist EU manufacturers in holding their own in a sector in which competition from ‘off shore’ is becoming more intense.

| 4.2 | The Committee would hope that the introduction of uniform standards for putting on the market safe fireworks may lead to a revival of manufacture in the EU by offering economies of scale in a market worth EUR 1.4 billion (consumer sales EUR 700 million; professional sales also EUR 700 million) currently prevented by the existence of too many national standards often in conflict with each other. |
| --- | --- |

4.2

The Committee would hope that the introduction of uniform standards for putting on the market safe fireworks may lead to a revival of manufacture in the EU by offering economies of scale in a market worth EUR 1.4 billion (consumer sales EUR 700 million; professional sales also EUR 700 million) currently prevented by the existence of too many national standards often in conflict with each other.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/10 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/10

---

Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council relating to restrictions on the marketing and use of perfluorooctane sulfonates (amendment of Council Directive 76/769/EEC)

(COM(2005) 618 final — 2005/0244 (COD))

(2006/C 195/03)

On 17 January 2006 the Council decided to consult the European Economic and Social Committee, under Article 95 of the Treaty establishing the European Community, on the abovementioned proposal.

The Section for the Single Market, Production and Consumption, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 25 April 2006. The rapporteur was Mr Sears.

At its 427th plenary session, held on 17 and 18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 126 votes with 2 abstentions.

1.   Conclusions and recommendations

| 1.1 | The proposal follows an announcement by the leading manufacturer of perfluorooctane sulfonates (PFOS) that it would cease to manufacture and market consumer products based on these entities. This decision was based on the manufacturer's determination of possible risks to human health and the environment. Since then these risks have been quantified and the decision confirmed as being correct for the end-use in question. The major risk has been eliminated and action here is to ensure no recurrence of the problem. Meanwhile the needs of other users need to be protected until alternative materials or processes become available and/or until full impact assessments are undertaken. |
| --- | --- |

1.1

The proposal follows an announcement by the leading manufacturer of perfluorooctane sulfonates (PFOS) that it would cease to manufacture and market consumer products based on these entities. This decision was based on the manufacturer's determination of possible risks to human health and the environment. Since then these risks have been quantified and the decision confirmed as being correct for the end-use in question. The major risk has been eliminated and action here is to ensure no recurrence of the problem. Meanwhile the needs of other users need to be protected until alternative materials or processes become available and/or until full impact assessments are undertaken.

| 1.2 | The EESC supports the proposal, with particular reference to the restriction on marketing and use of PFOS-related substances, the derogations for the specified residual end-uses, and the need for continuing research. |
| --- | --- |

1.2

The EESC supports the proposal, with particular reference to the restriction on marketing and use of PFOS-related substances, the derogations for the specified residual end-uses, and the need for continuing research.

| 1.3 | The EESC notes that the end-uses to which derogations must be given differ significantly in the quantities used, in the likelihood and extent of human or environmental exposure, and in the time required to identify, develop and gain acceptance for, suitable and safer materials or processes. The EESC therefore believes that the derogations should be subject to review by the Commission on a case-by case basis on the advice of the Scientific Committee on Health and Environmental Risks (SCHER). Indications of the factors affecting these reviews are given in the specific comments. The timing of any risk or impact assessments should be consistent with the increasing demand for chemicals risk assessment under REACH. It is essential that the Commission maintains sufficient in-house resource to enable it to fulfil these obligations in a timely and informed manner. |
| --- | --- |

1.3

The EESC notes that the end-uses to which derogations must be given differ significantly in the quantities used, in the likelihood and extent of human or environmental exposure, and in the time required to identify, develop and gain acceptance for, suitable and safer materials or processes. The EESC therefore believes that the derogations should be subject to review by the Commission on a case-by case basis on the advice of the Scientific Committee on Health and Environmental Risks (SCHER). Indications of the factors affecting these reviews are given in the specific comments. The timing of any risk or impact assessments should be consistent with the increasing demand for chemicals risk assessment under REACH. It is essential that the Commission maintains sufficient in-house resource to enable it to fulfil these obligations in a timely and informed manner.

| 1.4 | The EESC notes that the actions described above, in reaction to an unexpected change in external circumstances, contrast with the normal process of risk management where measures are defined following risk assessments by the competent authorities in the Member States of previously identified priority substances. This approach is however likely to be, and indeed is specifically intended to be, a more frequent occurrence under REACH. A proportionate, acceptable and effective outcome for PFOS should provide a model for the future application of REACH. |
| --- | --- |

1.4

The EESC notes that the actions described above, in reaction to an unexpected change in external circumstances, contrast with the normal process of risk management where measures are defined following risk assessments by the competent authorities in the Member States of previously identified priority substances. This approach is however likely to be, and indeed is specifically intended to be, a more frequent occurrence under REACH. A proportionate, acceptable and effective outcome for PFOS should provide a model for the future application of REACH.

2.   Summary of the Commission's proposal

| 2.1 | The Commission bases its proposal on an OECD hazard assessment completed in November 2002 and on a UK risk evaluation report finalised in July 2005. These and other studies, primarily in the US, were prepared following the announcement on 16 May 2000 by 3M of a voluntary withdrawal of PFOS-related substances from their principal application in providing grease, oil and water resistance to textiles, carpets, paper and general coatings. |
| --- | --- |

2.1

The Commission bases its proposal on an OECD hazard assessment completed in November 2002 and on a UK risk evaluation report finalised in July 2005. These and other studies, primarily in the US, were prepared following the announcement on 16 May 2000 by 3M of a voluntary withdrawal of PFOS-related substances from their principal application in providing grease, oil and water resistance to textiles, carpets, paper and general coatings.

| 2.2 | The Commission accepts the SCHER Opinion of 18 March 2005 that, despite limitations in the available methodology for testing these entities, the data so far available indicate PFOS to be very persistent, very bio-accumulative and potentially toxic and that risk reduction measures are justified to prevent any recurrence of wide-scale use. |
| --- | --- |

2.2

The Commission accepts the SCHER Opinion of 18 March 2005 that, despite limitations in the available methodology for testing these entities, the data so far available indicate PFOS to be very persistent, very bio-accumulative and potentially toxic and that risk reduction measures are justified to prevent any recurrence of wide-scale use.

| 2.3 | The Commission and SCHER also agree that there are specific low volume applications where effective substitute products or processes are not yet available. Given that the continued use of PFOS-related products in these residual applications does not appear to pose any additional risks to human health and the environment, derogations from the overall restriction on marketing and use should be given. The end uses to which derogations must be given are set out and discussed in the proposal. |
| --- | --- |

2.3

The Commission and SCHER also agree that there are specific low volume applications where effective substitute products or processes are not yet available. Given that the continued use of PFOS-related products in these residual applications does not appear to pose any additional risks to human health and the environment, derogations from the overall restriction on marketing and use should be given. The end uses to which derogations must be given are set out and discussed in the proposal.

| 2.4 | Further work is required under the Research Framework Programme (PERFORCE) on exposures, sources, routes and physico-chemical parameters of these PFOS-related substances. |
| --- | --- |

2.4

Further work is required under the Research Framework Programme (PERFORCE) on exposures, sources, routes and physico-chemical parameters of these PFOS-related substances.

| 2.5 | The proposal is intended to guarantee a high level of protection for health and the environment. The Internal Market in such products will be preserved. The costs to the affected sectors are believed to be minimal. Considerable consultation has taken place. |
| --- | --- |

2.5

The proposal is intended to guarantee a high level of protection for health and the environment. The Internal Market in such products will be preserved. The costs to the affected sectors are believed to be minimal. Considerable consultation has taken place.

3.   General comments

| 3.1 | Fluorinated chemicals were developed in the late 1940s and have been used in increasing quantities to generate inert liquids with low surface tension (very spreadable) or solid surfaces with specific (usually non-stick) properties. A sub-group of these, PFOS-related products, were developed by companies such as 3M to provide grease, oil and water resistance in a range of industrial and consumer applications. By the year 2000, approximately 4 500 tonnes per year were being manufactured and marketed worldwide in products such as 3M ScotchgardTM carpet and fabric conditioner. Following the withdrawal of PFOS-related substances, these products have been reformulated around other fluorinated chemicals with similar surfactant properties but with reduced impacts on health and the environment. |
| --- | --- |

3.1

Fluorinated chemicals were developed in the late 1940s and have been used in increasing quantities to generate inert liquids with low surface tension (very spreadable) or solid surfaces with specific (usually non-stick) properties. A sub-group of these, PFOS-related products, were developed by companies such as 3M to provide grease, oil and water resistance in a range of industrial and consumer applications. By the year 2000, approximately 4 500 tonnes per year were being manufactured and marketed worldwide in products such as 3M ScotchgardTM carpet and fabric conditioner. Following the withdrawal of PFOS-related substances, these products have been reformulated around other fluorinated chemicals with similar surfactant properties but with reduced impacts on health and the environment.

| 3.2 | As the name (‘PFOS’) suggests, these are products where all (‘per’) the hydrogen atoms on an eight-member (‘octane’) carbon chain have been replaced by fluorine (‘fluoro’) atoms and one SO3 — (‘sulfonate’) group to form a stable negatively charged entity (‘anion’) which can in turn form a water-soluble, crystalline salt with metals such as lithium, sodium or potassium, or with other positively charged groups (‘cations’) such as NH4
  - (‘ammonium’). ‘PFOS’ is not a single ‘substance’ but refers to components (‘entities’ or ‘moieties’) of ‘substances’ under EU laws on ‘substances’ and ‘preparations’. PFOS-related substances are made by a specific chemical process called ‘electro-chemical fluorination’. |
| --- | --- |

3.2

As the name (‘PFOS’) suggests, these are products where all (‘per’) the hydrogen atoms on an eight-member (‘octane’) carbon chain have been replaced by fluorine (‘fluoro’) atoms and one SO3 — (‘sulfonate’) group to form a stable negatively charged entity (‘anion’) which can in turn form a water-soluble, crystalline salt with metals such as lithium, sodium or potassium, or with other positively charged groups (‘cations’) such as NH4
  - (‘ammonium’). ‘PFOS’ is not a single ‘substance’ but refers to components (‘entities’ or ‘moieties’) of ‘substances’ under EU laws on ‘substances’ and ‘preparations’. PFOS-related substances are made by a specific chemical process called ‘electro-chemical fluorination’.

| 3.3 | The combination of ‘organic’ (carbon-based, oil soluble) and ‘inorganic’ (metal salt, water soluble) properties makes PFOS-related substances extremely effective as surface active agents (‘surfactants’) in a range of specialist applications. The entities resist oxidation (are inert and do not burn) or any other environmental breakdown (are stable and therefore persistent). Given their solubility in both oil and water, they are likely to bio-accumulate. They may or may not be toxic to different species under different conditions of exposure. Their unusual physical and chemical properties mean that, as SCHER noted, laboratory test methods may prove unreliable in determining their effects in the environment as a whole. |
| --- | --- |

3.3

The combination of ‘organic’ (carbon-based, oil soluble) and ‘inorganic’ (metal salt, water soluble) properties makes PFOS-related substances extremely effective as surface active agents (‘surfactants’) in a range of specialist applications. The entities resist oxidation (are inert and do not burn) or any other environmental breakdown (are stable and therefore persistent). Given their solubility in both oil and water, they are likely to bio-accumulate. They may or may not be toxic to different species under different conditions of exposure. Their unusual physical and chemical properties mean that, as SCHER noted, laboratory test methods may prove unreliable in determining their effects in the environment as a whole.

| 3.4 | Fully fluorinated short-chain polymers with similar properties to PFOS-related substances as surfactants but with lower or negligible impacts on human health and the environment can be made by a process known as ‘telomerisation’. These products (‘telomers’) are not the subject of this proposal. |
| --- | --- |

3.4

Fully fluorinated short-chain polymers with similar properties to PFOS-related substances as surfactants but with lower or negligible impacts on human health and the environment can be made by a process known as ‘telomerisation’. These products (‘telomers’) are not the subject of this proposal.

| 3.5 | According to an OECD estimate in 2004, later quoted by SCHER, total annual usage of PFOS-related substances in the EU in 2000 was approximately 500 tonnes, of which 98 % was used to treat fabrics, paper or coatings. Annual emissions were believed to be around 174 tonnes. By 2004, worldwide usage had dropped significantly. Annual emissions in the EU were by then estimated in the worst case at 10 tonnes, assuming 9 tonnes from unrecovered waste water from metal plating. According to more recent German data, much of this too can be recovered.. |
| --- | --- |

3.5

According to an OECD estimate in 2004, later quoted by SCHER, total annual usage of PFOS-related substances in the EU in 2000 was approximately 500 tonnes, of which 98 % was used to treat fabrics, paper or coatings. Annual emissions were believed to be around 174 tonnes. By 2004, worldwide usage had dropped significantly. Annual emissions in the EU were by then estimated in the worst case at 10 tonnes, assuming 9 tonnes from unrecovered waste water from metal plating. According to more recent German data, much of this too can be recovered..

| 3.6 | SCHER also noted that it is only in recent years that analytical techniques have become sufficiently sophisticated to detect and reliably determine PFOS concentrations in environmental samples. It is therefore difficult to track changes due to the above reductions. SCHER could however conclude that emissions from the ongoing uses for which derogations are proposed will affect PFOS concentrations only on the local level and will insignificantly affect the overall concentration in the environment. More specifically, SCHER concluded that the overall risks for the environment and the general public were negligible with regard to their continuing use in the photographic, semiconductor and aviation industries. Usage in the plating industry was however a cause for concern and should be restricted. |
| --- | --- |

3.6

SCHER also noted that it is only in recent years that analytical techniques have become sufficiently sophisticated to detect and reliably determine PFOS concentrations in environmental samples. It is therefore difficult to track changes due to the above reductions. SCHER could however conclude that emissions from the ongoing uses for which derogations are proposed will affect PFOS concentrations only on the local level and will insignificantly affect the overall concentration in the environment. More specifically, SCHER concluded that the overall risks for the environment and the general public were negligible with regard to their continuing use in the photographic, semiconductor and aviation industries. Usage in the plating industry was however a cause for concern and should be restricted.

| 3.7 | Occupational hazards for each of the sectors require separate assessments. However, in the case of the photographic, semiconductor and aviation industries, given the nature of the industries involved and the high levels of protection already in place, it is difficult to see how the use of PFOS-related substances would present any additional hazards in the workplace. Usage in the chromium plating industry is however again a cause for concern. In the case of fire-fighting foams, the health and environmental risks of the proposed substitutes must be assessed before any decision is taken. Proper disposal routes for existing stocks and for run-off from major fires must also be agreed. |
| --- | --- |

3.7

Occupational hazards for each of the sectors require separate assessments. However, in the case of the photographic, semiconductor and aviation industries, given the nature of the industries involved and the high levels of protection already in place, it is difficult to see how the use of PFOS-related substances would present any additional hazards in the workplace. Usage in the chromium plating industry is however again a cause for concern. In the case of fire-fighting foams, the health and environmental risks of the proposed substitutes must be assessed before any decision is taken. Proper disposal routes for existing stocks and for run-off from major fires must also be agreed.

| 3.8 | The EESC endorses the above and trusts that the necessary actions will be included in the work plans of the Commission. |
| --- | --- |

3.8

The EESC endorses the above and trusts that the necessary actions will be included in the work plans of the Commission.

4.   Specific comments

| 4.1 | The EESC supports the two restrictions on PFOS-related substances as defined in the proposal, i.e. (1) they may not be placed on the market or used as a substance or constituent of preparations equal or higher than 0.1 % by mass and (2) they may not be placed on the market in products or parts thereof in a concentration equal or higher than 0.1 % by mass. |
| --- | --- |

4.1

The EESC supports the two restrictions on PFOS-related substances as defined in the proposal, i.e. (1) they may not be placed on the market or used as a substance or constituent of preparations equal or higher than 0.1 % by mass and (2) they may not be placed on the market in products or parts thereof in a concentration equal or higher than 0.1 % by mass.

| 4.2 | The EESC also supports the derogation in paragraph (3) that paragraphs (1) and (2) above shall not apply in the six specific cases set out in the proposal and discussed in the paragraphs following. |
| --- | --- |

4.2

The EESC also supports the derogation in paragraph (3) that paragraphs (1) and (2) above shall not apply in the six specific cases set out in the proposal and discussed in the paragraphs following.

| 4.2.1 | Photolithography: this is, broadly, the process by which computer chips are patterned. New developments in semiconductor manufacture require specialised process fluids to allow the patterning to take place with very high reliability, density and uniformity. The PFOS-related substances provide unique electrochemical and surfactant properties and are regarded as ‘mission critical’ by the semiconductor industry. The process fluids, which do not remain in the finished products, are subject to rigorous specification and testing for each technology at each plant of every manufacturer. Used in ‘clean room’ manufacturing environments where all contamination must be eliminated, there is no possibility of workplace exposure. According to a 2002 mass balance for the industry, total emissions were below 45 kg per year. Product development times are up to 10 years. Despite extensive global R&D, no substitutes have been identified for these remaining uses. The most probable route for the removal of PFOS-related substances could be a new method of chip manufacture, yet to be invented. In the absence of this derogation, manufacture could not take place in the EU, although it could be continued without difficulty elsewhere. Given all of the above, and in the absence of any new evidence for concern, the EESC recommends that no time limit should be set for the removal of this derogation. |
| --- | --- |

4.2.1

Photolithography: this is, broadly, the process by which computer chips are patterned. New developments in semiconductor manufacture require specialised process fluids to allow the patterning to take place with very high reliability, density and uniformity. The PFOS-related substances provide unique electrochemical and surfactant properties and are regarded as ‘mission critical’ by the semiconductor industry. The process fluids, which do not remain in the finished products, are subject to rigorous specification and testing for each technology at each plant of every manufacturer. Used in ‘clean room’ manufacturing environments where all contamination must be eliminated, there is no possibility of workplace exposure. According to a 2002 mass balance for the industry, total emissions were below 45 kg per year. Product development times are up to 10 years. Despite extensive global R&D, no substitutes have been identified for these remaining uses. The most probable route for the removal of PFOS-related substances could be a new method of chip manufacture, yet to be invented. In the absence of this derogation, manufacture could not take place in the EU, although it could be continued without difficulty elsewhere. Given all of the above, and in the absence of any new evidence for concern, the EESC recommends that no time limit should be set for the removal of this derogation.

| 4.2.2 | Photographic coatings: PFOS-related substances are purchased in concentrated solutions then extensively diluted to provide a range of properties essential for both workplace health and safety and overall product performance control in specialist photo imaging applications. These desired properties include electrostatic charge control, friction and adhesion control, dirt repellence and other surfactant properties for high performance imaging. Production techniques require as many as 18 imaging layers to be applied on to a fast moving film base to provide a uniform layer typically less than 0.11 mm thick. The fluids used must not be photoactive but must allow even spreading and good adhesion of subsequent layers. The antistatic properties are essential to minimise the risk of fire or explosion and subsequent injury to employees or to operating equipment. Usage of PFOS-related substances has been reduced by at least 60 % in recent years by substitution in less critical applications and by the overall decline in film usage v. digital for many consumer, health and industrial applications. The remaining usages contribute less than 8 kg to the environment per year. It is likely that further moves towards digital will result in continuing decreases in the quantities required for film manufacture, although demand for photographic paper, for instance, for printing digital images, is expected to continue. Despite extensive research, no replacements have been identified for these few remaining uses of PFOS-related substances. New processes, not yet invented, requiring 10 years or more to develop, implement, test and accredit, will be required to complete the process. In the absence of this derogation, manufacture could not take place in the EU although could be continued without difficulty elsewhere. Given all of the above, and in the absence of any new evidence for concern, the EESC recommends that no time limit should be set for the removal of this derogation. |
| --- | --- |

4.2.2

Photographic coatings: PFOS-related substances are purchased in concentrated solutions then extensively diluted to provide a range of properties essential for both workplace health and safety and overall product performance control in specialist photo imaging applications. These desired properties include electrostatic charge control, friction and adhesion control, dirt repellence and other surfactant properties for high performance imaging. Production techniques require as many as 18 imaging layers to be applied on to a fast moving film base to provide a uniform layer typically less than 0.11 mm thick. The fluids used must not be photoactive but must allow even spreading and good adhesion of subsequent layers. The antistatic properties are essential to minimise the risk of fire or explosion and subsequent injury to employees or to operating equipment. Usage of PFOS-related substances has been reduced by at least 60 % in recent years by substitution in less critical applications and by the overall decline in film usage v. digital for many consumer, health and industrial applications. The remaining usages contribute less than 8 kg to the environment per year. It is likely that further moves towards digital will result in continuing decreases in the quantities required for film manufacture, although demand for photographic paper, for instance, for printing digital images, is expected to continue. Despite extensive research, no replacements have been identified for these few remaining uses of PFOS-related substances. New processes, not yet invented, requiring 10 years or more to develop, implement, test and accredit, will be required to complete the process. In the absence of this derogation, manufacture could not take place in the EU although could be continued without difficulty elsewhere. Given all of the above, and in the absence of any new evidence for concern, the EESC recommends that no time limit should be set for the removal of this derogation.

| 4.2.3 | Mist suppressants for chromium plating: PFOS-related substances in dilute solution protect the health and safety of workers engaged in the decorative and protective chromium plating of metal or plastic substrates for the automobile and other consumer-driven industries. They also act as surface tension reducers and wetting agents, in particular in plastics etching. The working environment for chromium plating is recognised to be harsh and potentially dangerous, in particular in processes based on Cr(VI), a known carcinogen. The suppression of mists and increased human exposure is therefore essential. The situation can be improved through the use of processes based on Cr(III) but these are not yet fully available. Only PFOS-based surfactants have so far proved to be stable in either of these circumstances. Annual usage in Europe in 2000, according to SCHER, was around 10 tonnes. Estimates of the total annual release to the environment differ considerably, depending on the processes used and the degree to which these are controlled with respect to emissions, recycling and waste incineration. A German industry estimate, based on local best practice, suggests that total emissions could be as low as 500 kg per year if extrapolated across Europe. If less good technology and controls are used, the emissions could be higher. Given that chromium plating is the largest remaining ongoing use of PFOS-related substances, and that the technology is evolving and to some extent alternatives are already available, it seems appropriate that a time limit should be set for this proposed derogation and further, that, as suggested by SCHER, occupational exposure analyses and longer term assessments of the risk to the environment should be conducted without delay. These should be undertaken in cooperation with the industry to ensure that manufacturing can continue in the EU. There is no incentive to drive out one critical stage of automobile manufacture, with the obvious risk that the remaining production would eventually follow. Neither should any premature removal of PFOS-related mist suppressants lead to increased risks for worker health. The EESC recommends that this derogation should apply for a period of five years only before review by the Commission and SCHER. |
| --- | --- |

4.2.3

Mist suppressants for chromium plating: PFOS-related substances in dilute solution protect the health and safety of workers engaged in the decorative and protective chromium plating of metal or plastic substrates for the automobile and other consumer-driven industries. They also act as surface tension reducers and wetting agents, in particular in plastics etching. The working environment for chromium plating is recognised to be harsh and potentially dangerous, in particular in processes based on Cr(VI), a known carcinogen. The suppression of mists and increased human exposure is therefore essential. The situation can be improved through the use of processes based on Cr(III) but these are not yet fully available. Only PFOS-based surfactants have so far proved to be stable in either of these circumstances. Annual usage in Europe in 2000, according to SCHER, was around 10 tonnes. Estimates of the total annual release to the environment differ considerably, depending on the processes used and the degree to which these are controlled with respect to emissions, recycling and waste incineration. A German industry estimate, based on local best practice, suggests that total emissions could be as low as 500 kg per year if extrapolated across Europe. If less good technology and controls are used, the emissions could be higher. Given that chromium plating is the largest remaining ongoing use of PFOS-related substances, and that the technology is evolving and to some extent alternatives are already available, it seems appropriate that a time limit should be set for this proposed derogation and further, that, as suggested by SCHER, occupational exposure analyses and longer term assessments of the risk to the environment should be conducted without delay. These should be undertaken in cooperation with the industry to ensure that manufacturing can continue in the EU. There is no incentive to drive out one critical stage of automobile manufacture, with the obvious risk that the remaining production would eventually follow. Neither should any premature removal of PFOS-related mist suppressants lead to increased risks for worker health. The EESC recommends that this derogation should apply for a period of five years only before review by the Commission and SCHER.

| 4.2.4 | Hydraulic fluids for aviation: these are the fluids used to drive the control surfaces and other components of commercial, military and general aviation aeroplanes. They are used, and must continue to function on a daily basis to the highest possible operating standards to maintain aircraft and passenger safety, under the most extreme conditions of temperature and pressure. The business is global, and products, components and systems are subject to extensive testing and certification by aircraft manufacturers and by relevant national and international bodies. A typical approval cycle for a new formulation can take up to 20 years. PFOS-related substances are used in small quantities (around 0.1 % by mass) to provide erosion resistance for mechanical parts, valves, tubes and orifices. Despite extensive testing, no substitutes or, to date, any indications of possible substitutes, have been found. They are used in closed systems under tightly controlled conditions. Total releases to soil and water were estimated by SCHER to be below 15 kg per year. Given all of the above, and in the absence of any new evidence for concern, the EESC recommends that no time limit should be set for the removal of this derogation. |
| --- | --- |

4.2.4

Hydraulic fluids for aviation: these are the fluids used to drive the control surfaces and other components of commercial, military and general aviation aeroplanes. They are used, and must continue to function on a daily basis to the highest possible operating standards to maintain aircraft and passenger safety, under the most extreme conditions of temperature and pressure. The business is global, and products, components and systems are subject to extensive testing and certification by aircraft manufacturers and by relevant national and international bodies. A typical approval cycle for a new formulation can take up to 20 years. PFOS-related substances are used in small quantities (around 0.1 % by mass) to provide erosion resistance for mechanical parts, valves, tubes and orifices. Despite extensive testing, no substitutes or, to date, any indications of possible substitutes, have been found. They are used in closed systems under tightly controlled conditions. Total releases to soil and water were estimated by SCHER to be below 15 kg per year. Given all of the above, and in the absence of any new evidence for concern, the EESC recommends that no time limit should be set for the removal of this derogation.

| 4.2.5 | Fire-fighting foams: fluorinated surfactants have been used in high-specification fire-fighting foams for many years. PFOS-related substances have been largely replaced in new foams manufactured to replace stocks used to extinguish actual fires or to provide stocks for new developments, airports, petroleum refineries and chemical plants, marine vessels and tank farms. However, the health and environmental impact of these alternative products has not yet been fully assessed. All foams have to be sold with 15-20 year guarantees, as ideally they are never used. Significant stocks of PFOS-containing foams therefore still exist and disposal of these stocks is now the key issue. The surfactants must allow water-based foams to spread quickly on the surface of the burning hydrocarbons, rather than sinking below them, in order to cut off the supply of oxygen and prevent burn-back. Both surfactants and foams must be stable under intense conditions of use and both must resist oxidation. Performance standards for foams for different fire scenarios are set by national and international bodies. Stocks of 3 % or 6 % concentrates are stored in central depots, for distribution and dilution on site when a fire occurs. Large volumes may be required and the problems of waste disposal of the run-off after the fire may be considerable. The run-off is inevitably contaminated by the products that were on fire, by the by-products of uncontrolled low temperature carbon incineration (polyaromatic hydrocarbons (PAHs) and dioxins) and by the components of the foams. The recent fire in a storage depot in Buncefield, UK, for instance, has left a residue of 20 million litres of contaminated waste. High temperature incineration is the only assured approach, but this is inefficient and costly where the bulk of the material is water. Annual emissions to the environment are therefore hard to determine, being dependent on the number, scale and circumstances of each fire, and critically on the extent to which the run-off can be contained by bund walls. SCHER quoted an annual release in the EU of under 600 kg and noted that this could overstate actual releases. The EESC agrees with SCHER that the existing stocks of PFOS-based foam concentrates should not be incinerated until the alternatives have been fully evaluated. The EESC therefore recommends that the necessary impact and risk assessments should be undertaken as quickly as possible and that remaining PFOS-based foams should be used only where essential on performance grounds and where the run-off can be contained by bund walls. The Commission should work with the industry and with national competent authorities to ensure that there are adequate disposal routes for the large volumes of waste generated. Given the many uncertainties, the EESC believes that there is no point in setting a time limit for the removal of this derogation, but every point in resolving the outstanding questions as fast as possible. |
| --- | --- |

4.2.5

Fire-fighting foams: fluorinated surfactants have been used in high-specification fire-fighting foams for many years. PFOS-related substances have been largely replaced in new foams manufactured to replace stocks used to extinguish actual fires or to provide stocks for new developments, airports, petroleum refineries and chemical plants, marine vessels and tank farms. However, the health and environmental impact of these alternative products has not yet been fully assessed. All foams have to be sold with 15-20 year guarantees, as ideally they are never used. Significant stocks of PFOS-containing foams therefore still exist and disposal of these stocks is now the key issue. The surfactants must allow water-based foams to spread quickly on the surface of the burning hydrocarbons, rather than sinking below them, in order to cut off the supply of oxygen and prevent burn-back. Both surfactants and foams must be stable under intense conditions of use and both must resist oxidation. Performance standards for foams for different fire scenarios are set by national and international bodies. Stocks of 3 % or 6 % concentrates are stored in central depots, for distribution and dilution on site when a fire occurs. Large volumes may be required and the problems of waste disposal of the run-off after the fire may be considerable. The run-off is inevitably contaminated by the products that were on fire, by the by-products of uncontrolled low temperature carbon incineration (polyaromatic hydrocarbons (PAHs) and dioxins) and by the components of the foams. The recent fire in a storage depot in Buncefield, UK, for instance, has left a residue of 20 million litres of contaminated waste. High temperature incineration is the only assured approach, but this is inefficient and costly where the bulk of the material is water. Annual emissions to the environment are therefore hard to determine, being dependent on the number, scale and circumstances of each fire, and critically on the extent to which the run-off can be contained by bund walls. SCHER quoted an annual release in the EU of under 600 kg and noted that this could overstate actual releases. The EESC agrees with SCHER that the existing stocks of PFOS-based foam concentrates should not be incinerated until the alternatives have been fully evaluated. The EESC therefore recommends that the necessary impact and risk assessments should be undertaken as quickly as possible and that remaining PFOS-based foams should be used only where essential on performance grounds and where the run-off can be contained by bund walls. The Commission should work with the industry and with national competent authorities to ensure that there are adequate disposal routes for the large volumes of waste generated. Given the many uncertainties, the EESC believes that there is no point in setting a time limit for the removal of this derogation, but every point in resolving the outstanding questions as fast as possible.

| 4.2.6 | Other controlled closed systems: this is, or should be, a standard derogation for the majority of substances subject to EU marketing and use restrictions. Provided that raw materials can be safely delivered to the system, and products and waste products safely removed, then very low emission systems allow continuing manufacture of essential intermediates with minimal risk to human health or the environment. Workplace reviews of the operating conditions should be undertaken under routine health and safety inspection. In the absence of any new evidence of concern, the EESC recommends that no time limit should be set for the removal of this derogation. |
| --- | --- |

4.2.6

Other controlled closed systems: this is, or should be, a standard derogation for the majority of substances subject to EU marketing and use restrictions. Provided that raw materials can be safely delivered to the system, and products and waste products safely removed, then very low emission systems allow continuing manufacture of essential intermediates with minimal risk to human health or the environment. Workplace reviews of the operating conditions should be undertaken under routine health and safety inspection. In the absence of any new evidence of concern, the EESC recommends that no time limit should be set for the removal of this derogation.

| 4.3 | The Commission will continue to have a key role in ensuring a satisfactory outcome in each of the above sectors. A continuing programme of research will be required, in and outside the affected sectors to develop alternative products and processes. The Directives affecting these sectors should be modified when necessary to reflect changes in current or proposed global practice. |
| --- | --- |

4.3

The Commission will continue to have a key role in ensuring a satisfactory outcome in each of the above sectors. A continuing programme of research will be required, in and outside the affected sectors to develop alternative products and processes. The Directives affecting these sectors should be modified when necessary to reflect changes in current or proposed global practice.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/14 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/14

---

Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council amending Council Directives 90/385/EEC and 93/42/EEC and Directive 98/8/EC of the European Parliament and the Council as regards the review of the medical device directives

(COM(2005) 681 final — 2005/0263 (COD))

(2006/C 195/04)

On 2 February 2006 the Council decided to consult the European Economic and Social Committee, under Article 95 of the Treaty establishing the European Community, on the abovementioned proposal.

The Section for the Single Market, Production and Consumption, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 25 April 2006. The rapporteur was Mr Braghin.

At its 427th plenary session, held on 17 and 18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion with 128 votes in favour and one abstention.

1.   Gist of the opinion

| 1.1 | The EESC welcomes the Commission proposal, which has long been awaited by the Member States and operators in the sector. Its objectives may be endorsed, and the proposals are generally sound. However, the EESC offers a number of practical suggestions aimed at furthering the aims of legal certainty, clarity, simplification and health protection. |
| --- | --- |

1.1

The EESC welcomes the Commission proposal, which has long been awaited by the Member States and operators in the sector. Its objectives may be endorsed, and the proposals are generally sound. However, the EESC offers a number of practical suggestions aimed at furthering the aims of legal certainty, clarity, simplification and health protection.

| 1.2 | The EESC calls for greater clarity as to which authority is responsible for the overall evaluation in cases of a combination of medical devices, medicinal products, human blood derivatives and human tissue. It also asks that a deadline be set for the evaluation by the competent authorities, and that a guide to the specific competences and procedures for this evaluation be drawn up. |
| --- | --- |

1.2

The EESC calls for greater clarity as to which authority is responsible for the overall evaluation in cases of a combination of medical devices, medicinal products, human blood derivatives and human tissue. It also asks that a deadline be set for the evaluation by the competent authorities, and that a guide to the specific competences and procedures for this evaluation be drawn up.

| 1.3 | The EESC believes that it should be compulsory to send information regarding registration, clinical data, certificates and vigilance to the existing European databank, which should be strengthened. It also asks that means be found for securing wide circulation of non-confidential information, not only among the notified bodies and the competent authorities but also among the operators concerned. |
| --- | --- |

1.3

The EESC believes that it should be compulsory to send information regarding registration, clinical data, certificates and vigilance to the existing European databank, which should be strengthened. It also asks that means be found for securing wide circulation of non-confidential information, not only among the notified bodies and the competent authorities but also among the operators concerned.

| 1.4 | Health operators' role and responsibilities in the post-marketing surveillance system should be made clearer, and steps should be taken to ensure appropriate dissemination of information and results arising from this surveillance. |
| --- | --- |

1.4

Health operators' role and responsibilities in the post-marketing surveillance system should be made clearer, and steps should be taken to ensure appropriate dissemination of information and results arising from this surveillance.

| 1.5 | The EESC appreciates the proposals regarding clinical investigations, which relate to the safety and performance of a device. It suggests a few changes designed to make them even clearer, more particularly as regards the point at which clinical research may begin, once the relevant ethics committee has given its authorisation in accordance with the classification of the device. |
| --- | --- |

1.5

The EESC appreciates the proposals regarding clinical investigations, which relate to the safety and performance of a device. It suggests a few changes designed to make them even clearer, more particularly as regards the point at which clinical research may begin, once the relevant ethics committee has given its authorisation in accordance with the classification of the device.

| 1.6 | The EESC is against the exclusion of ‘reprocessing’ from the proposed text. The re-use of medical devices designed and produced to be used only once poses a danger to patient health. The EESC therefore asks that the reprocessing company be at least required to submit a set of data on the type of operation conducted and provide similar guarantees of quality and safety to those that apply to the original product, informing users and patients of this. |
| --- | --- |

1.6

The EESC is against the exclusion of ‘reprocessing’ from the proposed text. The re-use of medical devices designed and produced to be used only once poses a danger to patient health. The EESC therefore asks that the reprocessing company be at least required to submit a set of data on the type of operation conducted and provide similar guarantees of quality and safety to those that apply to the original product, informing users and patients of this.

2.   Gist of the Commission proposal

| 2.1 | Although, on the whole, the experience garnered from implementing Directives 90/385/EEC (1) relating to active implantable medical devices and 93/42/EEC (2) concerning medical devices has been positive, legislative modification is necessary in the interests of better implementation, both to clarify certain existing requirements and to provide a legal basis for planned initiatives. |
| --- | --- |

2.1

Although, on the whole, the experience garnered from implementing Directives 90/385/EEC (1) relating to active implantable medical devices and 93/42/EEC (2) concerning medical devices has been positive, legislative modification is necessary in the interests of better implementation, both to clarify certain existing requirements and to provide a legal basis for planned initiatives.

| 2.2 | Directive 93/42/EEC requires the Commission to submit a report to the Council within five years of the implementation date, concerning certain aspects of the functioning of the directive. The review process gave rise to a report on the functioning of the Medical Devices Directives, published in June 2002. Its conclusions were taken up by the Commission in its Communication COM (2003)386 (3), which was welcomed by the Council in its Conclusions of December 2003 and by the Parliament. |
| --- | --- |

2.2

Directive 93/42/EEC requires the Commission to submit a report to the Council within five years of the implementation date, concerning certain aspects of the functioning of the directive. The review process gave rise to a report on the functioning of the Medical Devices Directives, published in June 2002. Its conclusions were taken up by the Commission in its Communication COM (2003)386 (3), which was welcomed by the Council in its Conclusions of December 2003 and by the Parliament.

| 2.3 | The communication highlighted the most important areas where improvements should be made:






  — | conformity assessment, in particular concerning design examination by notified bodies (4); |
| --- | --- | --- |

2.3

The communication highlighted the most important areas where improvements should be made:

—

conformity assessment, in particular concerning design examination by notified bodies (4);

| — | the adequacy of clinical data for all classes of devices; |
| --- | --- |

—

the adequacy of clinical data for all classes of devices;

| — | post-market surveillance, in particular for better coordination of activities; |
| --- | --- |

—

post-market surveillance, in particular for better coordination of activities;

| — | notified bodies, in relation to their competence for the tasks designated to them, differences in interpretation between them, and a lack of transparency in their performance and in control over their activities; |
| --- | --- |

—

notified bodies, in relation to their competence for the tasks designated to them, differences in interpretation between them, and a lack of transparency in their performance and in control over their activities;

| — | and increased transparency vis à vis the general public in relation to the assessment of devices. |
| --- | --- |

—

and increased transparency vis à vis the general public in relation to the assessment of devices.

The Commission began its consultation in 2003, primarily through the Commission services' Medical Device Experts Group (MDEG). This was followed by a public consultation over the Internet (5).

| 2.4 | Since the proposal deals more with regulatory clarification than regulatory change, there are no significant economic impacts expected. Similarly, no environmental impacts were identified. The Commission intends to use the proposal to promote:






  — | increased clarity, to support a high level of public health protection; |
| --- | --- | --- |

2.4

Since the proposal deals more with regulatory clarification than regulatory change, there are no significant economic impacts expected. Similarly, no environmental impacts were identified. The Commission intends to use the proposal to promote:

—

increased clarity, to support a high level of public health protection;

| — | greater transparency and certainty for all market players and, in particular, the public; |
| --- | --- |

—

greater transparency and certainty for all market players and, in particular, the public;

| — | an improved regulatory framework to support fast technical progress to benefit the public under clearer conditions, guaranteeing safety and greater confidence. |
| --- | --- |

—

an improved regulatory framework to support fast technical progress to benefit the public under clearer conditions, guaranteeing safety and greater confidence.

| 2.5 | The legal basis for the proposal is Article 95 of the EC Treaty (formerly Article 100A) upon which Directive 93/42/EEC is based. In order to achieve the objective of abolishing technical barriers to trade and clarifying existing provisions in Directives 93/42/EEC and 90/385/EEC, it is necessary and appropriate to harmonise the laws, regulations and administrative provisions in the Member States on certain aspects concerning the placing on the market or putting into service of medical devices. |
| --- | --- |

2.5

The legal basis for the proposal is Article 95 of the EC Treaty (formerly Article 100A) upon which Directive 93/42/EEC is based. In order to achieve the objective of abolishing technical barriers to trade and clarifying existing provisions in Directives 93/42/EEC and 90/385/EEC, it is necessary and appropriate to harmonise the laws, regulations and administrative provisions in the Member States on certain aspects concerning the placing on the market or putting into service of medical devices.

3.   General comments

| 3.1 | The EESC welcomes the Commission proposal, which has long been awaited by the Member States and operators in the sector. Its objectives are wholly laudable and the practical proposals should improve harmonisation in this highly complex and diversified sector, by providing clearer, simpler rules. The Committee does however have some reservations and these are outlined below. |
| --- | --- |

3.1

The EESC welcomes the Commission proposal, which has long been awaited by the Member States and operators in the sector. Its objectives are wholly laudable and the practical proposals should improve harmonisation in this highly complex and diversified sector, by providing clearer, simpler rules. The Committee does however have some reservations and these are outlined below.

| 3.2 | Medical devices are an increasingly important health-sector segment, with a major impact on both health and on public healthcare spending. The provisions in the directives in question concern over 10 000 types of product, ranging from simple devices (such as gauze, syringes and glasses) to extremely sophisticated and complex instruments (such as life-saving implantable devices and diagnostic imaging equipment). |
| --- | --- |

3.2

Medical devices are an increasingly important health-sector segment, with a major impact on both health and on public healthcare spending. The provisions in the directives in question concern over 10 000 types of product, ranging from simple devices (such as gauze, syringes and glasses) to extremely sophisticated and complex instruments (such as life-saving implantable devices and diagnostic imaging equipment).

| 3.3 | The sector has a high technological profile, as the public and the health authorities require ever safer and more sophisticated products. It is also of major economic importance: the European market is second only to the American, with a turnover of approximately EUR 55 billion, involving over 8 000 companies and some 450 000 employees. |
| --- | --- |

3.3

The sector has a high technological profile, as the public and the health authorities require ever safer and more sophisticated products. It is also of major economic importance: the European market is second only to the American, with a turnover of approximately EUR 55 billion, involving over 8 000 companies and some 450 000 employees.

| 3.4 | It should be noted that a large and growing number of devices are imported into the EU. A clearer and more effective legal framework and more open cooperation between the relevant authorities could inject new life into the sector and minimise the risk of losing market share and jobs. |
| --- | --- |

3.4

It should be noted that a large and growing number of devices are imported into the EU. A clearer and more effective legal framework and more open cooperation between the relevant authorities could inject new life into the sector and minimise the risk of losing market share and jobs.

| 3.5 | Although the Commission rightly judges that there will be no significant macroeconomic impact, the combined effect of the additional requirements could increase costs quite considerably for certain processes or product lines. |
| --- | --- |

3.5

Although the Commission rightly judges that there will be no significant macroeconomic impact, the combined effect of the additional requirements could increase costs quite considerably for certain processes or product lines.

3.6   Legal certainty

| 3.6.1 | The proposal defines changes to be made to the above-mentioned directives and clarifies certain implementation procedures for other directives and regulations in cases where it was not entirely clear which rules applied (devices incorporating a medicinal product (6), human blood derivatives (7) or human tissue engineered products (8)). It also provides clarification that in vitro diagnostic medical devices (9) are not covered by the biocides directive (10), which is modified accordingly. |
| --- | --- |

3.6.1

The proposal defines changes to be made to the above-mentioned directives and clarifies certain implementation procedures for other directives and regulations in cases where it was not entirely clear which rules applied (devices incorporating a medicinal product (6), human blood derivatives (7) or human tissue engineered products (8)). It also provides clarification that in vitro diagnostic medical devices (9) are not covered by the biocides directive (10), which is modified accordingly.

| 3.6.2 | The EESC agrees with the principle that if medical devices contain medicinal products or human blood derivatives or human tissue engineered products ‘with action that is ancillary to that of the device’, the medical devices directives should apply. It wonders however why there is no specific mention in the body of the regulation of tissues of animal origin, which are mentioned in certain annexes. It also fears that the definition of ‘action ancillary to that of the device’ could give rise once more to varying interpretations between Member States and notified bodies, and would therefore like to see this concept defined more precisely. |
| --- | --- |

3.6.2

The EESC agrees with the principle that if medical devices contain medicinal products or human blood derivatives or human tissue engineered products ‘with action that is ancillary to that of the device’, the medical devices directives should apply. It wonders however why there is no specific mention in the body of the regulation of tissues of animal origin, which are mentioned in certain annexes. It also fears that the definition of ‘action ancillary to that of the device’ could give rise once more to varying interpretations between Member States and notified bodies, and would therefore like to see this concept defined more precisely.

| 3.6.3 | Greater clarity is required regarding which authority is responsible for the overall evaluation in cases of a combination of devices incorporating medicinal substances, blood derivatives and human tissue: in such cases the notified bodies may involve national or Community authorities (such as the EMEA) which do not always have the necessary expertise to assess medical devices as such and apply procedures designed for a different type of product, often leading to excessively long timeframes. |
| --- | --- |

3.6.3

Greater clarity is required regarding which authority is responsible for the overall evaluation in cases of a combination of devices incorporating medicinal substances, blood derivatives and human tissue: in such cases the notified bodies may involve national or Community authorities (such as the EMEA) which do not always have the necessary expertise to assess medical devices as such and apply procedures designed for a different type of product, often leading to excessively long timeframes.

| 3.6.3.1 | The EESC thinks that a deadline should be set for the evaluation, bearing in mind that in this sector an innovative product can very rapidly become obsolete. It also asks that a guide be drawn up regarding the specific responsibilities and procedures for evaluation by the competent authorities, in cooperation with the authorities responsible for the devices. Lastly, on the basis of the experience which manufacturers have built up over the years, it asks that the notified bodies be allowed to seek a scientific opinion from any recognised competent authority, and not just from EMEA. |
| --- | --- |

3.6.3.1

The EESC thinks that a deadline should be set for the evaluation, bearing in mind that in this sector an innovative product can very rapidly become obsolete. It also asks that a guide be drawn up regarding the specific responsibilities and procedures for evaluation by the competent authorities, in cooperation with the authorities responsible for the devices. Lastly, on the basis of the experience which manufacturers have built up over the years, it asks that the notified bodies be allowed to seek a scientific opinion from any recognised competent authority, and not just from EMEA.

| 3.6.4 | By their very nature, the way they act and the manufacturing techniques used, a large proportion of human tissue engineered products are more similar to medical devices than to drugs. In order to avoid possible legislative vacuums, the EESC thinks that such products should come under the present proposal, with the exception of those that act on or in the human body by primarily pharmacological, metabolic or immunological means. |
| --- | --- |

3.6.4

By their very nature, the way they act and the manufacturing techniques used, a large proportion of human tissue engineered products are more similar to medical devices than to drugs. In order to avoid possible legislative vacuums, the EESC thinks that such products should come under the present proposal, with the exception of those that act on or in the human body by primarily pharmacological, metabolic or immunological means.

| 3.6.5 | The EESC is against two directives (i.e. the Directive on medical devices and the Directive on personal protective equipment) simultaneously applying different requirements for the shared objective of protecting the user. It could complicate matters in practice and increase costs without bringing any benefits in terms of safety. |
| --- | --- |

3.6.5

The EESC is against two directives (i.e. the Directive on medical devices and the Directive on personal protective equipment) simultaneously applying different requirements for the shared objective of protecting the user. It could complicate matters in practice and increase costs without bringing any benefits in terms of safety.

| 3.6.6 | The EESC welcomes the new procedure based on comitology, added in Article 13, that paves the way for rapid, binding decisions on issues concerning the misinterpretation of a product as being or not being a medical device. It notes however that for an optimal result, the flow of information between the relevant authorities must be improved and data managed effectively by means of the European databank. |
| --- | --- |

3.6.6

The EESC welcomes the new procedure based on comitology, added in Article 13, that paves the way for rapid, binding decisions on issues concerning the misinterpretation of a product as being or not being a medical device. It notes however that for an optimal result, the flow of information between the relevant authorities must be improved and data managed effectively by means of the European databank.

3.7   Information and transparency

| 3.7.1 | The EESC believes that clearer and more wide-ranging provisions are needed for the collection and dissemination of information, and on coordination and communication with regard to surveillance activities. |
| --- | --- |

3.7.1

The EESC believes that clearer and more wide-ranging provisions are needed for the collection and dissemination of information, and on coordination and communication with regard to surveillance activities.

| 3.7.2 | It believes that the proposal is lacking in terms of the capacity of the notified bodies to carry out the tasks assigned to them. This shortcoming was already highlighted in the 2003 communication (11). New therapeutic advances and the growing complexity and sophistication of devices require scientific and technical expertise that cannot always be provided at national level. There should be a European plan or at least coordination to ensure that certain notified bodies are specialised in certain types of particularly complex and sophisticated products. |
| --- | --- |

3.7.2

It believes that the proposal is lacking in terms of the capacity of the notified bodies to carry out the tasks assigned to them. This shortcoming was already highlighted in the 2003 communication (11). New therapeutic advances and the growing complexity and sophistication of devices require scientific and technical expertise that cannot always be provided at national level. There should be a European plan or at least coordination to ensure that certain notified bodies are specialised in certain types of particularly complex and sophisticated products.

| 3.7.3 | The EESC agrees on the need for every non-Community manufacturer to designate an authorised representative in an EU Member State to act on their behalf and to respond to the authorities with respect to the obligations arising from this directive. There are gaps and inconsistencies in the text, however, and clarifications are necessary (see point 4.3 below). In principle, the EESC is in favour of a flexible system allowing real freedom of choice for the industry. |
| --- | --- |

3.7.3

The EESC agrees on the need for every non-Community manufacturer to designate an authorised representative in an EU Member State to act on their behalf and to respond to the authorities with respect to the obligations arising from this directive. There are gaps and inconsistencies in the text, however, and clarifications are necessary (see point 4.3 below). In principle, the EESC is in favour of a flexible system allowing real freedom of choice for the industry.

| 3.7.4 | The EESC believes that it should be compulsory rather than optional to send all information relating to registration, clinical data, certificates and vigilance (including serious undesired effects and events) to the EUDAMED European databank, which is already operating but in limited fields. Its duties should be redefined as soon as possible, in particular as regards the provision of non-confidential information for interested operators, and it should be endowed with appropriate facilities and resources. |
| --- | --- |

3.7.4

The EESC believes that it should be compulsory rather than optional to send all information relating to registration, clinical data, certificates and vigilance (including serious undesired effects and events) to the EUDAMED European databank, which is already operating but in limited fields. Its duties should be redefined as soon as possible, in particular as regards the provision of non-confidential information for interested operators, and it should be endowed with appropriate facilities and resources.

| 3.7.4.1 | A reasonable amount of non-confidential information, in a concise form, should be made available to the stakeholders directly concerned. Information on product safety and quality and on post-marketing surveillance should also be made available to health operator associations, to enable them to use the medical devices more knowledgeably and safely. |
| --- | --- |

3.7.4.1

A reasonable amount of non-confidential information, in a concise form, should be made available to the stakeholders directly concerned. Information on product safety and quality and on post-marketing surveillance should also be made available to health operator associations, to enable them to use the medical devices more knowledgeably and safely.

| 3.7.4.2 | The EESC also thinks that a guide should be drawn up, in cooperation with stakeholders, whereby the operators responsible can compile and publish a summary of product characteristics. This guide, and the information collected and validated with respect to vigilance, should be made available to notified bodies and competent authorities. Appropriate means should also be found for securing wider circulation of this information. |
| --- | --- |

3.7.4.2

The EESC also thinks that a guide should be drawn up, in cooperation with stakeholders, whereby the operators responsible can compile and publish a summary of product characteristics. This guide, and the information collected and validated with respect to vigilance, should be made available to notified bodies and competent authorities. Appropriate means should also be found for securing wider circulation of this information.

| 3.7.5 | The proposal allows the instructions for use to be provided in non-leaflet form. This is in tune with operators' demands, particularly given the wide range of medical device types. There should be more research into the possibilities of using electronic instruments (such as CD-ROMs and the Internet), using a simpler and more flexible procedure than the current one, so as not to require a qualified majority of Member States. |
| --- | --- |

3.7.5

The proposal allows the instructions for use to be provided in non-leaflet form. This is in tune with operators' demands, particularly given the wide range of medical device types. There should be more research into the possibilities of using electronic instruments (such as CD-ROMs and the Internet), using a simpler and more flexible procedure than the current one, so as not to require a qualified majority of Member States.

| 3.7.6 | The EESC thinks that the directive should explicitly mention the MedDev guidance documents drawn up by ad hoc working groups and issued by the Commission. Simplified arrangements for their approval should be introduced, so as to reduce problems of interpretation and encourage greater harmonisation in the practices of manufacturers and notified bodies. |
| --- | --- |

3.7.6

The EESC thinks that the directive should explicitly mention the MedDev guidance documents drawn up by ad hoc working groups and issued by the Commission. Simplified arrangements for their approval should be introduced, so as to reduce problems of interpretation and encourage greater harmonisation in the practices of manufacturers and notified bodies.

3.8   Safety

| 3.8.1 | The post-market surveillance system is well defined in the proposal as regards the manufacturer, but the role and responsibilities of health operators are not made clear. The system for disseminating information and results arising from the surveillance mechanisms is still unsatisfactory, as it is still too nationally-oriented and is in need of a more European dimension. |
| --- | --- |

3.8.1

The post-market surveillance system is well defined in the proposal as regards the manufacturer, but the role and responsibilities of health operators are not made clear. The system for disseminating information and results arising from the surveillance mechanisms is still unsatisfactory, as it is still too nationally-oriented and is in need of a more European dimension.

| 3.8.2 | The EESC welcomes the changes relating to Annex X on clinical data, concerning the safety and performance of a device. It recommends that the article be further clarified as regards the point at which clinical research may begin, once the relevant ethics committee has given its authorisation in accordance with the classification of the device. |
| --- | --- |

3.8.2

The EESC welcomes the changes relating to Annex X on clinical data, concerning the safety and performance of a device. It recommends that the article be further clarified as regards the point at which clinical research may begin, once the relevant ethics committee has given its authorisation in accordance with the classification of the device.

| 3.8.3 | The EESC is against the exclusion of ‘reprocessing’ from the proposed text. The re-use of medical devices designed and produced to be used only once, which has already been outlawed in certain Member States, does not provide an adequate guarantee of patient safety, as the reliability and safety tests that led to the authorisation of the single-use product have not been carried out. |
| --- | --- |

3.8.3

The EESC is against the exclusion of ‘reprocessing’ from the proposed text. The re-use of medical devices designed and produced to be used only once, which has already been outlawed in certain Member States, does not provide an adequate guarantee of patient safety, as the reliability and safety tests that led to the authorisation of the single-use product have not been carried out.

| 3.8.3.1 | This is a frequent practice in hospitals in various Member States. However, the EESC thinks that it should be outlawed, as it poses a danger to patient health and makes it difficult to determine liability. Sterilisation does not give a full guarantee of safety, not least because the structural characteristics of the materials used may be altered. |
| --- | --- |

3.8.3.1

This is a frequent practice in hospitals in various Member States. However, the EESC thinks that it should be outlawed, as it poses a danger to patient health and makes it difficult to determine liability. Sterilisation does not give a full guarantee of safety, not least because the structural characteristics of the materials used may be altered.

| 3.8.3.2 | The EESC is aware that this is a matter of national responsibility, but thinks that action at EU level is needed if only because the free movement of citizens and the recent recognition of the possibility of receiving care in another Member State bring a need for practices to be universally accepted. As a transitional step, the principle could be established that the reprocessing company should at least be required to submit a set of data in line with the classification of the medical device and the type of operation conducted, in order to provide similar guarantees of quality and safety to those that apply to the original product; at the same time, users and patients should be clearly informed of the situation. |
| --- | --- |

3.8.3.2

The EESC is aware that this is a matter of national responsibility, but thinks that action at EU level is needed if only because the free movement of citizens and the recent recognition of the possibility of receiving care in another Member State bring a need for practices to be universally accepted. As a transitional step, the principle could be established that the reprocessing company should at least be required to submit a set of data in line with the classification of the medical device and the type of operation conducted, in order to provide similar guarantees of quality and safety to those that apply to the original product; at the same time, users and patients should be clearly informed of the situation.

| 3.8.4 | The EESC fully agrees with the clarifications proposed for conformity assessment and the obligation to submit design documentation for the medical device, in line with the classification of the device and the novelty of the technology or treatment involved. It also agrees on the need for the manufacturer to apply adequate controls to any third parties it uses for design and manufacture. |
| --- | --- |

3.8.4

The EESC fully agrees with the clarifications proposed for conformity assessment and the obligation to submit design documentation for the medical device, in line with the classification of the device and the novelty of the technology or treatment involved. It also agrees on the need for the manufacturer to apply adequate controls to any third parties it uses for design and manufacture.

4.   Comments on specific articles

4.1   Clarity of scope

| 4.1.1 | The EESC feels that it is inconsistent with the principle of simplification and legal certainty to apply two separate directives to the same product, as is now being proposed for medical devices and personal protective equipment. It therefore calls for the original text of Article 1(6) of Directive 93/42/EEC to be re-instated. |
| --- | --- |

4.1.1

The EESC feels that it is inconsistent with the principle of simplification and legal certainty to apply two separate directives to the same product, as is now being proposed for medical devices and personal protective equipment. It therefore calls for the original text of Article 1(6) of Directive 93/42/EEC to be re-instated.

| 4.1.2 | Broadly speaking, the EESC feels that in the case of a medical device which could come under the definition of other directives (pharmaceuticals, cosmetic products, etc.), it should be specified that when deciding the applicable directive, the competent authorities and bodies must take account of the principal intended purpose of the product and the relevant mechanism of action. |
| --- | --- |

4.1.2

Broadly speaking, the EESC feels that in the case of a medical device which could come under the definition of other directives (pharmaceuticals, cosmetic products, etc.), it should be specified that when deciding the applicable directive, the competent authorities and bodies must take account of the principal intended purpose of the product and the relevant mechanism of action.

| 4.1.3 | In order to avoid any legal uncertainty, the EESC thinks that section 7.4 of Annex I should be amended (Translator's note: In the English version of the Commission document, the reference is to section 10). In particular, it should be made clear that if a medical device contains a substance which, considered separately, could be defined as a medicinal product, it is covered by the specific parts of pharmaceuticals legislation which refer to the safety and quality of the substance itself, and not by pharmaceuticals legislation in general. |
| --- | --- |

4.1.3

In order to avoid any legal uncertainty, the EESC thinks that section 7.4 of Annex I should be amended (Translator's note: In the English version of the Commission document, the reference is to section 10). In particular, it should be made clear that if a medical device contains a substance which, considered separately, could be defined as a medicinal product, it is covered by the specific parts of pharmaceuticals legislation which refer to the safety and quality of the substance itself, and not by pharmaceuticals legislation in general.

| 4.1.4 | In the case of medical devices which incorporate a product obtained through human tissue engineering, the EESC fears that the new paragraph 4b) does not resolve the difficulties of interpretation. Accordingly, the EESC would like these products to be explicitly defined in Article 1 in accordance with the directives in force and, in particular, with the regulation currently under discussion on advanced therapy medicinal products (12). |
| --- | --- |

4.1.4

In the case of medical devices which incorporate a product obtained through human tissue engineering, the EESC fears that the new paragraph 4b) does not resolve the difficulties of interpretation. Accordingly, the EESC would like these products to be explicitly defined in Article 1 in accordance with the directives in force and, in particular, with the regulation currently under discussion on advanced therapy medicinal products (12).

4.2   Information and the European databank

| 4.2.1 | The EESC thinks that it should be obligatory for the various competent authorities and bodies, and for manufacturers or representatives, to send the relevant data, including clinical data and reporting of serious adverse and unexpected effects, to the EUDAMED European databank. However, for this collection of data to be effective, it will be necessary to redefine the duties of EUDAMED and establish an implementing programme that ensures it is appropriately structured and resourced. |
| --- | --- |

4.2.1

The EESC thinks that it should be obligatory for the various competent authorities and bodies, and for manufacturers or representatives, to send the relevant data, including clinical data and reporting of serious adverse and unexpected effects, to the EUDAMED European databank. However, for this collection of data to be effective, it will be necessary to redefine the duties of EUDAMED and establish an implementing programme that ensures it is appropriately structured and resourced.

| 4.2.2 | In order to ensure the completeness of the data collected, and wider dissemination of relevant non-confidential information, the EESC thinks that a number of points in the proposal should be modified, in particular:






  — | the seventh ‘whereas’ clause, so as to make centralisation of data on clinical investigations obligatory; |
| --- | --- | --- |

4.2.2

In order to ensure the completeness of the data collected, and wider dissemination of relevant non-confidential information, the EESC thinks that a number of points in the proposal should be modified, in particular:

—

the seventh ‘whereas’ clause, so as to make centralisation of data on clinical investigations obligatory;

| — | Article 10a of Directive 90/385/EEC, so as to make the sending of information on manufacturers and representatives obligatory; Article 10b of the same directive, on regulatory data; and Article 11(5) of that directive, on the certificates issued; |
| --- | --- |

—

Article 10a of Directive 90/385/EEC, so as to make the sending of information on manufacturers and representatives obligatory; Article 10b of the same directive, on regulatory data; and Article 11(5) of that directive, on the certificates issued;

| — | Article 16(5) of Directive 93/42/EEC, on the certificates issued. |
| --- | --- |

—

Article 16(5) of Directive 93/42/EEC, on the certificates issued.

| 4.2.3 | The EESC would also like Article 20(3) to be amended, so as to enshrine the principle that non-confidential information should be made available to users, in summary form, involving manufacturers and representatives as well as the relevant authorities and bodies. |
| --- | --- |

4.2.3

The EESC would also like Article 20(3) to be amended, so as to enshrine the principle that non-confidential information should be made available to users, in summary form, involving manufacturers and representatives as well as the relevant authorities and bodies.

4.3   Representative

| 4.3.1 | The EESC notes an inconsistency in the definition of the representative of a manufacturer who does not have a registered place of business in the Community. In the 14th ‘whereas’ clause, the reference is to a single individual person for all classes of devices, while Article 10a(3) and Article 14(2) do not specify whether all or only some categories of device are involved. |
| --- | --- |

4.3.1

The EESC notes an inconsistency in the definition of the representative of a manufacturer who does not have a registered place of business in the Community. In the 14th ‘whereas’ clause, the reference is to a single individual person for all classes of devices, while Article 10a(3) and Article 14(2) do not specify whether all or only some categories of device are involved.

| 4.3.2 | Bearing in mind the wide range of medical devices which a manufacturer might place on the market, the EESC calls for greater flexibility: a single representative could thus be designated for each type of product and not necessarily for the whole production range (while also making it clear in the different language versions that in legal terms this refers to both natural and legal persons). |
| --- | --- |

4.3.2

Bearing in mind the wide range of medical devices which a manufacturer might place on the market, the EESC calls for greater flexibility: a single representative could thus be designated for each type of product and not necessarily for the whole production range (while also making it clear in the different language versions that in legal terms this refers to both natural and legal persons).

4.4   Clinical investigations

| 4.4.1 | Provisions on information for the competent authorities to facilitate the monitoring and management of clinical investigation data should be included in Article 2(2), and should specify that the manufacturer or his representative must inform the authorities of all Member States where these investigations are conducted, of the suspension, interruption or end of the investigations, with appropriate explanations. |
| --- | --- |

4.4.1

Provisions on information for the competent authorities to facilitate the monitoring and management of clinical investigation data should be included in Article 2(2), and should specify that the manufacturer or his representative must inform the authorities of all Member States where these investigations are conducted, of the suspension, interruption or end of the investigations, with appropriate explanations.

| 4.4.2 | The EESC welcomes the new wording of Article 15(2) and (3). However, it wonders whether it might be advisable to specify in Article 15(3) that for Class I devices the clinical investigations can start as soon as the relevant ethics committee has delivered its favourable opinion on the investigation plan. |
| --- | --- |

4.4.2

The EESC welcomes the new wording of Article 15(2) and (3). However, it wonders whether it might be advisable to specify in Article 15(3) that for Class I devices the clinical investigations can start as soon as the relevant ethics committee has delivered its favourable opinion on the investigation plan.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  OJ L 189, 20.7.1990.

1

(2)  OJ L 169, 12.7.1993, last amended by Regulation (EC) No 1882/2003 (OJ L 284, 31.10.2003).

2

(3)  COM(2003) 386 in OJ C 96, 21.4.2004.

3

(4)  ‘Notified bodies’ are the bodies to which manufacturers must submit their documentation in order to receive, as appropriate, either a certificate of conformity as required under the directive, or marketing authorisation. There may be more than one such organisation per Member State and they may specialise in different areas.

4

(5)  This consultation took place from 11 May 2005 to 25 June 2005.

5

(6)  Regulated by Directive 2001/83/EC in OJ L 311, 28.11.2001, as last amended by Directive 2004/27/EC, in OJ L 136, 30.4.2004.

6

(7)  Regulated by Directive 2002/98/EC of 23.1.2003.

7

(8)  This refers to Regulation No 726/2004 and the proposal currently under discussion on medicines for advanced therapies on which the EESC has begun preparing its opinion.

8

(9)  Directive 98/79/EC.

9

(10)  Directive 98/8/EC in OJ L 123, 24.4.1998, as last modified by Regulation (EC) No 1882/2003.

10

(11)  See COM (2003) 386 of 2.7.2003, cit.

11

(12)  COM(2005) 567 final – Proposal for a Regulation of the European Parliament and of the Council on advanced therapy medicinal products and amending Directive 2001/83/EC and Regulation (EC) No 726/2004.

12

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/19 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/19

---

Opinion of the European Economic and Social Committee on the Proposal for a Council Directive on the exemption from taxes of imports of small consignments of goods of a non-commercial character from third countries (codified version)

(COM(2006) 12 final — 2006/0007 (CNS))

(2006/C 195/05)

On 14 February 2006 the Council decided to consult the European Economic and Social Committee, under Article 93 of the Treaty establishing the European Community, on the abovementioned proposal.

The Section for the Single Market, Production and Consumption, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 25 April 2006. The rapporteur was Mr Danusēvičs.

At its 427th plenary session, held on 17 and 18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 132 votes to 1 with 2 abstentions.

| 1. | The purpose of the proposal is to codify Council Directive 78/1035/EEC of 19 December 1978 on the exemption from taxes of imports of small consignments of goods of a non-commercial character from third countries. The new directive will supersede the various acts incorporated in it; it fully preserves the contents of the acts and does no more than bring them together with only such formal amendments as are required by the codification exercise itself. |
| --- | --- |

1.

The purpose of the proposal is to codify Council Directive 78/1035/EEC of 19 December 1978 on the exemption from taxes of imports of small consignments of goods of a non-commercial character from third countries. The new directive will supersede the various acts incorporated in it; it fully preserves the contents of the acts and does no more than bring them together with only such formal amendments as are required by the codification exercise itself.

| 2. | The Committee can only endorse the general codification of Community provisions undertaken by the Commission on the basis of the decision adopted on 1 April 1987 and confirmed in the conclusions of the Edinburgh summit. It therefore approves the proposed directive, as it has already done for similar initiatives on other occasions. |
| --- | --- |

2.

The Committee can only endorse the general codification of Community provisions undertaken by the Commission on the basis of the decision adopted on 1 April 1987 and confirmed in the conclusions of the Edinburgh summit. It therefore approves the proposed directive, as it has already done for similar initiatives on other occasions.

| 3. | The Committee notes that, in accordance with the interinstitutional agreement of 20 December 1994 between the European Parliament, the Council and the Commission, no changes of substance may be made in the codification. The Commission guarantees to respect this condition in the text of the proposed directive. |
| --- | --- |

3.

The Committee notes that, in accordance with the interinstitutional agreement of 20 December 1994 between the European Parliament, the Council and the Commission, no changes of substance may be made in the codification. The Commission guarantees to respect this condition in the text of the proposed directive.

| 4. | The consultative role of the EESC and its sense of responsible mean that it must check the amendments before approving the document. The rapporteur has done this and finds no grounds for criticism or specific comment. |
| --- | --- |

4.

The consultative role of the EESC and its sense of responsible mean that it must check the amendments before approving the document. The rapporteur has done this and finds no grounds for criticism or specific comment.

| 5. | The Committee supports the proposed codification which is part of the simplification and clarification of European law. |
| --- | --- |

5.

The Committee supports the proposed codification which is part of the simplification and clarification of European law.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/20 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/20

---

Opinion of the European Economic and Social Committee on the Revised proposal for a Regulation of the European Parliament and of the Council on public passenger transport services by rail and by road

(COM(2005) 319 final — 2000/0212 (COD))

(2006/C 195/06)

On 30 September 2005 the Council decided to consult the European Economic and Social Committee, under Articles 71 and 89 of the Treaty establishing the European Community, on the abovementioned proposal.

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 2 May 2006. The rapporteur was Mr Buffetaut and the co-rapporteur was Mr Ott.

At its 427th plenary session, held on 17 and 18 May 2006 (meeting of 18 May), the European Economic and Social Committee adopted the following opinion by 63 votes to one with 12 abstentions.

1.   Conclusions and recommendations

| 1.1 | The European Economic and Social Committee feels that the proposal for a regulation on public passenger transport services by rail and road submitted by the Commission is an improvement on previous versions in terms of the option for direct award of contracts. |
| --- | --- |

1.1

The European Economic and Social Committee feels that the proposal for a regulation on public passenger transport services by rail and road submitted by the Commission is an improvement on previous versions in terms of the option for direct award of contracts.

| 1.2 | However, in order to achieve the objective of legal security desired by organising authorities and operators, certain points still need to be clarified:






  — | specific implementation of the geographical limitation on public transport activity and specific clauses on non-distortion of competition in the event of direct award to a local government-controlled operator; |
| --- | --- | --- |

1.2

However, in order to achieve the objective of legal security desired by organising authorities and operators, certain points still need to be clarified:

—

specific implementation of the geographical limitation on public transport activity and specific clauses on non-distortion of competition in the event of direct award to a local government-controlled operator;

| — | derogation from the general principles for the direct award of rail transport contracts, which seems legally unjustified and which should at least be better managed; |
| --- | --- |

—

derogation from the general principles for the direct award of rail transport contracts, which seems legally unjustified and which should at least be better managed;

| — | a return to the spirit of the proposal for a regulation of February 2002 (1) with regard to the quality of service and compliance with social legislation, without calling the subsidiarity principle into question; |
| --- | --- |

—

a return to the spirit of the proposal for a regulation of February 2002 (1) with regard to the quality of service and compliance with social legislation, without calling the subsidiarity principle into question;

| — | clarification of the reciprocity system during the transitional period; |
| --- | --- |

—

clarification of the reciprocity system during the transitional period;

| — | possibility of extending the duration of contracts, on an exceptional basis, beyond the limits originally set when the investment burden or amortisation periods warrant this; |
| --- | --- |

—

possibility of extending the duration of contracts, on an exceptional basis, beyond the limits originally set when the investment burden or amortisation periods warrant this;

| — | clearer definition of regional and long-distance transport; |
| --- | --- |

—

clearer definition of regional and long-distance transport;

| — | application of the regulation to all public transport contracts involving public service obligations or granting exclusive rights; |
| --- | --- |

—

application of the regulation to all public transport contracts involving public service obligations or granting exclusive rights;

| — | confirmation of the precedence of the regulation over public procurement law when the operator assumes a risk. |
| --- | --- |

—

confirmation of the precedence of the regulation over public procurement law when the operator assumes a risk.

| 1.3 | In that context the Committee expressly endorses the obligation to draw up contracts and the balance struck between the competitive tendering and direct award options as conducive to the necessary transparency and improved quality of services within a competitive system. |
| --- | --- |

1.3

In that context the Committee expressly endorses the obligation to draw up contracts and the balance struck between the competitive tendering and direct award options as conducive to the necessary transparency and improved quality of services within a competitive system.

| 1.4 | The Committee would like to see the provisions of the regulation apply to all public service transport contracts. |
| --- | --- |

1.4

The Committee would like to see the provisions of the regulation apply to all public service transport contracts.

| 1.5 | In the context of the balance struck between competitive tendering and direct award to an internal operator the Committee declares itself in favour of restricting activity to a particular area to prevent distortions of competition and safeguard freedom of choice for local authorities and fair conditions for controlled competition. |
| --- | --- |

1.5

In the context of the balance struck between competitive tendering and direct award to an internal operator the Committee declares itself in favour of restricting activity to a particular area to prevent distortions of competition and safeguard freedom of choice for local authorities and fair conditions for controlled competition.

| 1.6 | In the event of direct award to an internal operator, the Committee would like to see a clearly defined and controlled margin of flexibility retained, where, in the interests of the unity of the networks and the integration of transport services, services need to be extended to neighbouring and/or adjacent areas administered by a different authority from that which awarded the public service transport contract. |
| --- | --- |

1.6

In the event of direct award to an internal operator, the Committee would like to see a clearly defined and controlled margin of flexibility retained, where, in the interests of the unity of the networks and the integration of transport services, services need to be extended to neighbouring and/or adjacent areas administered by a different authority from that which awarded the public service transport contract.

| 1.7 | The Committee feels that derogations for minor contracts and in order to ensure the continuity of services are warranted. |
| --- | --- |

1.7

The Committee feels that derogations for minor contracts and in order to ensure the continuity of services are warranted.

| 1.8 | The Committee questions the option of direct award of public service rail transport contracts both to traditional and new operators, without laying down any precise rules ensuring fair competition of the kind applied to internal operators, thus giving rise to legal uncertainty and distortions of competition. |
| --- | --- |

1.8

The Committee questions the option of direct award of public service rail transport contracts both to traditional and new operators, without laying down any precise rules ensuring fair competition of the kind applied to internal operators, thus giving rise to legal uncertainty and distortions of competition.

| 1.9 | The Committee considers that the principles of transparency, equal treatment and quality and efficiency of public rail transport can be better guaranteed only if the same rules are applied as to local road transport. |
| --- | --- |

1.9

The Committee considers that the principles of transparency, equal treatment and quality and efficiency of public rail transport can be better guaranteed only if the same rules are applied as to local road transport.

| 1.10 | The Committee calls for a return to the spirit of the 2002 proposal for a regulation with regard to service quality and compliance with the social legislation in force in the Member States. |
| --- | --- |

1.10

The Committee calls for a return to the spirit of the 2002 proposal for a regulation with regard to service quality and compliance with the social legislation in force in the Member States.

| 1.11 | This apart, the EESC would welcome speedy adoption of the regulation, which is necessary to ensure legal certainty within the sector. |
| --- | --- |

1.11

This apart, the EESC would welcome speedy adoption of the regulation, which is necessary to ensure legal certainty within the sector.

2.   Introduction

| 2.1 | The European Commission has published a new proposal for a regulation on public service obligations with regard to public road and rail passenger transport services. The document in question is the third version. |
| --- | --- |

2.1

The European Commission has published a new proposal for a regulation on public service obligations with regard to public road and rail passenger transport services. The document in question is the third version.

| 2.2 | The EESC welcomes the Commission's work, which enables discussions — previously blocked at institutional level — to be re-launched. |
| --- | --- |

2.2

The EESC welcomes the Commission's work, which enables discussions — previously blocked at institutional level — to be re-launched.

| 2.3 | The proposed text is intended to reconcile the varying positions voiced in previous discussions in the light of recent developments in case law, particularly the Altmark Trans judgment, and to address concerns about compliance with the principles of subsidiarity and of administrative freedom for public authorities. |
| --- | --- |

2.3

The proposed text is intended to reconcile the varying positions voiced in previous discussions in the light of recent developments in case law, particularly the Altmark Trans judgment, and to address concerns about compliance with the principles of subsidiarity and of administrative freedom for public authorities.

| 2.4 | It is very different from and simpler than the previous version. However, in order not to prolong the legislative procedure, the Parliament decided to treat it as a revised version of the same text and to examine it at second reading. The proposal is therefore now before the Council of Ministers, which has just begun its examination and has decided to study its correlation with the third rail package, particularly with regard to the opening-up of international traffic and the possibility of cabotage (2). |
| --- | --- |

2.4

It is very different from and simpler than the previous version. However, in order not to prolong the legislative procedure, the Parliament decided to treat it as a revised version of the same text and to examine it at second reading. The proposal is therefore now before the Council of Ministers, which has just begun its examination and has decided to study its correlation with the third rail package, particularly with regard to the opening-up of international traffic and the possibility of cabotage (2).

| 2.5 | The Commission considers that the current legislative framework, which dates from 1969, is outdated and that the efficiency and quality of modes of transport must be improved in order to maintain or increase their market share. It would like to regulate competition, including for regions and towns, in order to ensure transparency in the way in which public service contracts are awarded and executed (3). In its 2001 opinion on the previous proposal for a regulation the EESC welcomed ‘the Commission's intention of introducing a market regime for public passenger transport based on controlled rather than full competition’ (4). |
| --- | --- |

2.5

The Commission considers that the current legislative framework, which dates from 1969, is outdated and that the efficiency and quality of modes of transport must be improved in order to maintain or increase their market share. It would like to regulate competition, including for regions and towns, in order to ensure transparency in the way in which public service contracts are awarded and executed (3). In its 2001 opinion on the previous proposal for a regulation the EESC welcomed ‘the Commission's intention of introducing a market regime for public passenger transport based on controlled rather than full competition’ (4).

| 2.6 | It also noted with satisfaction that ‘henceforth equality of opportunity and competition between all types of enterprise, irrespective of their legal form, will be achieved through legal and accounting transparency’ (5). |
| --- | --- |

2.6

It also noted with satisfaction that ‘henceforth equality of opportunity and competition between all types of enterprise, irrespective of their legal form, will be achieved through legal and accounting transparency’ (5).

| 2.7 | At the present moment, given that the proposal for a regulation is to be discussed by the European Parliament at a second reading, the EESC can only reiterate its desire for transparency, equal opportunities and controlled competition in public road and rail passenger transport management procedures, in compliance with the neutrality principle of Article 295 of the Treaty. |
| --- | --- |

2.7

At the present moment, given that the proposal for a regulation is to be discussed by the European Parliament at a second reading, the EESC can only reiterate its desire for transparency, equal opportunities and controlled competition in public road and rail passenger transport management procedures, in compliance with the neutrality principle of Article 295 of the Treaty.

| 2.8 | In that connection the recent case law of the European Court of Justice, especially the Altmark Trans and Stadt Halle judgments, has helped to clarify the issue. In exercising its right of initiative, the Commission is not bound by the doctrine of case law, the legal system of the European Union being mainly based on written law rather than the decisions of the courts. In practice, the proposal for a regulation incorporates the principles of the three main criteria identified in the Altmark Trans judgment (Article 4). Aspects of the fourth criterion can be found in point 7 of the annex. |
| --- | --- |

2.8

In that connection the recent case law of the European Court of Justice, especially the Altmark Trans and Stadt Halle judgments, has helped to clarify the issue. In exercising its right of initiative, the Commission is not bound by the doctrine of case law, the legal system of the European Union being mainly based on written law rather than the decisions of the courts. In practice, the proposal for a regulation incorporates the principles of the three main criteria identified in the Altmark Trans judgment (Article 4). Aspects of the fourth criterion can be found in point 7 of the annex.

| 2.9 | It should be pointed out that the Altmark Trans judgment defined the criteria ensuring that compensation of public service obligations is not legally classified as state aid. The proposal for a regulation is broader in scope and covers points not dealt with in the case law, such as the questions of the compatibility with competition rules of compensation legally classified as state aid and the grant of exclusive rights. In 1969 there was no transport market; the question of exclusive rights did not, therefore, arise. |
| --- | --- |

2.9

It should be pointed out that the Altmark Trans judgment defined the criteria ensuring that compensation of public service obligations is not legally classified as state aid. The proposal for a regulation is broader in scope and covers points not dealt with in the case law, such as the questions of the compatibility with competition rules of compensation legally classified as state aid and the grant of exclusive rights. In 1969 there was no transport market; the question of exclusive rights did not, therefore, arise.

3.   General comments

| 3.1 | The Committee welcomes the Commission's initiative but would like to raise a number of legal questions which merit discussion, and stresses how important it is that the new regulation should genuinely guarantee the legal security that the whole sector needs so badly in order to ensure rapid adoption and implementation. |
| --- | --- |

3.1

The Committee welcomes the Commission's initiative but would like to raise a number of legal questions which merit discussion, and stresses how important it is that the new regulation should genuinely guarantee the legal security that the whole sector needs so badly in order to ensure rapid adoption and implementation.

| 3.2 | The Committee welcomes the Commission's efforts to achieve a new balance in local transport which respects the local authorities' administrative freedom and is satisfactory for all stakeholders. |
| --- | --- |

3.2

The Committee welcomes the Commission's efforts to achieve a new balance in local transport which respects the local authorities' administrative freedom and is satisfactory for all stakeholders.

| 3.3 | It welcomes the fact that the local authorities are free either to put their transport services out to competitive tender, to provide the services themselves or via an internal operator, providing that precise criteria are met in order to prevent any distortion of competition. |
| --- | --- |

3.3

It welcomes the fact that the local authorities are free either to put their transport services out to competitive tender, to provide the services themselves or via an internal operator, providing that precise criteria are met in order to prevent any distortion of competition.

| 3.4 | The Committee reaffirms its support for the principle of controlled competition, rather than full competition, which has been incorporated in the new proposal for a regulation (Articles 3 and 5(3)). This principle seems to offer the best basis for reconciling public service needs with the need for a secure, harmonised framework of rules for the award of contracts. It reconciles public-service-related and commercial needs in the sector (irrespective of the legal status of the enterprises concerned). |
| --- | --- |

3.4

The Committee reaffirms its support for the principle of controlled competition, rather than full competition, which has been incorporated in the new proposal for a regulation (Articles 3 and 5(3)). This principle seems to offer the best basis for reconciling public service needs with the need for a secure, harmonised framework of rules for the award of contracts. It reconciles public-service-related and commercial needs in the sector (irrespective of the legal status of the enterprises concerned).

| 3.5 | The Committee considers that a competitive system offering the general use of contracts and freedom to choose between competitive tender or direct award is the best guarantee of improved public transport quality and efficiency. What will happen is that the organising authorities will need to establish clearly and in advance public service obligations, the areas concerned, the rules determining compensation and the arrangements for sharing costs and revenues, as well as arranging sufficient prior publicity. |
| --- | --- |

3.5

The Committee considers that a competitive system offering the general use of contracts and freedom to choose between competitive tender or direct award is the best guarantee of improved public transport quality and efficiency. What will happen is that the organising authorities will need to establish clearly and in advance public service obligations, the areas concerned, the rules determining compensation and the arrangements for sharing costs and revenues, as well as arranging sufficient prior publicity.

| 3.6 | At the same time, operators will have a clear understanding of the conditions which they operate under. |
| --- | --- |

3.6

At the same time, operators will have a clear understanding of the conditions which they operate under.

| 3.7 | In addition, the proposal envisages that ‘each competent authority shall publish once a year a detailed report on the public service obligations for which it is responsible, the selected operators and the compensation payments and exclusive rights granted to the said operators by way of reimbursement’ (Art. 7). This will enable members of the public to find out about the exact conditions under which public transport services operate, thus putting them in a position to question the quality and cost of the services provided to them. However, it must be ensured that the report does not unduly increase the administrative burden on local authorities and thus, by extension, on operators. Too much bureaucracy is not conducive to full information. |
| --- | --- |

3.7

In addition, the proposal envisages that ‘each competent authority shall publish once a year a detailed report on the public service obligations for which it is responsible, the selected operators and the compensation payments and exclusive rights granted to the said operators by way of reimbursement’ (Art. 7). This will enable members of the public to find out about the exact conditions under which public transport services operate, thus putting them in a position to question the quality and cost of the services provided to them. However, it must be ensured that the report does not unduly increase the administrative burden on local authorities and thus, by extension, on operators. Too much bureaucracy is not conducive to full information.

4.   Specific comments

4.1   The regulation and public procurement law

| 4.1.1 | The question of legal precedence arises, as there are two systems of law which can be applied to the sector. |
| --- | --- |

4.1.1

The question of legal precedence arises, as there are two systems of law which can be applied to the sector.

| 4.1.2 | At the first reading, in 2001, the European Parliament adopted an amendment requiring the future regulation to take precedence over public procurement law in order to create a clear and coherent legal framework. The solution proposed by the Commission is for the applicable law to be determined by the choice of the organising public authority.






  — | if there is a public service obligation and the operator takes on part of the risk, the regulation applies; |
| --- | --- | --- |

4.1.2

At the first reading, in 2001, the European Parliament adopted an amendment requiring the future regulation to take precedence over public procurement law in order to create a clear and coherent legal framework. The solution proposed by the Commission is for the applicable law to be determined by the choice of the organising public authority.

—

if there is a public service obligation and the operator takes on part of the risk, the regulation applies;

| — | if there is a straightforward tender, the public procurement directive applies to the procedure for putting contracts out to tender. |
| --- | --- |

—

if there is a straightforward tender, the public procurement directive applies to the procedure for putting contracts out to tender.

| 4.1.3 | On this point, the EESC believes that the provisions of the regulation should apply to all public service transport contracts, in line with the principles of transparency and equal treatment. This would be by far the simplest and clearest solution and would not call into question the freedom of the competent authorities to conclude contracts. |
| --- | --- |

4.1.3

On this point, the EESC believes that the provisions of the regulation should apply to all public service transport contracts, in line with the principles of transparency and equal treatment. This would be by far the simplest and clearest solution and would not call into question the freedom of the competent authorities to conclude contracts.

4.2   Direct award option

| 4.2.1 | Unlike the two previous versions, the proposal for the first time allows a public transport contract to be awarded to an internal operator directly without competitive tender (Article 5(2)). This innovation responds to the wish expressed in the previous debates that the local authorities' organisational freedom be preserved. |
| --- | --- |

4.2.1

Unlike the two previous versions, the proposal for the first time allows a public transport contract to be awarded to an internal operator directly without competitive tender (Article 5(2)). This innovation responds to the wish expressed in the previous debates that the local authorities' organisational freedom be preserved.

| 4.2.2 | There are a number of conditions for this:






  — | The services must be local. |
| --- | --- | --- |

4.2.2

There are a number of conditions for this:

—

The services must be local.

| — | The internal operator must not take part in competitive tenders organised outside the territory of the competent authority and must perform all its activity within the territory of the competent authority. This is in the spirit of the wish for competitive reciprocity expressed by the Parliament at the first reading (Amendment 61), in compliance with the principles of the Treaty. This is a logical and fair solution, as it would be unacceptable for a local-authority controlled operator enjoying protection from competition within its own territory to have the option of competing against other operators in territories open to competition. |
| --- | --- |

—

The internal operator must not take part in competitive tenders organised outside the territory of the competent authority and must perform all its activity within the territory of the competent authority. This is in the spirit of the wish for competitive reciprocity expressed by the Parliament at the first reading (Amendment 61), in compliance with the principles of the Treaty. This is a logical and fair solution, as it would be unacceptable for a local-authority controlled operator enjoying protection from competition within its own territory to have the option of competing against other operators in territories open to competition.

| — | Contracts may be awarded directly only to internal operators over which the competent authority exercises the kind of complete control it has over its own departments. However, the Commission has not taken complete account of the case law of the Court of Justice of the European Communities (Teckal judgment of 18.11.1999, Stadt Halle judgment of 11.1.2005 and Parking Brixen judgment of 13.10.2006). |
| --- | --- |

—

Contracts may be awarded directly only to internal operators over which the competent authority exercises the kind of complete control it has over its own departments. However, the Commission has not taken complete account of the case law of the Court of Justice of the European Communities (Teckal judgment of 18.11.1999, Stadt Halle judgment of 11.1.2005 and Parking Brixen judgment of 13.10.2006).

| 4.2.3 | At the first reading, the European Parliament came out clearly in favour of maintaining the option of direct award to a local operator controlled by the competent local authority alongside the competitive tender option. The discussions in the Council of Ministers have tended in the same direction, with most representatives of the Member States being in favour of the competent authorities retaining the freedom to provide local services themselves, using in-house enterprises, or to outsource them by competitive tender. |
| --- | --- |

4.2.3

At the first reading, the European Parliament came out clearly in favour of maintaining the option of direct award to a local operator controlled by the competent local authority alongside the competitive tender option. The discussions in the Council of Ministers have tended in the same direction, with most representatives of the Member States being in favour of the competent authorities retaining the freedom to provide local services themselves, using in-house enterprises, or to outsource them by competitive tender.

| 4.2.4 | The Commission has attempted to take account of this consensus and has therefore sought to strike a balance between controlled competition and the direct award option; the EESC endorses this approach as it preserves the administrative freedom of the organising public authorities while taking account of the principles set out by the ECJ. |
| --- | --- |

4.2.4

The Commission has attempted to take account of this consensus and has therefore sought to strike a balance between controlled competition and the direct award option; the EESC endorses this approach as it preserves the administrative freedom of the organising public authorities while taking account of the principles set out by the ECJ.

| 4.2.5 | It should be pointed out that the Commission has introduced a geographical demarcation criterion into the definition of internal operator in order to take account of the principle of competitive reciprocity advocated by the Parliament for local services provided under local government control, but in a form which complies with the Treaty. The application of this criterion raises two questions:






  — | Does this criterion refer to all transport services by internal operators as well as to those provided by sub-contractors? |
| --- | --- | --- |

4.2.5

It should be pointed out that the Commission has introduced a geographical demarcation criterion into the definition of internal operator in order to take account of the principle of competitive reciprocity advocated by the Parliament for local services provided under local government control, but in a form which complies with the Treaty. The application of this criterion raises two questions:

—

Does this criterion refer to all transport services by internal operators as well as to those provided by sub-contractors?

| — | What happens when routes continue beyond the limits of the area for which the competent organising authority is responsible? Should routes be curtailed or should specific rules be applied in these cases? In this context the EESC considers that the territorial competence criterion should be relaxed. The services concerned could be of interest to areas for which different competent authorities are responsible, where this is necessary to ensure the unity of the network and the integration of transport services in areas which border on/are adjacent to that of the authority which awarded the public service transport contract. |
| --- | --- |

—

What happens when routes continue beyond the limits of the area for which the competent organising authority is responsible? Should routes be curtailed or should specific rules be applied in these cases? In this context the EESC considers that the territorial competence criterion should be relaxed. The services concerned could be of interest to areas for which different competent authorities are responsible, where this is necessary to ensure the unity of the network and the integration of transport services in areas which border on/are adjacent to that of the authority which awarded the public service transport contract.

| 4.2.6 | Provision should be made for the possibility that, in order to ensure the unity of the network and the integration of transport services in areas which border on/are adjacent to that of the authority which awarded the public service contract, services operated by the organising authority itself or by an internal operator may also be of use to areas for which different competent authorities are responsible. In order to prevent this option being used to circumvent the principle of non-distortion of competition, it would be necessary to stipulate that services provided outside the area of territorial competence of the organising authority must not exceed a certain percentage of the value of the main contract. |
| --- | --- |

4.2.6

Provision should be made for the possibility that, in order to ensure the unity of the network and the integration of transport services in areas which border on/are adjacent to that of the authority which awarded the public service contract, services operated by the organising authority itself or by an internal operator may also be of use to areas for which different competent authorities are responsible. In order to prevent this option being used to circumvent the principle of non-distortion of competition, it would be necessary to stipulate that services provided outside the area of territorial competence of the organising authority must not exceed a certain percentage of the value of the main contract.

| 4.2.7 | It should be made possible for the internal operators of several local authorities to cooperate, particularly in relation to research and development; otherwise they would become structurally less efficient than their potential competitors, which would not have the same limitations. |
| --- | --- |

4.2.7

It should be made possible for the internal operators of several local authorities to cooperate, particularly in relation to research and development; otherwise they would become structurally less efficient than their potential competitors, which would not have the same limitations.

| 4.2.8 | It will be necessary to clarify these points in terms of both legal certainty and the practical organisation of services. The criteria established by the case law of the European Court of Justice (Stadt Halle case of 11.1.2005) for defining an internal operator leave some room for doubt, e.g. the phrase ‘factors such as’, which suggests that the list of criteria is not exhaustive. However, recent case law (Parking Brixen case of 13.10.2005) once again underlines that the criterion of control similar to that exercised over the authority's own departments is fundamental. |
| --- | --- |

4.2.8

It will be necessary to clarify these points in terms of both legal certainty and the practical organisation of services. The criteria established by the case law of the European Court of Justice (Stadt Halle case of 11.1.2005) for defining an internal operator leave some room for doubt, e.g. the phrase ‘factors such as’, which suggests that the list of criteria is not exhaustive. However, recent case law (Parking Brixen case of 13.10.2005) once again underlines that the criterion of control similar to that exercised over the authority's own departments is fundamental.

| 4.2.9 | Finally, it is surprising that strictly defined conditions apply to the general case of direct award to an internal operator, whilst the specific exception to the principles of the regulation, concerning direct award to a rail operator, is not subject to any conditions; no reason for this is given in the explanatory memorandum. |
| --- | --- |

4.2.9

Finally, it is surprising that strictly defined conditions apply to the general case of direct award to an internal operator, whilst the specific exception to the principles of the regulation, concerning direct award to a rail operator, is not subject to any conditions; no reason for this is given in the explanatory memorandum.

4.3   Competitive tender

| 4.3.1 | Apart from award to an internal operator, the proposal also provides for recourse to competitive tender. There are three derogations from the tendering obligation:






  — | for minor contracts, |
| --- | --- | --- |

4.3.1

Apart from award to an internal operator, the proposal also provides for recourse to competitive tender. There are three derogations from the tendering obligation:

—

for minor contracts,

| — | to ensure continuity of public services in the event of disruption of services or the immediate risk of such a situation, |
| --- | --- |

—

to ensure continuity of public services in the event of disruption of services or the immediate risk of such a situation,

| — | for public service contracts concerning regional or long-distance transport by rail. |
| --- | --- |

—

for public service contracts concerning regional or long-distance transport by rail.

| 4.3.2 | The EESC considers that the first two derogations are justified in principle, although the criteria used to define minor contracts are debatable. The third derogation on the other hand raises several questions. Partly because of the size of the sector concerned (turnover of about EUR 50 billion), partly because the award conditions are — in contrast to conditions for award to an internal operator — not particularly stringent, even though Article 7 contains useful provisions for publicity measures, and partly because rail transport is not a sector whose nature warrants its being permanently closed to competition, unless it is subject to provisions similar to those set out in Article 5(2) of the proposal for a regulation. |
| --- | --- |

4.3.2

The EESC considers that the first two derogations are justified in principle, although the criteria used to define minor contracts are debatable. The third derogation on the other hand raises several questions. Partly because of the size of the sector concerned (turnover of about EUR 50 billion), partly because the award conditions are — in contrast to conditions for award to an internal operator — not particularly stringent, even though Article 7 contains useful provisions for publicity measures, and partly because rail transport is not a sector whose nature warrants its being permanently closed to competition, unless it is subject to provisions similar to those set out in Article 5(2) of the proposal for a regulation.

| 4.3.3 | It may be asserted that transparency, the principle of equal opportunities and the interests of users and operators would be better served by means of controlled tendering procedures, and that the approach adopted, probably as the result of a political compromise, rather unbalances the text in terms of its legal coherence. |
| --- | --- |

4.3.3

It may be asserted that transparency, the principle of equal opportunities and the interests of users and operators would be better served by means of controlled tendering procedures, and that the approach adopted, probably as the result of a political compromise, rather unbalances the text in terms of its legal coherence.

4.4   Compensation for public service obligations

| 4.4.1 | Article 6 of the proposal for a regulation refers to Article 4, which is based in part on the criteria of the Altmark Trans judgment. Any compensation, however it is assigned, must conform with these provisions. In the case of directly awarded contracts, compensation must also comply with the rules set out in the annex, which state that, to calculate the amount of the compensation, the situation of direct service provision must be compared with that of a service provided under market conditions if the obligation had not been met. |
| --- | --- |

4.4.1

Article 6 of the proposal for a regulation refers to Article 4, which is based in part on the criteria of the Altmark Trans judgment. Any compensation, however it is assigned, must conform with these provisions. In the case of directly awarded contracts, compensation must also comply with the rules set out in the annex, which state that, to calculate the amount of the compensation, the situation of direct service provision must be compared with that of a service provided under market conditions if the obligation had not been met.

| 4.4.2 | The text thus distinguishes between two situations:






  — | if there is competitive tender, the compensation of public service obligations reflects the spirit of the first three conditions set out it the Altmark Trans judgment; |
| --- | --- | --- |

4.4.2

The text thus distinguishes between two situations:

—

if there is competitive tender, the compensation of public service obligations reflects the spirit of the first three conditions set out it the Altmark Trans judgment;

| — | if a contract has been directly awarded without competitive tender, the public service obligation compensation will be based partly on the criteria established by the Altmark Trans judgment, but a comparative study of the economic management of the service outside the scope of public service obligations must also be carried out. |
| --- | --- |

—

if a contract has been directly awarded without competitive tender, the public service obligation compensation will be based partly on the criteria established by the Altmark Trans judgment, but a comparative study of the economic management of the service outside the scope of public service obligations must also be carried out.

| 4.4.3 | This systems gives rise to a certain legal complexity, requiring clearer definition in order to ensure transparency and good management for customers and taxpayers. |
| --- | --- |

4.4.3

This systems gives rise to a certain legal complexity, requiring clearer definition in order to ensure transparency and good management for customers and taxpayers.

4.5   Quality of services and social legislation

| 4.5.1 | The Commission stresses that the purpose of the proposal for a regulation is to regulate the question of public service obligations, and compensation for these, in the transport sector and not to deal with issues such as service quality, social legislation and consumer protection. Only Article 4(7) therefore deals with social rights in a flexible way. This is after all an area of national competence. |
| --- | --- |

4.5.1

The Commission stresses that the purpose of the proposal for a regulation is to regulate the question of public service obligations, and compensation for these, in the transport sector and not to deal with issues such as service quality, social legislation and consumer protection. Only Article 4(7) therefore deals with social rights in a flexible way. This is after all an area of national competence.

| 4.5.2 | However, the 2002 revised proposal was more precise in defining a suitable level of quality for public transport and passenger information, as well as social legislation (old Articles 4, 4a) and 4b)). |
| --- | --- |

4.5.2

However, the 2002 revised proposal was more precise in defining a suitable level of quality for public transport and passenger information, as well as social legislation (old Articles 4, 4a) and 4b)).

| 4.5.3 | The EESC deplores this excessively cautious new wording on quality, passenger information and the guarantees offered by national social legislation. It urges the Commission to amplify its proposal in the spirit of the 2002 proposal, while respecting the principles of subsidiarity and local authorities' administrative freedom. Without actually drawing up an exhaustive list of safety, quality and passenger information criteria, it would nonetheless be a good idea to indicate certain minimum requirements in these areas. |
| --- | --- |

4.5.3

The EESC deplores this excessively cautious new wording on quality, passenger information and the guarantees offered by national social legislation. It urges the Commission to amplify its proposal in the spirit of the 2002 proposal, while respecting the principles of subsidiarity and local authorities' administrative freedom. Without actually drawing up an exhaustive list of safety, quality and passenger information criteria, it would nonetheless be a good idea to indicate certain minimum requirements in these areas.

4.6   Transition between the current situation and the new legislation

| 4.6.1 | There is a certain amount of imprecision in Article 8(6), which regulates competitive tendering during the second half of the transitional period, but leaves the question wide open of what should happen during the first half of the period and in the case of direct award of contracts. |
| --- | --- |

4.6.1

There is a certain amount of imprecision in Article 8(6), which regulates competitive tendering during the second half of the transitional period, but leaves the question wide open of what should happen during the first half of the period and in the case of direct award of contracts.

Brussels, 18 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  COM(2000) 7 final -2003/0212 (COD), as amended by COM(2002) 107 final.

1

(2)  It should be noted that the current proposal no longer covers inland waterway transport, which therefore continues to be governed by Article 73 of the Treaty.

2

(3)  COM(2005) 319 final, section 2.1.

3

(4)  OJ C 221, 7.8.2001 (point 2.2).

4

(5)  ibid, point 2.4.

5

---

APPENDIX

to the opinion of the European Economic and Social Committee

The following amendment was defeated but received at least a quarter of the votes cast:

Point 4.6

Add a new paragraph to point 4.6:

Inland public transport markets in the EU have been opened up or liberalised to differing degrees, ranging from those that remain closed via those that allow controlled competition to those that have been fully liberalised. A transitional period is therefore needed, so that national markets can adapt to the Regulation and reach comparable levels, in order to prevent inequalities arising between Member States.

Reason

To be given orally.

Result of the voting:

For: 22

Against: 43

Abstentions: 3.

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/26 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/26

---

Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council on the promotion of clean road transport vehicles

(COM(2005) 634 final — 2005/0283 (COD))

(2006/C 195/07)

In a letter of 1 March 2006, the Council asked the European Economic and Social Committee to draw up, in accordance with Article 175(1) of the EC Treaty, an opinion on the abovementioned proposal.

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 2 May 2006. The rapporteur was Mr Ranocchiari.

At its 427th plenary session, held on 17-18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 137 votes to one with four abstentions.

1.   Conclusions and recommendations

| 1.1 | More than 75 % of the population of the European Union lives in urban areas. Urban transport therefore represents a very high percentage of the transport sector as a whole, influencing the parameters of air quality (carbon monoxide, hydrocarbons, nitrogen oxides, particulates, ozone precursors) and hence local pollution, as well as climate change (CO2 emissions). |
| --- | --- |

1.1

More than 75 % of the population of the European Union lives in urban areas. Urban transport therefore represents a very high percentage of the transport sector as a whole, influencing the parameters of air quality (carbon monoxide, hydrocarbons, nitrogen oxides, particulates, ozone precursors) and hence local pollution, as well as climate change (CO2 emissions).

| 1.2 | There have been a succession of legislative and research measures in recent years, both in a European context and in that of international cooperation. The main aims pursued have been to improve energy efficiency and to reduce pollutant emissions as well as dependence on oil. |
| --- | --- |

1.2

There have been a succession of legislative and research measures in recent years, both in a European context and in that of international cooperation. The main aims pursued have been to improve energy efficiency and to reduce pollutant emissions as well as dependence on oil.

| 1.3 | Thanks to the standards regulating vehicle emissions, known as ‘Euro’ standards, pollutant emissions due to vehicle traffic have been drastically reduced over the last 25 years. |
| --- | --- |

1.3

Thanks to the standards regulating vehicle emissions, known as ‘Euro’ standards, pollutant emissions due to vehicle traffic have been drastically reduced over the last 25 years.

| 1.4 | Moreover, thanks to models such as CAFE (Clean Air for Europe, 2005), it has been possible to estimate a further reduction of 5 % in pollution levels for 2020. |
| --- | --- |

1.4

Moreover, thanks to models such as CAFE (Clean Air for Europe, 2005), it has been possible to estimate a further reduction of 5 % in pollution levels for 2020.

| 1.5 | The directive under consideration seeks to promote a sustainable urban environment: the proposal provides for a fleet of ‘clean’ heavy duty vehicles, which, as well as saving energy, would emit a smaller quantity of pollutants. |
| --- | --- |

1.5

The directive under consideration seeks to promote a sustainable urban environment: the proposal provides for a fleet of ‘clean’ heavy duty vehicles, which, as well as saving energy, would emit a smaller quantity of pollutants.

| 1.6 | In particular, the proposal includes an obligation on public bodies to allocate a 25 % quota of their annual procurements of heavy duty vehicles above 3.5 t weight to clean vehicles. The Commission proposal also allows for the possibility of a later extension of this requirement to the other categories of vehicle acquired by public bodies. |
| --- | --- |

1.6

In particular, the proposal includes an obligation on public bodies to allocate a 25 % quota of their annual procurements of heavy duty vehicles above 3.5 t weight to clean vehicles. The Commission proposal also allows for the possibility of a later extension of this requirement to the other categories of vehicle acquired by public bodies.

| 1.7 | Alongside an initial investment by the public bodies, timely implementation of this directive would encourage rapid development and wide distribution of clean technologies. |
| --- | --- |

1.7

Alongside an initial investment by the public bodies, timely implementation of this directive would encourage rapid development and wide distribution of clean technologies.

| 1.8 | The directive, if approved, would offer the many local authorities who find themselves forced to impose restrictions on the free movement of vehicles an alternative solution capable of achieving positive results in terms of environmental, social and economic impact. |
| --- | --- |

1.8

The directive, if approved, would offer the many local authorities who find themselves forced to impose restrictions on the free movement of vehicles an alternative solution capable of achieving positive results in terms of environmental, social and economic impact.

| 1.9 | Cities such as Paris, Montpellier, Frankfurt, Helsinki and others, which have invested in a fleet of clean vehicles (buses or refuse collection lorries powered by natural gas), have achieved good results and are going on to acquire more vehicles to enlarge the available fleet. |
| --- | --- |

1.9

Cities such as Paris, Montpellier, Frankfurt, Helsinki and others, which have invested in a fleet of clean vehicles (buses or refuse collection lorries powered by natural gas), have achieved good results and are going on to acquire more vehicles to enlarge the available fleet.

| 1.10 | Shortening the timescale for action, diversifying efforts and acting at various levels to reduce the overall environmental impact (Euro standards on control of vehicle emissions, measures aimed at improving energy efficiency and at security as regards energy supply and diversifying energy sources) must lead to social benefits and technological and economic progress. |
| --- | --- |

1.10

Shortening the timescale for action, diversifying efforts and acting at various levels to reduce the overall environmental impact (Euro standards on control of vehicle emissions, measures aimed at improving energy efficiency and at security as regards energy supply and diversifying energy sources) must lead to social benefits and technological and economic progress.

| 1.11 | The EESC therefore hopes that the directive can be adopted in 2006, complementing the other measures already taken by the European Community and new measures which are in the process of being approved. |
| --- | --- |

1.11

The EESC therefore hopes that the directive can be adopted in 2006, complementing the other measures already taken by the European Community and new measures which are in the process of being approved.

2.   Reasons and legal context

| 2.1 | On 21 December 2005 the Commission presented this proposal for a directive on the promotion of clean road transport vehicles (1) (legal basis: Article 175(1) TEC; codecision procedure). |
| --- | --- |

2.1

On 21 December 2005 the Commission presented this proposal for a directive on the promotion of clean road transport vehicles (1) (legal basis: Article 175(1) TEC; codecision procedure).

| 2.2 | The main objectives of the directive are:






  — | to reduce pollutant emissions produced by the transport sector; |
| --- | --- | --- |

2.2

The main objectives of the directive are:

—

to reduce pollutant emissions produced by the transport sector;

| — | to encourage the market in clean vehicles, particularly heavy duty vehicles weighing more than 3.5 t. |
| --- | --- |

—

to encourage the market in clean vehicles, particularly heavy duty vehicles weighing more than 3.5 t.

| 2.3 | The directive lays down that public bodies are required to allocate a minimum quota of their annual procurements of heavy duty vehicles (above 3.5 t) to vehicles meeting the ‘enhanced environmentally friendly vehicle’ performance standard. The minimum quota laid down is 25 % and concerns the replacement of heavy duty vehicles to allow the gradual introduction of environmental criteria in the procurement procedure and prepare public bodies and industry for a possible extension of these requirements to other categories of vehicle. |
| --- | --- |

2.3

The directive lays down that public bodies are required to allocate a minimum quota of their annual procurements of heavy duty vehicles (above 3.5 t) to vehicles meeting the ‘enhanced environmentally friendly vehicle’ performance standard. The minimum quota laid down is 25 % and concerns the replacement of heavy duty vehicles to allow the gradual introduction of environmental criteria in the procurement procedure and prepare public bodies and industry for a possible extension of these requirements to other categories of vehicle.

| 2.4 | In the long term, the directive will lead to an improvement in the environmental performance of the entire fleet through economies of scale, a reduction in costs and wider deployment of enhanced environmentally friendly vehicle technologies. |
| --- | --- |

2.4

In the long term, the directive will lead to an improvement in the environmental performance of the entire fleet through economies of scale, a reduction in costs and wider deployment of enhanced environmentally friendly vehicle technologies.

3.   Definitions and explanations

| 3.1 | The heavy duty vehicles covered by the directive are vehicles weighing more than 3.5 t, such as buses and utility vehicles (e.g. refuse collection lorries). |
| --- | --- |

3.1

The heavy duty vehicles covered by the directive are vehicles weighing more than 3.5 t, such as buses and utility vehicles (e.g. refuse collection lorries).

| 3.2 | The term ‘clean vehicle’ signifies ‘enhanced environment-friendly vehicle’ as defined in the EEV (Enhanced environment-friendly vehicle) European performance standard (2), which lays down strict limits on CO2 emissions and on harmful emissions of carbon monoxide, nitrogen oxides, hydrocarbons, particulate pollutants and ozone precursors:









  CO
  (g/kWh) | HC
  (g/kWh) | NOx
  (g/kWh) | PT
  (g/kWh) | Smoke
  (m-1) |
| --- | --- | --- | --- | --- | --- |
| 1.5 | 0.25 | 2.0 | 0.02 | 0.15 |

3.2

The term ‘clean vehicle’ signifies ‘enhanced environment-friendly vehicle’ as defined in the EEV (Enhanced environment-friendly vehicle) European performance standard (2), which lays down strict limits on CO2 emissions and on harmful emissions of carbon monoxide, nitrogen oxides, hydrocarbons, particulate pollutants and ozone precursors:

CO

(g/kWh)

HC

(g/kWh)

NOx

(g/kWh)

PT

(g/kWh)

Smoke

(m-1)

1.5

0.25

2.0

0.02

0.15

| 3.3 | The Member States have always been encouraged to introduce tax concessions for those vehicles which have stricter limit values for emissions than those laid down in the current Euro 4 standard (3), as an incentive to bringing cleaner, more efficient vehicles onto the market. |
| --- | --- |

3.3

The Member States have always been encouraged to introduce tax concessions for those vehicles which have stricter limit values for emissions than those laid down in the current Euro 4 standard (3), as an incentive to bringing cleaner, more efficient vehicles onto the market.

| 3.4 | The public bodies to which the directive is addressed are the national, regional or local authorities, bodies governed by public law, public enterprises and operators bound by contracts with public bodies for the provision of transport services. |
| --- | --- |

3.4

The public bodies to which the directive is addressed are the national, regional or local authorities, bodies governed by public law, public enterprises and operators bound by contracts with public bodies for the provision of transport services.

| 3.5 | The obligation to allocate a minimum quota of annual procurement to clean vehicles applies to both purchasing and leasing of heavy duty vehicles. |
| --- | --- |

3.5

The obligation to allocate a minimum quota of annual procurement to clean vehicles applies to both purchasing and leasing of heavy duty vehicles.

| 3.6 | Promoting the use of EEVs is also in line with the Commission's recent proposal for a directive on car taxation (4): the latter would in fact be partially based on CO2 emissions to encourage the purchasing of cleaner, more energy-efficient vehicles, such as those using biofuels, natural gas, liquefied petroleum gas (LPG), electrical or hybrid motors. |
| --- | --- |

3.6

Promoting the use of EEVs is also in line with the Commission's recent proposal for a directive on car taxation (4): the latter would in fact be partially based on CO2 emissions to encourage the purchasing of cleaner, more energy-efficient vehicles, such as those using biofuels, natural gas, liquefied petroleum gas (LPG), electrical or hybrid motors.

| 3.7 | The increased use of biofuels for vehicles is also an objective of the biomass action plan (5), which the Commission recently adopted and followed up with a communication on biofuels (6). |
| --- | --- |

3.7

The increased use of biofuels for vehicles is also an objective of the biomass action plan (5), which the Commission recently adopted and followed up with a communication on biofuels (6).

| 3.8 | This proposal therefore forms part of a wide range of measures designed to deal with the constant increase in greenhouse gas emissions which jeopardise the Community objectives on climate change, the increase in local pollution phenomena due to vehicle exhaust emissions which have a negative effect on citizens' health, and the question of energy efficiency of fuels which makes Europe still heavily dependent on oil. |
| --- | --- |

3.8

This proposal therefore forms part of a wide range of measures designed to deal with the constant increase in greenhouse gas emissions which jeopardise the Community objectives on climate change, the increase in local pollution phenomena due to vehicle exhaust emissions which have a negative effect on citizens' health, and the question of energy efficiency of fuels which makes Europe still heavily dependent on oil.

| 3.9 | In the Green Paper on energy supply (7) questions linked with the growth of the transport sector, high energy consumption, CO2 emissions and oil dependence are analysed to identify measures which could influence the demand for alternative technologies and fuels and promote a generation of clean vehicles; the same questions are taken up in the White Paper (8) on European transport policy up to 2010. |
| --- | --- |

3.9

In the Green Paper on energy supply (7) questions linked with the growth of the transport sector, high energy consumption, CO2 emissions and oil dependence are analysed to identify measures which could influence the demand for alternative technologies and fuels and promote a generation of clean vehicles; the same questions are taken up in the White Paper (8) on European transport policy up to 2010.

| 3.10 | In the communication on alternative fuels for road transport (9) and the subsequent directive on the promotion of biofuels (10) the diversification of energy sources is regarded as an effective system for reducing dependence on oil, CO2 emissions and local pollutant emissions. |
| --- | --- |

3.10

In the communication on alternative fuels for road transport (9) and the subsequent directive on the promotion of biofuels (10) the diversification of energy sources is regarded as an effective system for reducing dependence on oil, CO2 emissions and local pollutant emissions.

| 3.11 | The communication reviewing the EU strategy for sustainable development (11) covers the aspects related to climate change. This strategy explicitly proposes the development of a market for cleaner vehicles, within a programme of traffic management in urban areas involving the promotion of ‘eco-innovations’ and the adoption of ‘clean’ buses. |
| --- | --- |

3.11

The communication reviewing the EU strategy for sustainable development (11) covers the aspects related to climate change. This strategy explicitly proposes the development of a market for cleaner vehicles, within a programme of traffic management in urban areas involving the promotion of ‘eco-innovations’ and the adoption of ‘clean’ buses.

| 3.12 | The Green Paper (12) on energy efficiency proposes concrete measures, among them the use of public procurement to develop a market for vehicles which are less polluting and more energy-efficient than conventional vehicles. |
| --- | --- |

3.12

The Green Paper (12) on energy efficiency proposes concrete measures, among them the use of public procurement to develop a market for vehicles which are less polluting and more energy-efficient than conventional vehicles.

| 3.13 | Production and use of vehicles which comply better with atmospheric pollutant limits represent an essential factor in the attempt to achieve the objectives set by the relevant European legislation (13). |
| --- | --- |

3.13

Production and use of vehicles which comply better with atmospheric pollutant limits represent an essential factor in the attempt to achieve the objectives set by the relevant European legislation (13).

| 3.14 | In the context of the Thematic Strategy on air pollution (14), whereby the Commission intends to consolidate the relevant current directives, the need is once more emphasised to recommend that public bodies implement them annually by acquiring a minimum quota of clean energy-efficient vehicles. |
| --- | --- |

3.14

In the context of the Thematic Strategy on air pollution (14), whereby the Commission intends to consolidate the relevant current directives, the need is once more emphasised to recommend that public bodies implement them annually by acquiring a minimum quota of clean energy-efficient vehicles.

| 3.15 | The European Parliament has expressed its support for a Community action plan to improve energy efficiency in the transport sector, particularly stressing the importance of targeted public procurement programmes to reduce the price of energy-efficient vehicles and make them competitive with conventional technologies (15). |
| --- | --- |

3.15

The European Parliament has expressed its support for a Community action plan to improve energy efficiency in the transport sector, particularly stressing the importance of targeted public procurement programmes to reduce the price of energy-efficient vehicles and make them competitive with conventional technologies (15).

| 3.16 | The European Council has advocated measures to integrate environmental management and sustainable development into transport policy (16). |
| --- | --- |

3.16

The European Council has advocated measures to integrate environmental management and sustainable development into transport policy (16).

4.   General comments

| 4.1 | This directive, if adopted, would introduce a range of obligatory measures on public procurement, with a view to speeding up the increase in market demand for ‘clean’ vehicles. At the same time, the proposal promotes the introduction of clean energy-efficient vehicles through a technologically neutral approach, as recommended by the Member States (17). |
| --- | --- |

4.1

This directive, if adopted, would introduce a range of obligatory measures on public procurement, with a view to speeding up the increase in market demand for ‘clean’ vehicles. At the same time, the proposal promotes the introduction of clean energy-efficient vehicles through a technologically neutral approach, as recommended by the Member States (17).

| 4.2 | The procurement obligation for heavy duty vehicles exceeding 3.5 t weight, as compared with voluntary agreements or other types of regulatory measures, has advantages in terms of the cost/benefit ratio, the economic aspects of the competitiveness of European industry, and above all the environmental impact. |
| --- | --- |

4.2

The procurement obligation for heavy duty vehicles exceeding 3.5 t weight, as compared with voluntary agreements or other types of regulatory measures, has advantages in terms of the cost/benefit ratio, the economic aspects of the competitiveness of European industry, and above all the environmental impact.

| 4.3 | The 25 % quota of procurement corresponds to 10 % of the whole market, a percentage which is high enough to influence the development of the market for clean vehicles and to encourage economies of scale, thus keeping investment costs at an acceptable level. |
| --- | --- |

4.3

The 25 % quota of procurement corresponds to 10 % of the whole market, a percentage which is high enough to influence the development of the market for clean vehicles and to encourage economies of scale, thus keeping investment costs at an acceptable level.

| 4.4 | The number of vehicles to be covered by this proposed directive is estimated at about 52 000, comprising 17 000 buses and 35 000 lorries. Introducing 25 % clean vehicles would thus correspond to 13 000 EEVs per year. The choice of a specific replacement sector (buses, refuse collection lorries or others) is left to the public bodies, which are entirely free to decide the specific replacement quotas. |
| --- | --- |

4.4

The number of vehicles to be covered by this proposed directive is estimated at about 52 000, comprising 17 000 buses and 35 000 lorries. Introducing 25 % clean vehicles would thus correspond to 13 000 EEVs per year. The choice of a specific replacement sector (buses, refuse collection lorries or others) is left to the public bodies, which are entirely free to decide the specific replacement quotas.

| 4.5 | Procurement for the systematic introduction of clean vehicles would encourage the development of the automotive industry and guarantee the expansion of a strong market for heavy duty vehicles in Europe, increasing its competitiveness. |
| --- | --- |

4.5

Procurement for the systematic introduction of clean vehicles would encourage the development of the automotive industry and guarantee the expansion of a strong market for heavy duty vehicles in Europe, increasing its competitiveness.

| 4.6 | Paris, Montpellier, Frankfurt and other cities already have fleets of clean vehicles and are preparing to enlarge them in view of the positive environmental and socio-economic results achieved. |
| --- | --- |

4.6

Paris, Montpellier, Frankfurt and other cities already have fleets of clean vehicles and are preparing to enlarge them in view of the positive environmental and socio-economic results achieved.

| 4.7 | The mandatory introduction of a percentage of EEVs in the fleet of heavy duty vehicles represents a further instrument available to public authorities to help them meet the obligations imposed by Community directives on air quality. |
| --- | --- |

4.7

The mandatory introduction of a percentage of EEVs in the fleet of heavy duty vehicles represents a further instrument available to public authorities to help them meet the obligations imposed by Community directives on air quality.

| 4.8 | The replacement percentage suggested in the proposed directive would make it possible to obtain rapid initial results as regards improvement of air quality (18), as the EEVs meet standards which drastically reduce HC, NOx and PM emissions. |
| --- | --- |

4.8

The replacement percentage suggested in the proposed directive would make it possible to obtain rapid initial results as regards improvement of air quality (18), as the EEVs meet standards which drastically reduce HC, NOx and PM emissions.

| 4.9 | Moreover, the use of EEVs helps to reduce fuel consumption and encourage research to obtain increasingly significant results for the environment; on the other hand, promoting the use of alternative fuels and studying emission treatment technologies provide a strong stimulus to the growth of the automotive industry. |
| --- | --- |

4.9

Moreover, the use of EEVs helps to reduce fuel consumption and encourage research to obtain increasingly significant results for the environment; on the other hand, promoting the use of alternative fuels and studying emission treatment technologies provide a strong stimulus to the growth of the automotive industry.

| 4.10 | Considering that the average life of the heavy duty vehicles covered by the proposed directive is about 15 years and assuming that it comes into force in 2006, public bodies would have time by 2030 to recoup the investment, make technological progress and improve performance standards. |
| --- | --- |

4.10

Considering that the average life of the heavy duty vehicles covered by the proposed directive is about 15 years and assuming that it comes into force in 2006, public bodies would have time by 2030 to recoup the investment, make technological progress and improve performance standards.

| 4.11 | A substantial commitment to the speedy promotion of clean vehicles would also have beneficial social effects: improving air quality in urban centres means, among other things, reducing the incidence or exacerbation of respiratory diseases, with a resulting improvement in the public health budget. |
| --- | --- |

4.11

A substantial commitment to the speedy promotion of clean vehicles would also have beneficial social effects: improving air quality in urban centres means, among other things, reducing the incidence or exacerbation of respiratory diseases, with a resulting improvement in the public health budget.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  COM(2005) 634 final.

1

(2)  Directive 2005/55/EC, Article 1(c) and Annex I, point 6.2.1.

2

(3)  Directive 1998/69/EC.

3

(4)  COM(2005) 261 final of 5.7.2005.

4

(5)  COM(2005) 628 final of 7.12.2005.

5

(6)  COM(2006) 34 final of 7.2.2006.

6

(7)  COM(2000) 769.

7

(8)  COM(2001) 370.

8

(9)  COM(2001) 547: it provides for the replacing 20 % of traditional fuels with alternative fuels by 2020.

9

(10)  Directive 2003/30/EC.

10

(11)  COM(2005) 37.

11

(12)  COM(2005) 265.

12

(13)  Directive 1996/62 on ambient air quality and derived directives: Directive 1999/30 on limit values for sulphur dioxide, nitrogen dioxide, particulates and lead; Directive 2000/69 on limit values for benzene and carbon monoxide; Directive 2002/3 objectives on ozone values.

13

(14)  COM(2005) 446 final.

14

(15)  A5-0054/2001.

15

(16)  Helsinki European Council (1999) and Gothenburg European Council (2001).

16

(17)  In accordance with the priorities laid down by the European Council of 22 and 23 March 2005, in the context of the Lisbon strategy.

17

(18)  The city of Montpellier introduced the first ‘clean’ buses powered by natural gas in 1999. After thirty months NOx emissions had dropped by 50 %, PT had almost entirely disappeared and noise had been reduced by 5 to 8 decibels. (Data ADEME, Agence de l'environnement et de la maîtrise de l'énergie - Délégation régionale Languedoc-Roussillon).

18

Agence de l'environnement et de la maîtrise de l'énergie

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/29 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/29

---

Opinion of the European Economic and Social Committee on the Communication from the Commission to the Council and the European Parliament on the review of the Sustainable Development Strategy — A platform for action

(COM(2005) 658 final)

(2006/C 195/08)

On 13 December 2005 the European Commission decided to consult the European Economic and Social Committee, under Article 262 of the Treaty establishing the European Community, on the abovementioned proposal.

The Section for Agriculture, Rural Development and the Environment, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 26 April 2006. The rapporteur was Mr Ribbe, and the co-rapporteur was Mr Derruine.

At its 427th plenary session, held on 17 and 18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 137 votes to 2 with 4 abstentions.

1.   Summary of EESC conclusions and recommendations

| 1.1 | The EESC has repeatedly mentioned the importance of sustainable development for Europe's future and for global development, and therefore welcomes the presentation of a ‘platform for action’ in which the Commission addresses the issue. |
| --- | --- |

1.1

The EESC has repeatedly mentioned the importance of sustainable development for Europe's future and for global development, and therefore welcomes the presentation of a ‘platform for action’ in which the Commission addresses the issue.

| 1.2 | The communication presented by the Commission is one of five documents published in 2005 alone on the subject of sustainable development. Although he EESC is constantly stressing the importance of concrete steps, it deplores this large number of different documents produced, which makes it almost impossible for the average politically aware person to follow the dossier. |
| --- | --- |

1.2

The communication presented by the Commission is one of five documents published in 2005 alone on the subject of sustainable development. Although he EESC is constantly stressing the importance of concrete steps, it deplores this large number of different documents produced, which makes it almost impossible for the average politically aware person to follow the dossier.

| 1.3 | The links between the Lisbon strategy and the sustainable development strategy are unclear. Measures to provide information and improve coherence are needed to ensure that these links are understood by the general public. The impact analysis tool must be adapted so as to take account of the social and environmental dimensions to the same extent as the economic dimension. The research and innovation advocated under the Lisbon strategy should explicitly support sustainable development. |
| --- | --- |

1.3

The links between the Lisbon strategy and the sustainable development strategy are unclear. Measures to provide information and improve coherence are needed to ensure that these links are understood by the general public. The impact analysis tool must be adapted so as to take account of the social and environmental dimensions to the same extent as the economic dimension. The research and innovation advocated under the Lisbon strategy should explicitly support sustainable development.

| 1.4 | The EESC does not see the ‘platform for action’ set out in the communication as a new, revised strategy. Although it provides an accurate analysis of the current situation and notes that it is unsustainable, the communication does not really get beyond this. Far too little, if anything, is said about what specific action could be taken. |
| --- | --- |

1.4

The EESC does not see the ‘platform for action’ set out in the communication as a new, revised strategy. Although it provides an accurate analysis of the current situation and notes that it is unsustainable, the communication does not really get beyond this. Far too little, if anything, is said about what specific action could be taken.

| 1.5 | In this document, the Commission does not follow the EESC's recommendation of April 2004 or meet its own undertaking of June 2005. It does not set out clear goals to be reached under the sustainability strategy. |
| --- | --- |

1.5

In this document, the Commission does not follow the EESC's recommendation of April 2004 or meet its own undertaking of June 2005. It does not set out clear goals to be reached under the sustainability strategy.

| 1.6 | A strategy should normally describe the means of achieving objectives. The absence of objectives is bound to result in gaps when it comes to identifying instruments. This is a definite problem with the communication: if you do not know exactly where you are going, then you cannot decide how you will get there. |
| --- | --- |

1.6

A strategy should normally describe the means of achieving objectives. The absence of objectives is bound to result in gaps when it comes to identifying instruments. This is a definite problem with the communication: if you do not know exactly where you are going, then you cannot decide how you will get there.

| 1.7 | The key actions described in the communication are vague and very poorly defined. Some are former demands, or undertakings, which have been pending for more than 30 years without being carried out. But there is no discussion of why such long-standing objectives have not been achieved, or of whether they are still appropriate and above all sufficient. |
| --- | --- |

1.7

The key actions described in the communication are vague and very poorly defined. Some are former demands, or undertakings, which have been pending for more than 30 years without being carried out. But there is no discussion of why such long-standing objectives have not been achieved, or of whether they are still appropriate and above all sufficient.

| 1.8 | Wherever a crucial statement is made, however, the Commission remains non-committal. Its stated intention to use international trade as an instrument for promoting sustainable development can only be welcomed. But a ‘platform for action’ can also be expected to answer the question of how to achieve such an aim. |
| --- | --- |

1.8

Wherever a crucial statement is made, however, the Commission remains non-committal. Its stated intention to use international trade as an instrument for promoting sustainable development can only be welcomed. But a ‘platform for action’ can also be expected to answer the question of how to achieve such an aim.

| 1.9 | The Commission should clarify the role of the parties concerned by answering the question of who should be doing what, depending on the remits of the EU, the Member States, the social partners and other players. |
| --- | --- |

1.9

The Commission should clarify the role of the parties concerned by answering the question of who should be doing what, depending on the remits of the EU, the Member States, the social partners and other players.

| 1.10 | The EESC for its part intends to contribute to the debate by building up a database that can be used to promote best practice, identifying obstacles encountered by operators, etc. This should enhance the expertise which the Commission and other parties can draw on. |
| --- | --- |

1.10

The EESC for its part intends to contribute to the debate by building up a database that can be used to promote best practice, identifying obstacles encountered by operators, etc. This should enhance the expertise which the Commission and other parties can draw on.

| 1.11 | The communication thus leaves more questions open than it answers; it even raises new questions for which society is vainly awaiting a response. |
| --- | --- |

1.11

The communication thus leaves more questions open than it answers; it even raises new questions for which society is vainly awaiting a response.

| 1.12 | The EESC deeply deplores this situation. The communication is not really bringing sustainable development policy forward, but rather proves that the process currently seems to have stalled. |
| --- | --- |

1.12

The EESC deeply deplores this situation. The communication is not really bringing sustainable development policy forward, but rather proves that the process currently seems to have stalled.

2.   Main elements and background of the opinion

| 2.1 | On 13 December 2005, just before the EU Council of Economics and Finance Ministers in Brussels, the Commission presented a communication to the Council and the European Parliament on The review of the Sustainable Development Strategy — A platform for action
   (1). |
| --- | --- |

2.1

On 13 December 2005, just before the EU Council of Economics and Finance Ministers in Brussels, the Commission presented a communication to the Council and the European Parliament on The review of the Sustainable Development Strategy — A platform for action
   (1).

| 2.2 | The EU's sustainable development strategy under review was adopted at the summit meeting in Gothenburg held in the summer of 2001. The EESC has expressed its views several times both on preparations for the strategy and on the strategy itself, most recently for example in its exploratory opinions on Assessing the EU sustainable development strategy
   (2) (April 2004) and on The role of sustainable development within the forthcoming financial perspectives
   (3) (May 2005). It also held a high-profile Stakeholder Forum with the Commission in April 2005 that was considered to be very constructive, and another hearing in March 2006 in connection with drawing up this opinion (the results of the hearing have obviously been taken into account in the opinion). |
| --- | --- |

2.2

The EU's sustainable development strategy under review was adopted at the summit meeting in Gothenburg held in the summer of 2001. The EESC has expressed its views several times both on preparations for the strategy and on the strategy itself, most recently for example in its exploratory opinions on Assessing the EU sustainable development strategy
   (2) (April 2004) and on The role of sustainable development within the forthcoming financial perspectives
   (3) (May 2005). It also held a high-profile Stakeholder Forum with the Commission in April 2005 that was considered to be very constructive, and another hearing in March 2006 in connection with drawing up this opinion (the results of the hearing have obviously been taken into account in the opinion).

| 2.3 | The Prodi Commission had announced that it would revise and adopt the Sustainable Development Strategy, but this never happened. Instead, there were considerable delays each time with drawing up the document(s). This may be a sign of how difficult the Commission — as well as the Council — find it to take forward the sustainable development strategy. |
| --- | --- |

2.3

The Prodi Commission had announced that it would revise and adopt the Sustainable Development Strategy, but this never happened. Instead, there were considerable delays each time with drawing up the document(s). This may be a sign of how difficult the Commission — as well as the Council — find it to take forward the sustainable development strategy.

| 2.4 | In February 2005 the Barroso Commission presented, not a revised strategy, but a communication entitled The 2005 Review of the EU Sustainable Development Strategy: Initial Stocktaking and Future Orientations
   (4). In that communication the Commission talked about ‘the worsening of unsustainable trends’, noted that progress on integrating environmental concerns into sectoral policies was ‘limited so far’, that ‘poverty and social exclusion’ were a ‘growing problem’, and that ‘in a world of growing 'interdependence' we cannot continue to produce and consume as we are doing today’. |
| --- | --- |

2.4

In February 2005 the Barroso Commission presented, not a revised strategy, but a communication entitled The 2005 Review of the EU Sustainable Development Strategy: Initial Stocktaking and Future Orientations
   (4). In that communication the Commission talked about ‘the worsening of unsustainable trends’, noted that progress on integrating environmental concerns into sectoral policies was ‘limited so far’, that ‘poverty and social exclusion’ were a ‘growing problem’, and that ‘in a world of growing 'interdependence' we cannot continue to produce and consume as we are doing today’.

| 2.5 | The communication now under discussion must be seen in the above context. The EESC can see the document as a further step towards revising the sustainability strategy, but not as the result of a completed revision. According to recent — though mostly unofficial — information, the current intention is that the European Council should adopt a revision of the 2001 sustainability strategy at its summit in June 2006 and that the conclusions of the summit should then present the common European sustainability strategy until 2009. The EESC would point out firstly that the Commission has not fulfilled its 2001 commitment to present a revised strategy at the beginning of each new Commission term. Now five documents (5) drawn up in 2005 are on the table which at best can be considered ideas and background material for a revised strategy, but in no way a new, revised strategy for the next four years that addresses current — and increasingly worrying — trends. |
| --- | --- |

2.5

The communication now under discussion must be seen in the above context. The EESC can see the document as a further step towards revising the sustainability strategy, but not as the result of a completed revision. According to recent — though mostly unofficial — information, the current intention is that the European Council should adopt a revision of the 2001 sustainability strategy at its summit in June 2006 and that the conclusions of the summit should then present the common European sustainability strategy until 2009. The EESC would point out firstly that the Commission has not fulfilled its 2001 commitment to present a revised strategy at the beginning of each new Commission term. Now five documents (5) drawn up in 2005 are on the table which at best can be considered ideas and background material for a revised strategy, but in no way a new, revised strategy for the next four years that addresses current — and increasingly worrying — trends.

| 2.6 | The EESC is surprised that the Commission has not provided any detailed comments on its recent exploratory opinion Assessing the EU sustainable development strategy
   (6), although it had promised to do so. Many of the basic questions raised by the Committee in that opinion have not yet been addressed, which is reflected and confirmed in the lack of goals, ideas and direction in the present ‘platform for action’. |
| --- | --- |

2.6

The EESC is surprised that the Commission has not provided any detailed comments on its recent exploratory opinion Assessing the EU sustainable development strategy
   (6), although it had promised to do so. Many of the basic questions raised by the Committee in that opinion have not yet been addressed, which is reflected and confirmed in the lack of goals, ideas and direction in the present ‘platform for action’.

| 2.7 | The Committee is also unable to find — as was the case in 2004 — any clear indication as to how the two major strategies that guide the EU's action, sustainable development and the Lisbon strategy for growth and employment, are defined and classified in relation to the objectives set by the Union in Article 2 of the EU Treaty (7). The national reform programmes for the Lisbon strategy show that sustainable development is not identified as a priority by the Member States. This conflicts with the conclusions of the European Council of March 2005, in which sustainable development was identified as the overarching strategy of the EU. |
| --- | --- |

2.7

The Committee is also unable to find — as was the case in 2004 — any clear indication as to how the two major strategies that guide the EU's action, sustainable development and the Lisbon strategy for growth and employment, are defined and classified in relation to the objectives set by the Union in Article 2 of the EU Treaty (7). The national reform programmes for the Lisbon strategy show that sustainable development is not identified as a priority by the Member States. This conflicts with the conclusions of the European Council of March 2005, in which sustainable development was identified as the overarching strategy of the EU.

| 2.8 | In this opinion, the EESC will consider mainly whether the statements, questions and recommendations that it presented in its above-mentioned opinions of April 2004 and May 2005 have been taken on board and applied. |
| --- | --- |

2.8

In this opinion, the EESC will consider mainly whether the statements, questions and recommendations that it presented in its above-mentioned opinions of April 2004 and May 2005 have been taken on board and applied.

| 2.9 | The opinion also considers whether the Commission's own explicit undertakings are being fulfilled. |
| --- | --- |

2.9

The opinion also considers whether the Commission's own explicit undertakings are being fulfilled.

3.   General comments

| 3.1 | In the communication under consideration the Commission first outlines the general situation, as it has done in many previous documents. These two sentences from the third paragraph of the communication surely sums up the situation quite clearly: ‘Europe has made a good start in applying these principles of sustainable development. [...] However, the rapid pace of change requires the stepping up of efforts ... .’ |
| --- | --- |

3.1

In the communication under consideration the Commission first outlines the general situation, as it has done in many previous documents. These two sentences from the third paragraph of the communication surely sums up the situation quite clearly: ‘Europe has made a good start in applying these principles of sustainable development. [...] However, the rapid pace of change requires the stepping up of efforts ... .’

| 3.2 | The Committee agrees with this statement and with the general analysis: many exemplary initiatives have been taken at both EU and national level, as well as by companies, NGOs and private individuals. But these are not yet enough to signal a trend reversal. |
| --- | --- |

3.2

The Committee agrees with this statement and with the general analysis: many exemplary initiatives have been taken at both EU and national level, as well as by companies, NGOs and private individuals. But these are not yet enough to signal a trend reversal.

| 3.3 | There are concrete successful examples at national level (e.g. the positive environmental and employment impact of the German programme to promote energy-efficient building renovation and use of renewables) at sectoral level (e.g. not using climate-harming CFCs in car air-conditioning systems and the ‘Environmental Technologies Action Plan’) and even at company level (e.g. British Petroleum's undertaking in 1998 to reduce greenhouse gas emissions to 10 % below 1990 levels by 2010, a goal that was already reached in 2003 thanks to energy efficiency measures; see also the letter from major UK and multinational companies supporting the British prime minister in combating climate change (8).) |
| --- | --- |

3.3

There are concrete successful examples at national level (e.g. the positive environmental and employment impact of the German programme to promote energy-efficient building renovation and use of renewables) at sectoral level (e.g. not using climate-harming CFCs in car air-conditioning systems and the ‘Environmental Technologies Action Plan’) and even at company level (e.g. British Petroleum's undertaking in 1998 to reduce greenhouse gas emissions to 10 % below 1990 levels by 2010, a goal that was already reached in 2003 thanks to energy efficiency measures; see also the letter from major UK and multinational companies supporting the British prime minister in combating climate change (8).)

| 3.4 | These examples show that sustainable production and consumption practices are not only technically, but also economically, feasible and help to maintain or create jobs. This message must be conveyed more clearly than before. |
| --- | --- |

3.4

These examples show that sustainable production and consumption practices are not only technically, but also economically, feasible and help to maintain or create jobs. This message must be conveyed more clearly than before.

| 3.5 | Sustainable development is an alternative, new, integrated social development concept; the economic, social and ecological dimensions of sustainable development are mutually reinforcing and help to uphold ‘European values’. Sustainable development thus promotes the general social good. In this context the Committee welcomes the joint efforts of the Commission and Eurostat to develop a ‘welfare indicator’ that is a more informative unit of measurement than GDP from the perspective of sustainable development. The ‘ecological footprint’ reported by the European Environment Agency, for example, could serve this function. Such an indicator would have to take external environmental costs, but also certain social costs, into account. |
| --- | --- |

3.5

Sustainable development is an alternative, new, integrated social development concept; the economic, social and ecological dimensions of sustainable development are mutually reinforcing and help to uphold ‘European values’. Sustainable development thus promotes the general social good. In this context the Committee welcomes the joint efforts of the Commission and Eurostat to develop a ‘welfare indicator’ that is a more informative unit of measurement than GDP from the perspective of sustainable development. The ‘ecological footprint’ reported by the European Environment Agency, for example, could serve this function. Such an indicator would have to take external environmental costs, but also certain social costs, into account.

| 3.6 | The point of sustainable development is not to correct deficits created in the development of one sector through measures taken in other sectors. That is how policy used to work. In June 2005 the European Council confirmed this interpretation of the concept of development, and several European Commission documents prove that such an approach is also effective (9). |
| --- | --- |

3.6

The point of sustainable development is not to correct deficits created in the development of one sector through measures taken in other sectors. That is how policy used to work. In June 2005 the European Council confirmed this interpretation of the concept of development, and several European Commission documents prove that such an approach is also effective (9).

| 3.7 | However, a broad debate among political and social stakeholders is first required about the values we have in Europe — sometimes in contrast to other regions of the world — and which we must defend, and the objectives we wish to achieve in Europe through sustainable development. Indeed the debate seems to be long overdue. Only when the objectives and (European) values aspired to have been clearly identified can we begin to discuss ways of achieving these goals (i.e. the strategy). Once again, the EESC is not convinced that the matter has been adequately discussed. The Committee repeats its comment from two years ago that the concept of ‘sustainability’ itself is unfamiliar to many ordinary people, and those that have heard of it are often unable to understand what it means. This may be a poor basis for political action (the same applies to the Lisbon strategy). |
| --- | --- |

3.7

However, a broad debate among political and social stakeholders is first required about the values we have in Europe — sometimes in contrast to other regions of the world — and which we must defend, and the objectives we wish to achieve in Europe through sustainable development. Indeed the debate seems to be long overdue. Only when the objectives and (European) values aspired to have been clearly identified can we begin to discuss ways of achieving these goals (i.e. the strategy). Once again, the EESC is not convinced that the matter has been adequately discussed. The Committee repeats its comment from two years ago that the concept of ‘sustainability’ itself is unfamiliar to many ordinary people, and those that have heard of it are often unable to understand what it means. This may be a poor basis for political action (the same applies to the Lisbon strategy).

| 3.8 | The EESC is very aware that this debate about values and objectives is not an easy one, especially in the context of global markets. If Europe takes the lead in maintaining living conditions, this might for example cause unsustainable production to be transferred from Europe to other parts of the world (which would not be a positive achievement from a global perspective) and have a negative impact on the competitiveness of European companies. But it is precisely because many problems are likely to arise that the broad debate repeatedly called for by the Committee must finally take place. |
| --- | --- |

3.8

The EESC is very aware that this debate about values and objectives is not an easy one, especially in the context of global markets. If Europe takes the lead in maintaining living conditions, this might for example cause unsustainable production to be transferred from Europe to other parts of the world (which would not be a positive achievement from a global perspective) and have a negative impact on the competitiveness of European companies. But it is precisely because many problems are likely to arise that the broad debate repeatedly called for by the Committee must finally take place.

Focusing on key issues

| 3.9 | In its communication the Commission focuses on six ‘key issues’:






  — | climate change and clean energy, |
| --- | --- | --- |

3.9

In its communication the Commission focuses on six ‘key issues’:

—

climate change and clean energy,

| — | public health, |
| --- | --- |

—

public health,

| — | social exclusion, demography and migration, |
| --- | --- |

—

social exclusion, demography and migration,

| — | management of natural resources, |
| --- | --- |

—

management of natural resources,

| — | sustainable transport, |
| --- | --- |

—

sustainable transport,

| — | global poverty and development challenges. |
| --- | --- |

—

global poverty and development challenges.

| 3.10 | As it repeatedly stressed in its above-mentioned opinions, the EESC considers a certain focus to be appropriate, but it would point out that at least those areas, such as agricultural and regional policy, for which the EU has full responsibility — including financial responsibility — should be addressed more thoroughly. These areas are notable by their virtual absence from the communication: the only reference is an internet link in Annex 2 to the Commission proposal for a regulation on the strategic guidelines for rural development 2007-2013 (COM(2005) 304), but no more details are given about the objectives and measures linked to sustainable development. |
| --- | --- |

3.10

As it repeatedly stressed in its above-mentioned opinions, the EESC considers a certain focus to be appropriate, but it would point out that at least those areas, such as agricultural and regional policy, for which the EU has full responsibility — including financial responsibility — should be addressed more thoroughly. These areas are notable by their virtual absence from the communication: the only reference is an internet link in Annex 2 to the Commission proposal for a regulation on the strategic guidelines for rural development 2007-2013 (COM(2005) 304), but no more details are given about the objectives and measures linked to sustainable development.

| 3.10.1 | Reform of the agricultural and fisheries policy, for example, is mentioned briefly in the introduction to the communication in relation to the EU's efforts to date, where the Commission stresses that ‘the reinforcement of rural development policy’ reflects the commitment to integrated policy- making. But the EESC is completely baffled by this statement, since there is absolutely no question of any ‘reinforcement’. Contrary to the Commission's political commitment and the EESC's recommendations (10), funding for rural development in the 2007-2013 programming period will be significantly below the current budget outturn and the Commission's planned expenditure (11). |
| --- | --- |

3.10.1

Reform of the agricultural and fisheries policy, for example, is mentioned briefly in the introduction to the communication in relation to the EU's efforts to date, where the Commission stresses that ‘the reinforcement of rural development policy’ reflects the commitment to integrated policy- making. But the EESC is completely baffled by this statement, since there is absolutely no question of any ‘reinforcement’. Contrary to the Commission's political commitment and the EESC's recommendations (10), funding for rural development in the 2007-2013 programming period will be significantly below the current budget outturn and the Commission's planned expenditure (11).

| 3.10.2 | As regards fisheries, the EESC would simply point out that so far it has not even been possible to guarantee the agreed catch quotas, which means that seas continue to be overfished. Simply listing various internet sites with information on previous policies or possible planned Commission communications or green papers does not in the circumstances seem enough to achieve the stated ‘operational’ goal of achieving a ‘maximum sustainable yield in fisheries by 2015’ (12). |
| --- | --- |

3.10.2

As regards fisheries, the EESC would simply point out that so far it has not even been possible to guarantee the agreed catch quotas, which means that seas continue to be overfished. Simply listing various internet sites with information on previous policies or possible planned Commission communications or green papers does not in the circumstances seem enough to achieve the stated ‘operational’ goal of achieving a ‘maximum sustainable yield in fisheries by 2015’ (12).

Lack of clear objectives

| 3.11 | In its communication of February 2005 (COM(2005) 37 final), the Commission made an important and — in the Committee's view — correct analysis of the continuing unsustainable situation and trends, and in Part II (‘Responding to the challenges’) it announced approaches that the EESC had previously called for. For instance, the Commission emphasised that ‘economic growth, social inclusion and environmental protection go hand in hand, both in Europe and in other parts of the world’, and said that it wished to put ‘sustainable development at the core of EU policy-making’, pointing to ‘the need for clearer objectives, targets and related deadlines as a way of giving focus to action in priority areas and enabling progress to be measured. Although the trends represent long-term problems that will need long-term solutions, the only way to ascertain that society is moving in the right direction is by setting clear intermediate targets and measuring progress. Setting long-term objectives, therefore, must not come to mean postponing action.’ |
| --- | --- |

3.11

In its communication of February 2005 (COM(2005) 37 final), the Commission made an important and — in the Committee's view — correct analysis of the continuing unsustainable situation and trends, and in Part II (‘Responding to the challenges’) it announced approaches that the EESC had previously called for. For instance, the Commission emphasised that ‘economic growth, social inclusion and environmental protection go hand in hand, both in Europe and in other parts of the world’, and said that it wished to put ‘sustainable development at the core of EU policy-making’, pointing to ‘the need for clearer objectives, targets and related deadlines as a way of giving focus to action in priority areas and enabling progress to be measured. Although the trends represent long-term problems that will need long-term solutions, the only way to ascertain that society is moving in the right direction is by setting clear intermediate targets and measuring progress. Setting long-term objectives, therefore, must not come to mean postponing action.’

| 3.12 | In its opinion of April 2004 the EESC also lamented the fact that the sustainability strategy contained so few clear, and therefore also measurable, objectives. It noted that this had not always been the case: the Commission communication on which the sustainability strategy was based set out clear objectives (13). |
| --- | --- |

3.12

In its opinion of April 2004 the EESC also lamented the fact that the sustainability strategy contained so few clear, and therefore also measurable, objectives. It noted that this had not always been the case: the Commission communication on which the sustainability strategy was based set out clear objectives (13).

| 3.12.1 | The EESC already made it clear in that opinion that a strategy would lack direction without appropriate objectives and interim targets. We asked what a ‘strategy’ actually meant, noting: ‘A strategy is defined as a detailed plan for achieving a specific goal, factoring in, from the outset, those elements that might potentially impact any action taken. Thus, the future EU sustainable development strategy should:’






  — | provide clear objectives; |
| --- | --- | --- |

3.12.1

The EESC already made it clear in that opinion that a strategy would lack direction without appropriate objectives and interim targets. We asked what a ‘strategy’ actually meant, noting: ‘A strategy is defined as a detailed plan for achieving a specific goal, factoring in, from the outset, those elements that might potentially impact any action taken. Thus, the future EU sustainable development strategy should:’

—

provide clear objectives;

| — | outline the individual tools to be used to reach the objective(s); which also involves setting out precisely the responsibilities, remits and scope for exerting influence in each case; |
| --- | --- |

—

outline the individual tools to be used to reach the objective(s); which also involves setting out precisely the responsibilities, remits and scope for exerting influence in each case;

| — | divide, if necessary, long-term objectives into intermediate goals that can be regularly monitored using readily comprehensible indicators; |
| --- | --- |

—

divide, if necessary, long-term objectives into intermediate goals that can be regularly monitored using readily comprehensible indicators;

| — | address those factors that may cause problems in this process; and |
| --- | --- |

—

address those factors that may cause problems in this process; and

| — | see to it that all policy areas are consistently analysed and assessed using sustainability criteria (14). |
| --- | --- |

—

see to it that all policy areas are consistently analysed and assessed using sustainability criteria (14).

| 3.13 | Probably the greatest fault of the Commission communication and the ‘platform for action’ it describes is that again no real, clear targets and milestones are set and ways of reaching them outlined, although the Commission itself regards these as necessary. In fact the document only contains very vague key actions; Annex 2 mentions a number of ‘operational objectives and targets’, as well as ‘examples of key actions: ongoing and planned’, which either seem arbitrary, provide little information or are intended only to be ‘explored’ or ‘considered’. |
| --- | --- |

3.13

Probably the greatest fault of the Commission communication and the ‘platform for action’ it describes is that again no real, clear targets and milestones are set and ways of reaching them outlined, although the Commission itself regards these as necessary. In fact the document only contains very vague key actions; Annex 2 mentions a number of ‘operational objectives and targets’, as well as ‘examples of key actions: ongoing and planned’, which either seem arbitrary, provide little information or are intended only to be ‘explored’ or ‘considered’.

| 3.14 | There is no mention either of who would ultimately be responsible for what and of how the different political levels should be interlinked in order to achieve optimum synergy effects from the various remits. |
| --- | --- |

3.14

There is no mention either of who would ultimately be responsible for what and of how the different political levels should be interlinked in order to achieve optimum synergy effects from the various remits.

No debate about instruments

| 3.15 | The EESC was interested to read point 3.2. and the comments on the most effective mix of instruments. It is quite correct that: ‘Governments and other public bodies have a wide range of tools by which they can encourage people to make changes — how they regulate, tax, procure, subsidise, invest, spend and provide information. The challenge is to achieve the right policy mix [...]. Perhaps the most powerful method to promote change is to ensure that markets send the right signals (“getting prices right”), thus providing a powerful incentive for people to change their behaviour and shape the market place accordingly. This can be done by making sure that all of us, producers and consumers alike, face the full costs and consequences of our decisions — when we are making those decisions. For example, this means building the cost imposed on others in society by “polluters” into the price of the product, ... .’ |
| --- | --- |

3.15

The EESC was interested to read point 3.2. and the comments on the most effective mix of instruments. It is quite correct that: ‘Governments and other public bodies have a wide range of tools by which they can encourage people to make changes — how they regulate, tax, procure, subsidise, invest, spend and provide information. The challenge is to achieve the right policy mix [...]. Perhaps the most powerful method to promote change is to ensure that markets send the right signals (“getting prices right”), thus providing a powerful incentive for people to change their behaviour and shape the market place accordingly. This can be done by making sure that all of us, producers and consumers alike, face the full costs and consequences of our decisions — when we are making those decisions. For example, this means building the cost imposed on others in society by “polluters” into the price of the product, ... .’

| 3.16 | The EESC can only endorse this approach, which is consistent with many of the opinions it has adopted over the past few years (15). However, the Committee deeply regrets that the communication gets bogged down in the analysis and gives no indication of how external costs are to be internalised in this way. |
| --- | --- |

3.16

The EESC can only endorse this approach, which is consistent with many of the opinions it has adopted over the past few years (15). However, the Committee deeply regrets that the communication gets bogged down in the analysis and gives no indication of how external costs are to be internalised in this way.

| 3.17 | In its opinion of April 2004 the EESC called on the Commission to take action here by seeking and conducting dialogue with all the parties involved. These parties had not only every interest, but also a right, to learn how (and when) internalisation of external costs would be guaranteed. In that opinion the EESC also asked for clarification of the impact of internalising costs on economic competitiveness in general and transport in particular. The Commission itself had noted that ‘less than half the external environmental costs .... are internalised by the market prices’, thereby encouraging ‘unsustainable ... demand’
   (16)
  . |
| --- | --- |

3.17

In its opinion of April 2004 the EESC called on the Commission to take action here by seeking and conducting dialogue with all the parties involved. These parties had not only every interest, but also a right, to learn how (and when) internalisation of external costs would be guaranteed. In that opinion the EESC also asked for clarification of the impact of internalising costs on economic competitiveness in general and transport in particular. The Commission itself had noted that ‘less than half the external environmental costs .... are internalised by the market prices’, thereby encouraging ‘unsustainable ... demand’
   (16)
  .

| 3.18 | The EESC would like to know when and where the Commission finally plans to have this debate. We believe that Sustainable Development Strategy is exactly the right context for doing so. The Committee regrets that a communication on the use of market-based instruments for environmental policy in the internal market, which was promised over two years ago, is still not forthcoming. |
| --- | --- |

3.18

The EESC would like to know when and where the Commission finally plans to have this debate. We believe that Sustainable Development Strategy is exactly the right context for doing so. The Committee regrets that a communication on the use of market-based instruments for environmental policy in the internal market, which was promised over two years ago, is still not forthcoming.

| 3.19 | The EESC also regrets the Commission's relative lack of commitment in the statement: ‘Member States should, together with the Commission, exchange experiences and best practice on shifting taxation from labour to consumption and /or pollution in a revenue-neutral way, to contribute to the EU goals of increasing employment and of protecting the environment.’ The EESC asks the Commission to take steps without delay to undertake the necessary research and pass on the findings with an evaluation and impact assessment in the form of a communication addressed to the European institutions. |
| --- | --- |

3.19

The EESC also regrets the Commission's relative lack of commitment in the statement: ‘Member States should, together with the Commission, exchange experiences and best practice on shifting taxation from labour to consumption and /or pollution in a revenue-neutral way, to contribute to the EU goals of increasing employment and of protecting the environment.’ The EESC asks the Commission to take steps without delay to undertake the necessary research and pass on the findings with an evaluation and impact assessment in the form of a communication addressed to the European institutions.

| 3.20 | As well as abandoning an old EU virtue, that of formulating clear goals and setting clear deadlines, the absence of discussion about possible instruments and their impact is another major failure of the communication. Of course, this avoids possible conflicts, but the EESC has called several times for such a critical discussion with all those concerned to be actively sought, since without it no substantial progress can be made on the sustainability agenda. |
| --- | --- |

3.20

As well as abandoning an old EU virtue, that of formulating clear goals and setting clear deadlines, the absence of discussion about possible instruments and their impact is another major failure of the communication. Of course, this avoids possible conflicts, but the EESC has called several times for such a critical discussion with all those concerned to be actively sought, since without it no substantial progress can be made on the sustainability agenda.

| 3.21 | The Committee welcomes the announcement that national strategies are to be better aligned with European strategies. But as said, this requires a real European strategy, not just one on paper that merely blends long-established positions, declarations of intent and programmes that have so far not succeeded in adequately reversing negative trends. |
| --- | --- |

3.21

The Committee welcomes the announcement that national strategies are to be better aligned with European strategies. But as said, this requires a real European strategy, not just one on paper that merely blends long-established positions, declarations of intent and programmes that have so far not succeeded in adequately reversing negative trends.

| 3.22 | The Commission document assigns impact assessments a key role in improving coherence between different initiatives and their different phases (planning, implementation, etc.). However, it is essential to bear in mind that such assessments should not be based solely on costs incurred, but must also take account of economic, social and environmental benefits (17). A criterion similar to the ‘competitiveness test’ should therefore be designed to ensure that these last two dimensions are not neglected. |
| --- | --- |

3.22

The Commission document assigns impact assessments a key role in improving coherence between different initiatives and their different phases (planning, implementation, etc.). However, it is essential to bear in mind that such assessments should not be based solely on costs incurred, but must also take account of economic, social and environmental benefits (17). A criterion similar to the ‘competitiveness test’ should therefore be designed to ensure that these last two dimensions are not neglected.

| 3.22.1 | The Committee reiterates its view that eligibility for project funding under the various programmes and budget headings should be based on the criterion of sustainable development (18). This should also be taken into account when evaluating the effectiveness of spending. |
| --- | --- |

3.22.1

The Committee reiterates its view that eligibility for project funding under the various programmes and budget headings should be based on the criterion of sustainable development (18). This should also be taken into account when evaluating the effectiveness of spending.

Lack of clear governance

| 3.23 | The EESC sees another weakness in the Commission document in addition to the absence of clear objectives and a discussion of instruments, namely that the Commission does not answer the question of how responsibility is to be shared. This is a delicate issue, since some of the measures planned fall within the remit of the Community (e.g. trade policy), whereas others are more a matter for national governments (e.g. energy) or for coordination at European level (e.g. social policy). Yet another dimension — the global — can be added to this range of remits (see above). |
| --- | --- |

3.23

The EESC sees another weakness in the Commission document in addition to the absence of clear objectives and a discussion of instruments, namely that the Commission does not answer the question of how responsibility is to be shared. This is a delicate issue, since some of the measures planned fall within the remit of the Community (e.g. trade policy), whereas others are more a matter for national governments (e.g. energy) or for coordination at European level (e.g. social policy). Yet another dimension — the global — can be added to this range of remits (see above).

| 3.24 | The EESC considers one of the reasons for the absence of real progress on sustainable development to be the sheer number of strategies, action plans, etc., as well as the changes they have undergone over the years to reflect political priorities. In accordance with the guiding principles for sustainable development set out by the European Council of June 2005 (19), the Committee believes that it is up to the Commission to clearly state which level of authority is responsible for measures taken. That level should then give an undertaking to the parties concerned to ensure stability, also in the longer term, and consistency with other measures. |
| --- | --- |

3.24

The EESC considers one of the reasons for the absence of real progress on sustainable development to be the sheer number of strategies, action plans, etc., as well as the changes they have undergone over the years to reflect political priorities. In accordance with the guiding principles for sustainable development set out by the European Council of June 2005 (19), the Committee believes that it is up to the Commission to clearly state which level of authority is responsible for measures taken. That level should then give an undertaking to the parties concerned to ensure stability, also in the longer term, and consistency with other measures.

| 3.25 | In view of the principles set out in the White Paper on European governance and the intention stated in the White Paper on European communication policy to ‘close the gap’ between the EU and its citizens, and further to the consultative forum on sustainable development held on 20-21 March 2006, the Committee considers ongoing, formal consultation with stakeholders to be essential in order to translate mobilisation of operators on the ground into definite progress and to put sustainable development into practice. It will therefore take on the task of creating a database similar to the one it already manages on the single market (PRISM). The aim will be to identify obstacles encountered by operators, promote best practice, provide information on the organisations responsible for these innovative projects, establish a bottom-up approach and enhance the expertise available to the Commission in particular when it draws up proposals for directives, impact analyses and communications. |
| --- | --- |

3.25

In view of the principles set out in the White Paper on European governance and the intention stated in the White Paper on European communication policy to ‘close the gap’ between the EU and its citizens, and further to the consultative forum on sustainable development held on 20-21 March 2006, the Committee considers ongoing, formal consultation with stakeholders to be essential in order to translate mobilisation of operators on the ground into definite progress and to put sustainable development into practice. It will therefore take on the task of creating a database similar to the one it already manages on the single market (PRISM). The aim will be to identify obstacles encountered by operators, promote best practice, provide information on the organisations responsible for these innovative projects, establish a bottom-up approach and enhance the expertise available to the Commission in particular when it draws up proposals for directives, impact analyses and communications.

| 3.26 | The Committee also believes that the reform of the International Monetary Fund announced in 2008 provides the European delegation with an opportunity to speak with one voice in order to ensure that the concept of sustainable development becomes one of the conditions for granting aid. |
| --- | --- |

3.26

The Committee also believes that the reform of the International Monetary Fund announced in 2008 provides the European delegation with an opportunity to speak with one voice in order to ensure that the concept of sustainable development becomes one of the conditions for granting aid.

| 3.27 | The EESC welcomes the Commission's stated intention to review the sustainability process every two years in a progress report, involving both the European Council and the European Parliament, and also making use of the EESC and the CoR in their role as social catalysts. |
| --- | --- |

3.27

The EESC welcomes the Commission's stated intention to review the sustainability process every two years in a progress report, involving both the European Council and the European Parliament, and also making use of the EESC and the CoR in their role as social catalysts.

Link to modern industrial policy and research

| 3.28 | The Commission's recent communication on the new industrial policy (20) announced that a high-level group on competitiveness, energy and the environment would be set up and that there would be discussion of the external aspects of competitiveness and market access (spring 2006) and of managing structural change in manufacturing (end of 2005). The Committee welcomes the setting-up of the High Level Group (in February 2006) and its remit (21) and is willing to support it in its work if necessary. It also hopes that the discussions which will be defined by the Commission at a later stage will be consistent with its commitment to make proper use of synergies between European policies and to make trade-offs so that the objective of sustainability can be achieved. |
| --- | --- |

3.28

The Commission's recent communication on the new industrial policy (20) announced that a high-level group on competitiveness, energy and the environment would be set up and that there would be discussion of the external aspects of competitiveness and market access (spring 2006) and of managing structural change in manufacturing (end of 2005). The Committee welcomes the setting-up of the High Level Group (in February 2006) and its remit (21) and is willing to support it in its work if necessary. It also hopes that the discussions which will be defined by the Commission at a later stage will be consistent with its commitment to make proper use of synergies between European policies and to make trade-offs so that the objective of sustainability can be achieved.

| 3.29 | Although the Committee fully supports the target of earmarking 3 % of GDP for R&D (with two thirds of funding provided by the private sector), it considers that this investment and the resulting innovation must be part of an overall plan to promote sustainable development. As far as possible, the Commission should present — in collaboration with Eurostat and its national counterparts — a regular report summarising the situation, in order to ensure consistency between the Lisbon strategy and the overarching sustainable development strategy. If necessary it should put forward recommendations in the integrated guidelines to guarantee that they are compatible and create synergies. |
| --- | --- |

3.29

Although the Committee fully supports the target of earmarking 3 % of GDP for R&D (with two thirds of funding provided by the private sector), it considers that this investment and the resulting innovation must be part of an overall plan to promote sustainable development. As far as possible, the Commission should present — in collaboration with Eurostat and its national counterparts — a regular report summarising the situation, in order to ensure consistency between the Lisbon strategy and the overarching sustainable development strategy. If necessary it should put forward recommendations in the integrated guidelines to guarantee that they are compatible and create synergies.

4.   Comments on some of the key issues described in the Commission document

4.1   ‘Climate change and clean energy’

| 4.1.1 | The EESC is dismayed to note that the Commission concedes almost with resignation that climate change can no longer be prevented and that the only thing that can now be done is to soften the impact for those most affected. |
| --- | --- |

4.1.1

The EESC is dismayed to note that the Commission concedes almost with resignation that climate change can no longer be prevented and that the only thing that can now be done is to soften the impact for those most affected.

| 4.1.2 | The ‘key actions’ on this issue are no more than declarations of intent and cautious verbal undertakings to work towards further commitments and international agreements. The failure to set clear goals in this policy area is particularly alarming since it is already clear that current targets for reducing greenhouse gas emissions by 2012 will probably not be met, despite the mounting danger and the now undeniable occurrence of serious storms with catastrophic consequences for people and economies. |
| --- | --- |

4.1.2

The ‘key actions’ on this issue are no more than declarations of intent and cautious verbal undertakings to work towards further commitments and international agreements. The failure to set clear goals in this policy area is particularly alarming since it is already clear that current targets for reducing greenhouse gas emissions by 2012 will probably not be met, despite the mounting danger and the now undeniable occurrence of serious storms with catastrophic consequences for people and economies.

| 4.1.3 | The EESC nevertheless welcomes the rather general statements about harnessing EU potential to improve efficiency and develop technologies in the sphere of renewable energy and energy consumption. The Committee endorses these Commission targets, but urges the Council and the Commission to establish clear and genuinely ambitious objectives, to define the instruments for achieving these objectives and to discuss them with all those involved. |
| --- | --- |

4.1.3

The EESC nevertheless welcomes the rather general statements about harnessing EU potential to improve efficiency and develop technologies in the sphere of renewable energy and energy consumption. The Committee endorses these Commission targets, but urges the Council and the Commission to establish clear and genuinely ambitious objectives, to define the instruments for achieving these objectives and to discuss them with all those involved.

| 4.1.4 | It seems that industry may now be on the verge of a breakthrough with regard to CO2-free coal-fired power stations. Under a sustainability strategy the question should certainly be raised of what framework (and therefore instruments) policy-makers should establish in order to promote the application of this technology. |
| --- | --- |

4.1.4

It seems that industry may now be on the verge of a breakthrough with regard to CO2-free coal-fired power stations. Under a sustainability strategy the question should certainly be raised of what framework (and therefore instruments) policy-makers should establish in order to promote the application of this technology.

4.2   ‘Social exclusion, demography and migration’

| 4.2.1 | Although the Committee is pleased that the platform for action regards combating poverty and social exclusion as more than just a question of increasing low incomes, it considers the proposed key actions to be quite inadequate. In particular, the Commission should update the Laeken indicators (22) on quality of work (23) and strengthen this dimension in the guidelines. |
| --- | --- |

4.2.1

Although the Committee is pleased that the platform for action regards combating poverty and social exclusion as more than just a question of increasing low incomes, it considers the proposed key actions to be quite inadequate. In particular, the Commission should update the Laeken indicators (22) on quality of work (23) and strengthen this dimension in the guidelines.

| 4.2.2 | The Commission says that it will consult the social partners on the issue of the work-life balance. If the social partners consider that measures are called for but fail to reach an agreement in accordance with Treaty Article 139, the Committee believes that the Commission and the EU legislature should take action. This approach should also be adopted in the other spheres mentioned. |
| --- | --- |

4.2.2

The Commission says that it will consult the social partners on the issue of the work-life balance. If the social partners consider that measures are called for but fail to reach an agreement in accordance with Treaty Article 139, the Committee believes that the Commission and the EU legislature should take action. This approach should also be adopted in the other spheres mentioned.

4.3   ‘Management of natural resources’

| 4.3.1 | The key actions for natural resources also sound rather non-committal or downright impracticable. Thus the Commission writes: ‘The EU and Member States should ensure sufficient funding and management of the Natura 2000 network of protected areas, and better integrate biodiversity concerns into internal and external policies to halt the loss of biodiversity’. Given the financial decisions taken by the EU Council in December 2005, which cut funding precisely in this sector, it will be immediately obvious to the general public just how much aspirations differ from reality in EU policy. |
| --- | --- |

4.3.1

The key actions for natural resources also sound rather non-committal or downright impracticable. Thus the Commission writes: ‘The EU and Member States should ensure sufficient funding and management of the Natura 2000 network of protected areas, and better integrate biodiversity concerns into internal and external policies to halt the loss of biodiversity’. Given the financial decisions taken by the EU Council in December 2005, which cut funding precisely in this sector, it will be immediately obvious to the general public just how much aspirations differ from reality in EU policy.

| 4.3.2 | The ‘Operational objectives and targets’ for ‘Better management of natural resources’ set out in Annex 2 merely repeat already familiar and adopted policies, such as the target published in a 1997 (!) White Paper (24) of achieving a 12 % share of renewable energy sources in the energy mix by 2010, but which the Commission itself in its communication of 26 May 2004 (25) assumes it will probably not meet using current measures. But no new measures are proposed and no analysis is made of the reasons for the likely failure. |
| --- | --- |

4.3.2

The ‘Operational objectives and targets’ for ‘Better management of natural resources’ set out in Annex 2 merely repeat already familiar and adopted policies, such as the target published in a 1997 (!) White Paper (24) of achieving a 12 % share of renewable energy sources in the energy mix by 2010, but which the Commission itself in its communication of 26 May 2004 (25) assumes it will probably not meet using current measures. But no new measures are proposed and no analysis is made of the reasons for the likely failure.

| 4.3.3 | Here too, the EESC believes that setting out ambitious and forward-looking goals — like Sweden for example at the beginning of February 2006 — would give the sustainability strategy greater impact, attention and support than these vague declarations of intent that are neither new nor appropriate to the current situation. Sweden has famously set itself the objective of replacing fossil fuels and abandoning nuclear energy in the long term. |
| --- | --- |

4.3.3

Here too, the EESC believes that setting out ambitious and forward-looking goals — like Sweden for example at the beginning of February 2006 — would give the sustainability strategy greater impact, attention and support than these vague declarations of intent that are neither new nor appropriate to the current situation. Sweden has famously set itself the objective of replacing fossil fuels and abandoning nuclear energy in the long term.

| 4.3.4 | In addition, an objective could be set for energy saving and efficiency that would both go down well with the general public and be forward-looking and encouraging of innovation, e.g. that all new constructions in the European Union should by 2020 be ‘zero-energy buildings’ which need no extra energy input. |
| --- | --- |

4.3.4

In addition, an objective could be set for energy saving and efficiency that would both go down well with the general public and be forward-looking and encouraging of innovation, e.g. that all new constructions in the European Union should by 2020 be ‘zero-energy buildings’ which need no extra energy input.

4.4   ‘Sustainable transport’

| 4.4.1 | First, ‘current trends’ in transport are described as ‘unsustainable’. |
| --- | --- |

4.4.1

First, ‘current trends’ in transport are described as ‘unsustainable’.

| 4.4.2 | The Commission then states: ‘The benefits of mobility can be provided with much lower economic, social and environmental impacts. This can be done by reducing the need for transport (e.g. by changing land-use, promoting telecommuting and videoconferencing), making better use of infrastructure and of vehicles, changing modes, for example to use rail instead of road, cycling and walking for short distances and developing public transport, using cleaner vehicles and developing alternatives to oil such as bio-fuels and hydrogen powered vehicles.’ This is consistent with the EESC's opinion on ‘Preparing transport infrastructure for the future: planning and neighbouring countries — sustainable mobility — financing’ (26). The Commission also says that ‘the benefits of more sustainable transport are wide ranging and significant’. |
| --- | --- |

4.4.2

The Commission then states: ‘The benefits of mobility can be provided with much lower economic, social and environmental impacts. This can be done by reducing the need for transport (e.g. by changing land-use, promoting telecommuting and videoconferencing), making better use of infrastructure and of vehicles, changing modes, for example to use rail instead of road, cycling and walking for short distances and developing public transport, using cleaner vehicles and developing alternatives to oil such as bio-fuels and hydrogen powered vehicles.’ This is consistent with the EESC's opinion on ‘Preparing transport infrastructure for the future: planning and neighbouring countries — sustainable mobility — financing’ (26). The Commission also says that ‘the benefits of more sustainable transport are wide ranging and significant’.

| 4.4.3 | The EESC in principle welcomes these statements and references to the ‘win-win’ situation. Why then, we wonder, despite all these advantages and opportunities, does the Commission constantly refer to negative trends, e.g. in transport? |
| --- | --- |

4.4.3

The EESC in principle welcomes these statements and references to the ‘win-win’ situation. Why then, we wonder, despite all these advantages and opportunities, does the Commission constantly refer to negative trends, e.g. in transport?

| 4.4.4 | There must be reasons that people and businesses invest in and prefer non-sustainable transport despite all the advantages of sustainable transport described by the Commission. These motives are not analysed, but no proper counter-strategies can be developed unless they are. |
| --- | --- |

4.4.4

There must be reasons that people and businesses invest in and prefer non-sustainable transport despite all the advantages of sustainable transport described by the Commission. These motives are not analysed, but no proper counter-strategies can be developed unless they are.

| 4.4.5 | The Commission mentions three key actions in relation to transport:






  — | ‘The EU and its Member States should focus on making alternatives to road transport a more attractive option for freight and passengers, ... .’ (The EESC notes that the Commission does not promise to stop investing money in non-sustainable options.) |
| --- | --- | --- |

4.4.5

The Commission mentions three key actions in relation to transport:

—

‘The EU and its Member States should focus on making alternatives to road transport a more attractive option for freight and passengers, ... .’ (The EESC notes that the Commission does not promise to stop investing money in non-sustainable options.)

| — | ‘The European Commission will continue to examine the use of infrastructure charging in the EU, ... .’(The EESC notes that the Commission does not say it will introduce full charging for infrastructure and the additional external costs.) |
| --- | --- |

—

‘The European Commission will continue to examine the use of infrastructure charging in the EU, ... .’(The EESC notes that the Commission does not say it will introduce full charging for infrastructure and the additional external costs.)

| — | ‘The Commission will propose a package of measures to improve the environmental performance of cars by promoting clean and energy efficient vehicles ... .’ (The EESC welcomes this.) |
| --- | --- |

—

‘The Commission will propose a package of measures to improve the environmental performance of cars by promoting clean and energy efficient vehicles ... .’ (The EESC welcomes this.)

| 4.4.6 | The EESC is very doubtful that these key actions will enable the EU to control the rising transport congestion that the sustainable development strategy (27) laments, so that traffic can be adequately reduced. The demands and statements set out in the key actions are far less radical than those contained in earlier EU documents, e.g. the ‘Citizens' Network’ Green Paper or in the White Paper on transport policy (28). |
| --- | --- |

4.4.6

The EESC is very doubtful that these key actions will enable the EU to control the rising transport congestion that the sustainable development strategy (27) laments, so that traffic can be adequately reduced. The demands and statements set out in the key actions are far less radical than those contained in earlier EU documents, e.g. the ‘Citizens' Network’ Green Paper or in the White Paper on transport policy (28).

| 4.4.7 | Setting an objective, for example, of Europe approving only emission-free cars by the year 2020 or 2025 would present the sustainability strategy to the general public in a much more appealing way, and is much more ambitious and likely to succeed. This would create strong incentives for research and development, accelerate technological innovation and increase the competitiveness of European cars, which in turn would benefit Europe's economic development. It is also a technological approach that could help prevent the rise in transport levels in certain developing countries towards the levels of the industrialised world from leading to environmental and climate collapse. |
| --- | --- |

4.4.7

Setting an objective, for example, of Europe approving only emission-free cars by the year 2020 or 2025 would present the sustainability strategy to the general public in a much more appealing way, and is much more ambitious and likely to succeed. This would create strong incentives for research and development, accelerate technological innovation and increase the competitiveness of European cars, which in turn would benefit Europe's economic development. It is also a technological approach that could help prevent the rise in transport levels in certain developing countries towards the levels of the industrialised world from leading to environmental and climate collapse.

| 4.4.8 | Such strategic goal-setting in transport, and implementation of EESC calls for sustainable transport development (29), would be worthy of a European strategy for sustainable development, and would allow the ‘win-win’ effects that are often evoked to become a reality. |
| --- | --- |

4.4.8

Such strategic goal-setting in transport, and implementation of EESC calls for sustainable transport development (29), would be worthy of a European strategy for sustainable development, and would allow the ‘win-win’ effects that are often evoked to become a reality.

4.5   ‘Global poverty and development challenges’

| 4.5.1 | The communication must be criticised for more or less recycling demands that the EU has been making for years, but which have not been implemented. One example of this is the key action of the sixth priority, global challenges, whereby ‘The EU and its Member States should increase their volume of aid to 0.7 % of Gross National Income (GNI) in 2015 achieving an intermediate target of 0.56 % in 2010 with individual objectives of 0.51 % for the EU-15 and 0.17 % for the EU-10.’ The EESC does not in any way question the legitimacy of this demand (30). But it notes that the industrialised nations already promised at the UN General Assembly meeting of 24 October 1970 — over 35 years ago — to commit 0.7 % of their GDP to development aid (which obviously was not enough to solve all the problems). Constantly repeating promises that are not kept does not exactly make politics more credible. |
| --- | --- |

4.5.1

The communication must be criticised for more or less recycling demands that the EU has been making for years, but which have not been implemented. One example of this is the key action of the sixth priority, global challenges, whereby ‘The EU and its Member States should increase their volume of aid to 0.7 % of Gross National Income (GNI) in 2015 achieving an intermediate target of 0.56 % in 2010 with individual objectives of 0.51 % for the EU-15 and 0.17 % for the EU-10.’ The EESC does not in any way question the legitimacy of this demand (30). But it notes that the industrialised nations already promised at the UN General Assembly meeting of 24 October 1970 — over 35 years ago — to commit 0.7 % of their GDP to development aid (which obviously was not enough to solve all the problems). Constantly repeating promises that are not kept does not exactly make politics more credible.

| 4.5.2 | The Committee obviously commends all the measures announced to combat global poverty. The Commission undertakes to step up its efforts to ensure that international trade is used as an instrument for promoting truly sustainable development. This is undoubtedly an extremely important approach, perhaps the decisive one from a global perspective. The WTO agreement is a trade agreement and therefore contains no sustainability criteria, although global trade has crucial effects on sustainability trends. The Council and the Commission should therefore highlight this important point, while at the same time outlining how the principle is to be put into practice. |
| --- | --- |

4.5.2

The Committee obviously commends all the measures announced to combat global poverty. The Commission undertakes to step up its efforts to ensure that international trade is used as an instrument for promoting truly sustainable development. This is undoubtedly an extremely important approach, perhaps the decisive one from a global perspective. The WTO agreement is a trade agreement and therefore contains no sustainability criteria, although global trade has crucial effects on sustainability trends. The Council and the Commission should therefore highlight this important point, while at the same time outlining how the principle is to be put into practice.

| 4.5.3 | This is also important in terms of making the general public aware that this is not a mere declaration of intent. It is clear to the EESC that financial support alone will not sustainably improve the living and working conditions of people in developing countries.
  The Committee also recalls that the EU Council Conclusions on the Social Dimension of Globalisation (March 2005) placed the concept of ‘decent work’ at the heart of EU external policy. The Committee is not prepared to accept that certain countries should enjoy a competitive advantage by flouting ILO or environmental standards. These standards are not a protectionist ploy on the part of the rich countries; they help to guarantee human dignity, social progress and justice. The EU should take steps to monitor progress in these areas and launch trade sanctions — if possible in conjunction with the trading partners recognised by the ILO in the countries concerned (or the recognised civil society organisations operating in those countries) — if evaluation shows that the situation has deteriorated. It is regrettable that the Commission does not refer to this in the present communication. |
| --- | --- |

4.5.3

This is also important in terms of making the general public aware that this is not a mere declaration of intent. It is clear to the EESC that financial support alone will not sustainably improve the living and working conditions of people in developing countries.

The Committee also recalls that the EU Council Conclusions on the Social Dimension of Globalisation (March 2005) placed the concept of ‘decent work’ at the heart of EU external policy. The Committee is not prepared to accept that certain countries should enjoy a competitive advantage by flouting ILO or environmental standards. These standards are not a protectionist ploy on the part of the rich countries; they help to guarantee human dignity, social progress and justice. The EU should take steps to monitor progress in these areas and launch trade sanctions — if possible in conjunction with the trading partners recognised by the ILO in the countries concerned (or the recognised civil society organisations operating in those countries) — if evaluation shows that the situation has deteriorated. It is regrettable that the Commission does not refer to this in the present communication.

| 4.6 | At a general level, the Committee calls on the Commission and the Member States to show their trading partners that sustainable development must not be seen as a cost factor, but rather as a wealth generator both for their economies, where they aspire to a higher standard of living, and for the planet as a whole. |
| --- | --- |

4.6

At a general level, the Committee calls on the Commission and the Member States to show their trading partners that sustainable development must not be seen as a cost factor, but rather as a wealth generator both for their economies, where they aspire to a higher standard of living, and for the planet as a whole.

Brussels, 17 May 2006

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  COM(2005) 658 final.

1

(2)  OJ C 117 of 30.4.2004, p. 22.

2

(3)  OJ C 267 of 27.10.2005, p. 22.

3

(4)  COM(2005) 37 final of 9.2.2005.

4

(5)

5

| 1) | COM(2005) 658, Communication on the review of the Sustainable Development Strategy – A platform for action (13.12.2005) (http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/com/2005/com2005_0658en01.pdf). |
| --- | --- |

1)

COM(2005) 658, Communication on the review of the Sustainable Development Strategy – A platform for action (13.12.2005) (http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/com/2005/com2005_0658en01.pdf).

| 2) | EUROSTAT report: Measuring progress towards a more sustainable Europe – Sustainable development indicators for the European Union – Data 1990-2005 (13.12.2005). |
| --- | --- |

2)

EUROSTAT report: Measuring progress towards a more sustainable Europe – Sustainable development indicators for the European Union – Data 1990-2005 (13.12.2005).

| 3) | Presidency conclusions of the European Council on Guiding Principles for Sustainable Development (16-17.6.2005). (http://ue.eu.int/ueDocs/cms_Data/docs/pressData/en/ec/85349.pdf). |
| --- | --- |

3)

Presidency conclusions of the European Council on Guiding Principles for Sustainable Development (16-17.6.2005). (http://ue.eu.int/ueDocs/cms_Data/docs/pressData/en/ec/85349.pdf).

| 4) | COM(2005) 37: The 2005 Review of the European Union Strategy for Sustainable Development: Initial Stocktaking and Future Orientations (9.2.2005) (http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/com/2005/com2005_0037en01.pdf). |
| --- | --- |

4)

COM(2005) 37: The 2005 Review of the European Union Strategy for Sustainable Development: Initial Stocktaking and Future Orientations (9.2.2005) (http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/com/2005/com2005_0037en01.pdf).

| 5) | Commission Staff Working Document, SEC(2005) 225. |
| --- | --- |

5)

Commission Staff Working Document, SEC(2005) 225.

(6)  OJ C 117 of 30.4.2004, p. 22.

6

(7)  OJ C 325 of 24.12.2002, p. 5.

7

(8)  http://www.cpi.cam.ac.uk/bep/downloads/CLG_pressrelease_letter.pdf.

8

(9)  In particular the following:

9

| | ‘The effects of environmental policy on European business and its competitiveness: a framework for analysis’, SEC(2004) 769. |
| --- | --- |

‘The effects of environmental policy on European business and its competitiveness: a framework for analysis’, SEC(2004) 769.

| | ‘Commission staff working document on the links between employment policies and environment policies’, SEC(2005) 1530. |
| --- | --- |

‘Commission staff working document on the links between employment policies and environment policies’, SEC(2005) 1530.

| | ‘Employment and productivity and their contribution to economic growth’, SEC(2004) 690. |
| --- | --- |

‘Employment and productivity and their contribution to economic growth’, SEC(2004) 690.

(10)  cf. EESC opinion on The Proposal for a Council Regulation on support for rural development by the European Agricultural Fund for Rural Development (EAFRD), OJ C 234 of 22.9.2005, p. 32; and its exploratory opinion on The role of sustainable development within the forthcoming financial perspectives, OJ C 267 of 27.10.2005, p. 22.

10

The Proposal for a Council Regulation on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)

The role of sustainable development within the forthcoming financial perspectives

(11)  cf. Speech given on 12 January 2006 by the Agriculture Commissioner, Mariann Fischer Boel, at the International Green Week.

11

(12)  COM(2005) 658, Annex 2, p. 30.

12

(13)  That communication envisaged some very broad objectives, such as the need for long-term CO2 reductions of 70 % (COM(2003) 745 final/2.

13

2

(14)  OJ C 117 of 30.4.2004, p. 22, point 2.2.7.

14

(15)  See point 1.3 of the EESC's own-initiative opinion on Renewable energy sources, adopted on 15 December 2005, OJ C 65 of 17.03.2006, p. 105

15

Renewable energy sources

(16)  SEC(1999) 1942 of 24.11.1999, p. 14.

16

(17)  See Commission communication on assessing adminstrative costs, COM(2005) 518.

17

(18)  See exploratory opinion on The role of sustainable development within the forthcoming financial perspectives, OJ C 267 of 27.10.2005, p. 22.

18

The role of sustainable development within the forthcoming financial perspectives

(19)  See Annex I of the Conclusions of the European Council of 16 and 17 June 2005, ‘Declaration on Guiding Principles for Sustainable Development’.

19

(20)  ‘Implementing a Community Lisbon Programme: A policy framework to strengthen EU manufacturing – towards a more integrated approach for industrial policy’, COM(2005) 474.

20

(21)  See press release IP/06/2006.

21

(22)  Intrinsic job quality: skills, lifelong learning and career development; gender equality; health and safety at work; flexibility and security; inclusion and access to the labour market; work organisation and work-life balance; social dialogue and worker involvement; diversity and non-discrimination; overall work performance.

22

(23)  Cf. ‘Improving quality in work: a review of recent progress’, COM(2003) 728.

23

(24)  COM(1997) 599 final.

24

(25)  COM(2004) 366 final.

25

(26)  OJ C 108 of 30.4.2004, p. 35.

26

(27)  COM(2001) 264.

27

(28)  White Paper on ‘European Transport Policy for 2010: time to decide’, 2001.

28

(29)  cf. EESC own-initiative opinion on Preparing transport infrastructure for the future: planning and neighbouring countries – sustainable mobility – financing, which also contains a discussion about possible fiscal instruments, OJ C 108 of 30.4.2004, p. 35

29

Preparing transport infrastructure for the future: planning and neighbouring countries – sustainable mobility – financing

(30)  See EESC opinion on Integrating environment and sustainable development into economic and development cooperation policy, OJ C 14 of 16.1.2001, p. 87.

30

Integrating environment and sustainable development into economic and development cooperation policy

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/37 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/37

---

Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council on the assessment and management of floods

(COM(2006) 15 final — 2006/0005 (COD))

(2006/C 195/09)

On 13 February 2006, the Council decided to consult the European Economic and Social Committee, under Article 175(1) of the Treaty establishing the European Community, on the abovementioned proposal.

The Section for Agriculture, Rural Development and the Environment, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 26 April 2006. The rapporteur was Ms Sánchez Miguel.

At its 427th plenary session, held on 17 and 18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 141 votes to none, with three abstentions.

1.   Conclusions and recommendations

| 1.1 | The EESC welcomes the Commission's Proposal for a Directive on floods, as called for in the Committee opinion (1) on the earlier Communication, especially since this proposal incorporates the methodology and instruments created by the Water Framework Directive (WFD). With the inclusion in the river basin plan of flood risk maps and plans, all activities relating to the management of inland waterways and the connected coastal areas are regulated. |
| --- | --- |

1.1

The EESC welcomes the Commission's Proposal for a Directive on floods, as called for in the Committee opinion (1) on the earlier Communication, especially since this proposal incorporates the methodology and instruments created by the Water Framework Directive (WFD). With the inclusion in the river basin plan of flood risk maps and plans, all activities relating to the management of inland waterways and the connected coastal areas are regulated.

| 1.2 | The effectiveness of these arrangements depends heavily on the preliminary assessment of the situation in the river basins and associated coastal zones, based on a thorough analysis of the current situation, especially in those areas at high risk due to human activity and climate change. |
| --- | --- |

1.2

The effectiveness of these arrangements depends heavily on the preliminary assessment of the situation in the river basins and associated coastal zones, based on a thorough analysis of the current situation, especially in those areas at high risk due to human activity and climate change.

| 1.3 | It is also important to place emphasis on actions to prevent the harmful effects of flooding, including all public information and participation measures. To this end, we call upon the Commission to make particularly sure that these arrangements as provided for in Article 14 of the WFD and the Proposal for a Directive, are included in river basin plans. |
| --- | --- |

1.3

It is also important to place emphasis on actions to prevent the harmful effects of flooding, including all public information and participation measures. To this end, we call upon the Commission to make particularly sure that these arrangements as provided for in Article 14 of the WFD and the Proposal for a Directive, are included in river basin plans.

| 1.4 | The risk management plans and risk mapping, as set out in the proposal, must be extended. The classification of river basins at high risk of flooding should incorporate both priority measures (with adequate funding) and criteria to be met in order to reduce costs and increase the benefits to people. This should result in integrated and sustainable activity in flood areas. |
| --- | --- |

1.4

The risk management plans and risk mapping, as set out in the proposal, must be extended. The classification of river basins at high risk of flooding should incorporate both priority measures (with adequate funding) and criteria to be met in order to reduce costs and increase the benefits to people. This should result in integrated and sustainable activity in flood areas.

| 1.5 | Lastly, it should be added that, in the context of Community measures for multidisciplinary research and coordination, all policies that affect European waters should be strengthened. |
| --- | --- |

1.5

Lastly, it should be added that, in the context of Community measures for multidisciplinary research and coordination, all policies that affect European waters should be strengthened.

2.   Introduction

| 2.1 | There has always been something missing from Directive 2000/60/EC and the Water Framework Directive (WFD): the fixing of an objective to prevent, protect against and mitigate the effects of flooding. In fact, in the last decade, the EU has suffered more than 100 floods, causing great loss of life and significant economic losses. The Commission previously presented a Communication (2) which analysed the situation and proposed concerted action in the European Union. This proposal forms part of that action. |
| --- | --- |

2.1

There has always been something missing from Directive 2000/60/EC and the Water Framework Directive (WFD): the fixing of an objective to prevent, protect against and mitigate the effects of flooding. In fact, in the last decade, the EU has suffered more than 100 floods, causing great loss of life and significant economic losses. The Commission previously presented a Communication (2) which analysed the situation and proposed concerted action in the European Union. This proposal forms part of that action.

| 2.2 | Both the Communication and the proposed Directive emphasise the need for all actions undertaken in the context of water policy to be coordinated with other Community policies for preventing and minimising the effects of flooding. Research policy, using research projects such as FLOODsite to help improve integrated flood risk analysis and management methodologies, and regional policy, through the use of the Structural Funds, in particular the European Regional Development Fund and the CAP, together with decoupling and cross-compliance (3), form an overall package that can deliver better results than action on water alone. |
| --- | --- |

2.2

Both the Communication and the proposed Directive emphasise the need for all actions undertaken in the context of water policy to be coordinated with other Community policies for preventing and minimising the effects of flooding. Research policy, using research projects such as FLOODsite to help improve integrated flood risk analysis and management methodologies, and regional policy, through the use of the Structural Funds, in particular the European Regional Development Fund and the CAP, together with decoupling and cross-compliance (3), form an overall package that can deliver better results than action on water alone.

| 2.3 | The aim of the proposal is to reduce and manage the risks of flooding, which affects people's lives and health, their property, as well as nature and the environment. The incorporation of this proposal into the WFD will make it possible to simplify organisational and administrative procedures, since it fits in with existing river basin districts, in line with the WFD. This means that all actions undertaken to prevent and minimise the risks of flooding should be carried out as part of the river basin plans for each river and that the responsible authorities are the same in both cases and take on this new competence. Furthermore, it is important to note that aligning the timetables of the new proposal with those previously set out in the WFD will increase effectiveness. |
| --- | --- |

2.3

The aim of the proposal is to reduce and manage the risks of flooding, which affects people's lives and health, their property, as well as nature and the environment. The incorporation of this proposal into the WFD will make it possible to simplify organisational and administrative procedures, since it fits in with existing river basin districts, in line with the WFD. This means that all actions undertaken to prevent and minimise the risks of flooding should be carried out as part of the river basin plans for each river and that the responsible authorities are the same in both cases and take on this new competence. Furthermore, it is important to note that aligning the timetables of the new proposal with those previously set out in the WFD will increase effectiveness.

| 2.4 | The EESC agrees with the proposed Directive, which it has examined carefully, and notes that it features many of the suggestions made in the Committee opinion on the 2004 Communication (4). Therefore all that remains is for us to emphasise the task that must be carried out by the Commission; its role in ensuring that the requirements of the WFD are met is the guarantee that they will be properly implemented by the authorities in the Member States, without losing sight of the potentially benefits for third countries that share river basins with the European Union. |
| --- | --- |

2.4

The EESC agrees with the proposed Directive, which it has examined carefully, and notes that it features many of the suggestions made in the Committee opinion on the 2004 Communication (4). Therefore all that remains is for us to emphasise the task that must be carried out by the Commission; its role in ensuring that the requirements of the WFD are met is the guarantee that they will be properly implemented by the authorities in the Member States, without losing sight of the potentially benefits for third countries that share river basins with the European Union.

3.   Summary of the proposal

| 3.1 | The proposal is divided into seven chapters:






  — | The first sets out general provisions, identifying the proposal's objective and defining floods and flood risk to supplement the definitions found in Article 2 of the WFD. |
| --- | --- | --- |

3.1

The proposal is divided into seven chapters:

—

The first sets out general provisions, identifying the proposal's objective and defining floods and flood risk to supplement the definitions found in Article 2 of the WFD.

| — | The second chapter describes preliminary flood risk assessment for each river basin and sets out some minimum requirements in Article 4(2). On the basis of this assessment, the river basins are to be assigned to one of two categories: those with no potential flood risks and those that have significant potential flood risks. This assessment is to be completed at the latest three years after the date of entry into force of this Directive. |
| --- | --- |

—

The second chapter describes preliminary flood risk assessment for each river basin and sets out some minimum requirements in Article 4(2). On the basis of this assessment, the river basins are to be assigned to one of two categories: those with no potential flood risks and those that have significant potential flood risks. This assessment is to be completed at the latest three years after the date of entry into force of this Directive.

| — | The preparation of flood risk maps is provided for in chapter three. These cover not only river basins but also coastal areas that fall within river basin districts. These maps are to take into account the probability of flooding for each geographical area and estimate potential effects on the population, local economy and environment. |
| --- | --- |

—

The preparation of flood risk maps is provided for in chapter three. These cover not only river basins but also coastal areas that fall within river basin districts. These maps are to take into account the probability of flooding for each geographical area and estimate potential effects on the population, local economy and environment.

| — | Flood risk management plans are covered in chapter four, under Article 9 et seq. Member States are to prepare and implement flood risk management plans for each river basin district, on the basis of the preliminary assessment, in order to reduce the probability of flooding and lessen its effects. To this end, the plans must address water management, soil management, spatial planning, land use. In no case may the measures have a negative impact on neighbouring countries. |
| --- | --- |

—

Flood risk management plans are covered in chapter four, under Article 9 et seq. Member States are to prepare and implement flood risk management plans for each river basin district, on the basis of the preliminary assessment, in order to reduce the probability of flooding and lessen its effects. To this end, the plans must address water management, soil management, spatial planning, land use. In no case may the measures have a negative impact on neighbouring countries.

| — | Public information and participation, covered in chapter five, incorporates the provisions of Article 14 of the WFD and should be part of the preparation of both the preliminary assessment and the management plans. |
| --- | --- |

—

Public information and participation, covered in chapter five, incorporates the provisions of Article 14 of the WFD and should be part of the preparation of both the preliminary assessment and the management plans.

| — | Chapter six covers the committee established under Article 21 of the WFD to assist the Commission. |
| --- | --- |

—

Chapter six covers the committee established under Article 21 of the WFD to assist the Commission.

| — | Lastly, chapter seven sets a deadline of 2018 for completion of the Commission reports to the Parliament and the Council, and stipulates that Member States must communicate to the Commission the provisions they have adopted to transpose the Directive no later than two years from the date of its entry into force. |
| --- | --- |

—

Lastly, chapter seven sets a deadline of 2018 for completion of the Commission reports to the Parliament and the Council, and stipulates that Member States must communicate to the Commission the provisions they have adopted to transpose the Directive no later than two years from the date of its entry into force.

4.   Comments on the proposal

| 4.1 | The EESC notes that the inclusion of this proposal in the methodology of the WFD encourages the incorporation of flood management plans into the river basin plans; this ensures that the necessary planning is undertaken for action over the entire length of the river basin and that the measures and actions undertaken by the competent authorities at the various levels (local, State, cross-border, etc.) are compatible and properly coordinated. |
| --- | --- |

4.1

The EESC notes that the inclusion of this proposal in the methodology of the WFD encourages the incorporation of flood management plans into the river basin plans; this ensures that the necessary planning is undertaken for action over the entire length of the river basin and that the measures and actions undertaken by the competent authorities at the various levels (local, State, cross-border, etc.) are compatible and properly coordinated.

| 4.2 | Furthermore, the integration of flood management in the WFD conceptually supports the definition of flooding as a natural and normal phenomena in river and coastal systems. Flood risk is defined in terms of the negative impact on human health, the environment, economic activity and consequently to damage to the bodies of water covered by the WFD. |
| --- | --- |

4.2

Furthermore, the integration of flood management in the WFD conceptually supports the definition of flooding as a natural and normal phenomena in river and coastal systems. Flood risk is defined in terms of the negative impact on human health, the environment, economic activity and consequently to damage to the bodies of water covered by the WFD.

| 4.3 | The need for an initial flood risk assessment was one of our main conclusions (5); therefore, we believe that the provisions set out in both Articles 4 and 5 of the proposed Directive will aid the scientific preparation of flood management plans. It is important to mention some of the requirements, such as:






  — | a description of the floods which have occurred in the past; |
| --- | --- | --- |

4.3

The need for an initial flood risk assessment was one of our main conclusions (5); therefore, we believe that the provisions set out in both Articles 4 and 5 of the proposed Directive will aid the scientific preparation of flood management plans. It is important to mention some of the requirements, such as:

—

a description of the floods which have occurred in the past;

| — | a description of flooding processes and their sensitivity to change; |
| --- | --- |

—

a description of flooding processes and their sensitivity to change;

| — | a description of development plans that would entail a change of land use or of allocation of the population and distribution of economic activities resulting in an increase of flood risks. |
| --- | --- |

—

a description of development plans that would entail a change of land use or of allocation of the population and distribution of economic activities resulting in an increase of flood risks.

| 4.4 | In addition, the classification of river basins and coastlines according to whether they are at risk of flooding or not seems very significant. The EESC agrees that the objective of this risk management is to reduce the probability and impact of floods, and to that end it is necessary to classify the actions and measures that can be adopted and the criteria for making the right choice in each case. |
| --- | --- |

4.4

In addition, the classification of river basins and coastlines according to whether they are at risk of flooding or not seems very significant. The EESC agrees that the objective of this risk management is to reduce the probability and impact of floods, and to that end it is necessary to classify the actions and measures that can be adopted and the criteria for making the right choice in each case.

| 4.5 | The EESC suggests to the Commission that the river basin plans provided for in Article 9 and in Annex A be specifically based on the following principles and measures:






  — | Returning river and coastal water systems to their natural state, promoting the recovery of natural spaces and the natural self-regulating functions of basins (reforestation in mountainous areas, the protection of wetlands and associated ecosystems, monitoring erosion and sedimentation in water courses, programmes for finding alternative uses ... etc.). |
| --- | --- | --- |

4.5

The EESC suggests to the Commission that the river basin plans provided for in Article 9 and in Annex A be specifically based on the following principles and measures:

—

Returning river and coastal water systems to their natural state, promoting the recovery of natural spaces and the natural self-regulating functions of basins (reforestation in mountainous areas, the protection of wetlands and associated ecosystems, monitoring erosion and sedimentation in water courses, programmes for finding alternative uses ... etc.).

| — | The principle of achieving sustainable development in flood areas, by:






  — | estimating the exploitable economic potential of land use in these areas which is compatible with natural flood activity; |
| --- | --- | --- |

—

The principle of achieving sustainable development in flood areas, by:

—

estimating the exploitable economic potential of land use in these areas which is compatible with natural flood activity;

| — | planning the transition to these models in the various areas of planning, in particular land-use planning. |
| --- | --- |

—

planning the transition to these models in the various areas of planning, in particular land-use planning.

| 4.6 | In order to increase civil society's involvement in preventing the risks and effects of flooding, it is important that a system of information and participation is developed in all Member States, as provided for in Article 14 of the WFD. To this end, the arrangements for participation should cover both the risk management plans and the preliminary assessments. |
| --- | --- |

4.6

In order to increase civil society's involvement in preventing the risks and effects of flooding, it is important that a system of information and participation is developed in all Member States, as provided for in Article 14 of the WFD. To this end, the arrangements for participation should cover both the risk management plans and the preliminary assessments.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  Opinion CESE 125/2005, OJ C221 of 8 September 2005.

1

(2)  Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions - Flood risk management - Flood prevention, protection and mitigation COM(2004) 472 final of 12/07/2004.

2

(3)  Regulation No 1698/2005 on rural development and the EAFRD.

3

(4)  Opinion CESE 125/2005, see footnote 1, OJ C 221, 8.9.2005.

4

(5)  See points 3.2 and 3.3 of opinion CESE 125/2005, OJ C 221, 8.9.2005.

5

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/40 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/40

---

Opinion of the European Economic and Social Committee on the Proposal for a Council Decision establishing a Community civil protection mechanism (recast)

(COM(2006) 29 final — 2006/0009 (CNS))

(2006/C 195/10)

On 7 March 2006, the Council decided to consult the European Economic and Social Committee, under Article 37 of the Treaty establishing the European Community, on the abovementioned proposal.

The Section for Agriculture, Rural Development and the Environment, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 26 April 2006. The rapporteur was Ms Sánchez Miguel.

At its 427th plenary session held on 17 and 18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 144 votes, with one against and one abstention.

1.   Conclusions and recommendations

| 1.1 | The EESC welcomes the Decision adopted by the Council on the Community civil protection mechanism which, overall, takes up the observations made by the EESC in its Opinion of November 2005 regarding the Communication on improving this mechanism (1). |
| --- | --- |

1.1

The EESC welcomes the Decision adopted by the Council on the Community civil protection mechanism which, overall, takes up the observations made by the EESC in its Opinion of November 2005 regarding the Communication on improving this mechanism (1).

| 1.2 | The EESC wishes to stress that, as a method for simplifying Community legislation, the recasting procedure makes it easier for civil protection authorities in Member States to understand and apply the legislation, enabling them to be more responsive to disasters of both natural and human origin. |
| --- | --- |

1.2

The EESC wishes to stress that, as a method for simplifying Community legislation, the recasting procedure makes it easier for civil protection authorities in Member States to understand and apply the legislation, enabling them to be more responsive to disasters of both natural and human origin.

| 1.3 | By strengthening the action of the mechanism through the provision of greater powers and, above all, increased and improved resources, intervention can be facilitated both inside and outside the EU. The reference to coordination between the mechanism and the UN Office for the Coordination of Humanitarian Affairs is of particular importance. However, the EESC believes that it should be extended to the Red Cross and to the NGOs which operate in affected areas, and should also act as coordinator for the volunteers who play an important role in disaster work. |
| --- | --- |

1.3

By strengthening the action of the mechanism through the provision of greater powers and, above all, increased and improved resources, intervention can be facilitated both inside and outside the EU. The reference to coordination between the mechanism and the UN Office for the Coordination of Humanitarian Affairs is of particular importance. However, the EESC believes that it should be extended to the Red Cross and to the NGOs which operate in affected areas, and should also act as coordinator for the volunteers who play an important role in disaster work.

| 1.4 | Sufficient budget resources are crucial in order for the mechanism to operate properly, and it is also important to recognise the need to improve information, provide transport means, make provision for expert training, etc. The EESC reiterates the necessity of this vital point, and believes that the Commission should have access to these funds and should require the Member States to comply with the obligations so that civil protection can be successfully achieved. |
| --- | --- |

1.4

Sufficient budget resources are crucial in order for the mechanism to operate properly, and it is also important to recognise the need to improve information, provide transport means, make provision for expert training, etc. The EESC reiterates the necessity of this vital point, and believes that the Commission should have access to these funds and should require the Member States to comply with the obligations so that civil protection can be successfully achieved.

2.   Introduction

| 2.1 | The Community civil protection mechanism was set up in 1981 (2); since then, together with the Civil Protection Action Programme (3), it has made it easier to mobilise and coordinate civil protection inside and outside the EU. The experience acquired over the years has made it clear that the mechanism needs to be improved, especially since both the European Parliament and the Council have been appreciative of its intervention in major disasters inside and outside the EU. |
| --- | --- |

2.1

The Community civil protection mechanism was set up in 1981 (2); since then, together with the Civil Protection Action Programme (3), it has made it easier to mobilise and coordinate civil protection inside and outside the EU. The experience acquired over the years has made it clear that the mechanism needs to be improved, especially since both the European Parliament and the Council have been appreciative of its intervention in major disasters inside and outside the EU.

| 2.2 | With the aim of making the mechanism more effective, the Commission issued a Communication (4) proposing a series of improvements, focusing on:






  — | greater coordination between the mechanism and national civil protection systems, and with international organisations, particularly the UN; |
| --- | --- | --- |

2.2

With the aim of making the mechanism more effective, the Commission issued a Communication (4) proposing a series of improvements, focusing on:

—

greater coordination between the mechanism and national civil protection systems, and with international organisations, particularly the UN;

| — | greater preparation of teams, with particular reference to the existence of rapid response modules and the creation of reserve modules in each Member State, available for action within and outside the EU; |
| --- | --- |

—

greater preparation of teams, with particular reference to the existence of rapid response modules and the creation of reserve modules in each Member State, available for action within and outside the EU;

| — | analysis and assessment of needs for each disaster, by means of a warning system using the resources of the Common Emergency Communication and Information System (CECIS); |
| --- | --- |

—

analysis and assessment of needs for each disaster, by means of a warning system using the resources of the Common Emergency Communication and Information System (CECIS);

| — | reinforcing the logistical basis. |
| --- | --- |

—

reinforcing the logistical basis.

| 2.3 | The EESC issued an Opinion (5) on the Communication. It welcomed the proposed improvements, but felt that there were some measures that could be modified in the light of experience, especially that acquired during the recent interventions in response to disasters in Asia. In its Opinion, the EESC made the following suggestions to the Commission aimed at improving the operation of the mechanism:






  — | the CECIS system could be boosted via a satellite-based structure that would help to increase knowledge of disasters and provide the data needed to improve the deployment of resources and people; |
| --- | --- | --- |

2.3

The EESC issued an Opinion (5) on the Communication. It welcomed the proposed improvements, but felt that there were some measures that could be modified in the light of experience, especially that acquired during the recent interventions in response to disasters in Asia. In its Opinion, the EESC made the following suggestions to the Commission aimed at improving the operation of the mechanism:

—

the CECIS system could be boosted via a satellite-based structure that would help to increase knowledge of disasters and provide the data needed to improve the deployment of resources and people;

| — | when training intervention teams, the need for language learning should be taken into consideration, and there should also be a visible identification system for disaster relief workers sent by the EU; |
| --- | --- |

—

when training intervention teams, the need for language learning should be taken into consideration, and there should also be a visible identification system for disaster relief workers sent by the EU;

| — | there should be minimum intervention measures which would be coordinated by the mechanism and with the UN; for this purpose, there should be a centralised technical team on call 24 hours a day, with sufficient funds for it to be operational under optimum conditions; |
| --- | --- |

—

there should be minimum intervention measures which would be coordinated by the mechanism and with the UN; for this purpose, there should be a centralised technical team on call 24 hours a day, with sufficient funds for it to be operational under optimum conditions;

| — | the mechanism should be able to use its own communications and transport resources. |
| --- | --- |

—

the mechanism should be able to use its own communications and transport resources.

3.   Comments on the proposal

| 3.1 | The Council Decision, which recasts the earlier Decision of 23 October 2001 and the aforementioned Communication in one text, falls in line with the Commission's programme to simplify legislation. The recasting method used will facilitate implementation, both for the mechanism and the national authorities responsible for civil protection. The content has also been improved considerably, both in terms of the functioning of the Community civil protection mechanism and the provision of resources required for it to be operational. |
| --- | --- |

3.1

The Council Decision, which recasts the earlier Decision of 23 October 2001 and the aforementioned Communication in one text, falls in line with the Commission's programme to simplify legislation. The recasting method used will facilitate implementation, both for the mechanism and the national authorities responsible for civil protection. The content has also been improved considerably, both in terms of the functioning of the Community civil protection mechanism and the provision of resources required for it to be operational.

| 3.2 | The EESC welcomes this initiative, which aims to clarify the role of the Community body responsible for coordinating disaster intervention inside and outside the EU, particularly as its scope has been extended to include disasters of human origin and terrorist attacks, and accidental marine pollution. |
| --- | --- |

3.2

The EESC welcomes this initiative, which aims to clarify the role of the Community body responsible for coordinating disaster intervention inside and outside the EU, particularly as its scope has been extended to include disasters of human origin and terrorist attacks, and accidental marine pollution.

| 3.3 | Even more important is the inclusion of certain improvements to the mechanism, as suggested by the EESC in its Opinion of 2005. For example, it is worth highlighting the reference in Article 2 to the availability of support from military assets and capacities, which are often essential for swift, efficient intervention. Another of the EESC's proposals was also included: the adoption of measures for transport, logistics and other support at Community level. |
| --- | --- |

3.3

Even more important is the inclusion of certain improvements to the mechanism, as suggested by the EESC in its Opinion of 2005. For example, it is worth highlighting the reference in Article 2 to the availability of support from military assets and capacities, which are often essential for swift, efficient intervention. Another of the EESC's proposals was also included: the adoption of measures for transport, logistics and other support at Community level.

| 3.4 | The EESC reiterates its support for the intervention modules which are to be provided by the Member States and coordinated by the mechanism, and are to remain in constant contact with the CECIS so that, by means of an early warning system, it will be possible to deploy the appropriate resources, including additional means of transport . |
| --- | --- |

3.4

The EESC reiterates its support for the intervention modules which are to be provided by the Member States and coordinated by the mechanism, and are to remain in constant contact with the CECIS so that, by means of an early warning system, it will be possible to deploy the appropriate resources, including additional means of transport .

| 3.5 | One modification has been made that was not mentioned in the Communication, relating to intervention outside the EU. The modification stipulates that it will be the Member State holding the Presidency of the EU Council that will liaise with the affected country. Nonetheless, the CECIS will have information and the Commission will appoint the operational coordination team which, in turn, will coordinate with the UN. The EESC believes that the Community civil protection mechanism should involve EU representation at the highest level in its actions, and it therefore calls for the intervention of the EU's foreign policy high representative; however, it does not consider that the system finally proposed is capable of full implementation. |
| --- | --- |

3.5

One modification has been made that was not mentioned in the Communication, relating to intervention outside the EU. The modification stipulates that it will be the Member State holding the Presidency of the EU Council that will liaise with the affected country. Nonetheless, the CECIS will have information and the Commission will appoint the operational coordination team which, in turn, will coordinate with the UN. The EESC believes that the Community civil protection mechanism should involve EU representation at the highest level in its actions, and it therefore calls for the intervention of the EU's foreign policy high representative; however, it does not consider that the system finally proposed is capable of full implementation.

| 3.6 | It is important to note the new Article 10, which establishes how the Community mechanism will complement national civil protection bodies, which can be given assistance with transport, and the mobilisation of modules and teams able to intervene on the ground. |
| --- | --- |

3.6

It is important to note the new Article 10, which establishes how the Community mechanism will complement national civil protection bodies, which can be given assistance with transport, and the mobilisation of modules and teams able to intervene on the ground.

| 3.7 | Lastly, Article 13 establishes the Commission's power to implement all the measures provided for in the Decision, particularly the availability of resources for intervention, the CECIS, the teams of experts and their training, and any other form of additional support. The EESC welcomes the reference to availability of resources, but believes that these should be quantified so that it is possible to act in each one of the attributed areas of competence. |
| --- | --- |

3.7

Lastly, Article 13 establishes the Commission's power to implement all the measures provided for in the Decision, particularly the availability of resources for intervention, the CECIS, the teams of experts and their training, and any other form of additional support. The EESC welcomes the reference to availability of resources, but believes that these should be quantified so that it is possible to act in each one of the attributed areas of competence.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  Opinion CESE 1491/2005 of 14 December 2005. OJ C 65, 17.3.2006, p. 41.

1

(2)  Decision 2001/792/EC, Euratom.

2

(3)  Council Decision, 1999/847/EC, 9 December.

3

(4)  Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions – Improving the Community Civil Protection Mechanism COM (2005) 137 final.

4

(5)  See note 1.

5

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/42 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/42

---

Opinion of the European Economic and Social Committee on the Green Paper Improving the mental health of the population — Towards a strategy on mental health for the European Union

(COM(2005) 484 final)

(2006/C 195/11)

On 14 October 2005 the Commission decided to consult the European Economic and Social Committee, under Article 262 of the Treaty establishing the European Community, on the abovementioned proposal.

The Section for Employment, Social Affairs and Citizenship, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 3 May 2006. The rapporteur was Mr Bedossa.

At its 427th plenary session, held on 17 and 18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 142 votes to 1 with 1 abstention.

1.   Summary

There can be no ambiguity about the importance of mental health in Europe or the need for a strategy in this area, which:

| — | Covers several different aspects, namely:






  — | improving health education, |
| --- | --- | --- |

—

Covers several different aspects, namely:

—

improving health education,

| — | reacting more rapidly to health threats, |
| --- | --- |

—

reacting more rapidly to health threats,

| — | reducing health inequalities, |
| --- | --- |

—

reducing health inequalities,

| — | guaranteeing a high level of social protection and good health by means of an intersectoral strategy. |
| --- | --- |

—

guaranteeing a high level of social protection and good health by means of an intersectoral strategy.

| — | Defines objectives:






  — | promoting the mental health of all, |
| --- | --- | --- |

—

Defines objectives:

—

promoting the mental health of all,

| — | putting prevention to the fore, |
| --- | --- |

—

putting prevention to the fore,

| — | improving the quality of life of people with a mental illness or psychiatric disability, and |
| --- | --- |

—

improving the quality of life of people with a mental illness or psychiatric disability, and

| — | developing a mental health information system and research programme for the EU. |
| --- | --- |

—

developing a mental health information system and research programme for the EU.

| — | Draws up recommendations, specifically:






  — | a pilot project on the creation of regional information networks linking all the various players, |
| --- | --- | --- |

—

Draws up recommendations, specifically:

—

a pilot project on the creation of regional information networks linking all the various players,

| — | promoting the process of deinstitutionalisation, to make better use of available resources. |
| --- | --- |

—

promoting the process of deinstitutionalisation, to make better use of available resources.

| — | Determines best practice for promoting the social inclusion and protecting the rights of people with a mental illness or psychiatric disability, which should be one of the responsibilities of the European Union's Fundamental Rights Agency. |
| --- | --- |

—

Determines best practice for promoting the social inclusion and protecting the rights of people with a mental illness or psychiatric disability, which should be one of the responsibilities of the European Union's Fundamental Rights Agency.

The emerging recognition of the importance of mental health is connected with several different factors:

| — | the explosion in mass demand throughout society, driven by a shift from psychiatry to mental health, |
| --- | --- |

—

the explosion in mass demand throughout society, driven by a shift from psychiatry to mental health,

| — | the irreversible entry onto the scene of patients and/or their representatives, who now have an impact on all policies, |
| --- | --- |

—

the irreversible entry onto the scene of patients and/or their representatives, who now have an impact on all policies,

| — | the imbalance between hospital and outpatient care and problems of flexibility across the whole spectrum of healthcare from emergency to medico-social services. |
| --- | --- |

—

the imbalance between hospital and outpatient care and problems of flexibility across the whole spectrum of healthcare from emergency to medico-social services.

2.   The issue

| 2.1 | Five of the ten leading causes of disability worldwide are psychiatric conditions, meaning that mental ill health has devastating social and economic consequences for individuals, families and governments. |
| --- | --- |

2.1

Five of the ten leading causes of disability worldwide are psychiatric conditions, meaning that mental ill health has devastating social and economic consequences for individuals, families and governments.

| 2.2 | People with mental health problems often experience discrimination or exclusion and serious violations of their fundamental rights. |
| --- | --- |

2.2

People with mental health problems often experience discrimination or exclusion and serious violations of their fundamental rights.

| 2.3 | There is an association between mental ill health and poverty, which increases the risk of mental illnesses and reduces access to the medical treatment essential to mental health. Accordingly, states should put mental health problems high up on their public health agenda. |
| --- | --- |

2.3

There is an association between mental ill health and poverty, which increases the risk of mental illnesses and reduces access to the medical treatment essential to mental health. Accordingly, states should put mental health problems high up on their public health agenda.

| 2.4 | However, mental health is often not a priority, partly because not all countries have the requisite capacity to establish comprehensive and efficient mental health services. |
| --- | --- |

2.4

However, mental health is often not a priority, partly because not all countries have the requisite capacity to establish comprehensive and efficient mental health services.

| 2.5 | The Community's mental health instrument comes under the European Union's public health programme for 2003-2008, which is based on Article 152 of the EU Treaty. However, the ensuing actions must take account of Member States' competences in relation to organising health services and providing health care. |
| --- | --- |

2.5

The Community's mental health instrument comes under the European Union's public health programme for 2003-2008, which is based on Article 152 of the EU Treaty. However, the ensuing actions must take account of Member States' competences in relation to organising health services and providing health care.

| 2.6 | The Commission's Green Paper aims to launch a broad-ranging debate on managing mental ill health and promoting mental health, at EU level, within the framework of the European Action Plan. Its reasons for doing so are:






  — | There is no health without mental health, which is important both for individuals and societies. Mental health enables individuals to realize their potential and find their roles in social, school and working life and is a vital source of social cohesion for the EU, if it wishes to become a knowledge society. |
| --- | --- | --- |

2.6

The Commission's Green Paper aims to launch a broad-ranging debate on managing mental ill health and promoting mental health, at EU level, within the framework of the European Action Plan. Its reasons for doing so are:

—

There is no health without mental health, which is important both for individuals and societies. Mental health enables individuals to realize their potential and find their roles in social, school and working life and is a vital source of social cohesion for the EU, if it wishes to become a knowledge society.

| — | Mental health problems are a heavy burden. Everyone knows someone close to them who suffers from mental ill health. Mental health problems impair the quality of life of those who suffer from them and their families. Mental ill health is a major cause of disability. |
| --- | --- |

—

Mental health problems are a heavy burden. Everyone knows someone close to them who suffers from mental ill health. Mental health problems impair the quality of life of those who suffer from them and their families. Mental ill health is a major cause of disability.

| — | Mental ill-health has a high social and economic cost and imposes significant losses and burdens on the economic, social and educational as well as criminal and justice systems. Evidence from certain countries shows that mental disorders are one of the leading causes of absence from work, early retirement and disability pensions. |
| --- | --- |

—

Mental ill-health has a high social and economic cost and imposes significant losses and burdens on the economic, social and educational as well as criminal and justice systems. Evidence from certain countries shows that mental disorders are one of the leading causes of absence from work, early retirement and disability pensions.

| — | Stigmatisation, discrimination and non-respect for the human rights and the dignity of people with a mental illness or psychiatric disability still exist. Treatments may fail to respect patients' fundamental rights and dignity, giving rise to feelings of defiance against society and thereby lessening the EU's ‘social capital’. |
| --- | --- |

—

Stigmatisation, discrimination and non-respect for the human rights and the dignity of people with a mental illness or psychiatric disability still exist. Treatments may fail to respect patients' fundamental rights and dignity, giving rise to feelings of defiance against society and thereby lessening the EU's ‘social capital’.

| 2.7 | Following the January 2005 World Health Organisation (WHO) European Ministerial Conference on Mental Health, in October 2005, the European Commission, a collaborating partner of the conference, published a Green Paper on Improving the mental health of the population: Towards a strategy on mental health for the European Union, based on the provisions for public health set out in Article 152 of the EC Treaty, and launched an EU-wide consultation process on mental health. |
| --- | --- |

2.7

Following the January 2005 World Health Organisation (WHO) European Ministerial Conference on Mental Health, in October 2005, the European Commission, a collaborating partner of the conference, published a Green Paper on Improving the mental health of the population: Towards a strategy on mental health for the European Union, based on the provisions for public health set out in Article 152 of the EC Treaty, and launched an EU-wide consultation process on mental health.

| 2.8 | The clearly stated purpose is to improve the mental health of the European population, as an element in a strategy whose policy objectives go beyond the health field itself to include putting Europe ‘back’ on the path to long-term prosperity and improving solidarity, social justice and quality of life. |
| --- | --- |

2.8

The clearly stated purpose is to improve the mental health of the European population, as an element in a strategy whose policy objectives go beyond the health field itself to include putting Europe ‘back’ on the path to long-term prosperity and improving solidarity, social justice and quality of life.

| 2.9 | The Green Paper is intended to stimulate debate and launch a consultation process with the public authorities, health professionals and patient organisations in 2006, resulting in proposals for action at Community level at the end of 2006, that will constitute the EU's strategy on mental health. |
| --- | --- |

2.9

The Green Paper is intended to stimulate debate and launch a consultation process with the public authorities, health professionals and patient organisations in 2006, resulting in proposals for action at Community level at the end of 2006, that will constitute the EU's strategy on mental health.

3.   The analysis and proposals contained in the Green Paper

3.1   An unambiguous statement on the importance of mental health for Europe

| 3.1.1 | According to informed estimates, 27 % of adult Europeans are estimated to experience at least one form of mental ill health during any one year, of which 6.3 % are somatoform disorders, 6.1 % major depressions and 6.1 % phobias. |
| --- | --- |

3.1.1

According to informed estimates, 27 % of adult Europeans are estimated to experience at least one form of mental ill health during any one year, of which 6.3 % are somatoform disorders, 6.1 % major depressions and 6.1 % phobias.

| 3.1.2 | Currently, in the EU, more citizens die from suicide than from road traffic accidents or HIV/AIDS. |
| --- | --- |

3.1.2

Currently, in the EU, more citizens die from suicide than from road traffic accidents or HIV/AIDS.

| 3.1.3 | The implications for society are manifold and the report gives a cost analysis covering loss of productivity, and the expenditure incurred by the social welfare, education, penal and judicial systems. |
| --- | --- |

3.1.3

The implications for society are manifold and the report gives a cost analysis covering loss of productivity, and the expenditure incurred by the social welfare, education, penal and judicial systems.

| 3.1.4 | There are significant inequalities between, and also within, Member States. |
| --- | --- |

3.1.4

There are significant inequalities between, and also within, Member States.

3.2   ... which justifies an EU level mental health strategy

| 3.2.1 | The European Union's public health programme currently has several objectives:






  — | improving health information, |
| --- | --- | --- |

3.2.1

The European Union's public health programme currently has several objectives:

—

improving health information,

| — | reacting more rapidly to health threats, |
| --- | --- |

—

reacting more rapidly to health threats,

| — | guaranteeing a high level of social protection and good health by means of an intersectoral strategy, |
| --- | --- |

—

guaranteeing a high level of social protection and good health by means of an intersectoral strategy,

| — | reducing health inequalities. |
| --- | --- |

—

reducing health inequalities.

| 3.2.2 | A Community mental health strategy could have the following objectives:






  — | promoting the mental health of all, |
| --- | --- | --- |

3.2.2

A Community mental health strategy could have the following objectives:

—

promoting the mental health of all,

| — | addressing mental ill health through preventive action, |
| --- | --- |

—

addressing mental ill health through preventive action,

| — | improving the quality of life of people with a mental illness or psychiatric disability through social inclusion and the protection of their rights and dignity, and, |
| --- | --- |

—

improving the quality of life of people with a mental illness or psychiatric disability through social inclusion and the protection of their rights and dignity, and,

| — | developing a mental health information, research and knowledge system for the EU. |
| --- | --- |

—

developing a mental health information, research and knowledge system for the EU.

| 3.2.3 | Possible initiatives at Community level could include Council recommendations on the reduction of depression and suicidal behaviour, modelled on a pilot project on the creation of regional information networks linking the health sector, patients and their relatives and community facilitators, which led to decreases in suicide rates of 25 % amongst young people. |
| --- | --- |

3.2.3

Possible initiatives at Community level could include Council recommendations on the reduction of depression and suicidal behaviour, modelled on a pilot project on the creation of regional information networks linking the health sector, patients and their relatives and community facilitators, which led to decreases in suicide rates of 25 % amongst young people.

| 3.2.4 | In connection with its work to promote the social inclusion of people with a mental illness or psychiatric disability, the European Commission invites the Member States to speed up the process of deinstitutionalisation. In recent years, it has funded a study that has confirmed that replacement of psychiatric institutions by community-based alternatives improves quality of life for patients. In June 2005, a call for tenders was launched for a new study to analyse and present how current financial resources could be best used and provide evidence about the cost of de-institutionalisation. |
| --- | --- |

3.2.4

In connection with its work to promote the social inclusion of people with a mental illness or psychiatric disability, the European Commission invites the Member States to speed up the process of deinstitutionalisation. In recent years, it has funded a study that has confirmed that replacement of psychiatric institutions by community-based alternatives improves quality of life for patients. In June 2005, a call for tenders was launched for a new study to analyse and present how current financial resources could be best used and provide evidence about the cost of de-institutionalisation.

| 3.2.5 | Other initiatives could be envisaged within this framework at Community level:






  — | The European Union could identify models of best practice for promoting the social inclusion and protecting the rights of people with a mental illness or psychiatric disability. |
| --- | --- | --- |

3.2.5

Other initiatives could be envisaged within this framework at Community level:

—

The European Union could identify models of best practice for promoting the social inclusion and protecting the rights of people with a mental illness or psychiatric disability.

| — | The situation of people with a mental illness or psychiatric disability and psychiatric institutions should be guaranteed by the fundamental rights and human rights set out in the Charter contained in the draft European Constitution. |
| --- | --- |

—

The situation of people with a mental illness or psychiatric disability and psychiatric institutions should be guaranteed by the fundamental rights and human rights set out in the Charter contained in the draft European Constitution.

| 3.2.6 | The European Union wishes to improve knowledge on mental health by supporting research programmes and establishing interfaces between policy and research. |
| --- | --- |

3.2.6

The European Union wishes to improve knowledge on mental health by supporting research programmes and establishing interfaces between policy and research.

4.   Point of view on the proposals

4.1   The emerging recognition of the importance of mental health is connected with several different factors

| 4.1.1 | The past few years have been marked by a number of phenomena, including an explosion in demand throughout society, a paradigm shift from psychiatry to mental health and the now irreversible entry onto the scene of patients and their relatives. Each of these aspects has led to changes in laws and regulations, at different rhythms in different countries, depending on the degree to which they have been taken into account at political and administrative levels. |
| --- | --- |

4.1.1

The past few years have been marked by a number of phenomena, including an explosion in demand throughout society, a paradigm shift from psychiatry to mental health and the now irreversible entry onto the scene of patients and their relatives. Each of these aspects has led to changes in laws and regulations, at different rhythms in different countries, depending on the degree to which they have been taken into account at political and administrative levels.

| 4.1.2 | The extensive demand, which has brought all the available services to saturation point, is linked with the complex interaction between society's changing image of mental illness and psychiatry, which has become more generally accepted or less stigmatised, and the services on offer. This change, which has been experienced in all developed countries over the same period, is reflected in the epidemiology, which shows: 15 to 20 % of the diagnosable mental disorders prevalent in any one year in the general population, 12 to 15 % — as many as cardio-vascular disease and twice as many as cancer — resulting in disabilities, and 30 % of all the years lost to premature death or invalidity (WHO, 2004). This pressure is also reflected in the expansion of health planning, which has attributed psychiatry a growing range of tasks over the years. |
| --- | --- |

4.1.2

The extensive demand, which has brought all the available services to saturation point, is linked with the complex interaction between society's changing image of mental illness and psychiatry, which has become more generally accepted or less stigmatised, and the services on offer. This change, which has been experienced in all developed countries over the same period, is reflected in the epidemiology, which shows: 15 to 20 % of the diagnosable mental disorders prevalent in any one year in the general population, 12 to 15 % — as many as cardio-vascular disease and twice as many as cancer — resulting in disabilities, and 30 % of all the years lost to premature death or invalidity (WHO, 2004). This pressure is also reflected in the expansion of health planning, which has attributed psychiatry a growing range of tasks over the years.

| 4.1.3 | The combination of increasing demand and changing perceptions has led to increasing demands for outpatient care, thus blurring the traditional polar distinction between illness and health by drawing attention to the continuum of clinical states, up to and including mental suffering. It is now impossible to separate mental disorders from the social environment in which they emerge and necessary to include the social impact of mental disorders in needs assessments. One of psychiatry's main tasks is now to distinguish between psychiatric and non-psychiatric cases and to define what warrants psychiatric intervention, but without narrowing the approach to this aspect alone, so that other partners can share the burden or be supported in resuming their position as the main actors in assistance or therapy. This dialectic and the sometimes-conflicting tensions between clinical, ethnical and organisational issues bear witness to the paradigm shift from psychiatry to mental health. They also sometimes give rise to contradictory terminology, particularly in official documents. However, at international level, the literature generally makes a clear distinction between psychiatry and mental health. |
| --- | --- |

4.1.3

The combination of increasing demand and changing perceptions has led to increasing demands for outpatient care, thus blurring the traditional polar distinction between illness and health by drawing attention to the continuum of clinical states, up to and including mental suffering. It is now impossible to separate mental disorders from the social environment in which they emerge and necessary to include the social impact of mental disorders in needs assessments. One of psychiatry's main tasks is now to distinguish between psychiatric and non-psychiatric cases and to define what warrants psychiatric intervention, but without narrowing the approach to this aspect alone, so that other partners can share the burden or be supported in resuming their position as the main actors in assistance or therapy. This dialectic and the sometimes-conflicting tensions between clinical, ethnical and organisational issues bear witness to the paradigm shift from psychiatry to mental health. They also sometimes give rise to contradictory terminology, particularly in official documents. However, at international level, the literature generally makes a clear distinction between psychiatry and mental health.

| 4.1.4 | Lastly, the final and far from least important aspect has been the growing power of users and representatives of families. This is evidence of a wide-reaching change, both in France and worldwide, which is not confined to psychiatry and has been intensified by various diseases (such as HIV/AIDS), which have transformed the relationship between doctors and patients. One of the most noteworthy signs of this change is the emergence of legislation on patients' rights and the reference to users and their families in administrative documents relating to the organisation of psychiatric services and response to needs and their actual implementation. |
| --- | --- |

4.1.4

Lastly, the final and far from least important aspect has been the growing power of users and representatives of families. This is evidence of a wide-reaching change, both in France and worldwide, which is not confined to psychiatry and has been intensified by various diseases (such as HIV/AIDS), which have transformed the relationship between doctors and patients. One of the most noteworthy signs of this change is the emergence of legislation on patients' rights and the reference to users and their families in administrative documents relating to the organisation of psychiatric services and response to needs and their actual implementation.

| 4.1.5 | Community representatives and representatives of all potential users have also taken a more active role. There are increasing interfaces between municipal policy and health policy. Elected representatives are increasingly drawn in by the repercussions of the changes in psychiatry, which increasingly require their involvement. |
| --- | --- |

4.1.5

Community representatives and representatives of all potential users have also taken a more active role. There are increasing interfaces between municipal policy and health policy. Elected representatives are increasingly drawn in by the repercussions of the changes in psychiatry, which increasingly require their involvement.

| 4.1.6 | These changes have made the imbalance between hospital and outpatient care and the problems of flexibility along the whole care spectrum, from emergency to medico-social services, all the more acute. They have also drawn attention to the frequent failures of deinstitutionalisation, the incomplete integration of psychiatry into general hospitals. Given the porous nature of the boundaries between the medical and social fields and between professions and training, initial and continuous training for new functions are a key to future solutions. In addition to these profound changes, new issues have emerged, including those of prisoners with mental disorders and elderly people with neurodegenerative pathologies that translate into mental disabilities and particularly deprived groups of the population. |
| --- | --- |

4.1.6

These changes have made the imbalance between hospital and outpatient care and the problems of flexibility along the whole care spectrum, from emergency to medico-social services, all the more acute. They have also drawn attention to the frequent failures of deinstitutionalisation, the incomplete integration of psychiatry into general hospitals. Given the porous nature of the boundaries between the medical and social fields and between professions and training, initial and continuous training for new functions are a key to future solutions. In addition to these profound changes, new issues have emerged, including those of prisoners with mental disorders and elderly people with neurodegenerative pathologies that translate into mental disabilities and particularly deprived groups of the population.

| 4.1.7 | In most developed countries, the accumulation of factors including the end of the Second World War, the awareness of the experience of concentration camp victims and human rights, a critical view of psychiatric hospitalisation as practised at the time, the development of psychoactive drugs, the emergence of patients' movements and budget constraints, have plunged psychiatry into a process of transformation that the international literature refers to as ‘de-institutionalisation’. This means moving the focus of care and services away from hospitalisation towards approaches based on keeping patients within their own environment. |
| --- | --- |

4.1.7

In most developed countries, the accumulation of factors including the end of the Second World War, the awareness of the experience of concentration camp victims and human rights, a critical view of psychiatric hospitalisation as practised at the time, the development of psychoactive drugs, the emergence of patients' movements and budget constraints, have plunged psychiatry into a process of transformation that the international literature refers to as ‘de-institutionalisation’. This means moving the focus of care and services away from hospitalisation towards approaches based on keeping patients within their own environment.

| 4.1.8 | However, a number of stumbling blocks have emerged whenever deinstitutionalisation has been based on dehospitalisation: a tendency for society and psychiatry to hold large numbers of people with mental disorders in prison or transfer them to it, vulnerable or marginal patients left to their own devices, whose care has been broken off or finished, without housing or welfare benefits and becoming homeless; the so-called ‘revolving door syndrome’ whereby some patients enter into a vicious circle of being admitted to hospital, discharged, and admitted again. Over time, the combination of these phenomena, successive budget cuts and the increasing demand have brought emergency psychiatric departments and hospitals to saturation point, ultimately resulting in the creation of additional full-time hospital beds, that could probably have been avoided. Serious incidents, such as attacks by or on people with a mental illness or psychiatric disability have sometimes contributed to this trend. Policy makers have then been susceptible to public opinion, which has pushed them either to introduce measures prioritising public safety or to draw up mental health strategies. |
| --- | --- |

4.1.8

However, a number of stumbling blocks have emerged whenever deinstitutionalisation has been based on dehospitalisation: a tendency for society and psychiatry to hold large numbers of people with mental disorders in prison or transfer them to it, vulnerable or marginal patients left to their own devices, whose care has been broken off or finished, without housing or welfare benefits and becoming homeless; the so-called ‘revolving door syndrome’ whereby some patients enter into a vicious circle of being admitted to hospital, discharged, and admitted again. Over time, the combination of these phenomena, successive budget cuts and the increasing demand have brought emergency psychiatric departments and hospitals to saturation point, ultimately resulting in the creation of additional full-time hospital beds, that could probably have been avoided. Serious incidents, such as attacks by or on people with a mental illness or psychiatric disability have sometimes contributed to this trend. Policy makers have then been susceptible to public opinion, which has pushed them either to introduce measures prioritising public safety or to draw up mental health strategies.

4.2   Information and the media

Mental health is most often mentioned by the media in connection with violent incidents involving people suffering from mental disorders (although the figures are actually no higher than for the general population). The effect of this is to create negative stereotypes and heighten fears about safety, which in turn leads to greater intolerance and rejection of people suffering from mental ill health. We cannot allow information on mental health to remain, as it is now, an uncontrolled increasingly sensitive issue; we need to clarify the whole information process, focusing on averting serious effects and using the media and media professionals to reach the general public.

4.3   The prerequisites for and content of an EU mental health strategy

| 4.3.1 | The EESC supports the Commission initiative on developing an integrated European strategy on mental health. It believes that the discussion on researching, identifying and developing such a strategy must take place in the context of the knowledge society. This means, among other things, that European society must acquire:






  — | a clear idea of the concepts relevant to mental health and their implications; |
| --- | --- | --- |

4.3.1

The EESC supports the Commission initiative on developing an integrated European strategy on mental health. It believes that the discussion on researching, identifying and developing such a strategy must take place in the context of the knowledge society. This means, among other things, that European society must acquire:

—

a clear idea of the concepts relevant to mental health and their implications;

| — | a precise understanding of the extent of the problem as it currently stands, but also of its likely development; |
| --- | --- |

—

a precise understanding of the extent of the problem as it currently stands, but also of its likely development;

| — | strong support for substantive participation of European society in shaping conditions for developing alternative integrated solutions. |
| --- | --- |

—

strong support for substantive participation of European society in shaping conditions for developing alternative integrated solutions.

| 4.3.2 | Consequently, in order to meet needs on this scale, it is necessary to draw up an ambitious programme and define a common strategy based on a small number of shared principles. It is worth pointing out that other, smaller scale, health problems are already given priority attention. There are also considerable differences between European countries in regard to the mental health situation. Furthermore, the states which are due to join the EU in the long-term have considerable ground to make up in this area and the gap may well widen before their actual accession.
  It is already possible to list a number of prerequisites: |
| --- | --- |

4.3.2

Consequently, in order to meet needs on this scale, it is necessary to draw up an ambitious programme and define a common strategy based on a small number of shared principles. It is worth pointing out that other, smaller scale, health problems are already given priority attention. There are also considerable differences between European countries in regard to the mental health situation. Furthermore, the states which are due to join the EU in the long-term have considerable ground to make up in this area and the gap may well widen before their actual accession.

It is already possible to list a number of prerequisites:

| 4.3.3 | Before a common strategy can be defined, there has to be a common definition and explanation of terms and concepts, such as ‘mental ill health’ and ‘person suffering from mental disability’. |
| --- | --- |

4.3.3

Before a common strategy can be defined, there has to be a common definition and explanation of terms and concepts, such as ‘mental ill health’ and ‘person suffering from mental disability’.

| 4.3.4 | Another considerable advance and prerequisite for action is that mental health be recognised as a priority, in accordance with actual needs. |
| --- | --- |

4.3.4

Another considerable advance and prerequisite for action is that mental health be recognised as a priority, in accordance with actual needs.

| 4.3.5 | From a different angle, this will require cataloguing of evidence of existing needs and current responses to those needs. |
| --- | --- |

4.3.5

From a different angle, this will require cataloguing of evidence of existing needs and current responses to those needs.

| 4.3.6 | In terms of action, the proposals in the Green Paper are to be welcomed. The proposals concerning mental health focus on children and adolescents, the working population and the elderly. |
| --- | --- |

4.3.6

In terms of action, the proposals in the Green Paper are to be welcomed. The proposals concerning mental health focus on children and adolescents, the working population and the elderly.

4.4   Towards a mental health approach integrating the person and their environment

| 4.4.1 | Mental health is concerned with the suffering of individuals within their family and community environments in a given society. The issue requires a combined approach, including:






  — | measures for combating mental illness, which must necessarily combine prevention, care and re-integration, |
| --- | --- | --- |

4.4.1

Mental health is concerned with the suffering of individuals within their family and community environments in a given society. The issue requires a combined approach, including:

—

measures for combating mental illness, which must necessarily combine prevention, care and re-integration,

| — | preventive measures for specific target groups, |
| --- | --- |

—

preventive measures for specific target groups,

| — | care provision to address the mental suffering of particular population groups, |
| --- | --- |

—

care provision to address the mental suffering of particular population groups,

| — | positive mental health initiatives aimed at changing harmful behaviour on the part of individuals, groups or society itself. |
| --- | --- |

—

positive mental health initiatives aimed at changing harmful behaviour on the part of individuals, groups or society itself.

| 4.4.2 | From this perspective, emphasis must be placed on the three aspects of prevention (primary, secondary and tertiary), with the balance between them depending on the particular area concerned. Initiatives need to be developed in a number of areas, including the promotion of mental health and public information, the acquiring and maintaining of healthy ways of living and the creation of an environment favourable to individual self-development. The same goes for other prevention measures aimed at reducing the incidence of mental disorders by addressing risk factors and pathogenic situations, including:






  — | early intervention for mothers and infants presenting with symptoms of depression or feelings of non-fulfilment, |
| --- | --- | --- |

4.4.2

From this perspective, emphasis must be placed on the three aspects of prevention (primary, secondary and tertiary), with the balance between them depending on the particular area concerned. Initiatives need to be developed in a number of areas, including the promotion of mental health and public information, the acquiring and maintaining of healthy ways of living and the creation of an environment favourable to individual self-development. The same goes for other prevention measures aimed at reducing the incidence of mental disorders by addressing risk factors and pathogenic situations, including:

—

early intervention for mothers and infants presenting with symptoms of depression or feelings of non-fulfilment,

| — | targeted measures for children who are failing at school, |
| --- | --- |

—

targeted measures for children who are failing at school,

| — | information and support for families faced with mental illness, |
| --- | --- |

—

information and support for families faced with mental illness,

| — | studies of risk factors or expressions of mental distress in different ethnic and cultural backgrounds, |
| --- | --- |

—

studies of risk factors or expressions of mental distress in different ethnic and cultural backgrounds,

| — | the introduction of consultation-liaison psychiatry, permitting a more holistic approach to somatopsychic pathologies as well as both active and passive family involvement, (such as teaching coping strategies and how to support those suffering from an illness and, if necessary, providing financial assistance). Psychological support is preferable to the use of psychotropics alone. |
| --- | --- |

—

the introduction of consultation-liaison psychiatry, permitting a more holistic approach to somatopsychic pathologies as well as both active and passive family involvement, (such as teaching coping strategies and how to support those suffering from an illness and, if necessary, providing financial assistance). Psychological support is preferable to the use of psychotropics alone.

| 4.4.3 | There is no question that meeting children's and adolescents' needs is a priority. The demands are not only expressed or borne by families, but also by educational, judicial and social institutions, the police and local authorities, experiencing increasingly serious situations affecting ever-younger children and families with multiple problems. It is primarily families and children who are affected by societal change. |
| --- | --- |

4.4.3

There is no question that meeting children's and adolescents' needs is a priority. The demands are not only expressed or borne by families, but also by educational, judicial and social institutions, the police and local authorities, experiencing increasingly serious situations affecting ever-younger children and families with multiple problems. It is primarily families and children who are affected by societal change.

| 4.4.4 | Coherent and coordinated organisation should lead to provision of a basket of services, coordinated and structured around three basic modules or programmes:






  — | a programme focusing on early childhood, families and the partners working with this age group in the social, health, education and judicial fields; |
| --- | --- | --- |

4.4.4

Coherent and coordinated organisation should lead to provision of a basket of services, coordinated and structured around three basic modules or programmes:

—

a programme focusing on early childhood, families and the partners working with this age group in the social, health, education and judicial fields;

| — | a programme focusing on school age children, families and the partners; |
| --- | --- |

—

a programme focusing on school age children, families and the partners;

| — | a programme focusing on adolescents, their families and the partners. |
| --- | --- |

—

a programme focusing on adolescents, their families and the partners.

| 4.4.5 | In addition to offering programmed outpatient care and services, each module should also offer options for more intensive care within institutions, correlated to age, care during acute incidents and long-term care. To ensure that programmes are flexible and responsive, psychiatric services should be involved in early diagnosis, crisis prevention and outpatient support for families and their partners. |
| --- | --- |

4.4.5

In addition to offering programmed outpatient care and services, each module should also offer options for more intensive care within institutions, correlated to age, care during acute incidents and long-term care. To ensure that programmes are flexible and responsive, psychiatric services should be involved in early diagnosis, crisis prevention and outpatient support for families and their partners.

| 4.4.6 | These basic programmes should be complemented by specialised programmes for at-risk groups or situations that would make primary as well as secondary prevention a realistic option in areas such as early diagnosis of developmental problems, disorders affecting young children, dysfunctional early-years parental care, young single mothers, families with multiple problems and addiction problems suffered by youths. Further attention must be given to the social, educational and judicial structures (including prevention services and prisons) that admit individuals with serious social problems who already have, or are likely to develop, mental health problems as a result of the gravity of their situation or its cumulative effects. |
| --- | --- |

4.4.6

These basic programmes should be complemented by specialised programmes for at-risk groups or situations that would make primary as well as secondary prevention a realistic option in areas such as early diagnosis of developmental problems, disorders affecting young children, dysfunctional early-years parental care, young single mothers, families with multiple problems and addiction problems suffered by youths. Further attention must be given to the social, educational and judicial structures (including prevention services and prisons) that admit individuals with serious social problems who already have, or are likely to develop, mental health problems as a result of the gravity of their situation or its cumulative effects.

4.5   The relationship between work, unemployment and health

| 4.5.1 | In view of their impact on mental health, attention should be paid to improving conditions for those both in and out of employment. The issue of work and mental health touches on questions such as the value attributed to work and its personal cost, the impact of unemployment and invalidity. |
| --- | --- |

4.5.1

In view of their impact on mental health, attention should be paid to improving conditions for those both in and out of employment. The issue of work and mental health touches on questions such as the value attributed to work and its personal cost, the impact of unemployment and invalidity.

| 4.5.2 | The responses that need to be found to these issues in connection with social exclusion are equally important for mental health. |
| --- | --- |

4.5.2

The responses that need to be found to these issues in connection with social exclusion are equally important for mental health.

| 4.5.3 | Lastly, the ageing of the population will require appropriate responses. Only 20 % of elderly people have what the WHO terms an ‘successful ageing’, meaning that 80 % suffer from various illnesses and loss of autonomy. Mental illness does not disappear with advancing age, quite the reverse. Senile dementia, which affects only 1 % of 60 year olds becomes more common with age, affecting 30 % of the over 85s. Over 70 % of these individuals have behavioural problems. |
| --- | --- |

4.5.3

Lastly, the ageing of the population will require appropriate responses. Only 20 % of elderly people have what the WHO terms an ‘successful ageing’, meaning that 80 % suffer from various illnesses and loss of autonomy. Mental illness does not disappear with advancing age, quite the reverse. Senile dementia, which affects only 1 % of 60 year olds becomes more common with age, affecting 30 % of the over 85s. Over 70 % of these individuals have behavioural problems.

4.6   Asylum seekers

| 4.6.1 | The issue of mental health arises in connection with support for asylum seekers during the reception procedure, their living space and conditions and their personal lives, which embody their personal history and psychic temporality. The seriousness of the traumas they have suffered, often involving extreme, intentional and collective cruelty, bears witness to situations of organised violence. Within this population, post-traumatic stress is often worsened by multiple bereavements and very painful experiences of exile. |
| --- | --- |

4.6.1

The issue of mental health arises in connection with support for asylum seekers during the reception procedure, their living space and conditions and their personal lives, which embody their personal history and psychic temporality. The seriousness of the traumas they have suffered, often involving extreme, intentional and collective cruelty, bears witness to situations of organised violence. Within this population, post-traumatic stress is often worsened by multiple bereavements and very painful experiences of exile.

4.7   The mental health issue

| 4.7.1 | The same issue arises in connection with the sizeable prison population with mental health problems, who receive very little in terms of care provision. |
| --- | --- |

4.7.1

The same issue arises in connection with the sizeable prison population with mental health problems, who receive very little in terms of care provision.

| 4.7.2 | Support must be given for the establishment of depression, suicide and addiction prevention programmes. |
| --- | --- |

4.7.2

Support must be given for the establishment of depression, suicide and addiction prevention programmes.

| 4.7.3 | With regard to deinstitutionalisation and the new model it proposes, a new period began in the late 1990s, marked by the end of both the downward trend in hospitalisation model and the illusions about de-institutionalisation, with a resulting need for a combined approach offering both effective community-based care and full-time hospitalisation. Too much focus on hospitalisation means that resources are not available to develop the range of services in the community needed by patients and their families. Conversely, too much focus on outpatient services is ineffective without back-up from hospital services that are permanently available, and accessible at short notice, for patients with acute symptoms requiring brief periods of in-patient hospital treatment. Lastly, it is only possible to avoid over-use of hospitalisation if outpatient services have the resources to prevent it, for example, by supporting patients undergoing long-term in-patient care, to ensure that they are adequately prepared for their discharge from hospital, supporting patients receiving care in the community to ensure that such care is adequate and meets their needs and supporting patients who need to alternate between outpatient care and hospitalisation. |
| --- | --- |

4.7.3

With regard to deinstitutionalisation and the new model it proposes, a new period began in the late 1990s, marked by the end of both the downward trend in hospitalisation model and the illusions about de-institutionalisation, with a resulting need for a combined approach offering both effective community-based care and full-time hospitalisation. Too much focus on hospitalisation means that resources are not available to develop the range of services in the community needed by patients and their families. Conversely, too much focus on outpatient services is ineffective without back-up from hospital services that are permanently available, and accessible at short notice, for patients with acute symptoms requiring brief periods of in-patient hospital treatment. Lastly, it is only possible to avoid over-use of hospitalisation if outpatient services have the resources to prevent it, for example, by supporting patients undergoing long-term in-patient care, to ensure that they are adequately prepared for their discharge from hospital, supporting patients receiving care in the community to ensure that such care is adequate and meets their needs and supporting patients who need to alternate between outpatient care and hospitalisation.

| 4.7.4 | The decision to treat a person suffering from mental illness by means of hospitalisation or outpatient care is strongly influenced by specific factors such as the patient's degree of isolation and the training model and culture of the professionals concerned as well as by more general, socio-cultural factors such as the degree of tolerance within the particular society and the profile of vulnerability in the area concerned, which may lead to preferences for particular approaches and impact on the availability of alternatives. It is therefore impossible to make categorical recommendations regarding the number of hospital beds required for patients in an acute phase, without taking account of local conditions. |
| --- | --- |

4.7.4

The decision to treat a person suffering from mental illness by means of hospitalisation or outpatient care is strongly influenced by specific factors such as the patient's degree of isolation and the training model and culture of the professionals concerned as well as by more general, socio-cultural factors such as the degree of tolerance within the particular society and the profile of vulnerability in the area concerned, which may lead to preferences for particular approaches and impact on the availability of alternatives. It is therefore impossible to make categorical recommendations regarding the number of hospital beds required for patients in an acute phase, without taking account of local conditions.

| 4.7.5 | Moreover, the most important factor is the nature of the treatment, in other words, what benefits it is intended to provide, for which needs, and to what level, above and beyond the setting in which it is dispensed. |
| --- | --- |

4.7.5

Moreover, the most important factor is the nature of the treatment, in other words, what benefits it is intended to provide, for which needs, and to what level, above and beyond the setting in which it is dispensed.

| 4.7.6 | It is generally acknowledged that hospital treatment has a number of advantages, with regard to availability of trained staff, a secure and appropriate environment for patients and therapeutic support under safe conditions. However, these advantages disappear if a lack of beds means that too many non-cooperative patients with very severe disorders are grouped together within a hospital, leading to unacceptable or dangerous disruptions to the surrounding work. |
| --- | --- |

4.7.6

It is generally acknowledged that hospital treatment has a number of advantages, with regard to availability of trained staff, a secure and appropriate environment for patients and therapeutic support under safe conditions. However, these advantages disappear if a lack of beds means that too many non-cooperative patients with very severe disorders are grouped together within a hospital, leading to unacceptable or dangerous disruptions to the surrounding work.

| 4.7.7 | A number of international and French studies have shown that up to 40 % of the patients with acute disorders voluntarily seeking or prescribed hospital admission, can be treated with other forms of therapy, provided that they are willing to cooperate or can be persuaded to do so, for example, with the support of close family or social support networks (emergency or crisis support). As alternative approaches become more effective, there is a tendency for hospitalisation to be reserved for the ‘unavoidable’ cases, including patients requiring a two-pronged psychiatric and physical assessment, patients presenting with particularly severe mixed, acute disorders, relapses from known psychiatric disorders, or uncontrollably violent or suicidal behaviour. In such cases, compulsory hospitalisation is often necessary. As we shall see, this has an impact on organisation and treatment. |
| --- | --- |

4.7.7

A number of international and French studies have shown that up to 40 % of the patients with acute disorders voluntarily seeking or prescribed hospital admission, can be treated with other forms of therapy, provided that they are willing to cooperate or can be persuaded to do so, for example, with the support of close family or social support networks (emergency or crisis support). As alternative approaches become more effective, there is a tendency for hospitalisation to be reserved for the ‘unavoidable’ cases, including patients requiring a two-pronged psychiatric and physical assessment, patients presenting with particularly severe mixed, acute disorders, relapses from known psychiatric disorders, or uncontrollably violent or suicidal behaviour. In such cases, compulsory hospitalisation is often necessary. As we shall see, this has an impact on organisation and treatment.

| 4.7.8 | In view of the above, the same studies recommend a minimum threshold of 0.5 beds per 1 000 adult inhabitants for patients in acute phases, a figure which will have to be reviewed if the target objective of an 80 to 85 % service occupation rate is envisaged, as we recommend. Naturally, this minimum threshold is premised on the assumption that upstream and downstream alternative treatment sites are sufficiently equipped and effective and does not include secure beds for acute patients receiving psychiatric care within the criminal justice system, beds for adolescents or elderly people. If the requirements for proper ambulatory services are not met, coming too close to this threshold would lead to the creation of extremely costly additional psychiatric or medical beds. |
| --- | --- |

4.7.8

In view of the above, the same studies recommend a minimum threshold of 0.5 beds per 1 000 adult inhabitants for patients in acute phases, a figure which will have to be reviewed if the target objective of an 80 to 85 % service occupation rate is envisaged, as we recommend. Naturally, this minimum threshold is premised on the assumption that upstream and downstream alternative treatment sites are sufficiently equipped and effective and does not include secure beds for acute patients receiving psychiatric care within the criminal justice system, beds for adolescents or elderly people. If the requirements for proper ambulatory services are not met, coming too close to this threshold would lead to the creation of extremely costly additional psychiatric or medical beds.

4.8   Environment of care

| 4.8.1 | Whilst the threshold for bed numbers may vary from country to country, the minimum standards for accommodation can be more assertively presented. All accommodation should be fit for its purpose and, whilst possibly provided in older settings, must aspire to contemporary values of dignity and respect for residents. It is essential for the purposes of recovery that the environment is appropriate. Environmental risks must be assessed and addressed in regard to the particular needs of the residents. |
| --- | --- |

4.8.1

Whilst the threshold for bed numbers may vary from country to country, the minimum standards for accommodation can be more assertively presented. All accommodation should be fit for its purpose and, whilst possibly provided in older settings, must aspire to contemporary values of dignity and respect for residents. It is essential for the purposes of recovery that the environment is appropriate. Environmental risks must be assessed and addressed in regard to the particular needs of the residents.

| 4.8.2 | The residents should have access to a wide range of therapies that compliment and contribute to their care and treatment. All mental health staff should contribute to this environment by being appropriately trained, skilled and humane in their approach. |
| --- | --- |

4.8.2

The residents should have access to a wide range of therapies that compliment and contribute to their care and treatment. All mental health staff should contribute to this environment by being appropriately trained, skilled and humane in their approach.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/48 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/48

---

Opinion of the European Economic and Social Committee on Flexicurity: the case of Denmark

(2006/C 195/12)

On 14 July 2005 the European Economic and Social Committee, acting under Rule 29(2) of its Rules of Procedure, decided to draw up an opinion on Flexicurity: the case of Denmark.

The Section for Economic and Monetary Union and Economic and Social Cohesion, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 28 April 2006. The rapporteur was Ms Vium.

At its 427th plenary session of 17 and 18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 98 votes to one, with one abstention:

1.   Conclusions and recommendations — flexicurity: the case of Denmark

| 1.1 | Danish-style flexicurity appears to provide an example of how to achieve economic growth, a high level of employment and sound public finances in a socially balanced way. This development is consistent with the Lisbon process, which is designed to secure a high level of employment and sustainable growth and social welfare. |
| --- | --- |

1.1

Danish-style flexicurity appears to provide an example of how to achieve economic growth, a high level of employment and sound public finances in a socially balanced way. This development is consistent with the Lisbon process, which is designed to secure a high level of employment and sustainable growth and social welfare.

| 1.2 | Danish-style flexicurity, the hallmarks of which are a mobile labour market, achieved through elements of social security and an active labour-market and training policy, does, it would appear, help make the country more competitive. Together with other facets of Danish society, flexicurity has given the Danish labour market a strength and a flexibility that equip the country well to face the challenges of the future. A high level of employment, high unemployment benefits and a sense of optimism mean that both employers and employees accept the uncertainties and drawbacks inherent in the system, given what each group gets in return. |
| --- | --- |

1.2

Danish-style flexicurity, the hallmarks of which are a mobile labour market, achieved through elements of social security and an active labour-market and training policy, does, it would appear, help make the country more competitive. Together with other facets of Danish society, flexicurity has given the Danish labour market a strength and a flexibility that equip the country well to face the challenges of the future. A high level of employment, high unemployment benefits and a sense of optimism mean that both employers and employees accept the uncertainties and drawbacks inherent in the system, given what each group gets in return.

| 1.3 | The key to understanding Danish-style flexicurity is that flexibility and security are not necessarily mutually exclusive. Having stable and secure labour relations and a motivated workforce can be an employer's interest, while flexible working hours, work organisation and payment schemes can be in the interest of employees. |
| --- | --- |

1.3

The key to understanding Danish-style flexicurity is that flexibility and security are not necessarily mutually exclusive. Having stable and secure labour relations and a motivated workforce can be an employer's interest, while flexible working hours, work organisation and payment schemes can be in the interest of employees.

| 1.4 | In the face of globalisation and the fact of jobs being relocated abroad, flexicurity also creates for the people a high degree of economic and social security by means of the following paradigm shifts: ‘security of employment rather than job security’ and ‘new personal opportunities brought about by a readiness to change whilst accepting limited risks’. It is quite true that individuals do risk losing their job but the social security network ensures that they have enough to live on in the short term, while, in the longer run, their chances of finding a new job are enhanced through active labour market measures, combined with high levels of employment. |
| --- | --- |

1.4

In the face of globalisation and the fact of jobs being relocated abroad, flexicurity also creates for the people a high degree of economic and social security by means of the following paradigm shifts: ‘security of employment rather than job security’ and ‘new personal opportunities brought about by a readiness to change whilst accepting limited risks’. It is quite true that individuals do risk losing their job but the social security network ensures that they have enough to live on in the short term, while, in the longer run, their chances of finding a new job are enhanced through active labour market measures, combined with high levels of employment.

| 1.5 | Danish-style flexicurity means low job security for individual workers, who face the prospect of losing their job several times during the course of their working life. Despite this, the in-built safeguards of the flexicurity system — thanks, on the one hand, to high unemployment benefits funded using public money and the tax contributions of the whole population and, on the other hand, to employment security — mean that Danes do generally feel safe and content (see Appendix 2). |
| --- | --- |

1.5

Danish-style flexicurity means low job security for individual workers, who face the prospect of losing their job several times during the course of their working life. Despite this, the in-built safeguards of the flexicurity system — thanks, on the one hand, to high unemployment benefits funded using public money and the tax contributions of the whole population and, on the other hand, to employment security — mean that Danes do generally feel safe and content (see Appendix 2).

| 1.6 | If we consider Danish-style flexicurity within a European context, it is obviously impossible to copy the system blanket-fashion, given the cultural, structural and economic differences involved. That said, some general features may be considered for adoption as a political strategy in other Member States, particularly in places where social capital — –understood as the full gamut of standards and networks, combined with a relationship of trust among individuals and among organisations — has developed along similar lines to Denmark, including a tradition of cooperation between the government and the social partners and a readiness by the people to embrace change. Geographical flexibility can, however, also give rise to very weighty problems for families, partnerships and children's school and educational careers. This is particularly the case in large countries and federal states. |
| --- | --- |

1.6

If we consider Danish-style flexicurity within a European context, it is obviously impossible to copy the system blanket-fashion, given the cultural, structural and economic differences involved. That said, some general features may be considered for adoption as a political strategy in other Member States, particularly in places where social capital — –understood as the full gamut of standards and networks, combined with a relationship of trust among individuals and among organisations — has developed along similar lines to Denmark, including a tradition of cooperation between the government and the social partners and a readiness by the people to embrace change. Geographical flexibility can, however, also give rise to very weighty problems for families, partnerships and children's school and educational careers. This is particularly the case in large countries and federal states.

| 1.7 | Broadly speaking, the idea behind flexicurity is that a combination of worker flexibility and security can, together, safeguard social security and competitiveness. Danish-style flexicurity provides security through a high level of unemployment benefit (and transfer payments to cover other social contingencies), and flexibility through liberal dismissal rules, including, for instance, short periods of notice. Alongside social security and a high degree of mobility, importance is also placed on an active labour market policy that ensures that people are actually available for work and are honing their job skills. Danish labour market policy, therefore, comprises both incentives and sanctions, including, for instance, compulsory employment support (known as ‘activation’), which, however, primarily involves top-quality upskilling schemes. Active labour market policy is vital to any labour market designed to function effectively with high levels of unemployment benefit. |
| --- | --- |

1.7

Broadly speaking, the idea behind flexicurity is that a combination of worker flexibility and security can, together, safeguard social security and competitiveness. Danish-style flexicurity provides security through a high level of unemployment benefit (and transfer payments to cover other social contingencies), and flexibility through liberal dismissal rules, including, for instance, short periods of notice. Alongside social security and a high degree of mobility, importance is also placed on an active labour market policy that ensures that people are actually available for work and are honing their job skills. Danish labour market policy, therefore, comprises both incentives and sanctions, including, for instance, compulsory employment support (known as ‘activation’), which, however, primarily involves top-quality upskilling schemes. Active labour market policy is vital to any labour market designed to function effectively with high levels of unemployment benefit.

| 1.8 | That said, however, Danish-style flexicurity cannot be seen in isolation from the overall context of the welfare state and a strong organisational set-up. The way in which the Danish labour market operates is contingent on a range of other social factors. This applies, for instance, to the key role of the social partners in political decision-making and to the application of labour-market and training policies, the broad-based publicly funded welfare system, the skills level of the population, and the macroeconomic policy mix that has been put in place over the last few decades. |
| --- | --- |

1.8

That said, however, Danish-style flexicurity cannot be seen in isolation from the overall context of the welfare state and a strong organisational set-up. The way in which the Danish labour market operates is contingent on a range of other social factors. This applies, for instance, to the key role of the social partners in political decision-making and to the application of labour-market and training policies, the broad-based publicly funded welfare system, the skills level of the population, and the macroeconomic policy mix that has been put in place over the last few decades.

| 1.9 | The social partners have had a key role to play in the development of Danish-style flexicurity, both in decision-making and in implementation in areas such as training policy and labour-market structural reforms. In a number of fields, the development is based on agreements between the social partners, for instance the introduction of private, labour-market-related pensions. The social partners' role is the product of historical development, and also of their high level of organisation. Thanks to their input. it has been possible to arrive at creative solutions enjoying broad acceptance. To have strong input, however, the social partners and other civil-society players need to be adaptable, willing to work together and ready to address real-life situations in new and broad-based ways. Greater involvement and input from the social partners can thus boost society's capacity to compete and adapt. In these processes, support, cooperation and a critical input from other civil society organisations, such as social players and further education bodies based on associations, is also of importance. |
| --- | --- |

1.9

The social partners have had a key role to play in the development of Danish-style flexicurity, both in decision-making and in implementation in areas such as training policy and labour-market structural reforms. In a number of fields, the development is based on agreements between the social partners, for instance the introduction of private, labour-market-related pensions. The social partners' role is the product of historical development, and also of their high level of organisation. Thanks to their input. it has been possible to arrive at creative solutions enjoying broad acceptance. To have strong input, however, the social partners and other civil-society players need to be adaptable, willing to work together and ready to address real-life situations in new and broad-based ways. Greater involvement and input from the social partners can thus boost society's capacity to compete and adapt. In these processes, support, cooperation and a critical input from other civil society organisations, such as social players and further education bodies based on associations, is also of importance.

| 1.10 | A high level of unemployment benefit requires a high level of skills among the population at large. Otherwise, many people would be unable to find jobs in which they earned more than unemployment benefit.. A high level of skills and a readiness to adapt — including among those with the least formal training — is a key reason for the success of the Danish flexicurity system. |
| --- | --- |

1.10

A high level of unemployment benefit requires a high level of skills among the population at large. Otherwise, many people would be unable to find jobs in which they earned more than unemployment benefit.. A high level of skills and a readiness to adapt — including among those with the least formal training — is a key reason for the success of the Danish flexicurity system.

| 1.11 | In the second half of the 1990s, when Denmark carried through an extensive programme of structural reforms, moves to tighten up the labour market were accompanied by an expansive economic policy that boosted both growth and employment. Over and above the income security provided by the high level of unemployment benefits, Denmark also seeks to give its people employment security. No-one has any guarantee that they will keep their current position, but the chances of finding a new job are very good thanks to the public support services. Moreover, it is easier to implement — and secure backing for — structural reforms undertaken in an atmosphere of optimism and employment-friendly growth. The Danish flexicurity system is thus based on a macroeconomic policy-mix that fosters growth and employment. |
| --- | --- |

1.11

In the second half of the 1990s, when Denmark carried through an extensive programme of structural reforms, moves to tighten up the labour market were accompanied by an expansive economic policy that boosted both growth and employment. Over and above the income security provided by the high level of unemployment benefits, Denmark also seeks to give its people employment security. No-one has any guarantee that they will keep their current position, but the chances of finding a new job are very good thanks to the public support services. Moreover, it is easier to implement — and secure backing for — structural reforms undertaken in an atmosphere of optimism and employment-friendly growth. The Danish flexicurity system is thus based on a macroeconomic policy-mix that fosters growth and employment.

| 1.12 | Danish-style flexicurity is subject to constant discussion and change. As a system, it has both advantages and drawbacks, and, despite the fact that flexibility, security and an active labour market policy are undoubtedly interlinked, there is an ongoing debate about how to achieve the right balance between these elements. |
| --- | --- |

1.12

Danish-style flexicurity is subject to constant discussion and change. As a system, it has both advantages and drawbacks, and, despite the fact that flexibility, security and an active labour market policy are undoubtedly interlinked, there is an ongoing debate about how to achieve the right balance between these elements.

| 1.12.1 | High tax revenue is a sine qua non of the Danish flexicurity system and other factors of relevance to the way the labour market works. For instance, public expenditure on labour market policies was 4.4 % of GDP in 2003 — a European record (1). On the one hand, the Danish people are prepared to accept the high tax burden of around 49 % of GDP, yet, on the other, tax is a constant subject of debate and future cuts must be expected in the tax on labour. The high tax burden is explained, in part, however, by the high level of employment, which, in itself, has a positive impact on public finances. Boosting employment makes for further increases in tax revenue. |
| --- | --- |

1.12.1

High tax revenue is a sine qua non of the Danish flexicurity system and other factors of relevance to the way the labour market works. For instance, public expenditure on labour market policies was 4.4 % of GDP in 2003 — a European record (1). On the one hand, the Danish people are prepared to accept the high tax burden of around 49 % of GDP, yet, on the other, tax is a constant subject of debate and future cuts must be expected in the tax on labour. The high tax burden is explained, in part, however, by the high level of employment, which, in itself, has a positive impact on public finances. Boosting employment makes for further increases in tax revenue.

| 1.13 | The importance of Danish-style flexicurity to the European Union lies in the readiness to engage in a proactive adjustment to new realities, promoted by the flexicurity approach; this adjustment has been brought about by a balanced socio-economic paradigm shift, carefully negotiated between the stakeholders, whilst fully respecting the basic values set out in the European social model. |
| --- | --- |

1.13

The importance of Danish-style flexicurity to the European Union lies in the readiness to engage in a proactive adjustment to new realities, promoted by the flexicurity approach; this adjustment has been brought about by a balanced socio-economic paradigm shift, carefully negotiated between the stakeholders, whilst fully respecting the basic values set out in the European social model.

2.   The competitiveness of the Danish system

| 2.1 | Denmark has stable growth and sound public finances. From 2000 to 2005, for instance, the average growth rate was 1.7 %, with an average employment rate of 77.5 % and an average general government balance surplus of 1.4 % of GDP. Overall public debt was running at 42.7 % of GDP in 2004, with a general government balance surplus of 2.8 % of GDP. The general government surplus is due, among other things, to record employment levels, providing high levels of income tax revenue. |
| --- | --- |

2.1

Denmark has stable growth and sound public finances. From 2000 to 2005, for instance, the average growth rate was 1.7 %, with an average employment rate of 77.5 % and an average general government balance surplus of 1.4 % of GDP. Overall public debt was running at 42.7 % of GDP in 2004, with a general government balance surplus of 2.8 % of GDP. The general government surplus is due, among other things, to record employment levels, providing high levels of income tax revenue.

| 2.2 | The Danish labour market is subject to a very high turnover, with more than 10 % of all jobs disappearing each year and a similar number being created. Some 30 % of workers change jobs every year and Danish workers have the second lowest average length of service of any country in the EU after the UK. This must be seen in the light both of the existing rules and of the structure of the Danish economy, with its high numbers of SMEs. |
| --- | --- |

2.2

The Danish labour market is subject to a very high turnover, with more than 10 % of all jobs disappearing each year and a similar number being created. Some 30 % of workers change jobs every year and Danish workers have the second lowest average length of service of any country in the EU after the UK. This must be seen in the light both of the existing rules and of the structure of the Danish economy, with its high numbers of SMEs.

| 2.3 | The impact of this policy mix of macroeconomic stimulation and the structural reforms undertaken by Denmark in areas like the labour market can also be illustrated using the Phillips curve, which shows the relationship between unemployment and rising wage costs. As the Danish curve given in Appendix 1 makes clear, it has been possible to cut unemployment substantially since 1993 without incurring high wage inflation; the Phillips curve has remained broadly horizontal over this period. Labour-market and training activities mitigate against the adjustment problems and obstacles that can otherwise lead to wage and price increases. |
| --- | --- |

2.3

The impact of this policy mix of macroeconomic stimulation and the structural reforms undertaken by Denmark in areas like the labour market can also be illustrated using the Phillips curve, which shows the relationship between unemployment and rising wage costs. As the Danish curve given in Appendix 1 makes clear, it has been possible to cut unemployment substantially since 1993 without incurring high wage inflation; the Phillips curve has remained broadly horizontal over this period. Labour-market and training activities mitigate against the adjustment problems and obstacles that can otherwise lead to wage and price increases.

| 2.4 | Denmark typically comes top in studies of which countries are attractive to invest in. It also ranked first in a March 2005 report by the Economic Intelligence Unit. Appendix 2 shows how Denmark shapes up against the other EU countries on a range of different parameters. |
| --- | --- |

2.4

Denmark typically comes top in studies of which countries are attractive to invest in. It also ranked first in a March 2005 report by the Economic Intelligence Unit. Appendix 2 shows how Denmark shapes up against the other EU countries on a range of different parameters.

3.   Danish-style flexicurity

| 3.1 | The term ‘flexicurity’ has become very popular over the past few years, although what is meant by it is not always clear, and varies from one country to another. |
| --- | --- |

3.1

The term ‘flexicurity’ has become very popular over the past few years, although what is meant by it is not always clear, and varies from one country to another.

| 3.2 | In the Danish version, labour market arrangements are seen as the ‘golden triangle’ between flexible hiring rules (leading to a high degree of numerical flexibility), a generous support system (providing social security) and strong activation and training measures (which both motivate the unemployed to look for work and give them the skills they need to re-enter the open labour market). |
| --- | --- |

3.2

In the Danish version, labour market arrangements are seen as the ‘golden triangle’ between flexible hiring rules (leading to a high degree of numerical flexibility), a generous support system (providing social security) and strong activation and training measures (which both motivate the unemployed to look for work and give them the skills they need to re-enter the open labour market).

| 3.2.1 | The Danish flexicurity system helps ensure that the jobs that are created are of a high calibre and involve decent work. A corollary of high unemployment benefits is that what are deemed ‘acceptable’ wage rates are also high. As a result, Danes do earn enough to live on. On the formal labour market, therefore, any signs of the emergence of a ‘working poor’ are few and far between — including among Danes of other ethnic origins. |
| --- | --- |

3.2.1

The Danish flexicurity system helps ensure that the jobs that are created are of a high calibre and involve decent work. A corollary of high unemployment benefits is that what are deemed ‘acceptable’ wage rates are also high. As a result, Danes do earn enough to live on. On the formal labour market, therefore, any signs of the emergence of a ‘working poor’ are few and far between — including among Danes of other ethnic origins.

| 3.3 | This golden triangle is illustrated below. The Danish system of benefits and active labour market policy is briefly examined in Appendix 3.
  The key features of the Danish flexicurity system: |
| --- | --- |

3.3

This golden triangle is illustrated below. The Danish system of benefits and active labour market policy is briefly examined in Appendix 3.

The key features of the Danish flexicurity system:

Image

| 3.4 | However, flexibility on the Danish labour market is multi-facetted and cannot be achieved through liberal firing rules alone; it also requires working-time flexibility whereby, under the relevant agreements, working time may be calculated on a yearly basis and job-sharing can be introduced for relatively short periods. More provision in collective agreements for setting final wage rates at company level also ensures a certain degree of wage flexibility. Flexibility is also generated by the breadth of workers' skills: people are independent, willing to change and aware of their responsibilities; as such, they are quickly able to adapt to shifts in production or to a new job. |
| --- | --- |

3.4

However, flexibility on the Danish labour market is multi-facetted and cannot be achieved through liberal firing rules alone; it also requires working-time flexibility whereby, under the relevant agreements, working time may be calculated on a yearly basis and job-sharing can be introduced for relatively short periods. More provision in collective agreements for setting final wage rates at company level also ensures a certain degree of wage flexibility. Flexibility is also generated by the breadth of workers' skills: people are independent, willing to change and aware of their responsibilities; as such, they are quickly able to adapt to shifts in production or to a new job.

| 3.5 | The security of the Danish labour market is not due solely to the relatively high level of unemployment support that is provided. A measure of employment security is also given by the high employment and turnover rate on the labour market. Employment security is further backed up by a broad raft of supplementary and further training measures which are managed and administered jointly by the authorities and the social partners. Moreover, Danish society offers families a degree of security to combine family life and work through attractive arrangements for paternity/maternity leave, childcare facilities etc. |
| --- | --- |

3.5

The security of the Danish labour market is not due solely to the relatively high level of unemployment support that is provided. A measure of employment security is also given by the high employment and turnover rate on the labour market. Employment security is further backed up by a broad raft of supplementary and further training measures which are managed and administered jointly by the authorities and the social partners. Moreover, Danish society offers families a degree of security to combine family life and work through attractive arrangements for paternity/maternity leave, childcare facilities etc.

| 3.6 | The key to understanding what is meant by Danish-style flexicurity is that flexibility and security are not necessarily opposites. Traditionally, employers have wanted a more flexible labour market, clashing with workers' desire for job security and high levels of economic compensation during periods of unemployment and sickness. |
| --- | --- |

3.6

The key to understanding what is meant by Danish-style flexicurity is that flexibility and security are not necessarily opposites. Traditionally, employers have wanted a more flexible labour market, clashing with workers' desire for job security and high levels of economic compensation during periods of unemployment and sickness.

| 3.7 | The concept of flexicurity breaks with this antagonism. Employers may be keen to have stable and secure working relationships and motivated staff, while workers may be similarly keen for flexible working time, flexible work organisation and flexible pay arrangements. These new kinds of labour markets can thus generate a new interplay between flexibility and security. |
| --- | --- |

3.7

The concept of flexicurity breaks with this antagonism. Employers may be keen to have stable and secure working relationships and motivated staff, while workers may be similarly keen for flexible working time, flexible work organisation and flexible pay arrangements. These new kinds of labour markets can thus generate a new interplay between flexibility and security.

| 3.8 | Within the labour market, the Danish flexicurity system combines the dynamism of a liberal market economy with the social security of a Scandinavian welfare state through universal public service and income equalisation. Seen in a broader perspective, this is one result of the political objective to give people opportunities in their working lives and to redistribute resources via public-sector budgets and activities. This in turn generates social cohesion through a strong policy of income equalisation and action to head off major social tensions. It also gives workers security to adapt and to cope with the flexibility of the system. |
| --- | --- |

3.8

Within the labour market, the Danish flexicurity system combines the dynamism of a liberal market economy with the social security of a Scandinavian welfare state through universal public service and income equalisation. Seen in a broader perspective, this is one result of the political objective to give people opportunities in their working lives and to redistribute resources via public-sector budgets and activities. This in turn generates social cohesion through a strong policy of income equalisation and action to head off major social tensions. It also gives workers security to adapt and to cope with the flexibility of the system.

4.   The role of the social partners

| 4.1 | The social partners have traditionally played a key role in decision-making and administrative arrangements in labour-market and training policy. Their input has helped generate creative and balanced solutions to market and innovation difficulties and to equip the country well to adapt and develop in the ways demanded by globalisation. The social partners are, after all, in a position to assess any needs that may be reported and make any changes that may be necessary. Over time, close dialogue among the various stakeholders also generates social capital by boosting confidence, fostering responsibility and promoting mutual understanding. |
| --- | --- |

4.1

The social partners have traditionally played a key role in decision-making and administrative arrangements in labour-market and training policy. Their input has helped generate creative and balanced solutions to market and innovation difficulties and to equip the country well to adapt and develop in the ways demanded by globalisation. The social partners are, after all, in a position to assess any needs that may be reported and make any changes that may be necessary. Over time, close dialogue among the various stakeholders also generates social capital by boosting confidence, fostering responsibility and promoting mutual understanding.

| 4.2 | The current situation has historical roots stretching back more than a century. The typically Danish labour-market model, for instance, has its roots in the 1899 ‘September compromise’ between the Danish Confederation of Trade Unions (LO — Landsorganisationen) and the Confederation of Danish Employers (DA — Dansk Arbejdsgiverforening), both of which had only recently been set up as nationwide organisations. This was the world's first general agreement and has served as the framework for agreement and interplay between the social partners ever since. |
| --- | --- |

4.2

The current situation has historical roots stretching back more than a century. The typically Danish labour-market model, for instance, has its roots in the 1899 ‘September compromise’ between the Danish Confederation of Trade Unions (LO — Landsorganisationen) and the Confederation of Danish Employers (DA — Dansk Arbejdsgiverforening), both of which had only recently been set up as nationwide organisations. This was the world's first general agreement and has served as the framework for agreement and interplay between the social partners ever since.

| 4.2.1 | Employers accepted the main trade union body as a negotiating partner, while employees accepted employers' right to hire and fire — and thus their right to manage. This basic provision has helped form the liberal mindset that prevails in Denmark in relation to firing rules. Another key element of the September compromise was a commitment to good industrial relations for the duration of the agreement. The social partners' central tenet of voluntary labour-market regulation and conflict-resolution by the partners themselves remained in place until as late as 2003. Only when the EU refused to recognise independent implementation of directives by the social partners, did additional legislation begin to be introduced in Denmark. Appendix 4 gives more information on the historical development of the social partners' role and the establishment of the Danish model. |
| --- | --- |

4.2.1

Employers accepted the main trade union body as a negotiating partner, while employees accepted employers' right to hire and fire — and thus their right to manage. This basic provision has helped form the liberal mindset that prevails in Denmark in relation to firing rules. Another key element of the September compromise was a commitment to good industrial relations for the duration of the agreement. The social partners' central tenet of voluntary labour-market regulation and conflict-resolution by the partners themselves remained in place until as late as 2003. Only when the EU refused to recognise independent implementation of directives by the social partners, did additional legislation begin to be introduced in Denmark. Appendix 4 gives more information on the historical development of the social partners' role and the establishment of the Danish model.

| 4.3 | After many years of high inflation and highly volatile real-wage increases, the social partners recognised, from 1987/88 onwards, that agreements should also reflect overall socio-economic conditions. Of course, employers, workers and governments do have differing viewpoints in Denmark, but there is also a basic culture of dialogue and consensus that must be seen as part of social capital. The low power gaps that exist at every level of society help maintain this consensus culture. |
| --- | --- |

4.3

After many years of high inflation and highly volatile real-wage increases, the social partners recognised, from 1987/88 onwards, that agreements should also reflect overall socio-economic conditions. Of course, employers, workers and governments do have differing viewpoints in Denmark, but there is also a basic culture of dialogue and consensus that must be seen as part of social capital. The low power gaps that exist at every level of society help maintain this consensus culture.

| 4.4 | In policy terms, Denmark has, since the 1960s, developed a comprehensive public system of vocational supplementary and further training for people both in and out of work. This has made the entire workforce more adaptable. Throughout the whole of the twentieth century, the social partners also had (and indeed still have) an important role to play in public decision-making and in putting those decisions into practice. In contrast to developments in most other European countries, this role was even strengthened from 1993/94 onwards. |
| --- | --- |

4.4

In policy terms, Denmark has, since the 1960s, developed a comprehensive public system of vocational supplementary and further training for people both in and out of work. This has made the entire workforce more adaptable. Throughout the whole of the twentieth century, the social partners also had (and indeed still have) an important role to play in public decision-making and in putting those decisions into practice. In contrast to developments in most other European countries, this role was even strengthened from 1993/94 onwards.

| 4.5 | There has been a substantive shift in labour market policy, which used to be regulatory in approach, but is now needs-based and tailored to providing individual solutions. The social partners — and the local authorities — became the key players in the fourteen regional labour market councils which were given both the powers and the public resources to put action on unemployment and regional labour market policy at the top of their list of priorities. |
| --- | --- |

4.5

There has been a substantive shift in labour market policy, which used to be regulatory in approach, but is now needs-based and tailored to providing individual solutions. The social partners — and the local authorities — became the key players in the fourteen regional labour market councils which were given both the powers and the public resources to put action on unemployment and regional labour market policy at the top of their list of priorities.

| 4.6 | Over many years, therefore, the social partners have built up a broad, collective awareness of what it means to shoulder social responsibility, while the authorities have learnt to draw on their resources and influence. The social partners have unique information and knowledge about the labour market and can thus identify needs reliably and quickly. Through their corporatist input, they provide the authorities with free resources, and find creative solutions to joint problems through discussions and decision-making forums. Also, the organisations are vital to ensuring that policies are adopted, implemented and — not least — accepted. The authorities are thus dependent on the social partners' cooperation in the flexicurity arrangements. |
| --- | --- |

4.6

Over many years, therefore, the social partners have built up a broad, collective awareness of what it means to shoulder social responsibility, while the authorities have learnt to draw on their resources and influence. The social partners have unique information and knowledge about the labour market and can thus identify needs reliably and quickly. Through their corporatist input, they provide the authorities with free resources, and find creative solutions to joint problems through discussions and decision-making forums. Also, the organisations are vital to ensuring that policies are adopted, implemented and — not least — accepted. The authorities are thus dependent on the social partners' cooperation in the flexicurity arrangements.

5.   The right policy mix

| 5.1 | To fully understand the Danish flexicurity system, it is important to consider the social context of which that system is a part. Moreover, economic policy and the public sector also have an impact on the workings of the labour market and, together, shape the elements that may be called ‘the Danish model’. This interplay is illustrated in Appendix 7. |
| --- | --- |

5.1

To fully understand the Danish flexicurity system, it is important to consider the social context of which that system is a part. Moreover, economic policy and the public sector also have an impact on the workings of the labour market and, together, shape the elements that may be called ‘the Danish model’. This interplay is illustrated in Appendix 7.

| 5.2 | In the second half of the 1980s and the first half of the 1990s, the Danish economy was in crisis. Between 1987 and 1993, for instance, the average annual growth was running at 0.8 %, while unemployment rose from 5 % in 1987 to 9.6 % in 1993. The crisis was the result, among other things, of the economic constraints that had been introduced in the wake of the big government deficits of the previous years. |
| --- | --- |

5.2

In the second half of the 1980s and the first half of the 1990s, the Danish economy was in crisis. Between 1987 and 1993, for instance, the average annual growth was running at 0.8 %, while unemployment rose from 5 % in 1987 to 9.6 % in 1993. The crisis was the result, among other things, of the economic constraints that had been introduced in the wake of the big government deficits of the previous years.

| 5.3 | From 1993 onwards, active labour market policy was being strengthened just at the time the economy was also being boosted by low interest rates and an expansive economic policy. As a result, at the start of the growth period from the mid-1990s onwards, the Danish public deficit was so big that the stability and growth pact rules, had they existed at the time, would not have been met. Property funding rules were also changed (allowing longer loan repayment periods and the possibility of refinancing), thereby giving people more disposable income. High growth, falling unemployment and burgeoning optimism made it easier for people to accept more stringent labour market rules. |
| --- | --- |

5.3

From 1993 onwards, active labour market policy was being strengthened just at the time the economy was also being boosted by low interest rates and an expansive economic policy. As a result, at the start of the growth period from the mid-1990s onwards, the Danish public deficit was so big that the stability and growth pact rules, had they existed at the time, would not have been met. Property funding rules were also changed (allowing longer loan repayment periods and the possibility of refinancing), thereby giving people more disposable income. High growth, falling unemployment and burgeoning optimism made it easier for people to accept more stringent labour market rules.

| 5.4 | The extra public spending was used, among other things, on major schemes to expand childcare cover so that women with small children were genuinely available for work. |
| --- | --- |

5.4

The extra public spending was used, among other things, on major schemes to expand childcare cover so that women with small children were genuinely available for work.

| 5.5 | The increased focus on labour market policies also meant more emphasis on training and further training, with the state providing massive support for further training measures for people both in and out of work. The support was given not only to fund training but also, to some extent, to offset loss of earnings. The number of training posts for young people was also increased at every level. |
| --- | --- |

5.5

The increased focus on labour market policies also meant more emphasis on training and further training, with the state providing massive support for further training measures for people both in and out of work. The support was given not only to fund training but also, to some extent, to offset loss of earnings. The number of training posts for young people was also increased at every level.

| 5.6 | In broad terms, it has to be said that the Danish system, involving high levels of unemployment benefit and thus a high ‘acceptable’ wage, does require a skilled and productive workforce. If a large pool of low-skilled people is allowed to develop who are unable to match the wage levels obviously required by the high unemployment benefits, excessively high unemployment is bound to ensue. |
| --- | --- |

5.6

In broad terms, it has to be said that the Danish system, involving high levels of unemployment benefit and thus a high ‘acceptable’ wage, does require a skilled and productive workforce. If a large pool of low-skilled people is allowed to develop who are unable to match the wage levels obviously required by the high unemployment benefits, excessively high unemployment is bound to ensue.

| 5.7 | From the mid-1990s onwards, an investment-based economic strategy was successfully introduced, with growth being generated through proactive reforms and investment in education and public services. Confidence in the future and a high degree of income security encourage consumers to buy and ensure a high level of domestic demand. |
| --- | --- |

5.7

From the mid-1990s onwards, an investment-based economic strategy was successfully introduced, with growth being generated through proactive reforms and investment in education and public services. Confidence in the future and a high degree of income security encourage consumers to buy and ensure a high level of domestic demand.

| 5.8 | The current economic strategy was a response to the economic crisis Denmark experienced from 1987 onwards, when the government reduced the large public and balance-of-payments deficits through savings and cuts. The savings strategy did sort out the imbalances, but, in turn, resulted in low growth and increasingly high unemployment. The current strategy appears to safeguard growth and employment while balancing public finances and securing a sound balance-of-payments position. This, incidentally, is a combination unseen in Denmark since before the oil crises of the 1970s. |
| --- | --- |

5.8

The current economic strategy was a response to the economic crisis Denmark experienced from 1987 onwards, when the government reduced the large public and balance-of-payments deficits through savings and cuts. The savings strategy did sort out the imbalances, but, in turn, resulted in low growth and increasingly high unemployment. The current strategy appears to safeguard growth and employment while balancing public finances and securing a sound balance-of-payments position. This, incidentally, is a combination unseen in Denmark since before the oil crises of the 1970s.

6.   Current challenges

| 6.1 | Even although Danish-style flexicurity has had positive results over the past few years, there are of course still challenges that need to be addressed. |
| --- | --- |

6.1

Even although Danish-style flexicurity has had positive results over the past few years, there are of course still challenges that need to be addressed.

| 6.2 | Globalisation and technological change are, broadly speaking, putting pressure on the Danish labour market. Unskilled workers in particular are coming under pressure as they face competition from lower-wage countries and automated production. |
| --- | --- |

6.2

Globalisation and technological change are, broadly speaking, putting pressure on the Danish labour market. Unskilled workers in particular are coming under pressure as they face competition from lower-wage countries and automated production.

| 6.2.1 | So far, Denmark has dealt with this pressure by reducing the number of unskilled workers on the labour market, since more older unskilled workers are leaving the labour market than young ones entering it. As things stand, however, many young people do not receive skills training — something which, in the long run, may undermine the Danish flexicurity system. Thus, unless the supply of skilled workers is kept fairly much in sync with demand, public expenditure on unemployment benefits and other transfers will simply be too high. |
| --- | --- |

6.2.1

So far, Denmark has dealt with this pressure by reducing the number of unskilled workers on the labour market, since more older unskilled workers are leaving the labour market than young ones entering it. As things stand, however, many young people do not receive skills training — something which, in the long run, may undermine the Danish flexicurity system. Thus, unless the supply of skilled workers is kept fairly much in sync with demand, public expenditure on unemployment benefits and other transfers will simply be too high.

| 6.2.2 | Some firms in Denmark are closing and relocating all or part of their production operations to lower-wage countries. This is a challenge — especially in remote areas that are very sensitive to the closure of individual companies. The Danish labour market, which is structurally dominated by small and medium-sized enterprises, is, however, viewed as a dynamic entity, so that, instead of trying to hold onto these jobs, policymakers, working together with the social partners, are seeking to create new and more competitive ones. |
| --- | --- |

6.2.2

Some firms in Denmark are closing and relocating all or part of their production operations to lower-wage countries. This is a challenge — especially in remote areas that are very sensitive to the closure of individual companies. The Danish labour market, which is structurally dominated by small and medium-sized enterprises, is, however, viewed as a dynamic entity, so that, instead of trying to hold onto these jobs, policymakers, working together with the social partners, are seeking to create new and more competitive ones.

| 6.3 | The high degree of labour market turnover means that employers are less inclined to pay for further training as they do not know how long the staff will remain in employment. This applies in particular to the unskilled, since employers do more to keep and train hard-to-come-by specialist workers, and also because unskilled workers are not always motivated to engage in further training. For that reason, there is a comprehensive, publicly subsidised system of training and further training for both unskilled and skilled workers, with compulsory contributions from employers, since a well-trained workforce is vital to the workings of the Danish flexicurity system, and it is politically desirable to pursue a broad-based, proactive approach to upskilling. |
| --- | --- |

6.3

The high degree of labour market turnover means that employers are less inclined to pay for further training as they do not know how long the staff will remain in employment. This applies in particular to the unskilled, since employers do more to keep and train hard-to-come-by specialist workers, and also because unskilled workers are not always motivated to engage in further training. For that reason, there is a comprehensive, publicly subsidised system of training and further training for both unskilled and skilled workers, with compulsory contributions from employers, since a well-trained workforce is vital to the workings of the Danish flexicurity system, and it is politically desirable to pursue a broad-based, proactive approach to upskilling.

| 6.4 | Many immigrants find it difficult to gain a foothold on the Danish labour market, thereby also limiting their chances of integration. The labour market difficulties are due, among other things, to the fact that immigrant groups and their descendants do not have the skills required to attain Denmark's high levels of unemployment benefit and wages. Immigrants and their descendants are, for instance, less well-educated than ethnic Danes; they have, on average, a lower participation rate on the labour market and suffer from higher unemployment than the rest of the population. Difficulties may be linguistic, social or educational. |
| --- | --- |

6.4

Many immigrants find it difficult to gain a foothold on the Danish labour market, thereby also limiting their chances of integration. The labour market difficulties are due, among other things, to the fact that immigrant groups and their descendants do not have the skills required to attain Denmark's high levels of unemployment benefit and wages. Immigrants and their descendants are, for instance, less well-educated than ethnic Danes; they have, on average, a lower participation rate on the labour market and suffer from higher unemployment than the rest of the population. Difficulties may be linguistic, social or educational.

| 6.4.1 | This may be explained in part by cultural differences and ingrained habits. Experience shows that unemployment fluctuates more among these than among other groups. When unemployment is falling, for instance, employers are more inclined to explore new avenues and take on people from a different ethnic background. A high-employment, low- unemployment environment can thus, in itself, provide immigrants and their descendants with better access to work, without, however solving the integration issue as a whole. Demographic developments mean that Danish jobs face having to open up more fully to immigrants over the coming years. |
| --- | --- |

6.4.1

This may be explained in part by cultural differences and ingrained habits. Experience shows that unemployment fluctuates more among these than among other groups. When unemployment is falling, for instance, employers are more inclined to explore new avenues and take on people from a different ethnic background. A high-employment, low- unemployment environment can thus, in itself, provide immigrants and their descendants with better access to work, without, however solving the integration issue as a whole. Demographic developments mean that Danish jobs face having to open up more fully to immigrants over the coming years.

| 6.5 | The Danish welfare model is underpinned by a high percentage of working women — in order both to provide the requisite public services and to maintain high tax revenues. On the one hand, this means that women are more economically independent, while, on the other, it presents challenges in terms of reconciling family life and work. Compared with many European countries, Denmark has made substantial progress in this area but there is still a long way to go to achieve, among other things, equal career opportunities for men and women. |
| --- | --- |

6.5

The Danish welfare model is underpinned by a high percentage of working women — in order both to provide the requisite public services and to maintain high tax revenues. On the one hand, this means that women are more economically independent, while, on the other, it presents challenges in terms of reconciling family life and work. Compared with many European countries, Denmark has made substantial progress in this area but there is still a long way to go to achieve, among other things, equal career opportunities for men and women.

| 6.6 | The Danish system is expensive for the state, which pays a substantial proportion of the wage-replacement benefits to the unemployed. Spending on passive labour market policies, for instance, made up 2.7 % of GDP in 2003 — an EU record. The funding of the Danish welfare society is set to come under pressure in future from a number of sides. To maintain welfare state funding without tax hikes requires higher employment rates among people of working age. |
| --- | --- |

6.6

The Danish system is expensive for the state, which pays a substantial proportion of the wage-replacement benefits to the unemployed. Spending on passive labour market policies, for instance, made up 2.7 % of GDP in 2003 — an EU record. The funding of the Danish welfare society is set to come under pressure in future from a number of sides. To maintain welfare state funding without tax hikes requires higher employment rates among people of working age.

| 6.6.1 | At around 49 %, the Danish tax burden is among the highest in the EU, where the average is around 40 %. Consumer taxation is particularly high, although the country does not top the list for tax on labour. Income tax is high and very progressive, but employers are not, broadly speaking, subject to social security charges. The Danish tax structure is set out in greater detail in Appendix 5. Because of globalisation, some tax revenue may come under pressure in the future. |
| --- | --- |

6.6.1

At around 49 %, the Danish tax burden is among the highest in the EU, where the average is around 40 %. Consumer taxation is particularly high, although the country does not top the list for tax on labour. Income tax is high and very progressive, but employers are not, broadly speaking, subject to social security charges. The Danish tax structure is set out in greater detail in Appendix 5. Because of globalisation, some tax revenue may come under pressure in the future.

| 6.6.2 | Demographic developments mean a rise in the number of older people and a fall in the number of those who are economically active. This is due to the fact that the youth generations are small, the post-war generations are big, and people are also living longer. In the debate about possible reforms of the welfare society, labour market policy — including unemployment benefits — also comes into play. The Danish pension system is, however, to some extent ready to meet these changes (cf. Appendix 6). There may be a labour shortage and, since women, who constitute the labour reserve, are already to a large extent part of the workforce, new ways will have to be found of boosting employment. These may include raising the retirement age or increasing the numbers of immigrant workers with the requisite skills. |
| --- | --- |

6.6.2

Demographic developments mean a rise in the number of older people and a fall in the number of those who are economically active. This is due to the fact that the youth generations are small, the post-war generations are big, and people are also living longer. In the debate about possible reforms of the welfare society, labour market policy — including unemployment benefits — also comes into play. The Danish pension system is, however, to some extent ready to meet these changes (cf. Appendix 6). There may be a labour shortage and, since women, who constitute the labour reserve, are already to a large extent part of the workforce, new ways will have to be found of boosting employment. These may include raising the retirement age or increasing the numbers of immigrant workers with the requisite skills.

| 6.7 | Around a quarter of the population of working age is without a job and in receipt of some form of public support (for unemployment, ‘activation’, early retirement etc.) Around half of these people have withdrawn permanently from the labour market as a result of physical wear-and-tear, unemployment or of their own volition, while the other half are only temporarily out of employment. The fact that such people are given public support is a basic tenet of the welfare state, but this does represent a challenge for future welfare society funding. To safeguard the long-term funding of the welfare society, it is essential to bring down the percentage of the population leaving the labour market early. |
| --- | --- |

6.7

Around a quarter of the population of working age is without a job and in receipt of some form of public support (for unemployment, ‘activation’, early retirement etc.) Around half of these people have withdrawn permanently from the labour market as a result of physical wear-and-tear, unemployment or of their own volition, while the other half are only temporarily out of employment. The fact that such people are given public support is a basic tenet of the welfare state, but this does represent a challenge for future welfare society funding. To safeguard the long-term funding of the welfare society, it is essential to bring down the percentage of the population leaving the labour market early.

| 6.8 | Bit by bit, labour market policy is increasingly being regulated by EU rules and practice. Conditions on the Danish labour market have traditionally been a matter for the social partners themselves rather than for legislation. If EU rules become too detailed, there is a risk that public acceptance will dwindle and that developments will pull in a different direction from that desired by the social partners. The EU's open method of coordination appears to offer a way to allow traditional Danish practice to continue to develop, while synchronising European employment and labour market policy. |
| --- | --- |

6.8

Bit by bit, labour market policy is increasingly being regulated by EU rules and practice. Conditions on the Danish labour market have traditionally been a matter for the social partners themselves rather than for legislation. If EU rules become too detailed, there is a risk that public acceptance will dwindle and that developments will pull in a different direction from that desired by the social partners. The EU's open method of coordination appears to offer a way to allow traditional Danish practice to continue to develop, while synchronising European employment and labour market policy.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  See OECD employment outlook 2005, table H.

1

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/54 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/54

---

Opinion of the European Economic and Social Committee on the Amended proposal for a Council Directive amending Directive 77/388/EEC as regards the place of supply of services

(COM(2005) 334 final — 2003/0329 (CNS))

(2006/C 195/13)

On 14 October 2005, the European Commission decided to consult the European Economic and Social Committee, under Article 250 of the Treaty establishing the European Community, on the

The Section for Economic and Monetary Union and Economic and Social Cohesion, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 28 April 2006. The rapporteur was Mr Metzler.

At its 427th plenary session, held on 17 and 18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 143 votes to 0 with 4 abstentions.

Summary and recommendations

The Committee welcomes the initiative as a step in the right direction. The proposal under review aims to make some particularly controversial VAT rules concerning the place of supply of services simpler and more transparent. The Committee welcomes this initiative on the sixth VAT directive; it is a step in the right direction towards implementation of the Lisbon process and achievement of the objectives set out in the Internal Market Directive. In order to function effectively, European civil society needs an effective and competitive economy. Comparable rules must be applied if this key objective is to be achieved. The amended proposal is welcome in that it seeks to avoid distortions of competition, by extending taxation at the place where services are supplied. As explained below, this requires the requisite accompanying mechanisms to be established in parallel, to enable small and medium enterprises to participate in intra-Community trade without having to deal with excessive extra red tape. A case in point is the establishment of an effective one-stop shop system.

In its opinion of 28 April 2004, the EESC has already mentioned the vulnerability of VAT to tax evasion and recommended the development of an alternative system capable of ensuring more effective tax collection. The same opinion criticised the unequal treatment of individuals/consumers arising from the deficiencies of the current VAT system. These deficiencies should be quickly dealt with.

Distortions of competition should be eliminated as soon as possible. An example of distortion arises if a company can only offer its services on the market at an advantageous price by evading VAT at an intermediary stage, thus securing an unjustified competitive advantage. The Committee would therefore remind the competent institutions that there is a need for them to act.

Linguistic confusion can spell the end of joint action and common markets. Agreement on definitions is a precondition for the application of harmonised laws. The EESC would therefore call for efforts to overcome confusion in the establishment of basic concepts. The concept of ‘immovable property’ mentioned in Article 9a of the amended proposal is a good example of how the ECJ is trying to remedy confusion arising from divergent definitions in the various Member States. In doing so, it assumes that distinct concepts under Community law are fundamental to the sixth VAT directive (cf. the concept of ‘letting of immovable property’, Mayerhofer, C-315700, judgment of 16 January 2003).

This also means that legal acts which have been acknowledged as necessary must be implemented without delay, in order to give legislators a chance to transpose them into national VAT legislation as soon as possible. However, it may be doubted whether implementation of the directive in question can be achieved on 1 July 2006.

Explanatory statement

1.   Introduction

In the Lisbon conclusions, the EU resolved inter alia to become the most competitive economy in the world over the next few years. For this to happen, the European Union and the Member States comprising it need to have coherent, coordinated and competitive fiscal legislation in place. VAT is closely harmonised by the 6th EC directive in particular; however, barriers and obstacles to intra-Community trade still exist, as the EESC has already pointed out in its opinion of 28 April 2004 on Rules/place of supply of services (ECO/128) concerning the draft Directive of 23 December 2003.

The proposal to amend the sixth VAT directive ties in with the proposal for a directive of 23 December 2003 and includes a coherent revision of the rules determining the place of taxation for services to businesses (B2B) and to private clients (B2C).

2.   Historical background

| 2.1 | Since the first and second EC directives of 11 April 1967, the Community has set itself the goal of dismantling fiscal barriers between Member States. A unified place of taxation is needed to make this vision come true. The country of origin principle which the Directive aims to apply would result in taxation in the country of establishment of all taxable activities conducted by economic operators in that country and within the framework of the European Community. According to this principle, goods delivered from, say, France to another Member State would be subject to taxation at French VAT rates. The same would apply to services provided from France. |
| --- | --- |

2.1

Since the first and second EC directives of 11 April 1967, the Community has set itself the goal of dismantling fiscal barriers between Member States. A unified place of taxation is needed to make this vision come true. The country of origin principle which the Directive aims to apply would result in taxation in the country of establishment of all taxable activities conducted by economic operators in that country and within the framework of the European Community. According to this principle, goods delivered from, say, France to another Member State would be subject to taxation at French VAT rates. The same would apply to services provided from France.

| 2.2 | However, to avoid distortions of competition, the country of origin principle would require VAT rates in individual Member States to be aligned. Above all, an internal clearing system would be needed, given that value added tax represents a significant proportion of tax revenue in Member States and of EU funding. |
| --- | --- |

2.2

However, to avoid distortions of competition, the country of origin principle would require VAT rates in individual Member States to be aligned. Above all, an internal clearing system would be needed, given that value added tax represents a significant proportion of tax revenue in Member States and of EU funding.

| 2.3 | With this in mind, the EU has decided not to apply the country of origin principle, or at least not during a lengthy transition period. |
| --- | --- |

2.3

With this in mind, the EU has decided not to apply the country of origin principle, or at least not during a lengthy transition period.

| 2.4 | However, the European Commission has taken various measures to boost trade between individual Member States, to remove bureaucratic obstacles and to reduce or if possible entirely avoid distortions of competition, in particular those arising from differing taxation rates. In the past, the Council in particular has contributed to the retention of divergent systems. The EESC continues to support the Commission in all its efforts to align these systems and to promote the Internal Market. |
| --- | --- |

2.4

However, the European Commission has taken various measures to boost trade between individual Member States, to remove bureaucratic obstacles and to reduce or if possible entirely avoid distortions of competition, in particular those arising from differing taxation rates. In the past, the Council in particular has contributed to the retention of divergent systems. The EESC continues to support the Commission in all its efforts to align these systems and to promote the Internal Market.

3.   The purpose and objective of the new legislation

In general, the place of supply of services determines where VAT is applied. Given that basic VAT rates within the EU range from 15 to 25 %, there is considerable scope for distortion of competition in the areas which the amended proposal would regulate, both between companies/VAT payers within the EU and also vis-à-vis companies from third countries. ECJ case law is increasingly tending to proscribe distortions of competition through other VAT procedures; this also applies to competition between taxable enterprises and public sector agents. For example, in its judgment of 13 October 2005 on Case C-200/04 (Heidelberg Tax Office vs. iSt internationale Sprach- und Studienreisen GmbH), the ECJ ruled that in the case in question any additional conditions for the application of Article 26 of the sixth EC directive would clearly result in unlawful discrimination between economic operators, thus inevitably causing a distortion of competition between the economic operators concerned and impairing consistency in the application of the directive.

4.   Amended proposal of 20 July 2005 for a Council Regulation

4.1   General remark

One of the above-mentioned measures is reflected in the amended proposal of 20 July 2005 for a Council Regulation (COM 334/2005 final). This amended proposal was preceded by the proposal of 23 December 2003 for a Council Directive amending Directive 77/388/EEC as regards the place of supply of services (COM(2003) 822 final -2003/0329(CNS)).

The European Economic and Social Committee commented on this proposal for a Directive on 28 April 2004. In this opinion, the EESC emphasised that the new rules fell far short of achieving the Commission's general goal of simplification. The Committee stressed that scope for differing interpretations of the rules by Member States and for independent decisions by tax authorities should be limited as far as possible. Above all, in view of the problems which had already arisen, it felt that VIES was insufficient as a monitoring system.

4.2   Consultation document

In the meantime, several consultations have been held on the place of supply of services. A general conclusion of these consultations was that the rules on the place of supply of services needed to be reviewed, as the existing rules were seen as problematic. At the same time, it was generally acknowledged that any changes in this area should comply with requirements for monitoring by tax authorities and the tax obligations of businesses, while also reflecting the principle that value added tax should flow to the Member State in which services are used. A point that was repeatedly emphasised by those taking part in consultations was the need for workable rules, which would not be too costly to apply and which would not impede intra-Community trade.

4.3   General rules in the amended proposal

| 4.3.1 | A strict distinction needs to be drawn between business-to-business services (services provided to taxable persons (1)) and business-to-consumer services (services provided to non-taxable persons (2)). The proposal in question clearly differentiates between treatment of these two eventualities. |
| --- | --- |

4.3.1

A strict distinction needs to be drawn between business-to-business services (services provided to taxable persons (1)) and business-to-consumer services (services provided to non-taxable persons (2)). The proposal in question clearly differentiates between treatment of these two eventualities.

| 4.3.2 | In the case of services to taxable persons, the general rule should be that the place of supply of services depends on the place where the client is established, rather than the service provider. |
| --- | --- |

4.3.2

In the case of services to taxable persons, the general rule should be that the place of supply of services depends on the place where the client is established, rather than the service provider.

| 4.3.3 | The document under review proposes to maintain the place of establishment of the service provider as the general rule, in the case of services provided to non-taxable persons. The reason for this decision is that taxation of services provided to non-taxable persons in other EU Member States would result in an excessive administrative burden on enterprises providing the services, such as a requirement to register as a VAT payer in the countries concerned. |
| --- | --- |

4.3.3

The document under review proposes to maintain the place of establishment of the service provider as the general rule, in the case of services provided to non-taxable persons. The reason for this decision is that taxation of services provided to non-taxable persons in other EU Member States would result in an excessive administrative burden on enterprises providing the services, such as a requirement to register as a VAT payer in the countries concerned.

| 4.3.4 | In the absence of a mechanism enabling tax to be collected in the Member States of consumption without creating undue administrative complications, it is unrealistic to tax all supplies to non-taxable persons at the place of consumption. |
| --- | --- |

4.3.4

In the absence of a mechanism enabling tax to be collected in the Member States of consumption without creating undue administrative complications, it is unrealistic to tax all supplies to non-taxable persons at the place of consumption.

| 4.3.5 | However, some exceptions to this general rule are necessary. |
| --- | --- |

4.3.5

However, some exceptions to this general rule are necessary.

5.   Gist of the proposal for a directive (amendments)

5.1   Exceptions to the general rule

Although there has been a lot of support from those concerned by this subject within the EU for the proposed changes in the place of taxation for services, there have also been various calls for continued validity of the country of origin principle and retention of the existing general provisions.

5.2   Details of the new proposals

The remarks briefly outline only the changes which would result from the proposed directive:

5.2.1   Article 6 — Services

| — | It is proposed to insert a sixth paragraph, which stipulates that services rendered between establishments shall not be treated under the directive as supplies. |
| --- | --- |

—

It is proposed to insert a sixth paragraph, which stipulates that services rendered between establishments shall not be treated under the directive as supplies.

5.2.2   Article 9d — Specific services to taxable persons

| — | Paragraph 2 has been reinserted and defines the place of supply for restaurant and catering services provided to taxable persons on board ships, aircraft or trains during a passenger transport service as the place of departure of the transport service. |
| --- | --- |

—

Paragraph 2 has been reinserted and defines the place of supply for restaurant and catering services provided to taxable persons on board ships, aircraft or trains during a passenger transport service as the place of departure of the transport service.

The concern shared by the EESC for greater clarity has thus been taken into account.

| — | Paragraph 3 has been amended to define long-term hiring or leasing as an arrangement governed by an agreement providing for continuous possession or use of the movable tangible property throughout a continuous period of more than thirty days. This provision should rule out disputes (for example car hire by taxable persons for immediate use). |
| --- | --- |

—

Paragraph 3 has been amended to define long-term hiring or leasing as an arrangement governed by an agreement providing for continuous possession or use of the movable tangible property throughout a continuous period of more than thirty days. This provision should rule out disputes (for example car hire by taxable persons for immediate use).

5.2.3   Article 9f — Specific services to non-taxable persons

| — | Paragraph 1(c) has been amended to exempt the distance-learning services referred to in point (d) of Article 9g(1), which are the subject of a separate provision. |
| --- | --- |

—

Paragraph 1(c) has been amended to exempt the distance-learning services referred to in point (d) of Article 9g(1), which are the subject of a separate provision.

| — | In paragraph 1(d), restaurant and catering services have been included to ensure that they are taxed at the place where they are actually carried out. |
| --- | --- |

—

In paragraph 1(d), restaurant and catering services have been included to ensure that they are taxed at the place where they are actually carried out.

| — | In paragraph 2, the place of supply of restaurant and catering services on board ships, aircraft or trains during a passenger transport service has been notionally defined as the place of departure of the transport service. This amendment was made in response to a proposal which came up during the consultation process. |
| --- | --- |

—

In paragraph 2, the place of supply of restaurant and catering services on board ships, aircraft or trains during a passenger transport service has been notionally defined as the place of departure of the transport service. This amendment was made in response to a proposal which came up during the consultation process.

| — | In the case of long-term hire, i.e. for longer than 30 days, the place of supply of a means of transport to non-taxable persons is defined as the place where the customer is established, has his permanent address or usually resides. |
| --- | --- |

—

In the case of long-term hire, i.e. for longer than 30 days, the place of supply of a means of transport to non-taxable persons is defined as the place where the customer is established, has his permanent address or usually resides.

| — | In the case of short-term hire (e.g. hire of a car for a few days), the place of supply is the place where the means of transport is put at the disposal of the non-taxable person. This provision was also welcomed by the majority of respondents to the consultation process. |
| --- | --- |

—

In the case of short-term hire (e.g. hire of a car for a few days), the place of supply is the place where the means of transport is put at the disposal of the non-taxable person. This provision was also welcomed by the majority of respondents to the consultation process.

5.2.4   Article 9g — Services which can be supplied at a distance to non-taxable persons

| — | This article has been completely overhauled. The services listed in Article 9g(1) are supplied in the place where the client is established, has his permanent address or usually resides.
  During consultation there was an overwhelmingly negative response to this provision due to the introduction of excessive red tape arising from compliance with VAT obligations. For this reason, introduction of one-stop shop arrangements were seen as a precondition for this provision. |
| --- | --- |

—

This article has been completely overhauled. The services listed in Article 9g(1) are supplied in the place where the client is established, has his permanent address or usually resides.

During consultation there was an overwhelmingly negative response to this provision due to the introduction of excessive red tape arising from compliance with VAT obligations. For this reason, introduction of one-stop shop arrangements were seen as a precondition for this provision.

| — | The EESC calls for a clearer definition of the services to be subsumed under this article. |
| --- | --- |

—

The EESC calls for a clearer definition of the services to be subsumed under this article.

5.2.5   Article 9h — Services supplied by an intermediary to non-taxable persons

| — | The amendment makes it clear that the place of supply of services is determined by the place in which the principal transaction is carried out according to the provisions of Articles 9a to 9g and 9i. |
| --- | --- |

—

The amendment makes it clear that the place of supply of services is determined by the place in which the principal transaction is carried out according to the provisions of Articles 9a to 9g and 9i.

5.2.6   Article 9i — Services to non-taxable persons outside the Community

| — | The changes here follow on from the deletions in Article 9g, as mentioned earlier. |
| --- | --- |

—

The changes here follow on from the deletions in Article 9g, as mentioned earlier.

5.2.7   Article 9j — Avoidance of double taxation

| — | The rules for determining the place of supply of e-commerce, telecommunication and broadcasting services provided by a supplier established outside the EU will remain unchanged in future. The place of supply will therefore remain the Member State in which a non-taxable client is established or the Member State in which the service is actually used. |
| --- | --- |

—

The rules for determining the place of supply of e-commerce, telecommunication and broadcasting services provided by a supplier established outside the EU will remain unchanged in future. The place of supply will therefore remain the Member State in which a non-taxable client is established or the Member State in which the service is actually used.

As the relevant provisions are now covered by Articles 9 g and 9h, former points (h), (j) and (l) are deleted.

5.2.8   Article 22(6)(b) in the version set out in Article 28h — Extension of the recapitulative statement

| — | The proposed amendment to the text of this article envisages extending the recapitulative statement submitted by each taxable person identified for value added tax purposes to certain transactions arising from the provision of services. This applies to other services provided to consignees identified for value added tax purposes in the transactions referred to in the fifth subparagraph and to the taxable customers supplied with services under the conditions provided for in Article 9(1). |
| --- | --- |

—

The proposed amendment to the text of this article envisages extending the recapitulative statement submitted by each taxable person identified for value added tax purposes to certain transactions arising from the provision of services. This applies to other services provided to consignees identified for value added tax purposes in the transactions referred to in the fifth subparagraph and to the taxable customers supplied with services under the conditions provided for in Article 9(1).

5.2.9   Technical changes

Other amendments are mainly technical changes; we would therefore refer to point 2.12 of the proposal's explanatory memorandum.

6.   Own proposals and observations

6.1   Place of supply of services for the provision of services to taxable persons

| 6.1.1 | The Committee welcomes the planned extension of the reverse-charge procedure to company level and thus to the exchange of services between taxable persons. |
| --- | --- |

6.1.1

The Committee welcomes the planned extension of the reverse-charge procedure to company level and thus to the exchange of services between taxable persons.

| 6.1.2 | However, this is dependent on the persons concerned being able to carry out all aspects of the reverse-charge procedure without any problems. Difficulties could arise if the service provider delegates the evaluation of turnover or of VAT details, the place of supply, taxation obligations and tax rates, or the possibility of tax exemption to the recipient of services, without giving the latter the option of assessing this information reliably. |
| --- | --- |

6.1.2

However, this is dependent on the persons concerned being able to carry out all aspects of the reverse-charge procedure without any problems. Difficulties could arise if the service provider delegates the evaluation of turnover or of VAT details, the place of supply, taxation obligations and tax rates, or the possibility of tax exemption to the recipient of services, without giving the latter the option of assessing this information reliably.

| 6.1.3 | Companies should not be burdened with extra recording and reporting requirements. There is no doubt that businesses within the EU should be enabled to reliably determine whether a taxable person or company established in another EU country is obliged to apply the reverse-charge mechanism to the relevant transaction. Excessive liability of the company providing services in the event of a subsequent failure to reverse VAT charges would undermine the system as a whole and lead to resistance from those affected by it. |
| --- | --- |

6.1.3

Companies should not be burdened with extra recording and reporting requirements. There is no doubt that businesses within the EU should be enabled to reliably determine whether a taxable person or company established in another EU country is obliged to apply the reverse-charge mechanism to the relevant transaction. Excessive liability of the company providing services in the event of a subsequent failure to reverse VAT charges would undermine the system as a whole and lead to resistance from those affected by it.

6.2   Services provided to non-taxable persons

| 6.2.1 | If services are provided by a company/taxable person to non-taxable persons, the reverse-charge procedure is excluded a priori. This mean that in the event of taxation being applied at the place where services are used, a company from another EU country would have to register as a VAT payer in the country where services are provided and to comply with VAT obligations there. To avoid red tape in this situation and thus minimise obstacles to intra-Community trade, unbureaucratic rules are needed. |
| --- | --- |

6.2.1

If services are provided by a company/taxable person to non-taxable persons, the reverse-charge procedure is excluded a priori. This mean that in the event of taxation being applied at the place where services are used, a company from another EU country would have to register as a VAT payer in the country where services are provided and to comply with VAT obligations there. To avoid red tape in this situation and thus minimise obstacles to intra-Community trade, unbureaucratic rules are needed.

| 6.2.2 | Any obligation to register as a VAT payer would result in significant extra red tape, additional costs and, in doubtful cases, to reluctance on the part of the taxable company to provide the service. Far from opening up the single market and creating a level playing field for companies in all Member States of the EU, this would significantly disadvantage EU companies established in other countries in comparison to domestic service providers. This can hardly be in the interests of dismantling barriers to trade. Therefore, extending taxation at the place where services are used to non-taxable persons is only a viable option if the proposed one-stop shop system operates smoothly and rapidly. Only then could companies be expected to provide taxable services, possibly in all 25 Member States, in the absence of the reverse-charge option. Otherwise there is a danger of the opposite effect, with small and medium enterprises being excluded from the single market. |
| --- | --- |

6.2.2

Any obligation to register as a VAT payer would result in significant extra red tape, additional costs and, in doubtful cases, to reluctance on the part of the taxable company to provide the service. Far from opening up the single market and creating a level playing field for companies in all Member States of the EU, this would significantly disadvantage EU companies established in other countries in comparison to domestic service providers. This can hardly be in the interests of dismantling barriers to trade. Therefore, extending taxation at the place where services are used to non-taxable persons is only a viable option if the proposed one-stop shop system operates smoothly and rapidly. Only then could companies be expected to provide taxable services, possibly in all 25 Member States, in the absence of the reverse-charge option. Otherwise there is a danger of the opposite effect, with small and medium enterprises being excluded from the single market.

7.   Refund procedure for input VAT

| 7.1 | The same applies to simplification of VAT obligations arising from the input VAT refund procedure. As is well known, problems connected with input VAT refunds mean that, particularly when the sums in question are relatively small, companies need to decide whether it is ‘worth’ submitting a claim to a foreign tax office or whether giving up any entitlement to a refund is a much more advantageous option. However, this is in de facto contradiction with the principle of the deductibility of input VAT which underlies the sixth VAT directive.
  In this connection, the Committee feels that efforts in some Member States to apply VAT at uniform rates across the board are severely in need of improvement. |
| --- | --- |

7.1

The same applies to simplification of VAT obligations arising from the input VAT refund procedure. As is well known, problems connected with input VAT refunds mean that, particularly when the sums in question are relatively small, companies need to decide whether it is ‘worth’ submitting a claim to a foreign tax office or whether giving up any entitlement to a refund is a much more advantageous option. However, this is in de facto contradiction with the principle of the deductibility of input VAT which underlies the sixth VAT directive.

In this connection, the Committee feels that efforts in some Member States to apply VAT at uniform rates across the board are severely in need of improvement.

| 7.2 | For this reason, it must be ensured that the Commission's proposals concerning the introduction of a one-stop shop system are implemented and monitored for effectiveness. |
| --- | --- |

7.2

For this reason, it must be ensured that the Commission's proposals concerning the introduction of a one-stop shop system are implemented and monitored for effectiveness.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  In this context, a taxable person is a business which has to pay VAT on the services which it provides, and can usually offset VAT on inputs against the VAT payable on its own activity.

1

(2)  A non-taxable person is a non-business person, usually a private individual/end user who is not required to file a VAT tax return.

2

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/58 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/58

---

Opinion of the European Economic and Social Committee on Tackling the corporation tax obstacles of small and medium-sized enterprises in the Internal Market — outline of a possible Home State Taxation pilot scheme

(COM(2005) 702 final)

(2006/C 195/14)

On 23 December 2005 the Commission decided to consult the European Economic and Social Committee, under Article 262 of the Treaty establishing the European Community, on

The Section for Economic and Monetary Union and Economic and Social Cohesion, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 28 April 2006. The rapporteur was Mr Levaux.

At its 427th plenary session, held on 17 and 18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 143 votes to 0 with 6 abstentions.

1.   Conclusions

| 1.1 | The EESC notes that it supports the harmonisation of tax rules in the EU in the long term. However, unfortunately many obstacles still stand in the way of harmonisation and consequently the EESC:






  — | reiterates its approval for the Commission's guidelines and efforts to foster the development of SMEs, but questions the effectiveness of the proposed scheme and its limits; |
| --- | --- | --- |

1.1

The EESC notes that it supports the harmonisation of tax rules in the EU in the long term. However, unfortunately many obstacles still stand in the way of harmonisation and consequently the EESC:

—

reiterates its approval for the Commission's guidelines and efforts to foster the development of SMEs, but questions the effectiveness of the proposed scheme and its limits;

| — | feels that it would be more relevant, for a pilot experiment, to propose more detailed provisions, which build on experience gained in the field, are based on voluntary commitments by Member States and SME business organisations and limit the trial period to five years, in order to obtain useful and replicable information; |
| --- | --- |

—

feels that it would be more relevant, for a pilot experiment, to propose more detailed provisions, which build on experience gained in the field, are based on voluntary commitments by Member States and SME business organisations and limit the trial period to five years, in order to obtain useful and replicable information;

| — | suggests that, in the longer term, the Commission draws from the various opinions cited below to formulate long-term guidelines that would serve as a basis for coherent solutions for SMEs, including ones advocating the drawing up of a European SME Statute. |
| --- | --- |

—

suggests that, in the longer term, the Commission draws from the various opinions cited below to formulate long-term guidelines that would serve as a basis for coherent solutions for SMEs, including ones advocating the drawing up of a European SME Statute.

2.   Summary of previous EESC opinions

| 2.1 | After several proposals in recent years, the Commission is presenting the communication under discussion here as a new initiative in the tax area — in particular corporate tax — which is designed to provide new opportunities for the development of small and medium-sized enterprises (SMEs), whose importance for job and wealth creation in the EU has been repeatedly highlighted, inter alia in the Lisbon Action Plan. |
| --- | --- |

2.1

After several proposals in recent years, the Commission is presenting the communication under discussion here as a new initiative in the tax area — in particular corporate tax — which is designed to provide new opportunities for the development of small and medium-sized enterprises (SMEs), whose importance for job and wealth creation in the EU has been repeatedly highlighted, inter alia in the Lisbon Action Plan.

| 2.2 | The European Economic and Social Committee has been consulted on a number of occasions since the end of the 1990s on proposals, recommendations and communications addressing this or related subjects. Below, it refers to its recent consultative and own-initiative opinions dealing with, inter alia, the concept of the ‘European company’ as applied to SMEs and the tax simplifications that are needed to quickly remove the obstacles faced by SMEs:






  — | in an own-initiative opinion delivered in 2000
   (1) on the European Charter for Small Companies, the EESC, as one of a dozen or so proposals, requested that: ‘The taxation system should be further simplified, and micro-businesses with a very small turnover should be exempted from excessive tax obligations’; |
| --- | --- | --- |

2.2

The European Economic and Social Committee has been consulted on a number of occasions since the end of the 1990s on proposals, recommendations and communications addressing this or related subjects. Below, it refers to its recent consultative and own-initiative opinions dealing with, inter alia, the concept of the ‘European company’ as applied to SMEs and the tax simplifications that are needed to quickly remove the obstacles faced by SMEs:

—

in an own-initiative opinion delivered in 2000
   (1) on the European Charter for Small Companies, the EESC, as one of a dozen or so proposals, requested that: ‘The taxation system should be further simplified, and micro-businesses with a very small turnover should be exempted from excessive tax obligations’;

| — | in an opinion issued in 2001
   (2) on the Communication from the Commission on Tax policy in the European Union — Priorities for the years ahead, the EESC stated that it was ‘...generally supportive of the Commission's tax policy objectives particularly in the need to coordinate corporate taxes to eliminate difficulties particularly for SMEs arising from national variations’; |
| --- | --- |

—

in an opinion issued in 2001
   (2) on the Communication from the Commission on Tax policy in the European Union — Priorities for the years ahead, the EESC stated that it was ‘...generally supportive of the Commission's tax policy objectives particularly in the need to coordinate corporate taxes to eliminate difficulties particularly for SMEs arising from national variations’;

| — | in 2002 the EESC delivered an own-initiative opinion
   (3) on a European Company Statute for SMEs which would enable SMEs to ‘... be treated on an equal footing with bigger companies ... offer them a European label to facilitate their activities in the internal market,’ and ‘... remove the risk of multiple taxation, etc.’; |
| --- | --- |

—

in 2002 the EESC delivered an own-initiative opinion
   (3) on a European Company Statute for SMEs which would enable SMEs to ‘... be treated on an equal footing with bigger companies ... offer them a European label to facilitate their activities in the internal market,’ and ‘... remove the risk of multiple taxation, etc.’;

| — | in its 2002 own-initiative opinion
   (4) on Direct company taxation, the EESC supported ‘... proposals aimed at speeding up measures to avoid double taxation ... establishing common principles to encourage an internal market where fair competition would prevail’ and stressed that ‘the objective of a harmonised tax base for all EU companies is compatible with the tax sovereignty of the EU's Member States and regions because it preserves their power to fix the level of tax’; |
| --- | --- |

—

in its 2002 own-initiative opinion
   (4) on Direct company taxation, the EESC supported ‘... proposals aimed at speeding up measures to avoid double taxation ... establishing common principles to encourage an internal market where fair competition would prevail’ and stressed that ‘the objective of a harmonised tax base for all EU companies is compatible with the tax sovereignty of the EU's Member States and regions because it preserves their power to fix the level of tax’;

| — | in 2003 the EESC issued an opinion
   (5) on the Proposal for a Council Directive amending Directive 90/435/EEC of 23 July 1990 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States in which it endorsed the Commission's efforts ‘aimed at eliminating, or at least reducing, the legal and economic double or multiple taxation of profits distributed by subsidiaries in the country in which the parent company is established’; |
| --- | --- |

—

in 2003 the EESC issued an opinion
   (5) on the Proposal for a Council Directive amending Directive 90/435/EEC of 23 July 1990 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States in which it endorsed the Commission's efforts ‘aimed at eliminating, or at least reducing, the legal and economic double or multiple taxation of profits distributed by subsidiaries in the country in which the parent company is established’;

| — | in an own-initiative opinion issued in 2003
   (6) on Taxation in the European Union: common principles, convergence of tax laws and the possibility of qualified majority voting, the EESC called for three issues to be addressed, including the introduction of ‘a common company tax base ...’ and the use of ‘qualified majority voting to establish minimum levels for the corporate tax rate’; |
| --- | --- |

—

in an own-initiative opinion issued in 2003
   (6) on Taxation in the European Union: common principles, convergence of tax laws and the possibility of qualified majority voting, the EESC called for three issues to be addressed, including the introduction of ‘a common company tax base ...’ and the use of ‘qualified majority voting to establish minimum levels for the corporate tax rate’;

| — | in 2004, the EESC delivered an exploratory opinion
   (7), drawn up at the request of the Commission, on the Ability of SMEs and social economy enterprises to adapt to changes imposed by economic growth in which it reiterated the need ‘to reduce world trade barriers for SMEs and SEEs, especially excessive administrative burdens and legal obstacles’; |
| --- | --- |

—

in 2004, the EESC delivered an exploratory opinion
   (7), drawn up at the request of the Commission, on the Ability of SMEs and social economy enterprises to adapt to changes imposed by economic growth in which it reiterated the need ‘to reduce world trade barriers for SMEs and SEEs, especially excessive administrative burdens and legal obstacles’;

| — | in 2004 the EESC issued an opinion
   (8) on the Communication from the Commission — An internal market without company tax obstacles — achievements, ongoing initiatives and remaining challenges in which it stressed:






  — | in point 3.2, the need to eliminate distortions in the internal market by ‘consolidating the arrangements for corporate tax (...) for SMEs do not have the resources to cope with 15 (soon to be 25) different rules’ ; |
| --- | --- | --- |

—

in 2004 the EESC issued an opinion
   (8) on the Communication from the Commission — An internal market without company tax obstacles — achievements, ongoing initiatives and remaining challenges in which it stressed:

—

in point 3.2, the need to eliminate distortions in the internal market by ‘consolidating the arrangements for corporate tax (...) for SMEs do not have the resources to cope with 15 (soon to be 25) different rules’ ;

| — | in point 3.3, the ‘merit in the possibility of 'Home State Taxation' (HST) for SMEs perhaps with a turnover ceiling’; |
| --- | --- |

—

in point 3.3, the ‘merit in the possibility of 'Home State Taxation' (HST) for SMEs perhaps with a turnover ceiling’;

| — | in point 3.3.1, that ‘the Commission pilot project on 'Home State Taxation provides a solution for cross-border activities of SMEs, making their fiscal administrative burden lighter. A test of an HST system could start on a bilateral basis and could eventually be widened to the whole of the EU following a positive evaluation’; |
| --- | --- |

—

in point 3.3.1, that ‘the Commission pilot project on 'Home State Taxation provides a solution for cross-border activities of SMEs, making their fiscal administrative burden lighter. A test of an HST system could start on a bilateral basis and could eventually be widened to the whole of the EU following a positive evaluation’;

| — | in point 3.4, that ‘A common European tax base is an important first step’; |
| --- | --- |

—

in point 3.4, that ‘A common European tax base is an important first step’;

| — | in point 3.7, that ‘The EESC is once again urging on Member States, the main influence, the need for an agreement which will allow and encourage SMEs especially to expand outside their home country and in the process create jobs, SMEs being the main creators of new jobs’. |
| --- | --- |

—

in point 3.7, that ‘The EESC is once again urging on Member States, the main influence, the need for an agreement which will allow and encourage SMEs especially to expand outside their home country and in the process create jobs, SMEs being the main creators of new jobs’.

| 2.3 | In citing extracts from eight of its opinions stretching back over five years, the EESC wishes to:






  — | highlight the importance of its contributions; |
| --- | --- | --- |

2.3

In citing extracts from eight of its opinions stretching back over five years, the EESC wishes to:

—

highlight the importance of its contributions;

| — | enumerate the appropriate measures to provide SMEs with the means to play an increased role in the EU internal market; |
| --- | --- |

—

enumerate the appropriate measures to provide SMEs with the means to play an increased role in the EU internal market;

| — | to underline that the Commission's persistent efforts in this field attest to its determination to find successful solutions. |
| --- | --- |

—

to underline that the Commission's persistent efforts in this field attest to its determination to find successful solutions.

| 2.4 | However, the EESC regrets that five years have elapsed without the emergence of effective arrangements for addressing these issues. In addition, it urges the Parliament and the Council to take a decision to finally remove the clearly identified obstacles. |
| --- | --- |

2.4

However, the EESC regrets that five years have elapsed without the emergence of effective arrangements for addressing these issues. In addition, it urges the Parliament and the Council to take a decision to finally remove the clearly identified obstacles.

3.   The Commission's proposals and the EESC's comments

| 3.1 | Whilst it feels that its previous opinions largely anticipate the Commission's proposals, the EESC would like to make some additional comments on a number of points. |
| --- | --- |

3.1

Whilst it feels that its previous opinions largely anticipate the Commission's proposals, the EESC would like to make some additional comments on a number of points.

| 3.2 | In its communication, the Commission states that the participation of SMEs in the internal market is considerably lower than that of larger companies, not least for tax reasons. It argues that action is needed to foster the cross-border expansion of SMEs and recommends a solution based on the ‘Home State Taxation’ approach. As regards company taxation, especially corporate tax, the Commission suggests that Member States and companies test the Home State Taxation concept by means of an experimental pilot scheme. |
| --- | --- |

3.2

In its communication, the Commission states that the participation of SMEs in the internal market is considerably lower than that of larger companies, not least for tax reasons. It argues that action is needed to foster the cross-border expansion of SMEs and recommends a solution based on the ‘Home State Taxation’ approach. As regards company taxation, especially corporate tax, the Commission suggests that Member States and companies test the Home State Taxation concept by means of an experimental pilot scheme.

| 3.3 | The EESC has already advocated and agreed in principle to such an initiative. However, it would point out that only a small number of SMEs plan to expand across borders; moreover, a pilot scheme of this kind could only take place with the participation of a limited number of companies who have a strategy, based on their geographical location or business purpose, aimed at establishing in another country. Looking beyond this shared position in principle, the EESC would like the Commission to provide more detail on the following:






  — | what is the approximate number of SMEs who are potentially interested in the implementation, in the near future, of the proposed scheme for the calculation of the corporate tax base; |
| --- | --- | --- |

3.3

The EESC has already advocated and agreed in principle to such an initiative. However, it would point out that only a small number of SMEs plan to expand across borders; moreover, a pilot scheme of this kind could only take place with the participation of a limited number of companies who have a strategy, based on their geographical location or business purpose, aimed at establishing in another country. Looking beyond this shared position in principle, the EESC would like the Commission to provide more detail on the following:

—

what is the approximate number of SMEs who are potentially interested in the implementation, in the near future, of the proposed scheme for the calculation of the corporate tax base;

| — | what is their economic ‘weight’ in the EU; |
| --- | --- |

—

what is their economic ‘weight’ in the EU;

| — | which economic sectors are most affected? |
| --- | --- |

—

which economic sectors are most affected?

| 3.3.1 | The aim of the initiative is to foster growth and employment by making it easier for SMEs to operate. In view of the limited budgetary resources available at EU level, the EESC feels that spreading resources too thinly should be avoided and that priority should be given to a limited number of measures to promote efficiency. Therefore available statistical data should be used to ascertain the effectiveness of the proposed measure and to compare its effectiveness with other, potentially more relevant measures. The EESC is surprised that, because of the lack of adequate information on this matter, the Commission is unable, in its impact study, to measure the costs associated with the implementation of the proposed measure. |
| --- | --- |

3.3.1

The aim of the initiative is to foster growth and employment by making it easier for SMEs to operate. In view of the limited budgetary resources available at EU level, the EESC feels that spreading resources too thinly should be avoided and that priority should be given to a limited number of measures to promote efficiency. Therefore available statistical data should be used to ascertain the effectiveness of the proposed measure and to compare its effectiveness with other, potentially more relevant measures. The EESC is surprised that, because of the lack of adequate information on this matter, the Commission is unable, in its impact study, to measure the costs associated with the implementation of the proposed measure.

| 3.4 | To back up its proposal, the Commission draws on the results of a survey of SMEs and business organisations it conducted in the 25 Member States in the second half of 2004. Only 194 questionnaires were returned to the Commission, and 168 of these were from German companies (see appended document). |
| --- | --- |

3.4

To back up its proposal, the Commission draws on the results of a survey of SMEs and business organisations it conducted in the 25 Member States in the second half of 2004. Only 194 questionnaires were returned to the Commission, and 168 of these were from German companies (see appended document).

| 3.4.1 | The EESC notes that the number of responses to the survey is not significant given the fact that there are several million SMEs in the EU, some two million of which are in the construction sector alone. Moreover, the Committee is surprised that no information is given on the contributions made by business organisations and the social partners. The EESC would ask the Commission to forward these contributions to it for information, provided they are not confidential. |
| --- | --- |

3.4.1

The EESC notes that the number of responses to the survey is not significant given the fact that there are several million SMEs in the EU, some two million of which are in the construction sector alone. Moreover, the Committee is surprised that no information is given on the contributions made by business organisations and the social partners. The EESC would ask the Commission to forward these contributions to it for information, provided they are not confidential.

| 3.4.2 | The EESC feels that, as the survey offers very little useful information, the Commission should not have drawn conclusions from it which could be inadequately founded. |
| --- | --- |

3.4.2

The EESC feels that, as the survey offers very little useful information, the Commission should not have drawn conclusions from it which could be inadequately founded.

| 3.5 | The EESC feels that the Commission should:






  — | try to find out the reasons for the lack of interest shown by companies in the survey; |
| --- | --- | --- |

3.5

The EESC feels that the Commission should:

—

try to find out the reasons for the lack of interest shown by companies in the survey;

| — | consider earmarking adequate funds for such surveys to be carried out by specialist organisations. Their task would be to establish beforehand whether the subject of the survey, its target and the content of the questionnaire itself are relevant. At the same time, direct contacts with SMEs that already have subsidiaries in other Member States would make it possible to better evaluate what kind of difficulties they encounter in reality; |
| --- | --- |

—

consider earmarking adequate funds for such surveys to be carried out by specialist organisations. Their task would be to establish beforehand whether the subject of the survey, its target and the content of the questionnaire itself are relevant. At the same time, direct contacts with SMEs that already have subsidiaries in other Member States would make it possible to better evaluate what kind of difficulties they encounter in reality;

| — | avoid distributing questionnaires solely via the Internet, as this method does not seem particularly well-suited to the needs of SMEs but is more suited to organisations which regularly visit the Commission's web site. |
| --- | --- |

—

avoid distributing questionnaires solely via the Internet, as this method does not seem particularly well-suited to the needs of SMEs but is more suited to organisations which regularly visit the Commission's web site.

| 3.5.1 | Moreover, could it perhaps be the case that some SME managers who have the firm intention of setting up business in other Member States do not consider the way they will be taxed to be one of their main concerns, but prefer instead to find locally-based sales teams, invest in marketing and eventually earn profits? |
| --- | --- |

3.5.1

Moreover, could it perhaps be the case that some SME managers who have the firm intention of setting up business in other Member States do not consider the way they will be taxed to be one of their main concerns, but prefer instead to find locally-based sales teams, invest in marketing and eventually earn profits?

| 3.5.2 | Maybe other SME managers take the view that when they are planning to set up in another Member State they are confronted with numerous administrative, legal, social, tax and other problems of such complexity that the way in which their subsidiary would be taxed is a marginal and premature concern to them, and they prefer instead to set up a joint venture with a local company (a positive step from the point of view of European cohesion). |
| --- | --- |

3.5.2

Maybe other SME managers take the view that when they are planning to set up in another Member State they are confronted with numerous administrative, legal, social, tax and other problems of such complexity that the way in which their subsidiary would be taxed is a marginal and premature concern to them, and they prefer instead to set up a joint venture with a local company (a positive step from the point of view of European cohesion).

| 3.6 | The scope and objectives set by the Commission for the proposed pilot scheme are as follows:






  — | the pilot scheme would be applied on a broad basis to all SMEs, including micro enterprises with less than 10 employees; |
| --- | --- | --- |

3.6

The scope and objectives set by the Commission for the proposed pilot scheme are as follows:

—

the pilot scheme would be applied on a broad basis to all SMEs, including micro enterprises with less than 10 employees;

| — | calculation of the taxable profits for the parent company together with all its qualifying subsidiaries and permanent establishments in other participating Member States according to the tax base rules of its home state; |
| --- | --- |

—

calculation of the taxable profits for the parent company together with all its qualifying subsidiaries and permanent establishments in other participating Member States according to the tax base rules of its home state;

| — | the tax base thus established would then be allocated to the Member States concerned in accordance with their respective share in the total payroll and/or turnover. Each Member State would subsequently apply its national tax rate; |
| --- | --- |

—

the tax base thus established would then be allocated to the Member States concerned in accordance with their respective share in the total payroll and/or turnover. Each Member State would subsequently apply its national tax rate;

| — | relief for cross-border losses. |
| --- | --- |

—

relief for cross-border losses.

Thus the costs for SMEs associated with the plethora of national corporate tax rules, which usually makes it necessary for SMEs to resort to expensive specialist services, would be reduced.

| 3.7 | The EESC notes that the proposed scope and objectives correspond to those envisaged earlier. It therefore reaffirms its endorsement of the scheme while at the same time recommending that, if the experiment proves successful, a European system be swiftly put in place for monitoring and, if necessary, controlling fiscal dumping so as to prevent companies, for example, from relocating the head office of their parent company in a Member State where the calculation of the company tax base would be more favourable to them. |
| --- | --- |

3.7

The EESC notes that the proposed scope and objectives correspond to those envisaged earlier. It therefore reaffirms its endorsement of the scheme while at the same time recommending that, if the experiment proves successful, a European system be swiftly put in place for monitoring and, if necessary, controlling fiscal dumping so as to prevent companies, for example, from relocating the head office of their parent company in a Member State where the calculation of the company tax base would be more favourable to them.

| 3.8 | The Commission asks Member States to negotiate and conclude bilateral agreements establishing the practical arrangements for implementing the pilot scheme, taking into account the Commission's general and non-binding guidelines. Support and assistance would be available from the Commission services in preparing and running the agreements. |
| --- | --- |

3.8

The Commission asks Member States to negotiate and conclude bilateral agreements establishing the practical arrangements for implementing the pilot scheme, taking into account the Commission's general and non-binding guidelines. Support and assistance would be available from the Commission services in preparing and running the agreements.

| 3.9 | The EESC understands that there are limits to action and involvement by the Commission and welcomes the fact that the Commission's role is confined to one of making suggestions and providing encouragement. This will enable interested SMEs to conduct pilots on an experimental basis as part of the bilateral agreements concluded between some EU Member States. On the basis of the results of the experimental pilots, the Commission will, in due course, propose the prolongation of the most successful pilots. |
| --- | --- |

3.9

The EESC understands that there are limits to action and involvement by the Commission and welcomes the fact that the Commission's role is confined to one of making suggestions and providing encouragement. This will enable interested SMEs to conduct pilots on an experimental basis as part of the bilateral agreements concluded between some EU Member States. On the basis of the results of the experimental pilots, the Commission will, in due course, propose the prolongation of the most successful pilots.

| 3.10 | The EESC agrees with the Commission that the vast array of national rules is a major obstacle for SMEs. As the bilateral agreements concluded between 25 Member States would, in theory, all differ from each other, this will make it necessary for SMEs to restrict themselves to a limited number of such agreements. The diversity of the agreements would not therefore bring SMEs the hoped for simplification. |
| --- | --- |

3.10

The EESC agrees with the Commission that the vast array of national rules is a major obstacle for SMEs. As the bilateral agreements concluded between 25 Member States would, in theory, all differ from each other, this will make it necessary for SMEs to restrict themselves to a limited number of such agreements. The diversity of the agreements would not therefore bring SMEs the hoped for simplification.

| 3.11 | Moreover, the EESC is concerned about the practical consequences of the Commission's stated desire not to lay down more detailed provisions for the proposed pilot experiment. How will it be possible to harmonise tax rules (which is desirable in the long term) after the implementation of numerous bilateral agreements, if agreement has not first been reached on certain basic convergence criteria? |
| --- | --- |

3.11

Moreover, the EESC is concerned about the practical consequences of the Commission's stated desire not to lay down more detailed provisions for the proposed pilot experiment. How will it be possible to harmonise tax rules (which is desirable in the long term) after the implementation of numerous bilateral agreements, if agreement has not first been reached on certain basic convergence criteria?

| 3.12 | Finally, the EESC notes that no detailed research has been undertaken to determine whether schemes already exist in the Europe between states or regions, such as Switzerland, Lichtenstein or the Vatican, or with principalities such as Monaco, San Marino, Andorra, etc., to eliminate or reduce the impact on companies (especially SMEs) of the plethora of national, regional and local tax rules. |
| --- | --- |

3.12

Finally, the EESC notes that no detailed research has been undertaken to determine whether schemes already exist in the Europe between states or regions, such as Switzerland, Lichtenstein or the Vatican, or with principalities such as Monaco, San Marino, Andorra, etc., to eliminate or reduce the impact on companies (especially SMEs) of the plethora of national, regional and local tax rules.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  OJ C 204 of 18.7.2000, p. 57.

1

(2)  OJ C 48/73 of 21.2.2002, p. 73.

2

(3)  OJ C 125 of 27.5.2002, p. 100.

3

(4)  OJ C 241 of 7.10.2002, p.75.

4

(5)  OJ C 32 of 5.2.2004, p. 118.

5

(6)  OJ C 80 of 30.3.2004, p. 139.

6

(7)  OJ C 120 of 20.5.2005, p. 10.

7

(8)  OJ C 117 of 30.4.2004, p. 38.

8

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/61 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/61

---

Opinion of the European Economic and Social Committee on the Amended Proposal for a Council Regulation establishing a Cohesion Fund (Codified version)

(COM(2006) 5 final — 2003/0129 (AVC))

(2006/C 195/15)

On 28 February 2006 the Council of the European Union decided to consult the European Economic and Social Committee, under Article 262 of the Treaty establishing the European Community, on the abovementioned proposal.

The Section for Economic and Monetary Union and Economic and Social Cohesion, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 28 April 2006. The rapporteur was Mr Grasso.

At its 427th plenary session, held on 17-18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 146 votes to one with two abstentions.

| 1. | The European Economic and Social Committee supports the Commission's initiative to undertake the codification of Council Regulation (EC) No 1164/94 establishing the Cohesion Fund. |
| --- | --- |

1.

The European Economic and Social Committee supports the Commission's initiative to undertake the codification of Council Regulation (EC) No 1164/94 establishing the Cohesion Fund.

| 2. | The EESC confirms its opinion, previously expressed on several occasions, that the codification of EU rules helps to bring the European public closer to the EU's instruments. This is all the more important in the case of cohesion policy, which is central to the process of European integration. |
| --- | --- |

2.

The EESC confirms its opinion, previously expressed on several occasions, that the codification of EU rules helps to bring the European public closer to the EU's instruments. This is all the more important in the case of cohesion policy, which is central to the process of European integration.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/62 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/62

---

Opinion of the European Economic and Social Committee on External action of the Union: the role of organised civil society

(2006/C 195/16)

On 28 January 2004 the European Economic and Social Committee decided, under Rule 29(2) of its Rules of Procedure, to draw up an opinion on External action of the Union: the role of organised civil society.

The Section for External Relations, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 4 May 2006. The rapporteur was Mr Koryfidis.

At its 427th plenary session, held on 17 and 18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 140 votes to 3 with 9 abstentions.

| 1. | This opinion is drawn up on the basis of a questionnaire and a study. These are the result of lengthy theoretical analysis and practical investigation, as well as of the experience acquired by the EESC in the relations it has established with the consultative bodies and other organisations of civil society in the candidate countries and non-member countries. The whole project, which has taken a number of years, has convinced the EESC that it must initiate a new stage in which its commitments and the relations they involve will be more organised and regular and will have better prospects. |
| --- | --- |

1.

This opinion is drawn up on the basis of a questionnaire and a study. These are the result of lengthy theoretical analysis and practical investigation, as well as of the experience acquired by the EESC in the relations it has established with the consultative bodies and other organisations of civil society in the candidate countries and non-member countries. The whole project, which has taken a number of years, has convinced the EESC that it must initiate a new stage in which its commitments and the relations they involve will be more organised and regular and will have better prospects.

| 2. | The EESC takes the view that the globalisation of the economy and developments in science and technology — especially information technology — create a strong force that can be controlled only by shifting the epicentre of formation and development of contemporary international relations. The basic expression of this shift should be the structural integration of relations between societies into traditional relations between states. |
| --- | --- |

2.

The EESC takes the view that the globalisation of the economy and developments in science and technology — especially information technology — create a strong force that can be controlled only by shifting the epicentre of formation and development of contemporary international relations. The basic expression of this shift should be the structural integration of relations between societies into traditional relations between states.

| 3. | It follows that the Union as a system of governance and as a unified whole should recognise the new reality as soon as possible. This recognition implies that it should also plan and develop policies for external action, with the active participation and contribution of organised civil society in implementing them. |
| --- | --- |

3.

It follows that the Union as a system of governance and as a unified whole should recognise the new reality as soon as possible. This recognition implies that it should also plan and develop policies for external action, with the active participation and contribution of organised civil society in implementing them.

| 4. | These policies should be preventive where possible, and at all events integrated. The European democratic system, the European economic and social acquis, the strategic aims of the Union and reliable knowledge are the basis for framing and developing these policies within and outside its frontiers. |
| --- | --- |

4.

These policies should be preventive where possible, and at all events integrated. The European democratic system, the European economic and social acquis, the strategic aims of the Union and reliable knowledge are the basis for framing and developing these policies within and outside its frontiers.

| 5. | This situation will call for a new internal organisational balance and a more creative balance between competition and cooperation, especially in sectors and activities directed outside the frontiers of the Union. |
| --- | --- |

5.

This situation will call for a new internal organisational balance and a more creative balance between competition and cooperation, especially in sectors and activities directed outside the frontiers of the Union.

| 6. | How European civil society organisations themselves should become aware of their new role is a complex problem. It calls for the promotion of modern methods of acquiring familiarity with learning and knowledge. |
| --- | --- |

6.

How European civil society organisations themselves should become aware of their new role is a complex problem. It calls for the promotion of modern methods of acquiring familiarity with learning and knowledge.

| 7. | To create this familiarity, but also more generally to enable European citizens to cope with a society and an economy based on knowledge, a new approach to lifelong learning programmes is needed. In practice this means inclusion in the existing lifelong learning programmes of knowledge related to globalisation and to the external action of the Union. |
| --- | --- |

7.

To create this familiarity, but also more generally to enable European citizens to cope with a society and an economy based on knowledge, a new approach to lifelong learning programmes is needed. In practice this means inclusion in the existing lifelong learning programmes of knowledge related to globalisation and to the external action of the Union.

| 8. | The EESC as the mouthpiece of organised civil society at the European level is entrusted with a triple role:






  — | that of organised civil society's voice on matters of external action vis-à-vis the Union's political bodies, based on its democratic acquis and a process of reconciliation of different interests; |
| --- | --- | --- |

8.

The EESC as the mouthpiece of organised civil society at the European level is entrusted with a triple role:

—

that of organised civil society's voice on matters of external action vis-à-vis the Union's political bodies, based on its democratic acquis and a process of reconciliation of different interests;

| — | that of active participation in the planning and development of the Union's policies involving external action; |
| --- | --- |

—

that of active participation in the planning and development of the Union's policies involving external action;

| — | that of monitoring the external policies implemented by the EU and their economic and social effects. |
| --- | --- |

—

that of monitoring the external policies implemented by the EU and their economic and social effects.

| 9. | The EESC's role covers a wide range of issues and activities, because all the problems arising from the new global environment are relevant to one or other of its aspects (i.e. the economic, social, environmental or cultural dimension). |
| --- | --- |

9.

The EESC's role covers a wide range of issues and activities, because all the problems arising from the new global environment are relevant to one or other of its aspects (i.e. the economic, social, environmental or cultural dimension).

| 10. | In this context the most substantial contribution of the EESC to the framing and development of policies relating to the external action of the Union is its capacity to produce a creative balance whenever it takes a position on an issue. The balance is achieved by integrating the various interests expressed by its members, in the context of a process and an approach covering the four dimensions mentioned above. |
| --- | --- |

10.

In this context the most substantial contribution of the EESC to the framing and development of policies relating to the external action of the Union is its capacity to produce a creative balance whenever it takes a position on an issue. The balance is achieved by integrating the various interests expressed by its members, in the context of a process and an approach covering the four dimensions mentioned above.

| 11. | It should be pointed out that the EESC already has considerable experience in matters relating to the Union's external action. On the other hand, there is a deficit as regards making good use of this experience through broader Community mechanisms and approaches. The Community institutions, in particular, have not managed to use to the full this experience and the conclusions provided to them through opinions, information reports and suggestions. |
| --- | --- |

11.

It should be pointed out that the EESC already has considerable experience in matters relating to the Union's external action. On the other hand, there is a deficit as regards making good use of this experience through broader Community mechanisms and approaches. The Community institutions, in particular, have not managed to use to the full this experience and the conclusions provided to them through opinions, information reports and suggestions.

| 12. | The EESC takes the view that better ways should be found to make a link between this experience and the Union's central political structures. One possible way would be the signing of protocols on increased cooperation such as the protocol agreed between the European Commission and the EESC. An even better way would be collaboration by all the Union's political bodies and the EESC on the development of relevant integrated, and preferably preventive, policies. |
| --- | --- |

12.

The EESC takes the view that better ways should be found to make a link between this experience and the Union's central political structures. One possible way would be the signing of protocols on increased cooperation such as the protocol agreed between the European Commission and the EESC. An even better way would be collaboration by all the Union's political bodies and the EESC on the development of relevant integrated, and preferably preventive, policies.

| 13. | At all events the EESC perceives and points out a need to strengthen its role and the role of organised civil society more generally in the processes of globalisation. The broad reason for this is the need to promote the wider goals of the Union in the world of the 21st century. A specific reason for it — particularly in the case of the EESC — has to do with how these goals can be promoted. In other words it relates to the EESC's still evolving new mode of operation in terms of the knowledge-based society, together with a unique characteristic: the capacity it has to intervene credibly, outside the Union, at the civil society level, using an approach which could be described as ‘soft diplomacy’. |
| --- | --- |

13.

At all events the EESC perceives and points out a need to strengthen its role and the role of organised civil society more generally in the processes of globalisation. The broad reason for this is the need to promote the wider goals of the Union in the world of the 21st century. A specific reason for it — particularly in the case of the EESC — has to do with how these goals can be promoted. In other words it relates to the EESC's still evolving new mode of operation in terms of the knowledge-based society, together with a unique characteristic: the capacity it has to intervene credibly, outside the Union, at the civil society level, using an approach which could be described as ‘soft diplomacy’.

| 14. | The EESC seeks acknowledgment of and support for that unique capacity. It seeks recognition as a global partner — as the institutional representative of European organised civil society — particularly in international organisations such as the Economic and Social Council of the UN. It also calls for promotion of its position and role in treaties signed with third countries and of its policies designed to support civil society in those countries. |
| --- | --- |

14.

The EESC seeks acknowledgment of and support for that unique capacity. It seeks recognition as a global partner — as the institutional representative of European organised civil society — particularly in international organisations such as the Economic and Social Council of the UN. It also calls for promotion of its position and role in treaties signed with third countries and of its policies designed to support civil society in those countries.

| 15. | In carrying out the task referred to above, the EESC seeks support for the development of its main policy choices in the medium term. These include:






  — | creating a modern integrated system of proactive communication, exchange of information and networking with its partners throughout Europe and the world, as well as with the other bodies of the Union; |
| --- | --- | --- |

15.

In carrying out the task referred to above, the EESC seeks support for the development of its main policy choices in the medium term. These include:

—

creating a modern integrated system of proactive communication, exchange of information and networking with its partners throughout Europe and the world, as well as with the other bodies of the Union;

| — | stepping up its visibility and cooperation with intergovernmental and other relevant international organisations, particularly as regards relations with organised civil society; |
| --- | --- |

—

stepping up its visibility and cooperation with intergovernmental and other relevant international organisations, particularly as regards relations with organised civil society;

| — | creating an ‘electronic knowledge bank’ on the activity of bodies and structures that perform a consultative function throughout the world and of networks of civil society organisations, and making full use of it as a tool for communication, rapprochement, comprehension and interpretation of how civil society operates, and as a tool for promotion of the Union's values and strategic aims throughout the world; |
| --- | --- |

—

creating an ‘electronic knowledge bank’ on the activity of bodies and structures that perform a consultative function throughout the world and of networks of civil society organisations, and making full use of it as a tool for communication, rapprochement, comprehension and interpretation of how civil society operates, and as a tool for promotion of the Union's values and strategic aims throughout the world;

| — | a report, to be drawn up every two years, on developments in the activity of bodies and structures with a consultative function in the world and the influence on them of the Union's external action. |
| --- | --- |

—

a report, to be drawn up every two years, on developments in the activity of bodies and structures with a consultative function in the world and the influence on them of the Union's external action.

| 16. | In the context of the above observations and proposals the EESC calls upon the Union's political bodies to adopt and promote a method of continuing interinstitutional dialogue for the purpose of:






  — | acquiring reliable collective knowledge about the Union's external action; |
| --- | --- | --- |

16.

In the context of the above observations and proposals the EESC calls upon the Union's political bodies to adopt and promote a method of continuing interinstitutional dialogue for the purpose of:

—

acquiring reliable collective knowledge about the Union's external action;

| — | achieving a consensus on the what, the why and the how of the activities to be developed. |
| --- | --- |

—

achieving a consensus on the what, the why and the how of the activities to be developed.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/64 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/64

---

Opinion of the European Economic and Social Committee on the Contribution to the European Council of 15-16 June 2006 — Period of reflection

(2006/C 195/17)

On 15 February 2006, the Economic and Social Committee, acting under Rule 29(2) of its Rules of Procedure, decided to draw up the following opinion: Contribution to the European Council of 15-16 June 2006– Period of reflection

and, acting under Rule 20 of the Rules of Procedure, appointed Mr Malosse as rapporteur general.

At its 427th plenary session, held on 17-18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 133 votes to one with eight abstentions.

| 1. | First of all, the EESC welcomes the Council Presidency's intention not to restrict itself to a review of the initiatives taken during the period of reflection, but also to agree the next steps of the process. |
| --- | --- |

1.

First of all, the EESC welcomes the Council Presidency's intention not to restrict itself to a review of the initiatives taken during the period of reflection, but also to agree the next steps of the process.

| 2. | The EESC restates the position expressed on this matter in its opinions of 24 September 2003 (1) and 28 October 2004 (2), which was that the constitutional treaty was a key instrument to enable the Union to address the challenges it faces. In particular, it reiterates the importance of the inclusion of the Charter of Fundamental Rights, which ensures that the Union's policies are based on citizens' rights, and of the provisions on the Union's institutions and governance that give it greater visibility and efficiency. |
| --- | --- |

2.

The EESC restates the position expressed on this matter in its opinions of 24 September 2003 (1) and 28 October 2004 (2), which was that the constitutional treaty was a key instrument to enable the Union to address the challenges it faces. In particular, it reiterates the importance of the inclusion of the Charter of Fundamental Rights, which ensures that the Union's policies are based on citizens' rights, and of the provisions on the Union's institutions and governance that give it greater visibility and efficiency.

| 3. | Having regard also to the European Parliament resolution of 19 January 2006 on The period of reflection (the structure, subject and context for an assessment of the debate on the European Union). |
| --- | --- |

3.

Having regard also to the European Parliament resolution of 19 January 2006 on The period of reflection (the structure, subject and context for an assessment of the debate on the European Union).

| 4. | The EESC takes the view that:






  — | the absence of a clear vision and of a consensus on the aims and purposes of European integration have fuelled doubts, despite the successes and achievements of 50 years of European integration; |
| --- | --- | --- |

4.

The EESC takes the view that:

—

the absence of a clear vision and of a consensus on the aims and purposes of European integration have fuelled doubts, despite the successes and achievements of 50 years of European integration;

| — | public scepticism relates more to the EU's functioning and current policies than to the Constitutional Treaty itself, whose innovative nature has not been adequately explained to the public; |
| --- | --- |

—

public scepticism relates more to the EU's functioning and current policies than to the Constitutional Treaty itself, whose innovative nature has not been adequately explained to the public;

| — | the current institutional system, set up by the Nice Treaty, will not enable the European Union to progress on the path of integration. The current treaties do not fulfil the requirements of modern European governance and, in particular, give much too small a role to civil society organisations in Community policy and decision-making at all levels. |
| --- | --- |

—

the current institutional system, set up by the Nice Treaty, will not enable the European Union to progress on the path of integration. The current treaties do not fulfil the requirements of modern European governance and, in particular, give much too small a role to civil society organisations in Community policy and decision-making at all levels.

| — | it is up to the European Commission and the European Council, within their respective responsibilities, to make appropriate proposals to lay the foundations for a forward-looking vision of the future of Europe for its citizens, and to flesh out the Union's policies so that they meet the expectations of the peoples of Europe. In this context, the EESC welcomes the fact that the inter-institutional agreement between the European Parliament, the Council and the Commission reached on 4 April 2006 commits to an increase in the 2007-2013 financial perspective above that initially agreed by the European Council. However, it notes that this increase is limited, and therefore deeply regrets that this financial perspective does not make it possible to release budgetary resources that are equal to Europe's stated ambitions. On this matter, it refers to the opinion it issued on the subject on 15 September 2004 (3); |
| --- | --- |

—

it is up to the European Commission and the European Council, within their respective responsibilities, to make appropriate proposals to lay the foundations for a forward-looking vision of the future of Europe for its citizens, and to flesh out the Union's policies so that they meet the expectations of the peoples of Europe. In this context, the EESC welcomes the fact that the inter-institutional agreement between the European Parliament, the Council and the Commission reached on 4 April 2006 commits to an increase in the 2007-2013 financial perspective above that initially agreed by the European Council. However, it notes that this increase is limited, and therefore deeply regrets that this financial perspective does not make it possible to release budgetary resources that are equal to Europe's stated ambitions. On this matter, it refers to the opinion it issued on the subject on 15 September 2004 (3);

| — | for a communication strategy on Europe to be successful, it is important first to:






  — | set out a clear vision of the future of Europe; |
| --- | --- | --- |

—

for a communication strategy on Europe to be successful, it is important first to:

—

set out a clear vision of the future of Europe;

| — | formulate and implement policies that give real added value to the public; |
| --- | --- |

—

formulate and implement policies that give real added value to the public;

| — | raise the profile of European integration and its aims, and make them easier to understand; |
| --- | --- |

—

raise the profile of European integration and its aims, and make them easier to understand;

| — | make the workings of the Union more democratic, in particular ensuring greater involvement of citizens and a more structured dialogue with organised civil society. |
| --- | --- |

—

make the workings of the Union more democratic, in particular ensuring greater involvement of citizens and a more structured dialogue with organised civil society.

| 5. | The EESC issues the following recommendations to the European Council of 15 and 16 June 2006: |
| --- | --- |

5.

The EESC issues the following recommendations to the European Council of 15 and 16 June 2006:

5.1   Responsibilities

| 5.1.1 | The responsibility for finding a rapid way out of the identity crisis the European Union is currently experiencing is largely in the hands of the Member States, and thus of the European Council. The June 2006 summit must therefore put out a clear message on the future of Europe and open up avenues that will provide a way out of the current political impasse. With this in mind, the EESC believes that the solution aimed at resolving the crisis must maintain the advances and balance achieved by the constitutional treaty, and take into consideration the fact that the treaty has so far been ratified by 15 Member States. |
| --- | --- |

5.1.1

The responsibility for finding a rapid way out of the identity crisis the European Union is currently experiencing is largely in the hands of the Member States, and thus of the European Council. The June 2006 summit must therefore put out a clear message on the future of Europe and open up avenues that will provide a way out of the current political impasse. With this in mind, the EESC believes that the solution aimed at resolving the crisis must maintain the advances and balance achieved by the constitutional treaty, and take into consideration the fact that the treaty has so far been ratified by 15 Member States.

| 5.1.2 | Under Article IV-443 (4) of the Constitutional Treaty, the two setbacks in the ratification process, the reasons for which clearly must be acknowledged, do not necessarily mean that the text has to be abandoned. |
| --- | --- |

5.1.2

Under Article IV-443 (4) of the Constitutional Treaty, the two setbacks in the ratification process, the reasons for which clearly must be acknowledged, do not necessarily mean that the text has to be abandoned.

5.2   Better governance

| 5.2.1 | The European institutions, Commission, European Parliament and Council, should press ahead with the most innovative aspects of the constitutional treaty in the area of governance. The EESC thus advocates expanding and strengthening, without delay, the process for consulting civil society organisations before any significant legislative initiative. It also asks the Commission to look into the conditions for implementing the right of citizens' initiative. |
| --- | --- |

5.2.1

The European institutions, Commission, European Parliament and Council, should press ahead with the most innovative aspects of the constitutional treaty in the area of governance. The EESC thus advocates expanding and strengthening, without delay, the process for consulting civil society organisations before any significant legislative initiative. It also asks the Commission to look into the conditions for implementing the right of citizens' initiative.

| 5.2.2 | In this context, the institutions should make better use of the EESC's ability to help flesh out the EU's policy by means of exploratory opinions and information reports, and through impact analyses. |
| --- | --- |

5.2.2

In this context, the institutions should make better use of the EESC's ability to help flesh out the EU's policy by means of exploratory opinions and information reports, and through impact analyses.

| 5.2.3 | Similarly, and in cooperation inter alia with the national Economic and Social Councils and similar institutions, the Committee will continue its initiatives aimed at making a decisive contribution to the promotion and greater structuring of dialogue and discussion between the EU institutions and organised civil society. |
| --- | --- |

5.2.3

Similarly, and in cooperation inter alia with the national Economic and Social Councils and similar institutions, the Committee will continue its initiatives aimed at making a decisive contribution to the promotion and greater structuring of dialogue and discussion between the EU institutions and organised civil society.

| 5.2.4 | It would also be worthwhile to develop the principle of functional subsidiarity by assigning more and more responsibilities ‘on behalf of the EU’ to local and regional authorities and to civil society organisations, so as to speed up the process of citizens taking ownership of Europe. Subsidiarity monitoring should also be extended, not only to local and regional authorities, but also to civil society organisations. |
| --- | --- |

5.2.4

It would also be worthwhile to develop the principle of functional subsidiarity by assigning more and more responsibilities ‘on behalf of the EU’ to local and regional authorities and to civil society organisations, so as to speed up the process of citizens taking ownership of Europe. Subsidiarity monitoring should also be extended, not only to local and regional authorities, but also to civil society organisations.

5.3   Fleshing out Community policies and European citizenship

| 5.3.1 | It is up to the institutions of the Union to flesh out European policies so as to demonstrate their effectiveness and their positive impact on the daily life of citizens: employment, mobility, environment, social progress, youth policy, entrepreneurial spirit, combating discrimination and exclusion, etc. They should also carry on implementing the major European projects that enable people to identify with the Union (trans-European networks, space policy, etc.) and launch new ones such as European voluntary service and the European system of major risk prevention and management. |
| --- | --- |

5.3.1

It is up to the institutions of the Union to flesh out European policies so as to demonstrate their effectiveness and their positive impact on the daily life of citizens: employment, mobility, environment, social progress, youth policy, entrepreneurial spirit, combating discrimination and exclusion, etc. They should also carry on implementing the major European projects that enable people to identify with the Union (trans-European networks, space policy, etc.) and launch new ones such as European voluntary service and the European system of major risk prevention and management.

| 5.3.2 | It is up to the European Commission, in accordance with the role and powers vested in it by the treaties, to draw up and propose real common policies in areas where the added value of the European dimension no longer needs to be demonstrated (in particular energy, the environment and research). With this in mind, the most pragmatic solutions should be chosen, whether these be, for example and depending on the policy area, EU/Member State co-financing or greater cooperation. |
| --- | --- |

5.3.2

It is up to the European Commission, in accordance with the role and powers vested in it by the treaties, to draw up and propose real common policies in areas where the added value of the European dimension no longer needs to be demonstrated (in particular energy, the environment and research). With this in mind, the most pragmatic solutions should be chosen, whether these be, for example and depending on the policy area, EU/Member State co-financing or greater cooperation.

| 5.3.3 | As regards foreign policy, and in accordance with the commitment entered into at the European Council meeting in Vienna in 1998, the cohesion and solidarity of the EU must also be significantly boosted so as to replace the wide range of initiatives and positions that cast doubt upon the real willingness of Member States to play the EU card. A consistent and convincing presentation of legitimate EU interests around the world would also help to significantly strengthen the EU's credibility among the European public and to raise its profile. |
| --- | --- |

5.3.3

As regards foreign policy, and in accordance with the commitment entered into at the European Council meeting in Vienna in 1998, the cohesion and solidarity of the EU must also be significantly boosted so as to replace the wide range of initiatives and positions that cast doubt upon the real willingness of Member States to play the EU card. A consistent and convincing presentation of legitimate EU interests around the world would also help to significantly strengthen the EU's credibility among the European public and to raise its profile.

| 5.3.4 | By imbuing the EU's policies with substantive content, the Commission and the Council will give credibility to the revised Lisbon strategy and will pave the way for a post-2010 European project that is in line with public expectations, as long as it is backed up by resources that are really equal to the stated ambitions. It is the prospect of a comprehensive project for society, which is currently missing, that will help the public better to understand the constitutional treaty. |
| --- | --- |

5.3.4

By imbuing the EU's policies with substantive content, the Commission and the Council will give credibility to the revised Lisbon strategy and will pave the way for a post-2010 European project that is in line with public expectations, as long as it is backed up by resources that are really equal to the stated ambitions. It is the prospect of a comprehensive project for society, which is currently missing, that will help the public better to understand the constitutional treaty.

5.4   Make full use of the existing treaties

| 5.4.1 | With immediate effect, and without waiting for a new treaty, the Commission and the Council should fully implement certain provisions of the Treaty of Nice such as those that allow for qualified majority voting in certain areas of social policy and justice and home affairs. |
| --- | --- |

5.4.1

With immediate effect, and without waiting for a new treaty, the Commission and the Council should fully implement certain provisions of the Treaty of Nice such as those that allow for qualified majority voting in certain areas of social policy and justice and home affairs.

| 5.4.2 | In addition, the EESC recommends that the Commission and the Member States take new initiatives in the area of economic governance of the Union so as to strengthen the process of coordinating the Member States' economic and finance policies with a view to boosting investment aimed at achieving the goals set out by the Lisbon strategy. With this in mind, it would be helpful to strengthen the remit of the Eurogroup immediately. |
| --- | --- |

5.4.2

In addition, the EESC recommends that the Commission and the Member States take new initiatives in the area of economic governance of the Union so as to strengthen the process of coordinating the Member States' economic and finance policies with a view to boosting investment aimed at achieving the goals set out by the Lisbon strategy. With this in mind, it would be helpful to strengthen the remit of the Eurogroup immediately.

| 5.4.3 | Furthermore, it is up to the Council to take immediate action to address the delays, shortcomings and indeed gaps that remain in a number of areas such as the establishment of European statutes for associations, mutual societies and small businesses and the Community patent. It must also act quickly to remove the remaining obstacles to the free movement of people, services and goods. These delays and gaps have damaged the credibility of the EU institutions and have provided fertile ground for the expression of national self-interest and a resurgence of competition between Member States. |
| --- | --- |

5.4.3

Furthermore, it is up to the Council to take immediate action to address the delays, shortcomings and indeed gaps that remain in a number of areas such as the establishment of European statutes for associations, mutual societies and small businesses and the Community patent. It must also act quickly to remove the remaining obstacles to the free movement of people, services and goods. These delays and gaps have damaged the credibility of the EU institutions and have provided fertile ground for the expression of national self-interest and a resurgence of competition between Member States.

| 5.4.4 | When a draft EU legislative act put forward by the European Commission, in its capacity as the institution with the right of initiative and guardian of the general interest, is not adopted, the Council must explain to the general public, and even justify, its decision to block the legislation. |
| --- | --- |

5.4.4

When a draft EU legislative act put forward by the European Commission, in its capacity as the institution with the right of initiative and guardian of the general interest, is not adopted, the Council must explain to the general public, and even justify, its decision to block the legislation.

5.5   Credible and consistent information

| 5.5.1 | The EESC calls on the Member States to develop targeted and permanent information campaigns on the achievements of European integration and its added value, and to put in place European civic education from primary school level upwards. If this information is to be credible and not written off as propaganda, it must involve networks of civil society organisations with the aim of having a substantive policy debate. The European Commission also has a fundamental role to play in ensuring the consistency of communication activities across Europe. In this context, the Commission should be more involved in defending the EU's policies and mechanisms and not settle for a neutral stance. |
| --- | --- |

5.5.1

The EESC calls on the Member States to develop targeted and permanent information campaigns on the achievements of European integration and its added value, and to put in place European civic education from primary school level upwards. If this information is to be credible and not written off as propaganda, it must involve networks of civil society organisations with the aim of having a substantive policy debate. The European Commission also has a fundamental role to play in ensuring the consistency of communication activities across Europe. In this context, the Commission should be more involved in defending the EU's policies and mechanisms and not settle for a neutral stance.

6.   Promoting the creation of a new pact between Europe and its citizens

| 6.1 | By signing and ratifying the European treaties, all the Member States have voluntarily committed themselves to a process of integration rooted in an ever closer union between the peoples of Europe. |
| --- | --- |

6.1

By signing and ratifying the European treaties, all the Member States have voluntarily committed themselves to a process of integration rooted in an ever closer union between the peoples of Europe.

| 6.2 | The reflection period must not only make it possible to find a way out of the current institutional impasse, but it must also, and above all, be used as an opportunity to promote the emergence of a new consensus on the aims of integration and on a realistic but ambitious political project allowing citizens to dream of a Europe that would truly bring them not only peace, but also prosperity and democracy. Renewing the credibility of the European project and the legitimacy of the integration process are prerequisites for overcoming the identity crisis that is currently spreading across Europe. |
| --- | --- |

6.2

The reflection period must not only make it possible to find a way out of the current institutional impasse, but it must also, and above all, be used as an opportunity to promote the emergence of a new consensus on the aims of integration and on a realistic but ambitious political project allowing citizens to dream of a Europe that would truly bring them not only peace, but also prosperity and democracy. Renewing the credibility of the European project and the legitimacy of the integration process are prerequisites for overcoming the identity crisis that is currently spreading across Europe.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  Opinion for the Intergovernmental Conference 2003 (OJ C 101, 14.1.2004).

1

(2)  Opinion on the Treaty establishing a Constitution for Europe (OJ C 120, 20.5.2005).

2

(3)  Opinion on the Communication from the Commission Building our common future: Policy challenges and budgetary means of the enlarged Union 2007-2013 (COM(2004) 101 final) (OJ C 74, 23.3.2005).

3

Building our common future: Policy challenges and budgetary means of the enlarged Union 2007-2013

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/66 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/66

---

Opinion of the European Economic and Social Committee on the Proposal for a Council Decision on guidelines for the employment policies of the Member States

(COM(2006) 32 final — 2006/0010 (CNS))

(2006/C 195/18)

On 10 February 2006 the Council decided to consult the European Economic and Social Committee, under Article 262 of the Treaty establishing the European Community, on the abovementioned proposal.

The Section for Employment, Social Affairs and Citizenship, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 3 May 2006. The rapporteur was Mr Greif.

At its 427th plenary session, held on 17-18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 91 votes in favour with one abstention.

1.   The Commission's proposal for a decision

| 1.1 | At the beginning of 2006, the Commission sent the Council a proposal for a decision on guidelines for the employment policies of the Member States for 2006.
  The proposal suggests keeping the 2005-2008 guidelines adopted in 2005 unchanged and recommending that the Member States continue to pursue their labour market and employment policies in accordance with the priorities set out in those guidelines. |
| --- | --- |

1.1

At the beginning of 2006, the Commission sent the Council a proposal for a decision on guidelines for the employment policies of the Member States for 2006.

The proposal suggests keeping the 2005-2008 guidelines adopted in 2005 unchanged and recommending that the Member States continue to pursue their labour market and employment policies in accordance with the priorities set out in those guidelines.

| 1.2 | In proposing this decision, the Commission is following the new cycle of governance resulting from the reform of the Lisbon strategy, under which the Employment Guidelines, which are adopted together with the Broad Economic Policy Guidelines in an integrated package, should, in essence, be fully reviewed only every three years. |
| --- | --- |

1.2

In proposing this decision, the Commission is following the new cycle of governance resulting from the reform of the Lisbon strategy, under which the Employment Guidelines, which are adopted together with the Broad Economic Policy Guidelines in an integrated package, should, in essence, be fully reviewed only every three years.

| 1.3 | This also means, therefore, that, for 2006, Member States in Council did not take the option of making any necessary adjustments in intermediate years.
  This Commission decision was preceded by an evaluation of the Member States' national reform programmes submitted in autumn 2005 in its annual progress report and in the joint employment report. |
| --- | --- |

1.3

This also means, therefore, that, for 2006, Member States in Council did not take the option of making any necessary adjustments in intermediate years.

This Commission decision was preceded by an evaluation of the Member States' national reform programmes submitted in autumn 2005 in its annual progress report and in the joint employment report.

2.   The Committee's observations

| 2.1 | The EESC, in its opinion on the adoption of the guidelines for 2005-2008 (1), welcomed this new integrated approach and the multiannual cycle, but pointed out, inter alia:






  — | that in some areas, there are inconsistencies between the Broad Economic Policy Guidelines and the Employment Guidelines; |
| --- | --- | --- |

2.1

The EESC, in its opinion on the adoption of the guidelines for 2005-2008 (1), welcomed this new integrated approach and the multiannual cycle, but pointed out, inter alia:

—

that in some areas, there are inconsistencies between the Broad Economic Policy Guidelines and the Employment Guidelines;

| — | that success depends above all on the Member States taking their responsibilities seriously and actually putting the agreed priorities into practice at national level; |
| --- | --- |

—

that success depends above all on the Member States taking their responsibilities seriously and actually putting the agreed priorities into practice at national level;

| — | that parliaments, social partners and civil society must be genuinely involved in all stages of employment policy coordination. |
| --- | --- |

—

that parliaments, social partners and civil society must be genuinely involved in all stages of employment policy coordination.

| 2.2 | In addition, the Committee pointed out some need for adjustments in the drafting of the 2005-2008 guidelines, in particular in the following priorities:






  — | policy for better integration of young people into the labour market, not least to guarantee them a first job with future prospects; |
| --- | --- | --- |

2.2

In addition, the Committee pointed out some need for adjustments in the drafting of the 2005-2008 guidelines, in particular in the following priorities:

—

policy for better integration of young people into the labour market, not least to guarantee them a first job with future prospects;

| — | measures linked with the transition to a knowledge economy, inter alia to improve job quality and labour productivity; |
| --- | --- |

—

measures linked with the transition to a knowledge economy, inter alia to improve job quality and labour productivity;

| — | issues relating to gender equality with regard to employment and, in this context, measures to reconcile work and family life; |
| --- | --- |

—

issues relating to gender equality with regard to employment and, in this context, measures to reconcile work and family life;

| — | the challenges posed by the ageing of the workforce; and |
| --- | --- |

—

the challenges posed by the ageing of the workforce; and

| — | the need to do more to combat discrimination in employment based on age, disability or ethnic origins. |
| --- | --- |

—

the need to do more to combat discrimination in employment based on age, disability or ethnic origins.

| 2.3 | The EESC agrees with the judgement of the Cambridge Review Report examining individual countries' policies with respect to the employment sections of the national action plans for 2005, which concludes, on behalf of the Commission, that, in the horizontal areas set out in point 2.2 above in particular, individual measures were specified, but in many Member States were not — overall — tackled with sufficient urgency.
  Given that the labour market in many Member States has shown little improvement, and that implementation in these areas at national level still leaves much to be desired, the EESC considers it most important that special emphasis be given to these points in the annual recommendations to Member States and, if appropriate, that any necessary adjustments to the multiannual guidelines also be made. |
| --- | --- |

2.3

The EESC agrees with the judgement of the Cambridge Review Report examining individual countries' policies with respect to the employment sections of the national action plans for 2005, which concludes, on behalf of the Commission, that, in the horizontal areas set out in point 2.2 above in particular, individual measures were specified, but in many Member States were not — overall — tackled with sufficient urgency.

Given that the labour market in many Member States has shown little improvement, and that implementation in these areas at national level still leaves much to be desired, the EESC considers it most important that special emphasis be given to these points in the annual recommendations to Member States and, if appropriate, that any necessary adjustments to the multiannual guidelines also be made.

| 2.4 | This applies in particular to the near-absence of any specific and binding employment and labour market policy targets at European level.






  — | The watering-down of explicit and quantified targets to reference values in the 2005-2008 guidelines deviated from the previous approach in the European employment strategy of giving Member States a clear framework with unambiguous responsibilities. |
| --- | --- | --- |

2.4

This applies in particular to the near-absence of any specific and binding employment and labour market policy targets at European level.

—

The watering-down of explicit and quantified targets to reference values in the 2005-2008 guidelines deviated from the previous approach in the European employment strategy of giving Member States a clear framework with unambiguous responsibilities.

| — | The idea was that each Member State should instead, following input from its national parliament and the social partners, set its own targets for implementing the guidelines at national level as part of the national reform programmes that are to be drawn up. |
| --- | --- |

—

The idea was that each Member State should instead, following input from its national parliament and the social partners, set its own targets for implementing the guidelines at national level as part of the national reform programmes that are to be drawn up.

| 2.5 | The Committee pointed out a year ago that this may lead to a further watering-down of the binding nature of national implementation of priorities agreed at European level in that Member States' employment policy measures can no longer be judged against specific and quantifiable European targets to the same extent as before.
  One year on, this concern — especially about the trend towards dismantling binding targets — has largely been borne out, as an initial look at the employment sections of the national reform programmes put forward by the Member States shows. As a number of sources have already reported, many of the national reform programmes sent to the Commission are somewhat lacking in ambition as regards employment policy, which respects workers' rights and obligations:






  — | firstly, as has been the case in previous years, they often present ongoing measures that were on the national government agenda anyway; |
| --- | --- | --- |

2.5

The Committee pointed out a year ago that this may lead to a further watering-down of the binding nature of national implementation of priorities agreed at European level in that Member States' employment policy measures can no longer be judged against specific and quantifiable European targets to the same extent as before.

One year on, this concern — especially about the trend towards dismantling binding targets — has largely been borne out, as an initial look at the employment sections of the national reform programmes put forward by the Member States shows. As a number of sources have already reported, many of the national reform programmes sent to the Commission are somewhat lacking in ambition as regards employment policy, which respects workers' rights and obligations:

—

firstly, as has been the case in previous years, they often present ongoing measures that were on the national government agenda anyway;

| — | secondly, many national reform programmes lack specific information as to when, how and by whom they are to be implemented, and using what resources. |
| --- | --- |

—

secondly, many national reform programmes lack specific information as to when, how and by whom they are to be implemented, and using what resources.

In the light of the differing labour market structures and problems in the Member States, it makes basic sense to have a degree of flexibility in implementing the guidelines. As long as the conditions set out in point 2.4 continue to be met, it is essential to avoid watering down the goals of the new Lisbon strategy by not making them specific enough.

| 2.6 | The EESC therefore advocates effective measures aimed at improving the quality of future national programmes so that they are more binding as to timescales and responsibilities, and — as far as possible — include an appropriate financial basis.
  The national reform programmes mostly just contain national commitments to the overall Lisbon employment objectives (total employment, women, older people). The EESC advocates further specific targets in areas such as combating youth unemployment, the promotion of equality and of lifelong learning, support for people with disabilities (2) and the expansion of childcare facilities and the resources for active labour market policies. Only a few Member States have put forward ambitious proposals in this area.
  In this context, serious efforts should be made to focus again on European targets and lay them down in the guidelines. |
| --- | --- |

2.6

The EESC therefore advocates effective measures aimed at improving the quality of future national programmes so that they are more binding as to timescales and responsibilities, and — as far as possible — include an appropriate financial basis.

The national reform programmes mostly just contain national commitments to the overall Lisbon employment objectives (total employment, women, older people). The EESC advocates further specific targets in areas such as combating youth unemployment, the promotion of equality and of lifelong learning, support for people with disabilities (2) and the expansion of childcare facilities and the resources for active labour market policies. Only a few Member States have put forward ambitious proposals in this area.

In this context, serious efforts should be made to focus again on European targets and lay them down in the guidelines.

| 2.7 | The EESC has also pointed out that one key to the success of the national reform programmes is the widest possible involvement of all relevant social players — in particular the social partners — in every phase of the process.
  In this context, the Committee regrets that, in many cases, the necessary consultation with the social partners and a real debate with civil society did not take place when the national action plans were being drawn up. This was due, not least, to the very tight timetable for drawing up the reform programmes, as the Employment Committee Cambridge Review Report also notes in its analysis of the country reports.
  The EESC believes that such involvement of all the relevant social players is vital in order, for instance, to reconcile labour market flexibility and broad job security.
  The EESC believes that the lack of involvement of civil society is also one of the reasons most Member States have made insufficient effort to include the social security pillar. |
| --- | --- |

2.7

The EESC has also pointed out that one key to the success of the national reform programmes is the widest possible involvement of all relevant social players — in particular the social partners — in every phase of the process.

In this context, the Committee regrets that, in many cases, the necessary consultation with the social partners and a real debate with civil society did not take place when the national action plans were being drawn up. This was due, not least, to the very tight timetable for drawing up the reform programmes, as the Employment Committee Cambridge Review Report also notes in its analysis of the country reports.

The EESC believes that such involvement of all the relevant social players is vital in order, for instance, to reconcile labour market flexibility and broad job security.

The EESC believes that the lack of involvement of civil society is also one of the reasons most Member States have made insufficient effort to include the social security pillar.

| 2.8 | In this context it can also be noted that most of the reform programmes continue to pay too little attention to the need to adopt demand-oriented measures to stimulate growth and employment alongside structural reforms on the labour market. On that score, the Committee has, on a number of occasions recently, pointed out the need for a sound macroeconomic background at European and national level.
  In many Member States, it will not be possible to bring about a noticeable improvement in the employment situation unless there is a sustainable economic upswing. Appropriate framework conditions which are conducive to both external and internal demand must be established, in order to fully exploit the potential for growth and full employment. Only a few Member States give sufficient emphasis to economic stimulation in their reform programmes. |
| --- | --- |

2.8

In this context it can also be noted that most of the reform programmes continue to pay too little attention to the need to adopt demand-oriented measures to stimulate growth and employment alongside structural reforms on the labour market. On that score, the Committee has, on a number of occasions recently, pointed out the need for a sound macroeconomic background at European and national level.

In many Member States, it will not be possible to bring about a noticeable improvement in the employment situation unless there is a sustainable economic upswing. Appropriate framework conditions which are conducive to both external and internal demand must be established, in order to fully exploit the potential for growth and full employment. Only a few Member States give sufficient emphasis to economic stimulation in their reform programmes.

| 2.9 | Moreover, the EESC has pointed out on a number of occasions that employment policy measures without appropriate funding at national and European level will not work. The relevant priorities must therefore be provided for in budget planning. In this respect, too, the Cambridge Review notes a disparity in most Member States between proposals for labour market initiatives and a lack of budgetary provision.
  For example, the budgetary room for manoeuvre for appropriate infrastructure investments in the Member States needs to be increased. The national reform programmes should as far as possible be designed in such a way that they result in a Europe-wide programme for stimulating the economy. Public investment is an important part of this. In this context, the massive cuts in funding for TEN projects in the future EU budget should be reversed by reallocating resources.
  The EESC calls for these and other brakes to growth and employment to be taken into consideration during the detailed framing of the 2007-2013 financial perspective. |
| --- | --- |

2.9

Moreover, the EESC has pointed out on a number of occasions that employment policy measures without appropriate funding at national and European level will not work. The relevant priorities must therefore be provided for in budget planning. In this respect, too, the Cambridge Review notes a disparity in most Member States between proposals for labour market initiatives and a lack of budgetary provision.

For example, the budgetary room for manoeuvre for appropriate infrastructure investments in the Member States needs to be increased. The national reform programmes should as far as possible be designed in such a way that they result in a Europe-wide programme for stimulating the economy. Public investment is an important part of this. In this context, the massive cuts in funding for TEN projects in the future EU budget should be reversed by reallocating resources.

The EESC calls for these and other brakes to growth and employment to be taken into consideration during the detailed framing of the 2007-2013 financial perspective.

3.   Follow-up

| 3.1 | The EESC calls for the principle of participatory democracy to be given an appropriate role in the implementation of the national reform programmes in the Member States, and also in dealing with the Employment Guidelines in the coming years. The urgently needed progress on the employment pillar of the Lisbon process will be largely dependent on this. |
| --- | --- |

3.1

The EESC calls for the principle of participatory democracy to be given an appropriate role in the implementation of the national reform programmes in the Member States, and also in dealing with the Employment Guidelines in the coming years. The urgently needed progress on the employment pillar of the Lisbon process will be largely dependent on this.

| 3.2 | In this context, the EESC repeats its offer to take an active role, together with the national economic and social councils and similar institutions, in the future, in particular in monitoring the effective application of the guidelines by the Member States. |
| --- | --- |

3.2

In this context, the EESC repeats its offer to take an active role, together with the national economic and social councils and similar institutions, in the future, in particular in monitoring the effective application of the guidelines by the Member States.

| 3.3 | The Committee is considering issuing a separate own-initiative opinion on necessary adaptations of the guidelines over the next few years. |
| --- | --- |

3.3

The Committee is considering issuing a separate own-initiative opinion on necessary adaptations of the guidelines over the next few years.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  See the EESC opinion of 31.5.2005 on the Proposal for a Council Decision on guidelines for the employment policies of the Member States, in accordance with Article 128 of the EC Treaty (Rapporteur: Mr Malosse). (OJ C 286, 17.11.2005).

1

Proposal for a Council Decision on guidelines for the employment policies of the Member States, in accordance with Article 128 of the EC Treaty

(2)  EESC opinion of 20.4.2006 on the Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions - Situation of disabled people in the enlarged European Union: the European Action Plan 2006-2007 (Rapporteur: Ms Greif).

2

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/69 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/69

---

Opinion of the European Economic and Social Committee on the Communication from the Commission on the Biomass Action Plan

(COM(2005) 628 final)

(2006/C 195/19)

On 23 January 2006 the Commission decided to consult the European Economic and Social Committee, in accordance with Article 262 of the Treaty establishing the European Community and the protocol of cooperation between the European Commission and the European Economic and Social Committee of 7 November 2005, on the Communication from the Commission on the Biomass action plan

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 2 May 2006. The rapporteur was Mr Voss.

At its 427th plenary session, held on 17 and 18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion with 85 votes in favour and five abstentions.

1.   Conclusions and recommendations

| 1.1 | The EESC welcomes the Commission's Biomass Action Plan, which, in its view, makes a key contribution towards achieving sustainable development in Europe. |
| --- | --- |

1.1

The EESC welcomes the Commission's Biomass Action Plan, which, in its view, makes a key contribution towards achieving sustainable development in Europe.

| 1.2 | The analysis of the current expansion of the use of biomass and the potential of this material provides an initial overview of the scope for using biomass and the existing obstacles to its use in the various energy sectors. |
| --- | --- |

1.2

The analysis of the current expansion of the use of biomass and the potential of this material provides an initial overview of the scope for using biomass and the existing obstacles to its use in the various energy sectors.

| 1.3 | Bringing about an increase in the share of overall renewable energy represented by biomass is a key prerequisite for enabling the EU to achieve its goal of having renewable energy comprise 12 % of overall energy consumption by 2010. The proposal to step up the promotion of the use of biomass is therefore the right course of action and an essential step. |
| --- | --- |

1.3

Bringing about an increase in the share of overall renewable energy represented by biomass is a key prerequisite for enabling the EU to achieve its goal of having renewable energy comprise 12 % of overall energy consumption by 2010. The proposal to step up the promotion of the use of biomass is therefore the right course of action and an essential step.

| 1.4 | The proposal to close the gap in legislation with regard to the use of renewable energy for heating purposes is expressly supported by the EESC. The only instruments available up to now at EU level have been the Directive on promoting electricity produced from renewable sources and the Directive on promoting biofuels. In view of the fact that heating accounts for some 50 % of overall energy consumption, and in the light of the considerable potential of biomass as a means of producing heating, the Commission is expected to present a proposal on this subject before the end of 2006. |
| --- | --- |

1.4

The proposal to close the gap in legislation with regard to the use of renewable energy for heating purposes is expressly supported by the EESC. The only instruments available up to now at EU level have been the Directive on promoting electricity produced from renewable sources and the Directive on promoting biofuels. In view of the fact that heating accounts for some 50 % of overall energy consumption, and in the light of the considerable potential of biomass as a means of producing heating, the Commission is expected to present a proposal on this subject before the end of 2006.

| 1.5 | The scope of this proposal should, however, not be confined to biomass; it should also take account of other renewable energy technologies used in heating and cooling systems. Setting a concrete, binding target for the EU to achieve by 2020 would provide investors with security. The EU should set a binding target of having at least 25 % of final energy consumption met by energy produced from renewable sources by 2020. |
| --- | --- |

1.5

The scope of this proposal should, however, not be confined to biomass; it should also take account of other renewable energy technologies used in heating and cooling systems. Setting a concrete, binding target for the EU to achieve by 2020 would provide investors with security. The EU should set a binding target of having at least 25 % of final energy consumption met by energy produced from renewable sources by 2020.

| 1.6 | The EESC has some criticisms to make in respect of the Commission's planned report on the use of biofuels and calls for stronger measures to be adopted in this field. The use of biofuels can, in principle, make a substantial contribution towards reducing Europe's dependence on fossil-based energy sources. In this context, in particular, it is also becoming clear that, even if an ambitious substitution policy is pursued, the development of more effective transport systems and a substantial improvement in energy efficiency will continue to be of decisive importance. |
| --- | --- |

1.6

The EESC has some criticisms to make in respect of the Commission's planned report on the use of biofuels and calls for stronger measures to be adopted in this field. The use of biofuels can, in principle, make a substantial contribution towards reducing Europe's dependence on fossil-based energy sources. In this context, in particular, it is also becoming clear that, even if an ambitious substitution policy is pursued, the development of more effective transport systems and a substantial improvement in energy efficiency will continue to be of decisive importance.

| 1.7 | The EESC therefore urges the Commission to create, before the end of 2006, long-term prospects for investors and to propose new, binding targets with regard to the market share to be obtained by biofuels by 2020. |
| --- | --- |

1.7

The EESC therefore urges the Commission to create, before the end of 2006, long-term prospects for investors and to propose new, binding targets with regard to the market share to be obtained by biofuels by 2020.

| 1.8 | The funding provided up to now in the Seventh Framework Programme should be substantially increased. The use of lignocellulose-based biomass and by-products, in particular, should also be stepped up. |
| --- | --- |

1.8

The funding provided up to now in the Seventh Framework Programme should be substantially increased. The use of lignocellulose-based biomass and by-products, in particular, should also be stepped up.

| 1.9 | The existing Directive on the promotion of particularly efficient cogeneration (1) should be broadened in order to give priority to the use of biomass in cogeneration, provided that the underlying conditions render this possible. |
| --- | --- |

1.9

The existing Directive on the promotion of particularly efficient cogeneration (1) should be broadened in order to give priority to the use of biomass in cogeneration, provided that the underlying conditions render this possible.

| 1.10 | A horizontal approach should be adopted in respect of the policy for increasing the use of biomass in the EU. Coordinating agricultural policy, structural policy, regional policy and energy policy with a view to enabling farmers to gain greater access to the energy production market, too, may point the way forward for competitiveness, environmental protection and energy supply in Europe. |
| --- | --- |

1.10

A horizontal approach should be adopted in respect of the policy for increasing the use of biomass in the EU. Coordinating agricultural policy, structural policy, regional policy and energy policy with a view to enabling farmers to gain greater access to the energy production market, too, may point the way forward for competitiveness, environmental protection and energy supply in Europe.

| 1.11 | The EESC welcomes the fact that the Commission has flagged up the need for transparent, reliable trade agreements. Instruments providing for qualified market access, also in the case of biomass products, should, however, be set up under the WTO treaties. This is the only way to enable the embryonic European production industry to have the opportunity to develop. |
| --- | --- |

1.11

The EESC welcomes the fact that the Commission has flagged up the need for transparent, reliable trade agreements. Instruments providing for qualified market access, also in the case of biomass products, should, however, be set up under the WTO treaties. This is the only way to enable the embryonic European production industry to have the opportunity to develop.

| 1.12 | The use of biomass in the production of materials should also be discussed in a European action plan. |
| --- | --- |

1.12

The use of biomass in the production of materials should also be discussed in a European action plan.

| 1.13 | The Commission and the Member States are called upon to amend the Sixth Directive (2) on the harmonisation of the laws of the Member States relating to turnover taxes with a view to authorising Member States to apply a reduced rate of value-added tax on materials and services in connection with the use of heating and cooling systems powered by renewable energy. |
| --- | --- |

1.13

The Commission and the Member States are called upon to amend the Sixth Directive (2) on the harmonisation of the laws of the Member States relating to turnover taxes with a view to authorising Member States to apply a reduced rate of value-added tax on materials and services in connection with the use of heating and cooling systems powered by renewable energy.

| 1.14 | The EESC calls upon the EU Member States and the Commission to ensure that a minimum share of the resources of the EU Structural Funds is set aside for investment in the use of biomass and other renewable sources of energy. The EESC also advocates earmarking minimum shares in the European Agricultural Fund for Rural Development (EAFRD) for such investment. The share of funding set aside for investment in this field should increase and amount to 10 % of Structural Funds resources — as an average figure for the Member States — by the end of the planning period in 2013. |
| --- | --- |

1.14

The EESC calls upon the EU Member States and the Commission to ensure that a minimum share of the resources of the EU Structural Funds is set aside for investment in the use of biomass and other renewable sources of energy. The EESC also advocates earmarking minimum shares in the European Agricultural Fund for Rural Development (EAFRD) for such investment. The share of funding set aside for investment in this field should increase and amount to 10 % of Structural Funds resources — as an average figure for the Member States — by the end of the planning period in 2013.

| 1.15 | The EESC also believes that the decoupling of direct payments, as part of the latest reform of the CAP, provides a key prerequisite for stepping up energy plant cultivation. In the EESC's view, there is scope for action to be taken in the short-term within the framework of the CAP with a view to adjusting the energy plant premium. The use of this instrument should then also be made possible in the new Member States, in particular. |
| --- | --- |

1.15

The EESC also believes that the decoupling of direct payments, as part of the latest reform of the CAP, provides a key prerequisite for stepping up energy plant cultivation. In the EESC's view, there is scope for action to be taken in the short-term within the framework of the CAP with a view to adjusting the energy plant premium. The use of this instrument should then also be made possible in the new Member States, in particular.

| 1.16 | In addition to an ongoing monitoring of the extent to which targets have been achieved, there is, in the EESC's view, also a need to make it mandatory for the Member States to draw up biomass action plans. This would make it possible to identify and mobilise the potential of the various regions. |
| --- | --- |

1.16

In addition to an ongoing monitoring of the extent to which targets have been achieved, there is, in the EESC's view, also a need to make it mandatory for the Member States to draw up biomass action plans. This would make it possible to identify and mobilise the potential of the various regions.

| 1.17 | The EESC proposes that administrative barriers be removed and that account be taken of renewable sources of energy, for example in regional planning measures. |
| --- | --- |

1.17

The EESC proposes that administrative barriers be removed and that account be taken of renewable sources of energy, for example in regional planning measures.

| 1.18 | The EESC expects that the requirements in respect of safe certification of the origin of products would already be defined in a Biomass Action Plan. It draws attention to the following requirements: sustainability criteria in respect of products of EU origin; food sovereignty; and social and environmental standards to be met in order to gain qualified market access. |
| --- | --- |

1.18

The EESC expects that the requirements in respect of safe certification of the origin of products would already be defined in a Biomass Action Plan. It draws attention to the following requirements: sustainability criteria in respect of products of EU origin; food sovereignty; and social and environmental standards to be met in order to gain qualified market access.

| 1.19 | The EESC welcomes the fact that, according to the Commission, the same emission standards will apply to bioenergy as apply to fossil fuels. |
| --- | --- |

1.19

The EESC welcomes the fact that, according to the Commission, the same emission standards will apply to bioenergy as apply to fossil fuels.

| 1.20 | The EESC foresees the development of a single European energy policy. Whilst there may be a degree of useful competition between marketing systems for renewable sources of energy, those systems which have shown themselves to be particularly cost-efficient and efficient as regards the extent to which they have stimulated the development of new processes should also be applied throughout Europe. A case in point is the use of dynamic fixed price models which have already been introduced under the renewable energy acts adopted by many EU Member States. |
| --- | --- |

1.20

The EESC foresees the development of a single European energy policy. Whilst there may be a degree of useful competition between marketing systems for renewable sources of energy, those systems which have shown themselves to be particularly cost-efficient and efficient as regards the extent to which they have stimulated the development of new processes should also be applied throughout Europe. A case in point is the use of dynamic fixed price models which have already been introduced under the renewable energy acts adopted by many EU Member States.

| 1.21 | In the EESC's view, marketing measures cannot be geared to long-term subsidisation but should rather seek to be competitive and economically viable when external costs are also taken into account. |
| --- | --- |

1.21

In the EESC's view, marketing measures cannot be geared to long-term subsidisation but should rather seek to be competitive and economically viable when external costs are also taken into account.

2.   Explanatory statement

| 2.1 | The development of renewable sources of energy continues to top the energy policy agendas of both the EU and its Member States because of the following considerations: security of supply; the EU's increasing dependency on imports of oil and natural gas; rising oil prices; and the obligations to cut greenhouse gas emissions. |
| --- | --- |

2.1

The development of renewable sources of energy continues to top the energy policy agendas of both the EU and its Member States because of the following considerations: security of supply; the EU's increasing dependency on imports of oil and natural gas; rising oil prices; and the obligations to cut greenhouse gas emissions.

| 2.2 | The goals set out in the Directive on the promotion of electricity produced from renewable energy sources and those set out in the Directive on the use of biofuels, will not be achieved unless more far-reaching measures are taken. The EU will also fail to realise its overall goal of doubling the market share of renewable energy to 12 % if it persists with a ‘business as usual’ scenario. A major reason for this is that a large part of the energy required to meet this target would have to be produced from biomass and the development of this market is lagging behind expectations. |
| --- | --- |

2.2

The goals set out in the Directive on the promotion of electricity produced from renewable energy sources and those set out in the Directive on the use of biofuels, will not be achieved unless more far-reaching measures are taken. The EU will also fail to realise its overall goal of doubling the market share of renewable energy to 12 % if it persists with a ‘business as usual’ scenario. A major reason for this is that a large part of the energy required to meet this target would have to be produced from biomass and the development of this market is lagging behind expectations.

| 2.3 | The market share of all forms of renewable energy remains at a persistently low level; the share of renewable energy in the overall energy mix of the EU is likely to be only 9 % to 10 % by 2010, rather than the target figure of 12 %, unless appropriate measures are taken. The Commission has therefore submitted a biomass action plan which at least announces a number of further initiatives in this key area which has up to now been strategically neglected. |
| --- | --- |

2.3

The market share of all forms of renewable energy remains at a persistently low level; the share of renewable energy in the overall energy mix of the EU is likely to be only 9 % to 10 % by 2010, rather than the target figure of 12 %, unless appropriate measures are taken. The Commission has therefore submitted a biomass action plan which at least announces a number of further initiatives in this key area which has up to now been strategically neglected.

| 2.4 | Investments in energy utilisation are always long-term investments. A newly-completed power station will have an operational life of in excess of 30 years. Uncertainty over trends in oil and gas prices, in contrast to the high level of predictability of raw material costs in the biomass sector, represent, together with the effects of aspects such as climate change, a key economic reason for promoting this technology. Furthermore, the aim is not to engage in long-term subsidisation of systems but rather to develop systems which are competitive when also taking account of external costs. |
| --- | --- |

2.4

Investments in energy utilisation are always long-term investments. A newly-completed power station will have an operational life of in excess of 30 years. Uncertainty over trends in oil and gas prices, in contrast to the high level of predictability of raw material costs in the biomass sector, represent, together with the effects of aspects such as climate change, a key economic reason for promoting this technology. Furthermore, the aim is not to engage in long-term subsidisation of systems but rather to develop systems which are competitive when also taking account of external costs.

| 2.5 | In contrast to the expected price increases for conventional fuels, renewable energy technologies are providing ever better value for money as result of falling investment costs brought about by technical progress and mass production. |
| --- | --- |

2.5

In contrast to the expected price increases for conventional fuels, renewable energy technologies are providing ever better value for money as result of falling investment costs brought about by technical progress and mass production.

| 2.6 | Cost comparisons between renewable energy and conventional or nuclear energy are usually inadequate. In many cases comparisons are made between costs in respect of power stations built by former state-monopoly generating companies, the value of which has already been written off, and costs in respect of newly-installed capacity using renewable technologies. Furthermore, the external costs of conventional or nuclear technologies, such as damage to the environment or insurance benefits provided by the State in respect of power stations, are also not reflected in energy prices. |
| --- | --- |

2.6

Cost comparisons between renewable energy and conventional or nuclear energy are usually inadequate. In many cases comparisons are made between costs in respect of power stations built by former state-monopoly generating companies, the value of which has already been written off, and costs in respect of newly-installed capacity using renewable technologies. Furthermore, the external costs of conventional or nuclear technologies, such as damage to the environment or insurance benefits provided by the State in respect of power stations, are also not reflected in energy prices.

| 2.7 | In its action plan, the Commission sets out more than 20 measures, most of which are to be implemented from 2006. With regard to the use of biofuels in transport, a number of preliminary measures have to be taken prior to the introduction of obligations under which oil companies would have to add a given percentage of biofuels to their conventional fuels. |
| --- | --- |

2.7

In its action plan, the Commission sets out more than 20 measures, most of which are to be implemented from 2006. With regard to the use of biofuels in transport, a number of preliminary measures have to be taken prior to the introduction of obligations under which oil companies would have to add a given percentage of biofuels to their conventional fuels.

| 2.8 | In its action plan, the Commission announces that it will present a report in 2006 on a possible revision of the biofuels Directive; in this report the Commission will examine the implementation of this Directive in this EU Member States. The current market share of biofuels in the EU is 0.8 %; it is therefore highly unlikely that the target of a market share of 5.75 % for the EU as a whole, laid down in 2003, can be attained by 2010. |
| --- | --- |

2.8

In its action plan, the Commission announces that it will present a report in 2006 on a possible revision of the biofuels Directive; in this report the Commission will examine the implementation of this Directive in this EU Member States. The current market share of biofuels in the EU is 0.8 %; it is therefore highly unlikely that the target of a market share of 5.75 % for the EU as a whole, laid down in 2003, can be attained by 2010.

| 2.9 | Under the action plan the scope for improving fuel standards is to be examined with a view to promoting the use of energy from biomass in transport, electricity generation and heating. Investment in research, particularly into the production of liquid fuels from wood and waste materials, is also to be promoted, as is a campaign to inform farmers and owners of forests about energy crops. The Commission also intends to draw up legislation to promote the use of renewable energy for heating purposes. |
| --- | --- |

2.9

Under the action plan the scope for improving fuel standards is to be examined with a view to promoting the use of energy from biomass in transport, electricity generation and heating. Investment in research, particularly into the production of liquid fuels from wood and waste materials, is also to be promoted, as is a campaign to inform farmers and owners of forests about energy crops. The Commission also intends to draw up legislation to promote the use of renewable energy for heating purposes.

| 2.10 | According to estimates made by the Commission, if the measures foreseen in the action plan are implemented, biomass use could be increased to about 150 Mtoe by 2010 (as opposed to 69 Mtoe in 2003) without intensifying agricultural production and without significantly affecting domestic food production. According to the forecast made by the Commission, this could, in turn, bring about a reduction in greenhouse gas emissions of 206 million tonnes CO2 per year. Between 250 000 and 300 000 jobs would also be created — mostly in rural areas — and the EU's dependence on imported energy would be reduced from 48 % to 42 %. |
| --- | --- |

2.10

According to estimates made by the Commission, if the measures foreseen in the action plan are implemented, biomass use could be increased to about 150 Mtoe by 2010 (as opposed to 69 Mtoe in 2003) without intensifying agricultural production and without significantly affecting domestic food production. According to the forecast made by the Commission, this could, in turn, bring about a reduction in greenhouse gas emissions of 206 million tonnes CO2 per year. Between 250 000 and 300 000 jobs would also be created — mostly in rural areas — and the EU's dependence on imported energy would be reduced from 48 % to 42 %.

| 2.11 | Assuming the price of a barrel of crude oil to be $54, the Commission estimates that the directly measurable cost of the projected increase in biomass use would be EUR 9 billion per year — EUR 6 billion for biofuels and EUR 3 billion for biomass used in electricity generation. This is equivalent to an increase of about 1.5 cents per litre of petrol and 0.1 of a cent per kWh of electricity. |
| --- | --- |

2.11

Assuming the price of a barrel of crude oil to be $54, the Commission estimates that the directly measurable cost of the projected increase in biomass use would be EUR 9 billion per year — EUR 6 billion for biofuels and EUR 3 billion for biomass used in electricity generation. This is equivalent to an increase of about 1.5 cents per litre of petrol and 0.1 of a cent per kWh of electricity.

3.   General comments

| 3.1 | The EU will not achieve the goals which it has set with regard to expanding the use of renewable energy unless further measures are taken. The EESC welcomes the Biomass Action Plan and notes that, in setting a number of additional intermediate objectives, such as a 15 % overall share for renewable energy and an 8 % overall share for biogen fuels by 2015, the Spring Summit of Heads of State and Government signalled that an ambitious policy for the use of renewable sources of energy is to continue to be pursued. The decision taken by the European Parliament to set a target of a 25 % overall share for renewable energy sources by 2020 demonstrates that there is a growing determination to bring about a redirection of energy policy in the EU. |
| --- | --- |

3.1

The EU will not achieve the goals which it has set with regard to expanding the use of renewable energy unless further measures are taken. The EESC welcomes the Biomass Action Plan and notes that, in setting a number of additional intermediate objectives, such as a 15 % overall share for renewable energy and an 8 % overall share for biogen fuels by 2015, the Spring Summit of Heads of State and Government signalled that an ambitious policy for the use of renewable sources of energy is to continue to be pursued. The decision taken by the European Parliament to set a target of a 25 % overall share for renewable energy sources by 2020 demonstrates that there is a growing determination to bring about a redirection of energy policy in the EU.

| 3.2 | A further barrier is the fact that — as is the case with many other innovative technologies — the technologies employed in the case of renewable energy sources often still have to contend with a lack of confidence on the part of investors, governments and consumers; this can be put down to ignorance of the technical and economic possibilities offered by these sources of energy. In the EESC's view, there is a considerable need for information and further training not just in respect of users and consumers but also in the R & D sector; the Biomass Action Plan should address this need more intensively. |
| --- | --- |

3.2

A further barrier is the fact that — as is the case with many other innovative technologies — the technologies employed in the case of renewable energy sources often still have to contend with a lack of confidence on the part of investors, governments and consumers; this can be put down to ignorance of the technical and economic possibilities offered by these sources of energy. In the EESC's view, there is a considerable need for information and further training not just in respect of users and consumers but also in the R & D sector; the Biomass Action Plan should address this need more intensively.

| 3.2.1 | The EESC also notes that there is frequently a concentration of enterprises in the energy sector and points out that this does not always chime with the need for a rapid introduction of innovatory techniques and procedures. The EESC draws attention to the fact that, against the background of the current business structure, new impulses, which often arise in small and medium-sized enterprises, are not adequately exploited. It calls upon the Commission to put forward proposals for improving this situation. |
| --- | --- |

3.2.1

The EESC also notes that there is frequently a concentration of enterprises in the energy sector and points out that this does not always chime with the need for a rapid introduction of innovatory techniques and procedures. The EESC draws attention to the fact that, against the background of the current business structure, new impulses, which often arise in small and medium-sized enterprises, are not adequately exploited. It calls upon the Commission to put forward proposals for improving this situation.

| 3.3 | Increased use of biomass could not only bring about a substantial reduction in the EU's dependence on energy imports but also make a considerable contribution towards the realisation of the Lisbon strategy and the climate protection objectives. The use of biomass also tends to promote decentralised structures and thus also to encourage rural development. Particularly in the case of the new EU Member States, where a considerable proportion of the workforce is employed in agriculture, the use of biomass provides major scope for diversifying sources of income and safeguarding jobs. |
| --- | --- |

3.3

Increased use of biomass could not only bring about a substantial reduction in the EU's dependence on energy imports but also make a considerable contribution towards the realisation of the Lisbon strategy and the climate protection objectives. The use of biomass also tends to promote decentralised structures and thus also to encourage rural development. Particularly in the case of the new EU Member States, where a considerable proportion of the workforce is employed in agriculture, the use of biomass provides major scope for diversifying sources of income and safeguarding jobs.

| 3.4 | The EESC draws attention to the fact that Europe is currently the leading player in a number of areas of bioenergy technologies. The EU economy is dependent upon the development and export of new technologies. Innovatory procedures and products based on regrowing raw materials provide the basis for enabling the EU to lead the world in the technologies of the future. It is therefore of key importance to the economic development of regrowing raw materials in the EU that the requisite basic political conditions are in place. The establishment of these structures should also go hand–in–hand with measures to support the export of bioenergy technologies to countries outside the EU. |
| --- | --- |

3.4

The EESC draws attention to the fact that Europe is currently the leading player in a number of areas of bioenergy technologies. The EU economy is dependent upon the development and export of new technologies. Innovatory procedures and products based on regrowing raw materials provide the basis for enabling the EU to lead the world in the technologies of the future. It is therefore of key importance to the economic development of regrowing raw materials in the EU that the requisite basic political conditions are in place. The establishment of these structures should also go hand–in–hand with measures to support the export of bioenergy technologies to countries outside the EU.

| 3.5 | The EESC recognises the considerable labour-market potential generated by the implementation of the Biomass Action Plan alone. The MITRE (Monitoring and Modelling Initiative on the Targets for Renewable Energy) Synthesis Report of 2003 established that, if the EU were to adopt an ambitious raw-material strategy based on renewable sources of energy, almost 2.5 million net additional jobs would be created by 2020 in EU-15 alone. It was forecast that some two-thirds of these jobs would be created in the biomass sector. This will give rise, on the one hand, to an additional need for highly skilled employees, particularly in the fields of R and D. The number of employees required is estimated at 400 000. At the same time there will, on the other hand, also be a need for employees having low or modest basic skills. The EESC calls upon the Commission to investigate the prospects for the EU labour market in the period up to 2020 which would be opened up by an ambitious expansion of the use of biomass and renewable energy sources. |
| --- | --- |

3.5

The EESC recognises the considerable labour-market potential generated by the implementation of the Biomass Action Plan alone. The MITRE (Monitoring and Modelling Initiative on the Targets for Renewable Energy) Synthesis Report of 2003 established that, if the EU were to adopt an ambitious raw-material strategy based on renewable sources of energy, almost 2.5 million net additional jobs would be created by 2020 in EU-15 alone. It was forecast that some two-thirds of these jobs would be created in the biomass sector. This will give rise, on the one hand, to an additional need for highly skilled employees, particularly in the fields of R and D. The number of employees required is estimated at 400 000. At the same time there will, on the other hand, also be a need for employees having low or modest basic skills. The EESC calls upon the Commission to investigate the prospects for the EU labour market in the period up to 2020 which would be opened up by an ambitious expansion of the use of biomass and renewable energy sources.

| 3.6 | In the EESC's view, it is essential to set out binding long-term political targets in order to trigger investment and restructuring. The Biomass Action Plan fails to set such targets. The Commission is therefore urged to define, as soon as possible, concrete objectives concerning the use of biomass or other renewable energy sources. Binding European targets, covering the period up to, at least, 2020, should be defined in respect of electricity generation, heating and transport; these targets should be realistic but ambitious. A binding target should be set of having at least 25 % of final energy consumption met by energy produced from the abovementioned sources by 2020. The existing biomass potential in Europe, particularly as regards by-products, together with the potential amount of land available, once it is put to different use to meet changed demand structures, may make it possible to pursue this course of development. The EESC would point out that the USA is implementing, by means of an energy conservation act, its own similarly high targets for the long-term use of biomass. |
| --- | --- |

3.6

In the EESC's view, it is essential to set out binding long-term political targets in order to trigger investment and restructuring. The Biomass Action Plan fails to set such targets. The Commission is therefore urged to define, as soon as possible, concrete objectives concerning the use of biomass or other renewable energy sources. Binding European targets, covering the period up to, at least, 2020, should be defined in respect of electricity generation, heating and transport; these targets should be realistic but ambitious. A binding target should be set of having at least 25 % of final energy consumption met by energy produced from the abovementioned sources by 2020. The existing biomass potential in Europe, particularly as regards by-products, together with the potential amount of land available, once it is put to different use to meet changed demand structures, may make it possible to pursue this course of development. The EESC would point out that the USA is implementing, by means of an energy conservation act, its own similarly high targets for the long-term use of biomass.

| 3.7 | The EESC supports the cautious assessment of the raw-material basis (amount of biomass required) for implementing the Biomass Action Plan; it is expected that, during the planning period, these requirements will still not give rise to competition with agricultural raw material production. In the long term, it may be assumed that productivity will increase and that there will be a drop in the level of food consumed in Europe. At present a large proportion of arable land in the EU is required for keeping livestock. There is, however, on the other hand, a world-wide shortage of arable land. Considerable demands will therefore have to be placed on the development of efficient processing and conversion technologies. In this context, the EESC is critical of the ‘balanced approach’ advocated by the Commission with regard to the securing of supplies at international level, particularly supplies of the basic raw materials for biofuels. In this field cheap imports into the EU may endanger the production of basic food supplies in other parts of the world, whilst also holding back technological developments in Europe. |
| --- | --- |

3.7

The EESC supports the cautious assessment of the raw-material basis (amount of biomass required) for implementing the Biomass Action Plan; it is expected that, during the planning period, these requirements will still not give rise to competition with agricultural raw material production. In the long term, it may be assumed that productivity will increase and that there will be a drop in the level of food consumed in Europe. At present a large proportion of arable land in the EU is required for keeping livestock. There is, however, on the other hand, a world-wide shortage of arable land. Considerable demands will therefore have to be placed on the development of efficient processing and conversion technologies. In this context, the EESC is critical of the ‘balanced approach’ advocated by the Commission with regard to the securing of supplies at international level, particularly supplies of the basic raw materials for biofuels. In this field cheap imports into the EU may endanger the production of basic food supplies in other parts of the world, whilst also holding back technological developments in Europe.

| 3.8 | In spite of the different forms of energy requirements and differences as regards the biomass supply basis in Europe, the EESC expects a Biomass Action Plan to put forward views on how marketing systems can be developed. In this context and with a view to promoting electricity generation from renewable sources of energy, including biomass, the measures which have been shown to be the most efficient in terms of both cost and development are models for feeding electricity into the grid and premium models, such as those developed in Germany. In its communication on electricity from renewable energy sources (3), the Commission has already drawn attention to this point. The basic financial conditions are not, however, the only decisive factors with a view to expanding the use of renewable sources of energy. At least four parameters have to be met in order to ensure successful expansion in this field. |
| --- | --- |

3.8

In spite of the different forms of energy requirements and differences as regards the biomass supply basis in Europe, the EESC expects a Biomass Action Plan to put forward views on how marketing systems can be developed. In this context and with a view to promoting electricity generation from renewable sources of energy, including biomass, the measures which have been shown to be the most efficient in terms of both cost and development are models for feeding electricity into the grid and premium models, such as those developed in Germany. In its communication on electricity from renewable energy sources (3), the Commission has already drawn attention to this point. The basic financial conditions are not, however, the only decisive factors with a view to expanding the use of renewable sources of energy. At least four parameters have to be met in order to ensure successful expansion in this field.

| 3.9 | These conditions are as follows: an efficient financial incentive model; guaranteed, fair conditions in respect of access to the grid; transparent administrative procedures; and public acceptance. Only if these four conditions are fulfilled at the same time will it be possible to achieve a significant rate of growth as regards the generation of electricity from renewable energy sources. Electricity generation accounts for some 20 % of the EU's energy requirements. |
| --- | --- |

3.9

These conditions are as follows: an efficient financial incentive model; guaranteed, fair conditions in respect of access to the grid; transparent administrative procedures; and public acceptance. Only if these four conditions are fulfilled at the same time will it be possible to achieve a significant rate of growth as regards the generation of electricity from renewable energy sources. Electricity generation accounts for some 20 % of the EU's energy requirements.

| 3.10 | The EESC endorses the conclusion, set out in the abovementioned Commission Communication, to the effect that it is too early at present to bring about complete harmonisation of aid models for promoting electricity from renewable energy sources. The EESC does, however, call upon both the Commission and the Members States to make preparations for the introduction throughout Europe of the most effective components of such models. |
| --- | --- |

3.10

The EESC endorses the conclusion, set out in the abovementioned Commission Communication, to the effect that it is too early at present to bring about complete harmonisation of aid models for promoting electricity from renewable energy sources. The EESC does, however, call upon both the Commission and the Members States to make preparations for the introduction throughout Europe of the most effective components of such models.

| 3.11 | The Commission is called upon — in line with Directive 2001/77 (4) — to monitor the above-mentioned conditions in the Member States and, if necessary, to insist on their introduction. |
| --- | --- |

3.11

The Commission is called upon — in line with Directive 2001/77 (4) — to monitor the above-mentioned conditions in the Member States and, if necessary, to insist on their introduction.

| 3.12 | The EESC endorses the Commission's appraisal of the role to be played by biomass in implementing Directive 2001/77. In the Action Plan the expansion of cogeneration, particularly when also utilising biomass, is described as a key prospect for future development. The EESC calls for the Directive to be brought into line with the cogeneration Directive. It should be stressed that, over the next two decades, the impending high level of investment in replacing power stations will provide an opportunity for expanding cogeneration in Europe. This will, as is widely acknowledged, promote more decentralised electricity generation, in close proximity to the consumer. The EESC does, however, draw attention to the fact that the Biomass Action Plan fails to put forward any views on how to ensure that electricity producers, including those producing energy from biomass, can be given access, on a non-discriminatory basis, to electricity grids. |
| --- | --- |

3.12

The EESC endorses the Commission's appraisal of the role to be played by biomass in implementing Directive 2001/77. In the Action Plan the expansion of cogeneration, particularly when also utilising biomass, is described as a key prospect for future development. The EESC calls for the Directive to be brought into line with the cogeneration Directive. It should be stressed that, over the next two decades, the impending high level of investment in replacing power stations will provide an opportunity for expanding cogeneration in Europe. This will, as is widely acknowledged, promote more decentralised electricity generation, in close proximity to the consumer. The EESC does, however, draw attention to the fact that the Biomass Action Plan fails to put forward any views on how to ensure that electricity producers, including those producing energy from biomass, can be given access, on a non-discriminatory basis, to electricity grids.

| 3.13 | 50 % of Europe's energy requirements is used for the production of heating. Despite the considerable potential of biomass with regard to the production of heating, heating produced from this source probably accounts for less than 10 % of the market at the present time. The EESC therefore expressly welcomes the proposals set out in the Action Plan. In view of the fact that investment in heating systems and building systems is very long-term investment and, to a certain extent, also capital-intensive, the EESC calls for a prompt start to be made on implementing the proposed measures. The proposal for a legislative initiative in respect of heating and cooling systems should be extended to take the form of a Directive on the promotion of heating and cooling produced from all renewable sources of energy, i.e. including solar energy and geothermal energy. In addition to the measures proposed by the Commission, a future Directive should lay down binding national objectives which should take account of differences as regards natural resources and existing capacities. |
| --- | --- |

3.13

50 % of Europe's energy requirements is used for the production of heating. Despite the considerable potential of biomass with regard to the production of heating, heating produced from this source probably accounts for less than 10 % of the market at the present time. The EESC therefore expressly welcomes the proposals set out in the Action Plan. In view of the fact that investment in heating systems and building systems is very long-term investment and, to a certain extent, also capital-intensive, the EESC calls for a prompt start to be made on implementing the proposed measures. The proposal for a legislative initiative in respect of heating and cooling systems should be extended to take the form of a Directive on the promotion of heating and cooling produced from all renewable sources of energy, i.e. including solar energy and geothermal energy. In addition to the measures proposed by the Commission, a future Directive should lay down binding national objectives which should take account of differences as regards natural resources and existing capacities.

| 3.14 | The EESC deplores the fact that hardly any reliable statistics are available relating to heating; if there were to be a uniform system throughout Europe for monitoring the use of heating, this would enable the EU as a whole to plan the use of resources more effectively. As regards the conversion of district heating networks to use biomass as fuel, the EESC underscores the Commission's appraisal in respect of the importance, the development and the safeguarding of these networks. In the new Member States, in particular, there is a considerable number of such networks which need to be safeguarded.
  The existing Directive on the energy performance of buildings should be implemented as soon as possible in all Member States and endeavours should be made to amend the Directive. The field of application of the Directive should be extended to include all buildings, including those having a surface area of less the 1 000 m2. Priority should be given to the use of decentralised energy systems based on biomass. The EESC endorses the observations made in the Action Plan on the building of new district heating systems — and the safeguarding of existing systems — using biomass to produce heat and, in particular, heat and power. |
| --- | --- |

3.14

The EESC deplores the fact that hardly any reliable statistics are available relating to heating; if there were to be a uniform system throughout Europe for monitoring the use of heating, this would enable the EU as a whole to plan the use of resources more effectively. As regards the conversion of district heating networks to use biomass as fuel, the EESC underscores the Commission's appraisal in respect of the importance, the development and the safeguarding of these networks. In the new Member States, in particular, there is a considerable number of such networks which need to be safeguarded.

The existing Directive on the energy performance of buildings should be implemented as soon as possible in all Member States and endeavours should be made to amend the Directive. The field of application of the Directive should be extended to include all buildings, including those having a surface area of less the 1 000 m2. Priority should be given to the use of decentralised energy systems based on biomass. The EESC endorses the observations made in the Action Plan on the building of new district heating systems — and the safeguarding of existing systems — using biomass to produce heat and, in particular, heat and power.

| 3.15 | The EESC welcomes the points made by the Commission in the Biomass Action Plan with regard to the existing and future emission standards (and the Directive on particulate matter) in connection with the use of biomass. The same standards apply in the case of the production of heating and electricity generation and also the use of fuels. |
| --- | --- |

3.15

The EESC welcomes the points made by the Commission in the Biomass Action Plan with regard to the existing and future emission standards (and the Directive on particulate matter) in connection with the use of biomass. The same standards apply in the case of the production of heating and electricity generation and also the use of fuels.

4.   Specific comments

| 4.1 | Although fuels account for only 20 % of Europe's energy needs, they derive, almost exclusively, from imports of fossil-based raw materials. This fact justifies the considerable amount of space devoted to fuels in the Biomass Action Plan. In the EESC's view, the Commission's activities in this field, as described in the Biomass Action Plan, bear the hallmark, to an excessive degree, of pressure to come up with successful proposals without delay. Too much emphasis is placed on imports of marketable fuels and too little importance is attached to the new dependence on imported products and to effects on the environmental and social balance in the new energy-producing states. The EESC requests the Commission to examine whether this strategy, as set out in the Action Plan, might not actually have the effect of delaying the development of sustainable European solutions. |
| --- | --- |

4.1

Although fuels account for only 20 % of Europe's energy needs, they derive, almost exclusively, from imports of fossil-based raw materials. This fact justifies the considerable amount of space devoted to fuels in the Biomass Action Plan. In the EESC's view, the Commission's activities in this field, as described in the Biomass Action Plan, bear the hallmark, to an excessive degree, of pressure to come up with successful proposals without delay. Too much emphasis is placed on imports of marketable fuels and too little importance is attached to the new dependence on imported products and to effects on the environmental and social balance in the new energy-producing states. The EESC requests the Commission to examine whether this strategy, as set out in the Action Plan, might not actually have the effect of delaying the development of sustainable European solutions.

| 4.2 | In the biofuel sector, tax reductions or tax exemptions have been shown to represent the most effective aid measures. This instrument has facilitated, in particular, investments tailored to regional requirements. The Member States should continue to have this option available to them. The Action Plan fails to make this point clear. |
| --- | --- |

4.2

In the biofuel sector, tax reductions or tax exemptions have been shown to represent the most effective aid measures. This instrument has facilitated, in particular, investments tailored to regional requirements. The Member States should continue to have this option available to them. The Action Plan fails to make this point clear.

| 4.2.1 | High priority should be attached in the R & D sector — and therefore also in the future implementation of an EU biofuel strategy — to the use of substitute natural gas (SNG), in addition to biomass-to-liquid (BTL) fuels. In comparison with biodiesel produced from oil-bearing plants, biogas has a five times higher energy yield per ha. SNG has a high level of output per area unit and is at an advanced stage of development; the use of this fuel does, in principal, also make it possible to produce fuel, power and heating at the same time in decentralised SNG plans. |
| --- | --- |

4.2.1

High priority should be attached in the R & D sector — and therefore also in the future implementation of an EU biofuel strategy — to the use of substitute natural gas (SNG), in addition to biomass-to-liquid (BTL) fuels. In comparison with biodiesel produced from oil-bearing plants, biogas has a five times higher energy yield per ha. SNG has a high level of output per area unit and is at an advanced stage of development; the use of this fuel does, in principal, also make it possible to produce fuel, power and heating at the same time in decentralised SNG plans.

| 4.3 | The EESC supports the Commission in its endeavour to formulate a binding target of a 5.75 % market share for biofuels by 2010. It welcomes the fact that the 2006 Spring Summit of Heads of State and Government set an intermediate objective of 8 %, to be achieved by 2015. The EESC does, however, note the lack of a strong commitment on the part of the economic enterprises concerned, the Commission and the Member States to make the urgently necessary quantum leap as regards the achievement of more efficient transport systems. At this juncture the EESC welcomes the proposals set out in the Action Plan for removing the various forms of discrimination against biofuels and the proposals in respect of standardisation. |
| --- | --- |

4.3

The EESC supports the Commission in its endeavour to formulate a binding target of a 5.75 % market share for biofuels by 2010. It welcomes the fact that the 2006 Spring Summit of Heads of State and Government set an intermediate objective of 8 %, to be achieved by 2015. The EESC does, however, note the lack of a strong commitment on the part of the economic enterprises concerned, the Commission and the Member States to make the urgently necessary quantum leap as regards the achievement of more efficient transport systems. At this juncture the EESC welcomes the proposals set out in the Action Plan for removing the various forms of discrimination against biofuels and the proposals in respect of standardisation.

| 4.4 | The use of biomass should be substantially strengthened under the Seventh Framework Programme for Research. One of the objectives in this context must be to make renewable energy sources competitive. The EESC draws attention to the fact that a paradigm shift in research policy towards research into renewable resources is of decisive importance to economic development in Europe. The EESC expects to see more binding statements issued in this context, also in the Biomass Action Plan. The EESC underlines the fact that the main areas in which development is lagging behind are not the supply of biomass but rather in the availability of technologies for producing marketable products. |
| --- | --- |

4.4

The use of biomass should be substantially strengthened under the Seventh Framework Programme for Research. One of the objectives in this context must be to make renewable energy sources competitive. The EESC draws attention to the fact that a paradigm shift in research policy towards research into renewable resources is of decisive importance to economic development in Europe. The EESC expects to see more binding statements issued in this context, also in the Biomass Action Plan. The EESC underlines the fact that the main areas in which development is lagging behind are not the supply of biomass but rather in the availability of technologies for producing marketable products.

| 4.4.1 | With a view to developing the use of biomass, including its use for the production of materials, it is also often advisable to adopt an approach based on fractions of biomass and utilisation cascades. In principle, however, the decisive factors are market prices and production costs and future estimates in respect of these factors. By way of example, bearing in mind that there is no market for processed wood products, it is generally more advisable and more effective to make use of wood for the direct production of heating or energy, rather than processing it into fuel by means of a long BTL process involving energy losses. In the EESC's view, the Action Plan should adopt a more differentiated approach in this context and thus attach greater importance also to the use of biomass for the production of heating. |
| --- | --- |

4.4.1

With a view to developing the use of biomass, including its use for the production of materials, it is also often advisable to adopt an approach based on fractions of biomass and utilisation cascades. In principle, however, the decisive factors are market prices and production costs and future estimates in respect of these factors. By way of example, bearing in mind that there is no market for processed wood products, it is generally more advisable and more effective to make use of wood for the direct production of heating or energy, rather than processing it into fuel by means of a long BTL process involving energy losses. In the EESC's view, the Action Plan should adopt a more differentiated approach in this context and thus attach greater importance also to the use of biomass for the production of heating.

| 4.5 | The EESC expects that the Council and the Commission will give high priority, also in the context of the allocation and distribution of resources from the Structural Funds in the Member States, to expanding investment in renewable energy sources and, in particular, biomass. A mandatory minimum share of Structural Funds resources allocated to the EU Member States should be earmarked for this type of investment. By the end of the current planning period in 2013, the share of Structural Funds resources set aside for investment in this field should amount to 10 %, as an average figure for the EU Member States. |
| --- | --- |

4.5

The EESC expects that the Council and the Commission will give high priority, also in the context of the allocation and distribution of resources from the Structural Funds in the Member States, to expanding investment in renewable energy sources and, in particular, biomass. A mandatory minimum share of Structural Funds resources allocated to the EU Member States should be earmarked for this type of investment. By the end of the current planning period in 2013, the share of Structural Funds resources set aside for investment in this field should amount to 10 %, as an average figure for the EU Member States.

| 4.5.1 | In the context of the allocation of funding under the second pillar (rural development) of the European Agricultural Fund for Rural Development (EAFRD), renewable energy is mentioned in the strategic planning section, which deserves overall endorsement. Particularly in view of the very limited financial resources and in the light of the potential of rural areas, steps should be taken to ensure that, in the case of this funding, too, by the end of the planning period in 2013, a minimum average share, for the EU Member States as a whole, of 10 % is set aside for investment in renewable energy. |
| --- | --- |

4.5.1

In the context of the allocation of funding under the second pillar (rural development) of the European Agricultural Fund for Rural Development (EAFRD), renewable energy is mentioned in the strategic planning section, which deserves overall endorsement. Particularly in view of the very limited financial resources and in the light of the potential of rural areas, steps should be taken to ensure that, in the case of this funding, too, by the end of the planning period in 2013, a minimum average share, for the EU Member States as a whole, of 10 % is set aside for investment in renewable energy.

| 4.6 | The EESC draws attention to the statements made in the Biomass Action Plan with regard to the impact of decoupling on the cultivation of regrowing raw materials. The EESC would, however, highlight the following opportunity to make adjustment in the short-term: the energy plant premium (EUR 45/ha) in respect of 1.5 m ha, adopted as part of the Luxembourg decision on EU agricultural reform (2003), is coming up for review at the end of 2006. The EESC calls upon the Commission to consider whether the current value of the premium is sufficient. The EESC considers that the current application procedure is too bureaucratic and it proposes that administrative adjustment be made as a matter of urgency. As things stand at present, no application for energy plant premiums may be made in the new accession states which have opted for a simplified CAP procedure (eight out of the ten new Member States). As part of the adjustments to be made from the end of 2006, the EESC calls for these Member States, too, to be given the possibility of having access to this area payment. As regards the amount of the premium, a separate adjustment should be made for those locations which, as results of the transformation process, are not entitled to receive payments (5). |
| --- | --- |

4.6

The EESC draws attention to the statements made in the Biomass Action Plan with regard to the impact of decoupling on the cultivation of regrowing raw materials. The EESC would, however, highlight the following opportunity to make adjustment in the short-term: the energy plant premium (EUR 45/ha) in respect of 1.5 m ha, adopted as part of the Luxembourg decision on EU agricultural reform (2003), is coming up for review at the end of 2006. The EESC calls upon the Commission to consider whether the current value of the premium is sufficient. The EESC considers that the current application procedure is too bureaucratic and it proposes that administrative adjustment be made as a matter of urgency. As things stand at present, no application for energy plant premiums may be made in the new accession states which have opted for a simplified CAP procedure (eight out of the ten new Member States). As part of the adjustments to be made from the end of 2006, the EESC calls for these Member States, too, to be given the possibility of having access to this area payment. As regards the amount of the premium, a separate adjustment should be made for those locations which, as results of the transformation process, are not entitled to receive payments (5).

| 4.7 | The EESC proposes that the EU Biomass Action Plan makes provision for mandatory national and regional action plans in the Member States. In view of the diversity of the EU Member States and regions, this would be a step towards identifying the potential and shaping a policy and administrative bodies accordingly. |
| --- | --- |

4.7

The EESC proposes that the EU Biomass Action Plan makes provision for mandatory national and regional action plans in the Member States. In view of the diversity of the EU Member States and regions, this would be a step towards identifying the potential and shaping a policy and administrative bodies accordingly.

| 4.7.1 | The EESC draws attention to the fact that the Action Plan fails to address the scope, shortcomings and impediments with regard to the extended use biomass and of renewable energy in the Member States and regions. A number of possible remedies may be proposed, namely: making it mandatory to take account of this issue in regional planning measures and incorporate it in these measures; pinpointing and removing discrimination in administrative bodies; concentrating the work in the planning and construction phases on one administrative department. |
| --- | --- |

4.7.1

The EESC draws attention to the fact that the Action Plan fails to address the scope, shortcomings and impediments with regard to the extended use biomass and of renewable energy in the Member States and regions. A number of possible remedies may be proposed, namely: making it mandatory to take account of this issue in regional planning measures and incorporate it in these measures; pinpointing and removing discrimination in administrative bodies; concentrating the work in the planning and construction phases on one administrative department.

| 4.8 | The EESC calls upon the Commission and the Member States to amend the Sixth Directive (77/388/EEC) on the harmonisation of the laws of the Member States relating to turnover taxes with a view to authorising Member States to apply a reduced rate of VAT on materials and services in connection with the use of heating and cooling generated from renewable sources of energy. By way of example, some Member States currently exempt gas and oil burners from taxes, whilst levying the full rate of taxation on investment in heating produced from renewable sources of energy. |
| --- | --- |

4.8

The EESC calls upon the Commission and the Member States to amend the Sixth Directive (77/388/EEC) on the harmonisation of the laws of the Member States relating to turnover taxes with a view to authorising Member States to apply a reduced rate of VAT on materials and services in connection with the use of heating and cooling generated from renewable sources of energy. By way of example, some Member States currently exempt gas and oil burners from taxes, whilst levying the full rate of taxation on investment in heating produced from renewable sources of energy.

| 4.9 | There is, in the EESC's view, an urgent need to introduce a European energy policy. When selecting the instruments governing the introduction of renewable energy onto the market, there is a need to find a balanced approach based not only on competition between national systems but also involving dynamic progression towards introducing clearly the most efficient rules. |
| --- | --- |

4.9

There is, in the EESC's view, an urgent need to introduce a European energy policy. When selecting the instruments governing the introduction of renewable energy onto the market, there is a need to find a balanced approach based not only on competition between national systems but also involving dynamic progression towards introducing clearly the most efficient rules.

| 4.10 | The EESC also believes that there is a need to take action without delay to introduce a certification system with regard to the origin of biomass raw materials. This is the only way to avoid negative balance sheets in respect of the environment and climate. The following requirements should be laid down (6):






  — | cultivation of regrowing raw materials should be subject to the same principles of good professional practice as food production; |
| --- | --- | --- |

4.10

The EESC also believes that there is a need to take action without delay to introduce a certification system with regard to the origin of biomass raw materials. This is the only way to avoid negative balance sheets in respect of the environment and climate. The following requirements should be laid down (6):

—

cultivation of regrowing raw materials should be subject to the same principles of good professional practice as food production;

| — | even after having been used for growing non-food raw materials, the land concerned must remain suitable for food production; |
| --- | --- |

—

even after having been used for growing non-food raw materials, the land concerned must remain suitable for food production;

| — | regrowing raw materials should be cultivated on land that is already being used for agriculture and on set-aside land, including, for example, areas which reform has left temporarily uncultivated, and their cultivation must not lead to a reduction in permanent pasture; |
| --- | --- |

—

regrowing raw materials should be cultivated on land that is already being used for agriculture and on set-aside land, including, for example, areas which reform has left temporarily uncultivated, and their cultivation must not lead to a reduction in permanent pasture;

| — | production should ideally be in regional or local cycles so as to reduce transport; |
| --- | --- |

—

production should ideally be in regional or local cycles so as to reduce transport;

| — | ecologically valuable land should be reserved for nature conservation and managed in accordance with conservation goals; |
| --- | --- |

—

ecologically valuable land should be reserved for nature conservation and managed in accordance with conservation goals;

| — | raw materials that demonstrate a good ecobalance should be both promoted and cultivated; |
| --- | --- |

—

raw materials that demonstrate a good ecobalance should be both promoted and cultivated;

| — | special attention should be paid to the achievement of closed food cycles. |
| --- | --- |

—

special attention should be paid to the achievement of closed food cycles.

| 4.11 | The following requirements should also be included in the certification process in respect of the international trade in biomass and biomass products: food sovereignty (which implies that ensuring security of food supply takes precedence over the cultivation of cash crops); social and environmental standards in respect of production; no clearing of primeval forests. The EESC calls upon the EU to ensure that these criteria are also incorporated into WTO rules. |
| --- | --- |

4.11

The following requirements should also be included in the certification process in respect of the international trade in biomass and biomass products: food sovereignty (which implies that ensuring security of food supply takes precedence over the cultivation of cash crops); social and environmental standards in respect of production; no clearing of primeval forests. The EESC calls upon the EU to ensure that these criteria are also incorporated into WTO rules.

| 4.12 | The EESC calls upon the Commission to give its support, in the Biomass Action Plan, to the creation of an International Renewable Energy Agency (IRENA) and also to pay greater heed in the Action Plan to the issue of transparency in the international raw materials trade and industry. |
| --- | --- |

4.12

The EESC calls upon the Commission to give its support, in the Biomass Action Plan, to the creation of an International Renewable Energy Agency (IRENA) and also to pay greater heed in the Action Plan to the issue of transparency in the international raw materials trade and industry.

Brussels, 17 May 2006.

The president

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  Directive 2004/8/EC on the promotion of cogeneration based on a useful heat demand in the internal energy market - OJ L 52 of 21.2.2004.

1

(2)  Council Directive 77/388/EEC of 17.5.1977 on the harmonisation of the laws of the Member States relating to turnover taxes – Common system of value added tax: uniform basis of assessment.

2

(3)  Communication of 7.12.2005, COM(2005) 627 final.

3

(4)  Directive 2001/77/EC of 27.9.2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market.

4

(5)  See NAT/288, point 3.2.4.2.

5

(6)  See NAT/288, point 3.7.

6

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/75 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/75

---

Opinion of the European Economic and Social Committee on The development and promotion of alternative fuels for road transport in the European Union

(2006/C 195/20)

On 14 July 2005, the European Economic and Social Committee, acting under Rule 29(2) of its Rules of Procedure, decided to draw up an opinion on: The development and promotion of alternative fuels for road transport in the European Union

The Section for Transport, Energy, Infrastructure and Information Society, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 24 March 2006. The rapporteur was Mr Ranocchiari.

At its 427th plenary session of 17 and 18 May 2006 (meeting of 17 May ) the European Economic and Social Committee adopted the following opinion by 82 votes to 2, with 1 abstention:

1.   Executive summary and recommendations

| 1.1 | Energy demand is expected to grow dramatically in the next decades and public concerns are mounting over energy dependence from outside regions and environmental issue. |
| --- | --- |

1.1

Energy demand is expected to grow dramatically in the next decades and public concerns are mounting over energy dependence from outside regions and environmental issue.

| 1.2 | The EESC is fully aware of the problem and it has been adopting important exploratory or own initiative opinion on key energy issues (1), while some others are still under discussion (2). |
| --- | --- |

1.2

The EESC is fully aware of the problem and it has been adopting important exploratory or own initiative opinion on key energy issues (1), while some others are still under discussion (2).

| 1.3 | All the EESC opinions concur on some fundamental assumptions. The dominance of traditional (fossil) energy sources will continue for the next two or three decades. At the same time the contribution from renewable energies will definitely grow but not at a rate above that of energy consumption. Their share in the energy supply will stay 15 % to 20 % of energy consumption. Nevertheless renewable energy sources have a preferential role to play and must be promoted and supported. |
| --- | --- |

1.3

All the EESC opinions concur on some fundamental assumptions. The dominance of traditional (fossil) energy sources will continue for the next two or three decades. At the same time the contribution from renewable energies will definitely grow but not at a rate above that of energy consumption. Their share in the energy supply will stay 15 % to 20 % of energy consumption. Nevertheless renewable energy sources have a preferential role to play and must be promoted and supported.

| 1.4 | The same occurs for the road transport sector which is practically fully depending on oil (gasoline and conventional diesel). The present opinion therefore intends to make a contribution to the European Commission challenging objective of a 20 % substitution of traditional fuels by alternative ones before the year 2020. |
| --- | --- |

1.4

The same occurs for the road transport sector which is practically fully depending on oil (gasoline and conventional diesel). The present opinion therefore intends to make a contribution to the European Commission challenging objective of a 20 % substitution of traditional fuels by alternative ones before the year 2020.

| 1.5 | The Commission plan entrusts biofuels, Natural Gas (NG) and Hydrogen (H2) with the task of displacing petroleum-derived fuels. As a matter of fact because of its fossil origin NG should not be considered as a full alternative fuel as it is not a renewable source, nevertheless its contribution to the Commission objective is of paramount importance, because of its large availability and environmental benefits. None of the two first options (biofuel and NG) is perfect, entirely free of adverse effects on the environment, and on energy efficiency. Hydrogen seems to be the correct answer but much more R&D is required to come up with a safe and cost-effective ‘Hydrogen Economy’. |
| --- | --- |

1.5

The Commission plan entrusts biofuels, Natural Gas (NG) and Hydrogen (H2) with the task of displacing petroleum-derived fuels. As a matter of fact because of its fossil origin NG should not be considered as a full alternative fuel as it is not a renewable source, nevertheless its contribution to the Commission objective is of paramount importance, because of its large availability and environmental benefits. None of the two first options (biofuel and NG) is perfect, entirely free of adverse effects on the environment, and on energy efficiency. Hydrogen seems to be the correct answer but much more R&D is required to come up with a safe and cost-effective ‘Hydrogen Economy’.

| 1.6 | Biofuels bring about environmental benefits because as a rule they have a much lower impact on the climate and ideally have no impact at all. Since crop-based fuels such as bioethanol and FAME (Fatty Acid Methyl Ester) are available in quantities which are commensurate with the crop itself, blending of bioethanol into the gasoline pool and of FAME in the diesel pool is an effective and environmentally sound strategy. |
| --- | --- |

1.6

Biofuels bring about environmental benefits because as a rule they have a much lower impact on the climate and ideally have no impact at all. Since crop-based fuels such as bioethanol and FAME (Fatty Acid Methyl Ester) are available in quantities which are commensurate with the crop itself, blending of bioethanol into the gasoline pool and of FAME in the diesel pool is an effective and environmentally sound strategy.

| 1.7 | Blending components must comply with the specifications issued e.g. by CEN (Comité Européen de Normalisation) in order to preserve the proper functioning of the engine and to prevent that fuel consumption and exhaust emission deteriorate. Higher concentration of FAME in diesel fuel requires specific vehicle adaptation. This is a possibility in case of dedicated fleet e.g. city buses. |
| --- | --- |

1.7

Blending components must comply with the specifications issued e.g. by CEN (Comité Européen de Normalisation) in order to preserve the proper functioning of the engine and to prevent that fuel consumption and exhaust emission deteriorate. Higher concentration of FAME in diesel fuel requires specific vehicle adaptation. This is a possibility in case of dedicated fleet e.g. city buses.

| 1.8 | The Commission issued the Directive 2003/30/EC to promote the use of biofuels while regarding NG no specific initiatives were taken to date, but the possibility of tax reduction is the same as for the biofuels: yet it expects from NG the largest single contribution to the 2020 objectives. Apparently the European Commission wanted to see how things were going to develop for NG as the result of the tax advantage. |
| --- | --- |

1.8

The Commission issued the Directive 2003/30/EC to promote the use of biofuels while regarding NG no specific initiatives were taken to date, but the possibility of tax reduction is the same as for the biofuels: yet it expects from NG the largest single contribution to the 2020 objectives. Apparently the European Commission wanted to see how things were going to develop for NG as the result of the tax advantage.

| 1.9 | Five years after the Commission communication and three years after the Directive on alternative fuels, progresses are below expectations because Member States are not on track to meet the scheduled targets. This is possibly one of the reasons that the European Commission recently issued a Communication on ‘Biomass action Plan’ (3). |
| --- | --- |

1.9

Five years after the Commission communication and three years after the Directive on alternative fuels, progresses are below expectations because Member States are not on track to meet the scheduled targets. This is possibly one of the reasons that the European Commission recently issued a Communication on ‘Biomass action Plan’ (3).

| 1.9.1 | The plan refers to biomass use in transport, electricity and heating. Main action proposed on the transport sector are: i) new EU legislation on the use of renewable energies; ii) a possible revision of biofuels directive, during 2006, which may set national targets for the share of biofuels and would compel fuel suppliers to use biofuels; iii) Member States national biomass action plans; iv) research into second generation biofuels (from wood and waste). |
| --- | --- |

1.9.1

The plan refers to biomass use in transport, electricity and heating. Main action proposed on the transport sector are: i) new EU legislation on the use of renewable energies; ii) a possible revision of biofuels directive, during 2006, which may set national targets for the share of biofuels and would compel fuel suppliers to use biofuels; iii) Member States national biomass action plans; iv) research into second generation biofuels (from wood and waste).

| 1.9.2 | According to the Commission expectations the plan should reduce oil imports by 8 %, prevent greenhouse gas emissions of 209 million tonnes CO2-equivalent with a direct cost of EUR 9 billion per year. Six billions out of nine will be devoted to transport biofuels, which are much more expensive than petroleum derived fuels (e.g. to be competitive biodiesel needs an oil price of about $95/barrel while bioethanol needs a price of about $115/barrel (4)). |
| --- | --- |

1.9.2

According to the Commission expectations the plan should reduce oil imports by 8 %, prevent greenhouse gas emissions of 209 million tonnes CO2-equivalent with a direct cost of EUR 9 billion per year. Six billions out of nine will be devoted to transport biofuels, which are much more expensive than petroleum derived fuels (e.g. to be competitive biodiesel needs an oil price of about $95/barrel while bioethanol needs a price of about $115/barrel (4)).

| 1.9.3 | The EESC warmly welcomes the Action Plan because it is in line with the present opinion aiming to spur the other European Institutions and Member States into giving more impulse to appropriate measures for the promotion of alternative fuels. |
| --- | --- |

1.9.3

The EESC warmly welcomes the Action Plan because it is in line with the present opinion aiming to spur the other European Institutions and Member States into giving more impulse to appropriate measures for the promotion of alternative fuels.

| 1.9.4 | The EESC also welcomes the latest communication of the Commission on ‘An EU strategy for biofuels’ (5) urging new drive to boost biofuels production. |
| --- | --- |

1.9.4

The EESC also welcomes the latest communication of the Commission on ‘An EU strategy for biofuels’ (5) urging new drive to boost biofuels production.

| 1.10 | As a matter of fact, whilst biofuels and NG can expand on the market thanks to engine technology and fuel distribution system, and this expansion makes it possible to displace petroleum-derived fuels to the envisaged extent, long term alternatives such as hydrogen are the object of development efforts: in other words, biofuels and NG are a bridge to the sustainable fuel mix of the 2020 and beyond. |
| --- | --- |

1.10

As a matter of fact, whilst biofuels and NG can expand on the market thanks to engine technology and fuel distribution system, and this expansion makes it possible to displace petroleum-derived fuels to the envisaged extent, long term alternatives such as hydrogen are the object of development efforts: in other words, biofuels and NG are a bridge to the sustainable fuel mix of the 2020 and beyond.

| 1.11 | The EESC recommends that binding measures are adopted by the European Commission in case the revision of Biofuel directive foreseen in 2006 shows that Member States action was not sufficient to attain the expected targets both for biofuels and for NG. |
| --- | --- |

1.11

The EESC recommends that binding measures are adopted by the European Commission in case the revision of Biofuel directive foreseen in 2006 shows that Member States action was not sufficient to attain the expected targets both for biofuels and for NG.

| 1.12 | The EESC recognises that greater use of NG as an automotive fuel is a sensible alternative to petroleum until such a time as hydrogen technology is applicable. The European Commission and the Member States should therefore make repeated references in their communication strategies to this technology — which is already economically viable now — and also set a good example when they acquire vehicles themselves. |
| --- | --- |

1.12

The EESC recognises that greater use of NG as an automotive fuel is a sensible alternative to petroleum until such a time as hydrogen technology is applicable. The European Commission and the Member States should therefore make repeated references in their communication strategies to this technology — which is already economically viable now — and also set a good example when they acquire vehicles themselves.

2.   Reasons

| 2.1 | In November 2001 the European Commission issued a communication concerning alternative fuels for road transport (6) which followed up on the Green Paper Towards a European Strategy for the Security of Energy Supply
   (7) and on the White Paper European Transport Policy for 2010
   (8). The November 2001 communication contained an action plan in two points. |
| --- | --- |

2.1

In November 2001 the European Commission issued a communication concerning alternative fuels for road transport (6) which followed up on the Green Paper Towards a European Strategy for the Security of Energy Supply
   (7) and on the White Paper European Transport Policy for 2010
   (8). The November 2001 communication contained an action plan in two points.

| 2.2 | The first point aimed at expanding the use of biofuels following a twofold approach. On the one hand it envisaged to put on the market an ever increasing quantity of biofuel blended gasoline and diesel in order to pave the way to a mandated biofuels blending. On the other hand it proposed tax incentives in order to make biofuels financially attractive, also including NG in this proposal. The EECS expressed its opinion on this first point on 25 April 2002 (9). Eventually both proposals were adopted (10). |
| --- | --- |

2.2

The first point aimed at expanding the use of biofuels following a twofold approach. On the one hand it envisaged to put on the market an ever increasing quantity of biofuel blended gasoline and diesel in order to pave the way to a mandated biofuels blending. On the other hand it proposed tax incentives in order to make biofuels financially attractive, also including NG in this proposal. The EECS expressed its opinion on this first point on 25 April 2002 (9). Eventually both proposals were adopted (10).

| 2.3 | The second point called for an Alternative Fuels Contact Group whose charter was to give the Commission advices on market development of alternative fuels at large, and of Natural Gas (NG) and hydrogen (H2) in particular. The Contact Group's study was to cover the next 20 years in line with the Commission's objective that is to grow the alternative fuels market to the extent that by 2020 they can substitute for one fifth (20 %) of the petroleum derived fuels. |
| --- | --- |

2.3

The second point called for an Alternative Fuels Contact Group whose charter was to give the Commission advices on market development of alternative fuels at large, and of Natural Gas (NG) and hydrogen (H2) in particular. The Contact Group's study was to cover the next 20 years in line with the Commission's objective that is to grow the alternative fuels market to the extent that by 2020 they can substitute for one fifth (20 %) of the petroleum derived fuels.

| 2.4 | In December 2003 the Contact Group issued a thorough and factual report (11). |
| --- | --- |

2.4

In December 2003 the Contact Group issued a thorough and factual report (11).

3.   The 2020 scenario and how to get there

| 3.1 | In the Commission's plan biofuels, NG, and H2 are the three alternative fuels which are expected to play the major role in meeting the 20 % substitution objective as follows:









  Year | Biofuels | Natural gas | Hydrogen | Total |
| --- | --- | --- | --- | --- | --- |
| 2005 | 2 | | | 2 |
| 2010 | 6 | 2 | | 8 |
| 2015 | 7 | 5 | 2 | 14 |
| 2020 | 8 | 10 | 5 | 23 |

3.1

In the Commission's plan biofuels, NG, and H2 are the three alternative fuels which are expected to play the major role in meeting the 20 % substitution objective as follows:

Year

Biofuels

Natural gas

Hydrogen

Total

2005

2

2

2010

6

2

8

2015

7

5

2

14

2020

8

10

5

23

| 3.1.1 | Biofuels are to contribute by 2 % since 2005 and then they are to continue growing up to 8 % by 2020. Any fuel derived from biomass is known generically as a biofuel. The main candidates for transport are currently: |
| --- | --- |

3.1.1

Biofuels are to contribute by 2 % since 2005 and then they are to continue growing up to 8 % by 2020. Any fuel derived from biomass is known generically as a biofuel. The main candidates for transport are currently:

| 3.1.1.1 | Bioethanol, that is ethanol (EtOH) also known as ethyl alcohol, made from starchy materials like cereals and sugar beet by fermentation. It is used either neat as gasoline substitute, e.g. Brazil, but then it requires dedicated engines; or it is added to the gasoline pool either neat or under the form of the synthetic chemical ETBE (Ethyl-Tertiary-Butyl-Ether). According to the specifications which define the gasoline grade, ethanol can be mixed with gasoline up to 5 % without any engine modification. |
| --- | --- |

3.1.1.1

Bioethanol, that is ethanol (EtOH) also known as ethyl alcohol, made from starchy materials like cereals and sugar beet by fermentation. It is used either neat as gasoline substitute, e.g. Brazil, but then it requires dedicated engines; or it is added to the gasoline pool either neat or under the form of the synthetic chemical ETBE (Ethyl-Tertiary-Butyl-Ether). According to the specifications which define the gasoline grade, ethanol can be mixed with gasoline up to 5 % without any engine modification.

| 3.1.1.2 | Biodiesel, a diesel alternative made from a range of vegetable oils by transesterification and known as FAME (Fatty Acid Methyl Ester). The most widely used biodiesel in Europe is rape-seed methyl ester (RME). The CEN (Comité Européen de Normalization) defined a FAME standard and product meeting the CEN specifications is accepted up to 5 % in diesel vehicles already. Production of FAME from crop-based sources such as rape-seed has until recently been sufficient to meet demand, taking advantage of specific fiscal incentives. In the November 2001 communication the Commission expressed concerns with respect to large-scale production of crop-based fuels and its feasibility (12). |
| --- | --- |

3.1.1.2

Biodiesel, a diesel alternative made from a range of vegetable oils by transesterification and known as FAME (Fatty Acid Methyl Ester). The most widely used biodiesel in Europe is rape-seed methyl ester (RME). The CEN (Comité Européen de Normalization) defined a FAME standard and product meeting the CEN specifications is accepted up to 5 % in diesel vehicles already. Production of FAME from crop-based sources such as rape-seed has until recently been sufficient to meet demand, taking advantage of specific fiscal incentives. In the November 2001 communication the Commission expressed concerns with respect to large-scale production of crop-based fuels and its feasibility (12).

| 3.1.1.3 | Biogas, i.e. methane rich gas produced from organic matter including manure, waste-water sludge, or municipal solid waste by anaerobic fermentation, is akin to NG. Biogas has to be upgraded to NG quality in order to be used in normal vehicles designed to use NG. There are more than 5 000 vehicles in Sweden running on biogas. The Swedish experience shows that methane, either biogas or NG, is an economical sustainable fuel with the potential to drastically reduce emissions in urban transport. |
| --- | --- |

3.1.1.3

Biogas, i.e. methane rich gas produced from organic matter including manure, waste-water sludge, or municipal solid waste by anaerobic fermentation, is akin to NG. Biogas has to be upgraded to NG quality in order to be used in normal vehicles designed to use NG. There are more than 5 000 vehicles in Sweden running on biogas. The Swedish experience shows that methane, either biogas or NG, is an economical sustainable fuel with the potential to drastically reduce emissions in urban transport.

| 3.2 | With respect to Natural Gas the European Commission was not so active as the NG contribution to the 2020 target would have requested and no specific proposal was presented to date. |
| --- | --- |

3.2

With respect to Natural Gas the European Commission was not so active as the NG contribution to the 2020 target would have requested and no specific proposal was presented to date.

| 3.3 | The lack of Commission's initiative is troublesome insofar as the Report issued by the Commission appointed Alternative Fuels Contact Group, based on a thorough Well-to-Wheels Analysis (WTW)of alternative fuels, came to the conclusion that: ‘natural gas is the only alternative fuel with potential for significant market share well above 5 % by 2020 which could potentially compete with conventional fuels in terms of the economic of supply in a mature market scenario’. |
| --- | --- |

3.3

The lack of Commission's initiative is troublesome insofar as the Report issued by the Commission appointed Alternative Fuels Contact Group, based on a thorough Well-to-Wheels Analysis (WTW)of alternative fuels, came to the conclusion that: ‘natural gas is the only alternative fuel with potential for significant market share well above 5 % by 2020 which could potentially compete with conventional fuels in terms of the economic of supply in a mature market scenario’.

| 3.4 | In the November 2001 communication the Commission entrusted NG with the largest single contribution to the alternative fuels 2020 objective. The Contact Group concurred for the following reasons: |
| --- | --- |

3.4

In the November 2001 communication the Commission entrusted NG with the largest single contribution to the alternative fuels 2020 objective. The Contact Group concurred for the following reasons:

| 3.4.1 | NG meets the need for improved security of supply not only through fuel diversification, because it is not oil-dependent, but also because the demand is not limited by primary supply. Whereas the expansion of biofuel could become supply-limited eventually, a share of 10 % in road transport, i.e. the Commission's objective for 2020, would represent about 5 % of the EU total NG consumption expected at that time. This remark emphasises the need of a synergistic development for all three alternative fuels. |
| --- | --- |

3.4.1

NG meets the need for improved security of supply not only through fuel diversification, because it is not oil-dependent, but also because the demand is not limited by primary supply. Whereas the expansion of biofuel could become supply-limited eventually, a share of 10 % in road transport, i.e. the Commission's objective for 2020, would represent about 5 % of the EU total NG consumption expected at that time. This remark emphasises the need of a synergistic development for all three alternative fuels.

| 3.4.2 | NG helps to achieve the strategic objective of reducing GHG emission. It is obvious from the chemical structure of methane (CH4) that NG contains less carbon than other fossil fuels, e.g. gasoline and diesel. The WTW analysis demonstrated that GHG emission from a Compressed Natural Gas Vehicle (CNGV) are below those of a gasoline fuelled vehicle and, with today's technology, comparable to those of a diesel vehicle. It is expected that as a result of progresses in CNGV engines technology, GHG emission will be better than diesel in 2010 and in the years after. |
| --- | --- |

3.4.2

NG helps to achieve the strategic objective of reducing GHG emission. It is obvious from the chemical structure of methane (CH4) that NG contains less carbon than other fossil fuels, e.g. gasoline and diesel. The WTW analysis demonstrated that GHG emission from a Compressed Natural Gas Vehicle (CNGV) are below those of a gasoline fuelled vehicle and, with today's technology, comparable to those of a diesel vehicle. It is expected that as a result of progresses in CNGV engines technology, GHG emission will be better than diesel in 2010 and in the years after.

| 3.4.3 | Besides GHG emission, NG as a motor vehicle fuel brings about additional environmental benefit in terms of exhaust emissions. NG vehicles in use today have very low emissions of Nitrogen Oxides (NOx) and do not contribute to produce Particulate Matters (PM) which are a critical issue. Stringent European Union limits on airborne particles are accordingly a good thing for NG fuelled vehicles. NG fuelled city buses have proved to be a viable form of urban transportation and the European Commission has helped to boost the introduction of model vehicles by providing financial support. The urban environment could easily be improved by enforcing the use of NG in bus fleets ad garbage collection trucks, as part of a sound ‘green procurement plan’. |
| --- | --- |

3.4.3

Besides GHG emission, NG as a motor vehicle fuel brings about additional environmental benefit in terms of exhaust emissions. NG vehicles in use today have very low emissions of Nitrogen Oxides (NOx) and do not contribute to produce Particulate Matters (PM) which are a critical issue. Stringent European Union limits on airborne particles are accordingly a good thing for NG fuelled vehicles. NG fuelled city buses have proved to be a viable form of urban transportation and the European Commission has helped to boost the introduction of model vehicles by providing financial support. The urban environment could easily be improved by enforcing the use of NG in bus fleets ad garbage collection trucks, as part of a sound ‘green procurement plan’.

| 3.4.4 | One important step in this direction could be done with the recently proposed directive on the promotion of clean transport vehicles (13). Once approved, this directive will compel Member States to reserve each year a 25 % quota of the heavy duty vehicles (above 3.5 t) purchased or leased by public bodies, to vehicles fuelled with alternative fuels meeting the EEV standards (14) The EEV (Enhanced Environmentally friendly vehicles) standards apply to vehicles fuelled with biofuels, CNG, LPG, hydrogen as well as to hybrid and electric vehicles. |
| --- | --- |

3.4.4

One important step in this direction could be done with the recently proposed directive on the promotion of clean transport vehicles (13). Once approved, this directive will compel Member States to reserve each year a 25 % quota of the heavy duty vehicles (above 3.5 t) purchased or leased by public bodies, to vehicles fuelled with alternative fuels meeting the EEV standards (14) The EEV (Enhanced Environmentally friendly vehicles) standards apply to vehicles fuelled with biofuels, CNG, LPG, hydrogen as well as to hybrid and electric vehicles.

| 3.5 | Hydrogen does not exist in nature in free form. What exist in nature are chemical compounds which comprise hydrogen, e.g. water and hydrocarbons. Water (H2O) is made up with 11 % H2 by weight (2/18). Gasoline and diesel fuel are a mixture of hydrocarbons. Methane, a hydrocarbon, is the main constituent of NG and of biogas.
  Since H2 does not exist in nature, it must be made. Indeed it is commercially produced for use in the chemical, petrochemical, petroleum refining and other industries.
  In order to produce hydrogen, e.g. from water by electrolysis or from NG by steam-reforming, energy needs to be applied, namely electricity in electrolysis and heat in steam-reforming.
  WTT (Well To Tank) analysis is instrumental in ranking the pathways from feedstock to H2 according to energy consumption and GHG emission.
  For a long time H2 is an industrial commodity which is produced and marketed by the industrial gases' companies or is produced for captive use in oil refineries. However its use as transport fuel is in its infancy. For this reason the objective of a 2 % substitution in 2015 with further growth to 5 % by 2020, is quite challenging. |
| --- | --- |

3.5

Hydrogen does not exist in nature in free form. What exist in nature are chemical compounds which comprise hydrogen, e.g. water and hydrocarbons. Water (H2O) is made up with 11 % H2 by weight (2/18). Gasoline and diesel fuel are a mixture of hydrocarbons. Methane, a hydrocarbon, is the main constituent of NG and of biogas.

Since H2 does not exist in nature, it must be made. Indeed it is commercially produced for use in the chemical, petrochemical, petroleum refining and other industries.

In order to produce hydrogen, e.g. from water by electrolysis or from NG by steam-reforming, energy needs to be applied, namely electricity in electrolysis and heat in steam-reforming.

WTT (Well To Tank) analysis is instrumental in ranking the pathways from feedstock to H2 according to energy consumption and GHG emission.

For a long time H2 is an industrial commodity which is produced and marketed by the industrial gases' companies or is produced for captive use in oil refineries. However its use as transport fuel is in its infancy. For this reason the objective of a 2 % substitution in 2015 with further growth to 5 % by 2020, is quite challenging.

| 3.5.1 | The Contact Group identified several issues with respect to an expanded use of H2 as transport fuel, such as:






  i) | liquid H2, i.e. at 252°C below freezing, in cryogenic tanks, e.g. aboard an Internal Combustion Engine (ICE) vehicle, or gaseous H2 e.g. compressed in bottles at 700 atmospheres aboard a fuel-cell vehicle; |
| --- | --- | --- |

3.5.1

The Contact Group identified several issues with respect to an expanded use of H2 as transport fuel, such as:

i)

liquid H2, i.e. at 252°C below freezing, in cryogenic tanks, e.g. aboard an Internal Combustion Engine (ICE) vehicle, or gaseous H2 e.g. compressed in bottles at 700 atmospheres aboard a fuel-cell vehicle;

| ii) | centralised H2 production in large capacity units which can be optimised with respect to energy consumption, or distributed production in small units at the filling station; |
| --- | --- |

ii)

centralised H2 production in large capacity units which can be optimised with respect to energy consumption, or distributed production in small units at the filling station;

| iii) | as fuel-cell vehicles show their best efficiency in the mid-power range, perhaps it would be advisable to distinguish between fuel-cell vehicles for operation, at reduced power, e.g. urban traffic, and ICEs for long haul, i.e. long intervals in which the engine has to deliver full power; |
| --- | --- |

iii)

as fuel-cell vehicles show their best efficiency in the mid-power range, perhaps it would be advisable to distinguish between fuel-cell vehicles for operation, at reduced power, e.g. urban traffic, and ICEs for long haul, i.e. long intervals in which the engine has to deliver full power;

| iv) | other points of concern pertain to the technology of the fuel cell itself, i.e. the device in which H2 releases the electrons flow that is the electrical current which drives the electrical motor which in turn causes the revolution of the wheels. These subjects are beyond the scope of this opinion. |
| --- | --- |

iv)

other points of concern pertain to the technology of the fuel cell itself, i.e. the device in which H2 releases the electrons flow that is the electrical current which drives the electrical motor which in turn causes the revolution of the wheels. These subjects are beyond the scope of this opinion.

| 3.5.2 | In summary alternative fuel H2 offers a twofold challenge: i) the fuel distribution; and ii) the power train. It makes sense that an ever-increasing amount of R&D money has been invested by the EU in hydrogen and fuel cells by way of FP5 and FP6. Currently, under the FP6, hydrogen and fuel cells research is placed within the sustainable energy system sub-priority, with a total budget of EUR 890 million. The European Parliament during the current discussions on the next FP7 is proposing to reposition the issue in a new key thematic priority on ‘all existing and future non CO2 emitting energy sources’ with even larger resources. The environmental benefits resulting from the fact that water and water only is produced during the oxidation of H2 in a fuel cell, justify the effort. |
| --- | --- |

3.5.2

In summary alternative fuel H2 offers a twofold challenge: i) the fuel distribution; and ii) the power train. It makes sense that an ever-increasing amount of R&D money has been invested by the EU in hydrogen and fuel cells by way of FP5 and FP6. Currently, under the FP6, hydrogen and fuel cells research is placed within the sustainable energy system sub-priority, with a total budget of EUR 890 million. The European Parliament during the current discussions on the next FP7 is proposing to reposition the issue in a new key thematic priority on ‘all existing and future non CO2 emitting energy sources’ with even larger resources. The environmental benefits resulting from the fact that water and water only is produced during the oxidation of H2 in a fuel cell, justify the effort.

4.   Conclusions

| 4.1 | The European Commission's November 2001 objective, namely 20 % alternative fuels by 2020, rests on two established technologies/products: biofuels and NG, and on one promising development, i.e. H2 and fuel cells. |
| --- | --- |

4.1

The European Commission's November 2001 objective, namely 20 % alternative fuels by 2020, rests on two established technologies/products: biofuels and NG, and on one promising development, i.e. H2 and fuel cells.

| 4.2 | Biofuels and NG — notwithstanding some hurdles — are available here and now and have the qualities to take on the challenge both with respect to fuel distribution know-how and with respect to engine technology. |
| --- | --- |

4.2

Biofuels and NG — notwithstanding some hurdles — are available here and now and have the qualities to take on the challenge both with respect to fuel distribution know-how and with respect to engine technology.

| 4.2.1 | Because of its fossil origin, i.e. it is not ‘renewable’, NG should not be considered as a full alternative fuel; nevertheless today it represents one of the most realistic options to replace fuels derived from crude oil, indispensable to meet the 20 % substitution in 2020. The reasons why NG may play a major role as alternative fuels are:






  — | reserves of NG are ample and will last more than crude oil; |
| --- | --- | --- |

4.2.1

Because of its fossil origin, i.e. it is not ‘renewable’, NG should not be considered as a full alternative fuel; nevertheless today it represents one of the most realistic options to replace fuels derived from crude oil, indispensable to meet the 20 % substitution in 2020. The reasons why NG may play a major role as alternative fuels are:

—

reserves of NG are ample and will last more than crude oil;

| — | In spite of recent troubles geo-political distribution ensures a relatively stable market by comparison with oil; |
| --- | --- |

—

In spite of recent troubles geo-political distribution ensures a relatively stable market by comparison with oil;

| — | it has the highest H/C ratio in hydrocarbons with the lowest CO2 emission; |
| --- | --- |

—

it has the highest H/C ratio in hydrocarbons with the lowest CO2 emission;

| — | NG can be a pathway to Hydrogen. |
| --- | --- |

—

NG can be a pathway to Hydrogen.

A strong NG grid will act eventually as facilitator to local small scale Hydrogen facilities. The present barriers to the diffusion of NG vehicles are mostly due to the insufficient and not uniform distribution network.

| 4.2.2 | Regarding biofuels they combine the positive environmental performance of NG with the benefit of being a renewable energy source, reducing the dependency from the fossil fuels. Moreover, even if it is not clearly proven, a real chance exists to increase or at least not to lose further jobs in the agricultural sector. Forestry resources can contribute to biofuels production, e.g. by way of black liquor gasification and by fermentation of ligno-cellulosic biomass. Both technologies are now at the pilot plant stage and their contribution to biofuels production will make itself felt in the medium-term future. However, having in mind the current demand of fuel for transport needs (15), a huge increase of biofuels use must be evaluated in the light of collateral environment effect:






  — | Crops for biodiesel represent a niche production, unable to cover the EU demand of fuel. |
| --- | --- | --- |

4.2.2

Regarding biofuels they combine the positive environmental performance of NG with the benefit of being a renewable energy source, reducing the dependency from the fossil fuels. Moreover, even if it is not clearly proven, a real chance exists to increase or at least not to lose further jobs in the agricultural sector. Forestry resources can contribute to biofuels production, e.g. by way of black liquor gasification and by fermentation of ligno-cellulosic biomass. Both technologies are now at the pilot plant stage and their contribution to biofuels production will make itself felt in the medium-term future. However, having in mind the current demand of fuel for transport needs (15), a huge increase of biofuels use must be evaluated in the light of collateral environment effect:

—

Crops for biodiesel represent a niche production, unable to cover the EU demand of fuel.

| — | In order to meet the 2010 target of 6 % share, up to 13 % of the total agricultural area in the EU 25 will need to be devoted to biofuel crops. This could lead to onerous measures in order to protect lands, groundwater and biodiversity, as well as to prevent further greenhouse gases emissions (16). Imports would only move the problem to other countries, increasing maritime traffic. |
| --- | --- |

—

In order to meet the 2010 target of 6 % share, up to 13 % of the total agricultural area in the EU 25 will need to be devoted to biofuel crops. This could lead to onerous measures in order to protect lands, groundwater and biodiversity, as well as to prevent further greenhouse gases emissions (16). Imports would only move the problem to other countries, increasing maritime traffic.

| 4.2.3 | It appears as if the Commission Communication issued on 7 February 2006 intends to tackle these problems and uncertainties (17). Several measures to promote and support the production and use of biofuels both in EU and non EU countries have been pulled together. The EESC will follow with great interest the implementation of the announced strategy. |
| --- | --- |

4.2.3

It appears as if the Commission Communication issued on 7 February 2006 intends to tackle these problems and uncertainties (17). Several measures to promote and support the production and use of biofuels both in EU and non EU countries have been pulled together. The EESC will follow with great interest the implementation of the announced strategy.

| 4.3 | Meeting the 2020 alternative fuels objective requires a synergistic approach, namely all three fuels have to receive attention simultaneously. |
| --- | --- |

4.3

Meeting the 2020 alternative fuels objective requires a synergistic approach, namely all three fuels have to receive attention simultaneously.

| 4.4 | It is a reasonable expectation that the effort related to the market development of those alternative fuels which are commercially proven is going to meet fewer hurdles because both know-how and technology are available here and now. |
| --- | --- |

4.4

It is a reasonable expectation that the effort related to the market development of those alternative fuels which are commercially proven is going to meet fewer hurdles because both know-how and technology are available here and now.

| 4.5 | The European Commission should get together with industry to consider why the measures adopted until now are not sufficient for the diffusion of NG as an automotive fuel. In our opinion a minimum target should be established by each Member State, taking into account the specific national situation. |
| --- | --- |

4.5

The European Commission should get together with industry to consider why the measures adopted until now are not sufficient for the diffusion of NG as an automotive fuel. In our opinion a minimum target should be established by each Member State, taking into account the specific national situation.

| 4.6 | This proposal should also review the technical and safety requirements for CNG filling stations. In many cases this requirements are quite old and do not take into account recent developments. Such a revision may definitely help a wider diffusion of CNG filling stations, together with the simplification of bureaucratic procedures. Very often the authorisations for building a CNG filling station are unnecessary complex and time consuming. |
| --- | --- |

4.6

This proposal should also review the technical and safety requirements for CNG filling stations. In many cases this requirements are quite old and do not take into account recent developments. Such a revision may definitely help a wider diffusion of CNG filling stations, together with the simplification of bureaucratic procedures. Very often the authorisations for building a CNG filling station are unnecessary complex and time consuming.

| 4.7 | As already mentioned in point 4.2.1 above, such a programme will also facilitate the transition to Hydrogen Vehicles tomorrow. As a matter of fact, technology advances with respect to on board fuel storage will be instrumental for compressed Hydrogen too. The same is true for Hydrogen fuelling, metering and station design. Any investment in NG technology is a step forward for Hydrogen too. |
| --- | --- |

4.7

As already mentioned in point 4.2.1 above, such a programme will also facilitate the transition to Hydrogen Vehicles tomorrow. As a matter of fact, technology advances with respect to on board fuel storage will be instrumental for compressed Hydrogen too. The same is true for Hydrogen fuelling, metering and station design. Any investment in NG technology is a step forward for Hydrogen too.

| 4.8 | The prompt development of the commercially proven alternative fuels can provide a fallback position in the event that an unforeseen delay hits the ambitious H2 development schedule. |
| --- | --- |

4.8

The prompt development of the commercially proven alternative fuels can provide a fallback position in the event that an unforeseen delay hits the ambitious H2 development schedule.

| 4.9 | Last but not least, EESC reiterates once again that a real progress towards greener cars with lower fuel consumption is not only linked to the development of alternative fuels but can also be obtained by fighting congestion with better infrastructures, promoting collective transport, and, even more important, changing consumer's behaviour. The present SUVs (Sport Utility Vehicles) fad shows the consumers are not ready to change. Most of these vehicles use up large amounts of fuel and CO2 emissions are commensurate to fuel consumption. The raising demand for such cars makes it difficult for car makers to commit towards greener cars. |
| --- | --- |

4.9

Last but not least, EESC reiterates once again that a real progress towards greener cars with lower fuel consumption is not only linked to the development of alternative fuels but can also be obtained by fighting congestion with better infrastructures, promoting collective transport, and, even more important, changing consumer's behaviour. The present SUVs (Sport Utility Vehicles) fad shows the consumers are not ready to change. Most of these vehicles use up large amounts of fuel and CO2 emissions are commensurate to fuel consumption. The raising demand for such cars makes it difficult for car makers to commit towards greener cars.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  Promoting renewable energy: Means of actions and financing instruments (OJ C 108, 30.4.04); Nuclear fusion (OJ C 302, 7.12.04); Prospects for traditional energy sources (OJ C 28, 3.2.06); Renewable energy sources (OJ C 65, 17.3.2006); Energy efficiency (OJ C 110, 9.5.2006).

1

(2)  Energy supply of the EU: strategy for an optimal energy mix (CESE TEN/227).

2

(3)  COM(2005) 628 final on 7 December 2005.

3

(4)  Footnote No 16 of ‘Biomass action Plan’ COM(2005) 628 of 7 December 2005.

4

(5)  COM(2006) 34 final of 7 February 2006.

5

(6)  COM(2001) 547.

6

(7)  COM(2000) 769.

7

(8)  COM(2001) 370.

8

(9)  OJ C 149, 21.6.2002.

9

(10)  Directives 2003/30/EC (OJ L 123/42 of 8 May 2003) and 2003/96/EC (OJ L 283/51 of 27 October 2003).

10

(11)  Report of the Alternative Fuels Contact Group, Market Development of alternative fuels, December 2003.

11

(12)  COM(2001) 547: Heading Agriculture policy under paragraph 2.2.

12

Agriculture policy

(13)  COM(2005) 634 final of 21 December 2005.

13

(14)  See directive 2005/55/EC.

14

(15)  Biofuels currently represent around 0.6 % only of diesel and gasoline consumption in EU.

15

(16)  European Environment Agency (EEA 2004/04). Further studies are trying to assess how much biomass can Europe use without harming the environment.

16

(17)  ‘An EU strategy for biofuels’ COM(2006) 34 final.

17

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/80 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/80

---

Opinion of the European Economic and Social Committee on the Proposal for a Council Directive on passenger car related taxes

(COM(2005) 261 final — 2005/0130 (CNS))

(2006/C 195/21)

On 6 September 2005 the Council decided to consult the European Economic and Social Committee, under Article 262 of the Treaty establishing the European Community, on the

The Section for Economic and Monetary Union and Economic and Social Cohesion, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 23 March 2006. The rapporteur was Mr Ranocchiari.

At its 427th plenary session, held on 17 and 18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 67 votes to 4 with 3 abstentions.

1.   Conclusions and recommendations

| 1.1 | The EESC fully supports the proposal for a directive, which sets out to improve the functioning of the internal market and, at the same time, to promote environmental sustainability. |
| --- | --- |

1.1

The EESC fully supports the proposal for a directive, which sets out to improve the functioning of the internal market and, at the same time, to promote environmental sustainability.

| 1.2 | In particular, the EESC welcomes the use for the first time of the third pillar (fiscal measures) to reduce carbon dioxide (CO2) emissions. |
| --- | --- |

1.2

In particular, the EESC welcomes the use for the first time of the third pillar (fiscal measures) to reduce carbon dioxide (CO2) emissions.

| 1.3 | The EESC also agrees with the European Commission's assessment of the beneficial effects that the proposal may have on free movement for citizens and on the car industry. |
| --- | --- |

1.3

The EESC also agrees with the European Commission's assessment of the beneficial effects that the proposal may have on free movement for citizens and on the car industry.

| 1.4 | The EESC recognises that, since the proposal concerns fiscal matters, which are primarily in the hands of the Member States, the European Commission could not apply the principle of subsidiarity in a broader or more cogent way than is done in the proposal. |
| --- | --- |

1.4

The EESC recognises that, since the proposal concerns fiscal matters, which are primarily in the hands of the Member States, the European Commission could not apply the principle of subsidiarity in a broader or more cogent way than is done in the proposal.

| 1.5 | However, a number of aspects not covered by the proposal could give rise to some difficulties in transposing the directive, with the risk that application might vary between Member States. In order to reduce this risk, the Commission will also have to resolve some technical issues, that the proposal fails to clarify, in good time. |
| --- | --- |

1.5

However, a number of aspects not covered by the proposal could give rise to some difficulties in transposing the directive, with the risk that application might vary between Member States. In order to reduce this risk, the Commission will also have to resolve some technical issues, that the proposal fails to clarify, in good time.

| 1.6 | While endorsing the objectives of the draft directive, the EESC believes that they will only be achieved if the Member States coordinate their interpretation of the directive's guidelines and recommendations. Otherwise, there is a danger that fragmentation of the single market will worsen rather than diminish, as the proposal intends. |
| --- | --- |

1.6

While endorsing the objectives of the draft directive, the EESC believes that they will only be achieved if the Member States coordinate their interpretation of the directive's guidelines and recommendations. Otherwise, there is a danger that fragmentation of the single market will worsen rather than diminish, as the proposal intends.

| 1.7 | The EESC therefore calls upon the European Commission not only to carefully monitor the directive's implementing provisions, as it usually does, but also to carry out on-going comparison in cooperation with the Member States in order to ensure that the new car taxation system is implemented in a coordinated way. |
| --- | --- |

1.7

The EESC therefore calls upon the European Commission not only to carefully monitor the directive's implementing provisions, as it usually does, but also to carry out on-going comparison in cooperation with the Member States in order to ensure that the new car taxation system is implemented in a coordinated way.

| 1.8 | The EESC also trusts that following this first, significant step, further progress can be made in the near future towards a taxation system based primarily, if not exclusively on the car use, rather than acquisition or possession. Only then will the ‘polluter pays principle’, which the EESC strongly upholds, be put into real practice. |
| --- | --- |

1.8

The EESC also trusts that following this first, significant step, further progress can be made in the near future towards a taxation system based primarily, if not exclusively on the car use, rather than acquisition or possession. Only then will the ‘polluter pays principle’, which the EESC strongly upholds, be put into real practice.

| 1.9 | Lastly, the EESC must once again stress the need for an integrated approach to enhanced environmental sustainability in road transport. Taxation, while undoubtedly an important instrument, must be accompanied by modernisation of infrastructure, promotion of public transport and, equally importantly, by an effective consumer education campaign aimed at more informed and environment-friendly choices. Therefore, it does not seem appropriate, for example, that the European Commission is encouraging the Member States to align taxation of diesel fuel for cars with that for petrol, without considering the fact that diesel cars emit less CO2 than petrol-driven ones. |
| --- | --- |

1.9

Lastly, the EESC must once again stress the need for an integrated approach to enhanced environmental sustainability in road transport. Taxation, while undoubtedly an important instrument, must be accompanied by modernisation of infrastructure, promotion of public transport and, equally importantly, by an effective consumer education campaign aimed at more informed and environment-friendly choices. Therefore, it does not seem appropriate, for example, that the European Commission is encouraging the Member States to align taxation of diesel fuel for cars with that for petrol, without considering the fact that diesel cars emit less CO2 than petrol-driven ones.

2.   Reasons

2.1   Background and context of the proposal

| 2.1.1 | The European Commission defines the car industry as one of the motors of the European economy, generating 7.5 % of the added value of manufacturing industry as a whole, and 3 % of GDP. It also makes a substantial EUR 35 billion contribution to the balance of trade and, last but not least, represents a major pool of employment, providing two million jobs directly and as many as 10 million indirectly. |
| --- | --- |

2.1.1

The European Commission defines the car industry as one of the motors of the European economy, generating 7.5 % of the added value of manufacturing industry as a whole, and 3 % of GDP. It also makes a substantial EUR 35 billion contribution to the balance of trade and, last but not least, represents a major pool of employment, providing two million jobs directly and as many as 10 million indirectly.

| 2.1.2 | The purchase and use of cars is therefore one of the main sources of income for the Member States, providing some EUR 340 billion, 8 % of total EU 15 tax revenue (1). |
| --- | --- |

2.1.2

The purchase and use of cars is therefore one of the main sources of income for the Member States, providing some EUR 340 billion, 8 % of total EU 15 tax revenue (1).

| 2.1.3 | These enormous sums derive basically from three specific taxes: registration tax (RT); annual circulation tax (ACT); and fuel taxes. Moreover, each Member State pursues its own tax policy in this area, giving rise to 25 different tax systems — in stark contrast with the aim of convergence, which is a prerequisite for the proper functioning of the single market. |
| --- | --- |

2.1.3

These enormous sums derive basically from three specific taxes: registration tax (RT); annual circulation tax (ACT); and fuel taxes. Moreover, each Member State pursues its own tax policy in this area, giving rise to 25 different tax systems — in stark contrast with the aim of convergence, which is a prerequisite for the proper functioning of the single market.

| 2.1.4 | Sixteen Member States (2) currently have a vehicle registration tax, while 18 apply ACT (3). The calculation criteria and tax base vary widely from country to country, particularly for registration taxes. For example, the tax for a 2000 cc vehicle ranges from 1 % of vehicle value in Italy to more than 170 % in Denmark. ACT vary from EUR 30 to some EUR 500 per vehicle. |
| --- | --- |

2.1.4

Sixteen Member States (2) currently have a vehicle registration tax, while 18 apply ACT (3). The calculation criteria and tax base vary widely from country to country, particularly for registration taxes. For example, the tax for a 2000 cc vehicle ranges from 1 % of vehicle value in Italy to more than 170 % in Denmark. ACT vary from EUR 30 to some EUR 500 per vehicle.

| 2.1.5 | Against this backdrop, the European Commission issued a communication to the Council and the European Parliament on car taxes (4) as far back as 2002. The communication outlined a strategy for revising the present system in order to promote approximation of national legislation and also incorporate environmental objectives. |
| --- | --- |

2.1.5

Against this backdrop, the European Commission issued a communication to the Council and the European Parliament on car taxes (4) as far back as 2002. The communication outlined a strategy for revising the present system in order to promote approximation of national legislation and also incorporate environmental objectives.

| 2.1.6 | As a result of the subsequent consultations over the intervening years with the Council and the European Parliament, as well as with the industry and other stakeholders, the Commission is now in a position to submit the present proposal for a directive. |
| --- | --- |

2.1.6

As a result of the subsequent consultations over the intervening years with the Council and the European Parliament, as well as with the industry and other stakeholders, the Commission is now in a position to submit the present proposal for a directive.

3.   The Commission proposal

| 3.1 | It should be pointed out that the Commission's proposal does not concern either VAT or fuel taxes, and involves a restructuring, rather than harmonisation, of tax levels, with the exception of the amounts of income. |
| --- | --- |

3.1

It should be pointed out that the Commission's proposal does not concern either VAT or fuel taxes, and involves a restructuring, rather than harmonisation, of tax levels, with the exception of the amounts of income.

| 3.2 | The proposal is built around three main elements: |
| --- | --- |

3.2

The proposal is built around three main elements:

| 3.2.1 | Abolition of registration taxes
  This is to be implemented gradually and progressively, achieving complete abolition over 10 years, in 2016. This gradual approach will grant those Member States which currently have RT a sufficient transitional period, to include the adoption of measures to make up for the loss of revenue, possibly through shifting the tax burden onto ACT. |
| --- | --- |

3.2.1

Abolition of registration taxes

This is to be implemented gradually and progressively, achieving complete abolition over 10 years, in 2016. This gradual approach will grant those Member States which currently have RT a sufficient transitional period, to include the adoption of measures to make up for the loss of revenue, possibly through shifting the tax burden onto ACT.

| 3.2.2 | Establishment of an RT and ACT refund system |
| --- | --- |

3.2.2

Establishment of an RT and ACT refund system

| 3.2.2.1 | The new system to be brought in under the directive would apply to cars registered in one Member State and subsequently exported or permanently transferred to another Member State or a non-EU country. |
| --- | --- |

3.2.2.1

The new system to be brought in under the directive would apply to cars registered in one Member State and subsequently exported or permanently transferred to another Member State or a non-EU country.

| 3.2.2.2 | This measure has a two-fold purpose: to prevent double payment of RT already collected on the car at the time of purchase, and to charge ACT according to actual use of the car within the Member State. |
| --- | --- |

3.2.2.2

This measure has a two-fold purpose: to prevent double payment of RT already collected on the car at the time of purchase, and to charge ACT according to actual use of the car within the Member State.

| 3.2.2.3 | The amount of registration tax to be refunded is directly related to the car's residual value, and is equivalent to the amount of the residual tax incorporated in its residual value. |
| --- | --- |

3.2.2.3

The amount of registration tax to be refunded is directly related to the car's residual value, and is equivalent to the amount of the residual tax incorporated in its residual value.

| 3.2.2.4 | The Member States are free to decide on the method for assessing vehicle residual values for RT reimbursement, provided the criteria adopted are transparent and objective. Car owners must be given the opportunity to challenge before an independent authority the decision of the Member State effecting the reimbursement. |
| --- | --- |

3.2.2.4

The Member States are free to decide on the method for assessing vehicle residual values for RT reimbursement, provided the criteria adopted are transparent and objective. Car owners must be given the opportunity to challenge before an independent authority the decision of the Member State effecting the reimbursement.

| 3.2.2.5 | With regard to ACT — which, given the tax criteria adopted in the 18 Member States which practice it, it would be more accurate to describe as an ownership tax — the draft directive confirms that such taxes may be levied in respect of a car only by the Member State in which that car is registered. The Member State of registration is deemed to be that where the car is permanently used either because of its owner's normal residence, or because of its use in that Member State for more than 185 days in any twelve months. It follows on from this that in the event of permanent transfer of the vehicle to another State, including a non-EU country, the owner should be refunded for the residual ACT, to be calculated in accordance with the pro rata temporis principle. |
| --- | --- |

3.2.2.5

With regard to ACT — which, given the tax criteria adopted in the 18 Member States which practice it, it would be more accurate to describe as an ownership tax — the draft directive confirms that such taxes may be levied in respect of a car only by the Member State in which that car is registered. The Member State of registration is deemed to be that where the car is permanently used either because of its owner's normal residence, or because of its use in that Member State for more than 185 days in any twelve months. It follows on from this that in the event of permanent transfer of the vehicle to another State, including a non-EU country, the owner should be refunded for the residual ACT, to be calculated in accordance with the pro rata temporis principle.

| 3.2.3 | Restructuring the tax base for RT and ACT to be totally or partially CO2 based |
| --- | --- |

3.2.3

Restructuring the tax base for RT and ACT to be totally or partially CO2 based

| 3.2.3.1 | The draft directive introduces a system for determining ACT and RT (for the transitional period) which is also, and increasingly, based on carbon dioxide emissions. |
| --- | --- |

3.2.3.1

The draft directive introduces a system for determining ACT and RT (for the transitional period) which is also, and increasingly, based on carbon dioxide emissions.

| 3.2.3.2 | It is to be introduced gradually and progressively: the total amount of ACT and RT revenue to generated by CO2 emission-based tax would be 25 % by 2008 and 50 % by 2010. |
| --- | --- |

3.2.3.2

It is to be introduced gradually and progressively: the total amount of ACT and RT revenue to generated by CO2 emission-based tax would be 25 % by 2008 and 50 % by 2010.

4.   General comments

| 4.1 | First of all, the EESC welcomes the European Commission's commitment to its dual objective: to improve the functioning of the single market, and to give greater impetus to the CO2 emission reduction strategy by means of taxation. It should be emphasised in this regard that the directive makes use, for the first time, of the ‘third (fiscal) pillar’ as set out in the Community strategy to reduce CO2 emissions and improve fuel economy (5). |
| --- | --- |

4.1

First of all, the EESC welcomes the European Commission's commitment to its dual objective: to improve the functioning of the single market, and to give greater impetus to the CO2 emission reduction strategy by means of taxation. It should be emphasised in this regard that the directive makes use, for the first time, of the ‘third (fiscal) pillar’ as set out in the Community strategy to reduce CO2 emissions and improve fuel economy (5).

| 4.2 | The EESC also takes a positive view of the beneficial effects the proposal should have for both consumers (6) and the European car industry.
  The objectives of the proposal are entirely acceptable, in that they set out to facilitate the following: |
| --- | --- |

4.2

The EESC also takes a positive view of the beneficial effects the proposal should have for both consumers (6) and the European car industry.

The objectives of the proposal are entirely acceptable, in that they set out to facilitate the following:

| 4.2.1 | the reduction, if not complete removal, of obstacles to free movement of EU citizens by significantly cutting the cost and length of administrative procedures for exporting or transferring cars between the Member States; |
| --- | --- |

4.2.1

the reduction, if not complete removal, of obstacles to free movement of EU citizens by significantly cutting the cost and length of administrative procedures for exporting or transferring cars between the Member States;

| 4.2.2 | a more competitive car industry in a more integrated internal market. Market fragmentation from the fiscal point of view currently exercises powerful pressure on final car prices, obliging car manufacturers to produce and sell different versions of the same model in the various Member States for purely tax-related reasons. This means that they are unable to exploit the economies of scale offered by a genuine internal market; at the same time, there are no benefits for consumers. Moreover, heavy registration taxes generally have a negative impact on the decision to buy a new car, slowing down the renewal of the car fleet towards less polluting and safer cars; |
| --- | --- |

4.2.2

a more competitive car industry in a more integrated internal market. Market fragmentation from the fiscal point of view currently exercises powerful pressure on final car prices, obliging car manufacturers to produce and sell different versions of the same model in the various Member States for purely tax-related reasons. This means that they are unable to exploit the economies of scale offered by a genuine internal market; at the same time, there are no benefits for consumers. Moreover, heavy registration taxes generally have a negative impact on the decision to buy a new car, slowing down the renewal of the car fleet towards less polluting and safer cars;

| 4.2.3 | improved environmental sustainability, since cars are a significant source of CO2 emissions. In this regard, it should be emphasised that the two deadlines laid down in the proposal for restructuring RT and ACT around carbon dioxide emissions are not coincidental, but are to some extent ‘emblematic’ — 2008 marks the beginning of the Kyoto commitment period, and the Council and European Parliament hope that CO2 emissions from new vehicles will be below 120 g per km by 2010. |
| --- | --- |

4.2.3

improved environmental sustainability, since cars are a significant source of CO2 emissions. In this regard, it should be emphasised that the two deadlines laid down in the proposal for restructuring RT and ACT around carbon dioxide emissions are not coincidental, but are to some extent ‘emblematic’ — 2008 marks the beginning of the Kyoto commitment period, and the Council and European Parliament hope that CO2 emissions from new vehicles will be below 120 g per km by 2010.

| 4.3 | The EESC is also convinced that the directive's objectives will only be met if the Member States interpret its guidelines and recommendations faithfully, with no variations which could expand the already excessive fragmentation of the market or, worse still, increase the tax burden on motorists. |
| --- | --- |

4.3

The EESC is also convinced that the directive's objectives will only be met if the Member States interpret its guidelines and recommendations faithfully, with no variations which could expand the already excessive fragmentation of the market or, worse still, increase the tax burden on motorists.

| 4.4 | Taxation is an extremely sensitive issue for which the Member States are competent, and on which the European Commission could not apply the principle of subsidiarity in a broader or more cogent way than is done in the proposal. |
| --- | --- |

4.4

Taxation is an extremely sensitive issue for which the Member States are competent, and on which the European Commission could not apply the principle of subsidiarity in a broader or more cogent way than is done in the proposal.

| 4.5 | The proposal, for example, provides for a structural change in taxation, the impact of which is neutral in terms of revenue, i.e. with no increase in the total amount of taxes. This means that the loss of tax revenue caused by abolishing RT can be compensated by a parallel increase of ACT by the same amount and, where necessary, by other fiscal measures permitted by the directive on taxation of energy products (7). |
| --- | --- |

4.5

The proposal, for example, provides for a structural change in taxation, the impact of which is neutral in terms of revenue, i.e. with no increase in the total amount of taxes. This means that the loss of tax revenue caused by abolishing RT can be compensated by a parallel increase of ACT by the same amount and, where necessary, by other fiscal measures permitted by the directive on taxation of energy products (7).

| 4.6 | The establishment of a direct link between car taxes and CO2 is only one aspect, albeit important, to be included in the global carbon dioxide reduction strategy. The strategy must be built with a holistic approach to the problem, ensuring its consistency with other Community policies. |
| --- | --- |

4.6

The establishment of a direct link between car taxes and CO2 is only one aspect, albeit important, to be included in the global carbon dioxide reduction strategy. The strategy must be built with a holistic approach to the problem, ensuring its consistency with other Community policies.

| 4.7 | In the light of the above, the EESC recommends that, in addition to the usual monitoring of national implementing provisions for the directive and their compliance with the directive itself, the European Commission should promote exchange of information with and between the Member States, with a greater frequency than the five-yearly timetable set for the report on the application of the directive. |
| --- | --- |

4.7

In the light of the above, the EESC recommends that, in addition to the usual monitoring of national implementing provisions for the directive and their compliance with the directive itself, the European Commission should promote exchange of information with and between the Member States, with a greater frequency than the five-yearly timetable set for the report on the application of the directive.

5.   Specific comments

| 5.1 | In the EESC's view, a number of other aspects of the proposal could prove problematic when transposing the directive, entailing the risk of divergences in application between the Member States. More specifically: |
| --- | --- |

5.1

In the EESC's view, a number of other aspects of the proposal could prove problematic when transposing the directive, entailing the risk of divergences in application between the Member States. More specifically:

| 5.1.1 | The progressive changes in taxation must be carried out in a balanced way in order to ensure that citizens who have bought a vehicle subject to RT are not penalised by a sudden and substantial increase in ACT. |
| --- | --- |

5.1.1

The progressive changes in taxation must be carried out in a balanced way in order to ensure that citizens who have bought a vehicle subject to RT are not penalised by a sudden and substantial increase in ACT.

| 5.1.2 | Use of the ‘CO2 component’ in taxation must be applied in a coordinated way between all the Member States, so as not to generate further market fragmentation. |
| --- | --- |

5.1.2

Use of the ‘CO2 component’ in taxation must be applied in a coordinated way between all the Member States, so as not to generate further market fragmentation.

| 5.2 | In this connection, the Commission should rapidly propose solutions to the Member States concerning two problems that would arise if the directive were to be adopted as presently worded. |
| --- | --- |

5.2

In this connection, the Commission should rapidly propose solutions to the Member States concerning two problems that would arise if the directive were to be adopted as presently worded.

| 5.2.1 | The first problem concerns vehicles registered before January 2001, for the following reasons:






  — | CO2 emissions expressed in grammes per kilometre are available for all vehicles registered since January 1997; this data was not collected before. |
| --- | --- | --- |

5.2.1

The first problem concerns vehicles registered before January 2001, for the following reasons:

—

CO2 emissions expressed in grammes per kilometre are available for all vehicles registered since January 1997; this data was not collected before.

| — | Between 1997 and 2000 CO2 emissions were measured using the European driving cycle, subsequently amended in January 2001; in consequence, the emissions data from the two periods are not entirely consistent. |
| --- | --- |

—

Between 1997 and 2000 CO2 emissions were measured using the European driving cycle, subsequently amended in January 2001; in consequence, the emissions data from the two periods are not entirely consistent.

| — | Tax based on an objective, uniform parameter could therefore only be applied to vehicles registered since January 2001. |
| --- | --- |

—

Tax based on an objective, uniform parameter could therefore only be applied to vehicles registered since January 2001.

| 5.2.2 | The second problem concerns those Member States in which the ACT is at present calculated on the basis of engine output expressed in Kilowatts. This system would seem to ensure a more incremental yardstick than a tax taking account solely of the CO2 parameter. Basing ACT in these countries entirely on CO2 emissions would entail increased charges for small vehicles and a drastic reduction for larger, more powerful and therefore more polluting vehicles, with a result paradoxically opposite to that intended. Options to redress the system must therefore be provided immediately. |
| --- | --- |

5.2.2

The second problem concerns those Member States in which the ACT is at present calculated on the basis of engine output expressed in Kilowatts. This system would seem to ensure a more incremental yardstick than a tax taking account solely of the CO2 parameter. Basing ACT in these countries entirely on CO2 emissions would entail increased charges for small vehicles and a drastic reduction for larger, more powerful and therefore more polluting vehicles, with a result paradoxically opposite to that intended. Options to redress the system must therefore be provided immediately.

| 5.3 | It is crucial that the Member States, in the part of the tax corresponding to CO2 emissions, should establish a clear, direct and transparent link between the tax levied and the CO2 emitted by each vehicle. The purpose of this would be to prevent the arbitrary creation of further differences arising from varying technical parameters such as cylinder capacity, size etc. which are a source of market distortion. |
| --- | --- |

5.3

It is crucial that the Member States, in the part of the tax corresponding to CO2 emissions, should establish a clear, direct and transparent link between the tax levied and the CO2 emitted by each vehicle. The purpose of this would be to prevent the arbitrary creation of further differences arising from varying technical parameters such as cylinder capacity, size etc. which are a source of market distortion.

| 5.4 | The directive's transposition must also be technologically neutral, reflecting on the vehicle's CO2 performance and without privileging one technology over another. This could be the case, for example, if the new rules were to penalise cars with diesel engines, a technology in which Europe still retains a competitive edge over non-European manufacturers. It is therefore surprising to see that the European Commission is encouraging the Member States to align taxation of diesel fuel for cars with that for petrol, without considering the fact that diesel cars emit less CO2 than petrol-driven ones. |
| --- | --- |

5.4

The directive's transposition must also be technologically neutral, reflecting on the vehicle's CO2 performance and without privileging one technology over another. This could be the case, for example, if the new rules were to penalise cars with diesel engines, a technology in which Europe still retains a competitive edge over non-European manufacturers. It is therefore surprising to see that the European Commission is encouraging the Member States to align taxation of diesel fuel for cars with that for petrol, without considering the fact that diesel cars emit less CO2 than petrol-driven ones.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  2003 data. More recent, full data for the EU 25 is unavailable.

1

(2)  Countries without RT: Czech Republic, Estonia, France (which does however have a compulsory carte grise which is similar to RT), Germany, Lithuania, Luxembourg, Slovakia, Sweden, United Kingdom.

2

carte grise

(3)  Countries without ACT: Czech Republic, Estonia, France, Lithuania, Poland, Slovakia, Slovenia.

3

(4)  COM(2002) 431 of 6 September 2002.

4

(5)  Communication from the Commission to the Council and the European Parliament, COM(95) 689, and Council Conclusions of 25 June 1996.

5

(6)  The Commission has calculated that if Member States with high RT levels cut them by 50 %, car prices could fall by 10-25 %.

6

(7)  OJ L 283 of 31.10.2003, p. 51.

7

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/84 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/84

---

Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council on ambient air quality and cleaner air for Europe

(COM(2005) 447 final — 2005/0183 COD)

(2006/C 195/22)

On 2 December 2005 the Council decided to consult the European Economic and Social Committee, under Article 175 of the Treaty establishing the European Community, on the abovementioned proposal.

The Section for Agriculture, Rural Development and the Environment, which was responsible for preparing the Committee's work on this subject, adopted its opinion on 26 April 2006. The rapporteur was Mr Buffetaut.

At its 427th plenary session, held on 17 and 18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 72 votes to five with nine abstentions.

1.   Conclusions and recommendations

| 1.1 | The EESC can only endorse the overarching objectives of the thematic strategy on air pollution and the proposed directive, which is its legislative expression. |
| --- | --- |

1.1

The EESC can only endorse the overarching objectives of the thematic strategy on air pollution and the proposed directive, which is its legislative expression.

| 1.2 | As regards the thematic strategy, which cannot be looked at in isolation from the legislative proposal, as is clearly indicated in section 4.1.1 of the strategy:






  — | the Committee fully endorses the desire to mainstream air quality objectives into other Community policies; |
| --- | --- | --- |

1.2

As regards the thematic strategy, which cannot be looked at in isolation from the legislative proposal, as is clearly indicated in section 4.1.1 of the strategy:

—

the Committee fully endorses the desire to mainstream air quality objectives into other Community policies;

| — | urges the Commission to review the energy scenarios generated by the PRIMES model, which seem to contain inaccuracies, which will probably have the effect of altering the baseline scenario for the Clean Air for Europe (CAFE) programme. |
| --- | --- |

—

urges the Commission to review the energy scenarios generated by the PRIMES model, which seem to contain inaccuracies, which will probably have the effect of altering the baseline scenario for the Clean Air for Europe (CAFE) programme.

| 1.3 | As regards the proposed directive:






  — | fully supports the intention of simplifying, clarifying and codifying air quality legislation; |
| --- | --- | --- |

1.3

As regards the proposed directive:

—

fully supports the intention of simplifying, clarifying and codifying air quality legislation;

| — | endorses the intention of ensuring effective implementation by Member States of existing legislative provisions; |
| --- | --- |

—

endorses the intention of ensuring effective implementation by Member States of existing legislative provisions;

| — | proposes that the dates set for complying with the obligations laid down in the directive be postponed from 2010 to 2015 for the concentration caps for PM2.5 and from 2015 to 2020 for the reduction in human exposure in view of the time required for the successful completion of the legislative process and the establishment of measuring stations in the Member States, and the cost of the necessary investment; |
| --- | --- |

—

proposes that the dates set for complying with the obligations laid down in the directive be postponed from 2010 to 2015 for the concentration caps for PM2.5 and from 2015 to 2020 for the reduction in human exposure in view of the time required for the successful completion of the legislative process and the establishment of measuring stations in the Member States, and the cost of the necessary investment;

| — | believes that, before fixing binding ceilings, it would have been useful to provide for a transition period during which Member States would have been required to move towards ‘target’ concentration values; |
| --- | --- |

—

believes that, before fixing binding ceilings, it would have been useful to provide for a transition period during which Member States would have been required to move towards ‘target’ concentration values;

| — | requests that natural fine particulate matter be excluded from the scope of the directive. |
| --- | --- |

—

requests that natural fine particulate matter be excluded from the scope of the directive.

2.   Introduction

| 2.1 | The thematic strategy and the proposed directive are part of the Sixth Environment Action Programme (6th EAP published on 10 September 2002 (1)) and the 2001 Clean Air for Europe (CAFE) programme. The 6th EAP set the ambitious objective of ‘achieving levels of air quality that do not give rise to significant negative impacts on and risks to human health and the environment’.
  Section 4.1.1 of the strategy states that ‘A legislative proposal is attached to this Strategy ...’. It is therefore clear that the two texts are linked and that in order to take a position on the proposed directive it is necessary to examine the strategy, which, in a way, constitutes a general framework and defines the Commission's strategic objectives with regard to air quality. |
| --- | --- |

2.1

The thematic strategy and the proposed directive are part of the Sixth Environment Action Programme (6th EAP published on 10 September 2002 (1)) and the 2001 Clean Air for Europe (CAFE) programme. The 6th EAP set the ambitious objective of ‘achieving levels of air quality that do not give rise to significant negative impacts on and risks to human health and the environment’.

Section 4.1.1 of the strategy states that ‘A legislative proposal is attached to this Strategy ...’. It is therefore clear that the two texts are linked and that in order to take a position on the proposed directive it is necessary to examine the strategy, which, in a way, constitutes a general framework and defines the Commission's strategic objectives with regard to air quality.

2.2   A thematic strategy

| 2.2.1 | The proposed thematic strategy establishes interim objectives for air pollution. It recommends that existing legislation be modernised, with a greater focus on the most harmful pollutants, and that more be done to incorporate environmental concerns into other policies and programmes. |
| --- | --- |

2.2.1

The proposed thematic strategy establishes interim objectives for air pollution. It recommends that existing legislation be modernised, with a greater focus on the most harmful pollutants, and that more be done to incorporate environmental concerns into other policies and programmes.

| 2.2.2 | However, despite the progress made in reducing emissions of the main air pollutants, even with the full implementation of existing laws it will not be possible to resolve all environmental and health problems by 2020 unless further action is taken. |
| --- | --- |

2.2.2

However, despite the progress made in reducing emissions of the main air pollutants, even with the full implementation of existing laws it will not be possible to resolve all environmental and health problems by 2020 unless further action is taken.

| 2.2.3 | The Commission therefore proposes the following:






  — | the streamlining of existing provisions and the merging of the 1996 Framework Directive, the First, Second and Third Daughter Directives (1999, 2000 and 2003) and the 1997 Decision on the exchange of information. The Fourth Daughter Directive of 2004 would be incorporated at a later stage through codification; |
| --- | --- | --- |

2.2.3

The Commission therefore proposes the following:

—

the streamlining of existing provisions and the merging of the 1996 Framework Directive, the First, Second and Third Daughter Directives (1999, 2000 and 2003) and the 1997 Decision on the exchange of information. The Fourth Daughter Directive of 2004 would be incorporated at a later stage through codification;

| — | the introduction of new standards for fine particulate matter (PM2.5) in the air; |
| --- | --- |

—

the introduction of new standards for fine particulate matter (PM2.5) in the air;

| — | the revision of the 2002 National Emission Ceilings Directive (NECD). |
| --- | --- |

—

the revision of the 2002 National Emission Ceilings Directive (NECD).

These measures are designed to meet the need to simplify and clarify legislation and thus promote better application.

| 2.2.4 | The other strand of the strategy consists of better mainstreaming of air quality concerns into other EU policies: energy; small combustion plants; inland, air and maritime transport; agriculture; and structural funds. |
| --- | --- |

2.2.4

The other strand of the strategy consists of better mainstreaming of air quality concerns into other EU policies: energy; small combustion plants; inland, air and maritime transport; agriculture; and structural funds.

| 2.2.5 | The strategy will be reviewed in 2010 and the results incorporated in the final evaluation of the 6th EAP. |
| --- | --- |

2.2.5

The strategy will be reviewed in 2010 and the results incorporated in the final evaluation of the 6th EAP.

3.   Proposal for a Directive on ambient air and cleaner air for Europe

| 3.1 | The proposal seeks to establish a practical legal framework for the strategy by merging the five legal instruments mentioned above into a single directive. |
| --- | --- |

3.1

The proposal seeks to establish a practical legal framework for the strategy by merging the five legal instruments mentioned above into a single directive.

| 3.2 | Chapter III on air quality management contains the most important legislative changes. The Commission does not propose to modify the existing air quality limit values but rather to strengthen existing provisions so that Member States will be obliged to prepare and implement plans and programmes to remove non-compliance. |
| --- | --- |

3.2

Chapter III on air quality management contains the most important legislative changes. The Commission does not propose to modify the existing air quality limit values but rather to strengthen existing provisions so that Member States will be obliged to prepare and implement plans and programmes to remove non-compliance.

| 3.3 | The other key change concerns fine particles (PM2.5), which are more hazardous than larger ones. A new approach to control PM2.5 is therefore required to complement the existing controls on PM10. |
| --- | --- |

3.3

The other key change concerns fine particles (PM2.5), which are more hazardous than larger ones. A new approach to control PM2.5 is therefore required to complement the existing controls on PM10.

| 3.4 | The Commission proposes to establish a concentration cap for PM2.5 in ambient air to prevent unduly high risks to the population, to be attained by 2010. This would be coupled with a non-binding target to reduce human exposure generally to PM2.5 between 2010 and 2020 in each Member State. |
| --- | --- |

3.4

The Commission proposes to establish a concentration cap for PM2.5 in ambient air to prevent unduly high risks to the population, to be attained by 2010. This would be coupled with a non-binding target to reduce human exposure generally to PM2.5 between 2010 and 2020 in each Member State.

| 3.5 | Chapter V requires Member States to ensure that the public and organisations and associations with an interest in the issue of ambient air quality are kept informed so as to comply with the requirements of the Aarhus Convention. In addition, Member States are, of course, required to provide the Commission with all necessary information. To facilitate the transmission of this information, the Commission proposes to introduce a system of electronic reporting based on a shared information system within the INSPIRE framework. |
| --- | --- |

3.5

Chapter V requires Member States to ensure that the public and organisations and associations with an interest in the issue of ambient air quality are kept informed so as to comply with the requirements of the Aarhus Convention. In addition, Member States are, of course, required to provide the Commission with all necessary information. To facilitate the transmission of this information, the Commission proposes to introduce a system of electronic reporting based on a shared information system within the INSPIRE framework.

| 3.6 | In order to ensure that the information collected is sufficiently representative and comparable, it is proposed that standardised measurement techniques and common criteria for the number and location of measuring stations be used for the assessment of ambient air quality. |
| --- | --- |

3.6

In order to ensure that the information collected is sufficiently representative and comparable, it is proposed that standardised measurement techniques and common criteria for the number and location of measuring stations be used for the assessment of ambient air quality.

4.   General comments

A)   Thematic strategy

| 4.1 | The EESC endorses the general objectives of the strategy and the proposed directive. However, although the objectives are commendable, the real issues here are cost-effectiveness, the feasibility of the proposed measures — relatively straightforward in the case of point sources but far more complicated in the case of diffuse sources — and their real impact, both economically and in terms of improving air quality. |
| --- | --- |

4.1

The EESC endorses the general objectives of the strategy and the proposed directive. However, although the objectives are commendable, the real issues here are cost-effectiveness, the feasibility of the proposed measures — relatively straightforward in the case of point sources but far more complicated in the case of diffuse sources — and their real impact, both economically and in terms of improving air quality.

| 4.2 | The Commission estimates that attaining these objectives could cost approximately EUR 7.1 billion per annum, which would be in addition to the amount already spent on combating air pollution (approximately EUR 60 billion a year), but would deliver health benefits totalling EUR 42 billion per annum. Thus the macroeconomic impact would be broadly positive. However, day-to-day economic realities are more about microeconomic concerns. The Commission nevertheless estimates that, even if all available techniques were used, the benefits would outweigh the costs. The difficulty here is that, while it is relatively easy to estimate the costs, it is much harder to assess the expected benefits; moreover the methods of calculating the savings in public health expenditure do not seem very clear. Nonetheless, the Commission stresses that the cost of US regulation is higher than that which would result from European regulation. |
| --- | --- |

4.2

The Commission estimates that attaining these objectives could cost approximately EUR 7.1 billion per annum, which would be in addition to the amount already spent on combating air pollution (approximately EUR 60 billion a year), but would deliver health benefits totalling EUR 42 billion per annum. Thus the macroeconomic impact would be broadly positive. However, day-to-day economic realities are more about microeconomic concerns. The Commission nevertheless estimates that, even if all available techniques were used, the benefits would outweigh the costs. The difficulty here is that, while it is relatively easy to estimate the costs, it is much harder to assess the expected benefits; moreover the methods of calculating the savings in public health expenditure do not seem very clear. Nonetheless, the Commission stresses that the cost of US regulation is higher than that which would result from European regulation.

| 4.3 | The plan to simplify, clarify and codify legislation is to be welcomed. The complexity and vagueness of some of the legal provisions inevitably entails differences in application, distortions of competition and the impossibility of acquiring a true picture of air quality in Europe. |
| --- | --- |

4.3

The plan to simplify, clarify and codify legislation is to be welcomed. The complexity and vagueness of some of the legal provisions inevitably entails differences in application, distortions of competition and the impossibility of acquiring a true picture of air quality in Europe.

| 4.4 | Therefore the proposed legislative approach should be supported. |
| --- | --- |

4.4

Therefore the proposed legislative approach should be supported.

| 4.5 | However, it is to be regretted that the Commission does not consider the role that local authorities and, not least, towns and cities should play in the field of transport (promotion of alternative modes of transport, public transport, deflection of heavy traffic, etc.). In fact, local authorities, especially municipalities, play a crucial role in the practical implementation of provisions adopted at European level, particularly as regards measures. |
| --- | --- |

4.5

However, it is to be regretted that the Commission does not consider the role that local authorities and, not least, towns and cities should play in the field of transport (promotion of alternative modes of transport, public transport, deflection of heavy traffic, etc.). In fact, local authorities, especially municipalities, play a crucial role in the practical implementation of provisions adopted at European level, particularly as regards measures.

| 4.6 | In the same vein, it would be advisable to stress the role which environmental NGOs, specialised bodies in the health and social field and organised civil society more widely can play in raising awareness of the issues at stake for public health and health at work. |
| --- | --- |

4.6

In the same vein, it would be advisable to stress the role which environmental NGOs, specialised bodies in the health and social field and organised civil society more widely can play in raising awareness of the issues at stake for public health and health at work.

| 4.7 | Finally, as regards protection of ecosystems, progress has already been made in relation to oxides of nitrogen, sulphur dioxide and ammonia. Better application and simplification of legislation should make it possible to improve results still further. |
| --- | --- |

4.7

Finally, as regards protection of ecosystems, progress has already been made in relation to oxides of nitrogen, sulphur dioxide and ammonia. Better application and simplification of legislation should make it possible to improve results still further.

B)   Proposed directive

| 4.8 | The desire to control the level of fine particles in the air is understandable given their impact on human health. However, fixing limit values came up against a theoretical difficulty in that for some particles the WHO was unable to establish a health protection threshold (2). Moreover, major uncertainties exist concerning the measurement of PM concentrations and the chemical composition of particles that make PM harmful to health, to a greater or lesser extent, which cannot be determined with the techniques currently in use. |
| --- | --- |

4.8

The desire to control the level of fine particles in the air is understandable given their impact on human health. However, fixing limit values came up against a theoretical difficulty in that for some particles the WHO was unable to establish a health protection threshold (2). Moreover, major uncertainties exist concerning the measurement of PM concentrations and the chemical composition of particles that make PM harmful to health, to a greater or lesser extent, which cannot be determined with the techniques currently in use.

| 4.9 | This therefore raises the question as to whether it might not have been better to establish ‘target’ values instead of limit values. Moreover, the proposed deadline (2010) seems rather short as the legislative procedure only started at the end of 2005, which, given the slowness of the legislative process, could mean that Member States have very little time to comply. |
| --- | --- |

4.9

This therefore raises the question as to whether it might not have been better to establish ‘target’ values instead of limit values. Moreover, the proposed deadline (2010) seems rather short as the legislative procedure only started at the end of 2005, which, given the slowness of the legislative process, could mean that Member States have very little time to comply.

5.   Specific comments

5.1   The thematic strategy

| 5.1.1 | The EESC welcomes the wide-ranging consultation of stakeholders conducted by the European Commission and fully endorses the desire to mainstream air quality objectives in other Community policies. However, owing to time constraints, the work was carried out with great haste and it was not possible to perform all of the necessary data checks. This applies particularly to the strategic scenarios used. |
| --- | --- |

5.1.1

The EESC welcomes the wide-ranging consultation of stakeholders conducted by the European Commission and fully endorses the desire to mainstream air quality objectives in other Community policies. However, owing to time constraints, the work was carried out with great haste and it was not possible to perform all of the necessary data checks. This applies particularly to the strategic scenarios used.

| 5.1.2 | The scenarios, which were generated by the PRIMES model, contain a number of inaccuracies regarding growth forecasts, the penetration of gas in comparison with coal, and the imbalance between imports and exports of electricity between Member States. |
| --- | --- |

5.1.2

The scenarios, which were generated by the PRIMES model, contain a number of inaccuracies regarding growth forecasts, the penetration of gas in comparison with coal, and the imbalance between imports and exports of electricity between Member States.

| 5.1.3 | In fact, recognising this, the European Commission requested the International Institute of Applied Systems Analysis (IIASA) to hold bilateral consultations with all the Member States between April and September 2005 with a view, inter alia, to improving the energy scenarios in connection with the revision of the Directive on National Emission Ceilings, which is just starting. |
| --- | --- |

5.1.3

In fact, recognising this, the European Commission requested the International Institute of Applied Systems Analysis (IIASA) to hold bilateral consultations with all the Member States between April and September 2005 with a view, inter alia, to improving the energy scenarios in connection with the revision of the Directive on National Emission Ceilings, which is just starting.

| 5.1.4 | A major updating of the PRIMES energy scenarios is now under way. The most important changes are as follows:






  — | less market penetration by gas and a larger share for coal; |
| --- | --- | --- |

5.1.4

A major updating of the PRIMES energy scenarios is now under way. The most important changes are as follows:

—

less market penetration by gas and a larger share for coal;

| — | a better balance between Member States in terms of electricity imports and exports; |
| --- | --- |

—

a better balance between Member States in terms of electricity imports and exports;

| — | a larger share for nuclear-generated electricity; |
| --- | --- |

—

a larger share for nuclear-generated electricity;

| — | revised forecasts for fuel costs and economic growth. |
| --- | --- |

—

revised forecasts for fuel costs and economic growth.

| 5.1.5 | Therefore the CAFE energy scenarios should be revised, which would have the effect of altering the CAFE baseline scenario and hence the stated target levels. |
| --- | --- |

5.1.5

Therefore the CAFE energy scenarios should be revised, which would have the effect of altering the CAFE baseline scenario and hence the stated target levels.

| 5.1.6 | In addition, it would be advisable to ensure consistency between this strategy and other EU policies. For example, although domestic wood combustion results in the emission of PM2.5 particles, the Commission encourages the use of wood as an alternative energy source, which would require the implementation of flue gas cleaning techniques. Coal can be cited as another example. |
| --- | --- |

5.1.6

In addition, it would be advisable to ensure consistency between this strategy and other EU policies. For example, although domestic wood combustion results in the emission of PM2.5 particles, the Commission encourages the use of wood as an alternative energy source, which would require the implementation of flue gas cleaning techniques. Coal can be cited as another example.

| 5.1.7 | That said, the thematic strategy has the merit that it takes into account sectors that are often neglected, such as agriculture and shipping. It is nonetheless surprising that it does not address the question of air transport with regard to emissions during take-off and landing. However, formidable political difficulties are likely to arise in implementing the strategy: for instance, cutting emissions of SO2 and NOx from ships will require long and arduous international negotiations. Moreover, the difficulties in achieving target levels in some sectors (e.g. nitrogen and ammonia emissions in agriculture) should not lead to added pressure on sources that are easier to identify such as industrial sites. |
| --- | --- |

5.1.7

That said, the thematic strategy has the merit that it takes into account sectors that are often neglected, such as agriculture and shipping. It is nonetheless surprising that it does not address the question of air transport with regard to emissions during take-off and landing. However, formidable political difficulties are likely to arise in implementing the strategy: for instance, cutting emissions of SO2 and NOx from ships will require long and arduous international negotiations. Moreover, the difficulties in achieving target levels in some sectors (e.g. nitrogen and ammonia emissions in agriculture) should not lead to added pressure on sources that are easier to identify such as industrial sites.

5.2   The proposed directive

| 5.2.1 | The EESC supports the simplification of the existing provisions and the merger of the 1996 Framework Directive with the First, Second and Third Daughter Directives and the Decision on the exchange of information. A plethora of disparate laws undermines their effective application and the replacement of five separate pieces of legislation by a single directive is a useful initiative. |
| --- | --- |

5.2.1

The EESC supports the simplification of the existing provisions and the merger of the 1996 Framework Directive with the First, Second and Third Daughter Directives and the Decision on the exchange of information. A plethora of disparate laws undermines their effective application and the replacement of five separate pieces of legislation by a single directive is a useful initiative.

| 5.2.2 | The Committee also endorses the plan to use standardised measurement techniques and common criteria for the number and location of measuring stations (Chapter II). It notes, however, that some local authorities are concerned about the cost of installing these measurement systems. |
| --- | --- |

5.2.2

The Committee also endorses the plan to use standardised measurement techniques and common criteria for the number and location of measuring stations (Chapter II). It notes, however, that some local authorities are concerned about the cost of installing these measurement systems.

| 5.2.3 | Similarly, the EESC supports the European Commission's proposal not to modify the existing air quality limit values but to strengthen existing provisions so that Member States will be obliged to prepare and implement plans and programmes to remove non-compliances (Article 13). Effective application of existing standards is a top priority which should bring major benefits in terms of air quality and protection of human health. |
| --- | --- |

5.2.3

Similarly, the EESC supports the European Commission's proposal not to modify the existing air quality limit values but to strengthen existing provisions so that Member States will be obliged to prepare and implement plans and programmes to remove non-compliances (Article 13). Effective application of existing standards is a top priority which should bring major benefits in terms of air quality and protection of human health.

| 5.2.4 | The EESC would stress that the key point of the proposal is the introduction of a ceiling for fine particles matter (PM2.5) in the air, to be attained by 2010, coupled with a number of non-binding targets to reduce human exposure to fine particles between 2010 and 2020 (-20 %). |
| --- | --- |

5.2.4

The EESC would stress that the key point of the proposal is the introduction of a ceiling for fine particles matter (PM2.5) in the air, to be attained by 2010, coupled with a number of non-binding targets to reduce human exposure to fine particles between 2010 and 2020 (-20 %).

| 5.2.5 | The Committee would point out that available data on fine particles and their effects are limited and uncertain. The WHO itself acknowledges that it is impossible to establish a relevant threshold for health protection and the Scientific Committee on Health and Environmental Risk acknowledges that there is, at present, a lack of knowledge on fine particles and their effects on health in the long term. |
| --- | --- |

5.2.5

The Committee would point out that available data on fine particles and their effects are limited and uncertain. The WHO itself acknowledges that it is impossible to establish a relevant threshold for health protection and the Scientific Committee on Health and Environmental Risk acknowledges that there is, at present, a lack of knowledge on fine particles and their effects on health in the long term.

| 5.2.6 | The EESC considers it better initially to establish target values rather than a concentration cap. Otherwise, the Committee fears that the deadlines set by the Commission will be too tight insofar as the legislative procedure did not start until the end of 2005. Thus there would be a likelihood that Member States would have only very little time to comply, especially as some of them do not even meet the existing standards, in part because they have delayed implementing them. The Committee also points out that it is difficult for smaller Member States to comply with concentration caps, as they are at a disadvantage given the smaller area over which air pollution is distributed. The Committee therefore proposes that target values be set rather than concentration caps. The proposed standards would require an enormous effort from Member States and/or local authorities to set up measuring stations, which would take time and necessitate major investment. PM10 are well measured and measurable and, moreover, tend to be deposited quickly. These measurement results should nonetheless be evaluated and assessed to establish whether they can be complied with in the Member States. PM2.5 are extremely difficult to measure and very volatile. Thus they are easily transported in the atmosphere and are transboundary pollutants. In addition, there are natural fine particulates, for example sea salt, which it would be logical not to take into account. |
| --- | --- |

5.2.6

The EESC considers it better initially to establish target values rather than a concentration cap. Otherwise, the Committee fears that the deadlines set by the Commission will be too tight insofar as the legislative procedure did not start until the end of 2005. Thus there would be a likelihood that Member States would have only very little time to comply, especially as some of them do not even meet the existing standards, in part because they have delayed implementing them. The Committee also points out that it is difficult for smaller Member States to comply with concentration caps, as they are at a disadvantage given the smaller area over which air pollution is distributed. The Committee therefore proposes that target values be set rather than concentration caps. The proposed standards would require an enormous effort from Member States and/or local authorities to set up measuring stations, which would take time and necessitate major investment. PM10 are well measured and measurable and, moreover, tend to be deposited quickly. These measurement results should nonetheless be evaluated and assessed to establish whether they can be complied with in the Member States. PM2.5 are extremely difficult to measure and very volatile. Thus they are easily transported in the atmosphere and are transboundary pollutants. In addition, there are natural fine particulates, for example sea salt, which it would be logical not to take into account.

| 5.2.7 | Furthermore, the measurement of PM2.5 is still not harmonised in Europe. The First Daughter Directive recommends the use of a gravimetric reference method for the measurement of PM. As this is a long and complicated method, the directive also allows the use of alternative measurement methods, on condition that they are really equivalent to those published by the Commission. In practice, these methods show a systematic deviation from the reference method and Member States use different correction coefficients or even no coefficient at all. One can question whether it is reasonable to adopt legally binding limit values in such a short time span in the light of these uncertainties in measurement methods. |
| --- | --- |

5.2.7

Furthermore, the measurement of PM2.5 is still not harmonised in Europe. The First Daughter Directive recommends the use of a gravimetric reference method for the measurement of PM. As this is a long and complicated method, the directive also allows the use of alternative measurement methods, on condition that they are really equivalent to those published by the Commission. In practice, these methods show a systematic deviation from the reference method and Member States use different correction coefficients or even no coefficient at all. One can question whether it is reasonable to adopt legally binding limit values in such a short time span in the light of these uncertainties in measurement methods.

| 5.2.8 | Finally, the EESC notes that the cost-effectiveness of the proposed measures is hard to assess inasmuch as that for some measures its difficult to estimate the public health benefits with any precision. There is therefore a danger that the marginal cost of the proposed measures will be high but that the real benefit they deliver is small, raising the question of expediency in making resource allocation decisions. |
| --- | --- |

5.2.8

Finally, the EESC notes that the cost-effectiveness of the proposed measures is hard to assess inasmuch as that for some measures its difficult to estimate the public health benefits with any precision. There is therefore a danger that the marginal cost of the proposed measures will be high but that the real benefit they deliver is small, raising the question of expediency in making resource allocation decisions.

Brussels, 17 May 2006

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  OJ L 242 of 10.9.2002.

1

(2)  As regards human exposure to PM2.5 particles, the WHO has recently proposed a ceiling of 10 μg/m3.

2

2.5

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/88 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/88

---

Opinion of the European Economic and Social Committee on the Situation of civil society in the Western Balkans

(2006/C 195/23)

By letter dated 14 June 2005, Ms Margot Wallström, Vice-President of the European Commission, asked the European Economic and Social Committee, under Article 262 of the Treaty establishing the European Community, to draw up an opinion on the Situation of civil society in the Western Balkans.

The Section for External Relations, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 27 March 2006. The rapporteur was Mr Dimitriadis.

At its 427th plenary session, held on 17-18 May 2006 (meeting of 17 May), the European Economic and Social Committee adopted the following opinion by 95 votes, nem. con. with one abstention.

The following opinion is in line with Article 9 of the Protocol of Cooperation between the Commission and the European Economic and Social Committee and meets the request of European Commission Vice-President Ms Margot Wallström for an opinion on the situation of civil society in the Western Balkans as a contribution to its strategic deliberations under the Stabilisation and Association Process (SAP).

The purpose of the present opinion is to:

| — | give the best possible assistance to the Commission and the Council in framing and implementing sound policies to support realistic and measurable objectives; |
| --- | --- |

—

give the best possible assistance to the Commission and the Council in framing and implementing sound policies to support realistic and measurable objectives;

| — | enable European public opinion to gain a better understanding of these policies and hence of the positive elements of the EU and give the policies its informed support; |
| --- | --- |

—

enable European public opinion to gain a better understanding of these policies and hence of the positive elements of the EU and give the policies its informed support;

| — | make it easier to assess and, consequently, to improve or revise the applied policies and measures when required, insofar as their objectives are clear and uncontroversial, particularly with regard to their direct beneficiaries; |
| --- | --- |

—

make it easier to assess and, consequently, to improve or revise the applied policies and measures when required, insofar as their objectives are clear and uncontroversial, particularly with regard to their direct beneficiaries;

| — | boost the EU's international image and weight, especially in the troubled Western Balkans, by demonstrating that it is sensitive to the real and urgent needs of the region's peoples, offering them know-how to help them achieve prosperity; |
| --- | --- |

—

boost the EU's international image and weight, especially in the troubled Western Balkans, by demonstrating that it is sensitive to the real and urgent needs of the region's peoples, offering them know-how to help them achieve prosperity;

| — | explain the role the EESC can play in the region as a bridge between European civil society organisations and the corresponding local organisations. |
| --- | --- |

—

explain the role the EESC can play in the region as a bridge between European civil society organisations and the corresponding local organisations.

1.   Summary

1.1   The EESC's comments

| — | The EU lost a large part of its credibility at international and local level during the Yugoslav crisis, with the result that it is perceived in the region as a politically weak international actor which is still not fully aware of the real situation in the Western Balkans and is still unable to coordinate its various agencies. |
| --- | --- |

—

The EU lost a large part of its credibility at international and local level during the Yugoslav crisis, with the result that it is perceived in the region as a politically weak international actor which is still not fully aware of the real situation in the Western Balkans and is still unable to coordinate its various agencies.

| — | In a number of regions of the Western Balkans, and especially in Kosovo, a feeling of security has not been established while ethnic disagreements lead to extreme animosity in the region. |
| --- | --- |

—

In a number of regions of the Western Balkans, and especially in Kosovo, a feeling of security has not been established while ethnic disagreements lead to extreme animosity in the region.

| — | The Union of Serbia and Montenegro does not meet the expectations for the expected democratic federation of states. |
| --- | --- |

—

The Union of Serbia and Montenegro does not meet the expectations for the expected democratic federation of states.

| — | Bosnia-Herzegovina and Kosovo are constructed political entities which have been imposed by international organisations, and there is no certainty that they will be viable in the long term. |
| --- | --- |

—

Bosnia-Herzegovina and Kosovo are constructed political entities which have been imposed by international organisations, and there is no certainty that they will be viable in the long term.

| — | The Copenhagen criteria are regarded as fundamental and non-negotiable. |
| --- | --- |

—

The Copenhagen criteria are regarded as fundamental and non-negotiable.

| — | The best way of developing a relevant integrated European strategy is through civil society — which has tentatively begun to play its role — and its organisations. |
| --- | --- |

—

The best way of developing a relevant integrated European strategy is through civil society — which has tentatively begun to play its role — and its organisations.

| — | The countries of the Western Balkans need constant direct and substantial support both in terms of know-how and in economic terms (support for direct and indirect foreign investments). |
| --- | --- |

—

The countries of the Western Balkans need constant direct and substantial support both in terms of know-how and in economic terms (support for direct and indirect foreign investments).

| — | There is a need for a many-voiced and many-sided social dialogue, and to establish a democratic legal operating framework for civil society. |
| --- | --- |

—

There is a need for a many-voiced and many-sided social dialogue, and to establish a democratic legal operating framework for civil society.

| — | An immediate priority is stamping out corruption and making the judiciary a mainstay of society. |
| --- | --- |

—

An immediate priority is stamping out corruption and making the judiciary a mainstay of society.

| — | Civil society organisations need to be financed. |
| --- | --- |

—

Civil society organisations need to be financed.

| — | The EESC considers it necessary to establish Joint Consultative Committees with all the Western Balkan countries when the conditions are favourable. |
| --- | --- |

—

The EESC considers it necessary to establish Joint Consultative Committees with all the Western Balkan countries when the conditions are favourable.

1.2   The role and responsibilities of the EESC

| — | The EESC, with its substantial know-how and considerable human resources, regards itself as particularly suitable to play a more active role in the development of the above policies, as evidenced by its major initiative of organising a Forum in 2006 at its headquarters with the participation of civil society organisations of the Western Balkans. |
| --- | --- |

—

The EESC, with its substantial know-how and considerable human resources, regards itself as particularly suitable to play a more active role in the development of the above policies, as evidenced by its major initiative of organising a Forum in 2006 at its headquarters with the participation of civil society organisations of the Western Balkans.

| — | It intends to offer its good offices as required to bring the civil society organisations of the Western Balkans into contact with their EU counterparts. |
| --- | --- |

—

It intends to offer its good offices as required to bring the civil society organisations of the Western Balkans into contact with their EU counterparts.

| — | It can be used by the Commission to organise local information meetings with civil society on subjects of special interest and form a bridge of communication between civil society and international organisations such as the IMF, the World Bank, the EIB, etc. |
| --- | --- |

—

It can be used by the Commission to organise local information meetings with civil society on subjects of special interest and form a bridge of communication between civil society and international organisations such as the IMF, the World Bank, the EIB, etc.

| — | Systematic analyses-studies on the social situation in the Western Balkans and the progress of civil society should be planned, implemented and supported in cooperation with the European Commission. |
| --- | --- |

—

Systematic analyses-studies on the social situation in the Western Balkans and the progress of civil society should be planned, implemented and supported in cooperation with the European Commission.

1.3   The EESC recommends and proposes:

| A) | To the national and regional political forces of the Western Balkan countries:






  — | that they align themselves more closely with the Community acquis, and that their governments accelerate their efforts at democratisation; |
| --- | --- | --- |

A)

To the national and regional political forces of the Western Balkan countries:

—

that they align themselves more closely with the Community acquis, and that their governments accelerate their efforts at democratisation;

| — | that all the parties concerned show special respect for national and religious minorities. |
| --- | --- |

—

that all the parties concerned show special respect for national and religious minorities.

| B) | To the political bodies of the Union: |
| --- | --- |

B)

To the political bodies of the Union:

| — | the Commission should intensify efforts to complete procedures on the stabilisation and association agreements with the remaining states of the region and show stronger political will and better coordination to enable its political and consultative bodies to promote all the subjects on the Thessaloniki Agenda; |
| --- | --- |

—

the Commission should intensify efforts to complete procedures on the stabilisation and association agreements with the remaining states of the region and show stronger political will and better coordination to enable its political and consultative bodies to promote all the subjects on the Thessaloniki Agenda;

| — | the EESC regards education as the most important field for supporting and developing society in the Western Balkans; |
| --- | --- |

—

the EESC regards education as the most important field for supporting and developing society in the Western Balkans;

| — | a definitive settlement of the constitutional status of Kosovo is of vital importance for security, peace and stability in the region; |
| --- | --- |

—

a definitive settlement of the constitutional status of Kosovo is of vital importance for security, peace and stability in the region;

| — | the EU should assess the statutes and aims of the social partners' organisations. |
| --- | --- |

—

the EU should assess the statutes and aims of the social partners' organisations.

| C) | To the Member States of the Union bordering on the Western Balkans and the European civil society organisations:






  — | the Member States of the EU should take measures to support civil society. |
| --- | --- | --- |

C)

To the Member States of the Union bordering on the Western Balkans and the European civil society organisations:

—

the Member States of the EU should take measures to support civil society.

2.   Historical background to the situation of civil society in the Western Balkans

| 2.1 | This opinion looks at civil society (1) in the Balkans, focusing on the following countries: Albania, Bosnia-Herzegovina, Croatia, FYROM and Serbia and Montenegro, and including Kosovo in accordance with Resolution 1244 of the Security Council of the United Nations. |
| --- | --- |

2.1

This opinion looks at civil society (1) in the Balkans, focusing on the following countries: Albania, Bosnia-Herzegovina, Croatia, FYROM and Serbia and Montenegro, and including Kosovo in accordance with Resolution 1244 of the Security Council of the United Nations.

| 2.2 | At the summit meeting in Thessaloniki (June 2003), the EU reaffirmed its commitment to integration into the Union of the countries of the Western Balkans (2) when the situation allows. The Stabilisation and Association Process (SAP) was enhanced with new instruments to support the reform process. Short-term and medium-term priorities were identified, and the first set of European Partnerships was approved in 2004. |
| --- | --- |

2.2

At the summit meeting in Thessaloniki (June 2003), the EU reaffirmed its commitment to integration into the Union of the countries of the Western Balkans (2) when the situation allows. The Stabilisation and Association Process (SAP) was enhanced with new instruments to support the reform process. Short-term and medium-term priorities were identified, and the first set of European Partnerships was approved in 2004.

| 2.3 | However, the political situation in the region is still unstable: the final status of Kosovo has not yet been resolved, relations between Serbia and Montenegro are in flux, and the slow progress in Bosnia-Herzegovina could stop at any moment. |
| --- | --- |

2.3

However, the political situation in the region is still unstable: the final status of Kosovo has not yet been resolved, relations between Serbia and Montenegro are in flux, and the slow progress in Bosnia-Herzegovina could stop at any moment.

| 2.4 | The missions of the EESC Contact Group to Croatia, to Bosnia-Herzegovina (21-22 March 2005), to Serbia and Montenegro (26 May 2005), to the Former Yugoslav Republic of Macedonia and to Albania reported a positive response to the Civil Society Forum organised by the EESC. However, they also highlighted the difficulties in achieving constructive social dialogue and dialogue involving civil society organisations given that there is no real representative participation of the social partners, and that certain organisations claiming to represent civil society lack legitimacy (3). Interaction between governments and civil society has gradually increased, but it has not yet reached the level needed in practice to produce substantial results and cooperation. |
| --- | --- |

2.4

The missions of the EESC Contact Group to Croatia, to Bosnia-Herzegovina (21-22 March 2005), to Serbia and Montenegro (26 May 2005), to the Former Yugoslav Republic of Macedonia and to Albania reported a positive response to the Civil Society Forum organised by the EESC. However, they also highlighted the difficulties in achieving constructive social dialogue and dialogue involving civil society organisations given that there is no real representative participation of the social partners, and that certain organisations claiming to represent civil society lack legitimacy (3). Interaction between governments and civil society has gradually increased, but it has not yet reached the level needed in practice to produce substantial results and cooperation.

| 2.5 | The weakness of democratic institutions, the political environment and the security situation in the countries of the region have so far prevented structured social dialogue with independent and representative social partners, which must be based on internal discussion among the social partners and should continue to be supported by the EU with its rich experience and expertise. |
| --- | --- |

2.5

The weakness of democratic institutions, the political environment and the security situation in the countries of the region have so far prevented structured social dialogue with independent and representative social partners, which must be based on internal discussion among the social partners and should continue to be supported by the EU with its rich experience and expertise.

| 2.6 | This opinion is based on the follow-up to the summit meeting in Zagreb (November 2000), the Thessaloniki Agenda (June 2003) and all other EU initiatives on this region, focusing on economic, political, social and cultural issues. |
| --- | --- |

2.6

This opinion is based on the follow-up to the summit meeting in Zagreb (November 2000), the Thessaloniki Agenda (June 2003) and all other EU initiatives on this region, focusing on economic, political, social and cultural issues.

| 2.7 | The current situation of civil society organisations has not changed significantly from that described in the EESC's opinion on The role of civil society in the new European strategy for the Western Balkans
   (4). The situation can be summarised as follows:






  — | ongoing and strenuous efforts by trade unions to establish their new role in free-market economies and societies in which the private sector now contributes to growth; |
| --- | --- | --- |

2.7

The current situation of civil society organisations has not changed significantly from that described in the EESC's opinion on The role of civil society in the new European strategy for the Western Balkans
   (4). The situation can be summarised as follows:

—

ongoing and strenuous efforts by trade unions to establish their new role in free-market economies and societies in which the private sector now contributes to growth;

| — | efforts to release employers' organisations from the strictures of state control, due to previous public ownership; the situation has changed now because after the collapse of the old regimes, the state played a special role in setting up new businesses and helping people to become entrepreneurs, who have received generous support from international investors; |
| --- | --- |

—

efforts to release employers' organisations from the strictures of state control, due to previous public ownership; the situation has changed now because after the collapse of the old regimes, the state played a special role in setting up new businesses and helping people to become entrepreneurs, who have received generous support from international investors;

| — | diverse — but in certain cases ineffective — efforts which require more coordinated cooperation. |
| --- | --- |

—

diverse — but in certain cases ineffective — efforts which require more coordinated cooperation.

| 2.8 | The social situation more generally in the Balkans remains problematic. Despite steps forward, social and political institutions and structures are not yet consolidated. The war created very deep rifts which have not yet been bridged. This means that the efforts of international and European organisations have not had the expected impact, which is due among other things to the lack of a single model of social dialogue and dialogue involving civil society organisations in which the various groups and organisations of civil society should play distinct, very clear roles in terms of their rights, remits and obligations. |
| --- | --- |

2.8

The social situation more generally in the Balkans remains problematic. Despite steps forward, social and political institutions and structures are not yet consolidated. The war created very deep rifts which have not yet been bridged. This means that the efforts of international and European organisations have not had the expected impact, which is due among other things to the lack of a single model of social dialogue and dialogue involving civil society organisations in which the various groups and organisations of civil society should play distinct, very clear roles in terms of their rights, remits and obligations.

3.   General situation of civil society organisations

3.1   Social partners

With the conclusion of free-trade agreements in the Balkans it is now necessary to establish formal representation of the social partners in the region and at the same time establish integrated representational structures at national level.

The European capacity-building programmes (5) are essential, in relation especially to trade unions' and employers' associations operating on the periphery. Best practice is needed for interregional cooperation since the social partners should address regional issues through cooperation in the run-up to a single Free Trade Agreement in 2006.

Engaging the public sector in the countries concerned is often a struggle, and public-private dialogue must be ensured and promoted.

3.2   Other organisations

Existing civil society organisations in the Balkans can be grouped into four general categories: (a) organisations set up to oppose the old regimes, (b) NGOs whose operations are depend entirely on donations and which were set up to implement international development aid programmes, (c) highly specialised organisations which usually work with the most vulnerable groups and (d) farmers' unions.

Sustainability and donor independence are the most important issues that must be addressed in the immediate future. Since organisations of the first type have generally existed for longer and are directly involved in the political debate, they have become widely recognised. However, they are facing serious difficulties in ensuring financial sustainability. Organisations in the second group are much less visible and very numerous, and seem to have been set up to meet the wishes of the donor community. The majority of these are certain to disappear owing to lack of donors.

Capacity-building and inter-NGO and regional cooperation must be addressed, but the most important issue is how to bridge the critical gap as international funds are reduced and local funding is not yet available. There is a risk that much of the social capital built up by civil society will be lost and that there will be a return to violence.

4.   Structural problems of the Western Balkans and their effect on the development of organised civil society

4.1   Corruption

This is the most serious structural problem, and is due to inefficient public administration, the lack of a serious and effective institutional and legal framework, the absence of an independent judiciary, the unfavourable economic conditions, poverty and the absence of substantial action by civil society organisations.

4.2   Violation of human, individual and social rights

Despite the efforts of international organisations — which are not always successful — violations of individual rights by the authorities are still regularly observed. The biggest problem, however, is that the judiciary appears quite unaware of the role it should play here.

The countries' accession in principle to the institutional framework of the Council of Europe is a positive development. However, in many situations the absence of a political will to see implementation through, and the intrusion of minority and religious divisions into the social dialogue, make it particularly difficult to achieve a broad climate of rapprochement and communication.

4.3   Ineffective governance — public administration

The political and social instability caused by radical internal political conflicts is the main cause of poor governance in the region, manifest in serious malfunctioning of public administration, which in turn encourages lack of accountability and corruption. International and European efforts to modernise public administration have not yet brought about any significant improvement.

4.4   Absence of dialogue with civil society

Social dialogue (6) with civil society organisations requires not just a legal framework, but also mutual respect between the parties concerned and efforts to understand and moderate opposing views, and above all a culture of conflict resolution. The Western Balkans region has never had real social dialogue because of the authoritarian regimes and sham organisations which were strictly controlled by the state. Undoubtedly, sufficient time must be allowed to achieve the necessary quality and depth in social dialogue.

4.5   Need for authenticated, representative civil society organisations

The plethora of civil society organisations raises legitimate questions as to the actual social situation in the region. Many of the organisations in question were set up at the request or insistence of international bodies, which fund them, and often provide the social welfare and assistance that should be delivered by the state. Yet others were set up on the initiative of international civil society organisations and other NGOs, which also directly influence their activities. And some are the result of local initiatives that conceal party-political, ethnic, minority or religious interests.

5.   Comments of the EESC on the social, political and economic situation in the Western Balkans and the European strategy

| 5.1 | The EU lost, at international and local level, a large part of its credibility in the Yugoslav crisis and in the course of the war in the formerly united Yugoslavia, because of its lack of specific intervention policies. |
| --- | --- |

5.1

The EU lost, at international and local level, a large part of its credibility in the Yugoslav crisis and in the course of the war in the formerly united Yugoslavia, because of its lack of specific intervention policies.

| 5.2 | In the context of the stabilisation and association process, the European Commission will need to define a clearer political strategy to confirm its presence in the region. The European Commission will need to increase its commitment to improving the quality of its actions and its image in the region. |
| --- | --- |

5.2

In the context of the stabilisation and association process, the European Commission will need to define a clearer political strategy to confirm its presence in the region. The European Commission will need to increase its commitment to improving the quality of its actions and its image in the region.

| 5.3 | It should be pointed out that in a number of regions of the Western Balkans, and especially in Kosovo (7), a feeling of security has not been established and peace has not been consolidated, because of ethnic tensions; the Union of Serbia and Montenegro does not meet the criteria for the creation of a democratic Union of States (8). |
| --- | --- |

5.3

It should be pointed out that in a number of regions of the Western Balkans, and especially in Kosovo (7), a feeling of security has not been established and peace has not been consolidated, because of ethnic tensions; the Union of Serbia and Montenegro does not meet the criteria for the creation of a democratic Union of States (8).

| 5.4 | Bosnia-Herzegovina and Kosovo are constructed political entities which have been imposed by international organisations and there is no certainty that they will be viable in the long term. There is therefore an immediate need for their political problems to be substantially solved in ways which will guarantee economic prosperity, protection of the rights of minority and religious groups and the strengthening of democratic structures guaranteed by international organisations. The of multilateral negotiations which started in 2005 under UN auspices, on the future of Kosovo, constitutes the only hope of solving this intractable problem. |
| --- | --- |

5.4

Bosnia-Herzegovina and Kosovo are constructed political entities which have been imposed by international organisations and there is no certainty that they will be viable in the long term. There is therefore an immediate need for their political problems to be substantially solved in ways which will guarantee economic prosperity, protection of the rights of minority and religious groups and the strengthening of democratic structures guaranteed by international organisations. The of multilateral negotiations which started in 2005 under UN auspices, on the future of Kosovo, constitutes the only hope of solving this intractable problem.

| 5.5 | The EESC believes that the EU should increase its presence in the region through strong, practical information and communication policies, and that it should clarify on the one hand its policy in the region, and on the other the cost for the countries concerned of their integration into the EU (9). |
| --- | --- |

5.5

The EESC believes that the EU should increase its presence in the region through strong, practical information and communication policies, and that it should clarify on the one hand its policy in the region, and on the other the cost for the countries concerned of their integration into the EU (9).

| 5.5.1 | The Copenhagen criteria should also be regarded as fundamental and non-negotiable for the countries of the Western Balkans which wish to accede to the EU. However, for the process to make substantial progress and for these criteria to be met, the EU will need to use its mechanisms to intervene directly not only in the institutional frameworks of the countries concerned, but also in putting the Community acquis into practice. |
| --- | --- |

5.5.1

The Copenhagen criteria should also be regarded as fundamental and non-negotiable for the countries of the Western Balkans which wish to accede to the EU. However, for the process to make substantial progress and for these criteria to be met, the EU will need to use its mechanisms to intervene directly not only in the institutional frameworks of the countries concerned, but also in putting the Community acquis into practice.

| 5.6 | In this context, the best way to develop a relevant integrated European strategy is through civil society and its organisations. More specifically, organised civil society provides a unique opportunity to ensure order in the long-term transition process and to guarantee that the cooperation and intervention programmes will prove to be genuinely effective for their final beneficiaries. |
| --- | --- |

5.6

In this context, the best way to develop a relevant integrated European strategy is through civil society and its organisations. More specifically, organised civil society provides a unique opportunity to ensure order in the long-term transition process and to guarantee that the cooperation and intervention programmes will prove to be genuinely effective for their final beneficiaries.

| 5.7 | The information available to the EESC and the relevant knowledge it has acquired about the region — especially after the setting up of the Western Balkans contact group — lead it to make the following conclusions and comments: |
| --- | --- |

5.7

The information available to the EESC and the relevant knowledge it has acquired about the region — especially after the setting up of the Western Balkans contact group — lead it to make the following conclusions and comments:

| 5.7.1 | Racial and ethnic disagreements can at any moment lead to extreme animosity in the Western Balkans; the tension is smouldering under the surface and can suddenly flare up. |
| --- | --- |

5.7.1

Racial and ethnic disagreements can at any moment lead to extreme animosity in the Western Balkans; the tension is smouldering under the surface and can suddenly flare up.

| 5.7.2 | Civil society (10) has tentatively started to play its role, but this is usually based on foreign financing while know-how and credibility are absent in some cases. |
| --- | --- |

5.7.2

Civil society (10) has tentatively started to play its role, but this is usually based on foreign financing while know-how and credibility are absent in some cases.

| 5.7.3 | Acceptance of the EU's Charter of Fundamental Rights is a basic precondition which should be accepted by all the states of the region which wish to join the EU. |
| --- | --- |

5.7.3

Acceptance of the EU's Charter of Fundamental Rights is a basic precondition which should be accepted by all the states of the region which wish to join the EU.

| 5.7.4 | The countries of the Western Balkans need constant direct and substantial support, both in economic terms and in terms of know-how, in order to strengthen their newly established institutions and acquire the necessary democratic sensitivity. Provision of this assistance will need to be better coordinated and, in the case of the EU, require closer cooperation between the European Agency for Reconstruction and the EU delegations in the area. |
| --- | --- |

5.7.4

The countries of the Western Balkans need constant direct and substantial support, both in economic terms and in terms of know-how, in order to strengthen their newly established institutions and acquire the necessary democratic sensitivity. Provision of this assistance will need to be better coordinated and, in the case of the EU, require closer cooperation between the European Agency for Reconstruction and the EU delegations in the area.

| 5.7.5 | Basic preconditions for putting the social and economic life of the countries concerned back onto a normal footing are to strengthen the many-voiced and many-sided social dialogue and to create a democratic legal operating framework for civil society which will be applied in practice.
  In particular, strengthening the social dialogue requires:






  a) | recognising the role of the social partners; |
| --- | --- | --- |

5.7.5

Basic preconditions for putting the social and economic life of the countries concerned back onto a normal footing are to strengthen the many-voiced and many-sided social dialogue and to create a democratic legal operating framework for civil society which will be applied in practice.

In particular, strengthening the social dialogue requires:

a)

recognising the role of the social partners;

| b) | recognising the role of the autonomy of the social partners; |
| --- | --- |

b)

recognising the role of the autonomy of the social partners;

| c) | respect for the right of the representative organisations to be well informed, to be consulted and to express a view on all economic and social subjects. |
| --- | --- |

c)

respect for the right of the representative organisations to be well informed, to be consulted and to express a view on all economic and social subjects.

| 5.7.6 | There is also a need to stamp out corruption by establishing strict but, as far as possible, simple rules and to adhere to them rigorously through the use of new technologies. |
| --- | --- |

5.7.6

There is also a need to stamp out corruption by establishing strict but, as far as possible, simple rules and to adhere to them rigorously through the use of new technologies.

| 5.7.7 | Finally, civil society organisations need to be financed; this is the greatest problem for their development and particularly for the development of the dialogue. |
| --- | --- |

5.7.7

Finally, civil society organisations need to be financed; this is the greatest problem for their development and particularly for the development of the dialogue.

| 5.7.8 | The judiciary must become a mainstay of society. To that end it must be particularly supported and strengthened so that it can play its institutional role according to European models. |
| --- | --- |

5.7.8

The judiciary must become a mainstay of society. To that end it must be particularly supported and strengthened so that it can play its institutional role according to European models.

| 5.7.9 | Economic cooperation between the states of the area is the key to an overall integrated process of transition to the Community acquis. This cooperation will also help substantially to reduce tensions and create further opportunities for development and prosperity. |
| --- | --- |

5.7.9

Economic cooperation between the states of the area is the key to an overall integrated process of transition to the Community acquis. This cooperation will also help substantially to reduce tensions and create further opportunities for development and prosperity.

| 5.7.10 | The intercultural, interfaith and interethnic dialogue will facilitate the creation of channels for rapprochement and communication between the countries of the Western Balkans. The religious leaders of the area are called upon to play a vital role in this field, defusing tensions and supporting attempts to strengthen the dialogue. |
| --- | --- |

5.7.10

The intercultural, interfaith and interethnic dialogue will facilitate the creation of channels for rapprochement and communication between the countries of the Western Balkans. The religious leaders of the area are called upon to play a vital role in this field, defusing tensions and supporting attempts to strengthen the dialogue.

| 5.7.11 | The EESC takes the view that the economic development of the area can be achieved through support for direct foreign investment and the necessary privatisations which will transfer capital and know-how, will help to reduce the public sector and will constitute the beginning of substantial positive developments for all the remaining social and political problems. For this aim to be achieved, it is necessary for the banking sector, as well as the institutional framework, to operate reliably, applying the recognised and certified international rules, in order to stamp out corruption in all its forms (money laundering, smuggling etc.).
  The European Central Bank and the EIB are called upon to play a special coordinating role in the area. |
| --- | --- |

5.7.11

The EESC takes the view that the economic development of the area can be achieved through support for direct foreign investment and the necessary privatisations which will transfer capital and know-how, will help to reduce the public sector and will constitute the beginning of substantial positive developments for all the remaining social and political problems. For this aim to be achieved, it is necessary for the banking sector, as well as the institutional framework, to operate reliably, applying the recognised and certified international rules, in order to stamp out corruption in all its forms (money laundering, smuggling etc.).

The European Central Bank and the EIB are called upon to play a special coordinating role in the area.

| 5.7.12 | International organisations (IMF, World Bank, ILO, UN, etc.) need to cooperate more closely with the representative organisations of civil society to strengthen their role within each society in the Western Balkans area. |
| --- | --- |

5.7.12

International organisations (IMF, World Bank, ILO, UN, etc.) need to cooperate more closely with the representative organisations of civil society to strengthen their role within each society in the Western Balkans area.

| 5.7.13 | The EESC notes that the coordination between various EU bodies in the area has improved substantially. The European Agency for Reconstruction (EAR) manages programmes involving hundreds of millions of Euro, some of which depend on or lead to the development of human resources or more specifically workforce training. Mention should also be made of the work of the European Training Foundation (ETF) and CEDEFOP (European Centre for the Development of Vocational Training), which, thanks to its excellent cooperation with the ETF and its direct proximity, could put its rich experience and know-how at the disposal of the countries of the region. In addition to the EU agencies, the role of the Stability Pact should also be emphasised, although its future remains unclear, and this could weaken its influence in the region. |
| --- | --- |

5.7.13

The EESC notes that the coordination between various EU bodies in the area has improved substantially. The European Agency for Reconstruction (EAR) manages programmes involving hundreds of millions of Euro, some of which depend on or lead to the development of human resources or more specifically workforce training. Mention should also be made of the work of the European Training Foundation (ETF) and CEDEFOP (European Centre for the Development of Vocational Training), which, thanks to its excellent cooperation with the ETF and its direct proximity, could put its rich experience and know-how at the disposal of the countries of the region. In addition to the EU agencies, the role of the Stability Pact should also be emphasised, although its future remains unclear, and this could weaken its influence in the region.

6.   Proposals and recommendations of the EESC

| 6.1 | Role and responsibilities of the EESC
  With a view to bringing the economic, social and cultural reality in the Western Balkans closer in civil society terms to the corresponding Community acquis, a new view of the process is required. First and foremost, the experience acquired in the major enlargement through the Joint Consultative Committees (JCCs) must be put to good use, and there should be greater involvement of organised civil society in all stages of formulation and development of the relevant policies. Also needed is a more systematic and clearly institutional involvement of organised civil society from both sides in the political negotiations between the EU and the Balkan Governments. Finally, integrated measures are required according to region and objective. |
| --- | --- |

6.1

Role and responsibilities of the EESC

With a view to bringing the economic, social and cultural reality in the Western Balkans closer in civil society terms to the corresponding Community acquis, a new view of the process is required. First and foremost, the experience acquired in the major enlargement through the Joint Consultative Committees (JCCs) must be put to good use, and there should be greater involvement of organised civil society in all stages of formulation and development of the relevant policies. Also needed is a more systematic and clearly institutional involvement of organised civil society from both sides in the political negotiations between the EU and the Balkan Governments. Finally, integrated measures are required according to region and objective.

| 6.1.1 | With its considerable human resources and important know-how (11) acquired during the EU accession negotiations of the ten new Member States in the Joint Consultative Committees, but also in the Joint Consultative Committees with Bulgaria, Romania and Turkey which are still operating, the EESC feels it is particularly well-placed to play a more active role in the development of the above policies in conjunction and in cooperation with the Committee of the Regions and through the joint organisation of initiatives in the region. |
| --- | --- |

6.1.1

With its considerable human resources and important know-how (11) acquired during the EU accession negotiations of the ten new Member States in the Joint Consultative Committees, but also in the Joint Consultative Committees with Bulgaria, Romania and Turkey which are still operating, the EESC feels it is particularly well-placed to play a more active role in the development of the above policies in conjunction and in cooperation with the Committee of the Regions and through the joint organisation of initiatives in the region.

| 6.1.2 | The EESC has good information and contacts, particularly since the setting-up of the Western Balkans contact group and the visits of some of its members to the region; this information and these contacts enable it to serve the aims of the Thessaloniki Agenda on the more important economic, social and cultural subjects on which more active and more rapid adoption of European rules and positions in the countries of the Western Balkans is needed. |
| --- | --- |

6.1.2

The EESC has good information and contacts, particularly since the setting-up of the Western Balkans contact group and the visits of some of its members to the region; this information and these contacts enable it to serve the aims of the Thessaloniki Agenda on the more important economic, social and cultural subjects on which more active and more rapid adoption of European rules and positions in the countries of the Western Balkans is needed.

| 6.1.3 | In line with the above, the EESC attaches importance to its initiative for a Forum with the civil society organisations of the Western Balkans, to be held at its premises in 2006, because it will bring all the major civil society organisations of the Western Balkans into direct contact with the EESC and European bodies in general. It calls upon the Commission to support this particular initiative by every suitable means, to back up its initiatives in support of representative civil society organisations at national and regional level and to take due account of the results of the Forum. |
| --- | --- |

6.1.3

In line with the above, the EESC attaches importance to its initiative for a Forum with the civil society organisations of the Western Balkans, to be held at its premises in 2006, because it will bring all the major civil society organisations of the Western Balkans into direct contact with the EESC and European bodies in general. It calls upon the Commission to support this particular initiative by every suitable means, to back up its initiatives in support of representative civil society organisations at national and regional level and to take due account of the results of the Forum.

| 6.1.3.1 | The EESC is prepared, if asked, to make its services available to put civil society organisations in touch with their European counterparts, for the purposes of transferring know-how and making their activities in the Western Balkans more productive. |
| --- | --- |

6.1.3.1

The EESC is prepared, if asked, to make its services available to put civil society organisations in touch with their European counterparts, for the purposes of transferring know-how and making their activities in the Western Balkans more productive.

| 6.1.3.2 | The EESC is specifically interested in those civil society organisations that are in financial difficulty and have trouble covering their operating costs with their own funds. It therefore also supports their reinforcement as part of the implementation of the Stability Pact. |
| --- | --- |

6.1.3.2

The EESC is specifically interested in those civil society organisations that are in financial difficulty and have trouble covering their operating costs with their own funds. It therefore also supports their reinforcement as part of the implementation of the Stability Pact.

| 6.1.3.3 | The EESC is similarly interested in the problems of agricultural communities in the Western Balkans. For this reason, it urges the Commission to pay greater attention to these issues and offer the appropriate know-how and expertise necessary to bring the primary sector up to date. |
| --- | --- |

6.1.3.3

The EESC is similarly interested in the problems of agricultural communities in the Western Balkans. For this reason, it urges the Commission to pay greater attention to these issues and offer the appropriate know-how and expertise necessary to bring the primary sector up to date.

| 6.1.3.4 | The EESC takes the view that the promotion of economic reforms and economic development in the region is a very basic factor in solving structural problems. Support for SMEs (12) via their representative organisations is a basic precondition for the economic prosperity of the region and can be achieved through the application of best practice already applied in the EU Member States. The EESC has the necessary know-how and human resources to back any such efforts. |
| --- | --- |

6.1.3.4

The EESC takes the view that the promotion of economic reforms and economic development in the region is a very basic factor in solving structural problems. Support for SMEs (12) via their representative organisations is a basic precondition for the economic prosperity of the region and can be achieved through the application of best practice already applied in the EU Member States. The EESC has the necessary know-how and human resources to back any such efforts.

| 6.1.3.5 | In this respect and in cooperation with the European Commission, the EESC could participate in national and local information meetings with civil society. |
| --- | --- |

6.1.3.5

In this respect and in cooperation with the European Commission, the EESC could participate in national and local information meetings with civil society.

| 6.1.3.6 | The EESC could contribute to the dissemination of information on the activities of international organisations in the region which are linked with civil society organisations. In addition, in the context of the joint declaration between the Director-General of the ILO and the President of the EESC, it could develop joint activities with the ILO in the region, particularly to strengthen the social dialogue. |
| --- | --- |

6.1.3.6

The EESC could contribute to the dissemination of information on the activities of international organisations in the region which are linked with civil society organisations. In addition, in the context of the joint declaration between the Director-General of the ILO and the President of the EESC, it could develop joint activities with the ILO in the region, particularly to strengthen the social dialogue.

| 6.1.3.7 | The European Commission and the EESC should plan, initiate and support systematic analyses of the social situation in the Western Balkans and the progress made by civil society, centring in the main on the ‘investment effort/effectiveness’ relationship. ‘Performance indicators’ can be used (or new ones designed where none exist) for both hard and soft investment, so as to pinpoint any weaknesses or gaps in current EU policies and actions and make the necessary improvements or adjustments; for instance classifying the various civil society organisations according to certain basic characteristics (e.g. their raison d'être, aims, articles of association, geographical cover, operating methods and controls, sources and level of funding, etc.). |
| --- | --- |

6.1.3.7

The European Commission and the EESC should plan, initiate and support systematic analyses of the social situation in the Western Balkans and the progress made by civil society, centring in the main on the ‘investment effort/effectiveness’ relationship. ‘Performance indicators’ can be used (or new ones designed where none exist) for both hard and soft investment, so as to pinpoint any weaknesses or gaps in current EU policies and actions and make the necessary improvements or adjustments; for instance classifying the various civil society organisations according to certain basic characteristics (e.g. their raison d'être, aims, articles of association, geographical cover, operating methods and controls, sources and level of funding, etc.).

| 6.2 | The EESC is prepared to set up Joint Consultative Committees with all the states of the region as soon as conditions allow. |
| --- | --- |

6.2

The EESC is prepared to set up Joint Consultative Committees with all the states of the region as soon as conditions allow.

| 6.3 | The EESC, on the basis of the relevant experience and knowledge it has acquired through its contacts with civil society organisations in the countries of the Western Balkans, urges and recommends the following: |
| --- | --- |

6.3

The EESC, on the basis of the relevant experience and knowledge it has acquired through its contacts with civil society organisations in the countries of the Western Balkans, urges and recommends the following:

6.3.1   Recommendations to the national and regional political forces of the countries of the Western Balkans:

| 6.3.1.1 | The EESC recommends to the countries of the Western Balkans that they pursue their alignment with the Community acquis more actively, and particularly that part of it which concerns protection of individual, social and collective rights, through provisional National Development Plans comparable to the plan prepared by Turkey, in order to be ready to absorb assistance from the EU in future. |
| --- | --- |

6.3.1.1

The EESC recommends to the countries of the Western Balkans that they pursue their alignment with the Community acquis more actively, and particularly that part of it which concerns protection of individual, social and collective rights, through provisional National Development Plans comparable to the plan prepared by Turkey, in order to be ready to absorb assistance from the EU in future.

| 6.3.1.2 | The EESC calls upon the governments of those countries to intensify their efforts in favour of democratisation, and to support social cohesion by strengthening the dialogue with civil society organisations. |
| --- | --- |

6.3.1.2

The EESC calls upon the governments of those countries to intensify their efforts in favour of democratisation, and to support social cohesion by strengthening the dialogue with civil society organisations.

| 6.3.1.3 | The EESC calls upon all the parties involved to show respect particularly for national and religious minorities, safeguarding their individual, religious and political rights and protecting religious and cultural monuments. |
| --- | --- |

6.3.1.3

The EESC calls upon all the parties involved to show respect particularly for national and religious minorities, safeguarding their individual, religious and political rights and protecting religious and cultural monuments.

| 6.3.1.4 | The EESC welcomes the progress towards completion of the procedures with all the countries of the stabilisation and association agreements. |
| --- | --- |

6.3.1.4

The EESC welcomes the progress towards completion of the procedures with all the countries of the stabilisation and association agreements.

6.3.2   Recommendations to the political bodies of the Union:

| 6.3.2.1 | Given that the absence of know-how and of a legal framework leads to considerable problems of gender equality, environmental protection, and protection of consumers and disadvantaged groups in the region, the EESC calls upon the Commission to help the countries of the Western Balkans to achieve the necessary modernisation in a shorter time. |
| --- | --- |

6.3.2.1

Given that the absence of know-how and of a legal framework leads to considerable problems of gender equality, environmental protection, and protection of consumers and disadvantaged groups in the region, the EESC calls upon the Commission to help the countries of the Western Balkans to achieve the necessary modernisation in a shorter time.

| 6.3.2.2 | The EESC calls upon the Commission to initiate procedures for further strengthening of links between the EU and the states of the region following on from the individual stabilisation and association agreements concluded with the Former Yugoslav Republic of Macedonia and with Croatia, to step up efforts to complete the procedures also with the remaining states of the region and to demonstrate stronger political will and better coordination to promote all aspects of the Thessaloniki agenda (13). |
| --- | --- |

6.3.2.2

The EESC calls upon the Commission to initiate procedures for further strengthening of links between the EU and the states of the region following on from the individual stabilisation and association agreements concluded with the Former Yugoslav Republic of Macedonia and with Croatia, to step up efforts to complete the procedures also with the remaining states of the region and to demonstrate stronger political will and better coordination to promote all aspects of the Thessaloniki agenda (13).

| 6.3.2.3 | The EESC regards the Thessaloniki agenda as an important text on cooperation which, however, requires constant updating. |
| --- | --- |

6.3.2.3

The EESC regards the Thessaloniki agenda as an important text on cooperation which, however, requires constant updating.

| 6.3.2.4 | The EESC regards education as the most important field in which the EU should support the societies of the Western Balkans. Better education and reducing illiteracy can substantially mitigate the strong ethnic, religious and minority differences and, in conjunction with economic prosperity and the strengthening of democratic institutions, can lead the peoples of the Western Balkans to better levels of governance. The Commission can play an exceptionally important role in the field of education and culture, especially by developing support programmes for exchanges between scientific staff and training of new scientists. |
| --- | --- |

6.3.2.4

The EESC regards education as the most important field in which the EU should support the societies of the Western Balkans. Better education and reducing illiteracy can substantially mitigate the strong ethnic, religious and minority differences and, in conjunction with economic prosperity and the strengthening of democratic institutions, can lead the peoples of the Western Balkans to better levels of governance. The Commission can play an exceptionally important role in the field of education and culture, especially by developing support programmes for exchanges between scientific staff and training of new scientists.

| 6.3.2.5 | In this context it is necessary to draw particular attention to the EU's growing geopolitical, economic and social blind spot due to the absence of the Western Balkan countries from its structures. |
| --- | --- |

6.3.2.5

In this context it is necessary to draw particular attention to the EU's growing geopolitical, economic and social blind spot due to the absence of the Western Balkan countries from its structures.

| 6.3.2.6 | The EESC therefore recommends complete incorporation of the Western Balkans in the development strategy of the EU, through the strengthening of the Stabilisation and Association Process and further measures if necessary, because of the region's special difficulties. |
| --- | --- |

6.3.2.6

The EESC therefore recommends complete incorporation of the Western Balkans in the development strategy of the EU, through the strengthening of the Stabilisation and Association Process and further measures if necessary, because of the region's special difficulties.

| 6.3.2.7 | By the same token, better coordination between the political institutions of the Union is recommended, as well as between its consultative bodies (EESC and Committee of the Regions) with the aim of creating conditions for more effective development of the programme in question. |
| --- | --- |

6.3.2.7

By the same token, better coordination between the political institutions of the Union is recommended, as well as between its consultative bodies (EESC and Committee of the Regions) with the aim of creating conditions for more effective development of the programme in question.

| 6.3.2.8 | The EESC takes the view that the definitive settlement of the question of Kosovo's sovereign status is of vital importance for security, peace and stability in the region, and calls upon the Council, the Commission and the European Parliament, in keeping with their respective responsibilities, to contribute to the efforts of the UN and of the UN Secretary-General's Special Mediator. |
| --- | --- |

6.3.2.8

The EESC takes the view that the definitive settlement of the question of Kosovo's sovereign status is of vital importance for security, peace and stability in the region, and calls upon the Council, the Commission and the European Parliament, in keeping with their respective responsibilities, to contribute to the efforts of the UN and of the UN Secretary-General's Special Mediator.

| 6.3.2.9 | The EU should provide special visas for the representatives of organised civil society and those of representative organisations, and display greater general flexibility (14). |
| --- | --- |

6.3.2.9

The EU should provide special visas for the representatives of organised civil society and those of representative organisations, and display greater general flexibility (14).

| 6.3.2.10 | The EU must proceed with an assessment of workers' and employers' organisations in order to assess their articles of association, goals, organisation and working practices, sphere of activity (public or private sector), level of representation (among all businesses and workers or by sector), etc., with a view to the European Union having reliable organisations with which to cooperate. Analyses of this kind would be further facilitated were the EU to make the compilation and publication of the necessary data (i.e. transparency) a precondition for the approval of each type of support granted to public and private organisations and representative organs of civil society.
  This work could be conducted internally, i.e. by the institutional bodies of the EU (Commission, EESC, etc.) or, where necessary, entirely or in part by an external agent. |
| --- | --- |

6.3.2.10

The EU must proceed with an assessment of workers' and employers' organisations in order to assess their articles of association, goals, organisation and working practices, sphere of activity (public or private sector), level of representation (among all businesses and workers or by sector), etc., with a view to the European Union having reliable organisations with which to cooperate. Analyses of this kind would be further facilitated were the EU to make the compilation and publication of the necessary data (i.e. transparency) a precondition for the approval of each type of support granted to public and private organisations and representative organs of civil society.

This work could be conducted internally, i.e. by the institutional bodies of the EU (Commission, EESC, etc.) or, where necessary, entirely or in part by an external agent.

6.3.3   Recommendations to EU Member States bordering the Western Balkans and European civil society organisations

| 6.3.3.1 | The EESC recommends that EU Member States (such as Italy, Hungary Slovenia and Greece) act to strengthen civil society there, particularly regarding strategy, making the most of human resources, management and the Europeanisation of institutional and legislative structures. |
| --- | --- |

6.3.3.1

The EESC recommends that EU Member States (such as Italy, Hungary Slovenia and Greece) act to strengthen civil society there, particularly regarding strategy, making the most of human resources, management and the Europeanisation of institutional and legislative structures.

| 6.3.3.2 | At the same time, the EESC calls for greater awareness and dynamism on the part of European employers' and workers' organisations and European organised civil society more generally regarding the need to involve corresponding organisations in the Western Balkans in relevant European structures and operations. |
| --- | --- |

6.3.3.2

At the same time, the EESC calls for greater awareness and dynamism on the part of European employers' and workers' organisations and European organised civil society more generally regarding the need to involve corresponding organisations in the Western Balkans in relevant European structures and operations.

| 6.3.3.3 | This means that both the action taken by Member States surrounding the Western Balkans and the corresponding work of European civil society organisations must tie in with the above-mentioned medium- to long-term programme of economic, social and political development. |
| --- | --- |

6.3.3.3

This means that both the action taken by Member States surrounding the Western Balkans and the corresponding work of European civil society organisations must tie in with the above-mentioned medium- to long-term programme of economic, social and political development.

6.4   Financing

| 6.4.1 | The EU possesses a range of financial tools aimed at strengthening civil society in the Western Balkans. Meanwhile, other international organisations and countries grant development aid to a number of civil society organisations in the region. Although this type of aid is generally a good thing, there are a number of dangers relating mainly to the way in which it is given. The main problems with the application of foreign development aid in the Western Balkans are the following: |
| --- | --- |

6.4.1

The EU possesses a range of financial tools aimed at strengthening civil society in the Western Balkans. Meanwhile, other international organisations and countries grant development aid to a number of civil society organisations in the region. Although this type of aid is generally a good thing, there are a number of dangers relating mainly to the way in which it is given. The main problems with the application of foreign development aid in the Western Balkans are the following:

| 6.4.1.1 | International aid to the Western Balkans may be relatively substantial in economic terms but more often than not it is tied to priorities laid down by the donors that do not take into account the interests of local stakeholders and confuses initiatives for institutional change with isolated initiatives that do not tie in with the existing power and social structures or the interests and traditions of the countries receiving help. Frequently, all the work is given to NGOs in the countries receiving assistance and those NGOs are entirely dependent on the international aid programmes and propose initiatives that tie in with the priorities of the donors rather than the beneficiaries' needs. |
| --- | --- |

6.4.1.1

International aid to the Western Balkans may be relatively substantial in economic terms but more often than not it is tied to priorities laid down by the donors that do not take into account the interests of local stakeholders and confuses initiatives for institutional change with isolated initiatives that do not tie in with the existing power and social structures or the interests and traditions of the countries receiving help. Frequently, all the work is given to NGOs in the countries receiving assistance and those NGOs are entirely dependent on the international aid programmes and propose initiatives that tie in with the priorities of the donors rather than the beneficiaries' needs.

| 6.4.1.2 | The performance of international development aid programmes in the Western Balkans is undermined in particular by the lack of coordination between the various donors and the extremely short time-scale of programmes often funding one-off initiatives. In many cases initiatives that are starting to show positive results are abandoned because donors have suddenly changed their funding priorities, basing their programming on much smaller time-scales than those really needed in the countries of the Western Balkans. The funding mechanisms of the EU and the other international organisations must take on board the fact that the frequent changing of funding priorities is not effective. Training and capacity building programmes usually fall within this category. Similarly, support for institutions is increasingly piecemeal, often involving conferences and small seminars rather than genuine technical assistance. |
| --- | --- |

6.4.1.2

The performance of international development aid programmes in the Western Balkans is undermined in particular by the lack of coordination between the various donors and the extremely short time-scale of programmes often funding one-off initiatives. In many cases initiatives that are starting to show positive results are abandoned because donors have suddenly changed their funding priorities, basing their programming on much smaller time-scales than those really needed in the countries of the Western Balkans. The funding mechanisms of the EU and the other international organisations must take on board the fact that the frequent changing of funding priorities is not effective. Training and capacity building programmes usually fall within this category. Similarly, support for institutions is increasingly piecemeal, often involving conferences and small seminars rather than genuine technical assistance.

| 6.4.1.3 | Many NGOs work on social initiatives in order to generate an income. This has lessened the ability of such NGOs to forge real links with society and achieve their stated goals. Many NGOs mistake their role for that of technical support programme managers and operate on the basis of private-sector economic criteria aiming to secure greater funding. |
| --- | --- |

6.4.1.3

Many NGOs work on social initiatives in order to generate an income. This has lessened the ability of such NGOs to forge real links with society and achieve their stated goals. Many NGOs mistake their role for that of technical support programme managers and operate on the basis of private-sector economic criteria aiming to secure greater funding.

| 6.4.2 | In view of the need to address the above-mentioned problems so as to provide civil society organisations with more practical support, the EESC recommends the following with regard to the funding of such work: |
| --- | --- |

6.4.2

In view of the need to address the above-mentioned problems so as to provide civil society organisations with more practical support, the EESC recommends the following with regard to the funding of such work:

| 6.4.2.1 | The EU must target current development aid programmes and those planned for 2007-2013 mainly at the areas of democratic governance, economic administration and environmental management. |
| --- | --- |

6.4.2.1

The EU must target current development aid programmes and those planned for 2007-2013 mainly at the areas of democratic governance, economic administration and environmental management.

| 6.4.2.2 | The governments of the Western Balkans must develop clear operational programmes to empower civil society, and these programmes must be discussed with the EU. It is therefore proposed that regular contact should be established between the Commission, the EESC and local governments for the development of such programmes. |
| --- | --- |

6.4.2.2

The governments of the Western Balkans must develop clear operational programmes to empower civil society, and these programmes must be discussed with the EU. It is therefore proposed that regular contact should be established between the Commission, the EESC and local governments for the development of such programmes.

| 6.4.2.3 | A particularly robust system is needed to monitor the results of development aid programmes in the field of civil society. The EESC could play a major role in such a system. |
| --- | --- |

6.4.2.3

A particularly robust system is needed to monitor the results of development aid programmes in the field of civil society. The EESC could play a major role in such a system.

| 6.4.2.4 | The planning of development aid programmes must be tailored to the practical needs of civil society. Development aid aimed at the creation of new civil society institutions could make extensive use of EESC technical support. |
| --- | --- |

6.4.2.4

The planning of development aid programmes must be tailored to the practical needs of civil society. Development aid aimed at the creation of new civil society institutions could make extensive use of EESC technical support.

| 6.4.2.5 | After the Forum on the Western Balkans to be organised by the EESC, a permanent management working group could be set up by the EESC Contact Group and representatives of organised civil society in the Western Balkans. This group would help civil society organisations shape their strategies and operational agenda, and would supply best practice and know-how to bolster civil society in the EU Member States and the countries of the Western Balkans. |
| --- | --- |

6.4.2.5

After the Forum on the Western Balkans to be organised by the EESC, a permanent management working group could be set up by the EESC Contact Group and representatives of organised civil society in the Western Balkans. This group would help civil society organisations shape their strategies and operational agenda, and would supply best practice and know-how to bolster civil society in the EU Member States and the countries of the Western Balkans.

| 6.4.2.6 | In the EU's Financial Perspective for 2007-2013 the ‘territorial cooperation’ objective must give consideration to the financial means earmarked to assist third countries. Financing mechanisms for third countries must be simplified, without of course sacrificing existing transparency, and be strengthened in neighbourhood policies. The experience of programmes such as CADSES must be put to use and propagated. |
| --- | --- |

6.4.2.6

In the EU's Financial Perspective for 2007-2013 the ‘territorial cooperation’ objective must give consideration to the financial means earmarked to assist third countries. Financing mechanisms for third countries must be simplified, without of course sacrificing existing transparency, and be strengthened in neighbourhood policies. The experience of programmes such as CADSES must be put to use and propagated.

| 6.4.2.7 | While planning development aid programmes for civil society, the EU must take into account the development programmes of other international organisations. Cooperation with the programmes and special services of the UN should be deepened and extended to operational level. |
| --- | --- |

6.4.2.7

While planning development aid programmes for civil society, the EU must take into account the development programmes of other international organisations. Cooperation with the programmes and special services of the UN should be deepened and extended to operational level.

Brussels, 17 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  The definition of civil society here is the same as in previous EESC opinions, i.e.: (1) organisations of employers and employees, (2) organisations representing other economic and social interests, (3) non-governmental organisations (NGOs), (4) grassroots organisations, (5) religious associations.

1

(2)  EESC opinion on Promoting the involvement of Civil Society Organisations in South-East Europe (SEE) – Past Experiences and Future Challenges (rapporteur: Mr Wilkinson, OJ C 208 of 3.9.2003, p. 82).

2

Promoting the involvement of Civil Society Organisations in South-East Europe (SEE) – Past Experiences and Future Challenges

(3)  EESC opinions on The role and contribution of civil society organisations in the building of Europe (OJ C 329 of 11.11.1999) and on Organised civil society and European governance: the Committee's contribution to the drafting of the White Paper (OJ C 193 of 10.7. 2001).

3

The role and contribution of civil society organisations in the building of Europe

Organised civil society and European governance: the Committee's contribution to the drafting of the White Paper

(4)  EESC opinions on The role of civil society in the new European strategy for the Western Balkans (rapporteur: Mr Confalonieri, OJ C 80 of 30.3.2004, p. 158) and on Promoting the involvement of Civil Society Organisations in South-East Europe (SEE) – Past Experiences and Future Challenges (rapporteur: Mr Wilkinson, OJ C 208 of 3.9.2003, p. 82).

4

The role of civil society in the new European strategy for the Western Balkans

Promoting the involvement of Civil Society Organisations in South-East Europe (SEE) – Past Experiences and Future Challenges

(5)  CARDS (Community Assistance for Reconstruction, Development and Stabilisation), Council Regulation (EC) No 2666/2000 of 5 December 2000.

5

(6)  Conference on Strengthening Social Dialogue in the Western Balkan Countries, DG Employment, Social Affairs and Equal Opportunities, 6–7 Oct. 2005, Skopje.

6

(7)  EP Resolution P6_TA(2005)0131: Regional integration in the western Balkans – EP resolution on the state of regional integration in the Western Balkans.

7

(8)  The Austrian EU Presidency 2006 – Federal Minister of Foreign Affairs – 23 November 2005 – European Foreign Policy.

8

(9)  EESC opinion on The role of civil society in the new European strategy for Western Balkans, 10 December 2003 (rapporteur: Mr Confalonieri, OJ C 80 of 30.3.2004, p. 158).

9

The role of civil society in the new European strategy for Western Balkans

(10)  EP Resolution P6_TA(2005)0131.

10

(11)  The EESC has so far made the following contributions on the Western Balkans: (1) Information report on Relations between the European Union and certain countries in south-east Europe, adopted on 23.7.1998 (rapporteur: Mr Sklavounos, CES 1025/98 fin), (2) Own-initiative opinion on Development of human resources in the Western Balkans (rapporteur: Mr Sklavounos, OJ C 193 of 10.7.2001, p. 99), (3) Action plan on The promotion of the culture and practice of social dialogue and of the participation of civil society and related networks in the South East Europe region, in cooperation with the European Institute for Vocational Training (EIVT) and the International Labour Organisation (ILO), (4) Own-initiative opinion on Promoting the involvement of Civil Society Organisations in South-East Europe (SEE) – Past Experiences and Future Challenges (rapporteur: Mr Wilkinson, OJ C 208 of 3.9.2003, p. 82), (5) Exploratory opinion on The role of civil society in the new European strategy for the Western Balkans (rapporteur: Mr Confalonieri, OJ C 80 of 30.3.2004, p. 158), (6) EESC Opinion on a Wider Europe – Neighbourhood: A New Framework for Relations with our Eastern and Southern Neighbours (rapporteur: Ms Alleweldt (OJ C 80 of 30.3.2004, p. 148).

11

Relations between the European Union and certain countries in south-east Europe

Development of human resources in the Western Balkans

The promotion of the culture and practice of social dialogue and of the participation of civil society and related networks in the South East Europe region

Promoting the involvement of Civil Society Organisations in South-East Europe (SEE) – Past Experiences and Future Challenges

The role of civil society in the new European strategy for the Western Balkans

Wider Europe – Neighbourhood: A New Framework for Relations with our Eastern and Southern Neighbours

(12)  Communication from the Commission to the Council and the European Parliament: The Western Balkans and European integration. COM(2003) 285 final – 21.5.2003.

12

(13)  The Thessaloniki agenda for the Western Balkans: Extracts from successive General Affairs and External Relations Council, 16 June 2003.

13

(14)  EP Resolution P6_TA(2005)0131.

14

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/96 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/96

---

Opinion of the European Economic and Social Committee on the EU campaign to conserve biodiversity: position and contribution of civil society

(2006/C 195/24)

In a letter dated 13 September 2005, the Austrian presidency, acting under Article 262 of the EC Treaty, asked the European Economic and Social Committee to draw up an exploratory opinion on the: EU campaign to conserve biodiversity: position and contribution of civil society.

The Section for Agriculture, Rural Development and the Environment, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 26 April 2006. The rapporteur was Mr Ribbe.

At its 427th plenary session, held on 17 and 18 May 2006 (meeting of 18 May), the European Economic and Social Committee adopted the following opinion by 125 votes to none, with four abstentions:

1.   Summary of the Committee's conclusions and recommendations

| 1.1 | Biodiversity is the foundation and guarantee of life on our planet. Economic self-interest alone dictates that humanity must strive to keep ecosystems stable. We also owe a debt of responsibility to the natural world to maintain species diversity. Protecting biodiversity is not some ‘luxury’ to be indulged in or dispensed with at will. |
| --- | --- |

1.1

Biodiversity is the foundation and guarantee of life on our planet. Economic self-interest alone dictates that humanity must strive to keep ecosystems stable. We also owe a debt of responsibility to the natural world to maintain species diversity. Protecting biodiversity is not some ‘luxury’ to be indulged in or dispensed with at will.

| 1.2 | Humanity itself is the greatest beneficiary of biodiversity; yet it is humanity that is, at the moment, the main cause of its decline. |
| --- | --- |

1.2

Humanity itself is the greatest beneficiary of biodiversity; yet it is humanity that is, at the moment, the main cause of its decline.

| 1.3 | As the EESC sees it, biodiversity in Europe remains under extreme threat. EU action to date has not been enough to halt the decline of the past few decades. |
| --- | --- |

1.3

As the EESC sees it, biodiversity in Europe remains under extreme threat. EU action to date has not been enough to halt the decline of the past few decades.

| 1.4 | The EESC welcomes the commitment of all the European institutions and, as contracting parties to the Convention on Biological Diversity, of the EU Member States not only to halt but also to reverse this decline. |
| --- | --- |

1.4

The EESC welcomes the commitment of all the European institutions and, as contracting parties to the Convention on Biological Diversity, of the EU Member States not only to halt but also to reverse this decline.

| 1.5 | That said, however, the EESC laments the huge gulf that has grown up between ideal and reality: public authorities have so far failed to make the contribution to conserving biodiversity that might have been expected of them. In fact, in this field, it is their duty to be role models; instead, planning decisions and support schemes are often instrumental in imperilling biodiversity still further. Moreover, in the 2007-2013 funding period, particular savings are to be made in precisely those EU policy areas that are of key importance for biodiversity protection. |
| --- | --- |

1.5

That said, however, the EESC laments the huge gulf that has grown up between ideal and reality: public authorities have so far failed to make the contribution to conserving biodiversity that might have been expected of them. In fact, in this field, it is their duty to be role models; instead, planning decisions and support schemes are often instrumental in imperilling biodiversity still further. Moreover, in the 2007-2013 funding period, particular savings are to be made in precisely those EU policy areas that are of key importance for biodiversity protection.

| 1.6 | Biodiversity loss is an insidious process that has been going on for many years. As fewer and fewer people have any direct connection with the natural environment, there is relatively little sense of personal concern — and thus relatively little political pressure for change. This must not set policymakers' minds at ease, however. On the contrary, it is essential to draw up counterstrategies. |
| --- | --- |

1.6

Biodiversity loss is an insidious process that has been going on for many years. As fewer and fewer people have any direct connection with the natural environment, there is relatively little sense of personal concern — and thus relatively little political pressure for change. This must not set policymakers' minds at ease, however. On the contrary, it is essential to draw up counterstrategies.

| 1.7 | Just as civil society needs to be better informed of the background to — and indeed the point of — biodiversity conservation, so also there is a need to train and educate local, regional and national officials and public employees, since many are wholly unaware of the issues at stake and often have no motivation to act. |
| --- | --- |

1.7

Just as civil society needs to be better informed of the background to — and indeed the point of — biodiversity conservation, so also there is a need to train and educate local, regional and national officials and public employees, since many are wholly unaware of the issues at stake and often have no motivation to act.

| 1.8 | The EESC feels that a campaign to conserve biodiversity of the kind being considered by the EU presidency is a useful step and an opportunity for civil society both to have practical input and — something that is particularly important — to help raise awareness of the issues involved. However, a campaign of this kind cannot make up for the existing shortcomings that the EU itself has identified. Nor must it under any circumstances convey the impression that the problems are solely or chiefly the result of inadequate commitment on the part of civil society. |
| --- | --- |

1.8

The EESC feels that a campaign to conserve biodiversity of the kind being considered by the EU presidency is a useful step and an opportunity for civil society both to have practical input and — something that is particularly important — to help raise awareness of the issues involved. However, a campaign of this kind cannot make up for the existing shortcomings that the EU itself has identified. Nor must it under any circumstances convey the impression that the problems are solely or chiefly the result of inadequate commitment on the part of civil society.

| 1.9 | More overtly positive, practical examples and prototype projects are needed. There must be more action to raise awareness of the intrinsic and practical value of landscapes and of biodiversity in general. Commitment is also needed by public role models. It is, after all, a question of preserving the very foundations of human existence. |
| --- | --- |

1.9

More overtly positive, practical examples and prototype projects are needed. There must be more action to raise awareness of the intrinsic and practical value of landscapes and of biodiversity in general. Commitment is also needed by public role models. It is, after all, a question of preserving the very foundations of human existence.

2.   The Committee opinion: main features and background

| 2.1 | In a letter dated 13 September 2005, the Austrian presidency asked the EESC to draft an exploratory opinion on the EU campaign to conserve biodiversity: position and contribution of civil society. In terms of both content and policy, an opinion of this kind could, as the letter points out, be helpful to the Council and the Commission as they pursue the objective of halting biodiversity decline by 2010 (1). |
| --- | --- |

2.1

In a letter dated 13 September 2005, the Austrian presidency asked the EESC to draft an exploratory opinion on the EU campaign to conserve biodiversity: position and contribution of civil society. In terms of both content and policy, an opinion of this kind could, as the letter points out, be helpful to the Council and the Commission as they pursue the objective of halting biodiversity decline by 2010 (1).

| 2.2 | The letter proposes that the EESC might consider the following aspects:






  — | the causes of biodiversity loss; |
| --- | --- | --- |

2.2

The letter proposes that the EESC might consider the following aspects:

—

the causes of biodiversity loss;

| — | whether the measures taken so far by the Council and the Commission to achieve this goal are sufficient; |
| --- | --- |

—

whether the measures taken so far by the Council and the Commission to achieve this goal are sufficient;

| — | whether the various EU policies are coherent; |
| --- | --- |

—

whether the various EU policies are coherent;

| — | what other measures have to be taken by the Commission and the Member States; |
| --- | --- |

—

what other measures have to be taken by the Commission and the Member States;

| — | what consequences this will have in relation to the Lisbon and sustainable development strategies; and |
| --- | --- |

—

what consequences this will have in relation to the Lisbon and sustainable development strategies; and

| — | what contribution can be made by civil society. |
| --- | --- |

—

what contribution can be made by civil society.

| 2.3 | The Austrian presidency's request no doubt stems from the point made in the letter itself, namely that: ‘current data from various research bodies and institutes, including Eurostat, show that, despite efforts made so far, biodiversity both in Europe and across the world is in steady decline, with no reversal of the trend at present in sight. In its communications as part of the EU sustainability strategy review process, the European Commission also assumes a negative trend in this area.’ |
| --- | --- |

2.3

The Austrian presidency's request no doubt stems from the point made in the letter itself, namely that: ‘current data from various research bodies and institutes, including Eurostat, show that, despite efforts made so far, biodiversity both in Europe and across the world is in steady decline, with no reversal of the trend at present in sight. In its communications as part of the EU sustainability strategy review process, the European Commission also assumes a negative trend in this area.’

| 2.4 | The EESC thanks the presidency for approaching it on this key issue. It will now consider the issues involved, respond to each in turn and explore some ideas for a possible campaign. |
| --- | --- |

2.4

The EESC thanks the presidency for approaching it on this key issue. It will now consider the issues involved, respond to each in turn and explore some ideas for a possible campaign.

3.   General comments

| 3.1 | Biodiversity is the foundation of life on our planet. Without it, humanity would be doomed: plants, which convert sunlight into biomass, form the basis of the earth's energy and substance flows that are the very fabric of people's day-to-day lives as they breathe, eat and work. And human life and activity would also be impossible without those species that make use of and convert our waste ‘products’. |
| --- | --- |

3.1

Biodiversity is the foundation of life on our planet. Without it, humanity would be doomed: plants, which convert sunlight into biomass, form the basis of the earth's energy and substance flows that are the very fabric of people's day-to-day lives as they breathe, eat and work. And human life and activity would also be impossible without those species that make use of and convert our waste ‘products’.

| 3.2 | It follows, then, that biodiversity is not something that society can ‘indulge in’ whenever it considers it important to do so but which can be dispensed with when other apparent priorities need to be set. Biodiversity is an absolute necessity. |
| --- | --- |

3.2

It follows, then, that biodiversity is not something that society can ‘indulge in’ whenever it considers it important to do so but which can be dispensed with when other apparent priorities need to be set. Biodiversity is an absolute necessity.

| 3.3 | In the 2003 environment policy review
   (2), the Commission explains what is at stake in the biodiversity issue: ‘Biodiversity reflects the complexity, balance and status of the various ecosystems. Not only does biodiversity perform essential life support functions but it also provides the basis for important economic, recreational and cultural activities.’ |
| --- | --- |

3.3

In the 2003 environment policy review
   (2), the Commission explains what is at stake in the biodiversity issue: ‘Biodiversity reflects the complexity, balance and status of the various ecosystems. Not only does biodiversity perform essential life support functions but it also provides the basis for important economic, recreational and cultural activities.’

| 3.4 | The literal translation of biodiversity is ‘variety of life’ but the term can be used on a number of different levels. It can be used to mean the genetic diversity within a particular population, and also the degree of species diversity within a particular habitat. |
| --- | --- |

3.4

The literal translation of biodiversity is ‘variety of life’ but the term can be used on a number of different levels. It can be used to mean the genetic diversity within a particular population, and also the degree of species diversity within a particular habitat.

| 3.5 | As intelligent beings, humans are the main beneficiaries of biodiversity. No other living species makes use of — or draws advantage from — so many other species than humankind. Yet humanity is now also the main destroyer of biodiversity. The distinction we make between ‘useful’ and ‘harmful’ species is purely economic and anthropocentric. Such distinctions are not found in the natural world, which knows only balanced relationships that that are largely self-regulating. Biodiversity is one of the key indicators of sustainability. |
| --- | --- |

3.5

As intelligent beings, humans are the main beneficiaries of biodiversity. No other living species makes use of — or draws advantage from — so many other species than humankind. Yet humanity is now also the main destroyer of biodiversity. The distinction we make between ‘useful’ and ‘harmful’ species is purely economic and anthropocentric. Such distinctions are not found in the natural world, which knows only balanced relationships that that are largely self-regulating. Biodiversity is one of the key indicators of sustainability.

| 3.6 | Any uncontrolled shifts in these balances pose a problem for those with a stake in maintaining stability. Human activity — wide in its range and largely economic in its focus — impacts and influences ecological balances. This has been the case for thousands of years and, in earlier times, some activities — extensive land-use practices, for instance — often even spawned new and, in turn, largely stable systems. Today, however, human impact on biodiversity has grown to unprecedented levels. Humanity has created a wealth of possibilities for itself, with the result that species composition is no longer just altered slightly but is, in many cases, completely destroyed. |
| --- | --- |

3.6

Any uncontrolled shifts in these balances pose a problem for those with a stake in maintaining stability. Human activity — wide in its range and largely economic in its focus — impacts and influences ecological balances. This has been the case for thousands of years and, in earlier times, some activities — extensive land-use practices, for instance — often even spawned new and, in turn, largely stable systems. Today, however, human impact on biodiversity has grown to unprecedented levels. Humanity has created a wealth of possibilities for itself, with the result that species composition is no longer just altered slightly but is, in many cases, completely destroyed.

Point of departure and causes of biodiversity loss

| 3.7 | In its letter to the EESC (see point 2.3 above), the presidency outlined in clear and unmistakeable terms the current state of play in the field of biodiversity conservation. Its analysis ties in with, among other things, the United Nations Environment Programme report on biological diversity which states that biodiversity across the world is declining faster than ever before. |
| --- | --- |

3.7

In its letter to the EESC (see point 2.3 above), the presidency outlined in clear and unmistakeable terms the current state of play in the field of biodiversity conservation. Its analysis ties in with, among other things, the United Nations Environment Programme report on biological diversity which states that biodiversity across the world is declining faster than ever before.

| 3.8 | As early as 1998, the EU had noted in its biodiversity strategy (3) that the situation in Europe was a matter of grave concern: ‘The rich biodiversity of the European Union has been subject to slow changes over the centuries, due to the impact of human activities. The scale of this impact has accelerated dramatically in the last few decades. The Assessment by UNEP confirms that in some European countries up to 24 % of species of certain groups such as butterflies, birds and mammals are now nationally extinct.’ |
| --- | --- |

3.8

As early as 1998, the EU had noted in its biodiversity strategy (3) that the situation in Europe was a matter of grave concern: ‘The rich biodiversity of the European Union has been subject to slow changes over the centuries, due to the impact of human activities. The scale of this impact has accelerated dramatically in the last few decades. The Assessment by UNEP confirms that in some European countries up to 24 % of species of certain groups such as butterflies, birds and mammals are now nationally extinct.’

| 3.9 | The 2001 Gothenburg strategy for sustainable development (4) states: ‘The loss of biodiversity in Europe has accelerated dramatically in recent decades’. The EESC points out that today's species extinction rate is between a hundred and a thousand times higher than the natural rate; a quite recent study drawn up by the University of Utrecht even starts from the assumption that the present rate of extinction is between one thousand and ten thousand times higher than the natural rate. |
| --- | --- |

3.9

The 2001 Gothenburg strategy for sustainable development (4) states: ‘The loss of biodiversity in Europe has accelerated dramatically in recent decades’. The EESC points out that today's species extinction rate is between a hundred and a thousand times higher than the natural rate; a quite recent study drawn up by the University of Utrecht even starts from the assumption that the present rate of extinction is between one thousand and ten thousand times higher than the natural rate.

| 3.10 | The causes of biodiversity decline are many and varied. Broadly speaking, biodiversity is lost when fauna and flora habitats are destroyed or substantively altered. The causes are, essentially: the fragmentation of natural habitats as a result of infrastructure and urbanisation; the input of nutrients; the fact that habitats are being built over; mass tourism; and water and air pollution. |
| --- | --- |

3.10

The causes of biodiversity decline are many and varied. Broadly speaking, biodiversity is lost when fauna and flora habitats are destroyed or substantively altered. The causes are, essentially: the fragmentation of natural habitats as a result of infrastructure and urbanisation; the input of nutrients; the fact that habitats are being built over; mass tourism; and water and air pollution.

| 3.11 | Agriculture in Europe has a particular, almost dual role to play in this process. Historically, extensive and highly varied farming practices did, in the first instance, help boost biodiversity. However, many of these extensive practices have long ceased to be economical, and have therefore been replaced by more intensive uses that have a greater impact on the natural processes. This has a twofold effect on biodiversity. Not only does intensive farming play a major role in biodiversity decline, but valuable biotopes are also lost through land being abandoned or, on sites that were formerly farmed extensively or in a near-natural way, being allowed to fall permanently fallow or undergoing a change of use. Depending on how it is practised, therefore, agriculture either benefits or harms biodiversity. |
| --- | --- |

3.11

Agriculture in Europe has a particular, almost dual role to play in this process. Historically, extensive and highly varied farming practices did, in the first instance, help boost biodiversity. However, many of these extensive practices have long ceased to be economical, and have therefore been replaced by more intensive uses that have a greater impact on the natural processes. This has a twofold effect on biodiversity. Not only does intensive farming play a major role in biodiversity decline, but valuable biotopes are also lost through land being abandoned or, on sites that were formerly farmed extensively or in a near-natural way, being allowed to fall permanently fallow or undergoing a change of use. Depending on how it is practised, therefore, agriculture either benefits or harms biodiversity.

| 3.12 | Other key causes of biodiversity loss are: plant succession; the shift in the competitive balance (caused, among other things, by nutrient inputs); the afforestation of unwooded areas; the introduction of foreign species; and overfishing. |
| --- | --- |

3.12

Other key causes of biodiversity loss are: plant succession; the shift in the competitive balance (caused, among other things, by nutrient inputs); the afforestation of unwooded areas; the introduction of foreign species; and overfishing.

| 3.12.1 | New and hitherto less important causes may also make the situation much worse in the future. In its recent report (5), the European Environment Agency cites predicted climate change as a huge and perhaps, in the future, even predominant threat resulting in irreversible biodiversity shifts. |
| --- | --- |

3.12.1

New and hitherto less important causes may also make the situation much worse in the future. In its recent report (5), the European Environment Agency cites predicted climate change as a huge and perhaps, in the future, even predominant threat resulting in irreversible biodiversity shifts.

| 3.12.2 | The use of green genetic technology is another potential new danger to biodiversity in Europe. The commercial cultivation of genetically modified plants could, researchers believe, have a major impact on the surrounding flora — and thus also on butterflies and bees. These are the findings of a three-year study commissioned by the British government and involving over 150 researchers (6). The EESC calls upon the Commission to provide strong support for research activities in this area. |
| --- | --- |

3.12.2

The use of green genetic technology is another potential new danger to biodiversity in Europe. The commercial cultivation of genetically modified plants could, researchers believe, have a major impact on the surrounding flora — and thus also on butterflies and bees. These are the findings of a three-year study commissioned by the British government and involving over 150 researchers (6). The EESC calls upon the Commission to provide strong support for research activities in this area.

| 3.13 | A specific example may be used to illustrate the potential impact of this biodiversity loss. Pollinator insects, for instance, are clearly in numerical and — according to the FAO –worldwide decline. The pollination systems of flowering plants have evolved and, at the same time, adapted to changes in pollinator insects, which, in turn, have developed more efficient nectar and pollen collection mechanisms. For pollinated plants, this has helped make for improved seed production and dispersal. Cross-pollination by insects boosts genetic diversity and results in more resistant seed and a higher-quality yield. Between 70 % and 95 % of pollinator insects are classed as hymenopterans (‘membrane-winged’), a genus to which the domestic honeybee also belongs. The decline in the pollinator insect population may have a devastating impact, not least economically. |
| --- | --- |

3.13

A specific example may be used to illustrate the potential impact of this biodiversity loss. Pollinator insects, for instance, are clearly in numerical and — according to the FAO –worldwide decline. The pollination systems of flowering plants have evolved and, at the same time, adapted to changes in pollinator insects, which, in turn, have developed more efficient nectar and pollen collection mechanisms. For pollinated plants, this has helped make for improved seed production and dispersal. Cross-pollination by insects boosts genetic diversity and results in more resistant seed and a higher-quality yield. Between 70 % and 95 % of pollinator insects are classed as hymenopterans (‘membrane-winged’), a genus to which the domestic honeybee also belongs. The decline in the pollinator insect population may have a devastating impact, not least economically.

| 3.14 | Given the wealth of studies and statements on the dramatic decline in biodiversity, the Committee need not concern itself in this opinion with delving deeper into the individual causes, let alone raising awareness of the issue. All policymakers should be fully alive to the problem. There is no lack of pertinent data on the subject. |
| --- | --- |

3.14

Given the wealth of studies and statements on the dramatic decline in biodiversity, the Committee need not concern itself in this opinion with delving deeper into the individual causes, let alone raising awareness of the issue. All policymakers should be fully alive to the problem. There is no lack of pertinent data on the subject.

| 3.15 | The EESC is pleased that all the EU institutions consistently express their commitment to maintaining biodiversity. Yet despite political commitments and policy statements of every kind, despite the signing of the Convention on Biological Diversity, which has been ratified by all 25 EU Member States and by the EU, and despite sensible nature protection provisions adopted at EU level — including the 1979 Birds Directive (7) and the 1992 directive on the conservation of natural habitats and of wild fauna and flora (Habitats Directive) (8) — biodiversity continues to decline. |
| --- | --- |

3.15

The EESC is pleased that all the EU institutions consistently express their commitment to maintaining biodiversity. Yet despite political commitments and policy statements of every kind, despite the signing of the Convention on Biological Diversity, which has been ratified by all 25 EU Member States and by the EU, and despite sensible nature protection provisions adopted at EU level — including the 1979 Birds Directive (7) and the 1992 directive on the conservation of natural habitats and of wild fauna and flora (Habitats Directive) (8) — biodiversity continues to decline.

| 3.16 | At the UN World Summit on Sustainable Development (WSSD) in Johannesburg, the parties committed themselves to significantly reducing the rate of biodiversity loss by 2010. The EU has gone even further by committing itself to halting biodiversity decline by 2010 (9). |
| --- | --- |

3.16

At the UN World Summit on Sustainable Development (WSSD) in Johannesburg, the parties committed themselves to significantly reducing the rate of biodiversity loss by 2010. The EU has gone even further by committing itself to halting biodiversity decline by 2010 (9).

| 3.17 | Biodiversity conservation is thus recognised as a sensible, necessary, yet highly complex task in which all political levels (from the EU down to local authorities) must work together with civil society to provide an example for society to follow. |
| --- | --- |

3.17

Biodiversity conservation is thus recognised as a sensible, necessary, yet highly complex task in which all political levels (from the EU down to local authorities) must work together with civil society to provide an example for society to follow.

Biodiversity loss: political and social background

| 3.18 | One burning question is, unfortunately, all too seldom asked, yet urgently requires an answer: what are the political reasons that allowed biodiversity to decline — sometimes to a dramatic extent — over decades without any adequate political action being taken or enforced to counter the trend? |
| --- | --- |

3.18

One burning question is, unfortunately, all too seldom asked, yet urgently requires an answer: what are the political reasons that allowed biodiversity to decline — sometimes to a dramatic extent — over decades without any adequate political action being taken or enforced to counter the trend?

| 3.19 | There many different reasons for this. One difficulty is undoubtedly that biodiversity loss is a very slow, insidious and thus, in the first instance, virtually imperceptible process (begging, in fact, a ready comparison with climate change). No single ‘measure’ can be blamed for the emergence of the problem, just as no single ‘countermeasure’ can be brought to bear to resolve it. The biodiversity loss we are witnessing at the moment is the product of millions of actions and decisions over the last number of years and decades, each of which — individually — has had a seemingly insignificant or merely marginal impact. |
| --- | --- |

3.19

There many different reasons for this. One difficulty is undoubtedly that biodiversity loss is a very slow, insidious and thus, in the first instance, virtually imperceptible process (begging, in fact, a ready comparison with climate change). No single ‘measure’ can be blamed for the emergence of the problem, just as no single ‘countermeasure’ can be brought to bear to resolve it. The biodiversity loss we are witnessing at the moment is the product of millions of actions and decisions over the last number of years and decades, each of which — individually — has had a seemingly insignificant or merely marginal impact.

| 3.20 | It is extremely difficult, therefore, to successfully caution against — or indeed block — upcoming decisions on the grounds of preserving biodiversity, especially in the face of contentions by the relevant public authorities that the impact on the particular part of the natural environment in question is being offset by compensation or substitution measures elsewhere (although this all too frequently is not successful). |
| --- | --- |

3.20

It is extremely difficult, therefore, to successfully caution against — or indeed block — upcoming decisions on the grounds of preserving biodiversity, especially in the face of contentions by the relevant public authorities that the impact on the particular part of the natural environment in question is being offset by compensation or substitution measures elsewhere (although this all too frequently is not successful).

| 3.21 | Another probable reason is that, in a development that has taken place over a relatively short space of time, fewer and fewer people have any direct experience and perception of the importance of biodiversity and countryside areas, and the changes that are taking place there. We are witnessing a process of alienation from nature, which starts as fewer and fewer people know or recognise the value — both practical
   (10) and intrinsic
   (11) — of countryside areas. |
| --- | --- |

3.21

Another probable reason is that, in a development that has taken place over a relatively short space of time, fewer and fewer people have any direct experience and perception of the importance of biodiversity and countryside areas, and the changes that are taking place there. We are witnessing a process of alienation from nature, which starts as fewer and fewer people know or recognise the value — both practical
   (10) and intrinsic
   (11) — of countryside areas.

| 3.22 | Most people (and indeed most policymakers) are, in all likelihood, not fully aware of the importance and relevance of the real task of protecting biodiversity (including the major ethical and moral responsibility involved.). They ‘consume’ the countryside and admire its beauty. They enjoy its sights, spend their leisure time there, play sports, take holidays. Yet they have little idea any longer of how the biotic elements of countryside areas, the individual species of fauna and flora, interact with and through each other and thus play a part both in making the landscape what it is and in ensuring its stability. Equally, they have little inkling of the tremendous importance of this fragile stability as the backbone of our way of life and of our economic system. For broad swathes of society, nature is something that is experienced sporadically, sometimes more on television than in the open countryside, in films that focus more on the beauties of Africa, the Galapagos Islands or other far-flung places, but hardly ever address the problems facing Europe's own natural heritage. |
| --- | --- |

3.22

Most people (and indeed most policymakers) are, in all likelihood, not fully aware of the importance and relevance of the real task of protecting biodiversity (including the major ethical and moral responsibility involved.). They ‘consume’ the countryside and admire its beauty. They enjoy its sights, spend their leisure time there, play sports, take holidays. Yet they have little idea any longer of how the biotic elements of countryside areas, the individual species of fauna and flora, interact with and through each other and thus play a part both in making the landscape what it is and in ensuring its stability. Equally, they have little inkling of the tremendous importance of this fragile stability as the backbone of our way of life and of our economic system. For broad swathes of society, nature is something that is experienced sporadically, sometimes more on television than in the open countryside, in films that focus more on the beauties of Africa, the Galapagos Islands or other far-flung places, but hardly ever address the problems facing Europe's own natural heritage.

| 3.23 | It is no accident, therefore, that nature conservation organisations find, to their surprise, that Europeans are frequently more willing to support campaigns to save the elephant or conserve the Siberian tiger than to protect the local field hamster. |
| --- | --- |

3.23

It is no accident, therefore, that nature conservation organisations find, to their surprise, that Europeans are frequently more willing to support campaigns to save the elephant or conserve the Siberian tiger than to protect the local field hamster.

| 3.24 | Biodiversity loss is something that is talked about, reported on and discussed in political tracts. Yet people have no direct experience of the adverse impact involved. In some cases, they have no personal experience whatsoever of what is actually being lost ‘out there’ in the countryside. As we know, people are prepared to commit only to causes they genuinely know and care about, causes from which they expect in some way to derive benefit. |
| --- | --- |

3.24

Biodiversity loss is something that is talked about, reported on and discussed in political tracts. Yet people have no direct experience of the adverse impact involved. In some cases, they have no personal experience whatsoever of what is actually being lost ‘out there’ in the countryside. As we know, people are prepared to commit only to causes they genuinely know and care about, causes from which they expect in some way to derive benefit.

| 3.25 | Daily experience shows therefore, that, as an issue, biodiversity enjoys broad recognition but it is also increasingly far outside the ambit of most people's own experience. Values arise because people care about what they represent. For many people, biodiversity appears to have no direct bearing on their lives and, in consequence, they increasingly feel that its protection is not something for which they are in any sense personally responsible. That, they feel, is a job for the state. |
| --- | --- |

3.25

Daily experience shows therefore, that, as an issue, biodiversity enjoys broad recognition but it is also increasingly far outside the ambit of most people's own experience. Values arise because people care about what they represent. For many people, biodiversity appears to have no direct bearing on their lives and, in consequence, they increasingly feel that its protection is not something for which they are in any sense personally responsible. That, they feel, is a job for the state.

| 3.26 | Across the world, biodiversity conservation will depend on the extent to which political decision-makers succeed in rekindling a sense of ‘personal concern’. It must be brought home to people that just because something can be done does not necessarily mean that it should be done. People must again come to recognise that sacrifices do have to be made to protect the natural environment but that such sacrifices are a source of enrichment to us. That goal should be an integral part of any EU campaign on biodiversity loss. |
| --- | --- |

3.26

Across the world, biodiversity conservation will depend on the extent to which political decision-makers succeed in rekindling a sense of ‘personal concern’. It must be brought home to people that just because something can be done does not necessarily mean that it should be done. People must again come to recognise that sacrifices do have to be made to protect the natural environment but that such sacrifices are a source of enrichment to us. That goal should be an integral part of any EU campaign on biodiversity loss.

| 3.27 | And as what is described above does seem a true reflection of what is actually going on, situations arise time and again in which universal commitment to conserving biodiversity is taken as read, yet questions are still asked as to:






  — | whether the environment really needs protection just where that new bypass road is scheduled to be built; |
| --- | --- | --- |

3.27

And as what is described above does seem a true reflection of what is actually going on, situations arise time and again in which universal commitment to conserving biodiversity is taken as read, yet questions are still asked as to:

—

whether the environment really needs protection just where that new bypass road is scheduled to be built;

| — | whether the presence of a species enjoying European protection under the Habitats Directive should be a valid reason for blocking, say, the building of a trading estate; |
| --- | --- |

—

whether the presence of a species enjoying European protection under the Habitats Directive should be a valid reason for blocking, say, the building of a trading estate;

| — | and whether nature conservation really does have to cost (so much) money. |
| --- | --- |

—

and whether nature conservation really does have to cost (so much) money.

| 3.28 | It does not end there. When the economy is, ostensibly, going through a bad patch, nature conservation is not seen as the very foundation of life and economic activity but is, instead, turned into a scapegoat and accused of holding back one key development or another that is deemed ‘good’ for the economy. It should, incidentally, also be noted that arguments used in this debate frequently follow a highly contradictory line of reasoning. People are indignant if a road they personally consider important cannot be built because of nature conservation rules. Yet they are more than willing to cite landscape conservation as grounds to block road building in areas they use for holidays or recreation. |
| --- | --- |

3.28

It does not end there. When the economy is, ostensibly, going through a bad patch, nature conservation is not seen as the very foundation of life and economic activity but is, instead, turned into a scapegoat and accused of holding back one key development or another that is deemed ‘good’ for the economy. It should, incidentally, also be noted that arguments used in this debate frequently follow a highly contradictory line of reasoning. People are indignant if a road they personally consider important cannot be built because of nature conservation rules. Yet they are more than willing to cite landscape conservation as grounds to block road building in areas they use for holidays or recreation.

| 3.29 | As things stand, nature is seen as a ‘freely available, common resource’ which can be shaped and influenced more or less at will to suit the economic requirements of an industrially based and increasingly urbanised society with its high leisure requirements. And, against that backdrop, policymakers wrongly promote the idea that compensation and substitution measures are enough to satisfy the needs of biodiversity protection. |
| --- | --- |

3.29

As things stand, nature is seen as a ‘freely available, common resource’ which can be shaped and influenced more or less at will to suit the economic requirements of an industrially based and increasingly urbanised society with its high leisure requirements. And, against that backdrop, policymakers wrongly promote the idea that compensation and substitution measures are enough to satisfy the needs of biodiversity protection.

Impact of the measures introduced by the Council and the Commission to date

| 3.30 | As the current position shows, the impact of the measures introduced by the Council and the Commission to date has been wholly inadequate. That said, the Commission's approach to protecting the habitats of European animals and plants — exemplified in the 1979 Birds Directive and the 1992 Habitats Directive — was and remains both right and sensible. The critical problem lies in the political will to implement and enforce the measures, as the Commission itself recognises: ‘Implementation of the

  Birds and Habitats Directives

  has been difficult. Infringements relating to the two Directives account for over a quarter of instances where the European Commission has taken legal action.’ (12) |
| --- | --- |

3.30

As the current position shows, the impact of the measures introduced by the Council and the Commission to date has been wholly inadequate. That said, the Commission's approach to protecting the habitats of European animals and plants — exemplified in the 1979 Birds Directive and the 1992 Habitats Directive — was and remains both right and sensible. The critical problem lies in the political will to implement and enforce the measures, as the Commission itself recognises: ‘Implementation of the

  Birds and Habitats Directives

  has been difficult. Infringements relating to the two Directives account for over a quarter of instances where the European Commission has taken legal action.’ (12)

| 3.31 | In this regard, the EESC sees two different levels of responsibility: |
| --- | --- |

3.31

In this regard, the EESC sees two different levels of responsibility:

| 3.31.1 | The first is the political level where awareness is distinctly lacking. The EESC simply cannot understand, for instance, why Member States should adopt nature conservation directives in the Council only to fail to implement them — or to do so in a wholly inadequate way — on the ground. The EESC considers this completely unacceptable. Policymakers themselves are creating a huge credibility gap by failing even to enforce nature conservation measures. |
| --- | --- |

3.31.1

The first is the political level where awareness is distinctly lacking. The EESC simply cannot understand, for instance, why Member States should adopt nature conservation directives in the Council only to fail to implement them — or to do so in a wholly inadequate way — on the ground. The EESC considers this completely unacceptable. Policymakers themselves are creating a huge credibility gap by failing even to enforce nature conservation measures.

| 3.31.2 | There is also no credibility in a policy that claims to want to halt biodiversity decline by 2010, while policymakers, full in the knowledge this costs money, are, under the financial perspective, at the same time cutting the key budgetary appropriations to the ‘old’ Member States in this area by more than 30 % (13). The heads of state or government of the EU Member States have thus themselves laid the groundwork for a policy that cannot match their own ambitions. The policy itself sets a bad example. |
| --- | --- |

3.31.2

There is also no credibility in a policy that claims to want to halt biodiversity decline by 2010, while policymakers, full in the knowledge this costs money, are, under the financial perspective, at the same time cutting the key budgetary appropriations to the ‘old’ Member States in this area by more than 30 % (13). The heads of state or government of the EU Member States have thus themselves laid the groundwork for a policy that cannot match their own ambitions. The policy itself sets a bad example.

| 3.31.3 | That said, however, Member States — the second tier of responsibility — must not lay the blame for the failure of their own policy at the door of those who ‘use’ the natural environment. The EESC has, in a number of opinions, considered the failure to implement the directives that are so important for maintaining biodiversity. It can but repeat that until such times as measures to protect or improve biodiversity dovetail with, for instance, the (understandable) economic interests of land users, then compensation must be forthcoming — at least to offset potential financial losses. An even better option would be to provide incentives for appropriate action on biodiversity. A key stumbling block is the continued uncertainty — following the European Council's decision of 16 December 2005 — about the financing of Natura 2000 measures in the upcoming EU funding period. Any political commitment to maintain and develop biodiversity, however well meaning, is worthless unless the economic conditions are right. |
| --- | --- |

3.31.3

That said, however, Member States — the second tier of responsibility — must not lay the blame for the failure of their own policy at the door of those who ‘use’ the natural environment. The EESC has, in a number of opinions, considered the failure to implement the directives that are so important for maintaining biodiversity. It can but repeat that until such times as measures to protect or improve biodiversity dovetail with, for instance, the (understandable) economic interests of land users, then compensation must be forthcoming — at least to offset potential financial losses. An even better option would be to provide incentives for appropriate action on biodiversity. A key stumbling block is the continued uncertainty — following the European Council's decision of 16 December 2005 — about the financing of Natura 2000 measures in the upcoming EU funding period. Any political commitment to maintain and develop biodiversity, however well meaning, is worthless unless the economic conditions are right.

| 3.32 | Basically, therefore, the EU's approach will remain ineffectual unless the Natura 2000 financing issue is resolved along the lines advocated both by the EESC and by the European Parliament (i.e. a separate, adequate budgetary heading for Natura 2000 compensation). No public information campaign — however well intentioned — will be able to change that. |
| --- | --- |

3.32

Basically, therefore, the EU's approach will remain ineffectual unless the Natura 2000 financing issue is resolved along the lines advocated both by the EESC and by the European Parliament (i.e. a separate, adequate budgetary heading for Natura 2000 compensation). No public information campaign — however well intentioned — will be able to change that.

| 3.33 | One measure to conserve biodiversity announced in the sustainability strategy was, ‘in the mid-term review of the Common Agricultural Policy, [to] improve the agri-environmental measures so that they provide a transparent system of direct payments for environmental services’. As the Committee notes with regret, this is yet another important and worthwhile undertaking that has not been met. The result has been counterproductive. The main responsibility for this failure lay not so much with the Commission as with the Member States, particularly their stance on funding. |
| --- | --- |

3.33

One measure to conserve biodiversity announced in the sustainability strategy was, ‘in the mid-term review of the Common Agricultural Policy, [to] improve the agri-environmental measures so that they provide a transparent system of direct payments for environmental services’. As the Committee notes with regret, this is yet another important and worthwhile undertaking that has not been met. The result has been counterproductive. The main responsibility for this failure lay not so much with the Commission as with the Member States, particularly their stance on funding.

Are the various EU policies coherent enough?

| 3.34 | The EESC does not feel that the various EU policy areas are, as yet, coordinated in such a way as to be able to halt biodiversity loss. On the contrary, EU policies continue to pose risks that cannot be offset by the modest nature protection measures that are in place. Even the ongoing action programmes (14) are doing nothing to change that, and the thematic strategies that are currently in the pipeline do not seem set to make any decisive difference either (15). |
| --- | --- |

3.34

The EESC does not feel that the various EU policy areas are, as yet, coordinated in such a way as to be able to halt biodiversity loss. On the contrary, EU policies continue to pose risks that cannot be offset by the modest nature protection measures that are in place. Even the ongoing action programmes (14) are doing nothing to change that, and the thematic strategies that are currently in the pipeline do not seem set to make any decisive difference either (15).

| 3.35 | Aside from agricultural policy, which the Committee has already considered in other opinions, one particular project — part of the trans-European transport networks — is a good case in point. The Danube — 2 880 km long and cutting across ten European countries — can undoubtedly be seen as the European river par excellence. The Danube is a lifeline along which countless natural havens that are to be included in the Natura-2000 network have been preserved. Yet the EU says that some 1 400 km (i.e. half) of the river — for the most part the remaining free-flowing sections, in Germany (Straubing-Vilshofen), for instance, or in Austria (near Heinburg and in the Wachau), as well as large sections in Hungary and virtually the entire tract in Bulgaria and Romania — are shipping bottlenecks that need to be removed. A policy such as this ultimately leads to confrontation between economic growth and nature conservation, and in fact provokes and orchestrates those very conflicts which policymakers — by dint of the sustainable development and biodiversity strategies and thus as part of a coherent policy — are supposed to be resolving. |
| --- | --- |

3.35

Aside from agricultural policy, which the Committee has already considered in other opinions, one particular project — part of the trans-European transport networks — is a good case in point. The Danube — 2 880 km long and cutting across ten European countries — can undoubtedly be seen as the European river par excellence. The Danube is a lifeline along which countless natural havens that are to be included in the Natura-2000 network have been preserved. Yet the EU says that some 1 400 km (i.e. half) of the river — for the most part the remaining free-flowing sections, in Germany (Straubing-Vilshofen), for instance, or in Austria (near Heinburg and in the Wachau), as well as large sections in Hungary and virtually the entire tract in Bulgaria and Romania — are shipping bottlenecks that need to be removed. A policy such as this ultimately leads to confrontation between economic growth and nature conservation, and in fact provokes and orchestrates those very conflicts which policymakers — by dint of the sustainable development and biodiversity strategies and thus as part of a coherent policy — are supposed to be resolving.

| 3.36 | The EESC's point here about an insufficiently coherent policy is, moreover, true not only in those sectors traditionally seen as potentially hazardous to nature protection and biodiversity conservation — such as the transport or infrastructure policy touched on above or over-intensive farming, forestry and fishing — but also in policy areas which, at first glance, appear to have no direct connection with biodiversity at all. |
| --- | --- |

3.36

The EESC's point here about an insufficiently coherent policy is, moreover, true not only in those sectors traditionally seen as potentially hazardous to nature protection and biodiversity conservation — such as the transport or infrastructure policy touched on above or over-intensive farming, forestry and fishing — but also in policy areas which, at first glance, appear to have no direct connection with biodiversity at all.

| 3.36.1 | Measures introduced to combat BSE are a case in point. These include a broadly definitive ban on animal carcasses being left or dumped on the land (16), obliging farmers, at great expense, to take the bodies of dead animals to rendering facilities. |
| --- | --- |

3.36.1

Measures introduced to combat BSE are a case in point. These include a broadly definitive ban on animal carcasses being left or dumped on the land (16), obliging farmers, at great expense, to take the bodies of dead animals to rendering facilities.

| 3.36.2 | In areas of Europe with still-intact populations of wild carrion-eaters, such as vultures, wolves or bears, this poses major problems for species protection. In Asturia, for example, in the 1990s and right up to 2003, around 3 000 bodies of domestic animals were, on average, delivered to rendering facilities each year. In 2004, as a result of consistent application of the relevant EU regulation, that figure rose to around 20 000. |
| --- | --- |

3.36.2

In areas of Europe with still-intact populations of wild carrion-eaters, such as vultures, wolves or bears, this poses major problems for species protection. In Asturia, for example, in the 1990s and right up to 2003, around 3 000 bodies of domestic animals were, on average, delivered to rendering facilities each year. In 2004, as a result of consistent application of the relevant EU regulation, that figure rose to around 20 000.

| 3.36.3 | This means, therefore, that Asturia (area: 10 604 km2) is ‘short’ of some 17 000 animal carcasses, which had, until then, been a major source of food for vultures, bears, wolves and many other carrion-eaters. Taking 200 kg per animal as a benchmark, this represents a total protein biomass of 3 400 tonnes (17). It remains to be seen whether the November 2002 Spanish royal decree allowing carrion-eaters to be fed the carcasses or by-products of certain animals will make any difference to this situation. No other EU Member State has introduced a national provision of this kind. |
| --- | --- |

3.36.3

This means, therefore, that Asturia (area: 10 604 km2) is ‘short’ of some 17 000 animal carcasses, which had, until then, been a major source of food for vultures, bears, wolves and many other carrion-eaters. Taking 200 kg per animal as a benchmark, this represents a total protein biomass of 3 400 tonnes (17). It remains to be seen whether the November 2002 Spanish royal decree allowing carrion-eaters to be fed the carcasses or by-products of certain animals will make any difference to this situation. No other EU Member State has introduced a national provision of this kind.

What other measures might have to be taken by the Commission and the Member States

| 3.37 | In its environment policy review for 2003 (18), the Commission itself recognises the need, as a matter of priority, to:






  — | move towards a more sustainable agricultural policy; |
| --- | --- | --- |

3.37

In its environment policy review for 2003 (18), the Commission itself recognises the need, as a matter of priority, to:

—

move towards a more sustainable agricultural policy;

| — | green the Common Fisheries Policy; |
| --- | --- |

—

green the Common Fisheries Policy;

| — | better protect soils and the marine environment; |
| --- | --- |

—

better protect soils and the marine environment;

| — | improve implementation in the field of nature protection; |
| --- | --- |

—

improve implementation in the field of nature protection;

| — | better highlight trends in the biodiversity area; and |
| --- | --- |

—

better highlight trends in the biodiversity area; and

| — | strengthen biodiversity protection at international level. |
| --- | --- |

—

strengthen biodiversity protection at international level.

| 3.38 | In its 2007 policy strategy, the Commission has also announced a review of the habitats and birds directives ‘to adapt them to new scientific knowledge’ (19). The EESC would be very pleased if the Commission were to make known, as soon as possible, the nature of this new scientific knowledge and to make clear how extensive the review, which, in the EESC's view, could only lead to an improvement in European nature conservation will be. |
| --- | --- |

3.38

In its 2007 policy strategy, the Commission has also announced a review of the habitats and birds directives ‘to adapt them to new scientific knowledge’ (19). The EESC would be very pleased if the Commission were to make known, as soon as possible, the nature of this new scientific knowledge and to make clear how extensive the review, which, in the EESC's view, could only lead to an improvement in European nature conservation will be.

| 3.39 | The EESC is convinced of the need to boost habitat protection and make the requisite funding available to that end. The directive on the conservation of natural habitats and of wild fauna and flora and the birds directive have not yet done enough to safeguard species and habitats that require protection across Europe. A further — and in the EESC's view crucial — difficulty, however, is the stance now taken in some Member States, a stance that permeates down even as far as the local level, namely that when it comes to the natural environment, anything that does not have European protected status but is perhaps protected only at national level is somehow ‘second-class’. The attitude is that if the EU does not provide funding, then we do nothing either. Biodiversity protection outside specifically designated reserves is in an even more parlous state: here publicly funded activities are now virtually nonexistent. Yet the task of protecting biodiversity cannot be restricted to just a few designated areas. |
| --- | --- |

3.39

The EESC is convinced of the need to boost habitat protection and make the requisite funding available to that end. The directive on the conservation of natural habitats and of wild fauna and flora and the birds directive have not yet done enough to safeguard species and habitats that require protection across Europe. A further — and in the EESC's view crucial — difficulty, however, is the stance now taken in some Member States, a stance that permeates down even as far as the local level, namely that when it comes to the natural environment, anything that does not have European protected status but is perhaps protected only at national level is somehow ‘second-class’. The attitude is that if the EU does not provide funding, then we do nothing either. Biodiversity protection outside specifically designated reserves is in an even more parlous state: here publicly funded activities are now virtually nonexistent. Yet the task of protecting biodiversity cannot be restricted to just a few designated areas.

| 3.40 | Such a stance and viewpoint demonstrate all too clearly, however, that most members of the public — not to mention most policymakers — still fail to understand that in nature everything is interlinked, hence the need to protect biodiversity in particular. Public bodies in particular are also called upon to lead by example. They must demonstrate to the public that conserving biodiversity is important to them and that they are ready to take appropriate action in their own areas, even if, in the short term, economically ‘more effective’ options may be available. |
| --- | --- |

3.40

Such a stance and viewpoint demonstrate all too clearly, however, that most members of the public — not to mention most policymakers — still fail to understand that in nature everything is interlinked, hence the need to protect biodiversity in particular. Public bodies in particular are also called upon to lead by example. They must demonstrate to the public that conserving biodiversity is important to them and that they are ready to take appropriate action in their own areas, even if, in the short term, economically ‘more effective’ options may be available.

| 3.41 | The UN Decade of Education for Sustainable Development (2005-2015) should therefore be used as a launch pad for a broad-based campaign designed to halt and reverse the noticeable fall-off in knowledge and experience of biodiversity. A large-scale, positive campaign is needed to make clear that nature is not a luxury that societies can allow themselves in periods of economic prosperity, to be dispensed with when the economy takes a downturn. Biodiversity must again be conveyed to society as an economic, cultural and spiritual asset. Nature conservation must be presented as something positive (and what can be more positive than maintaining the very basis of life itself?) Nature conservation should be something to be enjoyed; it should be fun, rather than seen as a burden. It must also be made clear that the costs of any further erosion of our natural basis for life will be much higher than the costs of protecting that basis in the first place, and that valuable assets are being lost that cannot be expressed in purely monetary terms. |
| --- | --- |

3.41

The UN Decade of Education for Sustainable Development (2005-2015) should therefore be used as a launch pad for a broad-based campaign designed to halt and reverse the noticeable fall-off in knowledge and experience of biodiversity. A large-scale, positive campaign is needed to make clear that nature is not a luxury that societies can allow themselves in periods of economic prosperity, to be dispensed with when the economy takes a downturn. Biodiversity must again be conveyed to society as an economic, cultural and spiritual asset. Nature conservation must be presented as something positive (and what can be more positive than maintaining the very basis of life itself?) Nature conservation should be something to be enjoyed; it should be fun, rather than seen as a burden. It must also be made clear that the costs of any further erosion of our natural basis for life will be much higher than the costs of protecting that basis in the first place, and that valuable assets are being lost that cannot be expressed in purely monetary terms.

| 3.42 | The EESC is well aware that EU nature conservation policy is restricted to tackling objectives that can only be achieved through cross-border action. But an appropriate biodiversity protection policy must also be pursued at national, regional and indeed local level, and even at the level of private individuals. Thus, the Member States are, at the very least, just as much called upon to act as the EU. |
| --- | --- |

3.42

The EESC is well aware that EU nature conservation policy is restricted to tackling objectives that can only be achieved through cross-border action. But an appropriate biodiversity protection policy must also be pursued at national, regional and indeed local level, and even at the level of private individuals. Thus, the Member States are, at the very least, just as much called upon to act as the EU.

| 3.43 | The EESC would therefore very much like to see the Commission, as part of a campaign of this kind, work together with the environmental groups and land-user associations concerned to back — and bring to wide public attention — prototype schemes for nature protection, designed, among other things, to generate a Europe-wide sense of identity. The Green Belt Europe initiative might, for instance, be a suitable vehicle for such a scheme. This is an NGO project that also to some extent already enjoys publicly-funded support (20) and is designed to look after habitats that grew up ‘protected’ in the shadow of sometimes even inhumane national borders. The Green Belt Europe, which runs from Scandinavia to the Balkans, is (still) Europe's longest biotope corridor. |
| --- | --- |

3.43

The EESC would therefore very much like to see the Commission, as part of a campaign of this kind, work together with the environmental groups and land-user associations concerned to back — and bring to wide public attention — prototype schemes for nature protection, designed, among other things, to generate a Europe-wide sense of identity. The Green Belt Europe initiative might, for instance, be a suitable vehicle for such a scheme. This is an NGO project that also to some extent already enjoys publicly-funded support (20) and is designed to look after habitats that grew up ‘protected’ in the shadow of sometimes even inhumane national borders. The Green Belt Europe, which runs from Scandinavia to the Balkans, is (still) Europe's longest biotope corridor.

| 3.44 | To boost biodiversity protection at an international level, the EESC feels that, as what is termed a ‘non-trade concern’, biodiversity should become an integral part of the trade system (inter alia of the WTO). |
| --- | --- |

3.44

To boost biodiversity protection at an international level, the EESC feels that, as what is termed a ‘non-trade concern’, biodiversity should become an integral part of the trade system (inter alia of the WTO).

Impact on the Lisbon and sustainable development strategies

| 3.45 | The EESC's comments in this opinion relate solely to the Lisbon strategy. There is no need to discuss the sustainable development strategy here, not only because the points made in the Commission's communication on the subject (21) are so vague and noncommittal that little can be expected from them in terms of sound biodiversity protection, but also because the EESC will be considering this document in a separate opinion. |
| --- | --- |

3.45

The EESC's comments in this opinion relate solely to the Lisbon strategy. There is no need to discuss the sustainable development strategy here, not only because the points made in the Commission's communication on the subject (21) are so vague and noncommittal that little can be expected from them in terms of sound biodiversity protection, but also because the EESC will be considering this document in a separate opinion.

| 3.46 | If the European Council, meeting for its spring summit in Brussels in 2005, was right in its assertion that the Lisbon strategy is part of the sustainable development strategy, then the Lisbon strategy should be framed in such as way that it seeks not only to take account of environmental concerns but also to secure the economic developments that are deemed appropriate, while at the same time consciously fostering action in areas like biodiversity protection. However, the Lisbon strategy documents give not the slightest indication of any approach along these lines. |
| --- | --- |

3.46

If the European Council, meeting for its spring summit in Brussels in 2005, was right in its assertion that the Lisbon strategy is part of the sustainable development strategy, then the Lisbon strategy should be framed in such as way that it seeks not only to take account of environmental concerns but also to secure the economic developments that are deemed appropriate, while at the same time consciously fostering action in areas like biodiversity protection. However, the Lisbon strategy documents give not the slightest indication of any approach along these lines.

| 3.47 | The Commission should, as soon as possible, undertake an overall assessment of the purely economic importance of biodiversity protection in Europe. It is also vital to set out, and bring to public notice, much more positive examples, clearly showing that biodiversity protection and economic development are mutually beneficial. It is also important to launch — at last — the discussion that society needs to engage in about practical ways of internalising external costs. |
| --- | --- |

3.47

The Commission should, as soon as possible, undertake an overall assessment of the purely economic importance of biodiversity protection in Europe. It is also vital to set out, and bring to public notice, much more positive examples, clearly showing that biodiversity protection and economic development are mutually beneficial. It is also important to launch — at last — the discussion that society needs to engage in about practical ways of internalising external costs.

Contribution of civil society

| 3.48 | Civil society input to conserving biodiversity is important, and there is without doubt still major scope for further positive action on this front. However, civil society input cannot offset or make up for omissions or mistakes by the public authorities. It is right to ask civil society to do more, but that must not deflect attention away from public-authority shortcomings. |
| --- | --- |

3.48

Civil society input to conserving biodiversity is important, and there is without doubt still major scope for further positive action on this front. However, civil society input cannot offset or make up for omissions or mistakes by the public authorities. It is right to ask civil society to do more, but that must not deflect attention away from public-authority shortcomings.

| 3.49 | The EESC would very much welcome a new campaign, as mentioned by the presidency in its letter of 13 September 2005. Such a campaign should be designed to encourage motivation and to foster understanding of the need to protect the natural environment and conserve biodiversity. Education in this field should start very early, in nursery schools and schools, and should also aim to make clear that we must all — every single one of us — play our part in conserving the very foundations of human existence. Protecting biodiversity starts on our own doorsteps, in the way we shop, how we design our gardens etc. |
| --- | --- |

3.49

The EESC would very much welcome a new campaign, as mentioned by the presidency in its letter of 13 September 2005. Such a campaign should be designed to encourage motivation and to foster understanding of the need to protect the natural environment and conserve biodiversity. Education in this field should start very early, in nursery schools and schools, and should also aim to make clear that we must all — every single one of us — play our part in conserving the very foundations of human existence. Protecting biodiversity starts on our own doorsteps, in the way we shop, how we design our gardens etc.

| 3.50 | It is easier for individuals to commit to something when they know what is at stake, feel their commitment is wanted and valued and can see the world of politics setting an example. A campaign of this kind could be used not only to convey basic knowledge but also to win ‘ambassadors’ for biodiversity conservation, such as rock musicians, literary figures, actors, politicians and journalists. |
| --- | --- |

3.50

It is easier for individuals to commit to something when they know what is at stake, feel their commitment is wanted and valued and can see the world of politics setting an example. A campaign of this kind could be used not only to convey basic knowledge but also to win ‘ambassadors’ for biodiversity conservation, such as rock musicians, literary figures, actors, politicians and journalists.

| 3.51 | Non-governmental organisations and also many citizens not involved in associations and groups do a great deal of laudable work in nature conservation and species protection. Farmers contribute through agri-environmental programmes and voluntary initiatives. Many other groups in society are working hard to protect biodiversity, sometimes even taking on board tasks that should clearly devolve on the public authorities. Much of the success that has been achieved in the field of biodiversity protection would not have been possible without this commitment. It is, in particular, thanks also to the work of private nature conservationists and that of many nature users that the situation is not even worse today than it actually is. Policymakers should foster this commitment, not only financially but in other ways as well. |
| --- | --- |

3.51

Non-governmental organisations and also many citizens not involved in associations and groups do a great deal of laudable work in nature conservation and species protection. Farmers contribute through agri-environmental programmes and voluntary initiatives. Many other groups in society are working hard to protect biodiversity, sometimes even taking on board tasks that should clearly devolve on the public authorities. Much of the success that has been achieved in the field of biodiversity protection would not have been possible without this commitment. It is, in particular, thanks also to the work of private nature conservationists and that of many nature users that the situation is not even worse today than it actually is. Policymakers should foster this commitment, not only financially but in other ways as well.

| 3.52 | This cannot, however, just mean practical fieldwork in the countryside itself. If policymakers really are determined to halt biodiversity decline, then it must also be in their interests to see demand for such a policy emerge within society. Political pressure is also involved. There can be no doubt that the European public does basically agree on the need for action. Nine out of ten people in the EU think that, on key issues, political decision-makers should pay the same degree of attention to environmental concerns as to economic and social factors (Attitudes of Europeans towards the environment, EC Eurobarometer, 2004). |
| --- | --- |

3.52

This cannot, however, just mean practical fieldwork in the countryside itself. If policymakers really are determined to halt biodiversity decline, then it must also be in their interests to see demand for such a policy emerge within society. Political pressure is also involved. There can be no doubt that the European public does basically agree on the need for action. Nine out of ten people in the EU think that, on key issues, political decision-makers should pay the same degree of attention to environmental concerns as to economic and social factors (Attitudes of Europeans towards the environment, EC Eurobarometer, 2004).

| 3.53 | It is absolutely essential to foster public education in order to promote understanding of policies (including expenditure). Civil society can and must play its part here, but it also needs publicly-funded support. For instance, civil society must ensure that nature conservation is no longer decried as ‘anti-progress’ but that appropriate answers are found to the questions raised, leading — ultimately — to more and not less biodiversity protection. |
| --- | --- |

3.53

It is absolutely essential to foster public education in order to promote understanding of policies (including expenditure). Civil society can and must play its part here, but it also needs publicly-funded support. For instance, civil society must ensure that nature conservation is no longer decried as ‘anti-progress’ but that appropriate answers are found to the questions raised, leading — ultimately — to more and not less biodiversity protection.

| 3.54 | The Committee therefore welcomes the Countdown 2010 (22) initiative launched by a range of non-governmental organisations and designed to incite all European governments to take the steps that are really needed to halt biodiversity decline by 2010 and thus to ensure that the declared political objective is also backed up by the necessary action. The campaign shows that, together, civil society and governments have a long list of tasks to complete. |
| --- | --- |

3.54

The Committee therefore welcomes the Countdown 2010 (22) initiative launched by a range of non-governmental organisations and designed to incite all European governments to take the steps that are really needed to halt biodiversity decline by 2010 and thus to ensure that the declared political objective is also backed up by the necessary action. The campaign shows that, together, civil society and governments have a long list of tasks to complete.

Brussels, 18 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  See decision of the Gothenburg European Council, 15 and 16 June 2001.

1

(2)  COM(2003) 745/2.

2

(3)  Cf COM(1998) 42 final.

3

(4)  COM(2001) 264 final.

4

(5)  The European Environment – State and outlook 2005, EEA, November 2005.

5

The European Environment – State and outlook 2005

(6)  See the scientific magazine Nature,22.3.2005.

6

Nature,

(7)  OJ L 103, 25.4.1979, p. 1.

7

(8)  OJ L 206, 22.7.1992, p. 7.

8

(9)  See paragraph 31, presidency conclusions, Gothenburg European Council.

9

(10)  The practical value – the economic value – of countryside areas goes far beyond their importance as farming or forestry ‘production sites’. Tourism and locally based recreation are a good case in point. Tourism is underpinned by species-rich, diverse landscapes of generally recognised beauty.

10

practical value

(11)  The intrinsic value of the countryside has two facets. On the one hand, ‘nature’ has a unique value that must be recognised and protected, not frittered away by one-sided technological and economic exploitation. On the other hand, the countryside is also of value as a place where people can seek physical and, above all, spiritual regeneration and find their proper place in the natural order.

11

intrinsic value

(12)  COM(2003) 745/2 and also, using the selfsame wording, COM(2004) 17.

12

(13)  Rural development – see heading 2 of the Financial Perspective 2007-2013.

13

(14)  On organic farming, for instance.

14

(15)  The Committee is currently working on separate opinions on the individual strategies; reference will be made to them here.

15

(16)  This is allowed only under conditions so complicated that they are hardly ever applied

16

(17)  Let us give just a cursory glance at the impact of this. For many years, the Spanish nature protection organisation FAPAS has been monitoring griffon vultures in Valle delle Trubia. Until 2003, it was normal to have ten pairs, which usually produced some eight or nine young. Griffon vultures never produce more than one chick. In 2004, however, the number of fledglings was down to four. Bear conservationists are also reporting many young bears being found dead for lack of food.

17

(18)  COM(2003) 745/2.

18

(19)  COM(2006) 122.

19

(20)  For instance, from the German Federal Agency for Nature Conservation.

20

(21)  COM(2005) 658,13.12.2005, Review of the Sustainable Development Strategy — ‘A platform for action’.

21

(22)  http://www.countdown2010.net/.

22

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/104 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/104

---

Opinion of the European Economic and Social Committee on Prioritising Africa: European civil society's perspective

(2006/C 195/25)

On 14 July 2005, the European Economic and Social Committee, acting under Rule 29(2) of its Rules of Procedure, decided to draw up an opinion on Prioritising Africa: European civil society's perspective

The Section for External Relations, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 4 May 2006. The rapporteur was Mr Bedossa.

At its 427th plenary session, held on 17 and 18 May 2006 (meeting of 18 May), the European Economic and Social Committee adopted the following opinion by 125 votes with one abstention.

Summary

The European Economic and Social Committee has drafted this own-initiative opinion on the basis of experience gained by its ACP-EU Follow-up Committee, which has been following the implementation of the Cotonou Agreement for several years and which has played an active role in the preparation of the EPAs with ACP civil society organisations.

The Commission Communication (1) has prompted the EESC to take stock of these policies, with specific reference to non-state actor involvement in the implementation of the Cotonou Agreement and EU development aid policy. The European Economic and Social Committee notes with regret that these policies have all too often led to broken promises, both on the European and the African side. A certain discrepancy between declared intentions and practice on the ground has been noticed in the past, but the fact is that aid policies are useless unless they are prepared on the ground.

The Cotonou Agreement is primarily an inter-state agreement that does not adequately provide for civil society action on the ground. Furthermore, the aid mechanisms that have actually been provided for under the Agreement have rarely lived up to their promises. Consequently, and given that civil society organisations have some catching up to do before they can act efficiently and independently, it comes as no surprise that the approaching EPAs have raised doubts, fears and concerns.

We must not forget that African society's organisational models have their own deep-rooted social and political characteristics. These must be taken into proper consideration in order to advance the objectives identified by the European Economic and Social Committee, which believes that if the new, ambitious European strategy for Africa is to succeed, then its function must be to support civil society, a key actor in development policy, by highlighting two crucial areas where civil society organisations can make a difference.

Governance that promotes human development on this continent.

| — | Governance that meets the following specifications:






  — | respect for human rights, |
| --- | --- | --- |

—

Governance that meets the following specifications:

—

respect for human rights,

| — | the right to free and decentralised information, |
| --- | --- |

—

the right to free and decentralised information,

| — | transparency of the organisations and administrative bodies in the relevant countries, |
| --- | --- |

—

transparency of the organisations and administrative bodies in the relevant countries,

| — | the elimination of corruption, an absolute obstacle to good governance, |
| --- | --- |

—

the elimination of corruption, an absolute obstacle to good governance,

| — | the universal right to water, health and education, |
| --- | --- |

—

the universal right to water, health and education,

| — | the right to food security. |
| --- | --- |

—

the right to food security.

In order to achieve this, the EESC recommends greater, easier access for African civil society organisations to Community funding and their systematic participation in defining and implementing cooperation policies and strategies.

| — | Combating AIDS |
| --- | --- |

—

Combating AIDS

The role of civil society organisations is crucial to this struggle, as they have privileged access to sufferers on the ground: prevention, diagnosis, treatment etc. We need an integrated approach towards the three pandemics and patient associations are a crucial link in this struggle.

The European Union must contribute to solving the crisis in human resources by increasing technical capacities and training all stakeholders. The European Economic and Social Committee calls on all political, economic and social leaders to rally behind this objective.

The European Economic and Social Committee affirms that the absolute priority is access to ‘all-in-one’ medicines whose cost is controlled by international bodies and that the European Union should use its influence to develop and accelerate research for a universal vaccine.

1.   Introduction

| 1.1 | On 12 October 2005, the European Commission adopted a Communication to the Council, the European Parliament and the European Economic and Social Committee on the EU Strategy for Africa: Towards a Euro-African pact to accelerate Africa's development. |
| --- | --- |

1.1

On 12 October 2005, the European Commission adopted a Communication to the Council, the European Parliament and the European Economic and Social Committee on the EU Strategy for Africa: Towards a Euro-African pact to accelerate Africa's development.

| 1.2 | The EESC agrees with the broad thrust and consistent approach of his ambitious Euro-African project. However, it has received a mixed reception from African non-governmental organisations (NGOs), which, in their disillusionment, cannot help wondering why this new plan should succeed where others have failed. |
| --- | --- |

1.2

The EESC agrees with the broad thrust and consistent approach of his ambitious Euro-African project. However, it has received a mixed reception from African non-governmental organisations (NGOs), which, in their disillusionment, cannot help wondering why this new plan should succeed where others have failed.

| 1.3 | The document under consideration is the outcome of a long-term project initiated by Commissioner Louis Michel at the beginning of his term of office in November 2004. It calls on the 25 EU Member States to adopt a joint cooperation policy with Africa, noting the diverse political contexts and levels of development rooted in age-old relations and requiring a new approach. |
| --- | --- |

1.3

The document under consideration is the outcome of a long-term project initiated by Commissioner Louis Michel at the beginning of his term of office in November 2004. It calls on the 25 EU Member States to adopt a joint cooperation policy with Africa, noting the diverse political contexts and levels of development rooted in age-old relations and requiring a new approach.

| 1.4 | The strategy is ambitious precisely because it outlines the undoubtedly numerous, but non-exhaustive, priority areas for impacting on the continent's development. |
| --- | --- |

1.4

The strategy is ambitious precisely because it outlines the undoubtedly numerous, but non-exhaustive, priority areas for impacting on the continent's development.

| 1.5 | In this respect, it is extremely inspiring and also restores the political pillar to the centre of development, thereby providing the EU with an opportunity to remain Africa's most influential partner. |
| --- | --- |

1.5

In this respect, it is extremely inspiring and also restores the political pillar to the centre of development, thereby providing the EU with an opportunity to remain Africa's most influential partner.

| 1.6 | Moreover, the proposed system promotes better-coordinated European action and tends towards harmonising practices at Community level. This goes some way towards deepening concerted EU action at a time of widespread condemnation of shortcomings in this area. |
| --- | --- |

1.6

Moreover, the proposed system promotes better-coordinated European action and tends towards harmonising practices at Community level. This goes some way towards deepening concerted EU action at a time of widespread condemnation of shortcomings in this area.

2.   General comments

| 2.1 | Several voices have been raised in warning that the worst will come to pass in Africa unless Europe and the rest of the world take immediate action. |
| --- | --- |

2.1

Several voices have been raised in warning that the worst will come to pass in Africa unless Europe and the rest of the world take immediate action.

| 2.2 | Unless Africa achieves independent development, the long-term consequences of migratory flows, disease and environmental issues will get worse, whether we like it or not. |
| --- | --- |

2.2

Unless Africa achieves independent development, the long-term consequences of migratory flows, disease and environmental issues will get worse, whether we like it or not.

| 2.3 | The obvious conclusion, then, is that industrialised countries must rethink the assistance they deliver to Africa. It is not the first time that these alarm bells have been sounded and some political or economic leaders speak openly of the ‘hypocrisy’ manifested by industrialised countries. |
| --- | --- |

2.3

The obvious conclusion, then, is that industrialised countries must rethink the assistance they deliver to Africa. It is not the first time that these alarm bells have been sounded and some political or economic leaders speak openly of the ‘hypocrisy’ manifested by industrialised countries.

| 2.4 | Ongoing sustained migrations are expected to result in ‘pressure that will continue to rise in the coming years. There will be a substantial increase in the population of Africa whereas development prospects remains bleak’. People have a right to seek a degree of prosperity as long as water, health, education and food security issues remain unresolved in the long term. The President of the Commission shares these concerns since he has stated that ‘we must strike at the structural causes of under-development in Africa’. Although planned several months in advance, the announcement of this new strategy coincided with the Ceuta and Melilla crisis. |
| --- | --- |

2.4

Ongoing sustained migrations are expected to result in ‘pressure that will continue to rise in the coming years. There will be a substantial increase in the population of Africa whereas development prospects remains bleak’. People have a right to seek a degree of prosperity as long as water, health, education and food security issues remain unresolved in the long term. The President of the Commission shares these concerns since he has stated that ‘we must strike at the structural causes of under-development in Africa’. Although planned several months in advance, the announcement of this new strategy coincided with the Ceuta and Melilla crisis.

| 2.5 | The European Economic and Social Committee takes full note of the Communication's objectives, namely to:






  — | improve the coherence of development policy for Africa; and to |
| --- | --- | --- |

2.5

The European Economic and Social Committee takes full note of the Communication's objectives, namely to:

—

improve the coherence of development policy for Africa; and to

| — | reaffirm its will to fulfil the Millennium Development Goals (MDGs) in Africa by 2015 by launching a major effort and identifying core objectives. Europe must work with Africa to find a productive consensus. Taking action means resolving the vital problems relating to disease, water, education and employment. The Commission hopes that its new strategy will soon produce positive results because — it must be stressed — it has been drawn up in consultation with the people of Africa. |
| --- | --- |

—

reaffirm its will to fulfil the Millennium Development Goals (MDGs) in Africa by 2015 by launching a major effort and identifying core objectives. Europe must work with Africa to find a productive consensus. Taking action means resolving the vital problems relating to disease, water, education and employment. The Commission hopes that its new strategy will soon produce positive results because — it must be stressed — it has been drawn up in consultation with the people of Africa.

| 2.6 | Nevertheless, the European Economic and Social Committee wonders whether this is not a little too ambitious, particularly in view of the following:






  — | the large number of broken promises: there is a permanent discrepancy between declared intentions and practice on the ground because aid policies are useless if they are not prepared in cooperation with organisations working locally. For too long now, direct aid to civil society under the Cotonou Agreement has failed to live up to its promises because the Cotonou Agreement is essentially an inter-state agreement that failed from the start to reckon with the presence of civil society action on the ground; |
| --- | --- | --- |

2.6

Nevertheless, the European Economic and Social Committee wonders whether this is not a little too ambitious, particularly in view of the following:

—

the large number of broken promises: there is a permanent discrepancy between declared intentions and practice on the ground because aid policies are useless if they are not prepared in cooperation with organisations working locally. For too long now, direct aid to civil society under the Cotonou Agreement has failed to live up to its promises because the Cotonou Agreement is essentially an inter-state agreement that failed from the start to reckon with the presence of civil society action on the ground;

| — | AIDS — an urgent issue for the continent: it has taken us fifteen years to decide that we can actually help Africa; |
| --- | --- |

—

AIDS — an urgent issue for the continent: it has taken us fifteen years to decide that we can actually help Africa;

| — | all the problems that make governance necessary in these countries, especially over-indebtedness, a problem that is often created by governments with no democratic legitimacy. |
| --- | --- |

—

all the problems that make governance necessary in these countries, especially over-indebtedness, a problem that is often created by governments with no democratic legitimacy.

| 2.7 | If the initial ambition is to be respected, three prerequisites must be fulfilled:






  — | the need for greater security — in the broad sense — for citizens, |
| --- | --- | --- |

2.7

If the initial ambition is to be respected, three prerequisites must be fulfilled:

—

the need for greater security — in the broad sense — for citizens,

| — | adequate economic growth, to be achieved mainly through the Cotonou Agreement and the Economic Partnership Agreements (EPAs), and |
| --- | --- |

—

adequate economic growth, to be achieved mainly through the Cotonou Agreement and the Economic Partnership Agreements (EPAs), and

| — | improved governance everywhere. |
| --- | --- |

—

improved governance everywhere.

| 2.8 | It should be noted that, to this end, the joint resources of the European Union and the G8 are to be substantially increased. They will double over the next ten years, and half these resources will be dedicated to Africa. However, the number of promises broken in the past, albeit on both sides, calls for caution. For if the growing number of promises cannot be denied, the reduction in aid actually provided by certain industrialised countries in recent years is equally undeniable! |
| --- | --- |

2.8

It should be noted that, to this end, the joint resources of the European Union and the G8 are to be substantially increased. They will double over the next ten years, and half these resources will be dedicated to Africa. However, the number of promises broken in the past, albeit on both sides, calls for caution. For if the growing number of promises cannot be denied, the reduction in aid actually provided by certain industrialised countries in recent years is equally undeniable!

| 2.9 | The European Economic and Social Committee agrees with the spirit of the Communication, not least in its definition of human rights policy. Since 2001 a number of countries have made progress towards meeting human rights and democratisation criteria. Nevertheless, the EESC would once again emphasise that human rights and democratisation must be further strengthened. In order to ensure the promotion of justice and rule of law, support is required to strengthen and organise civil society, and in particular the social partners, whose dialogue must be guaranteed in accordance with ILO standards. |
| --- | --- |

2.9

The European Economic and Social Committee agrees with the spirit of the Communication, not least in its definition of human rights policy. Since 2001 a number of countries have made progress towards meeting human rights and democratisation criteria. Nevertheless, the EESC would once again emphasise that human rights and democratisation must be further strengthened. In order to ensure the promotion of justice and rule of law, support is required to strengthen and organise civil society, and in particular the social partners, whose dialogue must be guaranteed in accordance with ILO standards.

| 2.10 | Nevertheless, the European Economic and Social Committee notes the need to define priorities, which further requires a deeper analysis of the major issues involved, namely to:






  — | coordinate EU policies and, more specifically, to provide for coordination of Member States' policies; |
| --- | --- | --- |

2.10

Nevertheless, the European Economic and Social Committee notes the need to define priorities, which further requires a deeper analysis of the major issues involved, namely to:

—

coordinate EU policies and, more specifically, to provide for coordination of Member States' policies;

| — | continue discussions on and implementation of new forms of solidarity-based financing, in particular by providing support for the follow-up group on sources of new funding to supplement government aid (set up at the Paris Conference in February 2006); |
| --- | --- |

—

continue discussions on and implementation of new forms of solidarity-based financing, in particular by providing support for the follow-up group on sources of new funding to supplement government aid (set up at the Paris Conference in February 2006);

| — | consult and organise essential regional integration, as well as inter-regional policy; and prioritise the creation of inter-regional infrastructure through calls for tender that comply with specific social and environmental standards, thereby facilitating the establishment of regional institutions; |
| --- | --- |

—

consult and organise essential regional integration, as well as inter-regional policy; and prioritise the creation of inter-regional infrastructure through calls for tender that comply with specific social and environmental standards, thereby facilitating the establishment of regional institutions;

| — | focus heavily on the issue of emigration, especially by eliminating the causes of population displacement in Africa. For this, the EU must show clear and heightened awareness because migration in sub-Saharan Africa is primarily rural and therefore the European Union should spare no effort in defining and applying a rural policy aimed at progressing towards food sufficiency in these regions in full cooperation with civil society; and |
| --- | --- |

—

focus heavily on the issue of emigration, especially by eliminating the causes of population displacement in Africa. For this, the EU must show clear and heightened awareness because migration in sub-Saharan Africa is primarily rural and therefore the European Union should spare no effort in defining and applying a rural policy aimed at progressing towards food sufficiency in these regions in full cooperation with civil society; and

| — | finally, to strengthen the role of governance through effective civil society participation since the Cotonou Agreement has clearly disappointed in this respect, and the Euro-African Forum has produced no decisive results. Respect for good governance in partner States should therefore comply with a number of multifaceted specifications:






  — | respect for human rights, |
| --- | --- | --- |

—

finally, to strengthen the role of governance through effective civil society participation since the Cotonou Agreement has clearly disappointed in this respect, and the Euro-African Forum has produced no decisive results. Respect for good governance in partner States should therefore comply with a number of multifaceted specifications:

—

respect for human rights,

| — | gender equality, |
| --- | --- |

—

gender equality,

| — | the right to free and decentralised information, |
| --- | --- |

—

the right to free and decentralised information,

| — | transparency of government organisations and their administration, |
| --- | --- |

—

transparency of government organisations and their administration,

| — | the elimination of corruption, an absolute obstacle to good governance, |
| --- | --- |

—

the elimination of corruption, an absolute obstacle to good governance,

| — | the universal right to water, health and education, |
| --- | --- |

—

the universal right to water, health and education,

| — | the phasing-out of the informal economy, which may amount to 80 % of economic activity in some countries. |
| --- | --- |

—

the phasing-out of the informal economy, which may amount to 80 % of economic activity in some countries.

| 2.11 | The European Economic and Social Committee would also reiterate that rural development, a frequently underestimated issue, is an absolute priority that we must never lose sight of. In Africa, the importance of agriculture is self-evident for frequently reiterated reasons: self-sufficiency in food is essential for development and population stability. Participatory civil society is largely made up of farmers and pastoralists. It is therefore essential to listen to them before drawing up rural policy, and to involve them in its implementation in order to maximise the chances of success. |
| --- | --- |

2.11

The European Economic and Social Committee would also reiterate that rural development, a frequently underestimated issue, is an absolute priority that we must never lose sight of. In Africa, the importance of agriculture is self-evident for frequently reiterated reasons: self-sufficiency in food is essential for development and population stability. Participatory civil society is largely made up of farmers and pastoralists. It is therefore essential to listen to them before drawing up rural policy, and to involve them in its implementation in order to maximise the chances of success.

| 2.12 | The European Economic and Social Committee recalls the importance of infrastructure, which remains conspicuous by its absence, perhaps for want of imagination. This includes national or inter-regional communication systems and access to water, the geopolitical relevance of which is obvious. |
| --- | --- |

2.12

The European Economic and Social Committee recalls the importance of infrastructure, which remains conspicuous by its absence, perhaps for want of imagination. This includes national or inter-regional communication systems and access to water, the geopolitical relevance of which is obvious.

| 2.13 | The European Economic and Social Committee calls for the total cessation of all forms of direct budgetary support. |
| --- | --- |

2.13

The European Economic and Social Committee calls for the total cessation of all forms of direct budgetary support.

| 2.14 | None of this will be possible without greater participation of civil society players in an improved framework for global governance, which is of relevance to all public, economic and social authorities. |
| --- | --- |

2.14

None of this will be possible without greater participation of civil society players in an improved framework for global governance, which is of relevance to all public, economic and social authorities.

3.   Specific comments

In this general context, Africa has been at the top of the 2005 international agenda. The G8 Summit in Scotland last July, the UN 60th anniversary celebrations in New York, and the recent annual meeting of the Bretton Woods institutions, have all provided people including Tony Blair, Horst Kohler and Paul Wolfowitz, the new World Bank President, with the opportunity to say their piece on the need to save Africa from disaster.

The European Economic and Social Committee would therefore focus attention on the pressing issues it has already highlighted in its previous stances:

| — | Prioritising Africa is a clear necessity but this should be accomplished by considerably broadening, within the framework of this new governance, access for civil society in all its diversity and reality. |
| --- | --- |

—

Prioritising Africa is a clear necessity but this should be accomplished by considerably broadening, within the framework of this new governance, access for civil society in all its diversity and reality.

| — | Fighting AIDS must be declared an absolute emergency because another tragedy is currently unfolding before our very eyes in an atmosphere of relative indifference. |
| --- | --- |

—

Fighting AIDS must be declared an absolute emergency because another tragedy is currently unfolding before our very eyes in an atmosphere of relative indifference.

3.1   Prioritising Africa

| 3.1.1 | The European Economic and Social Committee supports the European Commission's intention to make sub-Saharan Africa a priority area for EU development aid. Nevertheless, if this measure is to be effective, it must be accompanied by better governance in Africa at both national and regional levels. This concerns African inter-state organisations, States, and civil society organisations. Thanks to their independence (which needs strengthening), their proximity to the population and pro-activism, civil society organisations can help the populations directly concerned to take greater possession of development policies. The reasons for Africa's disintegration are indeed diverse, but civil society's lack of independence and inadequate capacity undoubtedly play a part and have a not inconsiderable impact. The concept of delegation, which was expressly provided for in the Cotonou Agreement for the purpose of resolving this problem, is ineffective because the direct, albeit conditional, assistance to these associations set out in the Agreement has proved difficult to deliver. |
| --- | --- |

3.1.1

The European Economic and Social Committee supports the European Commission's intention to make sub-Saharan Africa a priority area for EU development aid. Nevertheless, if this measure is to be effective, it must be accompanied by better governance in Africa at both national and regional levels. This concerns African inter-state organisations, States, and civil society organisations. Thanks to their independence (which needs strengthening), their proximity to the population and pro-activism, civil society organisations can help the populations directly concerned to take greater possession of development policies. The reasons for Africa's disintegration are indeed diverse, but civil society's lack of independence and inadequate capacity undoubtedly play a part and have a not inconsiderable impact. The concept of delegation, which was expressly provided for in the Cotonou Agreement for the purpose of resolving this problem, is ineffective because the direct, albeit conditional, assistance to these associations set out in the Agreement has proved difficult to deliver.

| 3.1.2 | The European Economic and Social Committee therefore recommends:






  — | greater and easier access to Community funding for African civil society organisations. Direct access at national level should be guaranteed. Moreover, a horizontal programme to fund non-State actors should also be set in place to complement programmes at national level; |
| --- | --- | --- |

3.1.2

The European Economic and Social Committee therefore recommends:

—

greater and easier access to Community funding for African civil society organisations. Direct access at national level should be guaranteed. Moreover, a horizontal programme to fund non-State actors should also be set in place to complement programmes at national level;

| — | civil society participation in defining and implementing cooperation policies and strategies should be broader and more systematic in order to enable civil society to take greater possession of the development process and thereby to contribute to the establishment of good governance. If some instances of progress have been detected, it is due to the slow but steady increase in the number of populations speaking out through all channels: social partners, credible and respected associations, especially institutions promoting gender equality, the local economy, education and information. |
| --- | --- |

—

civil society participation in defining and implementing cooperation policies and strategies should be broader and more systematic in order to enable civil society to take greater possession of the development process and thereby to contribute to the establishment of good governance. If some instances of progress have been detected, it is due to the slow but steady increase in the number of populations speaking out through all channels: social partners, credible and respected associations, especially institutions promoting gender equality, the local economy, education and information.

| 3.1.3 | The European Union considers that human rights are inviolable. The European Economic and Social Committee calls for EU support to civil society to become a reality, and bearing in mind these human rights concerns, for:






  — | a pragmatic approach to be adopted in its definition; |
| --- | --- | --- |

3.1.3

The European Union considers that human rights are inviolable. The European Economic and Social Committee calls for EU support to civil society to become a reality, and bearing in mind these human rights concerns, for:

—

a pragmatic approach to be adopted in its definition;

| — | credible interlocutors with the ability to hold dialogue with the government to be identified, including by setting up independent NGO networks; |
| --- | --- |

—

credible interlocutors with the ability to hold dialogue with the government to be identified, including by setting up independent NGO networks;

| — | project proposals to be introduced to secure their access to funding, and local micro-projects to be set up. |
| --- | --- |

—

project proposals to be introduced to secure their access to funding, and local micro-projects to be set up.

| 3.1.4 | Implementing the EPAs is likely to present the same difficulties. In attempting to achieve a genuine single market programme and a genuine reform programme, we must consider that:






  — | human resource and technical capacity building for civil society and Africans in general remains precarious, especially for women; |
| --- | --- | --- |

3.1.4

Implementing the EPAs is likely to present the same difficulties. In attempting to achieve a genuine single market programme and a genuine reform programme, we must consider that:

—

human resource and technical capacity building for civil society and Africans in general remains precarious, especially for women;

| — | if targeting EU aid is necessary to support the factors of production, then this should be done more effectively, and more coherent crossborder networks are required in the context of the EPA programme. |
| --- | --- |

—

if targeting EU aid is necessary to support the factors of production, then this should be done more effectively, and more coherent crossborder networks are required in the context of the EPA programme.

| 3.1.5 | The European Economic and Social Committee notes that negotiations to conclude EPAs with various regional blocks have been initiated and hopes that the process will result in a trade upsurge that contributes towards sustainable development and the eradication of poverty. Nevertheless, in order to ensure that these agreements are genuinely beneficial to the population, the EESC requests that the following points be implemented:






  — | The information disseminated should be as exhaustive as possible in order to permit the systematic involvement of civil society organisations in negotiations and impact assessments at national and regional level. |
| --- | --- | --- |

3.1.5

The European Economic and Social Committee notes that negotiations to conclude EPAs with various regional blocks have been initiated and hopes that the process will result in a trade upsurge that contributes towards sustainable development and the eradication of poverty. Nevertheless, in order to ensure that these agreements are genuinely beneficial to the population, the EESC requests that the following points be implemented:

—

The information disseminated should be as exhaustive as possible in order to permit the systematic involvement of civil society organisations in negotiations and impact assessments at national and regional level.

| — | The private sector should be involved in negotiations and capacity-building support should be provided. |
| --- | --- |

—

The private sector should be involved in negotiations and capacity-building support should be provided.

| — | Social consequences and gender issues should be included in impact assessments. |
| --- | --- |

—

Social consequences and gender issues should be included in impact assessments.

| — | Flexibility in trade agreements should translate into transitional periods for their implementation that would make it possible to protect businesses in the signatory States, and into specific protection for emerging industries and safeguard measures to cope with the competition from newly developed countries. |
| --- | --- |

—

Flexibility in trade agreements should translate into transitional periods for their implementation that would make it possible to protect businesses in the signatory States, and into specific protection for emerging industries and safeguard measures to cope with the competition from newly developed countries.

| — | There is a need for States to re-accumulate their own resources after integrating temporary financial compensation, possibly in conjunction with the benefits of more flexible measures that enable them to maintain a minimum level of fiscal autonomy in the trade sector. Indeed States affected by the loss of public revenue that will result from reductions in transitional customs duties are already in an extremely precarious financial situation and are struggling to ensure minimum public funding for education and health. |
| --- | --- |

—

There is a need for States to re-accumulate their own resources after integrating temporary financial compensation, possibly in conjunction with the benefits of more flexible measures that enable them to maintain a minimum level of fiscal autonomy in the trade sector. Indeed States affected by the loss of public revenue that will result from reductions in transitional customs duties are already in an extremely precarious financial situation and are struggling to ensure minimum public funding for education and health.

| 3.1.6 | In order to ensure that economic development benefits as many people as possible and does not result in abuse, the EESC believes that EU development aid activities in Africa should take account of the principles of social cohesion and decent work for all. Compliance with these principles will be better ensured if there was a genuine social dialogue and, more generally, if there was a dialogue between civil society organisations. |
| --- | --- |

3.1.6

In order to ensure that economic development benefits as many people as possible and does not result in abuse, the EESC believes that EU development aid activities in Africa should take account of the principles of social cohesion and decent work for all. Compliance with these principles will be better ensured if there was a genuine social dialogue and, more generally, if there was a dialogue between civil society organisations.

| 3.1.7 | The EESC therefore proposes to: cooperate with African Economic, Social and Cultural Councils to share experience and knowledge, as proposed by the European Commission in its communication (2), particularly with a view to making them effective partners in sectoral or geographic organisation of investment and aid;






  — | contribute its experience and know-how at national level wherever necessary, to encourage the creation of economic and social councils in forms which are appropriate to African cultures in all the countries where they do not exist, and to promote the renewal of certain existing ESCs which have lost credibility or become less visible; the European Economic and Social Committee has noted some encouraging signs: positive developments in the growing influence of the African Union; the European consensus on development between the Council, the European Parliament, and the European Commission; the networking of civil society organisations in certain regions, such as farmers, SMEs, social partners, etc. |
| --- | --- | --- |

3.1.7

The EESC therefore proposes to: cooperate with African Economic, Social and Cultural Councils to share experience and knowledge, as proposed by the European Commission in its communication (2), particularly with a view to making them effective partners in sectoral or geographic organisation of investment and aid;

—

contribute its experience and know-how at national level wherever necessary, to encourage the creation of economic and social councils in forms which are appropriate to African cultures in all the countries where they do not exist, and to promote the renewal of certain existing ESCs which have lost credibility or become less visible; the European Economic and Social Committee has noted some encouraging signs: positive developments in the growing influence of the African Union; the European consensus on development between the Council, the European Parliament, and the European Commission; the networking of civil society organisations in certain regions, such as farmers, SMEs, social partners, etc.

This might indicate that the European Union has realised that civil society is not sufficiently involved and that respect for it should be incorporated in the new strategy.

3.2   The fight against pandemics

| 3.2.1 | With respect to the AIDS issue, the European Economic and Social Committee calls on all political, economic and social leaders to pool their efforts. It welcomes a recent visit to the EESC by leading representatives from the IOE (International Organisation of Employers) and the ICFTU (International Confederation of Free Trade Unions). These two organisations have asked the Committee to provide multi-tiered support for action plans they launched in 2003 in 8 Southern African countries. |
| --- | --- |

3.2.1

With respect to the AIDS issue, the European Economic and Social Committee calls on all political, economic and social leaders to pool their efforts. It welcomes a recent visit to the EESC by leading representatives from the IOE (International Organisation of Employers) and the ICFTU (International Confederation of Free Trade Unions). These two organisations have asked the Committee to provide multi-tiered support for action plans they launched in 2003 in 8 Southern African countries.

| 3.2.2 | The European Economic and Social Committee should act as spokesperson for this cause in all arenas, at regional and local seminars as well as at plenary sessions. Thanks to the educational system and the mobilisation of the family by civil society stakeholders, a glimmer of hope has been detected for the first time. The prevalence rate for AIDS is receding in Senegal, Uganda and Zimbabwe, and life expectancy is rising once again. However, we must not drop our guard, and the Commission has announced programming guidelines on combating AIDS for its national partners. |
| --- | --- |

3.2.2

The European Economic and Social Committee should act as spokesperson for this cause in all arenas, at regional and local seminars as well as at plenary sessions. Thanks to the educational system and the mobilisation of the family by civil society stakeholders, a glimmer of hope has been detected for the first time. The prevalence rate for AIDS is receding in Senegal, Uganda and Zimbabwe, and life expectancy is rising once again. However, we must not drop our guard, and the Commission has announced programming guidelines on combating AIDS for its national partners.

| 3.2.3 | The European Economic and Social Committee would stress that substantial financial resources will be required to combat HIV/AIDS through permanent prevention policies and treatment strategies involving effective and simplified therapies whose costs should be entirely regulated by the World Trade Organisation TRIPS Agreement (Agreement on Trade-Related Aspects of Intellectual Property Rights) as well as support for research on a reliable and universal vaccine. |
| --- | --- |

3.2.3

The European Economic and Social Committee would stress that substantial financial resources will be required to combat HIV/AIDS through permanent prevention policies and treatment strategies involving effective and simplified therapies whose costs should be entirely regulated by the World Trade Organisation TRIPS Agreement (Agreement on Trade-Related Aspects of Intellectual Property Rights) as well as support for research on a reliable and universal vaccine.

| 3.2.4 | The human, social and economic consequences of pandemics in developing countries, such as the HIV/AIDS pandemic in sub-Saharan Africa, are already devastating and place enormous demands on these countries. This is a matter of absolute urgency since famine situations are emerging in countries with high AIDS prevalence rates (45-49 %). The EESC recommends EU action on two levels:






  — | At world level:






  — | In the framework of the Doha cycle negotiations for the development of the World Trade Organisation (WTO), the EESC has supported — and continues to support — the European Commission's view that the countries affected by such pandemics should be granted favourable access to drugs. Furthermore, new instruments enable the European Union to take part in a general debate with UNAIDS, the Global Fund, the United Nations High Commissioner for Refugees and the World Health Organisation. |
| --- | --- | --- | --- |

3.2.4

The human, social and economic consequences of pandemics in developing countries, such as the HIV/AIDS pandemic in sub-Saharan Africa, are already devastating and place enormous demands on these countries. This is a matter of absolute urgency since famine situations are emerging in countries with high AIDS prevalence rates (45-49 %). The EESC recommends EU action on two levels:

—

At world level:

—

In the framework of the Doha cycle negotiations for the development of the World Trade Organisation (WTO), the EESC has supported — and continues to support — the European Commission's view that the countries affected by such pandemics should be granted favourable access to drugs. Furthermore, new instruments enable the European Union to take part in a general debate with UNAIDS, the Global Fund, the United Nations High Commissioner for Refugees and the World Health Organisation.

| — | At national level:






  — | The EESC's point of departure is that in countries lacking infrastructure where the authorities do not have enough resources to provide a minimum service nationwide, civil society organisations are particularly capable of reaching the rural populations. |
| --- | --- | --- |

—

At national level:

—

The EESC's point of departure is that in countries lacking infrastructure where the authorities do not have enough resources to provide a minimum service nationwide, civil society organisations are particularly capable of reaching the rural populations.

| — | Accordingly — and here the EESC is passing on the request of its socio-economic partners in the ACP countries — it calls for specific European funding allowing civil society organisations to circulate information about pandemics to the public at large. |
| --- | --- |

—

Accordingly — and here the EESC is passing on the request of its socio-economic partners in the ACP countries — it calls for specific European funding allowing civil society organisations to circulate information about pandemics to the public at large.

| — | The European Economic and Social Committee believes that an integrated approach towards the three pandemics (AIDS, malaria, and tuberculosis) should be based on civil society, namely patient associations representing the people living with the disease. This implies the involvement of civil society in beneficiary countries. |
| --- | --- |

—

The European Economic and Social Committee believes that an integrated approach towards the three pandemics (AIDS, malaria, and tuberculosis) should be based on civil society, namely patient associations representing the people living with the disease. This implies the involvement of civil society in beneficiary countries.

| — | The European Union must contribute to solving the crisis in human resources through capacity building in terms of human and technical resources. |
| --- | --- |

—

The European Union must contribute to solving the crisis in human resources through capacity building in terms of human and technical resources.

| — | Equipped with the necessary financial and human resources, these organisations should be encouraged to establish alliances and partnerships with all stakeholders involved in fighting pandemics. |
| --- | --- |

—

Equipped with the necessary financial and human resources, these organisations should be encouraged to establish alliances and partnerships with all stakeholders involved in fighting pandemics.

| — | The European Economic and Social Committee requests that preventive action — in particular access to family planning for women — and aid for the sick and their families be effectively supported by European funding. |
| --- | --- |

—

The European Economic and Social Committee requests that preventive action — in particular access to family planning for women — and aid for the sick and their families be effectively supported by European funding.

| 3.2.5 | The European Economic and Social Committee believes that all stakeholders — NGOs, social partners, political leaders — should intensify their efforts to this end. It considers that it has a vital coordination role to play between all parties engaged in this struggle. The European Economic and Social Committee would like to act as a custodian of this struggle since it is an essential priority for all affected countries. For let us not deceive ourselves — lack of stakeholder involvement has already given rise to famine. |
| --- | --- |

3.2.5

The European Economic and Social Committee believes that all stakeholders — NGOs, social partners, political leaders — should intensify their efforts to this end. It considers that it has a vital coordination role to play between all parties engaged in this struggle. The European Economic and Social Committee would like to act as a custodian of this struggle since it is an essential priority for all affected countries. For let us not deceive ourselves — lack of stakeholder involvement has already given rise to famine.

| 3.2.6 | The European Union should focus on reducing the costs of pharmaceuticals by forming a special partnership with the WTO. The EESC calls on the EU Member States to subscribe to the initiative to provide large-scale and long-term pharmaceutical financing (Paris Conference, February 2006). It acknowledges that the initiative should enable closer involvement of the national ESCs by associating them with its implementation, evaluation and also monitoring, thus helping to ensure that this new measure is genuinely traceable. |
| --- | --- |

3.2.6

The European Union should focus on reducing the costs of pharmaceuticals by forming a special partnership with the WTO. The EESC calls on the EU Member States to subscribe to the initiative to provide large-scale and long-term pharmaceutical financing (Paris Conference, February 2006). It acknowledges that the initiative should enable closer involvement of the national ESCs by associating them with its implementation, evaluation and also monitoring, thus helping to ensure that this new measure is genuinely traceable.

Brussels, 18 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  EU Strategy for Africa: Towards a Euro-African pact to accelerate Africa's development, COM(2005) 489 final.

1

(2)  COM(2005) 132 - Speeding up progress towards the Millennium Development Goals: The European Union's contribution, April 2005.

2

Speeding up progress towards the Millennium Development Goals: The European Union's contribution

---

| 18.8.2006 | EN | Official Journal of the European Union | C 195/109 |
| --- | --- | --- | --- |

18.8.2006

EN

Official Journal of the European Union

C 195/109

---

Opinion of the European Economic and Social Committee on the Proposal for a Recommendation of the European Parliament and of the Council on key competences for lifelong learning

(COM(2005) 548 final — 2005/0221 (COD))

(2006/C 195/26)

On 28 November 2005 the Council decided to consult the European Economic and Social Committee, under Article 262 of the Treaty establishing the European Community, on the

The Section for Employment, Social Affairs and Citizenship, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 3 May 2006. The rapporteur was Mária Herczog.

At its 427th plenary session, held on 17-18 May 2006 (meeting of 18 May), the European Economic and Social Committee adopted the following opinion by 124 votes to two, with three abstentions.

1.   Executive summary

| 1.1 | The EESC strongly supports the Commission's recommendations concerning key competences for lifelong learning, which are fully consistent with the Lisbon strategy for a knowledge society and with the Employment Guidelines 2005-2008. |
| --- | --- |

1.1

The EESC strongly supports the Commission's recommendations concerning key competences for lifelong learning, which are fully consistent with the Lisbon strategy for a knowledge society and with the Employment Guidelines 2005-2008.

| 1.2 | The EESC feels that the proposal, if implemented, could help to overcome current problems on the labour market, particularly in terms of narrowing the gap between economic needs and preparation of the available workforce. |
| --- | --- |

1.2

The EESC feels that the proposal, if implemented, could help to overcome current problems on the labour market, particularly in terms of narrowing the gap between economic needs and preparation of the available workforce.

| 1.3 | The focus in training on developing key competences could also help to achieve the important common objective of ensuring that by the end of initial education and training young people have developed the key competences to a level that equips them for adult life and successful participation in the labour market either as employees or entrepreneurs, and that adults are able to develop and update these competences throughout their lives, based on a solid foundation of general knowledge which is one of the keys to the capacity for ongoing adaptation. |
| --- | --- |

1.3

The focus in training on developing key competences could also help to achieve the important common objective of ensuring that by the end of initial education and training young people have developed the key competences to a level that equips them for adult life and successful participation in the labour market either as employees or entrepreneurs, and that adults are able to develop and update these competences throughout their lives, based on a solid foundation of general knowledge which is one of the keys to the capacity for ongoing adaptation.

| 1.4 | Among the instruments for achieving this objective, the EESC feels that it is particularly important to prepare teachers to provide effective support for students in secondary education, vocational education and adult education in acquiring key competences, with teachers themselves acquiring or continuously developing the key competences which they need for their work. |
| --- | --- |

1.4

Among the instruments for achieving this objective, the EESC feels that it is particularly important to prepare teachers to provide effective support for students in secondary education, vocational education and adult education in acquiring key competences, with teachers themselves acquiring or continuously developing the key competences which they need for their work.

| 1.5 | Besides supporting the general objectives, the EESC feels that it is especially important to ensure that young people dropping out of school should have the opportunity through non-formal training programmes of receiving assistance in acquiring the key competences outlined in the proposal. |
| --- | --- |

1.5

Besides supporting the general objectives, the EESC feels that it is especially important to ensure that young people dropping out of school should have the opportunity through non-formal training programmes of receiving assistance in acquiring the key competences outlined in the proposal.

| 1.6 | Given the ageing population, older workers must be kept on the labour market longer, so the EESC also feels that it is particularly important for older workers in the Member States to have the opportunity to acquire competences which they lack, and for Member States to set up learning infrastructures to enable competences which have already been acquired to be maintained and developed. |
| --- | --- |

1.6

Given the ageing population, older workers must be kept on the labour market longer, so the EESC also feels that it is particularly important for older workers in the Member States to have the opportunity to acquire competences which they lack, and for Member States to set up learning infrastructures to enable competences which have already been acquired to be maintained and developed.

| 1.7 | The EESC acknowledges the cardinal role of the social partners, as the main players in the labour market, in the process of implementing and monitoring the goals set. Joint action by Europe's social partners in lifelong learning during their first multiannual work programme (2003-2005) resulted in the Framework of Actions for Lifelong Development of Competences and Qualifications, and further activities are envisaged for the 2006-2008 programme, in which Europe's social partners will negotiate on a possible voluntary agreement in this area. |
| --- | --- |

1.7

The EESC acknowledges the cardinal role of the social partners, as the main players in the labour market, in the process of implementing and monitoring the goals set. Joint action by Europe's social partners in lifelong learning during their first multiannual work programme (2003-2005) resulted in the Framework of Actions for Lifelong Development of Competences and Qualifications, and further activities are envisaged for the 2006-2008 programme, in which Europe's social partners will negotiate on a possible voluntary agreement in this area.

| 1.8 | The EESC also calls for a more active participation of NGOs in the whole process and recommends strengthening dialogue with civil society. |
| --- | --- |

1.8

The EESC also calls for a more active participation of NGOs in the whole process and recommends strengthening dialogue with civil society.

| 1.9 | It is extremely important for reliable statistics to be available in order to monitor and evaluate progress towards achieving lifelong learning objectives. The EESC therefore supports the Commission's proposal for a regulation concerning the compilation of lifelong learning statistics. The regulation puts in place frameworks capable of ensuring harmonisation or standardisation of the methods used by Member States to compile statistics, thus enhancing the reliability and comparability of data. An effort must be made to ensure that surveys provide reliable and constantly updated statistics enabling analysis of the main aspects of EU policy objectives. |
| --- | --- |

1.9

It is extremely important for reliable statistics to be available in order to monitor and evaluate progress towards achieving lifelong learning objectives. The EESC therefore supports the Commission's proposal for a regulation concerning the compilation of lifelong learning statistics. The regulation puts in place frameworks capable of ensuring harmonisation or standardisation of the methods used by Member States to compile statistics, thus enhancing the reliability and comparability of data. An effort must be made to ensure that surveys provide reliable and constantly updated statistics enabling analysis of the main aspects of EU policy objectives.

2.   Introduction (1)

| 2.1 | After a lengthy process of research, preparation and consultation, the Commission has presented its proposal establishing an integrated action programme in the field of lifelong learning. The European Economic and Social Committee welcomes this development and points out that the purpose of the ideas set out in the present opinion is to make the Commission's proposal more effective and practical. |
| --- | --- |

2.1

After a lengthy process of research, preparation and consultation, the Commission has presented its proposal establishing an integrated action programme in the field of lifelong learning. The European Economic and Social Committee welcomes this development and points out that the purpose of the ideas set out in the present opinion is to make the Commission's proposal more effective and practical.

| 2.2 | The EESC's view of the Commission's proposal is therefore based mainly on its knowledge and experience in connection with: |
| --- | --- |

2.2

The EESC's view of the Commission's proposal is therefore based mainly on its knowledge and experience in connection with:

| 2.3 | the delay in achieving the Lisbon objectives; |
| --- | --- |

2.3

the delay in achieving the Lisbon objectives;

| 2.4 | the delay in matching education and training with productivity (2); |
| --- | --- |

2.4

the delay in matching education and training with productivity (2);

| 2.5 | the demographic situation in Europe; and |
| --- | --- |

2.5

the demographic situation in Europe; and

| 2.6 | the concerns which have recently arisen at European and international level to find solutions to these problems (3). |
| --- | --- |

2.6

the concerns which have recently arisen at European and international level to find solutions to these problems (3).

3.   Outline of the Commission's proposal

| 3.1 | A Working Group on basic skills, established in 2001 in the context of Education and Training 2010 work programme, has developed a framework of key competences (4) needed in a knowledge society and prepared a number of recommendations on ensuring that everyone can acquire them (5). |
| --- | --- |

3.1

A Working Group on basic skills, established in 2001 in the context of Education and Training 2010 work programme, has developed a framework of key competences (4) needed in a knowledge society and prepared a number of recommendations on ensuring that everyone can acquire them (5).

| 3.2 | The main common objective is to ensure that by the end of initial education and training young people have developed the key competences to a level that equips them for adult life, and that adults are able to develop and update them throughout their lives. |
| --- | --- |

3.2

The main common objective is to ensure that by the end of initial education and training young people have developed the key competences to a level that equips them for adult life, and that adults are able to develop and update them throughout their lives.

| 3.3 | The proposal identifies the following key competences: 1) communication in the mother tongue; 2) communication in foreign languages; 3) mathematical competence and basic competences in science and technology; 4) digital competence; 5) learning to learn; 6) interpersonal, intercultural and social competences and civic competence; 7) entrepreneurship, and 8) cultural expression. The proposal defines competences as a combination of knowledge, skills and attitudes appropriate to the context. |
| --- | --- |

3.3

The proposal identifies the following key competences: 1) communication in the mother tongue; 2) communication in foreign languages; 3) mathematical competence and basic competences in science and technology; 4) digital competence; 5) learning to learn; 6) interpersonal, intercultural and social competences and civic competence; 7) entrepreneurship, and 8) cultural expression. The proposal defines competences as a combination of knowledge, skills and attitudes appropriate to the context.

| 3.4 | Work in the area of key competences ties in closely with many other initiatives or other ongoing activity, such as the current work on developing a European Qualifications Framework (EQF), or the endeavours to make qualifications systems more transparent (for example by recognising knowledge acquired through informal learning). |
| --- | --- |

3.4

Work in the area of key competences ties in closely with many other initiatives or other ongoing activity, such as the current work on developing a European Qualifications Framework (EQF), or the endeavours to make qualifications systems more transparent (for example by recognising knowledge acquired through informal learning).

| 3.5 | The proposal provides a reference tool identifying those key competences necessary for all, and thus supports Member States in their endeavours to ensure that key competences are integrated into their lifelong learning strategies. |
| --- | --- |

3.5

The proposal provides a reference tool identifying those key competences necessary for all, and thus supports Member States in their endeavours to ensure that key competences are integrated into their lifelong learning strategies.

| 3.6 | The aim of this reference tool is to assist political decision-makers, providers of training services, employers, and learners themselves in achieving common objectives at national and European level. |
| --- | --- |

3.6

The aim of this reference tool is to assist political decision-makers, providers of training services, employers, and learners themselves in achieving common objectives at national and European level.

| 3.7 | The recommendation defines the key competences needed by all citizens in the knowledge-based economy and society. It acknowledges that implementation decisions must be taken at national, regional and/or local level. The recommendation calls for Member States to ensure the acquisition of key competences by all by the end of initial education and training and, in the light of the European reference criteria, encourages them to tackle educational inequalities. |
| --- | --- |

3.7

The recommendation defines the key competences needed by all citizens in the knowledge-based economy and society. It acknowledges that implementation decisions must be taken at national, regional and/or local level. The recommendation calls for Member States to ensure the acquisition of key competences by all by the end of initial education and training and, in the light of the European reference criteria, encourages them to tackle educational inequalities.

| 3.8 | With regard to adult learners, the recommendation calls on Member States, with the involvement of the social partners, to put in place a comprehensive infrastructure ensuring that the elderly also have access to tools for developing competences. |
| --- | --- |

3.8

With regard to adult learners, the recommendation calls on Member States, with the involvement of the social partners, to put in place a comprehensive infrastructure ensuring that the elderly also have access to tools for developing competences.

| 3.9 | Finally, the proposal urges the Commission to support reforms at national level through peer learning, exchange of best practice, and regular evaluation of progress towards implementation of objectives. |
| --- | --- |

3.9

Finally, the proposal urges the Commission to support reforms at national level through peer learning, exchange of best practice, and regular evaluation of progress towards implementation of objectives.

| 3.10 | The proposal has no implication for the Community budget. |
| --- | --- |

3.10

The proposal has no implication for the Community budget.

4.   The EESC's general comments

| 4.1 | The Recommendation aims to support efforts by Member States to develop their basic education and training systems as well as their adult education and training provision, and the entire lifelong learning system, by providing a reference tool on key competences. Although there is still legitimate scope — and a need for — specialist discussions on the precise notion of competences, taken as a whole the Recommendation clearly identifies the course which should be set for the development of basic schooling and adult education. |
| --- | --- |

4.1

The Recommendation aims to support efforts by Member States to develop their basic education and training systems as well as their adult education and training provision, and the entire lifelong learning system, by providing a reference tool on key competences. Although there is still legitimate scope — and a need for — specialist discussions on the precise notion of competences, taken as a whole the Recommendation clearly identifies the course which should be set for the development of basic schooling and adult education.

| 4.2 | In its earlier opinion on training and efficiency (6), the EESC criticised all of the Member States for the lack of consistency and inadequate coordination between training systems. According to the EESC, continuing vocational education systems operated in isolation from the rest of the educational sector, and the link to their social and economic environment was also weak. The content of training was generally too strongly geared to short-term needs, which in the longer term could take things in the wrong direction. With this in mind, the Committee feels that the proposals for key competences could provide general points of reference common to the various training programmes, and they could also represent one of the options for organising closer coordination between the activities of the various training sub-systems. |
| --- | --- |

4.2

In its earlier opinion on training and efficiency (6), the EESC criticised all of the Member States for the lack of consistency and inadequate coordination between training systems. According to the EESC, continuing vocational education systems operated in isolation from the rest of the educational sector, and the link to their social and economic environment was also weak. The content of training was generally too strongly geared to short-term needs, which in the longer term could take things in the wrong direction. With this in mind, the Committee feels that the proposals for key competences could provide general points of reference common to the various training programmes, and they could also represent one of the options for organising closer coordination between the activities of the various training sub-systems.

| 4.3 | The variety of interpretations of key competences and the divergent nature of practical programmes based on those concepts is closely reflected in the evaluation of how the EU strategy is implemented. There is a long-standing debate both within and outside the EU on scientific and practical definitions of competence. For example, in a separate project (Definition and Selection of Competencies — DeSeCo) the OECD defined the competences which were seen as the most important (and which only partially overlap with the key competences set out in the proposal for a Recommendation). |
| --- | --- |

4.3

The variety of interpretations of key competences and the divergent nature of practical programmes based on those concepts is closely reflected in the evaluation of how the EU strategy is implemented. There is a long-standing debate both within and outside the EU on scientific and practical definitions of competence. For example, in a separate project (Definition and Selection of Competencies — DeSeCo) the OECD defined the competences which were seen as the most important (and which only partially overlap with the key competences set out in the proposal for a Recommendation).

| 4.4 | The acquisition of skills which are marketable and necessary for social success takes place in a context of competition between social groups and individuals, in keeping with the logic of the ‘knowledge-based society’. One of the objectives of government measures and strategic training programmes should be to provide equal access and opportunities for all. |
| --- | --- |

4.4

The acquisition of skills which are marketable and necessary for social success takes place in a context of competition between social groups and individuals, in keeping with the logic of the ‘knowledge-based society’. One of the objectives of government measures and strategic training programmes should be to provide equal access and opportunities for all.

| 4.5 | In line with the text of the Recommendation, it should be pointed out in connection with lifelong learning and competences that there must be a focus not only on acquiring various skills but also on maintaining skills which have already been acquired through special programmes. |
| --- | --- |

4.5

In line with the text of the Recommendation, it should be pointed out in connection with lifelong learning and competences that there must be a focus not only on acquiring various skills but also on maintaining skills which have already been acquired through special programmes.

| 4.6 | Implementing the recommendations on key competences is a major challenge for the education and training systems of the Member States. Integrating them — especially in basic training, and particularly in educational systems which have not moved on from a rigid subject-based approach — calls for a fundamentally new approach. |
| --- | --- |

4.6

Implementing the recommendations on key competences is a major challenge for the education and training systems of the Member States. Integrating them — especially in basic training, and particularly in educational systems which have not moved on from a rigid subject-based approach — calls for a fundamentally new approach.

| 4.7 | The Recommendation presents at least as much of a challenge in terms of preparing teachers and changing their attitudes. The EESC therefore feels that it is particularly important to prepare teachers to provide effective support for students in secondary education, vocational education and adult education in acquiring key competences, with teachers themselves acquiring or continuously developing the key competences which they need for their work. |
| --- | --- |

4.7

The Recommendation presents at least as much of a challenge in terms of preparing teachers and changing their attitudes. The EESC therefore feels that it is particularly important to prepare teachers to provide effective support for students in secondary education, vocational education and adult education in acquiring key competences, with teachers themselves acquiring or continuously developing the key competences which they need for their work.

| 4.8 | The proposal sees support for the acquisition of competences needed by older age groups (7) as an issue with important implications for social cohesion. In working towards higher employment as a priority EU objective, the individual Member States are concentrating their attention and training resources — including special programmes to develop competences — on people in initial training and the working-age population; however, many questions about the lack of competences among older age groups are rightly being asked. A marked generation gap already exists in certain fields, such as digital literacy. In many Member States, the strategic objectives which are defined at national level — such as e-government, or ensuring online accessibility of information and services which are important for citizens — make exercising the right to information or social participation dependent on basic competences (e.g. basic IT skills). As a result, if the elderly and other disadvantaged groups are not included in programmes to support acquisition of the most important competences, there may be negative repercussions for social cohesion. |
| --- | --- |

4.8

The proposal sees support for the acquisition of competences needed by older age groups (7) as an issue with important implications for social cohesion. In working towards higher employment as a priority EU objective, the individual Member States are concentrating their attention and training resources — including special programmes to develop competences — on people in initial training and the working-age population; however, many questions about the lack of competences among older age groups are rightly being asked. A marked generation gap already exists in certain fields, such as digital literacy. In many Member States, the strategic objectives which are defined at national level — such as e-government, or ensuring online accessibility of information and services which are important for citizens — make exercising the right to information or social participation dependent on basic competences (e.g. basic IT skills). As a result, if the elderly and other disadvantaged groups are not included in programmes to support acquisition of the most important competences, there may be negative repercussions for social cohesion.

| 4.9 | Given the complexity of the education policy issues involved in implementing competence-based training, it is extremely important to have an ongoing exchange of views among those working in the field throughout the EU; the results of this should be widely available. Due to the complexity of the subject, it would be helpful for the Commission, in compliance with the tasks entrusted to it by the TEC and the principle of subsidiarity, to provide support to educational policy specialists in the Member States, not only in formulating objectives but also in identifying possible ways, means and stumbling-blocks. (As well as focusing on examples of best practice, the exchange of experiences should also provide for opportunities to learn through the analysis of failures). |
| --- | --- |

4.9

Given the complexity of the education policy issues involved in implementing competence-based training, it is extremely important to have an ongoing exchange of views among those working in the field throughout the EU; the results of this should be widely available. Due to the complexity of the subject, it would be helpful for the Commission, in compliance with the tasks entrusted to it by the TEC and the principle of subsidiarity, to provide support to educational policy specialists in the Member States, not only in formulating objectives but also in identifying possible ways, means and stumbling-blocks. (As well as focusing on examples of best practice, the exchange of experiences should also provide for opportunities to learn through the analysis of failures).

5.   Compilation of statistics on lifelong learning

| 5.1 | In this respect, the subject of lifelong learning is closely connected with the proposal for a regulation on statistics concerning lifelong learning (8). |
| --- | --- |

5.1

In this respect, the subject of lifelong learning is closely connected with the proposal for a regulation on statistics concerning lifelong learning (8).

| 5.2 | The proposal for a regulation arose from the EU's ever-growing need for comparable statistics and indicators relating to education, training and lifelong learning, as these facilitate use of the open method of coordination in the fields of education and training policy. |
| --- | --- |

5.2

The proposal for a regulation arose from the EU's ever-growing need for comparable statistics and indicators relating to education, training and lifelong learning, as these facilitate use of the open method of coordination in the fields of education and training policy.

| 5.2.1 | To date, cooperation and exchange of statistics between Member States has been based on verbal agreements. The aim of the proposal is to establish a legal basis for a sustainable system for producing educational statistics, which could represent a starting point for dialogue on European-level policies in various areas. |
| --- | --- |

5.2.1

To date, cooperation and exchange of statistics between Member States has been based on verbal agreements. The aim of the proposal is to establish a legal basis for a sustainable system for producing educational statistics, which could represent a starting point for dialogue on European-level policies in various areas.

| 5.2.2 | The aim is to put in place a framework encompassing all current and planned measures in the field of lifelong learning statistics (with the exception of corporate training measured by the Continuing Vocational Training Survey, which was recently the subject of separate legislation). |
| --- | --- |

5.2.2

The aim is to put in place a framework encompassing all current and planned measures in the field of lifelong learning statistics (with the exception of corporate training measured by the Continuing Vocational Training Survey, which was recently the subject of separate legislation).

| 5.2.3 | The proposal only applies to educational, training and lifelong learning statistics submitted to the European Commission for the purposes of producing Community statistics. |
| --- | --- |

5.2.3

The proposal only applies to educational, training and lifelong learning statistics submitted to the European Commission for the purposes of producing Community statistics.

| 5.2.4 | The main objective of the regulation is to develop common statistical standards enabling harmonised production of statistics, and thus to establish a common framework for the systematic production of Community statistics on education and lifelong learning. |
| --- | --- |

5.2.4

The main objective of the regulation is to develop common statistical standards enabling harmonised production of statistics, and thus to establish a common framework for the systematic production of Community statistics on education and lifelong learning.

| 5.3 | It is extremely important for the objectives of the EU strategy to be defined in such a way as to reflect a realistic overview of the processes concerned. It is at least equally important for evaluations which are seen to be appropriate during the implementation of strategies to be able to draw on the methodologically reliable, regularly conducted compilation of data and data sets, and on the conclusions which can be deduced from them. Data and indicators suitable for drawing international comparisons must be available. |
| --- | --- |

5.3

It is extremely important for the objectives of the EU strategy to be defined in such a way as to reflect a realistic overview of the processes concerned. It is at least equally important for evaluations which are seen to be appropriate during the implementation of strategies to be able to draw on the methodologically reliable, regularly conducted compilation of data and data sets, and on the conclusions which can be deduced from them. Data and indicators suitable for drawing international comparisons must be available.

| 5.3.1 | In practice, there is extremely unequal access to training; furthermore, rather than compensating for existing differences, post-school, adult education further accentuates them (according to existing surveys on this issue). Regular provision of data based on standard principles and methods can support monitoring and evaluation of this issue. |
| --- | --- |

5.3.1

In practice, there is extremely unequal access to training; furthermore, rather than compensating for existing differences, post-school, adult education further accentuates them (according to existing surveys on this issue). Regular provision of data based on standard principles and methods can support monitoring and evaluation of this issue.

| 5.4 | At present, various educational, training and adult learning fields are covered by a series of international statistical surveys which are organised in parallel or largely independently of one another. EU statistical systems are insufficient to cover the area as a whole on their own, even using the new statistical surveys which are currently beginning. There are certain differences between Eurostat and other statistical organisations in terms of surveys, their content and purpose. |
| --- | --- |

5.4

At present, various educational, training and adult learning fields are covered by a series of international statistical surveys which are organised in parallel or largely independently of one another. EU statistical systems are insufficient to cover the area as a whole on their own, even using the new statistical surveys which are currently beginning. There are certain differences between Eurostat and other statistical organisations in terms of surveys, their content and purpose.

| 5.5 | In the interests of making rational use of resources, overlaps between regular surveys should be avoided unless technically warranted; at the same time, there should be systematic efforts to ensure that the results of various surveys can be inter-related. This can be achieved only if there is close cooperation with specialist bodies outside the EU (the OECD's International Association for the Evaluation of Educational Achievement (IEA)) and use of their surveys. |
| --- | --- |

5.5

In the interests of making rational use of resources, overlaps between regular surveys should be avoided unless technically warranted; at the same time, there should be systematic efforts to ensure that the results of various surveys can be inter-related. This can be achieved only if there is close cooperation with specialist bodies outside the EU (the OECD's International Association for the Evaluation of Educational Achievement (IEA)) and use of their surveys.

| 5.6 | In the current situation, close technical cooperation with organisations outside the EU is extremely important, given that measurement of key competences is not one of the tasks falling within the remit of Eurostat. (The surveys conducted by the OECD, especially the PISA study and the Programme for International Assessment of Adult Competencies (PIAAC), which is currently being developed, could play a leading role in the assessment of competences.) |
| --- | --- |

5.6

In the current situation, close technical cooperation with organisations outside the EU is extremely important, given that measurement of key competences is not one of the tasks falling within the remit of Eurostat. (The surveys conducted by the OECD, especially the PISA study and the Programme for International Assessment of Adult Competencies (PIAAC), which is currently being developed, could play a leading role in the assessment of competences.)

| 5.7 | There is a very strong need for statistics which contribute to the development of policies and for data which support the evaluation of outcomes; indeed, the demand for up-to-date statistics is growing significantly. It is extremely important for Member States to use identical methods for the compilation of statistics, and the reliability and comparability of such statistics must be a primary consideration. |
| --- | --- |

5.7

There is a very strong need for statistics which contribute to the development of policies and for data which support the evaluation of outcomes; indeed, the demand for up-to-date statistics is growing significantly. It is extremely important for Member States to use identical methods for the compilation of statistics, and the reliability and comparability of such statistics must be a primary consideration.

6.   Specific observations

| 6.1 | It is very expensive to operate statistical systems. With this in mind, the EESC feels that, depending on Member States' capacities, it would be worth considering the long-term feasibility of shortening the five-year cycle for compiling statistics on lifelong learning, i.e. of conducting more frequent surveys. In terms of collecting data on subjects of particular relevance from a political perspective, supplementing broad statistical surveys with targeted studies at intervals of as little as one year and smaller-scale surveys could represent a short-term solution. These targeted surveys and analyses based on them would enable the monitoring of processes of particular political relevance, and evaluation of progress towards achieving EU lifelong learning objectives. |
| --- | --- |

6.1

It is very expensive to operate statistical systems. With this in mind, the EESC feels that, depending on Member States' capacities, it would be worth considering the long-term feasibility of shortening the five-year cycle for compiling statistics on lifelong learning, i.e. of conducting more frequent surveys. In terms of collecting data on subjects of particular relevance from a political perspective, supplementing broad statistical surveys with targeted studies at intervals of as little as one year and smaller-scale surveys could represent a short-term solution. These targeted surveys and analyses based on them would enable the monitoring of processes of particular political relevance, and evaluation of progress towards achieving EU lifelong learning objectives.

| 6.2 | Given that company training courses represent an important sector of lifelong learning activity, it would be worth including statistics on such courses in the scope of the proposed regulation. Some company training courses (training in companies with ten or more employees) are already covered by the five-yearly Eurostat Continuing Vocational Training Survey (CVTS); however, this does not include data on training provided by companies with fewer than ten employees. |
| --- | --- |

6.2

Given that company training courses represent an important sector of lifelong learning activity, it would be worth including statistics on such courses in the scope of the proposed regulation. Some company training courses (training in companies with ten or more employees) are already covered by the five-yearly Eurostat Continuing Vocational Training Survey (CVTS); however, this does not include data on training provided by companies with fewer than ten employees.

Brussels, 18 May 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

---

(1)  EESC opinion on the ‘Integrated action programme in lifelong learning’ – SOC/176 - rapporteur Mr Koryfidis – OJ C 221, 8.9.2005.

1

(2)  EESC opinion on ‘Training and productivity’ (SOC/183), 28.10.2004 – rapporteur: Mr Koryfidis - OJ C 120, 20.05.2005.

2

(3)  See March 2005 Kok Report ( http://europa.eu.int/comm/lisbon_strategy/pdf/2004-1866-EN-complet.pdf).

3

(4)  The Working Group preferred the term ‘competence’ that refers to a combination of knowledge, skills and attitudes and ‘key competence’ to define competences necessary for all. It thus includes basic skills, but goes beyond them.

4

(5)  Working group on Basic skills, progress reports 2003, 2004: http://europa.eu.int/comm/education/policies/2010/objectives_en.html#basic.

5

(6)  EESC opinion on ‘Training and productivity’ (SOC/183), 28.10.2004 – rapporteur: Mr Koryfidis - OJ C 120, 20.5.2005.

6

(7)  ‘Older age groups’ are defined as people who are not in employment, and/or who have definitively ceased any kind of employment.

7

(8)  Proposal for a regulation of the European Parliament and of the Council concerning the production and development of statistics on education and lifelong learning. COM(2005) 625 final – 2005/0248 (COD).

8

---