# Official Journal C 240/1 Ju

| | ISSN 1977-091X |
| --- | --- |
| Official Journal
  of the European Union | C 240 |
| | |
| English edition | Information and Notices | Volume 591 July 2016 |

ISSN 1977-091X

Official Journal

of the European Union

C 240

English edition

Information and Notices

Volume 591 July 2016

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| Notice No | Contents | page |
| --- | --- | --- |
| | I   Resolutions, recommendations and opinions |
| | OPINIONS |
| | Committee of the Regions |
| | 117th plenary session, 7-8 April 2016 |
| 2016/C 240/01 | Opinion of the European Committee of the Regions — Follow-up to the Five Presidents’ Report: Completing Europe’s Economic and Monetary Union | 1 |
| 2016/C 240/02 | Opinion of the European Committee of the Regions — Working together for jobs and growth: the role of national and regional promotional banks (NPBs) in the investment plan for Europe | 6 |
| 2016/C 240/03 | Opinion of the European Committee of the Regions — Concrete steps for implementing the EU Urban Agenda | 9 |
| 2016/C 240/04 | Opinion of the European Committee of the Regions — EU environment law: improving reporting and compliance | 15 |
| 2016/C 240/05 | Opinion of the European Committee of the Regions — Delivering a New Deal for Energy Consumers | 24 |
| 2016/C 240/06 | Opinion of the European Committee of the Regions — Protection of refugees in their areas of origin: a new perspective | 31 |
| 2016/C 240/07 | Opinion of the European Committee of the Regions — A more responsible trade and investment policy | 37 |
| 2016/C 240/08 | Opinion of the European Committee of the Regions — Upgrading the Single Market | 43 |

Notice No

Contents

page

I   Resolutions, recommendations and opinions

OPINIONS

Committee of the Regions

117th plenary session, 7-8 April 2016

2016/C 240/01

Opinion of the European Committee of the Regions — Follow-up to the Five Presidents’ Report: Completing Europe’s Economic and Monetary Union

1

2016/C 240/02

Opinion of the European Committee of the Regions — Working together for jobs and growth: the role of national and regional promotional banks (NPBs) in the investment plan for Europe

6

2016/C 240/03

Opinion of the European Committee of the Regions — Concrete steps for implementing the EU Urban Agenda

9

2016/C 240/04

Opinion of the European Committee of the Regions — EU environment law: improving reporting and compliance

15

2016/C 240/05

Opinion of the European Committee of the Regions — Delivering a New Deal for Energy Consumers

24

2016/C 240/06

Opinion of the European Committee of the Regions — Protection of refugees in their areas of origin: a new perspective

31

2016/C 240/07

Opinion of the European Committee of the Regions — A more responsible trade and investment policy

37

2016/C 240/08

Opinion of the European Committee of the Regions — Upgrading the Single Market

43

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| | III   Preparatory acts |
| --- | --- |
| | COMMITTEE OF THE REGIONS |
| | 117th plenary session, 7-8 April 2016 |
| 2016/C 240/09 | Opinion of the European Committee of the Regions — Structural Reform Support Programme for the period 2017 to 2020 | 49 |
| 2016/C 240/10 | Opinion of the European Committee of the Regions — Cost-effective emission reductions and low-carbon investments | 62 |
| 2016/C 240/11 | Opinion of the European Committee of the Regions — Modernisation of the EU copyright rules | 72 |

III   Preparatory acts

COMMITTEE OF THE REGIONS

117th plenary session, 7-8 April 2016

2016/C 240/09

Opinion of the European Committee of the Regions — Structural Reform Support Programme for the period 2017 to 2020

49

2016/C 240/10

Opinion of the European Committee of the Regions — Cost-effective emission reductions and low-carbon investments

62

2016/C 240/11

Opinion of the European Committee of the Regions — Modernisation of the EU copyright rules

72

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| EN | |
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EN

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I Resolutions, recommendations and opinions

OPINIONS

Committee of the Regions

117th plenary session, 7-8 April 2016

| 1.7.2016 | EN | Official Journal of the European Union | C 240/1 |
| --- | --- | --- | --- |

1.7.2016

EN

Official Journal of the European Union

C 240/1

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Opinion of the European Committee of the Regions — Follow-up to the Five Presidents’ Report: Completing Europe’s Economic and Monetary Union

(2016/C 240/01)

| Rapporteur: | Paul LINDQUIST (SE/EPP), Commissioner of Stockholm County Council |
| --- | --- |
| Reference document: | The Five Presidents’ Report: Completing Europe’s Economic and Monetary Union, Collection Background documents on economic and monetary union, first published on 22 June 2015 |

Rapporteur:

Paul LINDQUIST (SE/EPP), Commissioner of Stockholm County Council

Reference document:

The Five Presidents’ Report: Completing Europe’s Economic and Monetary Union, Collection Background documents on economic and monetary union, first published on 22 June 2015

POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

Introduction

| 1. | welcomes the Five Presidents’ Report as an important step towards making the economic and monetary union (EMU) more resilient to economic shocks, improving application of the principles and objectives of EMU as set out in Article 3 of the Treaty on European Union and Article 120 of the Treaty on the Functioning of the European Union, and introducing reforms to enhance the democratic legitimacy of EMU governance; |
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1.

welcomes the Five Presidents’ Report as an important step towards making the economic and monetary union (EMU) more resilient to economic shocks, improving application of the principles and objectives of EMU as set out in Article 3 of the Treaty on European Union and Article 120 of the Treaty on the Functioning of the European Union, and introducing reforms to enhance the democratic legitimacy of EMU governance;

| 2. | notes, however, that the report does not make any proposals for reform of the European Stability Mechanism and does not address the issue of sovereign default within EMU; feels that there should be a greater focus on addressing the core problems of monetary union, namely current account imbalances caused by differences in productivity growth, which also lead to imbalances in capital flows between countries and regions; mechanisms must also be introduced to provide feedback to countries and regions where politicians or economic operators are deviating from what is considered to be sound policy and sound risk-taking; |
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2.

notes, however, that the report does not make any proposals for reform of the European Stability Mechanism and does not address the issue of sovereign default within EMU; feels that there should be a greater focus on addressing the core problems of monetary union, namely current account imbalances caused by differences in productivity growth, which also lead to imbalances in capital flows between countries and regions; mechanisms must also be introduced to provide feedback to countries and regions where politicians or economic operators are deviating from what is considered to be sound policy and sound risk-taking;

| 3. | believes that the present economic situation, with fragile growth and high unemployment, justifies an integrated approach in order to consolidate public finances in the Member States, based among other things on the further deepening of the Single Market (1) and increased efforts to assist in the continued implementation of structural reforms and stimulate investment, thereby to generate sustainable growth for the future; |
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3.

believes that the present economic situation, with fragile growth and high unemployment, justifies an integrated approach in order to consolidate public finances in the Member States, based among other things on the further deepening of the Single Market (1) and increased efforts to assist in the continued implementation of structural reforms and stimulate investment, thereby to generate sustainable growth for the future;

| 4. | notes that migration and labour mobility offer the potential to boost growth in the Union, but this will mean that certain issues surrounding access to housing, public and social services and labour market flexibility need to be tackled; also considers that arrangements must be made for Union co-funding to help increase reception capacity; |
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4.

notes that migration and labour mobility offer the potential to boost growth in the Union, but this will mean that certain issues surrounding access to housing, public and social services and labour market flexibility need to be tackled; also considers that arrangements must be made for Union co-funding to help increase reception capacity;

| 5. | stresses the need to strengthen ownership and democratic legitimacy across the European Union, while at the same time strengthening the regional dimension so that the legal framework is implemented fairly and consistently throughout the Union, whilst respecting the concept of subsidiarity; |
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5.

stresses the need to strengthen ownership and democratic legitimacy across the European Union, while at the same time strengthening the regional dimension so that the legal framework is implemented fairly and consistently throughout the Union, whilst respecting the concept of subsidiarity;

| 6. | welcomes the two-stage approach that first builds on existing instruments and treaties, in order to then implement more far-reaching changes in a second stage, so as to make the convergence process even more binding for euro-area Member States via commonly agreed convergence guidelines; |
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6.

welcomes the two-stage approach that first builds on existing instruments and treaties, in order to then implement more far-reaching changes in a second stage, so as to make the convergence process even more binding for euro-area Member States via commonly agreed convergence guidelines;

Towards economic union — convergence, welfare and social cohesion

| 7. | stresses the need for greater convergence, both between Member States and within Member States, and is concerned about the disparities that, in some cases, are larger within Member States than between them; |
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7.

stresses the need for greater convergence, both between Member States and within Member States, and is concerned about the disparities that, in some cases, are larger within Member States than between them;

| 8. | at the same time emphasises that social, economic and territorial disparities can only be reduced through a concept that is based on the 2020 strategy and includes a regional dimension and results-oriented cohesion policy, and therefore reiterates its support for a process of economic and social convergence. The CoR also reiterates its call for a broad Europe-wide consultation on the future territorial vision of the European Union to 2050. Such clear vision is needed, to which policies and funding mechanisms could subsequently be aligned (2). The CoR welcomes the current exploration of Cohesion Policy strategies beyond 2020; |
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8.

at the same time emphasises that social, economic and territorial disparities can only be reduced through a concept that is based on the 2020 strategy and includes a regional dimension and results-oriented cohesion policy, and therefore reiterates its support for a process of economic and social convergence. The CoR also reiterates its call for a broad Europe-wide consultation on the future territorial vision of the European Union to 2050. Such clear vision is needed, to which policies and funding mechanisms could subsequently be aligned (2). The CoR welcomes the current exploration of Cohesion Policy strategies beyond 2020;

| 9. | stresses the need to further support the development of border, peripheral and outermost regions and those having to deal with demographic challenges to ensure that convergence takes places in a consistent and continuous way and in line with agreed EU-wide strategies; |
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9.

stresses the need to further support the development of border, peripheral and outermost regions and those having to deal with demographic challenges to ensure that convergence takes places in a consistent and continuous way and in line with agreed EU-wide strategies;

| 10. | warns that a ‘one size fits all’ solution will not work, as the situation both within and between Member States requires flexibility, which means that the competitiveness authorities must respect national wage-setting mechanisms and not take over the role played by the social partners in this area; |
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10.

warns that a ‘one size fits all’ solution will not work, as the situation both within and between Member States requires flexibility, which means that the competitiveness authorities must respect national wage-setting mechanisms and not take over the role played by the social partners in this area;

| 11. | considers that the competitiveness authorities should take account of all aspects of the business environment in the broadest sense, i.e. including factors such as productivity, skills, innovation, the business environment and red tape. The Committee therefore agrees that the concept of ‘competitiveness’ cannot simply be reduced to a matter of wage levels; |
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11.

considers that the competitiveness authorities should take account of all aspects of the business environment in the broadest sense, i.e. including factors such as productivity, skills, innovation, the business environment and red tape. The Committee therefore agrees that the concept of ‘competitiveness’ cannot simply be reduced to a matter of wage levels;

| 12. | agrees that there should be a greater focus on employment and welfare; |
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12.

agrees that there should be a greater focus on employment and welfare;

| 13. | notes that an assessment of social indicators shows that unemployment, poverty and social exclusion are concentrated in less developed regions and clearly correlate with how effectively previous recommendations, for example under the 2020 strategy, have been implemented; |
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13.

notes that an assessment of social indicators shows that unemployment, poverty and social exclusion are concentrated in less developed regions and clearly correlate with how effectively previous recommendations, for example under the 2020 strategy, have been implemented;

| 14. | welcomes the fact that the Five Presidents’ Report fundamentally acknowledges that the social dimension is economically necessary, reiterates in this context its support for the appeal made by the European Parliament to the Member States to sign a Social Investment Pact, which would set social investment targets at national level, in order to achieve the objectives of the Europe 2020 strategy in terms of employment as well as social provision and education (3); |
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14.

welcomes the fact that the Five Presidents’ Report fundamentally acknowledges that the social dimension is economically necessary, reiterates in this context its support for the appeal made by the European Parliament to the Member States to sign a Social Investment Pact, which would set social investment targets at national level, in order to achieve the objectives of the Europe 2020 strategy in terms of employment as well as social provision and education (3);

| 15. | welcomes the fact that the Commission acknowledges the role of the social partners in public acceptance of the further development of economic and monetary union. This includes both their role in drawing up national reform programmes and, in general, the greater focus on employment and social performance and on the envisaged ‘pillar of social rights’. Dialogue with the social partners is useful and can increase acceptance in the Member States. In future, the social partners could also make a significant contribution to potential joint projects which they develop based on their own joint action plan; |
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15.

welcomes the fact that the Commission acknowledges the role of the social partners in public acceptance of the further development of economic and monetary union. This includes both their role in drawing up national reform programmes and, in general, the greater focus on employment and social performance and on the envisaged ‘pillar of social rights’. Dialogue with the social partners is useful and can increase acceptance in the Member States. In future, the social partners could also make a significant contribution to potential joint projects which they develop based on their own joint action plan;

| 16. | considers it necessary to address regional disparities in order to tackle social inequalities, boost growth and jobs, and improve competitiveness and cohesion within the EMU and the EU, and highlights the key role played by local and regional authorities as employers and in creating a business-friendly environment; |
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16.

considers it necessary to address regional disparities in order to tackle social inequalities, boost growth and jobs, and improve competitiveness and cohesion within the EMU and the EU, and highlights the key role played by local and regional authorities as employers and in creating a business-friendly environment;

| 17. | points out that local and regional authorities play an instrumental role in increasing competitiveness, via local and regional initiatives; |
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17.

points out that local and regional authorities play an instrumental role in increasing competitiveness, via local and regional initiatives;

| 18. | welcomes the fact that the Recommendation on the establishment of National Competitiveness Boards within the euro area (COM(2015) 601 final) makes it clear that these boards should simply provide support for decision-making, not present completed proposals; |
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18.

welcomes the fact that the Recommendation on the establishment of National Competitiveness Boards within the euro area (COM(2015) 601 final) makes it clear that these boards should simply provide support for decision-making, not present completed proposals;

On the European Semester

| 19. | welcomes the fact that the European Semester is being streamlined and strengthened within the current legislative framework, and that the documents are being coordinated to improve focus and effectiveness and to clarify ownership, with the aim of achieving the EU’s good governance goals; |
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19.

welcomes the fact that the European Semester is being streamlined and strengthened within the current legislative framework, and that the documents are being coordinated to improve focus and effectiveness and to clarify ownership, with the aim of achieving the EU’s good governance goals;

| 20. | acknowledges the value of the European Semester as a tool for delivering reforms at national and EU level by ensuring that the EU and its Member States coordinate their economic policies; |
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20.

acknowledges the value of the European Semester as a tool for delivering reforms at national and EU level by ensuring that the EU and its Member States coordinate their economic policies;

| 21. | reiterates its call for the Commission and Parliament to adopt a code of conduct to guarantee that local and regional authorities are involved in a structured way in the European Semester, the intention being to present a specific proposal in 2016, and undertakes to engage in ongoing dialogue with the Commission on this issue; |
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21.

reiterates its call for the Commission and Parliament to adopt a code of conduct to guarantee that local and regional authorities are involved in a structured way in the European Semester, the intention being to present a specific proposal in 2016, and undertakes to engage in ongoing dialogue with the Commission on this issue;

| 22. | stresses that country reports and country-specific recommendations should specifically address issues linked to regional disparities and systematically build on input from the local and regional levels; |
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22.

stresses that country reports and country-specific recommendations should specifically address issues linked to regional disparities and systematically build on input from the local and regional levels;

| 23. | finds it regrettable that the modified structure of the European Semester makes no mention of the CoR in the discussion on the euro area’s priorities, and urges the Commission to address regional issues in the documents steering the European Semester, supported by systematic regional analyses of employment, social and other issues; |
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23.

finds it regrettable that the modified structure of the European Semester makes no mention of the CoR in the discussion on the euro area’s priorities, and urges the Commission to address regional issues in the documents steering the European Semester, supported by systematic regional analyses of employment, social and other issues;

Towards financial union – integrated finance policy for an integrated economy

| 24. | believes that, in the short term, completion of the banking union is the most effective instrument in efforts to prevent crises in the financial system, break the vicious circle between national banks and Member States and minimise the negative effects of economic shocks; |
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24.

believes that, in the short term, completion of the banking union is the most effective instrument in efforts to prevent crises in the financial system, break the vicious circle between national banks and Member States and minimise the negative effects of economic shocks;

| 25. | urges the Commission and the Member States to reduce the risks in the financial system, increase price flexibility and implement national deposit insurance schemes; |
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25.

urges the Commission and the Member States to reduce the risks in the financial system, increase price flexibility and implement national deposit insurance schemes;

| 26. | therefore believes that, before a European Deposit Insurance Scheme (EDIS) can be created, the European resolution funds and national deposit insurance schemes must have been established and funded, and the link between them must have been clarified so as to minimise moral hazard; |
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26.

therefore believes that, before a European Deposit Insurance Scheme (EDIS) can be created, the European resolution funds and national deposit insurance schemes must have been established and funded, and the link between them must have been clarified so as to minimise moral hazard;

| 27. | calls on the European Central Bank (ECB) and the European Banking Authority (EBA) to conduct asset quality reviews and stress tests for the financial institutions affected by EDIS, in order to ensure a level playing-field for those institutions; |
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27.

calls on the European Central Bank (ECB) and the European Banking Authority (EBA) to conduct asset quality reviews and stress tests for the financial institutions affected by EDIS, in order to ensure a level playing-field for those institutions;

| 28. | invites the Commission to explain the added value of the European Fiscal Board, whose secretariat is attached to the Commission’s secretariat-general. It is particularly important to discuss how to ensure that such a board does not unnecessarily add to an already complex macroeconomic surveillance environment; |
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28.

invites the Commission to explain the added value of the European Fiscal Board, whose secretariat is attached to the Commission’s secretariat-general. It is particularly important to discuss how to ensure that such a board does not unnecessarily add to an already complex macroeconomic surveillance environment;

| 29. | finds it regrettable that no opportunity was provided to submit comments before the European Fiscal Board was created. The CoR believes, as a matter of principle, that it is important to consistently monitor compliance with the rules of the Stability and Growth Pact. At the same time, the current design of the proposed body raises doubts as to whether its benefits will be proportionate to the expected additional red tape. It is also unclear what the legal basis is for its creation and what the relationship will be between the European Fiscal Board and the national fiscal advisory councils; |
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29.

finds it regrettable that no opportunity was provided to submit comments before the European Fiscal Board was created. The CoR believes, as a matter of principle, that it is important to consistently monitor compliance with the rules of the Stability and Growth Pact. At the same time, the current design of the proposed body raises doubts as to whether its benefits will be proportionate to the expected additional red tape. It is also unclear what the legal basis is for its creation and what the relationship will be between the European Fiscal Board and the national fiscal advisory councils;

| 30. | is keen to see the implementation of the Capital Markets Union, which will enable capital flows across borders without threatening the stability of different regions and countries, and help businesses, and particularly microenterprises and SMEs, to access a wide range of funding sources; |
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30.

is keen to see the implementation of the Capital Markets Union, which will enable capital flows across borders without threatening the stability of different regions and countries, and help businesses, and particularly microenterprises and SMEs, to access a wide range of funding sources;

| 31. | believes that a coherent and well-designed Capital Markets Union should encompass all 28 Member States and promote a level playing-field throughout the EU, and urges the Member States to ensure that the banking union remains accessible to those Member States that have not yet introduced the euro; |
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31.

believes that a coherent and well-designed Capital Markets Union should encompass all 28 Member States and promote a level playing-field throughout the EU, and urges the Member States to ensure that the banking union remains accessible to those Member States that have not yet introduced the euro;

Towards fiscal union – an integrated framework for sound and integrated financial policy

| 32. | insists that the Stability and Growth Pact must be respected and stresses the importance of each Member State having a sound economy and stable public finances, as a prerequisite for the necessary short- and long-term public investment (4); |
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32.

insists that the Stability and Growth Pact must be respected and stresses the importance of each Member State having a sound economy and stable public finances, as a prerequisite for the necessary short- and long-term public investment (4);

| 33. | calls for the Member States to be required to demonstrate that they have a responsible economic policy in order to gain access to European economic stabilisation instruments. Use of these instruments must go hand in hand with the full implementation of structural reforms, with a view to greater convergence, coordination and integration, and the aid must not under any circumstances result in permanent one-way flows between countries. The Stability Fund and other instruments, such as the Structural Reform Support Programme, should not aim to replace existing cohesion policy; |
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33.

calls for the Member States to be required to demonstrate that they have a responsible economic policy in order to gain access to European economic stabilisation instruments. Use of these instruments must go hand in hand with the full implementation of structural reforms, with a view to greater convergence, coordination and integration, and the aid must not under any circumstances result in permanent one-way flows between countries. The Stability Fund and other instruments, such as the Structural Reform Support Programme, should not aim to replace existing cohesion policy;

| 34. | agrees with the Commission that the forthcoming review of the Six Pack and Two Pack should be taken as an opportunity to work to improve transparency within and legitimacy for the EU, which is particularly important at local and regional level, and therefore calls for the establishment of ‘economic dialogue’ between the CoR and the Commission, in line with the existing dialogue between the Commission and Parliament; |
| --- | --- |

34.

agrees with the Commission that the forthcoming review of the Six Pack and Two Pack should be taken as an opportunity to work to improve transparency within and legitimacy for the EU, which is particularly important at local and regional level, and therefore calls for the establishment of ‘economic dialogue’ between the CoR and the Commission, in line with the existing dialogue between the Commission and Parliament;

| 35. | reiterates its belief that fiscal capacity is necessary to equip EMU with a temporary shock absorption mechanism (5); |
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35.

reiterates its belief that fiscal capacity is necessary to equip EMU with a temporary shock absorption mechanism (5);

| 36. | notes that the conditions for financing investment in the real economy have been fundamentally changed by the current economic crisis, and highlights the importance of local and regional authorities in maximising effectiveness and identifying obstacles to productive investment; |
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36.

notes that the conditions for financing investment in the real economy have been fundamentally changed by the current economic crisis, and highlights the importance of local and regional authorities in maximising effectiveness and identifying obstacles to productive investment;

| 37. | reiterates its call for a golden rule keeping long-term investment separate from current expenditure, and advocates establishing a framework consistent with European criteria for identifying the most important social and infrastructure investment needed to maintain long-term growth; |
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37.

reiterates its call for a golden rule keeping long-term investment separate from current expenditure, and advocates establishing a framework consistent with European criteria for identifying the most important social and infrastructure investment needed to maintain long-term growth;

| 38. | stresses the need to improve the quality of public spending, including by applying the OECD’s principles on effective public investment across levels of government, and calls for a debate on how fiscal decentralisation in various areas of the public sector could improve the quality of public expenditure, thus generating growth-friendly fiscal consolidation, without threatening the principle of solidarity between the sub-national regions of individual Member States; |
| --- | --- |

38.

stresses the need to improve the quality of public spending, including by applying the OECD’s principles on effective public investment across levels of government, and calls for a debate on how fiscal decentralisation in various areas of the public sector could improve the quality of public expenditure, thus generating growth-friendly fiscal consolidation, without threatening the principle of solidarity between the sub-national regions of individual Member States;

| 39. | reiterates its call for the European Commission to publish a White Paper setting out an EU-level typology for the quality of public investment in public spending accounts on the basis of their long-term effects, and to include a chapter on quality of public investment, including at subnational level, in every annual report on Economic and Monetary Union (EMU) public finances (6); |
| --- | --- |

39.

reiterates its call for the European Commission to publish a White Paper setting out an EU-level typology for the quality of public investment in public spending accounts on the basis of their long-term effects, and to include a chapter on quality of public investment, including at subnational level, in every annual report on Economic and Monetary Union (EMU) public finances (6);

Democratic accountability, legitimacy and stronger institutions

| 40. | believes that a deeper and more resilient economic and monetary union would benefit from having less complicated structures, clearer ownership and greater transparency, rather than new layers of rules added on top of the existing ones, and therefore welcomes the Commission’s desire to simplify, increase transparency and clarify ownership; |
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40.

believes that a deeper and more resilient economic and monetary union would benefit from having less complicated structures, clearer ownership and greater transparency, rather than new layers of rules added on top of the existing ones, and therefore welcomes the Commission’s desire to simplify, increase transparency and clarify ownership;

| 41. | calls for a more realistic attitude to the practical implementation of administrative sanctions against countries that fail to comply with jointly defined rules, and for a discussion of how market mechanisms could form an alternative or adjunct; |
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41.

calls for a more realistic attitude to the practical implementation of administrative sanctions against countries that fail to comply with jointly defined rules, and for a discussion of how market mechanisms could form an alternative or adjunct;

| 42. | stresses that there needs to be a particular focus on ensuring that economic governance is characterised by clear accountability at all levels, including local and regional, as it is the latter which are often responsible for policy implementation in various fields such as employment, healthcare and education; |
| --- | --- |

42.

stresses that there needs to be a particular focus on ensuring that economic governance is characterised by clear accountability at all levels, including local and regional, as it is the latter which are often responsible for policy implementation in various fields such as employment, healthcare and education;

Final comments

| 43. | urges the Commission to involve the CoR in the preparation of the White Paper on the transition between phase 1 and phase 2 of the reform of the EMU; |
| --- | --- |

43.

urges the Commission to involve the CoR in the preparation of the White Paper on the transition between phase 1 and phase 2 of the reform of the EMU;

| 44. | highlights the importance of ensuring that efforts to deepen monetary union also take account of the implications for relations with non-euro countries and that it is clear which proposals cover all Member States and which apply only to the euro area; |
| --- | --- |

44.

highlights the importance of ensuring that efforts to deepen monetary union also take account of the implications for relations with non-euro countries and that it is clear which proposals cover all Member States and which apply only to the euro area;

| 45. | stresses that any measures regarding the completion of EMU must be implemented as transparently as possible, in order to avoid alienating those Member States that do not yet use the euro and creating a ‘two-speed Europe’. |
| --- | --- |

45.

stresses that any measures regarding the completion of EMU must be implemented as transparently as possible, in order to avoid alienating those Member States that do not yet use the euro and creating a ‘two-speed Europe’.

Brussels, 7 April 2016.

The President of the European Committee of the Regions

Markku MARKKULA

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(1)  See CoR opinion on Upgrading the Single Market, adopted on 7-8 April 2016.

1

(2)  CoR opinion on Territorial Vision 2050, what future? CDR 4285/2015 of 3 December 2015.

2

(3)  CoR Resolution of 4 July 2013, Deepening of the Economic and Monetary Union (EMU), CDR4129-2013_00_00_TRA_RES-RESOL-V-007.

3

(4)  Point 8 of the CoR’s Resolution on the European Commission’s communication on the ‘Annual Growth Survey 2016 – Strengthening the recovery and fostering convergence’, COR_2015_06756_00_00_RES-RESOL-VI/008.

4

(5)  See CoR Resolution of 4 July 2013, Deepening of the Economic and Monetary Union (EMU), CDR4129-2013_00_00_TRA_RES-RESOL-V/007.

5

(6)  Point 15 of the CoR opinion on ‘Making the best use of the flexibility within the existing rules of the Stability and Growth Pact’ (rapporteur: Olga Zrihen (BE-PES)); COR-2015-01185.

6

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| 1.7.2016 | EN | Official Journal of the European Union | C 240/6 |
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1.7.2016

EN

Official Journal of the European Union

C 240/6

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Opinion of the European Committee of the Regions — Working together for jobs and growth: the role of national and regional promotional banks (NPBs) in the investment plan for Europe

(2016/C 240/02)

| Rapporteur: | Adam BANASZAK (PL/ECR), Vice-President of the Kujawsko-Pomorskie Regional Assembly |
| --- | --- |
| References: | Communication from the Commission to the European Parliament and the Council: Working together for jobs and growth: The role of National Promotional Banks (NPBs) in supporting the Investment Plan for Europe
  COM(2015) 361 final |

Rapporteur:

Adam BANASZAK (PL/ECR), Vice-President of the Kujawsko-Pomorskie Regional Assembly

References:

Communication from the Commission to the European Parliament and the Council: Working together for jobs and growth: The role of National Promotional Banks (NPBs) in supporting the Investment Plan for Europe

COM(2015) 361 final

POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

| 1. | welcomes the Commission’s initiative to support promotional banks as well as the creation of investment platforms as an important element of the investment plan for Europe. At the same time, the Committee is critical of the fact that, while the formal definition of national promotional banks as a rule also encompasses regional banks, in practice the Commission communication focuses purely on the role of the national level and encourages the creation of new national promotional banks alone. However, promotional banks operating at local and regional level should also be acknowledged and taken into account in the investment plan; |
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1.

welcomes the Commission’s initiative to support promotional banks as well as the creation of investment platforms as an important element of the investment plan for Europe. At the same time, the Committee is critical of the fact that, while the formal definition of national promotional banks as a rule also encompasses regional banks, in practice the Commission communication focuses purely on the role of the national level and encourages the creation of new national promotional banks alone. However, promotional banks operating at local and regional level should also be acknowledged and taken into account in the investment plan;

| 2. | highlights the definition of development banks or institutions as set out in the regulation on the European Fund for Strategic Investments, namely ‘legal entities carrying out financial activities on a professional basis which are given a mandate by a Member State or a Member State’s entity at central, regional or local level, to carry out development or promotional activities’; |
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2.

highlights the definition of development banks or institutions as set out in the regulation on the European Fund for Strategic Investments, namely ‘legal entities carrying out financial activities on a professional basis which are given a mandate by a Member State or a Member State’s entity at central, regional or local level, to carry out development or promotional activities’;

| 3. | notes that promotional banks based on different models play an important role in countering the impact of the economic and financial crisis, particularly in terms of reduced public investment at local and regional level. This reduction was confirmed by the recent joint report of the European Committee of the Regions and the OECD; |
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3.

notes that promotional banks based on different models play an important role in countering the impact of the economic and financial crisis, particularly in terms of reduced public investment at local and regional level. This reduction was confirmed by the recent joint report of the European Committee of the Regions and the OECD;

| 4. | points out, in this connection, that in some countries nationwide banks are responsible for supporting key investments for regional and local authorities (e.g. France and Poland), some of which are co-owned by local and regional authorities (Nordic countries and the Netherlands). In other cases (e.g. German model), however, in addition to national promotional banks, regional promotional banks fully or partially owned by the competent Land (region) are responsible and fulfil a Land-specific promotional role. The actual nature of promotional banks varies and depends on the historical experiences and economic conditions in the respective country or region; |
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4.

points out, in this connection, that in some countries nationwide banks are responsible for supporting key investments for regional and local authorities (e.g. France and Poland), some of which are co-owned by local and regional authorities (Nordic countries and the Netherlands). In other cases (e.g. German model), however, in addition to national promotional banks, regional promotional banks fully or partially owned by the competent Land (region) are responsible and fulfil a Land-specific promotional role. The actual nature of promotional banks varies and depends on the historical experiences and economic conditions in the respective country or region;

| 5. | notes that promotional institutions do not always take the form of banks — in some countries they act as investment agencies, companies or funds, often along the lines of venture capital funds, and this type of non-banking institution could also play an important role in the investment plan for Europe; |
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5.

notes that promotional institutions do not always take the form of banks — in some countries they act as investment agencies, companies or funds, often along the lines of venture capital funds, and this type of non-banking institution could also play an important role in the investment plan for Europe;

| 6. | points out financial instruments at local and regional level are still not available in all Member States and regions, optimal use cannot be made of the available instruments and experiences, and the involvement of the private sector is often confined purely to carrying out orders, which increases the need for support for local promotional financial institutions; |
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6.

points out financial instruments at local and regional level are still not available in all Member States and regions, optimal use cannot be made of the available instruments and experiences, and the involvement of the private sector is often confined purely to carrying out orders, which increases the need for support for local promotional financial institutions;

| 7. | stresses that different possibilities exist for the establishment of promotional banks, as was the case when the current promotional banks were set up — they were created at the outset as independent institutions or developed out of departments of public banks; |
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7.

stresses that different possibilities exist for the establishment of promotional banks, as was the case when the current promotional banks were set up — they were created at the outset as independent institutions or developed out of departments of public banks;

| 8. | points out the need to create promotional banks as instruments of economic, structural and social policy and for them to operate, including as a result of structural weaknesses or shortcomings in markets (including regional markets), but is aware of the difficulties inherent in a clear-cut approach to defining and evaluating market failures; thus calls for a long-term, wide-ranging interpretation of the term ‘market failure’; |
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8.

points out the need to create promotional banks as instruments of economic, structural and social policy and for them to operate, including as a result of structural weaknesses or shortcomings in markets (including regional markets), but is aware of the difficulties inherent in a clear-cut approach to defining and evaluating market failures; thus calls for a long-term, wide-ranging interpretation of the term ‘market failure’;

| 9. | draws the European Commission’s attention to the considerable importance of giving local and regional authorities a greater say in the choice of financial solutions serving interests at local level. Failure to consider the position of local and regional authorities often results in support for investments which are incompatible with regional operational programmes and local strategies; |
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9.

draws the European Commission’s attention to the considerable importance of giving local and regional authorities a greater say in the choice of financial solutions serving interests at local level. Failure to consider the position of local and regional authorities often results in support for investments which are incompatible with regional operational programmes and local strategies;

| 10. | notes the existence of significant development disparities between individual promotional systems at national level, resulting in a systemic deficit in countries and regions with a less developed culture of this type of banking. The outcome of all this could be that national promotional banks, might not always provide enough support for local authorities and enterprises. These banks should further decentralise the services they offer; |
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10.

notes the existence of significant development disparities between individual promotional systems at national level, resulting in a systemic deficit in countries and regions with a less developed culture of this type of banking. The outcome of all this could be that national promotional banks, might not always provide enough support for local authorities and enterprises. These banks should further decentralise the services they offer;

| 11. | is concerned that ‘centralised’ promotional support models, based solely on a national bank and its non-autonomous local branches, do not always fully meet the needs of local communities, particularly in less developed regions and places where the influence of local and regional authorities over the national promotional bank is very limited; |
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11.

is concerned that ‘centralised’ promotional support models, based solely on a national bank and its non-autonomous local branches, do not always fully meet the needs of local communities, particularly in less developed regions and places where the influence of local and regional authorities over the national promotional bank is very limited;

| 12. | shares the view that, when local and regional authorities are selecting a promotional banking development model, the overarching goals and sole criteria for assessing effectiveness at each level should be: elimination of market failures, sustained increase in the number of jobs, consideration of local communities’ interests and thus pursuit of public economic development objectives; |
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12.

shares the view that, when local and regional authorities are selecting a promotional banking development model, the overarching goals and sole criteria for assessing effectiveness at each level should be: elimination of market failures, sustained increase in the number of jobs, consideration of local communities’ interests and thus pursuit of public economic development objectives;

| 13. | is concerned that the requirement set forth by the European Commission for an ex-ante assessment of newly created promotional banks and the new financial products they offer may significantly hamper their operational capacity and complicate the actual process of creating such banks, both at national and regional level. Furthermore, in connection with the requirements of such an analysis, it is worth noting that it will often be difficult to identify market failures in less developed regions, because the socioeconomic situation of the region as a whole may be indicative of market failures, when compared with the situation in more developed areas; |
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13.

is concerned that the requirement set forth by the European Commission for an ex-ante assessment of newly created promotional banks and the new financial products they offer may significantly hamper their operational capacity and complicate the actual process of creating such banks, both at national and regional level. Furthermore, in connection with the requirements of such an analysis, it is worth noting that it will often be difficult to identify market failures in less developed regions, because the socioeconomic situation of the region as a whole may be indicative of market failures, when compared with the situation in more developed areas;

| 14. | hopes that there will be closer cooperation between the Committee of the Regions and the European Investment Bank; calls for the creation of a complementary network of public promotional banks that will respect the subsidiarity principle (thus contributing to the achievement of economic and social synergies); would welcome this system becoming a forum for exchanging interregional and international experience and knowledge, while managing to avoid the risk of over-centralising practices; |
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14.

hopes that there will be closer cooperation between the Committee of the Regions and the European Investment Bank; calls for the creation of a complementary network of public promotional banks that will respect the subsidiarity principle (thus contributing to the achievement of economic and social synergies); would welcome this system becoming a forum for exchanging interregional and international experience and knowledge, while managing to avoid the risk of over-centralising practices;

Proposals

| 15. | calls for a significant increase in the role of local authorities in the creation, operation and evaluation of the impact of promotional banking in regions that do not yet have their own promotional instruments. This can be achieved either by giving local and regional authorities a bigger say in the strategic focus and governance of national promotional banks or by complementing the services offered by national banks through the creation of regional (local) promotional banks. These would cooperate closely with the national bank; |
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15.

calls for a significant increase in the role of local authorities in the creation, operation and evaluation of the impact of promotional banking in regions that do not yet have their own promotional instruments. This can be achieved either by giving local and regional authorities a bigger say in the strategic focus and governance of national promotional banks or by complementing the services offered by national banks through the creation of regional (local) promotional banks. These would cooperate closely with the national bank;

| 16. | considers that the choice of a specific pathway for the development of a promotional banking model at regional level — the question of whether the model under which the national promotional bank plays the dominant role is sufficient or whether a decentralised model would be better, with a greater role for local and regional financial institutions or promotional banks — should be left to local or regional authorities following consultation with the national authorities, or to the national authorities depending on the legal system in the given Member State; |
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16.

considers that the choice of a specific pathway for the development of a promotional banking model at regional level — the question of whether the model under which the national promotional bank plays the dominant role is sufficient or whether a decentralised model would be better, with a greater role for local and regional financial institutions or promotional banks — should be left to local or regional authorities following consultation with the national authorities, or to the national authorities depending on the legal system in the given Member State;

| 17. | takes the view that decisions on the creation of new institutions should be subject to an in-depth analysis on the appropriateness of creating new institutional structures, so as to avoid any unnecessary proliferation of red tape and waste of resources; |
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17.

takes the view that decisions on the creation of new institutions should be subject to an in-depth analysis on the appropriateness of creating new institutional structures, so as to avoid any unnecessary proliferation of red tape and waste of resources;

| 18. | points out that if the European Commission and the EIB consider creating a system to support the establishment of new regional promotional banks, then the specific individual characteristics of each country and region must be taken into account and best practices and proven promotional systems in this field, including the experience of recently established banks, must be drawn upon. Applying the best institutional solutions in less developed regions while taking account of specific local circumstances also seems appropriate; |
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18.

points out that if the European Commission and the EIB consider creating a system to support the establishment of new regional promotional banks, then the specific individual characteristics of each country and region must be taken into account and best practices and proven promotional systems in this field, including the experience of recently established banks, must be drawn upon. Applying the best institutional solutions in less developed regions while taking account of specific local circumstances also seems appropriate;

| 19. | points out that ex post evaluation of the effectiveness of existing and newly created regional promotional banks should be long term in nature (10-15 years) given that the investment projects financed usually have a multiannual timeframe; |
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19.

points out that ex post evaluation of the effectiveness of existing and newly created regional promotional banks should be long term in nature (10-15 years) given that the investment projects financed usually have a multiannual timeframe;

| 20. | notes the need for a framework for cooperation between newly created European Long-Term Investment Funds (ELTIFs) and regional promotional banks and other local financial institutions. They should be complementary and not compete against one another to raise long-term financing for investments at the local and regional level; |
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20.

notes the need for a framework for cooperation between newly created European Long-Term Investment Funds (ELTIFs) and regional promotional banks and other local financial institutions. They should be complementary and not compete against one another to raise long-term financing for investments at the local and regional level;

| 21. | supports the idea of promoting the creation of investment platforms, as tools for implementing the investment plan for Europe. At the same time, the Committee stresses the importance in this connection of not including the contribution of public, national, local or regional funds to investment platforms in the Stability and Growth Pact calculations; |
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21.

supports the idea of promoting the creation of investment platforms, as tools for implementing the investment plan for Europe. At the same time, the Committee stresses the importance in this connection of not including the contribution of public, national, local or regional funds to investment platforms in the Stability and Growth Pact calculations;

| 22. | stresses that the European Commission and the European Investment Bank should spell out the role of regional promotional banks and other financial institutions in the system of nascent investment platforms as a tool to accomplish the Investment Plan for Europe. Regional promotional banks should cooperate with the European Fund for Strategic Investments on the basis of sectoral, but above all geographically based investment platforms; |
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22.

stresses that the European Commission and the European Investment Bank should spell out the role of regional promotional banks and other financial institutions in the system of nascent investment platforms as a tool to accomplish the Investment Plan for Europe. Regional promotional banks should cooperate with the European Fund for Strategic Investments on the basis of sectoral, but above all geographically based investment platforms;

| 23. | believes that the principle of cooperation between regional or local promotional banks and other financial institutions, on the one hand, and the European Investment Advisory Hub, on the other, should be spelt out and explored. The European Investment Advisory Hub should, in particular, support local authorities and local promotional banks in preparing projects, provide advice on financial engineering and support knowledge transfer. The advisory hub should also have the possibility of signing partnership agreements with regional banks too, not only national banks. |
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23.

believes that the principle of cooperation between regional or local promotional banks and other financial institutions, on the one hand, and the European Investment Advisory Hub, on the other, should be spelt out and explored. The European Investment Advisory Hub should, in particular, support local authorities and local promotional banks in preparing projects, provide advice on financial engineering and support knowledge transfer. The advisory hub should also have the possibility of signing partnership agreements with regional banks too, not only national banks.

Brussels, 7 April 2016.

The President of the European Committee of the Regions

Markku MARKKULA

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| 1.7.2016 | EN | Official Journal of the European Union | C 240/9 |
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1.7.2016

EN

Official Journal of the European Union

C 240/9

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Opinion of the European Committee of the Regions — Concrete steps for implementing the EU Urban Agenda

(2016/C 240/03)

| Rapporteur: | Hella DUNGER-LÖPER (DE/PES), State Secretary, Representative of the Land of Berlin to the Federal Government with Responsibility for European Affairs |
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Rapporteur:

Hella DUNGER-LÖPER (DE/PES), State Secretary, Representative of the Land of Berlin to the Federal Government with Responsibility for European Affairs

POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

Introduction

| 1. | The Urban Agenda is a European project of outstanding importance: a new working method is being developed, which is intended to provide an operational framework and effective instruments in order to establish coherence between all policies affecting towns, cities and their surrounding functional areas. With around two thirds of all EU sectoral policies having an impact on Europe’s urban areas, towns and cities should be better involved in their design and rollout. The aim is to improve the quality of life in towns and cities and to develop a new ‘urban’ governance that sets and implements goals through a practical and specific approach, coordinated at various levels in accordance with the principles of subsidiarity and proportionality. This new urban paradigm opens up great opportunities: it makes it possible for people on the ground to experience the added value of Europe to meet social and demographic challenges; it can — in close connection with the European Commission’s Better Regulation agenda — improve the quality of European policies by connecting in a reciprocal manner national, regional and local strategies and thus go much further than the cooperation that has existed to date. The CoR underlines that the Urban Agenda must be part of a more holistic territorial vision that would look at both urban and rural areas (1).
  It can also make a relevant contribution to achieving the goals laid down in Article 3 TEU, including in particular the goals of economic, social and territorial cohesion, and the Europe 2020 strategy goals (2).
  With a ‘bottom up approach’ and a multilevel governance, three key criteria are crucial to making this process successful:






  — | Transparency |
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1.

The Urban Agenda is a European project of outstanding importance: a new working method is being developed, which is intended to provide an operational framework and effective instruments in order to establish coherence between all policies affecting towns, cities and their surrounding functional areas. With around two thirds of all EU sectoral policies having an impact on Europe’s urban areas, towns and cities should be better involved in their design and rollout. The aim is to improve the quality of life in towns and cities and to develop a new ‘urban’ governance that sets and implements goals through a practical and specific approach, coordinated at various levels in accordance with the principles of subsidiarity and proportionality. This new urban paradigm opens up great opportunities: it makes it possible for people on the ground to experience the added value of Europe to meet social and demographic challenges; it can — in close connection with the European Commission’s Better Regulation agenda — improve the quality of European policies by connecting in a reciprocal manner national, regional and local strategies and thus go much further than the cooperation that has existed to date. The CoR underlines that the Urban Agenda must be part of a more holistic territorial vision that would look at both urban and rural areas (1).

It can also make a relevant contribution to achieving the goals laid down in Article 3 TEU, including in particular the goals of economic, social and territorial cohesion, and the Europe 2020 strategy goals (2).

With a ‘bottom up approach’ and a multilevel governance, three key criteria are crucial to making this process successful:

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Transparency

| — | Participation |
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Participation

| — | Binding force. |
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Binding force.

| 2. | The CoR recalls the efforts undertaken since 1989 and the Urban Pilot Projects for towns and cities to be taken more into account and to be included more prominently in the process of policy formulation at European level, and to prepare an Urban Agenda at EU level:






  — | in this connection, it stresses in particular the contribution of the 2014 CoR opinion ‘Towards an Integrated Urban Agenda for the EU’ (3), |
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2.

The CoR recalls the efforts undertaken since 1989 and the Urban Pilot Projects for towns and cities to be taken more into account and to be included more prominently in the process of policy formulation at European level, and to prepare an Urban Agenda at EU level:

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in this connection, it stresses in particular the contribution of the 2014 CoR opinion ‘Towards an Integrated Urban Agenda for the EU’ (3),

| — | it emphasises the role of the European Parliament in highlighting urban issues and incorporating them into the Common Provisions Regulation on the Structural and Investment Funds, and in giving a major impetus to the design of an Urban Agenda through its Resolution of 9 September 2015 on the urban dimension of EU policies, |
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it emphasises the role of the European Parliament in highlighting urban issues and incorporating them into the Common Provisions Regulation on the Structural and Investment Funds, and in giving a major impetus to the design of an Urban Agenda through its Resolution of 9 September 2015 on the urban dimension of EU policies,

| — | it pays tribute to the European Commission, which has raised awareness of the role of towns and cities through regular events and through the consultation procedure on the Urban Agenda held between 18 July and 26 September 2014, |
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it pays tribute to the European Commission, which has raised awareness of the role of towns and cities through regular events and through the consultation procedure on the Urban Agenda held between 18 July and 26 September 2014,

| — | it points to the Riga Declaration under the Latvian presidency in which the Council’s recognition of the urban dimension was confirmed once again, |
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it points to the Riga Declaration under the Latvian presidency in which the Council’s recognition of the urban dimension was confirmed once again,

| — | in particular, it acknowledges the strong impetus given by the Netherlands presidency, which made the Urban Agenda one of the focuses of its presidency, notably by preparing the Pact of Amsterdam, which is due to make the implementation of the Urban Agenda binding, thereby paving the way for intentions to be followed up with actions, and enabling the implementation of the Urban Agenda to finally now be tackled in the European Union, |
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in particular, it acknowledges the strong impetus given by the Netherlands presidency, which made the Urban Agenda one of the focuses of its presidency, notably by preparing the Pact of Amsterdam, which is due to make the implementation of the Urban Agenda binding, thereby paving the way for intentions to be followed up with actions, and enabling the implementation of the Urban Agenda to finally now be tackled in the European Union,

| — | notes the importance of strengthening local and regional authorities’ role in the framing and efficient implementation of European policies, legal provisions and funding programmes. |
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notes the importance of strengthening local and regional authorities’ role in the framing and efficient implementation of European policies, legal provisions and funding programmes.

Key points of the Urban Agenda

| 3. | The importance of towns and cities: the global trend of an increasing concentration of the population in towns and cities can also be observed in Europe; Europe is a continent, where approximately 70 % of the population now live in towns, cities or urban agglomerations. These are the drivers of economic growth — alone generating more than 75 % of GDP — social inclusion and sustainable development. However, towns and cities are characterised by the confrontation of social opposites: wealth and poverty, employment potential and long-term unemployment, labour demands and shortages, educational disparities and particular environmental challenges, to name but a few. As ‘catalyst of integration’, they will also play a major part in coping with the current refugee flows as well as with the intra-EU migration. None of the European Union’s policies would be feasible if the urban dimension were not taken into account. |
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3.

The importance of towns and cities: the global trend of an increasing concentration of the population in towns and cities can also be observed in Europe; Europe is a continent, where approximately 70 % of the population now live in towns, cities or urban agglomerations. These are the drivers of economic growth — alone generating more than 75 % of GDP — social inclusion and sustainable development. However, towns and cities are characterised by the confrontation of social opposites: wealth and poverty, employment potential and long-term unemployment, labour demands and shortages, educational disparities and particular environmental challenges, to name but a few. As ‘catalyst of integration’, they will also play a major part in coping with the current refugee flows as well as with the intra-EU migration. None of the European Union’s policies would be feasible if the urban dimension were not taken into account.

| 4. | Integrated and multidisciplinary approaches: already the 2007 Leipzig Charter stressed that only integrated approaches would prove successful in cities and that multilevel governance is the key to solving complex problems in cities. Successful approaches include: overcoming the ‘silo mentality’ in public administration, i.e. adopting an inter-departmental approach to problem-solving, interaction across traditional hierarchies and the involvement of different stakeholders, taking into account differences between local and regional territories. A number of strands are sketched out here that are closely linked with the European Commission’s ideas of better regulation, better funding and better coordination. However, integrated approaches require a high level of coordination and cooperation at and across all levels: local, regional, national and European. |
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4.

Integrated and multidisciplinary approaches: already the 2007 Leipzig Charter stressed that only integrated approaches would prove successful in cities and that multilevel governance is the key to solving complex problems in cities. Successful approaches include: overcoming the ‘silo mentality’ in public administration, i.e. adopting an inter-departmental approach to problem-solving, interaction across traditional hierarchies and the involvement of different stakeholders, taking into account differences between local and regional territories. A number of strands are sketched out here that are closely linked with the European Commission’s ideas of better regulation, better funding and better coordination. However, integrated approaches require a high level of coordination and cooperation at and across all levels: local, regional, national and European.

| 5. | Urban and rural areas are complementary functional spaces: the fear is repeatedly being voiced in the discussions on the Urban Agenda that a stronger focus on urban issues will mean less support for rural areas. However, the CoR emphasises the importance of links between urban and rural areas and the role played by rural areas, which also contribute to growth and job creation. EU policies must not encourage a competitive relationship between these two dimensions in so far as they are integrated geographically, administratively and in terms of functional and thematic policies. The complementarity between the two dimensions therefore needs to be highlighted, thereby testing and enabling new forms of governance between them, in particular through improved access to services and the development of digital technologies. The overriding objective of an environmentally, economically and socially robust Europe and greater territorial cohesion can only be achieved if both are strong. A European urban policy includes all urban areas and surrounding functional areas: not only capitals and other large cities, but also small and medium-sized towns and cities, which are of key importance to their surrounding areas. |
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5.

Urban and rural areas are complementary functional spaces: the fear is repeatedly being voiced in the discussions on the Urban Agenda that a stronger focus on urban issues will mean less support for rural areas. However, the CoR emphasises the importance of links between urban and rural areas and the role played by rural areas, which also contribute to growth and job creation. EU policies must not encourage a competitive relationship between these two dimensions in so far as they are integrated geographically, administratively and in terms of functional and thematic policies. The complementarity between the two dimensions therefore needs to be highlighted, thereby testing and enabling new forms of governance between them, in particular through improved access to services and the development of digital technologies. The overriding objective of an environmentally, economically and socially robust Europe and greater territorial cohesion can only be achieved if both are strong. A European urban policy includes all urban areas and surrounding functional areas: not only capitals and other large cities, but also small and medium-sized towns and cities, which are of key importance to their surrounding areas.

| 6. | The EU Urban agenda should also provide guidance for the EU’s negotiation positions with view to the Habitat III conference to be held in Quito on 17-20 October 2016. In addition and in line with the objective of the EU to be a stronger global actor as well as the need to increase consistency between the EU’s external and internal policies, the EU should reinforce and stimulate international cooperation and exchange between urban authorities. |
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6.

The EU Urban agenda should also provide guidance for the EU’s negotiation positions with view to the Habitat III conference to be held in Quito on 17-20 October 2016. In addition and in line with the objective of the EU to be a stronger global actor as well as the need to increase consistency between the EU’s external and internal policies, the EU should reinforce and stimulate international cooperation and exchange between urban authorities.

| 7. | To be successfully implemented, the Urban Agenda has also to rely on an integrated approach between urban and regional governance encompassing the institutional and administrative settings. |
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7.

To be successfully implemented, the Urban Agenda has also to rely on an integrated approach between urban and regional governance encompassing the institutional and administrative settings.

| 8. | Crucial factors in shaping an Urban Agenda that complies with the subsidiarity principle and ensures the bottom-up involvement of local and regional authorities are the participation of elected local and regional bodies and their representative national and European associations in decision-making, and a responsible role for them in defining operational programmes and in implementing and assessing cohesion policy, in keeping with their own institutional roles. |
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8.

Crucial factors in shaping an Urban Agenda that complies with the subsidiarity principle and ensures the bottom-up involvement of local and regional authorities are the participation of elected local and regional bodies and their representative national and European associations in decision-making, and a responsible role for them in defining operational programmes and in implementing and assessing cohesion policy, in keeping with their own institutional roles.

Procedure for implementing specific steps for an Urban Agenda: the Pact of Amsterdam

| 9. | The European Commission, together with the Netherlands presidency and involving numerous stakeholders, has started to prepare the Pact of Amsterdam. Its aim is to develop and implement 3-year action plans for integrated policies for key urban problems within the framework of 12 thematic partnerships.
  They are intended to be one key delivery instrument within the Urban Agenda. They will bring together an increased number of sectoral policies that impact on the EU’s urban areas. It is also crucial for the success of the partnerships and the EU Urban Agenda Board, which will monitor the process, that they move forward in close cooperation with urban, local and regional authorities, Member States, European institutions (including the CoR), and relevant local stakeholders.
  The CoR advocates for focusing on a limited number of important policy areas which would make it possible to achieve visible results and demonstrate the added value of the EU Urban Agenda. The 12 priority themes set out are not an exhaustive list. Partnerships should also be set up on other issues requiring integrated policy approaches, for example, taking into account the cultural and tourism dimension in urban development, new inclusive forms of participation, innovation and Smart Cities. A comprehensive assessment of the thematic priorities will, however, only be possible when the partnerships have been developed, since only then will it be possible to tell if and how key issues for the European Union such as youth employment are integrated. The CoR welcomes the fact that four pilot partnerships (on air quality, housing, urban poverty and inclusion of migrants and refugees) have already started their work. For the subsequent stages of the partnerships, it is essential to agree a high degree of commitment, for example through biannual reporting to the Commission, the Parliament, the Council and the CoR. The CoR also points out the possibility that the thematic partnerships could provide input in the design of future and the revision of current EU legislation. In relation to the funding of the participation to the thematic partnerships which are expected to count about 15 partners and considering that the Netherlands have already reserved EUR 50 000 to support each partnership, the CoR calls on the Commission to look into the possibility to finance technical assistance in order to facilitate interested local authorities to become partners. |
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9.

The European Commission, together with the Netherlands presidency and involving numerous stakeholders, has started to prepare the Pact of Amsterdam. Its aim is to develop and implement 3-year action plans for integrated policies for key urban problems within the framework of 12 thematic partnerships.

They are intended to be one key delivery instrument within the Urban Agenda. They will bring together an increased number of sectoral policies that impact on the EU’s urban areas. It is also crucial for the success of the partnerships and the EU Urban Agenda Board, which will monitor the process, that they move forward in close cooperation with urban, local and regional authorities, Member States, European institutions (including the CoR), and relevant local stakeholders.

The CoR advocates for focusing on a limited number of important policy areas which would make it possible to achieve visible results and demonstrate the added value of the EU Urban Agenda. The 12 priority themes set out are not an exhaustive list. Partnerships should also be set up on other issues requiring integrated policy approaches, for example, taking into account the cultural and tourism dimension in urban development, new inclusive forms of participation, innovation and Smart Cities. A comprehensive assessment of the thematic priorities will, however, only be possible when the partnerships have been developed, since only then will it be possible to tell if and how key issues for the European Union such as youth employment are integrated. The CoR welcomes the fact that four pilot partnerships (on air quality, housing, urban poverty and inclusion of migrants and refugees) have already started their work. For the subsequent stages of the partnerships, it is essential to agree a high degree of commitment, for example through biannual reporting to the Commission, the Parliament, the Council and the CoR. The CoR also points out the possibility that the thematic partnerships could provide input in the design of future and the revision of current EU legislation. In relation to the funding of the participation to the thematic partnerships which are expected to count about 15 partners and considering that the Netherlands have already reserved EUR 50 000 to support each partnership, the CoR calls on the Commission to look into the possibility to finance technical assistance in order to facilitate interested local authorities to become partners.

| 10. | The development and funding of urban action plans arising from the Pact of Amsterdam’s thematic partnerships or from other European programmes, such as URBACT, could be part of operational programmes in the future programming period. |
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10.

The development and funding of urban action plans arising from the Pact of Amsterdam’s thematic partnerships or from other European programmes, such as URBACT, could be part of operational programmes in the future programming period.

| 11. | Moreover, it is important that the European Commission plays a strong and binding role in dealing with coordination. This includes the appointment of the first vice-president as coordinator of the EU Urban Agenda, who through his role would also guarantee a close link with the Better Regulation agenda. Coordinating in this way would also counteract the fragmented view of towns and cities resulting from the specialised perspective of the individual Directorates-General. ‘Smart cities’ and, in the case of rural areas, ‘smart regions’ would then be not only technologically smart but also socially smart. There is also a need for an integrated policy within the EU Urban Agenda, streamlining Smart Cities and Smart Specialisation Strategies (RIS3). A holistic approach is essential, particularly when faced with a challenge such as the influx of refugees and the corresponding need for integration. In addition, the inclusion of the Urban Agenda in the European Commission’s annual work programme is another important element. This also serves the interests of transparency and the binding nature of the process. |
| --- | --- |

11.

Moreover, it is important that the European Commission plays a strong and binding role in dealing with coordination. This includes the appointment of the first vice-president as coordinator of the EU Urban Agenda, who through his role would also guarantee a close link with the Better Regulation agenda. Coordinating in this way would also counteract the fragmented view of towns and cities resulting from the specialised perspective of the individual Directorates-General. ‘Smart cities’ and, in the case of rural areas, ‘smart regions’ would then be not only technologically smart but also socially smart. There is also a need for an integrated policy within the EU Urban Agenda, streamlining Smart Cities and Smart Specialisation Strategies (RIS3). A holistic approach is essential, particularly when faced with a challenge such as the influx of refugees and the corresponding need for integration. In addition, the inclusion of the Urban Agenda in the European Commission’s annual work programme is another important element. This also serves the interests of transparency and the binding nature of the process.

| 12. | The CoR insists that further progress remains to be made in order to better involve local and regional authorities including urban and regional networks and other stakeholders, in the preparation as well the evaluation of the EU policy with an impact and/or focus on authorities responsible for urban areas. |
| --- | --- |

12.

The CoR insists that further progress remains to be made in order to better involve local and regional authorities including urban and regional networks and other stakeholders, in the preparation as well the evaluation of the EU policy with an impact and/or focus on authorities responsible for urban areas.

| 13. | Expanding impact assessments to include the urban dimension: the pilot project, launched on the initiative of the CoR and the European Commission, on territorial impact assessment, taking as an example the energy efficiency of buildings, has shown that appropriate instruments are available for including the territorial dimension in impact assessments. Last but not least, the pilot project demonstrated the great interest, willingness and ability of cities and regions to actively participate in the relevant measures and to provide the necessary input. |
| --- | --- |

13.

Expanding impact assessments to include the urban dimension: the pilot project, launched on the initiative of the CoR and the European Commission, on territorial impact assessment, taking as an example the energy efficiency of buildings, has shown that appropriate instruments are available for including the territorial dimension in impact assessments. Last but not least, the pilot project demonstrated the great interest, willingness and ability of cities and regions to actively participate in the relevant measures and to provide the necessary input.

| 14. | It is necessary to implement the knowledge-sharing and inter-city cooperation to promote exchange of know-how/best practices between cities and local authorities by minimising the administrative burdens as much as possible. The collection of data on urban development issues should only be considered in exceptional cases and should be confined to what is strictly necessary. |
| --- | --- |

14.

It is necessary to implement the knowledge-sharing and inter-city cooperation to promote exchange of know-how/best practices between cities and local authorities by minimising the administrative burdens as much as possible. The collection of data on urban development issues should only be considered in exceptional cases and should be confined to what is strictly necessary.

| 15. | The CoR continues to call for a systematic review of ways of improving support for towns, cities and their functional areas. The following could be considered:






  — | Increasing the exchange of knowledge on coordination of and access to existing instruments and sources of funding for towns and cities at EU, national, regional and local level. |
| --- | --- | --- |

15.

The CoR continues to call for a systematic review of ways of improving support for towns, cities and their functional areas. The following could be considered:

—

Increasing the exchange of knowledge on coordination of and access to existing instruments and sources of funding for towns and cities at EU, national, regional and local level.

| — | Encouraging Member States in particular to make greater use of existing instruments for the urban dimension of cohesion policy, such as Integrated Territorial Investments (ITI). These should be along the lines of sustainable urban development strategies, including measures to solve problems affecting the entire functional area of the city and requiring the cooperation of all partners from that area. In preparation for the post 2020 programming period, opportunities for developing a specific EU support scheme for integrated urban development could also be considered in a broader context going beyond the Structural Funds, which would also be more conducive to links between the various EU programmes. |
| --- | --- |

—

Encouraging Member States in particular to make greater use of existing instruments for the urban dimension of cohesion policy, such as Integrated Territorial Investments (ITI). These should be along the lines of sustainable urban development strategies, including measures to solve problems affecting the entire functional area of the city and requiring the cooperation of all partners from that area. In preparation for the post 2020 programming period, opportunities for developing a specific EU support scheme for integrated urban development could also be considered in a broader context going beyond the Structural Funds, which would also be more conducive to links between the various EU programmes.

| — | Involvement of urban authorities in the design and implementation and testing of experimental approaches such as the Innovative Urban Actions. |
| --- | --- |

—

Involvement of urban authorities in the design and implementation and testing of experimental approaches such as the Innovative Urban Actions.

| — | Strengthening the European added value of the particularly high profile of EU support in cities and urban areas by focusing on the basis of an integrated approach on best practice and a results-orientated support policy for towns, cities and surrounding functional areas, including in relation to EU fund management and implementation. |
| --- | --- |

—

Strengthening the European added value of the particularly high profile of EU support in cities and urban areas by focusing on the basis of an integrated approach on best practice and a results-orientated support policy for towns, cities and surrounding functional areas, including in relation to EU fund management and implementation.

| — | Preserving the flexibility of support for cities and urban areas, in order to be able to respond to unexpected challenges and needs in the future. |
| --- | --- |

—

Preserving the flexibility of support for cities and urban areas, in order to be able to respond to unexpected challenges and needs in the future.

| — | Use of the Investment Advisory Hub set up at the European Investment Bank in order to be able to make systematic use of the EIB’s financing instruments for towns and cities. |
| --- | --- |

—

Use of the Investment Advisory Hub set up at the European Investment Bank in order to be able to make systematic use of the EIB’s financing instruments for towns and cities.

| — | Improving the links between EU funding and private investment, obtaining funding and using financial instruments for urban areas. The financing of urban projects should be innovative and include the possibility of experimentation. Private funding should be accepted as co-financing. |
| --- | --- |

—

Improving the links between EU funding and private investment, obtaining funding and using financial instruments for urban areas. The financing of urban projects should be innovative and include the possibility of experimentation. Private funding should be accepted as co-financing.

| — | Gathering input from cities with a view to simplifying ESI funds. |
| --- | --- |

—

Gathering input from cities with a view to simplifying ESI funds.

| — | Earliest possible involvement of towns and cities in reviewing the European Structural and Investment Funds. |
| --- | --- |

—

Earliest possible involvement of towns and cities in reviewing the European Structural and Investment Funds.

| — | Assessment criteria of urban actions should be revised and innovated, not just in terms of quality of the effectiveness of individual actions and projects, but including effective benchmarks to measure and assess the real impact of these policies on the quality of territorial transformations. |
| --- | --- |

—

Assessment criteria of urban actions should be revised and innovated, not just in terms of quality of the effectiveness of individual actions and projects, but including effective benchmarks to measure and assess the real impact of these policies on the quality of territorial transformations.

| — | Further development of soft incentivising tools such as the European Green Capital Award. |
| --- | --- |

—

Further development of soft incentivising tools such as the European Green Capital Award.

| 16. | Due to the growing importance of the European Semester as an economic policy coordination instrument, the CoR calls for urban and rural aspects to be duly taken into account in the framework of the European Semester. This could be achieved through the timely inclusion of local and regional authorities in the Member States’ annual drafting of National Reform Programmes. The Commission’s appointed representative for the European Semester in each Member State could play an important role here. |
| --- | --- |

16.

Due to the growing importance of the European Semester as an economic policy coordination instrument, the CoR calls for urban and rural aspects to be duly taken into account in the framework of the European Semester. This could be achieved through the timely inclusion of local and regional authorities in the Member States’ annual drafting of National Reform Programmes. The Commission’s appointed representative for the European Semester in each Member State could play an important role here.

| 17. | The CoR also stresses the dynamics and capabilities of urban networks for contributing to achieving the European Union’s policy objectives. In relation to the Covenant of Mayors, which is bringing together more than 6 000 local and regional authorities that have committed themselves to reducing carbon dioxide emissions beyond the EU 2020 climate targets, the CoR calls on the European Commission to develop the role of the Covenant of Mayors with the objective of extending its activities beyond 2020, and becoming a vehicle for the concrete contributions which cities and regions can make to fighting climate change within a wider EU framework (4). |
| --- | --- |

17.

The CoR also stresses the dynamics and capabilities of urban networks for contributing to achieving the European Union’s policy objectives. In relation to the Covenant of Mayors, which is bringing together more than 6 000 local and regional authorities that have committed themselves to reducing carbon dioxide emissions beyond the EU 2020 climate targets, the CoR calls on the European Commission to develop the role of the Covenant of Mayors with the objective of extending its activities beyond 2020, and becoming a vehicle for the concrete contributions which cities and regions can make to fighting climate change within a wider EU framework (4).

| 18. | The Pact of Amsterdam should lead to a binding agreement on the process of implementing the Urban Agenda. The eight partnerships which have not yet begun should be launched without delay. A timely review of the thematic list should also be planned, in order to estimate whether the partnerships take account of the main features of urban reality. The CoR welcomes the proposal made by the Netherlands Presidency in the draft Pact of Amsterdam that crosscutting issues, among which urban governance, governance across administrative boundaries including urban-rural and cross-border cooperation or the provision of public services of general interest, be mainstreamed throughout the thematic partnerships. With respect to the latter, it must be ensured that the EU Urban Agenda holds to the principle of local and regional self-government, in accordance with Article 14 and Protocol 26 TFEU, and respects the related discretionary powers under EU primary law, and in particular that it mainstreams local services of general interest. |
| --- | --- |

18.

The Pact of Amsterdam should lead to a binding agreement on the process of implementing the Urban Agenda. The eight partnerships which have not yet begun should be launched without delay. A timely review of the thematic list should also be planned, in order to estimate whether the partnerships take account of the main features of urban reality. The CoR welcomes the proposal made by the Netherlands Presidency in the draft Pact of Amsterdam that crosscutting issues, among which urban governance, governance across administrative boundaries including urban-rural and cross-border cooperation or the provision of public services of general interest, be mainstreamed throughout the thematic partnerships. With respect to the latter, it must be ensured that the EU Urban Agenda holds to the principle of local and regional self-government, in accordance with Article 14 and Protocol 26 TFEU, and respects the related discretionary powers under EU primary law, and in particular that it mainstreams local services of general interest.

| 19. | In addition to the bodies and reporting obligations provided for in the Pact of Amsterdam, there should also be regular reports to the European Commission, the European Parliament, the Council and the CoR in order to ensure a transparent and widely accessible procedure, in which not only those directly involved but also the public at large can follow the process (5). |
| --- | --- |

19.

In addition to the bodies and reporting obligations provided for in the Pact of Amsterdam, there should also be regular reports to the European Commission, the European Parliament, the Council and the CoR in order to ensure a transparent and widely accessible procedure, in which not only those directly involved but also the public at large can follow the process (5).

| 20. | In order to ensure that the Urban Agenda is as far as possible binding on future Council presidencies, the Pact of Amsterdam, after its adoption at the informal Council of Urban Development Ministers on 30 May 2016, should feed into the Conclusions of the General Affairs Council in June 2016. This should be combined with a call to future Council presidencies to incorporate the Urban Agenda into their respective work programmes.
  There should be an initial report on the state of implementation of the partnerships by the end of 2016, under the Slovak Council presidency. |
| --- | --- |

20.

In order to ensure that the Urban Agenda is as far as possible binding on future Council presidencies, the Pact of Amsterdam, after its adoption at the informal Council of Urban Development Ministers on 30 May 2016, should feed into the Conclusions of the General Affairs Council in June 2016. This should be combined with a call to future Council presidencies to incorporate the Urban Agenda into their respective work programmes.

There should be an initial report on the state of implementation of the partnerships by the end of 2016, under the Slovak Council presidency.

| 21. | In order to ensure commitment to future policy development and sustainability in the context of an Urban Agenda, a White Paper should be presented that assesses and systematises the results of the partnerships and describes the elements of better governance and makes them transferable. This will both ensure that the policy is binding and guarantee more transparency. The White Paper should not, however, be drawn up only after completion of the 3-year duration of the partnerships: rather, in 2017 following a mid-term review, it should summarise and systematise the experience accumulated, which should feed into the preparation of the future European Structural and Investment Funds programming period from 2021 and the post-Europe 2020 strategy. |
| --- | --- |

21.

In order to ensure commitment to future policy development and sustainability in the context of an Urban Agenda, a White Paper should be presented that assesses and systematises the results of the partnerships and describes the elements of better governance and makes them transferable. This will both ensure that the policy is binding and guarantee more transparency. The White Paper should not, however, be drawn up only after completion of the 3-year duration of the partnerships: rather, in 2017 following a mid-term review, it should summarise and systematise the experience accumulated, which should feed into the preparation of the future European Structural and Investment Funds programming period from 2021 and the post-Europe 2020 strategy.

Brussels, 7 April 2016.

The President of the European Committee of the Regions

Markku MARKKULA

---

(1)  CoR opinion on Territorial Vision: what future? CDR 4285/2015.

1

(2)  CoR study on ‘The growth potential of an integrated EU Urban Agenda’, Final Report, 8 January 2016.

2

(3)  OJ C 271, 19.8.2014, p. 11.

3

(4)  
  See CoR opinion on the future of the Covenant of Mayors, 4 December 2015
  (OJ C 51, 10.2.2016, p. 43).

4

See CoR opinion on the future of the Covenant of Mayors, 4 December 2015

(5)  In preparing the opinion, the rapporteur carried out a non-representative survey on the EU Urban Agenda and the preparation of the Pact of Amsterdam, which yielded results which should inform the future work. The following conclusions can, inter alia, be drawn.

5

The Urban Agenda process seems to be acknowledged and actionable, if at all, only by cities.

There is a lack of broad participation and transparency. There is almost universal awareness of communication paths. What is lacking, however, is direct access and assistance for specific themes and issues.

Move from consultation to cooperation.

The 12 partnerships themes are by no means equally well known and not considered comprehensive — review, development of content, updating and/or adaptation would be advisable.

---

| 1.7.2016 | EN | Official Journal of the European Union | C 240/15 |
| --- | --- | --- | --- |

1.7.2016

EN

Official Journal of the European Union

C 240/15

---

Opinion of the European Committee of the Regions — EU environment law: improving reporting and compliance

(2016/C 240/04)

| Rapporteur: | Andres JAADLA (EE/ALDE), Member of Rakvere City Council (Rakvere linnavolikogu liige) |
| --- | --- |
| Reference document: | Letter from the European Commission Vice-President of 2 September 2015 |

Rapporteur:

Andres JAADLA (EE/ALDE), Member of Rakvere City Council (Rakvere linnavolikogu liige)

Reference document:

Letter from the European Commission Vice-President of 2 September 2015

POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

A.   General remarks

| 1. | welcomes the European Commission’s request for an outlook opinion on the issues of improving environmental reporting and compliance assurance of EU environment law. Both issues have been highlighted in the European Commission Agenda on Better Regulation (1); |
| --- | --- |

1.

welcomes the European Commission’s request for an outlook opinion on the issues of improving environmental reporting and compliance assurance of EU environment law. Both issues have been highlighted in the European Commission Agenda on Better Regulation (1);

| 2. | seeks with the outlook opinion to contribute to the European Commission REFIT initiative ‘Fitness-check on streamlining monitoring and reporting obligations in environment policy’, and to the follow-up of previous CoR recommendations on improving better implementation of EU environment law (2); |
| --- | --- |

2.

seeks with the outlook opinion to contribute to the European Commission REFIT initiative ‘Fitness-check on streamlining monitoring and reporting obligations in environment policy’, and to the follow-up of previous CoR recommendations on improving better implementation of EU environment law (2);

| 3. | stresses that the key responsibility for ensuring effective implementation and enforcement of EU legislation lies with national authorities, very often at regional and local levels, as has been recognised by the European Parliament (3); |
| --- | --- |

3.

stresses that the key responsibility for ensuring effective implementation and enforcement of EU legislation lies with national authorities, very often at regional and local levels, as has been recognised by the European Parliament (3);

| 4. | underlines that a high level of environmental protection is one of the fundamental objectives of the European Union, and reiterate its concerns about the level of implementation of environmental law; |
| --- | --- |

4.

underlines that a high level of environmental protection is one of the fundamental objectives of the European Union, and reiterate its concerns about the level of implementation of environmental law;

| 5. | stresses the numerous benefits to be derived from the careful implementation of EU environmental legislation — not only for the environment and the economy through the creation of fairer conditions for competition and legal certainty for companies and the promotion of innovation, but also — and primarily — through improvement in people’s living conditions and health; stresses in this connection that the cost of inadequate or incorrect implementation of EU environmental legislation is estimated at around EUR 50 billion a year; |
| --- | --- |

5.

stresses the numerous benefits to be derived from the careful implementation of EU environmental legislation — not only for the environment and the economy through the creation of fairer conditions for competition and legal certainty for companies and the promotion of innovation, but also — and primarily — through improvement in people’s living conditions and health; stresses in this connection that the cost of inadequate or incorrect implementation of EU environmental legislation is estimated at around EUR 50 billion a year;

| 6. | takes note of concerns raised by the European Parliament that much of the unnecessary administrative costs linked to the implementation of EU environmental legislation are due to inadequate or inefficient public and private administrative practices in various Member States and in their regional or local authorities (4); in this context it is important that national law should assign local and regional authorities clear powers for the fulfilment of their obligations and that these authorities be given the support to implement them; |
| --- | --- |

6.

takes note of concerns raised by the European Parliament that much of the unnecessary administrative costs linked to the implementation of EU environmental legislation are due to inadequate or inefficient public and private administrative practices in various Member States and in their regional or local authorities (4); in this context it is important that national law should assign local and regional authorities clear powers for the fulfilment of their obligations and that these authorities be given the support to implement them;

| 7. | encourages, in line with the new European Commission Agenda on Better Regulation, improving this situation and urges the Member States and local and regional authorities to implement EU environmental legislation in the clearest, simplest and most user-friendly way while ensuring its efficiency; |
| --- | --- |

7.

encourages, in line with the new European Commission Agenda on Better Regulation, improving this situation and urges the Member States and local and regional authorities to implement EU environmental legislation in the clearest, simplest and most user-friendly way while ensuring its efficiency;

| 8. | notes, however, that a seminal reason for that inefficiency is due to EU legislation sometimes being drafted without a proper robust and focused prior assessment of the powers, compliance cost implications and capacity issues of the local and regional authorities and of the different environmental conditions in the Member States; |
| --- | --- |

8.

notes, however, that a seminal reason for that inefficiency is due to EU legislation sometimes being drafted without a proper robust and focused prior assessment of the powers, compliance cost implications and capacity issues of the local and regional authorities and of the different environmental conditions in the Member States;

B.   Improving environmental monitoring and reporting (M&R)

| 9. | stresses that collecting information (monitoring), transferring information (reporting) and publishing and disseminating data are essential to the full policy cycle of developing, implementing and evaluating environment legislation; |
| --- | --- |

9.

stresses that collecting information (monitoring), transferring information (reporting) and publishing and disseminating data are essential to the full policy cycle of developing, implementing and evaluating environment legislation;

| 10. | reiterates its concerns about the uneven M&R efforts across Europe, with the information generated being often incomplete, incompatible or out-of-date; recognises that better and more accessible information at national, regional and local levels would allow major environmental problems to be identified earlier, facilitating the efficient application of the early-warning systems set out in the various directives, and thereby saving costs in the longer term; |
| --- | --- |

10.

reiterates its concerns about the uneven M&R efforts across Europe, with the information generated being often incomplete, incompatible or out-of-date; recognises that better and more accessible information at national, regional and local levels would allow major environmental problems to be identified earlier, facilitating the efficient application of the early-warning systems set out in the various directives, and thereby saving costs in the longer term;

| 11. | highlights the pivotal role regional and local authorities have in collecting knowledge and in using M&R for providing information to the public, encouraging greater awareness among citizens in cooperation with environmental protection agencies; |
| --- | --- |

11.

highlights the pivotal role regional and local authorities have in collecting knowledge and in using M&R for providing information to the public, encouraging greater awareness among citizens in cooperation with environmental protection agencies;

| 12. | stresses that appropriate allocation of responsibilities and resources, and clear information flows in Member States’ environmental M&R requirements between municipalities, regions and the national level are needed, in order to ensure that reports and indicators relating to the state of the environment are consistent, effective and reliable; |
| --- | --- |

12.

stresses that appropriate allocation of responsibilities and resources, and clear information flows in Member States’ environmental M&R requirements between municipalities, regions and the national level are needed, in order to ensure that reports and indicators relating to the state of the environment are consistent, effective and reliable;

| 13. | encourages local and regional authorities to develop obligations for plan/project developers to submit their environmental data collected for environmental impact assessments and for obtaining permits/licenses required under EU environment law to the local and regional authorities; |
| --- | --- |

13.

encourages local and regional authorities to develop obligations for plan/project developers to submit their environmental data collected for environmental impact assessments and for obtaining permits/licenses required under EU environment law to the local and regional authorities;

| 14. | underlines how important it is for local and regional authorities to work together closely, involving and supporting the efforts of volunteers, NGOs and interested laypeople engaged in citizens’ science to collect environment data, in particular on biodiversity; |
| --- | --- |

14.

underlines how important it is for local and regional authorities to work together closely, involving and supporting the efforts of volunteers, NGOs and interested laypeople engaged in citizens’ science to collect environment data, in particular on biodiversity;

European Commission/EU actions for improving environmental M&R

| 15. | welcomes that the European Commission is undertaking a fitness-check on streamlining on M&R requirements in EU environment law. The CoR calls on the European Commission to coordinate the fitness-check with the reviews of M&R requirements in other EU policy areas, e.g. for agriculture, energy, and financial services; |
| --- | --- |

15.

welcomes that the European Commission is undertaking a fitness-check on streamlining on M&R requirements in EU environment law. The CoR calls on the European Commission to coordinate the fitness-check with the reviews of M&R requirements in other EU policy areas, e.g. for agriculture, energy, and financial services;

| 16. | supports the European Commission in its intention to develop more modern, efficient and effective environmental M&R in EU legislation. The CoR considers the following objectives as crucial (5):






  — | allow for an assessment by local, regional and national authorities, and the European Commission and for a self-assessment by the regulated sectors of compliance with EU legal obligations, |
| --- | --- | --- |

16.

supports the European Commission in its intention to develop more modern, efficient and effective environmental M&R in EU legislation. The CoR considers the following objectives as crucial (5):

—

allow for an assessment by local, regional and national authorities, and the European Commission and for a self-assessment by the regulated sectors of compliance with EU legal obligations,

| — | simplify and reduce administrative burden, also by reinforcing possibilities for reporting once for complementary EU Directives, with less pressure on public authorities at all levels and private sector contributing to the reporting, |
| --- | --- |

—

simplify and reduce administrative burden, also by reinforcing possibilities for reporting once for complementary EU Directives, with less pressure on public authorities at all levels and private sector contributing to the reporting,

| — | better and more clearly inform and thereby empower citizens and stakeholders, including the social partners and business representatives, before submitting Member State environmental data to the European Commission, |
| --- | --- |

—

better and more clearly inform and thereby empower citizens and stakeholders, including the social partners and business representatives, before submitting Member State environmental data to the European Commission,

| — | help to improve decision-making and inform policy evaluation; |
| --- | --- |

—

help to improve decision-making and inform policy evaluation;

| 17. | subscribes to the following principles, which should guide M&R requirements at EU level: comprehensiveness and sufficiency, coherence and consistency, comparability balanced with subsidiarity, proportionality, accessibility, timeliness, and continuity (6); |
| --- | --- |

17.

subscribes to the following principles, which should guide M&R requirements at EU level: comprehensiveness and sufficiency, coherence and consistency, comparability balanced with subsidiarity, proportionality, accessibility, timeliness, and continuity (6);

| 18. | insists that the European Commission, Member States and local and regional authorities in their efforts in streamlining M&R and reducing administrative burden will not:






  — | reduce the provision of environmental information to local and regional decision-makers, the public and civil society, |
| --- | --- | --- |

18.

insists that the European Commission, Member States and local and regional authorities in their efforts in streamlining M&R and reducing administrative burden will not:

—

reduce the provision of environmental information to local and regional decision-makers, the public and civil society,

| — | reduce the reporting of data which are necessary for the European Commission to enforce the EU environmental legislation, |
| --- | --- |

—

reduce the reporting of data which are necessary for the European Commission to enforce the EU environmental legislation,

| — | create unnecessary new EU reporting requirements but to prioritise instead wherever possible the use of and interconnection between existing reporting databases to meet EU reporting obligations; |
| --- | --- |

—

create unnecessary new EU reporting requirements but to prioritise instead wherever possible the use of and interconnection between existing reporting databases to meet EU reporting obligations;

| 19. | underlines the need for a comprehensive inventory of reporting obligations in the EU environment acquis, a review of the need for these, and an assessment of administrative costs of M&R for local and regional authorities; |
| --- | --- |

19.

underlines the need for a comprehensive inventory of reporting obligations in the EU environment acquis, a review of the need for these, and an assessment of administrative costs of M&R for local and regional authorities;

| 20. | requests the European Commission fitness-check of M&R requirements to adequately consider the different aspects of the DPSIR cycle (drivers, pressures, state, impacts, response); |
| --- | --- |

20.

requests the European Commission fitness-check of M&R requirements to adequately consider the different aspects of the DPSIR cycle (drivers, pressures, state, impacts, response);

| 21. | urges the European Commission to explore efficiency gains and address unnecessary administrative burden in M&R in particular by automatisation of the reporting tools, and by looking at synergies across reporting obligations under different directives; |
| --- | --- |

21.

urges the European Commission to explore efficiency gains and address unnecessary administrative burden in M&R in particular by automatisation of the reporting tools, and by looking at synergies across reporting obligations under different directives;

| 22. | acknowledges existing good practice in environmental M&R requirements. Examples include WISE and the integration of reporting on air emissions of LCPs into E-PRTR; |
| --- | --- |

22.

acknowledges existing good practice in environmental M&R requirements. Examples include WISE and the integration of reporting on air emissions of LCPs into E-PRTR;

| 23. | believes that for improving environmental M&R and visualising its purpose, the European Commission should establish ‘implementation scoreboards’ for additional directives, as existing already for some more recent directives (7); |
| --- | --- |

23.

believes that for improving environmental M&R and visualising its purpose, the European Commission should establish ‘implementation scoreboards’ for additional directives, as existing already for some more recent directives (7);

| 24. | insists that a horizontal approach for M&R should be developed again in the future at EU level by the European Commission, when considering a repeal of the Standardised Reporting Directive; |
| --- | --- |

24.

insists that a horizontal approach for M&R should be developed again in the future at EU level by the European Commission, when considering a repeal of the Standardised Reporting Directive;

| 25. | acknowledges the European Environment Agency’s (EEA) important role in providing a solid knowledge base underpinning environment policy and implementation, and the value of its work in M&R; |
| --- | --- |

25.

acknowledges the European Environment Agency’s (EEA) important role in providing a solid knowledge base underpinning environment policy and implementation, and the value of its work in M&R;

| 26. | reiterates its support for the development of Structured Implementation and Information Frameworks (SIIFs) as proposed by the European Commission for all key EU environment laws (8); |
| --- | --- |

26.

reiterates its support for the development of Structured Implementation and Information Frameworks (SIIFs) as proposed by the European Commission for all key EU environment laws (8);

| 27. | reiterates its call for the European Commission to ensure that Member States and their local and regional authorities properly implement the existing minimum requirements of the Directive on access to information in environmental matters in line with the Aarhus Convention (9); |
| --- | --- |

27.

reiterates its call for the European Commission to ensure that Member States and their local and regional authorities properly implement the existing minimum requirements of the Directive on access to information in environmental matters in line with the Aarhus Convention (9);

Improving environmental monitoring and reporting by digital means

| 28. | sees substantial potential in e-solutions and eGovernment to assist local and regional authorities in streamlining of their environmental M&R, in particular in view of reducing administrative burdens on local and regional authorities and businesses; capturing of structured data and systemised M&R outputs; facilitating risk analysis; improving quality of M&R, e.g. by M&R guidance and web-forms; as well as better information for the public and better public participation; |
| --- | --- |

28.

sees substantial potential in e-solutions and eGovernment to assist local and regional authorities in streamlining of their environmental M&R, in particular in view of reducing administrative burdens on local and regional authorities and businesses; capturing of structured data and systemised M&R outputs; facilitating risk analysis; improving quality of M&R, e.g. by M&R guidance and web-forms; as well as better information for the public and better public participation;

| 29. | calls upon the European Commission and the EEA to explore within pilot projects how M&R requirements on local and regional authorities can be reduced by ICT and e-government without affecting the impact of legislation; |
| --- | --- |

29.

calls upon the European Commission and the EEA to explore within pilot projects how M&R requirements on local and regional authorities can be reduced by ICT and e-government without affecting the impact of legislation;

| 30. | calls on the European Commission to evaluate in its fitness-check approaches where operators and local and regional authorities can use the same eReporting tool for several pieces of EU environment legislation; |
| --- | --- |

30.

calls on the European Commission to evaluate in its fitness-check approaches where operators and local and regional authorities can use the same eReporting tool for several pieces of EU environment legislation;

| 31. | reiterates its call on the European Commission, the EEA and Member States to further exploit the opportunities of earth-observation techniques, such as GMES, for improving the effectiveness of monitoring (10); |
| --- | --- |

31.

reiterates its call on the European Commission, the EEA and Member States to further exploit the opportunities of earth-observation techniques, such as GMES, for improving the effectiveness of monitoring (10);

| 32. | stresses the need to promote investments in online information systems, and tools, including user-friendly web portals and web pages, and urges that system users, such as local and regional authorities and operators, be involved in developing systems; |
| --- | --- |

32.

stresses the need to promote investments in online information systems, and tools, including user-friendly web portals and web pages, and urges that system users, such as local and regional authorities and operators, be involved in developing systems;

| 33. | calls for a drive to ensure the comprehensive cross-sectoral and cross-border interoperability of the EU and Member States’ e-services in the field of environment at the national, regional and local levels (11); |
| --- | --- |

33.

calls for a drive to ensure the comprehensive cross-sectoral and cross-border interoperability of the EU and Member States’ e-services in the field of environment at the national, regional and local levels (11);

| 34. | underlines the important role of public environmental (spatial) information plays for digitally-based businesses, including SMEs and start-ups; encourages local and regional authorities to harness the full potential of re-using public sector information, and supporting digital entrepreneurial skills in using these data, in order to support citizens, businesses and civil society in developing new services, increase competitiveness and create new jobs; |
| --- | --- |

34.

underlines the important role of public environmental (spatial) information plays for digitally-based businesses, including SMEs and start-ups; encourages local and regional authorities to harness the full potential of re-using public sector information, and supporting digital entrepreneurial skills in using these data, in order to support citizens, businesses and civil society in developing new services, increase competitiveness and create new jobs;

| 35. | calls on the European Commission to further encourage the exchange of best practices and technologies amongst Member States, regional and local authorities and to promote digital environmental M&R and provision of environment information, and research and innovation on it, in its upcoming eGovernment Action Plan 2016-2020, and in future calls for proposals under the LIFE programme, the Connecting Europe Facility (CEF), and the Horizon 2020 programme; |
| --- | --- |

35.

calls on the European Commission to further encourage the exchange of best practices and technologies amongst Member States, regional and local authorities and to promote digital environmental M&R and provision of environment information, and research and innovation on it, in its upcoming eGovernment Action Plan 2016-2020, and in future calls for proposals under the LIFE programme, the Connecting Europe Facility (CEF), and the Horizon 2020 programme;

| 36. | encourages local and regional authorities to promote the development of digital environmental M&R and SIIFs and increase of administrative capacity, by making use of the technical assistance under the European Structural and Investment Funds; |
| --- | --- |

36.

encourages local and regional authorities to promote the development of digital environmental M&R and SIIFs and increase of administrative capacity, by making use of the technical assistance under the European Structural and Investment Funds;

REFIT evaluation of INSPIRE

| 37. | believes that stocktaking is needed based on the experience gained with the implementation of Directive 2007/2/EC establishing an Infrastructure for Spatial Information in the European Community (INSPIRE) to establish which of the substantive and technical requirements of the directive are appropriate and capable of implementation from a cost-benefit point of view. In this connection anticipates the REFIT evaluation of the INSPIRE Directive, which enables the sharing of environmental spatial information among public sector organisations and facilitates public access to spatial information across Europe; |
| --- | --- |

37.

believes that stocktaking is needed based on the experience gained with the implementation of Directive 2007/2/EC establishing an Infrastructure for Spatial Information in the European Community (INSPIRE) to establish which of the substantive and technical requirements of the directive are appropriate and capable of implementation from a cost-benefit point of view. In this connection anticipates the REFIT evaluation of the INSPIRE Directive, which enables the sharing of environmental spatial information among public sector organisations and facilitates public access to spatial information across Europe;

| 38. | supports further development of INSPIRE as an eGovernment tool to provide the central common format and process for data collecting on environmental spatial information for streamlining environmental M&R, and making compliance assurance and enforcement of EU legislation more efficient, applying the Open Government Data principles and Smart City digital solutions to the publication and dissemination of data; |
| --- | --- |

38.

supports further development of INSPIRE as an eGovernment tool to provide the central common format and process for data collecting on environmental spatial information for streamlining environmental M&R, and making compliance assurance and enforcement of EU legislation more efficient, applying the Open Government Data principles and Smart City digital solutions to the publication and dissemination of data;

| 39. | calls on the European Commission to examine the possible consequences of making INSPIRE requirements on formats mandatory in other areas; |
| --- | --- |

39.

calls on the European Commission to examine the possible consequences of making INSPIRE requirements on formats mandatory in other areas;

| 40. | believes that INSPIRE can deliver substantial benefits to local and regional authorities and urges Member States, with support from the European Commission, to strengthen the involvement of their regional and local authorities in the INSPIRE process and to build capacity to implement INSPIRE among local and regional administrations (12); |
| --- | --- |

40.

believes that INSPIRE can deliver substantial benefits to local and regional authorities and urges Member States, with support from the European Commission, to strengthen the involvement of their regional and local authorities in the INSPIRE process and to build capacity to implement INSPIRE among local and regional administrations (12);

| 41. | calls for a greater coordination role of the EEA and European Commission JRC in ensuring consistency and compatibility in the collection and collation of the different data at EU level, as done under various tools, e.g. INSPIRE, GMES, GEOSS, and EyeonEarth; |
| --- | --- |

41.

calls for a greater coordination role of the EEA and European Commission JRC in ensuring consistency and compatibility in the collection and collation of the different data at EU level, as done under various tools, e.g. INSPIRE, GMES, GEOSS, and EyeonEarth;

C.   Improving compliance assurance of EU environmental law

| 42. | notes the emphasis the European Commission Agenda on Better Regulation places on the ‘Make it Work’ initiative of some Member States (13) which is providing advice on compliance assurance provisions in EU environmental law; |
| --- | --- |

42.

notes the emphasis the European Commission Agenda on Better Regulation places on the ‘Make it Work’ initiative of some Member States (13) which is providing advice on compliance assurance provisions in EU environmental law;

| 43. | deplores the lack of coherence and consistency in compliance assurance requirements across the different pieces of EU environment law, with different levels of detail in the provisions and different definitions having evolved separately over time. This can result in local and regional authorities facing problems in interpreting and integrating these provisions when undertaking compliance assurance activities; |
| --- | --- |

43.

deplores the lack of coherence and consistency in compliance assurance requirements across the different pieces of EU environment law, with different levels of detail in the provisions and different definitions having evolved separately over time. This can result in local and regional authorities facing problems in interpreting and integrating these provisions when undertaking compliance assurance activities;

| 44. | supports the following principles for compliance assurance under EU environment law: designation, powers and professionalism of competent authorities; information based compliance assurance; an appropriate mix of compliance assurance activities; carrying out planning, evaluation and revision of compliance assurance activities; communicating with the public and ensuring follow-up; ensuring effective coordination between different authorities; |
| --- | --- |

44.

supports the following principles for compliance assurance under EU environment law: designation, powers and professionalism of competent authorities; information based compliance assurance; an appropriate mix of compliance assurance activities; carrying out planning, evaluation and revision of compliance assurance activities; communicating with the public and ensuring follow-up; ensuring effective coordination between different authorities;

| 45. | calls on national, regional and local authorities to apply in addition to the above principles a risk-based based approach to compliance assurance, and urges the EU to make recommendations for implementation which take account of the specific features and interests of the local and regional level; |
| --- | --- |

45.

calls on national, regional and local authorities to apply in addition to the above principles a risk-based based approach to compliance assurance, and urges the EU to make recommendations for implementation which take account of the specific features and interests of the local and regional level;

| 46. | sees the risk assessment as an important chance for the competent local and regional authorities to reduce unnecessary administration burden whilst maintaining a high standard of environmental protection, by better prioritising the use of their limited inspection resources; |
| --- | --- |

46.

sees the risk assessment as an important chance for the competent local and regional authorities to reduce unnecessary administration burden whilst maintaining a high standard of environmental protection, by better prioritising the use of their limited inspection resources;

| 47. | believes that EU environment law should be focused above all on the risks of non-compliance and its potential impact on the environment and health; |
| --- | --- |

47.

believes that EU environment law should be focused above all on the risks of non-compliance and its potential impact on the environment and health;

| 48. | calls on the European Commission to come forward in the near future with an initiative on compliance assurance which covers compliance promotion, monitoring and enforcement, focuses on a risk-based approach and delivers on the 7th EAP; |
| --- | --- |

48.

calls on the European Commission to come forward in the near future with an initiative on compliance assurance which covers compliance promotion, monitoring and enforcement, focuses on a risk-based approach and delivers on the 7th EAP;

| 49. | supports the option of a horizontal EU directive, which would establish compliance assurance provisions based on the above-mentioned principles across the EU environmental acquis; and which would also deliver on the CoR’s call for the European Commission to come forward with a general, binding EU framework on environmental inspections and surveillance (14); |
| --- | --- |

49.

supports the option of a horizontal EU directive, which would establish compliance assurance provisions based on the above-mentioned principles across the EU environmental acquis; and which would also deliver on the CoR’s call for the European Commission to come forward with a general, binding EU framework on environmental inspections and surveillance (14);

| 50. | sees competent local and regional authorities as being in a crucial position in particular for compliance promotion activities which involve cooperation with the regulated community and information to citizens about non-compliance and outcomes of major inspections carried out; |
| --- | --- |

50.

sees competent local and regional authorities as being in a crucial position in particular for compliance promotion activities which involve cooperation with the regulated community and information to citizens about non-compliance and outcomes of major inspections carried out;

| 51. | urges Member States, regional and local authorities to consequently apply enforcement and adopt proportionate and dissuasive sanctions on breaches of EU environment law, and to consequently apply Directive 2008/99/EC on environmental crime; |
| --- | --- |

51.

urges Member States, regional and local authorities to consequently apply enforcement and adopt proportionate and dissuasive sanctions on breaches of EU environment law, and to consequently apply Directive 2008/99/EC on environmental crime;

| 52. | urges, as a complementary action, the European Commission and Member States to continue to strengthen the role of the EU Network for the Implementation and Enforcement of Environmental Law (IMPEL), including in particular ensuring adequate long-term financial support for IMPEL, increasing IMPEL’s systematic use of peer-review inspections and joint inspections (15) in all key areas of environment legislation; increasing its cooperation with other European networks that work on compliance assurance, and further developing national IMPEL networks that engage experts from regional and local authorities in sharing best practices; |
| --- | --- |

52.

urges, as a complementary action, the European Commission and Member States to continue to strengthen the role of the EU Network for the Implementation and Enforcement of Environmental Law (IMPEL), including in particular ensuring adequate long-term financial support for IMPEL, increasing IMPEL’s systematic use of peer-review inspections and joint inspections (15) in all key areas of environment legislation; increasing its cooperation with other European networks that work on compliance assurance, and further developing national IMPEL networks that engage experts from regional and local authorities in sharing best practices;

| 53. | supports the European Parliament’s call (16) on the European Commission to promote capacity-building of networks of judges and prosecutors also specialised in environmental crime; |
| --- | --- |

53.

supports the European Parliament’s call (16) on the European Commission to promote capacity-building of networks of judges and prosecutors also specialised in environmental crime;

| 54. | requests the European Commission to consider in its possible new initiative on compliance assurance the previous CoR calls for the a need to revive the stalled directive on access to justice in environmental matters, as also supported by the European Parliament, and for general criteria for national complaint-handling systems (17); |
| --- | --- |

54.

requests the European Commission to consider in its possible new initiative on compliance assurance the previous CoR calls for the a need to revive the stalled directive on access to justice in environmental matters, as also supported by the European Parliament, and for general criteria for national complaint-handling systems (17);

| 55. | recalls that EU Structural Funds have a specific Thematic Objective aimed at improving capacity of local and regional authorities and sufficient EU funds should therefore be allocated for that purpose. |
| --- | --- |

55.

recalls that EU Structural Funds have a specific Thematic Objective aimed at improving capacity of local and regional authorities and sufficient EU funds should therefore be allocated for that purpose.

D.   Further actions for improving implementation of EU environment law

Actions by the European Commission and the EU

| 56. | In order to further implement the 7th EU Environment Action Programme and its priority objective 4 on improving implementation, and to follow-up on recommendations in previous CoR opinions on improving implementation of EU environment law, the CoR urges the European Commission and the EU (18):






  (a) | to adopt effective source-based policies which further align the levels of ambition and the timeframes of EU source-based or product-based legislation with those of EU legislation on environment quality standards or targets, to better assist competent local and regional authorities in meeting the EU limit values, to identify the transboundary issues that are beyond these authorities’ own direct responsibility, and expanding cost-recovery options in EU environment law for competent local and regional authorities; |
| --- | --- | --- |

56.

In order to further implement the 7th EU Environment Action Programme and its priority objective 4 on improving implementation, and to follow-up on recommendations in previous CoR opinions on improving implementation of EU environment law, the CoR urges the European Commission and the EU (18):

(a)

to adopt effective source-based policies which further align the levels of ambition and the timeframes of EU source-based or product-based legislation with those of EU legislation on environment quality standards or targets, to better assist competent local and regional authorities in meeting the EU limit values, to identify the transboundary issues that are beyond these authorities’ own direct responsibility, and expanding cost-recovery options in EU environment law for competent local and regional authorities;

| (b) | to further promote, financially support, and where appropriate, to expand and consolidate existing and very diverse, when not overlapping EU initiatives that support innovation and best practices in cities and to encourage cities to showcase their leadership, in particular by further developing the European Green Capital Award, and the new European Green Leaf award for smaller cities; |
| --- | --- |

(b)

to further promote, financially support, and where appropriate, to expand and consolidate existing and very diverse, when not overlapping EU initiatives that support innovation and best practices in cities and to encourage cities to showcase their leadership, in particular by further developing the European Green Capital Award, and the new European Green Leaf award for smaller cities;

| (c) | to further make compulsory the carrying out of an analysis on the territorial and competitiveness impact at regional and local level in impact assessments when drafting or revising EU environment legislation; and to further encourage the participation of local and regional authorities and the local business communities in the extended European Commission public consultations in the preliminary legislative stages and in the implementation of legislation; |
| --- | --- |

(c)

to further make compulsory the carrying out of an analysis on the territorial and competitiveness impact at regional and local level in impact assessments when drafting or revising EU environment legislation; and to further encourage the participation of local and regional authorities and the local business communities in the extended European Commission public consultations in the preliminary legislative stages and in the implementation of legislation;

| (d) | as part of the ongoing regulatory fitness work to conduct territorial and competitiveness impact assessments on the existing environmental acquis and binding targets; |
| --- | --- |

(d)

as part of the ongoing regulatory fitness work to conduct territorial and competitiveness impact assessments on the existing environmental acquis and binding targets;

| 57. | asks the European Commission to set up a European Commission expert group composed of representatives from Member State, local and regional authorities and key stakeholders, to provide advice on improving the quality and coherence of the EU environmental acquis and of its implementation, or to integrate this task within the mandate of existing European Commission expert groups of a similar composition; the CoR offers to contribute to this group; |
| --- | --- |

57.

asks the European Commission to set up a European Commission expert group composed of representatives from Member State, local and regional authorities and key stakeholders, to provide advice on improving the quality and coherence of the EU environmental acquis and of its implementation, or to integrate this task within the mandate of existing European Commission expert groups of a similar composition; the CoR offers to contribute to this group;

Actions by the Member States, regional and local authorities

| 58. | The CoR urges:






  (a) | Member States to closer liaise with the implementation administrations, already in the phase of policy development, and in the transposition and implementation phase, for example in the framework of cross-governmental dossiers teams that are composed of administration experts from all government levels within a Member State; |
| --- | --- | --- |

58.

The CoR urges:

(a)

Member States to closer liaise with the implementation administrations, already in the phase of policy development, and in the transposition and implementation phase, for example in the framework of cross-governmental dossiers teams that are composed of administration experts from all government levels within a Member State;

| (b) | local and regional authorities to set up local/regional environmental goals and strategies, or include environmental goals in current (integrated) sustainability strategies, backed by political will; |
| --- | --- |

(b)

local and regional authorities to set up local/regional environmental goals and strategies, or include environmental goals in current (integrated) sustainability strategies, backed by political will;

| (c) | Member States, with support from the European Commission, to take further steps towards greater integration of the pieces of EU environment legislation by introducing integrated environmental permits; |
| --- | --- |

(c)

Member States, with support from the European Commission, to take further steps towards greater integration of the pieces of EU environment legislation by introducing integrated environmental permits;

| (d) | national and regional environment ministries and agencies, with the involvement of representatives of local and regional authorities, to develop guidance documents, including checklists for procedures; |
| --- | --- |

(d)

national and regional environment ministries and agencies, with the involvement of representatives of local and regional authorities, to develop guidance documents, including checklists for procedures;

| (e) | Member States to transpose EU environment law in a timely, accurate and effective manner; |
| --- | --- |

(e)

Member States to transpose EU environment law in a timely, accurate and effective manner;

| (f) | Member States, regional and local authorities to progressively phase out environmentally-harmful subsidies and increasingly use market-based instruments and environment-friendly fiscal reforms; |
| --- | --- |

(f)

Member States, regional and local authorities to progressively phase out environmentally-harmful subsidies and increasingly use market-based instruments and environment-friendly fiscal reforms;

Reinforcing cooperation of the CoR with the European Commission, European Parliament and the Council on improving implementation and scrutiny of EU environment law

| 59. | welcomes the new emphasis the co-legislators place on improving implementation of EU environment law and its scrutiny (19); |
| --- | --- |

59.

welcomes the new emphasis the co-legislators place on improving implementation of EU environment law and its scrutiny (19);

| 60. | asks the European Parliament and the Council to jointly explore with the CoR how the CoR in its advisory function can bring the experiences of local and regional authorities to their individual scrutiny exercises; |
| --- | --- |

60.

asks the European Parliament and the Council to jointly explore with the CoR how the CoR in its advisory function can bring the experiences of local and regional authorities to their individual scrutiny exercises;

| 61. | highlights the experience it has gained with the joint CoR/European Commission Technical Platform for Cooperation on the Environment, which provides a forum for fostering dialogue on local and regional problems and solutions in the implementation of EU environment law; |
| --- | --- |

61.

highlights the experience it has gained with the joint CoR/European Commission Technical Platform for Cooperation on the Environment, which provides a forum for fostering dialogue on local and regional problems and solutions in the implementation of EU environment law;

| 62. | stresses that the Platform has been recognised and placed on a sound and long-term basis by the Council and the European Parliament in 7th EAP, which confirms that the Platform will ‘facilitate dialogue and information pooling, with a view to improving the implementation of legislation at local level’; |
| --- | --- |

62.

stresses that the Platform has been recognised and placed on a sound and long-term basis by the Council and the European Parliament in 7th EAP, which confirms that the Platform will ‘facilitate dialogue and information pooling, with a view to improving the implementation of legislation at local level’;

| 63. | seeks therefore to contribute to the further development of the Technical Platform, and suggests that the European Commission explore, with the European Parliament and the Council, how far meetings of the Technical Platform could be associated with European Parliament and Council debates on better environmental implementation and scrutiny; |
| --- | --- |

63.

seeks therefore to contribute to the further development of the Technical Platform, and suggests that the European Commission explore, with the European Parliament and the Council, how far meetings of the Technical Platform could be associated with European Parliament and Council debates on better environmental implementation and scrutiny;

| 64. | appreciates that the European Commission in the field of EU environment policy over the last years took a pro-active approach in seeking early input by the CoR into policy drafting, by requesting outlook opinions as stipulated in the cooperation agreement signed by both institutions (20). The CoR suggests exploring jointly if on a more regular basis, one meeting of the Technical Platform could be co-organised within the framework of each outlook pinion. |
| --- | --- |

64.

appreciates that the European Commission in the field of EU environment policy over the last years took a pro-active approach in seeking early input by the CoR into policy drafting, by requesting outlook opinions as stipulated in the cooperation agreement signed by both institutions (20). The CoR suggests exploring jointly if on a more regular basis, one meeting of the Technical Platform could be co-organised within the framework of each outlook pinion.

| 65. | calls on the European Commission to closely associate the Committee of the Regions with any future initiatives that aim at improving environmental implementation and governance, such as the Environmental Implementation Review (EIR) initiative (21); |
| --- | --- |

65.

calls on the European Commission to closely associate the Committee of the Regions with any future initiatives that aim at improving environmental implementation and governance, such as the Environmental Implementation Review (EIR) initiative (21);

Brussels, 7 April 2016.

The President of the European Committee of the Regions

Markku MARKKULA

---

(1)  COM(2015) 215 final.

1

(2)  CDR593-2013_00_00_TRA_AC, CDR 1119-2012, CdR 164/2010 fin.

2

(3)  European Parliament Resolution of 12 March 2013 (2012/2104(INI)).

3

(4)  European Parliament Resolution of 12 March 2013 (2012/2104(INI)).

4

(5)  MiW — Make it Work Project 10/2015: Discussion Paper for Joint Commission Make it Work Workshop on Monitoring and Reporting, Brussels 19-20 November 2015, http://www.ieep.eu/assets/1857/Discussion_paper_for_Workshop_on_Reporting_13-10-15.pdf, European Commission public consultation on ‘Streamlining monitoring and reporting obligations in environment policy’, http://ec.europa.eu/environment/consultations/reporting_en.htm

5

(6)  MiW — Make it Work Project 10/2015.

6

(7)  Overview of existing scoreboards: http://ec.europa.eu/environment/legal/reporting/products_en.htm

7

(8)  CDR1119-2012_00_00_TRA_AC.

8

(9)  CDR1119-2012_00_00_TRA_AC.

9

(10)  CDR1119-2012_00_00_TRA_AC, CdR 163/2011 fin.

10

(11)  See also COR-2014-05514-00-00-AC, COR-2015-02646.

11

(12)  EEA Report Technical report No 17/2014, INSPIRE Public consultation report: http://inspire.ec.europa.eu/reports/consultations/INSPIRE_Public_Consultation_Report_final.pdf

12

(13)  http://www.ieep.eu/work-areas/environmental-governance/better-regulation/make-it-work/

13

(14)  CDR593-2013_00_00_TRA_AC, CDR1119-2012_00_00_TRA_AC, CdR 164/2010 fin.

14

(15)  CDR1119-2012_00_00_TRA_AC, CdR 164/2010 fin.

15

(16)  European Parliament Resolution of 12 March 2013 (2012/2104(INI)).

16

(17)  CDR1119-2012_00_00_TRA_AC, CdR 164/2010 fin; European Parliament Resolution of 12 March 2013 (2012/2104(INI)).

17

(18)  COR-2015-04129, CDR593-2013_00_00_TRA_AC, CDR1119-2012_00_00_TRA_AC, CdR 164/2010 fin.

18

(19)  Statement by ENVI Committee Chair Mr La Via on 3 March 2015 in the CoR ENVE Commission; Council Secretariat-General, 9 October 2015: Greening the European Semester: environmentally harmful subsides and implementation of environmental legislation — Exchange of views. Presidency background paper http://data.consilium.europa.eu/doc/document/ST-12790-2015-REV-1/en/pdf

19

(20)  CdR 164/2010.

20

(21)  http://ec.europa.eu/smart-regulation/roadmaps/docs/2016_env_088_environmental_implementation_review_en.pdf

21

---

| 1.7.2016 | EN | Official Journal of the European Union | C 240/24 |
| --- | --- | --- | --- |

1.7.2016

EN

Official Journal of the European Union

C 240/24

---

Opinion of the European Committee of the Regions — Delivering a New Deal for Energy Consumers

(2016/C 240/05)

| Rapporteur: | Michel LEBRUN (BE/EPP), member of Viroinval Municipal Council |
| --- | --- |
| Reference documents: | Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Delivering a New Deal for Energy Consumers
  COM(2015) 339 final |

Rapporteur:

Michel LEBRUN (BE/EPP), member of Viroinval Municipal Council

Reference documents:

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Delivering a New Deal for Energy Consumers

COM(2015) 339 final

POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

| 1. | considers it necessary for end-users — households, businesses and industry — to benefit fully from energy transition. In this regard, energy management policies must enable consumers to control their own energy consumption, so that they can take advantage of new technologies to reduce their bills and contribute to the EU’s efforts in achieving ambitious climate goals as agreed in Paris at the COP21. These policies should enable them not only to participate actively in the market, but also to benefit from effective and appropriate consumer protection mechanisms, which may be necessary to fight energy poverty; |
| --- | --- |

1.

considers it necessary for end-users — households, businesses and industry — to benefit fully from energy transition. In this regard, energy management policies must enable consumers to control their own energy consumption, so that they can take advantage of new technologies to reduce their bills and contribute to the EU’s efforts in achieving ambitious climate goals as agreed in Paris at the COP21. These policies should enable them not only to participate actively in the market, but also to benefit from effective and appropriate consumer protection mechanisms, which may be necessary to fight energy poverty;

| 2. | notes the progress that has already been made with regard to energy efficiency, reduced consumption, and development and deployment of technologies and services. This enables better energy management at the local level and for end-users as a result of, inter alia, a voluntary and dynamic European energy framework. Future legislation should seek to encourage Member States and local and regional authorities to continue their efforts to improve their performance levels with regard to energy efficiency, reduction of greenhouse gas emissions, and development of renewable energy generation capacities, including decentralised capacity; |
| --- | --- |

2.

notes the progress that has already been made with regard to energy efficiency, reduced consumption, and development and deployment of technologies and services. This enables better energy management at the local level and for end-users as a result of, inter alia, a voluntary and dynamic European energy framework. Future legislation should seek to encourage Member States and local and regional authorities to continue their efforts to improve their performance levels with regard to energy efficiency, reduction of greenhouse gas emissions, and development of renewable energy generation capacities, including decentralised capacity;

| 3. | notes the extremely high number of services and technical solutions that exist or are currently being developed in the fields of management and demand response, as well as in the management of decentralised production. The European Union must ensure that priority is given to encouraging and supporting the development of these tools, assessing their value and impact, whether economic, social, environmental or in terms of energy, and monitoring their usage to make sure that energy is safe, easy and affordable; |
| --- | --- |

3.

notes the extremely high number of services and technical solutions that exist or are currently being developed in the fields of management and demand response, as well as in the management of decentralised production. The European Union must ensure that priority is given to encouraging and supporting the development of these tools, assessing their value and impact, whether economic, social, environmental or in terms of energy, and monitoring their usage to make sure that energy is safe, easy and affordable;

| 4. | wishes, by means of the present opinion, to contribute to the wider discussion on the framework strategy for an Energy Union and welcomes many of the key messages of the communication on a new deal for energy consumers (COM(2015) 339 final), which paves the way for an Energy Union that places the citizen at the centre and can protect the most vulnerable consumers; calls on the European Commission to follow up this communication within a clear timeframe by adopting and implementing specific, concrete initiatives in the areas outlined in the communication with due regard to the concerns and experiences of local and regional authorities; |
| --- | --- |

4.

wishes, by means of the present opinion, to contribute to the wider discussion on the framework strategy for an Energy Union and welcomes many of the key messages of the communication on a new deal for energy consumers (COM(2015) 339 final), which paves the way for an Energy Union that places the citizen at the centre and can protect the most vulnerable consumers; calls on the European Commission to follow up this communication within a clear timeframe by adopting and implementing specific, concrete initiatives in the areas outlined in the communication with due regard to the concerns and experiences of local and regional authorities;

| 5. | reiterates in this regard its request that the measures of the Third Energy Package, the Energy Efficiency Directive and the Alternative Dispute Resolution Directive be fully implemented; |
| --- | --- |

5.

reiterates in this regard its request that the measures of the Third Energy Package, the Energy Efficiency Directive and the Alternative Dispute Resolution Directive be fully implemented;

| 6. | recommends that the European Commission analyse in detail any issues, obstacles and opportunities linked to the concrete participation of energy consumers in energy markets, with a view to obtaining a thorough understanding of their situation and of the difficulties they may face, and which would need additional support measures from the EU, Member States, local or regional authorities or civil society organisations; |
| --- | --- |

6.

recommends that the European Commission analyse in detail any issues, obstacles and opportunities linked to the concrete participation of energy consumers in energy markets, with a view to obtaining a thorough understanding of their situation and of the difficulties they may face, and which would need additional support measures from the EU, Member States, local or regional authorities or civil society organisations;

| 7. | emphasises the important role played by local authorities in implementing European legislation in this field, creating and financing infrastructure for distribution, metering and managing energy demand, managing decentralised production and sharing best practices developed at local and regional level, as well as informing and advising energy consumers. The European Committee of the Regions therefore asks to be involved at every stage of development in future policies adopted in this area by the European Union; |
| --- | --- |

7.

emphasises the important role played by local authorities in implementing European legislation in this field, creating and financing infrastructure for distribution, metering and managing energy demand, managing decentralised production and sharing best practices developed at local and regional level, as well as informing and advising energy consumers. The European Committee of the Regions therefore asks to be involved at every stage of development in future policies adopted in this area by the European Union;

| 8. | reaffirms, in this regard, the absolute necessity of basing all future legislation relating to the management of energy demand and decentralised renewable energy production, as well as the protection of consumers and of their rights, on the principle of subsidiarity. The European Committee of the Regions asks the European Union to properly consider the competences of regional and local authorities, in order to ensure that they are afforded a level of intervention that fully complies with this principle; |
| --- | --- |

8.

reaffirms, in this regard, the absolute necessity of basing all future legislation relating to the management of energy demand and decentralised renewable energy production, as well as the protection of consumers and of their rights, on the principle of subsidiarity. The European Committee of the Regions asks the European Union to properly consider the competences of regional and local authorities, in order to ensure that they are afforded a level of intervention that fully complies with this principle;

| 9. | reaffirms its readiness to continue contributing towards the preparation and process of the Citizens’ Energy Forum and actively participating in EU policy formulation by issuing recommendations on recent and upcoming policy initiatives and their socioeconomic impact at the local and regional level; |
| --- | --- |

9.

reaffirms its readiness to continue contributing towards the preparation and process of the Citizens’ Energy Forum and actively participating in EU policy formulation by issuing recommendations on recent and upcoming policy initiatives and their socioeconomic impact at the local and regional level;

| 10. | welcomes the fact that the European Commission makes reference to the Covenant of Mayors (1); recalls that its signatories, i.e. local and regional authorities across the EU, are genuine models of sustainable energy consumption and that they voluntarily promote energy self-generation best practices among consumers; stresses that more than 180 CoR members already represent Covenant of Mayors’ signatories and that the CoR is committed to promoting the CoM both among its own members and in its contacts with local and regional authorities in the EU and beyond. Reiterates, however, that the Covenant of Mayors is not representative of all European local and regional government. Other initiatives which allow cities to approach ambitious targets should also not be discriminated against (2); |
| --- | --- |

10.

welcomes the fact that the European Commission makes reference to the Covenant of Mayors (1); recalls that its signatories, i.e. local and regional authorities across the EU, are genuine models of sustainable energy consumption and that they voluntarily promote energy self-generation best practices among consumers; stresses that more than 180 CoR members already represent Covenant of Mayors’ signatories and that the CoR is committed to promoting the CoM both among its own members and in its contacts with local and regional authorities in the EU and beyond. Reiterates, however, that the Covenant of Mayors is not representative of all European local and regional government. Other initiatives which allow cities to approach ambitious targets should also not be discriminated against (2);

| 11. | points out that the European Commission also needs to make reference to the Pact of Islands, which is a similar, parallel initiative to the Covenant of Mayors, bringing together more than 100 signatory islands. Under the pact, island authorities carry out important work with a view to meeting the EU’s sustainability targets for 2020; |
| --- | --- |

11.

points out that the European Commission also needs to make reference to the Pact of Islands, which is a similar, parallel initiative to the Covenant of Mayors, bringing together more than 100 signatory islands. Under the pact, island authorities carry out important work with a view to meeting the EU’s sustainability targets for 2020;

| 12. | reiterates its request to be represented among the main energy regulatory authorities at EU level (ACER) as well as at national level (NRA) (3); |
| --- | --- |

12.

reiterates its request to be represented among the main energy regulatory authorities at EU level (ACER) as well as at national level (NRA) (3);

| 13. | notes the need to ensure compliance with the principle of proportionality when new targets are set regarding management of energy demand and renewable energy production, as well as possible related economic instruments. The European Committee of the Regions asks the European Commission to take into consideration the impact that new measures could have overall upon local and regional authorities, their budgets and their administrative and operational capacities, applying in practice the precautionary principle at each stage of its deliberations and taking account of the specific characteristics of each type of entity and the particular difficulties it encounters; underlines that the precautionary principle as a foundational element of EU environmental law should be applied also to EU energy policy; |
| --- | --- |

13.

notes the need to ensure compliance with the principle of proportionality when new targets are set regarding management of energy demand and renewable energy production, as well as possible related economic instruments. The European Committee of the Regions asks the European Commission to take into consideration the impact that new measures could have overall upon local and regional authorities, their budgets and their administrative and operational capacities, applying in practice the precautionary principle at each stage of its deliberations and taking account of the specific characteristics of each type of entity and the particular difficulties it encounters; underlines that the precautionary principle as a foundational element of EU environmental law should be applied also to EU energy policy;

| 14. | with regard to energy infrastructure, asserts that, in order to make consumers more independent and responsible for their own energy consumption, it would appear to be beneficial to put in place smart grids and meters (provided that the economic interest of the end user is met) that are affordable, cost effective, efficient, strong on reducing fraud, easy to use, safe and adapted to consumers’ needs and expectations with regard to information, taking control of their consumption and reducing their bills; |
| --- | --- |

14.

with regard to energy infrastructure, asserts that, in order to make consumers more independent and responsible for their own energy consumption, it would appear to be beneficial to put in place smart grids and meters (provided that the economic interest of the end user is met) that are affordable, cost effective, efficient, strong on reducing fraud, easy to use, safe and adapted to consumers’ needs and expectations with regard to information, taking control of their consumption and reducing their bills;

| 15. | stresses the importance of the role played by network operators, and particularly by distribution system operators, in developing smart grids at the local level, installing and managing smart meters, and finding solutions to the new need for flexibility (energy withdrawal and injection) — solutions that are essential if the market is to function effectively; takes note of the Commission’s intention to follow closely the implementation of existing EU standards for smart metering, smart grids and information management and agrees that access to data for consumers must be ‘effective’ and ‘non-discriminatory’ for the customers or third parties designated by customers; is looking forward to the development of the necessary legal framework in the context of the Digital Single Market Strategy and the revision of the EU’s General Data Protection Regulation; |
| --- | --- |

15.

stresses the importance of the role played by network operators, and particularly by distribution system operators, in developing smart grids at the local level, installing and managing smart meters, and finding solutions to the new need for flexibility (energy withdrawal and injection) — solutions that are essential if the market is to function effectively; takes note of the Commission’s intention to follow closely the implementation of existing EU standards for smart metering, smart grids and information management and agrees that access to data for consumers must be ‘effective’ and ‘non-discriminatory’ for the customers or third parties designated by customers; is looking forward to the development of the necessary legal framework in the context of the Digital Single Market Strategy and the revision of the EU’s General Data Protection Regulation;

| 16. | stresses that in many regions, the introduction of new technologies entails substantial costs because energy infrastructures are either obsolete or non-existent; believes it essential, therefore, to come up with a way at local or regional level to determine how costs are shared out between the service provider, the consumer and the local or regional authorities, as well as the amount of subsidies available to finance investments. The transition must be done in such a way as to result in reduced bills for consumers. At the same time, the Committee thinks it imperative to inform consumers fairly about the concerns they may have and the benefits of the technologies and how much of a contribution they could make, so as to reduce opposition to the innovation; |
| --- | --- |

16.

stresses that in many regions, the introduction of new technologies entails substantial costs because energy infrastructures are either obsolete or non-existent; believes it essential, therefore, to come up with a way at local or regional level to determine how costs are shared out between the service provider, the consumer and the local or regional authorities, as well as the amount of subsidies available to finance investments. The transition must be done in such a way as to result in reduced bills for consumers. At the same time, the Committee thinks it imperative to inform consumers fairly about the concerns they may have and the benefits of the technologies and how much of a contribution they could make, so as to reduce opposition to the innovation;

| 17. | welcomes the Commission’s attention to the specific issue of energy poverty, which represents a particular challenge for many local and regional authorities because it needs to be tackled, in fact, within the context of both social and energy policy; calls on the European Commission to go beyond the mere ‘improvement of data collection’ and work towards a broad common definition of energy poverty and an appropriate action plan, based on the idea of access to energy as a basic social right; |
| --- | --- |

17.

welcomes the Commission’s attention to the specific issue of energy poverty, which represents a particular challenge for many local and regional authorities because it needs to be tackled, in fact, within the context of both social and energy policy; calls on the European Commission to go beyond the mere ‘improvement of data collection’ and work towards a broad common definition of energy poverty and an appropriate action plan, based on the idea of access to energy as a basic social right;

| 18. | highlights the importance of funding under the European Fund for Strategic Investments (EFSI) to implementing the European Economic Recovery Plan, and to measures that aim to increase energy efficiency; |
| --- | --- |

18.

highlights the importance of funding under the European Fund for Strategic Investments (EFSI) to implementing the European Economic Recovery Plan, and to measures that aim to increase energy efficiency;

| 19. | calls on the European Union and Member States to establish a regulatory framework that would be profitable both for energy consumers and for the ‘prosumers’ and other energy suppliers who participate actively in energy retail markets. Moreover, it is necessary to ensure sufficient and easily-accessible funding for local and regional authorities who contribute to the energy transition towards sustainable and inclusive retail energy markets; |
| --- | --- |

19.

calls on the European Union and Member States to establish a regulatory framework that would be profitable both for energy consumers and for the ‘prosumers’ and other energy suppliers who participate actively in energy retail markets. Moreover, it is necessary to ensure sufficient and easily-accessible funding for local and regional authorities who contribute to the energy transition towards sustainable and inclusive retail energy markets;

Facilitating consumers’ access to information

| 20. | underlines the fact that genuine consumer autonomy depends upon raising awareness in people’s minds, through suitable measures such as the installation of smart meters and consumer access to the information they provide, about the rational use of energy, environmental protection — in particular improvement of air quality — and combating global warming. Awareness-raising must be accompanied by clear and comprehensive information about the options available to consumers, enabling them to choose supply and management of sustainable energy at affordable rates; |
| --- | --- |

20.

underlines the fact that genuine consumer autonomy depends upon raising awareness in people’s minds, through suitable measures such as the installation of smart meters and consumer access to the information they provide, about the rational use of energy, environmental protection — in particular improvement of air quality — and combating global warming. Awareness-raising must be accompanied by clear and comprehensive information about the options available to consumers, enabling them to choose supply and management of sustainable energy at affordable rates;

| 21. | stresses the need to provide consumers with access to information on energy that is simple, clear, comprehensive and appropriate, safe, reliable, free and independent, with regard both to energy supply offers, contracts, consumers’ rights and obligations, and to the products and services, including EU and national subsidies, that could help them to reduce their consumption and their bills, and to acquire and operate their own means of energy production; this includes the need for targeted information for the most vulnerable consumers, in the appropriate formats (including for those who have limited familiarity with, or access to, electronic communication); |
| --- | --- |

21.

stresses the need to provide consumers with access to information on energy that is simple, clear, comprehensive and appropriate, safe, reliable, free and independent, with regard both to energy supply offers, contracts, consumers’ rights and obligations, and to the products and services, including EU and national subsidies, that could help them to reduce their consumption and their bills, and to acquire and operate their own means of energy production; this includes the need for targeted information for the most vulnerable consumers, in the appropriate formats (including for those who have limited familiarity with, or access to, electronic communication);

| 22. | emphasises that, as local and regional authorities are closest to the general public, they can provide essential assistance and advice to consumers and create a culture of encouraging local initiatives; stresses, however, that additional resources are needed to allow local and regional authorities to fully exploit their potential in this regard and to develop innovative solutions; |
| --- | --- |

22.

emphasises that, as local and regional authorities are closest to the general public, they can provide essential assistance and advice to consumers and create a culture of encouraging local initiatives; stresses, however, that additional resources are needed to allow local and regional authorities to fully exploit their potential in this regard and to develop innovative solutions;

Varying demand

| 23. | suggests adopting new requirements and incentives targeted at transmission and distribution system operators, in order to increase the flexibility of energy networks via intelligent systems, energy storage and conversions between energy types; |
| --- | --- |

23.

suggests adopting new requirements and incentives targeted at transmission and distribution system operators, in order to increase the flexibility of energy networks via intelligent systems, energy storage and conversions between energy types;

| 24. | observes that a level playing field should be created for all future players who generate and supply energy and/or provide new services, in order to enable, for example, grid flexibility and integration of energy produced by ‘prosumers’ (including aggregators); |
| --- | --- |

24.

observes that a level playing field should be created for all future players who generate and supply energy and/or provide new services, in order to enable, for example, grid flexibility and integration of energy produced by ‘prosumers’ (including aggregators);

| 25. | draws the Commission’s attention to the fact that energy policy must help to reduce the energy burden for households’ and businesses’ budgets and, consequently, for their final bills. In this regard, the European Committee of the Regions is concerned by the fact that, in certain cases, demand response risks exposing consumers to wholesale and retail market changes, which could result in excessive tariffs that are beyond consumers’ means. Price models providing for guaranteed and long-term fixed prices should be offered to protect consumers against price instability. Consumers should also be informed about how to use and benefit from floating prices based on quoted energy tariffs; |
| --- | --- |

25.

draws the Commission’s attention to the fact that energy policy must help to reduce the energy burden for households’ and businesses’ budgets and, consequently, for their final bills. In this regard, the European Committee of the Regions is concerned by the fact that, in certain cases, demand response risks exposing consumers to wholesale and retail market changes, which could result in excessive tariffs that are beyond consumers’ means. Price models providing for guaranteed and long-term fixed prices should be offered to protect consumers against price instability. Consumers should also be informed about how to use and benefit from floating prices based on quoted energy tariffs;

Making it easier to change supplier

| 26. | concurs that these problems amount in some cases to a ‘market failure’ in the energy sector and that lack of competition can be a serious obstacle to a more consumer-friendly market; is of the opinion, however, that regulatory changes should occur with due regard to the specific needs of different stakeholders, including local and regional authorities and vulnerable consumers; |
| --- | --- |

26.

concurs that these problems amount in some cases to a ‘market failure’ in the energy sector and that lack of competition can be a serious obstacle to a more consumer-friendly market; is of the opinion, however, that regulatory changes should occur with due regard to the specific needs of different stakeholders, including local and regional authorities and vulnerable consumers;

| 27. | regrets the complexity, long delays and excessive bureaucracy that continue to affect the switching process, and calls on the various regulatory bodies to ensure that the current laws concerning the terms for switching suppliers are enforced; |
| --- | --- |

27.

regrets the complexity, long delays and excessive bureaucracy that continue to affect the switching process, and calls on the various regulatory bodies to ensure that the current laws concerning the terms for switching suppliers are enforced;

| 28. | supports the European Commission’s commitment to make sure that each consumer has access to at least one ‘independent and verified comparison tool’. These comparators must be clear, comprehensive, trustworthy and independent, easy to use and free of charge. They should allow existing contracts to be compared with offers available on the market. Whereas suppliers tend to diversify their offers by including services in energy supply contracts, comparators must make it possible to compare the different ‘packages’ on offer, while at the same time enabling the ‘supply’ element of the various packages to be compared on its own; |
| --- | --- |

28.

supports the European Commission’s commitment to make sure that each consumer has access to at least one ‘independent and verified comparison tool’. These comparators must be clear, comprehensive, trustworthy and independent, easy to use and free of charge. They should allow existing contracts to be compared with offers available on the market. Whereas suppliers tend to diversify their offers by including services in energy supply contracts, comparators must make it possible to compare the different ‘packages’ on offer, while at the same time enabling the ‘supply’ element of the various packages to be compared on its own;

| 29. | suggests that information campaigns for switching supplier should be launched by energy regulators, local and regional authorities and consumer organisations. These campaigns could make reference to existing comparison tools; |
| --- | --- |

29.

suggests that information campaigns for switching supplier should be launched by energy regulators, local and regional authorities and consumer organisations. These campaigns could make reference to existing comparison tools;

| 30. | points out that the European Commission and national and regional regulatory bodies should ensure that switching processes are smooth and that consumers — especially those in the most vulnerable situations — have access to personalised advice on choosing a supply contract as well as assistance when switching supplier and/or contract; |
| --- | --- |

30.

points out that the European Commission and national and regional regulatory bodies should ensure that switching processes are smooth and that consumers — especially those in the most vulnerable situations — have access to personalised advice on choosing a supply contract as well as assistance when switching supplier and/or contract;

| 31. | encourages the European Union to adopt an ambitious regulation on reducing the transfer time for customers switching from one provider to another, and making the transfer procedure automatic; |
| --- | --- |

31.

encourages the European Union to adopt an ambitious regulation on reducing the transfer time for customers switching from one provider to another, and making the transfer procedure automatic;

| 32. | wishes to see closer monitoring at the European level of issues relating to commercial practices and ‘cold calling’ related to energy supply, in order to reduce price instability and eliminate any form of abusive practice in this field. In this regard, the European Committee of the Regions calls urgently for full enforcement of the Unfair Commercial Practices Directive and the Consumer Rights Directive; |
| --- | --- |

32.

wishes to see closer monitoring at the European level of issues relating to commercial practices and ‘cold calling’ related to energy supply, in order to reduce price instability and eliminate any form of abusive practice in this field. In this regard, the European Committee of the Regions calls urgently for full enforcement of the Unfair Commercial Practices Directive and the Consumer Rights Directive;

| 33. | calls for joint procurement of energy for public institutions, households and businesses to be monitored and promoted. These operations must improve the functioning of the market, guarantee rights of access to energy for everyone and facilitate this access by effectively and sustainably reducing the impact of energy bills on consumers’ budgets; |
| --- | --- |

33.

calls for joint procurement of energy for public institutions, households and businesses to be monitored and promoted. These operations must improve the functioning of the market, guarantee rights of access to energy for everyone and facilitate this access by effectively and sustainably reducing the impact of energy bills on consumers’ budgets;

Making bills easier to read and compare

| 34. | calls on the European Union to examine the different components of energy bills, in order to put together a ‘standard’ bill incorporating a number of elements that are uniform, legible, clear and comparable at European level and which would allow consumers to optimise their energy use. In this regard, the European Committee of the Regions supports the Council of European Energy Regulators’ initiative to set out harmonised definitions of different elements that should be included in energy bills; |
| --- | --- |

34.

calls on the European Union to examine the different components of energy bills, in order to put together a ‘standard’ bill incorporating a number of elements that are uniform, legible, clear and comparable at European level and which would allow consumers to optimise their energy use. In this regard, the European Committee of the Regions supports the Council of European Energy Regulators’ initiative to set out harmonised definitions of different elements that should be included in energy bills;

| 35. | calls for standardisation to be accompanied by the mandatory inclusion in the final bill of information about the free tools and services that are available for comparing supply offers, as well as information and support for households and businesses with regard to the protection of consumers’ rights; |
| --- | --- |

35.

calls for standardisation to be accompanied by the mandatory inclusion in the final bill of information about the free tools and services that are available for comparing supply offers, as well as information and support for households and businesses with regard to the protection of consumers’ rights;

| 36. | calls on Member States to create tools and services that make bills easier for households and businesses to understand, so that they can be analysed; and, where appropriate, to provide advice and support for end-users regarding the steps which may be necessary to rectify any irregularities identified or guide end-users towards supply contracts that are better suited to their needs; |
| --- | --- |

36.

calls on Member States to create tools and services that make bills easier for households and businesses to understand, so that they can be analysed; and, where appropriate, to provide advice and support for end-users regarding the steps which may be necessary to rectify any irregularities identified or guide end-users towards supply contracts that are better suited to their needs;

| 37. | recommends that bills and any information issued by suppliers to their end-users should be sent in the format requested by the latter, i.e. via post or e-mail, without any discrimination; |
| --- | --- |

37.

recommends that bills and any information issued by suppliers to their end-users should be sent in the format requested by the latter, i.e. via post or e-mail, without any discrimination;

| 38. | stresses that vulnerable consumers are particularly likely to encounter difficulties in identifying the best tariffs amongst the wide range of offers, and that they often seek the assistance of the closest level of governance. Consequently, the European Committee of the Regions calls upon the European Union to assist local and regional authorities in setting up support systems in the field of energy if this is not being done by the Member States; |
| --- | --- |

38.

stresses that vulnerable consumers are particularly likely to encounter difficulties in identifying the best tariffs amongst the wide range of offers, and that they often seek the assistance of the closest level of governance. Consequently, the European Committee of the Regions calls upon the European Union to assist local and regional authorities in setting up support systems in the field of energy if this is not being done by the Member States;

Improving meter readings

| 39. | maintains that consumers should have easy access to their metering data in different formats (via the smart metering appliance itself, on-line, via detailed monthly energy bills, through personal assistance etc.); |
| --- | --- |

39.

maintains that consumers should have easy access to their metering data in different formats (via the smart metering appliance itself, on-line, via detailed monthly energy bills, through personal assistance etc.);

| 40. | emphasises that consumers should be clearly informed about the management and use of their metering data and the use of their consumption data, detailing what information will be collected and kept, how often and for how long; |
| --- | --- |

40.

emphasises that consumers should be clearly informed about the management and use of their metering data and the use of their consumption data, detailing what information will be collected and kept, how often and for how long;

| 41. | insists upon the need to adopt, at European level, a strict framework for the security and protection of private life with regard to meters; |
| --- | --- |

41.

insists upon the need to adopt, at European level, a strict framework for the security and protection of private life with regard to meters;

Supporting and monitoring the development of smart meters, research and innovation

| 42. | reiterates its call to speed-up the development of smart systems at both grid and producer/consumer level, to optimise the system as a whole, as well as to introduce smart meters, which are essential to the efficient management of demand with the active involvement of the consumer; |
| --- | --- |

42.

reiterates its call to speed-up the development of smart systems at both grid and producer/consumer level, to optimise the system as a whole, as well as to introduce smart meters, which are essential to the efficient management of demand with the active involvement of the consumer;

| 43. | calls for the adoption of a strict framework at European level on the deployment of smart meters and their range of uses and features, whilst recalling that the aim is to streamline and reduce consumption. In this regard, the Committee calls for all new technology options to be evaluated prior to adoption, if they are to be introduced as standard, with regard to their potential energy, economic, social and environmental impact; |
| --- | --- |

43.

calls for the adoption of a strict framework at European level on the deployment of smart meters and their range of uses and features, whilst recalling that the aim is to streamline and reduce consumption. In this regard, the Committee calls for all new technology options to be evaluated prior to adoption, if they are to be introduced as standard, with regard to their potential energy, economic, social and environmental impact;

| 44. | calls on the EU and Member States to give priority to applied research on managing and reducing consumption, load displacement and management and setting up smart, safe, reliable and cost-effective metering, distribution and transmission systems, as well as industrial and domestic storage systems; |
| --- | --- |

44.

calls on the EU and Member States to give priority to applied research on managing and reducing consumption, load displacement and management and setting up smart, safe, reliable and cost-effective metering, distribution and transmission systems, as well as industrial and domestic storage systems;

| 45. | underlines the substantial impact of cities’ development and functioning on energy demand, as cities account for between 60 % and 80 % of worldwide energy consumption and approximately the same proportion of CO2 emissions. Therefore, a European Innovation Partnership on Smart Cities and Communities and other new funding and business models could play an important role in facilitating the rolling-out of smart energy technologies; |
| --- | --- |

45.

underlines the substantial impact of cities’ development and functioning on energy demand, as cities account for between 60 % and 80 % of worldwide energy consumption and approximately the same proportion of CO2 emissions. Therefore, a European Innovation Partnership on Smart Cities and Communities and other new funding and business models could play an important role in facilitating the rolling-out of smart energy technologies;

Enabling the involvement of local and regional authorities and citizens in the energy markets

| 46. | regrets that the Communication recognises the role of local and regional authorities only in the narrowly circumscribed contexts of ‘increasing consumer participation’, and specifically the Covenant of Mayors, but does not include local and regional authorities as players in the general conclusions, for instance, where further action is deemed necessary at the ‘Member State level, and [through] collaborative initiatives of the industry, consumer organisations and national regulators’; calls, therefore, on the European Commission to include the local and regional perspective more generally in its future actions in this domain, not least as energy producers and suppliers; |
| --- | --- |

46.

regrets that the Communication recognises the role of local and regional authorities only in the narrowly circumscribed contexts of ‘increasing consumer participation’, and specifically the Covenant of Mayors, but does not include local and regional authorities as players in the general conclusions, for instance, where further action is deemed necessary at the ‘Member State level, and [through] collaborative initiatives of the industry, consumer organisations and national regulators’; calls, therefore, on the European Commission to include the local and regional perspective more generally in its future actions in this domain, not least as energy producers and suppliers;

| 47. | believes that smart metering can also be an important tool to address the issue of energy poverty, but points out the need to ensure that smart metering technology does not lead to excessive costs for consumers and/or excessive limitation of their energy use; |
| --- | --- |

47.

believes that smart metering can also be an important tool to address the issue of energy poverty, but points out the need to ensure that smart metering technology does not lead to excessive costs for consumers and/or excessive limitation of their energy use;

| 48. | calls on the EU and Member States to ensure sufficient and easily accessible funding for local and regional authorities and local energy companies for policies and projects in the field of energy efficiency and renewable energy generation and use, for example to provide energy advice. The European Committee of the Regions calls upon the European Union to incorporate this element into all funding programmes relevant to this field; |
| --- | --- |

48.

calls on the EU and Member States to ensure sufficient and easily accessible funding for local and regional authorities and local energy companies for policies and projects in the field of energy efficiency and renewable energy generation and use, for example to provide energy advice. The European Committee of the Regions calls upon the European Union to incorporate this element into all funding programmes relevant to this field;

| 49. | suggests establishing a clear framework that provides easy access to smart grids for energy generated by consumers, by simplifying and shortening time-consuming licensing/authorisation procedures, and cutting red tape and other regulatory barriers that prevent genuine competition; |
| --- | --- |

49.

suggests establishing a clear framework that provides easy access to smart grids for energy generated by consumers, by simplifying and shortening time-consuming licensing/authorisation procedures, and cutting red tape and other regulatory barriers that prevent genuine competition;

| 50. | calls on the European Commission and Member States to create the appropriate regulatory framework to ensure a level playing field for prosumers as new market players and to create sufficient incentives and necessary safeguards to stimulate decentralised self-generation and fair remuneration for energy production; |
| --- | --- |

50.

calls on the European Commission and Member States to create the appropriate regulatory framework to ensure a level playing field for prosumers as new market players and to create sufficient incentives and necessary safeguards to stimulate decentralised self-generation and fair remuneration for energy production;

| 51. | notes that there are many examples of good practices regarding the participation of consumers in the sound management of consumption and decentralised production of renewable energy; underlines the important role played by the European Committee of the Regions in terms of sharing good practices; |
| --- | --- |

51.

notes that there are many examples of good practices regarding the participation of consumers in the sound management of consumption and decentralised production of renewable energy; underlines the important role played by the European Committee of the Regions in terms of sharing good practices;

| 52. | highlights in particular the fact that individual and collective self-generation and self-consumption of locally available renewable energy has tremendous potential, and calls upon the European Union to analyse the regulatory and financial obstacles, including those connected to the need to adapt existing electricity grids to self-consumption mechanisms, to developing these initiatives and adopt measures that enable them to be overcome. In this regard, the Committee of the Regions underlines the fact that the concept of ownership is important for involving members of the public in energy transition in an effective way, and stresses that particular attention should be paid to consumers who do not have the means, financial or practical, to invest in self-generation technologies; furthermore, highlights the important role which local and regional authorities can play in organising or supporting local initiatives for collective, cooperative or self-generation schemes for energy production, distribution and consumption; |
| --- | --- |

52.

highlights in particular the fact that individual and collective self-generation and self-consumption of locally available renewable energy has tremendous potential, and calls upon the European Union to analyse the regulatory and financial obstacles, including those connected to the need to adapt existing electricity grids to self-consumption mechanisms, to developing these initiatives and adopt measures that enable them to be overcome. In this regard, the Committee of the Regions underlines the fact that the concept of ownership is important for involving members of the public in energy transition in an effective way, and stresses that particular attention should be paid to consumers who do not have the means, financial or practical, to invest in self-generation technologies; furthermore, highlights the important role which local and regional authorities can play in organising or supporting local initiatives for collective, cooperative or self-generation schemes for energy production, distribution and consumption;

| 53. | praises the initiative of the Citizens’ Energy Forum, whilst highlighting the fact that it would be advisable to establish other regular structures and mechanisms enabling energy consumers to express their opinion quickly, in order to influence choices made concerning the energy market. |
| --- | --- |

53.

praises the initiative of the Citizens’ Energy Forum, whilst highlighting the fact that it would be advisable to establish other regular structures and mechanisms enabling energy consumers to express their opinion quickly, in order to influence choices made concerning the energy market.

Brussels, 7 April 2016.

The President of the European Committee of the Regions

Markku MARKKULA

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(1)  See also ENVE-VI-005.

1

(2)  See points 25 and 31 of ENVE-VI-006.

2

(3)  See also point 57 of ENVE-VI-003.

3

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| 1.7.2016 | EN | Official Journal of the European Union | C 240/31 |
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1.7.2016

EN

Official Journal of the European Union

C 240/31

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Opinion of the European Committee of the Regions — Protection of refugees in their areas of origin: a new perspective

(2016/C 240/06)

| Rapporteur: | Hans JANSSEN (NL/EPP), Mayor of Oisterwijk |
| --- | --- |

Rapporteur:

Hans JANSSEN (NL/EPP), Mayor of Oisterwijk

POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

General recommendations

| 1. | notes that the magnitude of the current refugee crisis resulting from the civil war in Syria and the political instability in many North African countries and conflicts and lawlessness in some parts of the world is unprecedented and that everything seems to suggest that it is far from over; |
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1.

notes that the magnitude of the current refugee crisis resulting from the civil war in Syria and the political instability in many North African countries and conflicts and lawlessness in some parts of the world is unprecedented and that everything seems to suggest that it is far from over;

| 2. | takes the view that the scale and gravity of the issue demand a holistic approach, comprising various aspects: providing sustainable care for the refugees arriving in Europe while upholding their rights; combatting irregular migration, not least by bolstering external border controls, introducing strong criminal sanctions against human traffickers and establishing an effective and secure system for returning individuals who do not meet the criteria for asylum seekers; improving reception facilities in the regions of origin, meaning both countries of origin and neighbouring regions; and tackling the underlying causes of migration as the consequence of violence and lawlessness. This combined approach has been followed by the EU for some time already. The Committee supports this approach (1) and highlights the importance of actually implementing the agreements reached and meeting the commitments entered into; |
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2.

takes the view that the scale and gravity of the issue demand a holistic approach, comprising various aspects: providing sustainable care for the refugees arriving in Europe while upholding their rights; combatting irregular migration, not least by bolstering external border controls, introducing strong criminal sanctions against human traffickers and establishing an effective and secure system for returning individuals who do not meet the criteria for asylum seekers; improving reception facilities in the regions of origin, meaning both countries of origin and neighbouring regions; and tackling the underlying causes of migration as the consequence of violence and lawlessness. This combined approach has been followed by the EU for some time already. The Committee supports this approach (1) and highlights the importance of actually implementing the agreements reached and meeting the commitments entered into;

| 3. | regrets that, in practice, most attention has been given to limiting the number of refugees coming to Europe and distributing them between the Member States, rather than to protecting these people’s rights at all levels. Local and regional authorities have an unprecedented responsibility in this respect for the reception and integration of refugees in Europe; the Committee also deems it important for the European Commission to pay ongoing, close attention to the growing challenges and draw up proposals with a view to supporting the activities carried out by the affected local and regional authorities to this end; |
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3.

regrets that, in practice, most attention has been given to limiting the number of refugees coming to Europe and distributing them between the Member States, rather than to protecting these people’s rights at all levels. Local and regional authorities have an unprecedented responsibility in this respect for the reception and integration of refugees in Europe; the Committee also deems it important for the European Commission to pay ongoing, close attention to the growing challenges and draw up proposals with a view to supporting the activities carried out by the affected local and regional authorities to this end;

| 4. | notes that less attention has to date been given to the reception of refugees in the regions to which the country belongs. This is despite the fact that their number is much higher in those regions than it is in Europe: the United Nations High Commission for Refugees (UNHCR) has registered 2,1 million Syrian refugees in Egypt, Iraq, Jordan and Lebanon; the Turkish government has registered 1,9 million Syrians, while there are over 26 700 Syrian refugees in North Africa, i.e. a total of 4 390 439 people (2); |
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4.

notes that less attention has to date been given to the reception of refugees in the regions to which the country belongs. This is despite the fact that their number is much higher in those regions than it is in Europe: the United Nations High Commission for Refugees (UNHCR) has registered 2,1 million Syrian refugees in Egypt, Iraq, Jordan and Lebanon; the Turkish government has registered 1,9 million Syrians, while there are over 26 700 Syrian refugees in North Africa, i.e. a total of 4 390 439 people (2);

| 5. | welcomes the efforts of the European Council to strike a deal with Turkey; however is concerned whether the deal concluded with Turkey will reduce the number of people crossing the EU’s borders in an irregular manner. Calls for refugees to receive direct financial support and have the possibility to apply for a humanitarian visa in the refugee camps in third countries. Part of the aid should also go to the UNHCR to improve the living conditions in the refugee camps; |
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5.

welcomes the efforts of the European Council to strike a deal with Turkey; however is concerned whether the deal concluded with Turkey will reduce the number of people crossing the EU’s borders in an irregular manner. Calls for refugees to receive direct financial support and have the possibility to apply for a humanitarian visa in the refugee camps in third countries. Part of the aid should also go to the UNHCR to improve the living conditions in the refugee camps;

| 6. | notes that many displaced people are reduced to living in refugee camps, often in a neighbouring country. They do not all have the necessary means to travel onwards, for example to Europe, regardless of the quality of reception conditions in their current location are of a satisfactory quality. Many hope to return to their home country or to find a worthwhile existence in a refugee camp. The latter implies appropriate basic services (housing, food, healthcare, etc.), education for children, work, an income and peaceful coexistence in the new environment; |
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6.

notes that many displaced people are reduced to living in refugee camps, often in a neighbouring country. They do not all have the necessary means to travel onwards, for example to Europe, regardless of the quality of reception conditions in their current location are of a satisfactory quality. Many hope to return to their home country or to find a worthwhile existence in a refugee camp. The latter implies appropriate basic services (housing, food, healthcare, etc.), education for children, work, an income and peaceful coexistence in the new environment;

| 7. | has drawn up this opinion on its own initiative with the aim of offering direction to EU measures aimed at providing refugees with better protection in their regions of origin, i.e. in the country of first asylum, mostly countries neighbouring the one from which they are fleeing. The opinion shows that local and regional authorities can make a significant contribution to achieving EU objectives in this context and sets out the instruments needed for that to happen. It emphasises the way that the strategies and possibilities of the various tiers of government can complement each other in order to achieve better coordination and results, while upholding the fundamental rights and values that are at the heart of the EU. In that regard, it should be noted for the sake of completeness that improving accommodation conditions in the region should in no way detract from recognition of the right to international protection within the EU (3); |
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7.

has drawn up this opinion on its own initiative with the aim of offering direction to EU measures aimed at providing refugees with better protection in their regions of origin, i.e. in the country of first asylum, mostly countries neighbouring the one from which they are fleeing. The opinion shows that local and regional authorities can make a significant contribution to achieving EU objectives in this context and sets out the instruments needed for that to happen. It emphasises the way that the strategies and possibilities of the various tiers of government can complement each other in order to achieve better coordination and results, while upholding the fundamental rights and values that are at the heart of the EU. In that regard, it should be noted for the sake of completeness that improving accommodation conditions in the region should in no way detract from recognition of the right to international protection within the EU (3);

Reception in the region of origin: no mean feat

| 8. | notes that accommodation in the region of origin in the event of crises is subject to a number of fixed realities:






  — | it is virtually always the form of accommodation that serves the largest number of people. Take for instance the 1,5 million Afghans who were still in Pakistan in 2015 (4), the 1,9 million Rwandans who fled to DRC, Tanzania and Burundi after the genocide in 1994 (5), and the just under 500 000 and over 240 000 Somali refugees who have been in Kenya and Ethiopia respectively since 1991 (6). The current Syrian crisis, with the above-mentioned figures, is no exception in this regard, |
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8.

notes that accommodation in the region of origin in the event of crises is subject to a number of fixed realities:

—

it is virtually always the form of accommodation that serves the largest number of people. Take for instance the 1,5 million Afghans who were still in Pakistan in 2015 (4), the 1,9 million Rwandans who fled to DRC, Tanzania and Burundi after the genocide in 1994 (5), and the just under 500 000 and over 240 000 Somali refugees who have been in Kenya and Ethiopia respectively since 1991 (6). The current Syrian crisis, with the above-mentioned figures, is no exception in this regard,

| — | only a portion of these large numbers of people lived and are still living in refugee camps; a large proportion of them have now settled in host countries, often under difficult or very difficult circumstances. For instance in Turkey it is estimated that 90 % of Syrian refugees live outside camps with limited access to basic services, |
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only a portion of these large numbers of people lived and are still living in refugee camps; a large proportion of them have now settled in host countries, often under difficult or very difficult circumstances. For instance in Turkey it is estimated that 90 % of Syrian refugees live outside camps with limited access to basic services,

| — | the period spent in neighbouring countries is often much longer that originally planned; it is generally more than 10 years and commonly turns into decades. |
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—

the period spent in neighbouring countries is often much longer that originally planned; it is generally more than 10 years and commonly turns into decades.

| 9. | notes that regardless of whether or not accommodation involves camps, large numbers of displaced people have a major impact on host communities: placing greater pressure on basic services, in relation to provision of drinking water supplies, education and healthcare, protection of the environment (waste and sewage), integration into the labour market, etc.; |
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9.

notes that regardless of whether or not accommodation involves camps, large numbers of displaced people have a major impact on host communities: placing greater pressure on basic services, in relation to provision of drinking water supplies, education and healthcare, protection of the environment (waste and sewage), integration into the labour market, etc.;

| 10. | is aware that for host communities this often translates into higher prices for food, housing and services etc., while at the same time generating competition for jobs and thus lower wages; |
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10.

is aware that for host communities this often translates into higher prices for food, housing and services etc., while at the same time generating competition for jobs and thus lower wages;

| 11. | acknowledges that this pressure on host communities often comes on top of existing problems and challenges. The combined effect is often to generate social tensions between refugees and host communities, and among (groups of) refugees themselves, or to stir up dormant social tensions within host communities. |
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11.

acknowledges that this pressure on host communities often comes on top of existing problems and challenges. The combined effect is often to generate social tensions between refugees and host communities, and among (groups of) refugees themselves, or to stir up dormant social tensions within host communities.

| 12. | realises that there is a danger that this can snowball: if tensions get out of hand, there can be violence and refugee flows within host communities; |
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12.

realises that there is a danger that this can snowball: if tensions get out of hand, there can be violence and refugee flows within host communities;

| 13. | finally, notes the ad-hoc manner in which much aid is administered. The location of refugee camps is not always well thought out; very often the choice is made with far too brief a time frame in mind, without considering a broader vision for regional development and frequently without listening to local and regional authorities, who ultimately are those most affected by the knock-on effects, as described above; |
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13.

finally, notes the ad-hoc manner in which much aid is administered. The location of refugee camps is not always well thought out; very often the choice is made with far too brief a time frame in mind, without considering a broader vision for regional development and frequently without listening to local and regional authorities, who ultimately are those most affected by the knock-on effects, as described above;

What is needed?

| 14. | is of the opinion that, in view of the situation described above, what is needed is a combination of crisis management and a longer-term approach, aimed at providing basic necessities and securing social cohesion as part of a process of controlled physical, social and economic development that respects human rights, including gender equality and the environment; |
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14.

is of the opinion that, in view of the situation described above, what is needed is a combination of crisis management and a longer-term approach, aimed at providing basic necessities and securing social cohesion as part of a process of controlled physical, social and economic development that respects human rights, including gender equality and the environment;

| 15. | would recommend wherever possible and as soon as possible reducing refugees’ dependency on aid, which results for instance from their not being allowed to accept paid employment. Also recommends that efforts be made to boost refugees’ self-reliance and for them to be able, wherever possible, to manage their own lives by, for example, promoting options for them to carry out paid work. In this connection, the fact that Syrian refugees in Turkey can now obtain a work permit is a positive development. New approaches are also needed here, for instance engaging the business community. Experts suggest that small cash payments to refugees have a much more positive impact on the local economy than assistance in kind. The Committee therefore calls for this option to be analysed and for the findings to be implemented where possible; |
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15.

would recommend wherever possible and as soon as possible reducing refugees’ dependency on aid, which results for instance from their not being allowed to accept paid employment. Also recommends that efforts be made to boost refugees’ self-reliance and for them to be able, wherever possible, to manage their own lives by, for example, promoting options for them to carry out paid work. In this connection, the fact that Syrian refugees in Turkey can now obtain a work permit is a positive development. New approaches are also needed here, for instance engaging the business community. Experts suggest that small cash payments to refugees have a much more positive impact on the local economy than assistance in kind. The Committee therefore calls for this option to be analysed and for the findings to be implemented where possible;

| 16. | recommends ensuring henceforth that the establishment, development and management of camps is based from the outset on an urban and territorial development approach as opposed to an emergency aid approach, with an eye from the beginning on positive and negative impacts on the host communities; this approach means that more informed choices will have to be made about the location of camps and subsequent expansion possibilities, the existing facilities available, and the possibility of developing new facilities, the economic impact, traffic, etc., paying special attention to vulnerable groups such as women and children; |
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16.

recommends ensuring henceforth that the establishment, development and management of camps is based from the outset on an urban and territorial development approach as opposed to an emergency aid approach, with an eye from the beginning on positive and negative impacts on the host communities; this approach means that more informed choices will have to be made about the location of camps and subsequent expansion possibilities, the existing facilities available, and the possibility of developing new facilities, the economic impact, traffic, etc., paying special attention to vulnerable groups such as women and children;

| 17. | also points out that access to education and paid work, in combination with other measures for specific groups, such as women, children and young people, is important for two reasons. Firstly, it reduces the risk of radicalisation, isolation, segregation, vulnerability to criminal activities (human trafficking, prostitution, trafficking in organs) and recruitment by terrorist networks; secondly, it facilitates social, economic and cultural integration into the social fabric of the host county; |
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17.

also points out that access to education and paid work, in combination with other measures for specific groups, such as women, children and young people, is important for two reasons. Firstly, it reduces the risk of radicalisation, isolation, segregation, vulnerability to criminal activities (human trafficking, prostitution, trafficking in organs) and recruitment by terrorist networks; secondly, it facilitates social, economic and cultural integration into the social fabric of the host county;

| 18. | urges the EU to help with the provision of mental health care for Syrian refugees, especially children who suffer from post-traumatic stress disorder representing a threat to their health and to their integration; |
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18.

urges the EU to help with the provision of mental health care for Syrian refugees, especially children who suffer from post-traumatic stress disorder representing a threat to their health and to their integration;

| 19. | is of the view that the approach should also be to plan for the permanent, or at least very long-term, presence of refugees, outside the camps too, and thus their integration within host communities. For example, a part of the resources could be allocated to offering support for socially useful work and the reception of new arrivals. This will necessitate an extensive policy dialogue which considers the particular situation of host regions and of the refugee groups affected; |
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19.

is of the view that the approach should also be to plan for the permanent, or at least very long-term, presence of refugees, outside the camps too, and thus their integration within host communities. For example, a part of the resources could be allocated to offering support for socially useful work and the reception of new arrivals. This will necessitate an extensive policy dialogue which considers the particular situation of host regions and of the refugee groups affected;

| 20. | notes that this type of approach cannot focus solely on refugees but must necessarily also focus on preventing and resolving problems within the host communities themselves. The international community needs to be more prepared than it has been to date to support national, local and regional authorities in shouldering their responsibility for the environment within which ‘integration in the region’ must take place. This must also be reflected financially, helping to maintain the level of basic services and promoting local and regional economic development, for example; |
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20.

notes that this type of approach cannot focus solely on refugees but must necessarily also focus on preventing and resolving problems within the host communities themselves. The international community needs to be more prepared than it has been to date to support national, local and regional authorities in shouldering their responsibility for the environment within which ‘integration in the region’ must take place. This must also be reflected financially, helping to maintain the level of basic services and promoting local and regional economic development, for example;

The role of local authorities

| 21. | notes that the problems of refugees and the communities in their countries of origin and the surrounding region arise in the villages, towns and regions where they live, go to school, need assistance, work, seek work or have neighbours. In the wake of direct emergency aid, measures must therefore be taken and solutions found at local and regional authority level above all (7); |
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21.

notes that the problems of refugees and the communities in their countries of origin and the surrounding region arise in the villages, towns and regions where they live, go to school, need assistance, work, seek work or have neighbours. In the wake of direct emergency aid, measures must therefore be taken and solutions found at local and regional authority level above all (7);

| 22. | notes however that local and regional authorities in countries of origin and the surrounding region find it very difficult to respond to these expectations. In most cases, even before the refugees arrived, they already had inadequate powers, insufficient financial resources and a lack of skilled personnel. In centralised political systems, they cannot act quickly because many types of expenditure and decisions have first to be approved at a higher administrative level; |
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22.

notes however that local and regional authorities in countries of origin and the surrounding region find it very difficult to respond to these expectations. In most cases, even before the refugees arrived, they already had inadequate powers, insufficient financial resources and a lack of skilled personnel. In centralised political systems, they cannot act quickly because many types of expenditure and decisions have first to be approved at a higher administrative level;

| 23. | cooperation between local and regional authorities on the one hand, and UNHCR and humanitarian NGOs on the other, needs to be stepped up if work is to be coordinated; with a view to subsidiarity, recognition of and support for public, private and non-profit players from the third sector and civil society which are on the front line in terms of hosting and seeing to the needs of refugees in the regions, guaranteeing a constructive process of integration which takes greater account of regional situations and issues; |
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23.

cooperation between local and regional authorities on the one hand, and UNHCR and humanitarian NGOs on the other, needs to be stepped up if work is to be coordinated; with a view to subsidiarity, recognition of and support for public, private and non-profit players from the third sector and civil society which are on the front line in terms of hosting and seeing to the needs of refugees in the regions, guaranteeing a constructive process of integration which takes greater account of regional situations and issues;

| 24. | recommends improvements on a number of levels in order to enable local and regional authorities in countries of origin and the surrounding region to take effective responsibility for maintaining or providing basic services and for tending to the longer-term aspects of the sustainable social and economic development of their regions and municipalities:






  — | the institutional environment: clearly defined and appropriate responsibilities for local and regional authorities, with less dependence on central administrations — including the option of working directly with international organisations and countries or regions that are prepared to offer assistance – greater involvement in the preparation and administration of international support, |
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24.

recommends improvements on a number of levels in order to enable local and regional authorities in countries of origin and the surrounding region to take effective responsibility for maintaining or providing basic services and for tending to the longer-term aspects of the sustainable social and economic development of their regions and municipalities:

—

the institutional environment: clearly defined and appropriate responsibilities for local and regional authorities, with less dependence on central administrations — including the option of working directly with international organisations and countries or regions that are prepared to offer assistance – greater involvement in the preparation and administration of international support,

| — | adequate financial resources to enable authorities to shoulder their responsibilities, by means of transfers, local revenues and/or direct funding from donors, |
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adequate financial resources to enable authorities to shoulder their responsibilities, by means of transfers, local revenues and/or direct funding from donors,

| — | capacity building at political and administrative level, by means of training and education, exposure, exchanges and support for learning by doing; |
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capacity building at political and administrative level, by means of training and education, exposure, exchanges and support for learning by doing;

Resources and measures

| 25. | notes that making reception in the region a major element of the broader policy on refugees will require a permanently high level of economic, material, human and technical resources. On 14 September 2015, the European Justice and Home Affairs Council therefore quite rightly decided to increase the contribution of the EU and its Member States to the UNHCR, in order to enable it to host large numbers of Syrian refugees in camps in the neighbouring countries, and also agreed on a significant increase in the EU Regional Trust Fund in response to the Syrian crisis, the Madad Fund (8). This increase will presumably be needed for several years to come; |
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25.

notes that making reception in the region a major element of the broader policy on refugees will require a permanently high level of economic, material, human and technical resources. On 14 September 2015, the European Justice and Home Affairs Council therefore quite rightly decided to increase the contribution of the EU and its Member States to the UNHCR, in order to enable it to host large numbers of Syrian refugees in camps in the neighbouring countries, and also agreed on a significant increase in the EU Regional Trust Fund in response to the Syrian crisis, the Madad Fund (8). This increase will presumably be needed for several years to come;

| 26. | hopes that instruments similar to the Madad Fund will be made available to tackle the crises raging in various North African countries, which could also (potentially) result in large numbers of refugees; |
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26.

hopes that instruments similar to the Madad Fund will be made available to tackle the crises raging in various North African countries, which could also (potentially) result in large numbers of refugees;

| 27. | therefore urges the EU Member States to shoulder their responsibility to provide financial support and make resources that have been promised available without delay, or do more to narrow the considerable gap in the Trust Funds between resources committed by the EU and contributions from the Member States; |
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27.

therefore urges the EU Member States to shoulder their responsibility to provide financial support and make resources that have been promised available without delay, or do more to narrow the considerable gap in the Trust Funds between resources committed by the EU and contributions from the Member States;

| 28. | calls for the Madad Fund to make sure that it gives sufficient attention in its priorities to governance issues, reflecting these in its work with and for local and regional authorities, as well as to the need to act quickly while maintaining precision, planning, effectiveness and efficiency; |
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28.

calls for the Madad Fund to make sure that it gives sufficient attention in its priorities to governance issues, reflecting these in its work with and for local and regional authorities, as well as to the need to act quickly while maintaining precision, planning, effectiveness and efficiency;

| 29. | urges the Member States to mobilise the economic resources and administrative procedures needed. To this end, local and regional authorities, particularly those with health, educational and social services responsibilities, must be involved in distributing the resources earmarked for caring for these people, so that appropriate measures to deal comprehensively with the situation can be taken jointly; |
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29.

urges the Member States to mobilise the economic resources and administrative procedures needed. To this end, local and regional authorities, particularly those with health, educational and social services responsibilities, must be involved in distributing the resources earmarked for caring for these people, so that appropriate measures to deal comprehensively with the situation can be taken jointly;

| 30. | recommends that decisive action should be taken under European development cooperation policy to address and endeavour to remedy the root causes of conflicts that force people to flee their own countries, including the lack of functioning rule of law systems, the lack of respect for human rights, religious prosecution and the lack of good governance at the various levels of government in fragile states. In this way the EU can help to tackle the causes that lead large groups of people to flee because their lives are in danger and they see no hope of peace; |
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30.

recommends that decisive action should be taken under European development cooperation policy to address and endeavour to remedy the root causes of conflicts that force people to flee their own countries, including the lack of functioning rule of law systems, the lack of respect for human rights, religious prosecution and the lack of good governance at the various levels of government in fragile states. In this way the EU can help to tackle the causes that lead large groups of people to flee because their lives are in danger and they see no hope of peace;

| 31. | to this end, recognises the importance of establishing formal, institutionalised and effective channels of communication with the local and regional authorities of refugees’ areas of origin, with a view to identifying the main fields requiring greater attention and the most suitable measures, such as financial or technological support, training for public leaders and the exchange of knowledge and best practice; |
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31.

to this end, recognises the importance of establishing formal, institutionalised and effective channels of communication with the local and regional authorities of refugees’ areas of origin, with a view to identifying the main fields requiring greater attention and the most suitable measures, such as financial or technological support, training for public leaders and the exchange of knowledge and best practice;

| 32. | considers that the principles set out in the ‘Sustainable urban agenda for the Mediterranean region’ and the key measures planned in the call for partnership with the delegation of Libyan mayors, initiatives spearheaded by ARLEM, should be followed in order to achieve effective protection of refugees in their area of origin; |
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32.

considers that the principles set out in the ‘Sustainable urban agenda for the Mediterranean region’ and the key measures planned in the call for partnership with the delegation of Libyan mayors, initiatives spearheaded by ARLEM, should be followed in order to achieve effective protection of refugees in their area of origin;

| 33. | recommends that political dialogue with the governments of the countries where refugees first seek asylum give express attention to the role of local and regional authorities, and would also draw attention to the basic conditions necessary for local and regional authorities to be able to fulfil their role and shoulder their responsibilities. Synergies must be established between local and regional decentralised cooperation players in order to facilitate joint international support projects and programmes. This includes implementing the agreements made with the Turkish government and their implications for local and regional authorities in regions bordering Syria, particularly cities in Turkey that are home to large numbers of refugees. The association of Turkish municipalities has drafted some initial proposals in this respect; |
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33.

recommends that political dialogue with the governments of the countries where refugees first seek asylum give express attention to the role of local and regional authorities, and would also draw attention to the basic conditions necessary for local and regional authorities to be able to fulfil their role and shoulder their responsibilities. Synergies must be established between local and regional decentralised cooperation players in order to facilitate joint international support projects and programmes. This includes implementing the agreements made with the Turkish government and their implications for local and regional authorities in regions bordering Syria, particularly cities in Turkey that are home to large numbers of refugees. The association of Turkish municipalities has drafted some initial proposals in this respect;

| 34. | calls for the promotion of local and regional authority involvement in needs assessments from an early stage, as for instance set out in the Regional Refugee and Resilience Plan 2015-2016 in response to the Syrian crisis (3RP). A coordinated approach to assistance is also needed at local level and this requires the active involvement of local authorities at all stages in the development of the aid programme; |
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34.

calls for the promotion of local and regional authority involvement in needs assessments from an early stage, as for instance set out in the Regional Refugee and Resilience Plan 2015-2016 in response to the Syrian crisis (3RP). A coordinated approach to assistance is also needed at local level and this requires the active involvement of local authorities at all stages in the development of the aid programme;

| 35. | the European local and regional authorities have developed some good practices and expertise regarding the integration of refugees. Therefore calls on the Council, the Commission and the EEAS to make use of the experience, availability and networks of Europe’s local and regional authorities: the Committee along with ARLEM and CORLEAP, which it set up, Platforma, and also national associations of municipalities, such as the association of Dutch municipalities (VNG) (9). They have a wealth of knowledge and experience with regard to basic service provision, integration and local and regional economic development, not only in Europe, but also in countries of first asylum. A practical approach involving sharing of best practices, comprehensive, targeted planning of provision in their area, based, inter alia, on scenario planning and taking into account the impact on the development possibilities of host communities, would appear to complement the work of UNHCR in Jordan and Lebanon very well; |
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35.

the European local and regional authorities have developed some good practices and expertise regarding the integration of refugees. Therefore calls on the Council, the Commission and the EEAS to make use of the experience, availability and networks of Europe’s local and regional authorities: the Committee along with ARLEM and CORLEAP, which it set up, Platforma, and also national associations of municipalities, such as the association of Dutch municipalities (VNG) (9). They have a wealth of knowledge and experience with regard to basic service provision, integration and local and regional economic development, not only in Europe, but also in countries of first asylum. A practical approach involving sharing of best practices, comprehensive, targeted planning of provision in their area, based, inter alia, on scenario planning and taking into account the impact on the development possibilities of host communities, would appear to complement the work of UNHCR in Jordan and Lebanon very well;

| 36. | calls for dialogue with other key players in this field, not least during the World Humanitarian Summit in Istanbul in May 2016, to look further into the ideas set out in this opinion and for these to be translated into policies and programmes. The Committee would be happy to go into this in further detail. |
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36.

calls for dialogue with other key players in this field, not least during the World Humanitarian Summit in Istanbul in May 2016, to look further into the ideas set out in this opinion and for these to be translated into policies and programmes. The Committee would be happy to go into this in further detail.

Brussels, 8 April 2016.

The President of the European Committee of the Regions

Markku MARKKULA

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(1)  As set out in its opinions on the European Agenda on Migration, CIVEX-VI/006, 3-4 December 2015 and The global approach to migration and mobility, CIVEX-V-027, 18 July 2012.

1

European Agenda on Migration

The global approach to migration and mobility

(2)  All figures dated 17 December 2015 from http://data.unhcr.org/syrianrefugees/regional.php.

2

(3)  As previously indicated in the opinion The global approach to migration and mobility, CIVEX-V-027, 18 July 2012.

3

The global approach to migration and mobility

(4)  http://www.unhcr.org/pages/49e487016.html (2015)

4

(5)  http://www.rwandanstories.org/genocide/refugee_crisis.html (no date)

5

(6)  http://www.resettlement.eu/page/somali-refugees-kenya-ethiopia

6

(7)  See in this respect for example: https://www.chathamhouse.org/sites/files/chathamhouse/field/field_document/Jordan%20workshop%20summary%20FINAL.pdf

7

(8)  http://data.consilium.europa.eu/doc/document/ST-12002-2015-REV-1/en/pdf

8

(9)  The VNG is conducting a programme worth over EUR 9 million for the Dutch government, aimed in part at strengthening local and regional authorities in Jordan and Lebanon in their role hosting Syrian refugees and addressing the impact on host communities.

9

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| 1.7.2016 | EN | Official Journal of the European Union | C 240/37 |
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1.7.2016

EN

Official Journal of the European Union

C 240/37

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Opinion of the European Committee of the Regions — A more responsible trade and investment policy

(2016/C 240/07)

| Rapporteur: | Cllr. Neale RICHMOND (IE/EPP), Dun Laoghaire Rathdown County Council |
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| Reference document: | Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Trade for all: Towards a more responsible trade and investment policy
  COM(2015) 497 final |

Rapporteur:

Cllr. Neale RICHMOND (IE/EPP), Dun Laoghaire Rathdown County Council

Reference document:

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Trade for all: Towards a more responsible trade and investment policy

COM(2015) 497 final

I.   GENERAL REMARKS

THE EUROPEAN COMMITTEE OF THE REGIONS

| 1. | Expressly welcomes the Commission’s communication of 14 October 2015 entitled ‘Trade for all: Towards a more responsible trade and investment policy’ recognising the important potential that trade can unveil in terms of growth, employment and job creation, and investment in the EU; |
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1.

Expressly welcomes the Commission’s communication of 14 October 2015 entitled ‘Trade for all: Towards a more responsible trade and investment policy’ recognising the important potential that trade can unveil in terms of growth, employment and job creation, and investment in the EU;

| 2. | Supports the Commission’s ambition to ensure that the benefits of globalisation are fairly distributed and the negative impacts are mitigated and emphasises that, in order to level the playing field, modern trade agreements require moving beyond just tariffs and putting emphasis on SMEs; agrees moreover with the Commission that trade policy can work only if Europe continues its focus on removing obstacles to the completion of the single market; |
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2.

Supports the Commission’s ambition to ensure that the benefits of globalisation are fairly distributed and the negative impacts are mitigated and emphasises that, in order to level the playing field, modern trade agreements require moving beyond just tariffs and putting emphasis on SMEs; agrees moreover with the Commission that trade policy can work only if Europe continues its focus on removing obstacles to the completion of the single market;

| 3. | Welcomes the Commission’s commitment upon which every significant initiative in the field of trade policy will be subject to a sustainability impact assessment; reminds the importance of carrying ex post evaluations and highlights that impact assessments and evaluations including appropriate consultation of all stakeholders are crucial for the formulation of sound, transparent and evidence-based trade policies; |
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3.

Welcomes the Commission’s commitment upon which every significant initiative in the field of trade policy will be subject to a sustainability impact assessment; reminds the importance of carrying ex post evaluations and highlights that impact assessments and evaluations including appropriate consultation of all stakeholders are crucial for the formulation of sound, transparent and evidence-based trade policies;

| 4. | Calls on the Commission to provide a timely assessment of the impact on the EU’s budget and EU-funded structural policies (European Structural and Investment Funds, European Globalisation Adjustment Fund, etc.) of trade liberalisation measures foreseen in free-trade agreements or deriving from multilateral arrangements such as the question of granting China a market economy status; |
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4.

Calls on the Commission to provide a timely assessment of the impact on the EU’s budget and EU-funded structural policies (European Structural and Investment Funds, European Globalisation Adjustment Fund, etc.) of trade liberalisation measures foreseen in free-trade agreements or deriving from multilateral arrangements such as the question of granting China a market economy status;

| 5. | Underlines that measures financed under the European Globalisation Adjustment Fund (EGF) are often short-term oriented and asks for increased coordination with other EU policies, specifically cohesion policy, in order to ensure that the current regional disparities within the EU will not only not be further increased, but will in fact be reduced; |
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5.

Underlines that measures financed under the European Globalisation Adjustment Fund (EGF) are often short-term oriented and asks for increased coordination with other EU policies, specifically cohesion policy, in order to ensure that the current regional disparities within the EU will not only not be further increased, but will in fact be reduced;

| 6. | Recognises the economic importance of regulatory harmonisation as it decreases the number of legal rules with which trade partners in an agreement have to comply. Points out however the need to make sure that such harmonisation in the EU trade agreements maintains or improves standards with regards to consumer, environment and workers’ rights protection; |
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6.

Recognises the economic importance of regulatory harmonisation as it decreases the number of legal rules with which trade partners in an agreement have to comply. Points out however the need to make sure that such harmonisation in the EU trade agreements maintains or improves standards with regards to consumer, environment and workers’ rights protection;

| 7. | Expects the European Commission to demonstrate transparency as regards its ambitious plans for future international trade agreements. In this context draws the attention to its ambition to redefine the EU’s relationships with African partners, Latin America and the Caribbean as well as to further intensify the trade cooperation in the framework of EU’s neighbourhood policy; |
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7.

Expects the European Commission to demonstrate transparency as regards its ambitious plans for future international trade agreements. In this context draws the attention to its ambition to redefine the EU’s relationships with African partners, Latin America and the Caribbean as well as to further intensify the trade cooperation in the framework of EU’s neighbourhood policy;

| 8. | Highlights the pivotal role of SMEs as the backbone of regional and local development and therefore to the EU cohesion as a whole and recalls that cross-compliance costs to international standards are usually higher for SMEs than for multinational corporations. Welcomes, in that respect, the fact that the Commission gives SMEs an important place in its strategy by highlighting the difficulties they may face with regard to trade liberalisation and asks that LRAs are consistently involved in the dialogue foreseen to take place between the Commission and the Member States on SMEs’ special needs; |
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8.

Highlights the pivotal role of SMEs as the backbone of regional and local development and therefore to the EU cohesion as a whole and recalls that cross-compliance costs to international standards are usually higher for SMEs than for multinational corporations. Welcomes, in that respect, the fact that the Commission gives SMEs an important place in its strategy by highlighting the difficulties they may face with regard to trade liberalisation and asks that LRAs are consistently involved in the dialogue foreseen to take place between the Commission and the Member States on SMEs’ special needs;

| 9. | Underlines that the three key principles of effectiveness, transparency and values at times may be conflicting and acknowledges the Communication argument that trade policy should consider and possibly also promote many other policy areas but seeks greater clarity as to how this could be put into effect in a practical way; stresses furthermore that economic interests must not take precedence over the guarantee of equitable access to public services; |
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9.

Underlines that the three key principles of effectiveness, transparency and values at times may be conflicting and acknowledges the Communication argument that trade policy should consider and possibly also promote many other policy areas but seeks greater clarity as to how this could be put into effect in a practical way; stresses furthermore that economic interests must not take precedence over the guarantee of equitable access to public services;

| 10. | Underlines, the need to make sure, when setting up an International Investment Court, that, throughout the transitional period until the Court has fully replaced all investment dispute resolution mechanisms provided in EU trade agreements, economic interests do not prevail over the right of competent public authorities to provide public services under the appropriate mix they deem necessary; |
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10.

Underlines, the need to make sure, when setting up an International Investment Court, that, throughout the transitional period until the Court has fully replaced all investment dispute resolution mechanisms provided in EU trade agreements, economic interests do not prevail over the right of competent public authorities to provide public services under the appropriate mix they deem necessary;

| 11. | Welcomes the announcement by the European Commission on 29 February 2016 that the investment protection chapter of the free trade agreement between the EU and Canada (CETA) picks up on the elements of the reformed approach proposed by the EU for a more transparent system for the settlement of investor-state disputes and provides for:






  — | more binding wording as to the right to regulate at all government levels on investment protection, |
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11.

Welcomes the announcement by the European Commission on 29 February 2016 that the investment protection chapter of the free trade agreement between the EU and Canada (CETA) picks up on the elements of the reformed approach proposed by the EU for a more transparent system for the settlement of investor-state disputes and provides for:

—

more binding wording as to the right to regulate at all government levels on investment protection,

| — | the implementation of a permanent and institutionalised court responsible for settling disputes, with 15 members who will be appointed in advance by the parties to the agreement, |
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—

the implementation of a permanent and institutionalised court responsible for settling disputes, with 15 members who will be appointed in advance by the parties to the agreement,

| — | the establishment of a court of appeal that will enable the examination of decisions from the point of view of their legality and their cancellation in case of error, |
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—

the establishment of a court of appeal that will enable the examination of decisions from the point of view of their legality and their cancellation in case of error,

| — | more detailed ethics rules for avoiding any conflict of interest, |
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—

more detailed ethics rules for avoiding any conflict of interest,

| — | the commitment of the EU and Canada to work on setting up a permanent multilateral jurisdiction or appeal court for investment; |
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—

the commitment of the EU and Canada to work on setting up a permanent multilateral jurisdiction or appeal court for investment;

| 12. | Welcomes the position adopted by the Commission on public services: that future EU trade agreements must not prevent government at all levels from providing, supporting or regulating public services, require states to privatise any service or prevent them from expanding the range of services they offer to the public; |
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12.

Welcomes the position adopted by the Commission on public services: that future EU trade agreements must not prevent government at all levels from providing, supporting or regulating public services, require states to privatise any service or prevent them from expanding the range of services they offer to the public;

| 13. | Stresses that local and regional authorities must at all times be able to organise the provision of services of general interest, independently of the way in which these services are provided and financed; |
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13.

Stresses that local and regional authorities must at all times be able to organise the provision of services of general interest, independently of the way in which these services are provided and financed;

II.   POLICY RECOMMENDATIONS

| 14. | Welcomes the Council’s conclusions agreed at the Trade Council on 27 November 2015, as it represents a very balanced approach which shifts the emphasis but not the substance of trade policy in line with the EU’s foreign policy; |
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14.

Welcomes the Council’s conclusions agreed at the Trade Council on 27 November 2015, as it represents a very balanced approach which shifts the emphasis but not the substance of trade policy in line with the EU’s foreign policy;

| 15. | Considers that the territorial dimension of the strategy should ensure that local and regional authorities across the EU will benefit fairly from growth and investment opportunities expected to be generated by free trade agreements and trade agreements in general, as these agreements are described in the Communication. It should also be made clear what free trade agreements might mean in relation to publicly funded activities at local level for safeguarding freedom of association and local self-government; |
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15.

Considers that the territorial dimension of the strategy should ensure that local and regional authorities across the EU will benefit fairly from growth and investment opportunities expected to be generated by free trade agreements and trade agreements in general, as these agreements are described in the Communication. It should also be made clear what free trade agreements might mean in relation to publicly funded activities at local level for safeguarding freedom of association and local self-government;

| 16. | Calls, in accordance with Articles 14 and 106 of the Treaty on the Functioning of the European Union (TFEU) and the Protocol (No 26) on services of general interest, for current and future services of general interest and services of general economic interest (including water supply, healthcare, social services, social security systems and education, waste management and public transport) to be excluded from the scope of trade agreements being negotiated; |
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16.

Calls, in accordance with Articles 14 and 106 of the Treaty on the Functioning of the European Union (TFEU) and the Protocol (No 26) on services of general interest, for current and future services of general interest and services of general economic interest (including water supply, healthcare, social services, social security systems and education, waste management and public transport) to be excluded from the scope of trade agreements being negotiated;

| 17. | Believes there is an identified need for regional and local elaboration and delivery of SME internationalisation programmes involving local and regional stakeholders. This would also include identification of gaps in support to reduce the disparities and negative impacts that more open trade can bring to certain regions; |
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17.

Believes there is an identified need for regional and local elaboration and delivery of SME internationalisation programmes involving local and regional stakeholders. This would also include identification of gaps in support to reduce the disparities and negative impacts that more open trade can bring to certain regions;

| 18. | Argues that it is important to recall that trade and investment is not only about opening markets, which in turn will stimulate competition and innovation to drive Europe’s competitiveness, which in turn could create jobs and growth, but also about the necessary development of all regions in order to strengthen economic, social and territorial cohesion and increase prosperity for all; |
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18.

Argues that it is important to recall that trade and investment is not only about opening markets, which in turn will stimulate competition and innovation to drive Europe’s competitiveness, which in turn could create jobs and growth, but also about the necessary development of all regions in order to strengthen economic, social and territorial cohesion and increase prosperity for all;

| 19. | Welcomes the emphasis on EU values within the new strategy and the promotion of core European values like sustainable development and human rights within trade agreements but believes they should be concretely set out; |
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19.

Welcomes the emphasis on EU values within the new strategy and the promotion of core European values like sustainable development and human rights within trade agreements but believes they should be concretely set out;

| 20. | Recognises that regulatory convergence within free trade agreements at sectoral levels can free up unnecessary duplication of procedures and licensing requirements leading to equivalent outcomes; However, in order to avoid any subsequent litigation, it is important to word the text of the agreement clearly and to draw up an exhaustive ‘positive’ list of the services covered by the agreements on trade in services; |
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20.

Recognises that regulatory convergence within free trade agreements at sectoral levels can free up unnecessary duplication of procedures and licensing requirements leading to equivalent outcomes; However, in order to avoid any subsequent litigation, it is important to word the text of the agreement clearly and to draw up an exhaustive ‘positive’ list of the services covered by the agreements on trade in services;

| 21. | Welcomes the communication’s focus on the untapped potential of SMEs and the need to provide them with well-targeted support, starting with the right trade policy; |
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21.

Welcomes the communication’s focus on the untapped potential of SMEs and the need to provide them with well-targeted support, starting with the right trade policy;

| 22. | Identifies that regulatory convergence is particularly pertinent creating internationalisation opportunities and integration into global value chains for SMEs; |
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22.

Identifies that regulatory convergence is particularly pertinent creating internationalisation opportunities and integration into global value chains for SMEs;

| 23. | Believes a balanced outcome in sensitive traditional sectors such as agriculture should be the objective in all EU FTAs, and that FTAs should inherently recognise and protect quality products against counterfeiting at international level; |
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23.

Believes a balanced outcome in sensitive traditional sectors such as agriculture should be the objective in all EU FTAs, and that FTAs should inherently recognise and protect quality products against counterfeiting at international level;

| 24. | Agrees that the intensification of the debate around the EU’s trade policy provides an opportunity to better involve all stakeholders in the preparation, negotiation and implementation of our different initiatives in the field; to this end, however, transparency needs to be ensured to a greater extent than is the case today; |
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24.

Agrees that the intensification of the debate around the EU’s trade policy provides an opportunity to better involve all stakeholders in the preparation, negotiation and implementation of our different initiatives in the field; to this end, however, transparency needs to be ensured to a greater extent than is the case today;

| 25. | Calls for strengthened measures to support sustainable development and good governance through trade agreements, multi-stakeholder initiatives and beyond, with an emphasis on free, fair and ethical trade, environmental protection, labour rights, decent working conditions, as well as human rights, health and consumer protection, animal welfare, ensuring the protection of cultural diversity and promoting development through trade, including Aid for Trade and the 2030 Agenda; |
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25.

Calls for strengthened measures to support sustainable development and good governance through trade agreements, multi-stakeholder initiatives and beyond, with an emphasis on free, fair and ethical trade, environmental protection, labour rights, decent working conditions, as well as human rights, health and consumer protection, animal welfare, ensuring the protection of cultural diversity and promoting development through trade, including Aid for Trade and the 2030 Agenda;

| 26. | Argues that trade agreements should provide equal opportunities across EU Member States, regions, including outermost regions and overseas territories of the EU, and all relevant sectors, including industry, agriculture and services. Welcome, in this context, that the Council underlined the need to facilitate and improve the integration of European companies in global value chains, in particular small and medium-sized enterprises; |
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26.

Argues that trade agreements should provide equal opportunities across EU Member States, regions, including outermost regions and overseas territories of the EU, and all relevant sectors, including industry, agriculture and services. Welcome, in this context, that the Council underlined the need to facilitate and improve the integration of European companies in global value chains, in particular small and medium-sized enterprises;

| 27. | Welcomes the EU Commission’s commitment to transparency measures and hopes it will be followed up by other specific measures to promote greater visibility, such as mandatory transparency regarding negotiating positions, including those of the other parties. However, it criticises the communication for failing to address the more fundamental problems with transparency on trade policy making at the EU Member State level, for example how trade policy objectives are formulated before negotiations are started, i.e. at the stage when the 28 Member States set a mandate; |
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27.

Welcomes the EU Commission’s commitment to transparency measures and hopes it will be followed up by other specific measures to promote greater visibility, such as mandatory transparency regarding negotiating positions, including those of the other parties. However, it criticises the communication for failing to address the more fundamental problems with transparency on trade policy making at the EU Member State level, for example how trade policy objectives are formulated before negotiations are started, i.e. at the stage when the 28 Member States set a mandate;

| 28. | Stresses that the rights of the EU consumer need to be better balanced in the trade debate beyond privacy matters, consumer safety and their right to know about products. The key components of consumer protection — information, transparency and freedom of choice — must be safeguarded and protected; |
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28.

Stresses that the rights of the EU consumer need to be better balanced in the trade debate beyond privacy matters, consumer safety and their right to know about products. The key components of consumer protection — information, transparency and freedom of choice — must be safeguarded and protected;

| 29. | Equal focus should be given to exporting SMEs and non-exporting SMEs, to ensure that the benefits of open trade and EU trade policy are not exclusively confined to those SMEs who contribute to the export economy of a Member State; |
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29.

Equal focus should be given to exporting SMEs and non-exporting SMEs, to ensure that the benefits of open trade and EU trade policy are not exclusively confined to those SMEs who contribute to the export economy of a Member State;

| 30. | Encourages EU negotiators to push for the inclusion of a ‘Small business’ chapter in all future EU trade agreements; |
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30.

Encourages EU negotiators to push for the inclusion of a ‘Small business’ chapter in all future EU trade agreements;

| 31. | Believes the reductions in the cost of regulation would positively lead to a greater uplift to help small and medium-sized businesses to break into new markets where duplicative systems between trading partners outside of FTAs act as a barrier to entry and helps bigger, well-established companies to monopolise markets; |
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31.

Believes the reductions in the cost of regulation would positively lead to a greater uplift to help small and medium-sized businesses to break into new markets where duplicative systems between trading partners outside of FTAs act as a barrier to entry and helps bigger, well-established companies to monopolise markets;

| 32. | Supports more open trade as the antidote to low levels of investment through acting as a stimulant for global economy at a time when debt levels remain high; |
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32.

Supports more open trade as the antidote to low levels of investment through acting as a stimulant for global economy at a time when debt levels remain high;

| 33. | Notes the communication’s strong focus on bilateral free trade agreements (FTAs), but recommends that the EU should once again see its trade policy more firmly within the framework of the multilateral agenda at the WTO; |
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33.

Notes the communication’s strong focus on bilateral free trade agreements (FTAs), but recommends that the EU should once again see its trade policy more firmly within the framework of the multilateral agenda at the WTO;

| 34. | Is concerned that the increased focus on the bilateral trade agenda is promoting economic bloc formation and discriminatory and deregulatory competition, to the detriment of economically weaker states with limited bargaining power; |
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34.

Is concerned that the increased focus on the bilateral trade agenda is promoting economic bloc formation and discriminatory and deregulatory competition, to the detriment of economically weaker states with limited bargaining power;

| 35. | Points out that an increasingly complex network of standards and trade rules is disadvantageous for all, and calls on the Commission to ensure synergies between, and uniformity in, the bilateral, plurilateral and multilateral agreements currently being negotiated. New agreements should also be inspired by the principles of clarity, transparency and simplification; |
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35.

Points out that an increasingly complex network of standards and trade rules is disadvantageous for all, and calls on the Commission to ensure synergies between, and uniformity in, the bilateral, plurilateral and multilateral agreements currently being negotiated. New agreements should also be inspired by the principles of clarity, transparency and simplification;

| 36. | Request that EU trade policy should consider specifically promoting trade in sectors where the EU is a world leader, for instance green technology; |
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36.

Request that EU trade policy should consider specifically promoting trade in sectors where the EU is a world leader, for instance green technology;

| 37. | Requests that the regions and local and regional chambers of commerce or equivalent representational/multiplier organisations be properly informed of the challenges and opportunities created by increased international trade. This is especially important for SMEs as they are more likely to lack the resources to monitor developments in world trade on their own; |
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37.

Requests that the regions and local and regional chambers of commerce or equivalent representational/multiplier organisations be properly informed of the challenges and opportunities created by increased international trade. This is especially important for SMEs as they are more likely to lack the resources to monitor developments in world trade on their own;

| 38. | Believes there should be greater coherency for trade policy with the policies aiming to help developing countries, without losing sight however of the importance of strategic development and continued growth in the EU; |
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38.

Believes there should be greater coherency for trade policy with the policies aiming to help developing countries, without losing sight however of the importance of strategic development and continued growth in the EU;

| 39. | Stresses that labour standards, including the eight fundamental International Labour Organisation conventions, must be equally implemented in all chapters of trade agreements, and that these agreements must include a revision clause allowing a party to leave the agreement or to suspend commitments in the event of infringements of labour and social standards; |
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39.

Stresses that labour standards, including the eight fundamental International Labour Organisation conventions, must be equally implemented in all chapters of trade agreements, and that these agreements must include a revision clause allowing a party to leave the agreement or to suspend commitments in the event of infringements of labour and social standards;

| 40. | Underlines that in relation to investment agreements, commitments to ring-fencing legitimate public policy measures against challenge presented by free trade agreements is paramount as there should be no impediments to MSs pursuing legitimate public policy measures such as against tobacco consumption; |
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40.

Underlines that in relation to investment agreements, commitments to ring-fencing legitimate public policy measures against challenge presented by free trade agreements is paramount as there should be no impediments to MSs pursuing legitimate public policy measures such as against tobacco consumption;

| 41. | Points out that the ISDS and ICS discussion is complicated and calls for legal disputes affecting compliance with trade agreements to be referred to the public courts at the place of the defendant’s registered office, and for proceedings to be conducted in the defendant’s language and governed by the laws in force in the defendant’s country; the right of appeal must be possible; mechanisms for settling disputes between states should draw on the procedures in place at the WTO; |
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41.

Points out that the ISDS and ICS discussion is complicated and calls for legal disputes affecting compliance with trade agreements to be referred to the public courts at the place of the defendant’s registered office, and for proceedings to be conducted in the defendant’s language and governed by the laws in force in the defendant’s country; the right of appeal must be possible; mechanisms for settling disputes between states should draw on the procedures in place at the WTO;

| 42. | Also calls on the Commission to ensure that, until the ICS is established, investor-state dispute resolution mechanisms based on most favoured nation clauses are not used without limit, outside the scope of the relevant trade agreement; |
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42.

Also calls on the Commission to ensure that, until the ICS is established, investor-state dispute resolution mechanisms based on most favoured nation clauses are not used without limit, outside the scope of the relevant trade agreement;

| 43. | Argues that it is necessary that trade agreements, even after having been agreed and ratified, have a mechanism (some sort of regulatory overseeing body) that allows technical adjustments, as well as a revision clause allowing for a possible fresh review of the agreement in question and a clause allowing decisions on liberalisation measures to be reversed at any time — including for decisions taken by local and regional authorities on matters falling within their own remit; |
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43.

Argues that it is necessary that trade agreements, even after having been agreed and ratified, have a mechanism (some sort of regulatory overseeing body) that allows technical adjustments, as well as a revision clause allowing for a possible fresh review of the agreement in question and a clause allowing decisions on liberalisation measures to be reversed at any time — including for decisions taken by local and regional authorities on matters falling within their own remit;

| 44. | It is also important that those representing the EU and the trade partner(s) in this body are well informed and that balanced representation of interests is ensured; |
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44.

It is also important that those representing the EU and the trade partner(s) in this body are well informed and that balanced representation of interests is ensured;

| 45. | Emphasises that it is important to try to simplify trade with all the other countries with which the EU does not have a FTA; |
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45.

Emphasises that it is important to try to simplify trade with all the other countries with which the EU does not have a FTA;

| 46. | Agrees that rebalancing the relative contribution of developed and emerging economies to the system is a key requirement to move forward in the future; |
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46.

Agrees that rebalancing the relative contribution of developed and emerging economies to the system is a key requirement to move forward in the future;

| 47. | Stresses that EU trade agreements must not lead to lower levels of consumer, environmental or social and labour protection than are in place in the European Union and the individual Member States today. It must also continue to be possible to further develop these levels. It recommends that these principles be strengthened and that it be clarified that this also applies to questions of product safety and health, animal and data protection; expects the European Union’s room for manoeuvre, and that of its Member States’ parliaments and governments, to be maintained, thus also safeguarding the public’s democratic opportunity to exert influence; |
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47.

Stresses that EU trade agreements must not lead to lower levels of consumer, environmental or social and labour protection than are in place in the European Union and the individual Member States today. It must also continue to be possible to further develop these levels. It recommends that these principles be strengthened and that it be clarified that this also applies to questions of product safety and health, animal and data protection; expects the European Union’s room for manoeuvre, and that of its Member States’ parliaments and governments, to be maintained, thus also safeguarding the public’s democratic opportunity to exert influence;

| 48. | calls for measures to support consumers in the context of cross-border trade in goods and services with third countries, for example in the form of online helpdesks which provide information or advice in connection with disputes; |
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48.

calls for measures to support consumers in the context of cross-border trade in goods and services with third countries, for example in the form of online helpdesks which provide information or advice in connection with disputes;

| 49. | Endorses the inclusion of anti-corruption provisions in trade agreements as another measure to ensure all businesses and consumers can seek the benefits of an agreement thus reducing regional fault lines; |
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49.

Endorses the inclusion of anti-corruption provisions in trade agreements as another measure to ensure all businesses and consumers can seek the benefits of an agreement thus reducing regional fault lines;

| 50. | Believes the Committee of the Regions has an integral role in ensuring that the benefits of trade agreements are felt at a local and regional level and to scrutinise those agreements whose benefits have not been felt at a more local level; |
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50.

Believes the Committee of the Regions has an integral role in ensuring that the benefits of trade agreements are felt at a local and regional level and to scrutinise those agreements whose benefits have not been felt at a more local level;

| 51. | Highlights the need for the EU to include public procurement in international trade agreements, providing at the same time leverage in negotiations, in order to respond to the mismatch between the openness of EU’s public procurement markets and the restrictive practices by major trading partners; |
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51.

Highlights the need for the EU to include public procurement in international trade agreements, providing at the same time leverage in negotiations, in order to respond to the mismatch between the openness of EU’s public procurement markets and the restrictive practices by major trading partners;

| 52. | Welcomes the revised proposal of the European Commission on the International Procurement Instrument (1) and underlines that this tool can contribute to the fight against corruption in third countries. Furthermore asks for a balanced use of the instrument in order to prevent it from being used to protect or close the EU’s public procurement markets; |
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52.

Welcomes the revised proposal of the European Commission on the International Procurement Instrument (1) and underlines that this tool can contribute to the fight against corruption in third countries. Furthermore asks for a balanced use of the instrument in order to prevent it from being used to protect or close the EU’s public procurement markets;

| 53. | Highlights the specific needs of EU SMEs and the difficulties they may face participating in third country public procurement markets. Welcomes in that respect the fact that the instrument will not apply to tenders submitted by EU SMEs and the fact that its application will be limited to contracts above a certain threshold. |
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53.

Highlights the specific needs of EU SMEs and the difficulties they may face participating in third country public procurement markets. Welcomes in that respect the fact that the instrument will not apply to tenders submitted by EU SMEs and the fact that its application will be limited to contracts above a certain threshold.

Brussels, 8 April 2016.

The President of the European Committee of the Regions

Markku MARKKULA

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(1)  COM(2016) 34 final.

1

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| 1.7.2016 | EN | Official Journal of the European Union | C 240/43 |
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1.7.2016

EN

Official Journal of the European Union

C 240/43

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Opinion of the European Committee of the Regions — Upgrading the Single Market

(2016/C 240/08)

| Rapporteur: | Alessandro PASTACCI (IT/PES), President of the Province of Mantova |
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| Reference document: | Communication on Upgrading the Single Market: more opportunities for people and business
  COM(2015) 550 final |

Rapporteur:

Alessandro PASTACCI (IT/PES), President of the Province of Mantova

Reference document:

Communication on Upgrading the Single Market: more opportunities for people and business

COM(2015) 550 final

THE EUROPEAN COMMITTEE OF THE REGIONS

General remarks

| 1. | stresses that the Single Market, as the fundament of free movement of goods, services, persons and capital within the European Union (EU), is the EU’s major economic success and has helped to increase prosperity and jobs. For it to work better still more economic and structural reforms are needed to meet the goals set for growth and employment in the Europe 2020 Strategy as well as the objectives set in Article 3 of the Treaty on the EU in relation to sustainable development, a highly competitive social market economy and economic, social and territorial cohesion; also insists that the Single Market, the Schengen Agreement on Free Movement of Persons and the completion of Europe’s Economic and Monetary Union (1) are inextricably linked; considers, therefore, completion and implementation of the Single Market to be of paramount importance for exploiting the Single Market’s full potential; |
| --- | --- |

1.

stresses that the Single Market, as the fundament of free movement of goods, services, persons and capital within the European Union (EU), is the EU’s major economic success and has helped to increase prosperity and jobs. For it to work better still more economic and structural reforms are needed to meet the goals set for growth and employment in the Europe 2020 Strategy as well as the objectives set in Article 3 of the Treaty on the EU in relation to sustainable development, a highly competitive social market economy and economic, social and territorial cohesion; also insists that the Single Market, the Schengen Agreement on Free Movement of Persons and the completion of Europe’s Economic and Monetary Union (1) are inextricably linked; considers, therefore, completion and implementation of the Single Market to be of paramount importance for exploiting the Single Market’s full potential;

| 2. | agrees that, to be more effective, the updated Single Market Strategy must be three-pronged so as to: 1) create opportunities for consumers, professionals and businesses; 2) encourage and enable Europe’s modernisation and innovation; 3) ensure its practical delivery so as to improve the everyday life of consumers and businesses. Such a three-pronged and integrated strategy should aim at tackling the challenges raised by the combined effects of fast globalisation and technological change and the only gradual adaptation of schooling and training systems; |
| --- | --- |

2.

agrees that, to be more effective, the updated Single Market Strategy must be three-pronged so as to: 1) create opportunities for consumers, professionals and businesses; 2) encourage and enable Europe’s modernisation and innovation; 3) ensure its practical delivery so as to improve the everyday life of consumers and businesses. Such a three-pronged and integrated strategy should aim at tackling the challenges raised by the combined effects of fast globalisation and technological change and the only gradual adaptation of schooling and training systems;

| 3. | supports the European Parliament’s call for the inclusion of the Single Market pillar in the European Semester (2), with a system for regular monitoring and evaluation of Single Market’s integration comprising a set of quantitative and qualitative indicators, benchmarking, peer review and exchange of best practices; |
| --- | --- |

3.

supports the European Parliament’s call for the inclusion of the Single Market pillar in the European Semester (2), with a system for regular monitoring and evaluation of Single Market’s integration comprising a set of quantitative and qualitative indicators, benchmarking, peer review and exchange of best practices;

| 4. | considers that the Single Market Strategy is intended to complement and be complemented by the EU initiatives on investment, competitiveness and access to finance, the internal market for energy, the Digital Single Market and labour mobility; regrets therefore that the Commission’s communication was not accompanied by the proposal for a review of the posting of workers directive, meant to be one of this Commission’s major initiatives for tackling social dumping and strengthening workers’ rights and guaranteeing collective bargaining as the framework for labour relations. This situation should not lead to a hiatus between the roadmap for deepening the single market and necessary initiatives to improve the conditions for labour mobility and be addressed in the legislative procedure on the European Commission’s proposal amending the Posting of Workers Directive (Directive 96/71/EC) presented on 8 March; |
| --- | --- |

4.

considers that the Single Market Strategy is intended to complement and be complemented by the EU initiatives on investment, competitiveness and access to finance, the internal market for energy, the Digital Single Market and labour mobility; regrets therefore that the Commission’s communication was not accompanied by the proposal for a review of the posting of workers directive, meant to be one of this Commission’s major initiatives for tackling social dumping and strengthening workers’ rights and guaranteeing collective bargaining as the framework for labour relations. This situation should not lead to a hiatus between the roadmap for deepening the single market and necessary initiatives to improve the conditions for labour mobility and be addressed in the legislative procedure on the European Commission’s proposal amending the Posting of Workers Directive (Directive 96/71/EC) presented on 8 March;

| 5. | emphasises that the Single Market is a cross-cutting policy interacting with many sectoral EU policies. The CoR would therefore have expected the Commission’s Communication on the Single Market Strategy to outline more clearly interactions in particular with trade and competition policy. In relation to trade policy, it would have been legitimate to expect that prior to granting China a Market Economy Status (MES) by the end of 2016 the Communication announces an analysis to be carried out of the economic, social and territorial impact and the impact on the Single Market of such a decision; |
| --- | --- |

5.

emphasises that the Single Market is a cross-cutting policy interacting with many sectoral EU policies. The CoR would therefore have expected the Commission’s Communication on the Single Market Strategy to outline more clearly interactions in particular with trade and competition policy. In relation to trade policy, it would have been legitimate to expect that prior to granting China a Market Economy Status (MES) by the end of 2016 the Communication announces an analysis to be carried out of the economic, social and territorial impact and the impact on the Single Market of such a decision;

| 6. | calls for completion of the Digital Single Market that has the potential to bridge the digital gap between regions, and to further improve access to information, bring efficiency gains, and introduce improved business and administrative models; highlights that e-commerce and e-procurement generates tangible benefits for consumers, e-government facilitates online compliance and access to jobs and business opportunities for both citizens and businesses, thus contributing to the economic growth; |
| --- | --- |

6.

calls for completion of the Digital Single Market that has the potential to bridge the digital gap between regions, and to further improve access to information, bring efficiency gains, and introduce improved business and administrative models; highlights that e-commerce and e-procurement generates tangible benefits for consumers, e-government facilitates online compliance and access to jobs and business opportunities for both citizens and businesses, thus contributing to the economic growth;

| 7. | draws attention to the specific role of the European Groupings of Territorial Cooperation (EGTC) as cross-border players in the Single Market, as well as of other cross-border structures like the European Groupings of Economic Interest or the European Cooperative Society. These are laboratories for the Single Market and can help identify Single Market barriers, since they are able to identify and address locally issues such as public procurement, cross-border contracts, double taxation of staff, applicable law, consumer protection and cross-border services; |
| --- | --- |

7.

draws attention to the specific role of the European Groupings of Territorial Cooperation (EGTC) as cross-border players in the Single Market, as well as of other cross-border structures like the European Groupings of Economic Interest or the European Cooperative Society. These are laboratories for the Single Market and can help identify Single Market barriers, since they are able to identify and address locally issues such as public procurement, cross-border contracts, double taxation of staff, applicable law, consumer protection and cross-border services;

| 8. | regrets the absence of direct references to the craft sector and specific measures for its promotion since there are over 16 million craft enterprises playing an important role in job creation and economic development; |
| --- | --- |

8.

regrets the absence of direct references to the craft sector and specific measures for its promotion since there are over 16 million craft enterprises playing an important role in job creation and economic development;

| 9. | reiterates that in order to determine the effects of EU policies, the Member States and the European Union need to implement Territorial Impact Assessments as a standard practice in the policy-making process and when programming and implementing sectoral policies (3); |
| --- | --- |

9.

reiterates that in order to determine the effects of EU policies, the Member States and the European Union need to implement Territorial Impact Assessments as a standard practice in the policy-making process and when programming and implementing sectoral policies (3);

In relation to the development of the collaborative economy

| 10. | welcomes the Commission’s announced initiative on the European agenda for the collaborative/sharing economy, including the guidance on how EU law applies to this new sector, its ambition to support its potential in terms of sustainable growth and job creation and as well as its intention to examine the extent to which the provisions of the Services Directive, the e-Commerce Directive and the EU consumer protection acquis are applicable to the collaborative/sharing economy and if there is need for further regulation in particular in relation to social security and employment rights of workers, health and safety norms, taxation and licensing; reiterates the CoR’s conviction that any hard regulatory initiative should have a sectoral approach and take into account the scale of the sharing economy initiative as a criterion for drawing regulatory lines; |
| --- | --- |

10.

welcomes the Commission’s announced initiative on the European agenda for the collaborative/sharing economy, including the guidance on how EU law applies to this new sector, its ambition to support its potential in terms of sustainable growth and job creation and as well as its intention to examine the extent to which the provisions of the Services Directive, the e-Commerce Directive and the EU consumer protection acquis are applicable to the collaborative/sharing economy and if there is need for further regulation in particular in relation to social security and employment rights of workers, health and safety norms, taxation and licensing; reiterates the CoR’s conviction that any hard regulatory initiative should have a sectoral approach and take into account the scale of the sharing economy initiative as a criterion for drawing regulatory lines;

| 11. | points out that ex ante urban and territorial impact assessments could be run and developed in close partnership with all levels of government so as to identify methodological protocols. Notes that assessments should be designed so as not to unnecessarily burden the promotion and development of new activities, or to further burden the daily activities of existing businesses, irrespective of their size; |
| --- | --- |

11.

points out that ex ante urban and territorial impact assessments could be run and developed in close partnership with all levels of government so as to identify methodological protocols. Notes that assessments should be designed so as not to unnecessarily burden the promotion and development of new activities, or to further burden the daily activities of existing businesses, irrespective of their size;

In relation to how to help SMEs and Start-ups to grow

| 12. | supports the Commission’s intention to present initiatives aimed at reducing the heavy burden that VAT registration and reporting obligations put on start-ups and SMEs, particularly when operating cross border; points out that the simplification of VAT reporting requirements for SMEs and micro-enterprises has also been identified as an opportunity for further action in the consultation of the European Entrepreneurial Regions (EER) conducted by the CoR in April 2014. This is of particular relevance for retail trade, hotels and restaurants, where the interest of small-sized operators to operate across borders may be obstructed by a too heavy bureaucracy, with prejudice to the diverse categories of consumers; |
| --- | --- |

12.

supports the Commission’s intention to present initiatives aimed at reducing the heavy burden that VAT registration and reporting obligations put on start-ups and SMEs, particularly when operating cross border; points out that the simplification of VAT reporting requirements for SMEs and micro-enterprises has also been identified as an opportunity for further action in the consultation of the European Entrepreneurial Regions (EER) conducted by the CoR in April 2014. This is of particular relevance for retail trade, hotels and restaurants, where the interest of small-sized operators to operate across borders may be obstructed by a too heavy bureaucracy, with prejudice to the diverse categories of consumers;

| 13. | recognises that the SME Supporting Factor has played a crucial role in enabling SMEs to access financing and hopes that it will be extended for the next few years; |
| --- | --- |

13.

recognises that the SME Supporting Factor has played a crucial role in enabling SMEs to access financing and hopes that it will be extended for the next few years;

| 14. | welcomes the Commission’s intention to put forward a legislative proposal on business insolvency in order to ensure that entrepreneurs have a second chance. This approach is likely to foster entrepreneurship and innovation in Europe, as entrepreneurs operating in an environment that does not stigmatise failure will be more inclined to take on more innovative projects; notes that the legal framework for insolvency must, however, ensure that only responsible risk-taking is encouraged and provide certainty and fairness to creditors; |
| --- | --- |

14.

welcomes the Commission’s intention to put forward a legislative proposal on business insolvency in order to ensure that entrepreneurs have a second chance. This approach is likely to foster entrepreneurship and innovation in Europe, as entrepreneurs operating in an environment that does not stigmatise failure will be more inclined to take on more innovative projects; notes that the legal framework for insolvency must, however, ensure that only responsible risk-taking is encouraged and provide certainty and fairness to creditors;

| 15. | calls on the Commission to monitor thoroughly the effective application by Member States and relevant subnational authorities of the transposition measures of Directive 2011/7/EU on combating late payments in commercial transactions and to initiate swift infringement procedures in case the directive is not properly applied as SMEs are often not in a position to enforce their rights under this directive against a dominant company or public authority; |
| --- | --- |

15.

calls on the Commission to monitor thoroughly the effective application by Member States and relevant subnational authorities of the transposition measures of Directive 2011/7/EU on combating late payments in commercial transactions and to initiate swift infringement procedures in case the directive is not properly applied as SMEs are often not in a position to enforce their rights under this directive against a dominant company or public authority;

| 16. | urges the Commission to apply the ‘Think Small First’ principle, meaning drafting legislation only when it is necessary and with the smallest enterprises in mind. Calls on the Commission to monitor the effective application and introduction of the ‘once only’ principle by the Member States in order to reduce unnecessary administrative burdens for SMEs and citizens; |
| --- | --- |

16.

urges the Commission to apply the ‘Think Small First’ principle, meaning drafting legislation only when it is necessary and with the smallest enterprises in mind. Calls on the Commission to monitor the effective application and introduction of the ‘once only’ principle by the Member States in order to reduce unnecessary administrative burdens for SMEs and citizens;

| 17. | asks the Commission to promote direct participation in business risk and access to innovative instruments for raising venture capital such as crowdfunding; |
| --- | --- |

17.

asks the Commission to promote direct participation in business risk and access to innovative instruments for raising venture capital such as crowdfunding;

| 18. | calls on the Commission to provide better information for SMEs in a more accessible way through the representative SME organisations; |
| --- | --- |

18.

calls on the Commission to provide better information for SMEs in a more accessible way through the representative SME organisations;

In relation to the liberalisation of professional services

| 19. | underlines the importance of further opening up services’ markets in Europe in view of the relatively low level of cross-border trade in services, the growing importance of services as a share of GDP and employment in Europe’s regions and cities and the trend towards more integration of services in the value offer of industry; acknowledges the Commission’s efforts to open up services’ markets within the parameters of the Services Directive, and stresses that moves to further open up services markets should safeguard the legal and quality standards already achieved; |
| --- | --- |

19.

underlines the importance of further opening up services’ markets in Europe in view of the relatively low level of cross-border trade in services, the growing importance of services as a share of GDP and employment in Europe’s regions and cities and the trend towards more integration of services in the value offer of industry; acknowledges the Commission’s efforts to open up services’ markets within the parameters of the Services Directive, and stresses that moves to further open up services markets should safeguard the legal and quality standards already achieved;

| 20. | agrees on the need to assess and tackle on the one hand the regulatory gaps and on the other hand the problem of overlapping or conflicting regulation in certain areas of the Single Market and remove the persistent obstacles to free movement, which prevent European businesses and consumers from exploiting the Single Market’s full potential; |
| --- | --- |

20.

agrees on the need to assess and tackle on the one hand the regulatory gaps and on the other hand the problem of overlapping or conflicting regulation in certain areas of the Single Market and remove the persistent obstacles to free movement, which prevent European businesses and consumers from exploiting the Single Market’s full potential;

| 21. | recommends that the ‘analytical framework for Member States to use when reviewing existing regulations or proposing additional ones’ include criteria for classifying a sector as a ‘priority sector’. Indeed no explanation is given in the Communication as to why certain services should be given priority (4); |
| --- | --- |

21.

recommends that the ‘analytical framework for Member States to use when reviewing existing regulations or proposing additional ones’ include criteria for classifying a sector as a ‘priority sector’. Indeed no explanation is given in the Communication as to why certain services should be given priority (4);

Schengen Agreement

| 22. | As borne out by a recent European Parliament study presented to the Committee on the Internal Market and Consumer Protection, recognises that a lasting suspension of the Schengen Agreement would significantly harm as many as seven economic areas: GDP, trade, foreign direct investment, employment, mobility, consumption and SMEs. Therefore, with a view to safeguarding the single market and the achievements attained over the years, it is crucial that these standards be maintained (5); |
| --- | --- |

22.

As borne out by a recent European Parliament study presented to the Committee on the Internal Market and Consumer Protection, recognises that a lasting suspension of the Schengen Agreement would significantly harm as many as seven economic areas: GDP, trade, foreign direct investment, employment, mobility, consumption and SMEs. Therefore, with a view to safeguarding the single market and the achievements attained over the years, it is crucial that these standards be maintained (5);

In relation to the strengthening of the Single Market for goods

| 23. | supports the Commission’s commitment to modernising the standards’ system in collaboration with the standardisation community, as standards have proven to be very effective in supporting market integration, through their impact on industry costs, interoperability, access to markets and exports; any reform of standards needs to take into account the needs of small and medium-sized producers; |
| --- | --- |

23.

supports the Commission’s commitment to modernising the standards’ system in collaboration with the standardisation community, as standards have proven to be very effective in supporting market integration, through their impact on industry costs, interoperability, access to markets and exports; any reform of standards needs to take into account the needs of small and medium-sized producers;

| 24. | welcomes that on 16 March 2016 the Commission has presented a ‘Communication on the challenges faced by the steel industry’ even if the CoR would have expected the Commission communication on the Single Market to already address the follow-up to the ‘Action Plan for a competitive and sustainable steel industry in Europe’ of June 2013, as the challenges faced by the steel industry relate to many aspects of the Single Market Strategy; draws attention to the fact that the CoR will dedicate a specific opinion to the challenges faced by the steel industry which will in particular build on the European Parliament resolution of 16 December 2015 on developing a sustainable European industry of base metals (6); |
| --- | --- |

24.

welcomes that on 16 March 2016 the Commission has presented a ‘Communication on the challenges faced by the steel industry’ even if the CoR would have expected the Commission communication on the Single Market to already address the follow-up to the ‘Action Plan for a competitive and sustainable steel industry in Europe’ of June 2013, as the challenges faced by the steel industry relate to many aspects of the Single Market Strategy; draws attention to the fact that the CoR will dedicate a specific opinion to the challenges faced by the steel industry which will in particular build on the European Parliament resolution of 16 December 2015 on developing a sustainable European industry of base metals (6);

| 25. | As it has already pointed out in a recent opinion (1), reiterates its call on the Commission to present a legislative proposal for the protection of geographical indications for non-agricultural products in the EU; this would help strengthen the internal market by making products more recognisable and guaranteeing quality; |
| --- | --- |

25.

As it has already pointed out in a recent opinion (1), reiterates its call on the Commission to present a legislative proposal for the protection of geographical indications for non-agricultural products in the EU; this would help strengthen the internal market by making products more recognisable and guaranteeing quality;

| 26. | acknowledges that the mutual recognition principle is crucial for products not covered by EU standards but that its application is uneven and needs to be improved in order to provide a more predictable regulatory framework for the free movement of products. At the same time, however, accurate consumer information on these products should be guaranteed, high-quality products should be properly recognised and the products’ origin should be indicated; |
| --- | --- |

26.

acknowledges that the mutual recognition principle is crucial for products not covered by EU standards but that its application is uneven and needs to be improved in order to provide a more predictable regulatory framework for the free movement of products. At the same time, however, accurate consumer information on these products should be guaranteed, high-quality products should be properly recognised and the products’ origin should be indicated;

| 27. | underlines its support for measures to keep illegal and non-compliant products off the EU market in view of the increasing incidence of such trade, which distorts competition and puts consumers at risk. A stricter monitoring of counterfeiting activities would give a practical content to the goal of ‘creating opportunities to consumers, professionals and businesses’, in particular for SMEs; |
| --- | --- |

27.

underlines its support for measures to keep illegal and non-compliant products off the EU market in view of the increasing incidence of such trade, which distorts competition and puts consumers at risk. A stricter monitoring of counterfeiting activities would give a practical content to the goal of ‘creating opportunities to consumers, professionals and businesses’, in particular for SMEs;

In relation to public procurement

| 28. | welcomes the general approach set out in the Communication in relation to public procurement; supports more specifically networking between first-instance review bodies, technical assistance for Member States and improved monitoring tools, which should also help local and regional authorities in implementing public procurement rules; in this regard points out the possible role of knowledge centres in the field of public procurement as sources of help, advice and information; |
| --- | --- |

28.

welcomes the general approach set out in the Communication in relation to public procurement; supports more specifically networking between first-instance review bodies, technical assistance for Member States and improved monitoring tools, which should also help local and regional authorities in implementing public procurement rules; in this regard points out the possible role of knowledge centres in the field of public procurement as sources of help, advice and information;

| 29. | also agrees with the principle of launching a voluntary ex ante public procurement mechanism for large-scale infrastructure projects but wonders why the Commission has set such a high ceiling of EUR 700 million. suggests therefore that the ceiling be significantly lowered in particular against the backdrop of the European Court of Auditors’ special report 10/2015 on ‘Efforts to address problems with public procurement in EU Cohesion expenditure should be intensified’; |
| --- | --- |

29.

also agrees with the principle of launching a voluntary ex ante public procurement mechanism for large-scale infrastructure projects but wonders why the Commission has set such a high ceiling of EUR 700 million. suggests therefore that the ceiling be significantly lowered in particular against the backdrop of the European Court of Auditors’ special report 10/2015 on ‘Efforts to address problems with public procurement in EU Cohesion expenditure should be intensified’;

| 30. | does however urge that the contract registers and data analytics tools planned by the Commission for transparency purposes be designed in such a way that they do not generate any further costs for public purchasers. The European Commission already has a considerable amount of data on this, because whatever procurement lies above the threshold has to be EU-wide, so further-reaching EU-wide information and statistics requirements would be superfluous; |
| --- | --- |

30.

does however urge that the contract registers and data analytics tools planned by the Commission for transparency purposes be designed in such a way that they do not generate any further costs for public purchasers. The European Commission already has a considerable amount of data on this, because whatever procurement lies above the threshold has to be EU-wide, so further-reaching EU-wide information and statistics requirements would be superfluous;

In relation to the Services and the Services Directive

| 31. | welcomes the Commission’s efforts to continuously assess EU countries’ implementation of the Services Directive and carry out a number of evaluation exercises (‘peer reviews’) in order to remove remaining barriers to the cross-border trade of services in the EU, with particular focus on the issue of geo-blocking of digital services; considers, however, that the outcome of these exercises should not be precluded by the Commission stating that there are no plans to review or amend the Services Directive; |
| --- | --- |

31.

welcomes the Commission’s efforts to continuously assess EU countries’ implementation of the Services Directive and carry out a number of evaluation exercises (‘peer reviews’) in order to remove remaining barriers to the cross-border trade of services in the EU, with particular focus on the issue of geo-blocking of digital services; considers, however, that the outcome of these exercises should not be precluded by the Commission stating that there are no plans to review or amend the Services Directive;

| 32. | recalls that Points of Single Contact (PSC) are an essential element of the Services Directive. However, several aspects that are closely related to the provision of services are not covered by the directive (e.g. posting of workers, tax issues, social security provisions, professional qualifications). These aspects should nevertheless be included in the information service of the PSC in order to provide one-stop-shops with real added value. Furthermore, it would be important to provide the information at least in English in addition to the national language; |
| --- | --- |

32.

recalls that Points of Single Contact (PSC) are an essential element of the Services Directive. However, several aspects that are closely related to the provision of services are not covered by the directive (e.g. posting of workers, tax issues, social security provisions, professional qualifications). These aspects should nevertheless be included in the information service of the PSC in order to provide one-stop-shops with real added value. Furthermore, it would be important to provide the information at least in English in addition to the national language;

| 33. | considers that the services passport initiative should be limited to services regulated by Directive 2006/123/EC on services in the internal market, i.e. not be applicable to public service operators as long as they do not carry out commercial activities or to services which do not have cross-border impact and are subject to regulation at national, regional or local level; |
| --- | --- |

33.

considers that the services passport initiative should be limited to services regulated by Directive 2006/123/EC on services in the internal market, i.e. not be applicable to public service operators as long as they do not carry out commercial activities or to services which do not have cross-border impact and are subject to regulation at national, regional or local level;

| 34. | welcomes the Commission’s initiative to prevent discrimination against users and firms in cross-border trade, particularly online trade; insists however that certain advantages, namely lower prices, which are not relevant for the single market, can be reserved for certain service beneficiaries, if this is based on legitimate, objective criteria; |
| --- | --- |

34.

welcomes the Commission’s initiative to prevent discrimination against users and firms in cross-border trade, particularly online trade; insists however that certain advantages, namely lower prices, which are not relevant for the single market, can be reserved for certain service beneficiaries, if this is based on legitimate, objective criteria;

In relation to the Social Economy and Services of General Economic Interest (SGEI)

| 35. | regrets that the Commission’s Communication does not announce any proposal in relation to the social economy although it plays a key role in the EU’s social and economic development, accounting for two million enterprises including associations, cooperatives and mutual societies and providing 11 million jobs, i.e. 10 % of all businesses in Europe and 6 % of the employed population; recalls against this background that the CoR has ‘(urged) the European Commission to present, a legal framework, which would encompass a body of common definitions applying to the different forms of social economy in Europe, i.e. cooperatives, foundations, mutual societies and associations in order to enable social economy enterprises to operate on a legally certain basis and thus enjoy the advantages of the internal market and free movement (...)’ (2); |
| --- | --- |

35.

regrets that the Commission’s Communication does not announce any proposal in relation to the social economy although it plays a key role in the EU’s social and economic development, accounting for two million enterprises including associations, cooperatives and mutual societies and providing 11 million jobs, i.e. 10 % of all businesses in Europe and 6 % of the employed population; recalls against this background that the CoR has ‘(urged) the European Commission to present, a legal framework, which would encompass a body of common definitions applying to the different forms of social economy in Europe, i.e. cooperatives, foundations, mutual societies and associations in order to enable social economy enterprises to operate on a legally certain basis and thus enjoy the advantages of the internal market and free movement (...)’ (2);

| 36. | considers that the social economy should be supported by means of a general legal framework at European level as well as by developing appropriate financing programmes; |
| --- | --- |

36.

considers that the social economy should be supported by means of a general legal framework at European level as well as by developing appropriate financing programmes;

| 37. | regrets that the Commission’s Communication does not put forward any proposal relating to SGEI, e.g. in relation to quality requirements notably with regard to social and territorial cohesion, although Article 14 of the Treaty on the Functioning of the EU would provide the legal basis for it; expresses concern that, with regard to SGEI, the Commission has a focus that is restricted to state aid issues only although these services play a key role in the internal market. Insists that in the provision of SGEI, it is of paramount importance that the public service obligations are based on transparent guidelines and effective controls and aim at delivering high-quality and cost-effective services; therefore, in accordance with the distribution of competences between the EU, the Member States, the regions and the local and regional authorities, calls on the Commission to step up its efforts to spur on SGEI within the EU, so as to improve Europeans’ quality of life at every level; |
| --- | --- |

37.

regrets that the Commission’s Communication does not put forward any proposal relating to SGEI, e.g. in relation to quality requirements notably with regard to social and territorial cohesion, although Article 14 of the Treaty on the Functioning of the EU would provide the legal basis for it; expresses concern that, with regard to SGEI, the Commission has a focus that is restricted to state aid issues only although these services play a key role in the internal market. Insists that in the provision of SGEI, it is of paramount importance that the public service obligations are based on transparent guidelines and effective controls and aim at delivering high-quality and cost-effective services; therefore, in accordance with the distribution of competences between the EU, the Member States, the regions and the local and regional authorities, calls on the Commission to step up its efforts to spur on SGEI within the EU, so as to improve Europeans’ quality of life at every level;

| 38. | notes that the implementation as of April 2016 of the common framework for the provision of concessions is particularly sensitive in the field of infrastructural services (ports, railways, highways) and key to completing the Single Market as fair competition is a prerequisite to better guarantee consumer rights and maximise the benefits for consumers, the mandated undertakings and the conceding authority; |
| --- | --- |

38.

notes that the implementation as of April 2016 of the common framework for the provision of concessions is particularly sensitive in the field of infrastructural services (ports, railways, highways) and key to completing the Single Market as fair competition is a prerequisite to better guarantee consumer rights and maximise the benefits for consumers, the mandated undertakings and the conceding authority;

| 39. | calls for the insular or remote nature of regions to be borne in mind with regard to commercial disadvantages, especially in terms of the additional transport costs. |
| --- | --- |

39.

calls for the insular or remote nature of regions to be borne in mind with regard to commercial disadvantages, especially in terms of the additional transport costs.

Brussels, 8 April 2016.

The President of the European Committee of the Regions

Markku MARKKULA

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(1)  See CoR opinion of 7-8 April 2016 on the Follow-Up to the Five Presidents’ report: Completing Europe’s Economic and Monetary Union.

1

(2)  See European Parliament resolution on the Single Market governance within the European Semester 2016 (2015/2256(INI)).

2

(3)  CoR opinion on Territorial Vision 2050, what future? CDR-2015-4285 of 3 December 2015.

3

(4)  The list of priority sectors/professions is reported in footnote 26: ‘civil engineers, architects, accountants, lawyers, real estate agents, tourist guides and patent agents’.

4

(5)  As underscored in CoR resolution COR-2016-00726-RES.

5

(6)  http://www.europarl.europa.eu/sides/getDoc.do?pubRef=/EP//TEXT+TA+P8-TA-2015-0460+0+DOC+XML+V0//EN&language=

6

(1)  Committee of the Regions opinion ECOS-V-064 on Extending geographical indication protection to non-agricultural products (COR-2014-05386-AC), adopted on 11 February 2015.

1

(2)  See CoR Opinion on the role of the social economy in restoring economic growth and combating unemployment, 3-4 December 2015, point 12.

2

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III Preparatory acts

COMMITTEE OF THE REGIONS

117th plenary session, 7-8 April 2016

| 1.7.2016 | EN | Official Journal of the European Union | C 240/49 |
| --- | --- | --- | --- |

1.7.2016

EN

Official Journal of the European Union

C 240/49

---

Opinion of the European Committee of the Regions — Structural Reform Support Programme for the period 2017 to 2020

(2016/C 240/09)

| Rapporteur: | Olga ZRIHEN (BE/PES), Member of the Walloon Parliament |
| --- | --- |
| Reference document: | Proposal for a Regulation of the European Parliament and of the Council on the establishment of the Structural Reform Support Programme for the period 2017 to 2020 and amending Regulations (EU) No 1303/2013 and (EU) No 1305/2013
  COM(2015) 701 final |

Rapporteur:

Olga ZRIHEN (BE/PES), Member of the Walloon Parliament

Reference document:

Proposal for a Regulation of the European Parliament and of the Council on the establishment of the Structural Reform Support Programme for the period 2017 to 2020 and amending Regulations (EU) No 1303/2013 and (EU) No 1305/2013

COM(2015) 701 final

I.   RECOMMENDATIONS FOR AMENDMENTS

Amendment 1

Recital 4

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Reforms are by their very nature complex processes that require a complete chain of highly-specialised knowledge and skills. Addressing structural reforms in a variety of public policy areas is challenging since their benefits often take time to materialise. Therefore, early and efficient design and implementation is crucial, be it for crisis-struck or structurally-weak economies. In this context, the provision of support by the Union in the form of technical assistance
  has been crucial in supporting
  the economic adjustment of Greece and Cyprus in the last years. | Reforms are by their very nature complex processes that require
  political will, the ability to engage in dialogue and multi-level cooperation, budgetary and administrative resources, and
  a complete chain of highly-specialised knowledge and skills. Addressing structural reforms in a variety of public policy areas is challenging since their benefits often take time to materialise. Therefore, early and efficient design and implementation is crucial, be it for crisis-struck or structurally-weak economies. In this context, the provision of support by the Union in the form of technical assistance
  must take into account the lessons learned from the programmes that aimed to support
  the economic adjustment of Greece and Cyprus in the last years.
  Ownership of structural reforms on the ground, in particular through local and regional authorities and the social partners, is essential for the Programme to be successful. |

Text proposed by the Commission

CoR amendment

Reforms are by their very nature complex processes that require a complete chain of highly-specialised knowledge and skills. Addressing structural reforms in a variety of public policy areas is challenging since their benefits often take time to materialise. Therefore, early and efficient design and implementation is crucial, be it for crisis-struck or structurally-weak economies. In this context, the provision of support by the Union in the form of technical assistance
  has been crucial in supporting
  the economic adjustment of Greece and Cyprus in the last years.

Reforms are by their very nature complex processes that require
  political will, the ability to engage in dialogue and multi-level cooperation, budgetary and administrative resources, and
  a complete chain of highly-specialised knowledge and skills. Addressing structural reforms in a variety of public policy areas is challenging since their benefits often take time to materialise. Therefore, early and efficient design and implementation is crucial, be it for crisis-struck or structurally-weak economies. In this context, the provision of support by the Union in the form of technical assistance
  must take into account the lessons learned from the programmes that aimed to support
  the economic adjustment of Greece and Cyprus in the last years.
  Ownership of structural reforms on the ground, in particular through local and regional authorities and the social partners, is essential for the Programme to be successful.

Reason

Special Report No 19/2015 of the European Court of Auditors (1) on the technical assistance provided to Greece provides some useful lessons regarding possible improvements in terms of technical assistance intended to improve a beneficiary Member State’s economic adjustment.

Amendment 2

Recital 5

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Member States may benefit from support in addressing challenges as regards the design and implementation of structural reforms. These challenges may be dependent on various factors, including limited administrative and institutional capacity or inadequate application and implementation of Union legislation. | Member States may benefit from support in addressing challenges as regards the design and implementation of structural reforms. These challenges may be dependent on various factors, including limited administrative and institutional capacity
  at different levels of government
  or inadequate application and implementation of Union legislation. |

Text proposed by the Commission

CoR amendment

Member States may benefit from support in addressing challenges as regards the design and implementation of structural reforms. These challenges may be dependent on various factors, including limited administrative and institutional capacity or inadequate application and implementation of Union legislation.

Member States may benefit from support in addressing challenges as regards the design and implementation of structural reforms. These challenges may be dependent on various factors, including limited administrative and institutional capacity
  at different levels of government
  or inadequate application and implementation of Union legislation.

Amendment 3

Recital 6

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The Union has a long-lasting experience on providing specific support to national administrations and other authorities of Member States as regards capacity building and similar actions in certain sectors (e.g. taxation, customs, support to small and medium-sized enterprises) and in relation to the implementation of cohesion policy.
  The experience gained by the Union in assisting national authorities carrying out reforms should be used
  in order to enhance the capacity of the Union to provide support to Member States
  .
  Comprehensive and integrated action is indeed necessary in order
  to
  provide
  support
  to
  those Member States that are undertaking
  growth-enhancing
  reforms and request assistance from the Union in this respect. | The experience gained by the Union in assisting national
  and/or subnational
  authorities carrying out reforms
  related to capacity building in national administrations, local and regional authorities and other Member State authorities, and similar actions in certain sectors (e.g. taxation, customs, support to small- and medium-sized enterprises),
  should be used.
  Action
  to support those Member States that are undertaking reforms
  to enhance sustainable growth, social well-being, and the accessibility of healthcare and education,
  and
  that
  request assistance from the Union in this respect
  , might be necessary if these reforms are not already eligible for other technical assistance programmes
  .
  These support measures will be based on an integrated approach, taking into account the links between the different areas of structural reforms, and the ability of all levels of government to work together as partners – while respecting each Member State’s institutional framework and also involving all stakeholders. |

Text proposed by the Commission

CoR amendment

The Union has a long-lasting experience on providing specific support to national administrations and other authorities of Member States as regards capacity building and similar actions in certain sectors (e.g. taxation, customs, support to small and medium-sized enterprises) and in relation to the implementation of cohesion policy.
  The experience gained by the Union in assisting national authorities carrying out reforms should be used
  in order to enhance the capacity of the Union to provide support to Member States
  .
  Comprehensive and integrated action is indeed necessary in order
  to
  provide
  support
  to
  those Member States that are undertaking
  growth-enhancing
  reforms and request assistance from the Union in this respect.

The experience gained by the Union in assisting national
  and/or subnational
  authorities carrying out reforms
  related to capacity building in national administrations, local and regional authorities and other Member State authorities, and similar actions in certain sectors (e.g. taxation, customs, support to small- and medium-sized enterprises),
  should be used.
  Action
  to support those Member States that are undertaking reforms
  to enhance sustainable growth, social well-being, and the accessibility of healthcare and education,
  and
  that
  request assistance from the Union in this respect
  , might be necessary if these reforms are not already eligible for other technical assistance programmes
  .
  These support measures will be based on an integrated approach, taking into account the links between the different areas of structural reforms, and the ability of all levels of government to work together as partners – while respecting each Member State’s institutional framework and also involving all stakeholders.

Amendment 4

Recital 8

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Support under the Programme should be provided by the Commission upon request by a Member State, in areas such as
  budget and taxation, public function, institutional and administrative reforms,
  the justice system, anti-fraud, anti-corruption and anti-money laundering, business environment, private sector development, investment, competition, public procurement,
  privatization processes,
  access to finance, investment, trade, sustainable development, innovation, education and training, labour policies, public health,
  asylum, migration policies, agriculture and rural development
  and financial sector policies. | Support under the Programme should be provided by the Commission upon request by a Member State, in areas
  that fall under the competences shared between the Union and the Member States and that are not already targeted by a technical assistance programme,
  such as
  the administrative capacity of the public service,
  the justice system
  and the rule of law, taxation
  , anti-fraud, anti-corruption and anti-money laundering, business environment, private sector development, investment, competition, public procurement
  , privatisation or (re-)nationalisation or (re-)municipalisation processes
  , access to finance, investment, trade, sustainable development, innovation, education and training, labour policies, public health, and financial sector policies.
  Member States wishing to benefit from the Programme must bring local and regional authorities, as well as the social partners, civil society and other stakeholders, into the process of drawing up the application, based on the code of conduct on partnership in force with regard to cohesion policy. |

Text proposed by the Commission

CoR amendment

Support under the Programme should be provided by the Commission upon request by a Member State, in areas such as
  budget and taxation, public function, institutional and administrative reforms,
  the justice system, anti-fraud, anti-corruption and anti-money laundering, business environment, private sector development, investment, competition, public procurement,
  privatization processes,
  access to finance, investment, trade, sustainable development, innovation, education and training, labour policies, public health,
  asylum, migration policies, agriculture and rural development
  and financial sector policies.

Support under the Programme should be provided by the Commission upon request by a Member State, in areas
  that fall under the competences shared between the Union and the Member States and that are not already targeted by a technical assistance programme,
  such as
  the administrative capacity of the public service,
  the justice system
  and the rule of law, taxation
  , anti-fraud, anti-corruption and anti-money laundering, business environment, private sector development, investment, competition, public procurement
  , privatisation or (re-)nationalisation or (re-)municipalisation processes
  , access to finance, investment, trade, sustainable development, innovation, education and training, labour policies, public health, and financial sector policies.
  Member States wishing to benefit from the Programme must bring local and regional authorities, as well as the social partners, civil society and other stakeholders, into the process of drawing up the application, based on the code of conduct on partnership in force with regard to cohesion policy.

Reason

It would be illogical for EU funds to finance technical assistance in areas that do not fall under the competences shared between the Union and the Member States. The partnership principle will guarantee the effectiveness of the technical assistance provided by the programme due to ownership on the ground.

Amendment 5

Recital 10

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Further to a dialogue with the requesting Member State, including in the context of the European Semester, the Commission should analyse the request, taking into account the principles of transparency, equal treatment and sound financial management and determine the support to be provided based on urgency, breadth and depth of the problems as identified, support needs in respect of the policy areas envisaged, analysis of socioeconomic indicators, and the general administrative capacity of the Member State. The Commission should also, in close cooperation with the Member State concerned, identify the priority areas, the scope of the support measures to be provided and the global financial contribution for such support, taking into account the existing actions and measures financed by Union funds or other Union programmes. | Further to a dialogue with the requesting Member State, including in the context of the European Semester, the Commission should analyse the request, taking into account the principles of
  subsidiarity,
  transparency, equal treatment
  , partnership
  and sound financial management and determine the support to be provided based on urgency, breadth and depth of the problems as identified, support needs in respect of the policy areas envisaged, analysis of socioeconomic indicators, and the general administrative capacity of the Member State.
  With a view to the entry into force of the Programme, the Union will draw up a single strategic document to improve the institutional and administrative capacity of public authorities at all levels of government, transparently and fairly setting criteria to be adopted so as to determine which measures under the Programme are to be prioritised and how available resources are to be allocated, as well as criteria and mechanisms to coordinate measures at Union, national, regional and local level.
  The Commission should also, in close cooperation with the Member State concerned, identify the priority areas, the scope of the support measures to be provided and the global financial contribution for such support, taking into account the existing actions and measures financed by Union funds or other Union programmes
  ; in so doing, the Commission and the Member State concerned will take into account the current division of powers between the different levels of government – which often provides for an important role for local and regional authorities – as well as the fact that some Country Specific Recommendations are addressed to local and regional authorities. |

Text proposed by the Commission

CoR amendment

Further to a dialogue with the requesting Member State, including in the context of the European Semester, the Commission should analyse the request, taking into account the principles of transparency, equal treatment and sound financial management and determine the support to be provided based on urgency, breadth and depth of the problems as identified, support needs in respect of the policy areas envisaged, analysis of socioeconomic indicators, and the general administrative capacity of the Member State. The Commission should also, in close cooperation with the Member State concerned, identify the priority areas, the scope of the support measures to be provided and the global financial contribution for such support, taking into account the existing actions and measures financed by Union funds or other Union programmes.

Further to a dialogue with the requesting Member State, including in the context of the European Semester, the Commission should analyse the request, taking into account the principles of
  subsidiarity,
  transparency, equal treatment
  , partnership
  and sound financial management and determine the support to be provided based on urgency, breadth and depth of the problems as identified, support needs in respect of the policy areas envisaged, analysis of socioeconomic indicators, and the general administrative capacity of the Member State.
  With a view to the entry into force of the Programme, the Union will draw up a single strategic document to improve the institutional and administrative capacity of public authorities at all levels of government, transparently and fairly setting criteria to be adopted so as to determine which measures under the Programme are to be prioritised and how available resources are to be allocated, as well as criteria and mechanisms to coordinate measures at Union, national, regional and local level.
  The Commission should also, in close cooperation with the Member State concerned, identify the priority areas, the scope of the support measures to be provided and the global financial contribution for such support, taking into account the existing actions and measures financed by Union funds or other Union programmes
  ; in so doing, the Commission and the Member State concerned will take into account the current division of powers between the different levels of government – which often provides for an important role for local and regional authorities – as well as the fact that some Country Specific Recommendations are addressed to local and regional authorities.

Reason

The partnership principle is one of the cornerstones of the governance of the European Structural and Investment Funds, which are to provide the funds to finance the structural reform support programme. By analogy, therefore, it is consistent to apply the partnership principle to the structural reform support programme as well.

Amendment 6

Recital 11

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The Commission Communications ‘The EU Budget Review’ (2) and ‘A budget for Europe 2020’ (3) underline the importance of focusing funding on activities with clear European added value, i.e. where the Union intervention can bring additional value compared to action of Member States alone. Against this background, the support actions carried out under the Programme should ensure complementarity and synergy with other programmes and policies at national, Union and international level. The actions under the Programme should allow elaborating and implementing solutions that address national challenges which have impact on cross-border or Union-wide challenges and achieve a consistent and coherent implementation of Union law. In addition, they should contribute to further develop trust and promote cooperation with the Commission and among Member States. Moreover, the Union is in a better position than Member States to provide a platform for the provision and sharing of good practices from peers as well as to mobilise expertise. | The Commission Communications ‘The EU Budget Review’ (4) and ‘A budget for Europe 2020’ (5) underline the importance of focusing funding on activities with clear European added value, i.e. where the Union intervention can bring additional value compared to action of Member States alone. Against this background, the support actions carried out under the Programme should ensure complementarity and synergy with other programmes and policies at national,
  regional, local,
  Union and international level. The actions under the Programme should allow elaborating and implementing solutions that address national challenges which have impact on cross-border or Union-wide challenges and achieve a consistent and coherent implementation of Union law. In addition, they should contribute to further develop trust and promote cooperation with the Commission and among Member States. Moreover, the Union is in a better position than Member States to provide a platform for the provision and sharing of good practices from peers as well as to mobilise expertise
  so as to develop solutions tailored to the specific situation in the requesting Member States
  . |

Text proposed by the Commission

CoR amendment

The Commission Communications ‘The EU Budget Review’ (2) and ‘A budget for Europe 2020’ (3) underline the importance of focusing funding on activities with clear European added value, i.e. where the Union intervention can bring additional value compared to action of Member States alone. Against this background, the support actions carried out under the Programme should ensure complementarity and synergy with other programmes and policies at national, Union and international level. The actions under the Programme should allow elaborating and implementing solutions that address national challenges which have impact on cross-border or Union-wide challenges and achieve a consistent and coherent implementation of Union law. In addition, they should contribute to further develop trust and promote cooperation with the Commission and among Member States. Moreover, the Union is in a better position than Member States to provide a platform for the provision and sharing of good practices from peers as well as to mobilise expertise.

The Commission Communications ‘The EU Budget Review’ (4) and ‘A budget for Europe 2020’ (5) underline the importance of focusing funding on activities with clear European added value, i.e. where the Union intervention can bring additional value compared to action of Member States alone. Against this background, the support actions carried out under the Programme should ensure complementarity and synergy with other programmes and policies at national,
  regional, local,
  Union and international level. The actions under the Programme should allow elaborating and implementing solutions that address national challenges which have impact on cross-border or Union-wide challenges and achieve a consistent and coherent implementation of Union law. In addition, they should contribute to further develop trust and promote cooperation with the Commission and among Member States. Moreover, the Union is in a better position than Member States to provide a platform for the provision and sharing of good practices from peers as well as to mobilise expertise
  so as to develop solutions tailored to the specific situation in the requesting Member States
  .

Amendment 7

Recital 21

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| In order to adapt the list of indicators measuring the achievement of the objectives of the Programme, in the light of experience during the implementation of the Programme, the power to adopt delegated acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the amendment of the list. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work,
  including at expert level
  . The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council. | In order to adapt the list of indicators measuring the achievement of the objectives of the Programme, in the light of experience during the implementation of the Programme, the power to adopt delegated acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the amendment of the list. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work,
  involving – in accordance with the partnership principle – the relevant local and regional authorities, social partners and civil society players
  . The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to
  the Committee of the Regions,
  the European Parliament and to the Council. |

Text proposed by the Commission

CoR amendment

In order to adapt the list of indicators measuring the achievement of the objectives of the Programme, in the light of experience during the implementation of the Programme, the power to adopt delegated acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the amendment of the list. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work,
  including at expert level
  . The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council.

In order to adapt the list of indicators measuring the achievement of the objectives of the Programme, in the light of experience during the implementation of the Programme, the power to adopt delegated acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the amendment of the list. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work,
  involving – in accordance with the partnership principle – the relevant local and regional authorities, social partners and civil society players
  . The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to
  the Committee of the Regions,
  the European Parliament and to the Council.

Amendment 8

Article 3(1)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The Programme shall finance actions
  with
  European added value. To that effect, the Commission shall ensure that actions selected for funding are likely to produce results with European added value and shall monitor whether European added value is actually achieved. | The Programme shall finance
  technical assistance
  actions
  that have, in accordance with the principle of subsidiarity,
  European added value
  , and that fall under the competences shared between the Union and the Member States and are not already targeted by a technical assistance programme
  . To that effect, the Commission shall ensure that actions selected for funding are likely to produce results with European added value and shall monitor whether European added value is actually achieved. |

Text proposed by the Commission

CoR amendment

The Programme shall finance actions
  with
  European added value. To that effect, the Commission shall ensure that actions selected for funding are likely to produce results with European added value and shall monitor whether European added value is actually achieved.

The Programme shall finance
  technical assistance
  actions
  that have, in accordance with the principle of subsidiarity,
  European added value
  , and that fall under the competences shared between the Union and the Member States and are not already targeted by a technical assistance programme
  . To that effect, the Commission shall ensure that actions selected for funding are likely to produce results with European added value and shall monitor whether European added value is actually achieved.

Reason

Using the EU budget to fund national measures over which the EU has no jurisdiction would go against the spirit of the principle of subsidiarity.

Amendment 9

Article 3(2)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Actions and activities of the Programme shall ensure European added value in particular through: | Actions and activities of the Programme shall ensure European added value in particular through: |
| (a) | the development and implementation of solutions that address
  national
  challenges which have impact on cross-border or Union-wide challenges; |

Text proposed by the Commission

CoR amendment

Actions and activities of the Programme shall ensure European added value in particular through:

Actions and activities of the Programme shall ensure European added value in particular through:

(a)

the development and implementation of solutions that address
  national
  challenges which have impact on cross-border or Union-wide challenges;

| (a) | the development and implementation of solutions that address challenges which have impact on cross-border or Union-wide challenges; |
| --- | --- |

(a)

the development and implementation of solutions that address challenges which have impact on cross-border or Union-wide challenges;

| (b) | their complementarity and synergy with other Union programmes and policies at national, Union and international level; |
| --- | --- |

(b)

their complementarity and synergy with other Union programmes and policies at national, Union and international level;

| (b) | their complementarity and synergy with other Union programmes and policies at national,
  regional, local,
  Union and international level; |
| --- | --- |

(b)

their complementarity and synergy with other Union programmes and policies at national,
  regional, local,
  Union and international level;

| (c) | their contribution to the consistent and coherent implementation of Union law; |
| --- | --- |

(c)

their contribution to the consistent and coherent implementation of Union law;

| (c) | their contribution to the consistent and coherent implementation of Union law; |
| --- | --- |

(c)

their contribution to the consistent and coherent implementation of Union law;

| (d) | their contribution to the sharing of good practices and to building a Union-wide platform and network of expertise; |
| --- | --- |

(d)

their contribution to the sharing of good practices and to building a Union-wide platform and network of expertise;

| (d) | their contribution to the sharing of good practices and to building a Union-wide platform and network of expertise; |
| --- | --- |

(d)

their contribution to the sharing of good practices and to building a Union-wide platform and network of expertise;

| (e) | the promotion of mutual trust between Beneficiary Member States and the Commission and cooperation among Member States. |
| --- | --- |

(e)

the promotion of mutual trust between Beneficiary Member States and the Commission and cooperation among Member States.

Reason

Trust between Member States and the Commission cannot be reduced to the implementation of this programme – it is a general principle of how the European Union operates and is necessary for it to function.

Amendment 10

Article 4

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The general objective of the Programme shall be to contribute to
  institutional, administrative and
  structural reforms in the Member States by providing support to
  national
  authorities
  for
  measures aimed at reforming
  institutions, governance, administration,
  economic and social sectors in response to economic and social challenges with a view to enhancing competitiveness, growth, jobs,
  and
  investment,
  in particular in the context of economic governance processes
  , including through assistance for the efficient and effective use of the Union funds. | The general objective of the Programme shall be to contribute to structural reforms in the Member States
  that bring European added value in policy areas relating to competences shared between the Union and the Member States and that are not already targeted by a technical assistance programme,
  by providing support to
  Member States’ public
  authorities
  to attain the administrative capacity necessary to design and implement
  measures aimed at reforming economic and social sectors in response to economic and social challenges with a view to enhancing competitiveness,
  sustainable
  growth, jobs, investment,
  and economic, social and territorial cohesion,
  including through assistance for the efficient and effective use of the Union funds
  , involving all levels of government
  . |

Text proposed by the Commission

CoR amendment

The general objective of the Programme shall be to contribute to
  institutional, administrative and
  structural reforms in the Member States by providing support to
  national
  authorities
  for
  measures aimed at reforming
  institutions, governance, administration,
  economic and social sectors in response to economic and social challenges with a view to enhancing competitiveness, growth, jobs,
  and
  investment,
  in particular in the context of economic governance processes
  , including through assistance for the efficient and effective use of the Union funds.

The general objective of the Programme shall be to contribute to structural reforms in the Member States
  that bring European added value in policy areas relating to competences shared between the Union and the Member States and that are not already targeted by a technical assistance programme,
  by providing support to
  Member States’ public
  authorities
  to attain the administrative capacity necessary to design and implement
  measures aimed at reforming economic and social sectors in response to economic and social challenges with a view to enhancing competitiveness,
  sustainable
  growth, jobs, investment,
  and economic, social and territorial cohesion,
  including through assistance for the efficient and effective use of the Union funds
  , involving all levels of government
  .

Reason

Clarification in line with the proposed legislative amendments to Articles 3(1) and 3(2), and Recital 9.

Amendment 11

Article 5(1)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| To achieve the general objective set out in Article 4, the Programme shall have the following specific objectives: | To achieve the general objective set out in Article 4, the Programme shall have the following specific objectives: |
| (a) | to assist the initiatives of
  national
  authorities to design their reforms according to priorities, taking into account initial conditions and expected socioeconomic impacts; |

Text proposed by the Commission

CoR amendment

To achieve the general objective set out in Article 4, the Programme shall have the following specific objectives:

To achieve the general objective set out in Article 4, the Programme shall have the following specific objectives:

(a)

to assist the initiatives of
  national
  authorities to design their reforms according to priorities, taking into account initial conditions and expected socioeconomic impacts;

| (a) | to assist the initiatives of
  public
  authorities to design their reforms according to priorities, taking into account initial conditions and expected socioeconomic impacts; |
| --- | --- |

(a)

to assist the initiatives of
  public
  authorities to design their reforms according to priorities, taking into account initial conditions and expected socioeconomic impacts;

| (b) | to support the
  national
  authorities to enhance their capacity to formulate, develop and implement reform policies and strategies and pursue an integrated approach ensuring consistency between goals and means across sectors; |
| --- | --- |

(b)

to support the
  national
  authorities to enhance their capacity to formulate, develop and implement reform policies and strategies and pursue an integrated approach ensuring consistency between goals and means across sectors;

| (b) | to support the
  public
  authorities to enhance their capacity to formulate, develop and implement reform policies and strategies and pursue an integrated approach ensuring consistency between goals and means across sectors; |
| --- | --- |

(b)

to support the
  public
  authorities to enhance their capacity to formulate, develop and implement reform policies and strategies and pursue an integrated approach ensuring consistency between goals and means across sectors;

| (c) | to support the efforts of
  national
  authorities to define and implement appropriate processes and methodologies by taking into account good practices and lessons learned by other countries in addressing
  similar
  situations; |
| --- | --- |

(c)

to support the efforts of
  national
  authorities to define and implement appropriate processes and methodologies by taking into account good practices and lessons learned by other countries in addressing
  similar
  situations;

| (c) | to support the efforts of
  public
  authorities to define and implement appropriate processes and methodologies by taking into account good practices and lessons learned by other countries in addressing situations
  with some similarities
  ; |
| --- | --- |

(c)

to support the efforts of
  public
  authorities to define and implement appropriate processes and methodologies by taking into account good practices and lessons learned by other countries in addressing situations
  with some similarities
  ;

| (d) | to assist the
  national
  authorities to enhance the efficiency and effectiveness of human resources management, where appropriate, through definition of clear responsibilities and increase of professional knowledge and skills. |
| --- | --- |

(d)

to assist the
  national
  authorities to enhance the efficiency and effectiveness of human resources management, where appropriate, through definition of clear responsibilities and increase of professional knowledge and skills.

| (d) | to assist the
  public
  authorities to enhance the efficiency and effectiveness of human resources management, where appropriate, through definition of clear responsibilities and increase of professional knowledge and skills
  , especially within the framework of any collective bargaining agreements (CBA) concluded as part of the national and/or regional social consultation process; |
| --- | --- |

(d)

to assist the
  public
  authorities to enhance the efficiency and effectiveness of human resources management, where appropriate, through definition of clear responsibilities and increase of professional knowledge and skills
  , especially within the framework of any collective bargaining agreements (CBA) concluded as part of the national and/or regional social consultation process;

| (e) | to assist public authorities to enhance their capacity to work with each other as partners, as well as with stakeholders, especially the social partners and private economic players. |
| --- | --- |

(e)

to assist public authorities to enhance their capacity to work with each other as partners, as well as with stakeholders, especially the social partners and private economic players.

These objectives shall be pursued
  in close cooperation with
  Beneficiary Member States.

These objectives shall be pursued
  upon the request of
  Beneficiary Member States
  , and in close cooperation with them, as well as with local and regional authorities, according to the division of powers and competences in force in each Member State, and the Country Specific Recommendations addressed to local and regional authorities.

Reason

Structural reforms are not the preserve of national authorities, least of all in Member States with a federal structure. Indeed, several Country Specific Recommendations are addressed to regional and local authorities. Moreover, it is worth noting that the programme only comes into play upon the request of beneficiary Member States.

Amendment 12

Article 5(2)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The specific objectives set out in paragraph 1 shall refer to policy areas related to competitiveness, growth, jobs
  and
  investment, in particular to the following: | The specific objectives set out in paragraph 1 shall refer to policy areas related to competitiveness,
  sustainable
  growth, jobs, investment,
  and economic, social and territorial cohesion, and that are among the goals of the Europe 2020 strategy,
  in particular to the following: |
| (a) | public financial management, budget process, debt management and revenue administration; |

Text proposed by the Commission

CoR amendment

The specific objectives set out in paragraph 1 shall refer to policy areas related to competitiveness, growth, jobs
  and
  investment, in particular to the following:

The specific objectives set out in paragraph 1 shall refer to policy areas related to competitiveness,
  sustainable
  growth, jobs, investment,
  and economic, social and territorial cohesion, and that are among the goals of the Europe 2020 strategy,
  in particular to the following:

(a)

public financial management, budget process, debt management and revenue administration;

| (a) | public financial management, budget process, debt management and revenue administration; |
| --- | --- |

(a)

public financial management, budget process, debt management and revenue administration;

| (b) | institutional reform and
  efficient and
  service
  -oriented functioning of public administration, effective rule of law, reform of the justice system and reinforcement of anti-fraud, anti-corruption and anti-money laundering; |
| --- | --- |

(b)

institutional reform and
  efficient and
  service
  -oriented functioning of public administration, effective rule of law, reform of the justice system and reinforcement of anti-fraud, anti-corruption and anti-money laundering;

| (b) | efficient and
  general interest
  -oriented functioning of public administration, effective rule of law, reform of the justice system and reinforcement of anti-fraud, anti-corruption and anti-money laundering; |
| --- | --- |

(b)

efficient and
  general interest
  -oriented functioning of public administration, effective rule of law, reform of the justice system and reinforcement of anti-fraud, anti-corruption and anti-money laundering;

| (c) | business environment, private sector development, investment,
  privatization processes, trade and foreign direct investment,
  competition and public procurement, sustainable sectoral development and support for innovation; |
| --- | --- |

(c)

business environment, private sector development, investment,
  privatization processes, trade and foreign direct investment,
  competition and public procurement, sustainable sectoral development and support for innovation;

| (c) | business environment, private sector development,
  privatisation or (re-)nationalisation or (re-)municipalisation processes,
  investment, competition and public procurement, sustainable sectoral development and support for innovation; |
| --- | --- |

(c)

business environment, private sector development,
  privatisation or (re-)nationalisation or (re-)municipalisation processes,
  investment, competition and public procurement, sustainable sectoral development and support for innovation;

| (d) | education and training, labour market policies, social inclusion, social security and social welfare systems, public health and healthcare systems
  , asylum, migration and borders policies
  ; |
| --- | --- |

(d)

education and training, labour market policies, social inclusion, social security and social welfare systems, public health and healthcare systems
  , asylum, migration and borders policies
  ;

| (d) | education and training, labour market policies, social inclusion
  and combating poverty
  , social security and social welfare systems, public health and healthcare systems; |
| --- | --- |

(d)

education and training, labour market policies, social inclusion
  and combating poverty
  , social security and social welfare systems, public health and healthcare systems;

| (e) | policies for the agricultural sector and the sustainable development of rural areas; |
| --- | --- |

(e)

policies for the agricultural sector and the sustainable development of rural areas;

| (e) | financial sector policies and access to finance. |
| --- | --- |

(e)

financial sector policies and access to finance.

| (f) | financial sector policies and access to finance. |
| --- | --- |

(f)

financial sector policies and access to finance.

Reason

Omission of policy areas that are already targeted by a technical assistance programme and compliance with Article 345 TFEU, which enshrines the neutrality of EU law in relation to systems of property ownership. Moreover, the crisis has demonstrated that public authorities might also feel the need to renationalise, at least temporarily, certain economic activities.

Amendment 13

Article 7(2)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Taking into account the principles of transparency, equal treatment and sound financial management, further to a dialogue with the Member State, including in the context of the European Semester, the Commission shall analyse the request for support referred to in paragraph 1 based on the urgency, breadth and depth of the problems identified, support needs in respect of the policy areas concerned, analysis of socioeconomic indicators and general administrative capacity of the Member State. Taking into account the existing actions and measures financed by Union funds or other Union programmes, the Commission in close cooperation with the Member State concerned shall identify the priority areas for support, the scope of the support measures to be provided and the global financial contribution for such support. | Taking into account the principles of
  subsidiarity,
  transparency, equal treatment
  , partnership
  and sound financial management, further to a dialogue with the Member
  State’s relevant public authorities
  , including in the context of the European Semester, the Commission shall analyse the request for support referred to in paragraph 1 based on the urgency, breadth and depth of the problems identified, support needs in respect of the policy areas concerned, analysis of socioeconomic indicators and general administrative capacity of the Member State. Taking into account the existing actions and measures financed by Union funds or other Union programmes,
  and within the framework established under the single strategic Union document to improve the institutional and administrative capacity of public authorities at all levels of government, transparently and fairly setting criteria to be adopted so as to determine which measures under the programme are to be prioritised and how available resources are to be allocated, as well as criteria and mechanisms to coordinate measures at Union, national, regional and local level,
  the Commission in close cooperation with the Member State concerned shall identify the priority areas for support, the scope of the support measures to be provided and the global financial contribution for such support. |

Text proposed by the Commission

CoR amendment

Taking into account the principles of transparency, equal treatment and sound financial management, further to a dialogue with the Member State, including in the context of the European Semester, the Commission shall analyse the request for support referred to in paragraph 1 based on the urgency, breadth and depth of the problems identified, support needs in respect of the policy areas concerned, analysis of socioeconomic indicators and general administrative capacity of the Member State. Taking into account the existing actions and measures financed by Union funds or other Union programmes, the Commission in close cooperation with the Member State concerned shall identify the priority areas for support, the scope of the support measures to be provided and the global financial contribution for such support.

Taking into account the principles of
  subsidiarity,
  transparency, equal treatment
  , partnership
  and sound financial management, further to a dialogue with the Member
  State’s relevant public authorities
  , including in the context of the European Semester, the Commission shall analyse the request for support referred to in paragraph 1 based on the urgency, breadth and depth of the problems identified, support needs in respect of the policy areas concerned, analysis of socioeconomic indicators and general administrative capacity of the Member State. Taking into account the existing actions and measures financed by Union funds or other Union programmes,
  and within the framework established under the single strategic Union document to improve the institutional and administrative capacity of public authorities at all levels of government, transparently and fairly setting criteria to be adopted so as to determine which measures under the programme are to be prioritised and how available resources are to be allocated, as well as criteria and mechanisms to coordinate measures at Union, national, regional and local level,
  the Commission in close cooperation with the Member State concerned shall identify the priority areas for support, the scope of the support measures to be provided and the global financial contribution for such support.

Amendment 14

Article 8(2)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The Beneficiary Member State, in coordination with the Commission, may enter into partnership with one or more other Member States
  which shall act as
  Reform Partners in respect of specific areas of reform. A Reform Partner shall, in coordination with the Commission, help formulate strategy, reform roadmaps, design high-quality assistance or oversee implementation of strategy and projects. | The Beneficiary Member State, in coordination with the Commission, may enter into partnership with one or more other Member States
  and, if necessary, strengthen this or these partnership(s) with the level of government most relevant to implementing the reform, so that they become
  Reform Partners in respect of specific areas of reform. A Reform Partner shall, in coordination with the Commission, help formulate strategy, reform roadmaps, design high-quality assistance or oversee implementation of strategy and projects. |

Text proposed by the Commission

CoR amendment

The Beneficiary Member State, in coordination with the Commission, may enter into partnership with one or more other Member States
  which shall act as
  Reform Partners in respect of specific areas of reform. A Reform Partner shall, in coordination with the Commission, help formulate strategy, reform roadmaps, design high-quality assistance or oversee implementation of strategy and projects.

The Beneficiary Member State, in coordination with the Commission, may enter into partnership with one or more other Member States
  and, if necessary, strengthen this or these partnership(s) with the level of government most relevant to implementing the reform, so that they become
  Reform Partners in respect of specific areas of reform. A Reform Partner shall, in coordination with the Commission, help formulate strategy, reform roadmaps, design high-quality assistance or oversee implementation of strategy and projects.

Amendment 15

Article 12(3)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Grants may be awarded to Member States’
  national
  authorities, the European Investment Bank group, international organisations, public and/or private bodies and entities legally established in any of the following: | Grants may be awarded to Member States’
  public
  authorities, the European Investment Bank group, international organisations, public and/or private bodies and entities legally established in any of the following: |
| (a) | Member States; |

Text proposed by the Commission

CoR amendment

Grants may be awarded to Member States’
  national
  authorities, the European Investment Bank group, international organisations, public and/or private bodies and entities legally established in any of the following:

Grants may be awarded to Member States’
  public
  authorities, the European Investment Bank group, international organisations, public and/or private bodies and entities legally established in any of the following:

(a)

Member States;

| (a) | Member States; |
| --- | --- |

(a)

Member States;

| (b) | European Free Trade Agreement countries which are party to the European Economic Area Agreement, in accordance with the conditions laid down in the EEA Agreement. |
| --- | --- |

(b)

European Free Trade Agreement countries which are party to the European Economic Area Agreement, in accordance with the conditions laid down in the EEA Agreement.

| (b) | European Free Trade Agreement countries which are party to the European Economic Area Agreement, in accordance with the conditions laid down in the EEA Agreement. |
| --- | --- |

(b)

European Free Trade Agreement countries which are party to the European Economic Area Agreement, in accordance with the conditions laid down in the EEA Agreement.

The co-financing rate for grants shall be up to 100 % of the eligible costs, without prejudice to the principles of co-financing and no-profit.

The co-financing rate for grants shall be up to 100 % of the eligible costs, without prejudice to the principles of co-financing and no-profit.

Amendment 16

Article 13

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The Commission and the Beneficiary Member States, within their respective responsibilities, shall foster synergies and ensure effective coordination between the Programme and other Union programmes and instruments, and in particular with measures financed by the Union funds. To this end, they shall: | The Commission and the Beneficiary Member States, within their respective responsibilities, shall foster synergies and ensure effective coordination between the Programme and other Union programmes and instruments, and in particular with measures financed by the Union funds
  , on the basis of the single strategic document mentioned in Article 7.
  To this end, they shall: |
| a) | ensure complementarity and synergy between different instruments at Union and national levels, in particular in relation to measures financed by Union funds, both in the planning phase and during implementation; |

Text proposed by the Commission

CoR amendment

The Commission and the Beneficiary Member States, within their respective responsibilities, shall foster synergies and ensure effective coordination between the Programme and other Union programmes and instruments, and in particular with measures financed by the Union funds. To this end, they shall:

The Commission and the Beneficiary Member States, within their respective responsibilities, shall foster synergies and ensure effective coordination between the Programme and other Union programmes and instruments, and in particular with measures financed by the Union funds
  , on the basis of the single strategic document mentioned in Article 7.
  To this end, they shall:

a)

ensure complementarity and synergy between different instruments at Union and national levels, in particular in relation to measures financed by Union funds, both in the planning phase and during implementation;

| a) | ensure complementarity and synergy between different instruments at Union and national
  , regional and local
  levels, in particular in relation to measures financed by Union funds, both in the planning phase and during implementation; |
| --- | --- |

a)

ensure complementarity and synergy between different instruments at Union and national
  , regional and local
  levels, in particular in relation to measures financed by Union funds, both in the planning phase and during implementation;

| b) | optimise mechanisms for coordination to avoid duplication of effort; |
| --- | --- |

b)

optimise mechanisms for coordination to avoid duplication of effort;

| b) | optimise mechanisms for coordination to avoid duplication of effort; |
| --- | --- |

b)

optimise mechanisms for coordination to avoid duplication of effort;

| c) | ensure close cooperation between those responsible for implementation at Union and national level to deliver coherent and streamlined support actions. |
| --- | --- |

c)

ensure close cooperation between those responsible for implementation at Union and national level to deliver coherent and streamlined support actions.

| c) | ensure close cooperation between those responsible for implementation at Union and national
  , regional and local
  level to deliver coherent and streamlined support actions. |
| --- | --- |

c)

ensure close cooperation between those responsible for implementation at Union and national
  , regional and local
  level to deliver coherent and streamlined support actions.

(...)

(...)

Amendment 17

Article 15

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Monitoring and evaluation | Monitoring and evaluation |
| 1.   The Commission shall monitor the implementation of the actions financed by the Programme and measure the achievement of the specific objectives referred to in Article 5(1) in accordance with indicators set out in the Annex. | 1.   The Commission shall monitor the implementation of the actions financed by the Programme and measure the achievement of the specific objectives referred to in Article 5(1) in accordance with indicators set out in the Annex. |
| The Commission shall be empowered to adopt delegated acts in accordance with Article 16 concerning amendments to the list of indicators set out in the Annex. | The Commission shall be empowered to adopt delegated acts in accordance with Article 16 concerning amendments to the list of indicators set out in the Annex. |
| 2.   The Commission shall provide the European Parliament and the Council with an interim evaluation report, by mid of 2019, at the latest, and an ex-post evaluation report by end of December 2021. | 2.   The Commission shall provide the European Parliament and the Council
  , as well as the consultative committees,
  with an interim evaluation report, by mid of 2019, at the latest, and an ex-post evaluation report by end of December 2021. |
| 3.   The interim evaluation report shall include information on the achievement of the Programme’s objectives, the efficiency of the use of resources and the Programme’ European added value and assessment on whether funding in areas covered by the Programme needs to be adapted
  or
  extended after 2020. It shall also address the continued relevance of all objectives and actions. The ex-post evaluation report shall include information on the longer-term impact of the Programme. | 3.   The interim evaluation report shall include information on the achievement of the Programme’s objectives, the efficiency of the use of resources and the Programme’ European added value and assessment on whether funding in areas covered by the Programme needs to be adapted, extended after 2020
  or stopped
  . It shall also address the continued relevance of all objectives and actions. The ex-post evaluation report shall include information on the longer-term impact of the Programme. |

Text proposed by the Commission

CoR amendment

Monitoring and evaluation

Monitoring and evaluation

1.   The Commission shall monitor the implementation of the actions financed by the Programme and measure the achievement of the specific objectives referred to in Article 5(1) in accordance with indicators set out in the Annex.

1.   The Commission shall monitor the implementation of the actions financed by the Programme and measure the achievement of the specific objectives referred to in Article 5(1) in accordance with indicators set out in the Annex.

The Commission shall be empowered to adopt delegated acts in accordance with Article 16 concerning amendments to the list of indicators set out in the Annex.

The Commission shall be empowered to adopt delegated acts in accordance with Article 16 concerning amendments to the list of indicators set out in the Annex.

2.   The Commission shall provide the European Parliament and the Council with an interim evaluation report, by mid of 2019, at the latest, and an ex-post evaluation report by end of December 2021.

2.   The Commission shall provide the European Parliament and the Council
  , as well as the consultative committees,
  with an interim evaluation report, by mid of 2019, at the latest, and an ex-post evaluation report by end of December 2021.

3.   The interim evaluation report shall include information on the achievement of the Programme’s objectives, the efficiency of the use of resources and the Programme’ European added value and assessment on whether funding in areas covered by the Programme needs to be adapted
  or
  extended after 2020. It shall also address the continued relevance of all objectives and actions. The ex-post evaluation report shall include information on the longer-term impact of the Programme.

3.   The interim evaluation report shall include information on the achievement of the Programme’s objectives, the efficiency of the use of resources and the Programme’ European added value and assessment on whether funding in areas covered by the Programme needs to be adapted, extended after 2020
  or stopped
  . It shall also address the continued relevance of all objectives and actions. The ex-post evaluation report shall include information on the longer-term impact of the Programme.

II.   POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

| 1. | agrees with the principle underlying this support programme, which aims to provide – on a voluntary basis and upon request – technical assistance with regard to structural reforms in Member States in policy areas that fall under the competences shared between the European Union and the Member States; is of the opinion that effective coordination with existing technical assistance programmes at EU and beneficiary Member State level and active participation by local and regional authorities in that coordination with a view to giving the programme a more regional focus are prerequisites for the success of this programme; |
| --- | --- |

1.

agrees with the principle underlying this support programme, which aims to provide – on a voluntary basis and upon request – technical assistance with regard to structural reforms in Member States in policy areas that fall under the competences shared between the European Union and the Member States; is of the opinion that effective coordination with existing technical assistance programmes at EU and beneficiary Member State level and active participation by local and regional authorities in that coordination with a view to giving the programme a more regional focus are prerequisites for the success of this programme;

| 2. | considers that the main objective of the support programme should be to improve administrative capacity at national, regional and local levels of government in requesting Member States, and that such improvements must also be used as a parameter in the ongoing revision of the Europe 2020 strategy; |
| --- | --- |

2.

considers that the main objective of the support programme should be to improve administrative capacity at national, regional and local levels of government in requesting Member States, and that such improvements must also be used as a parameter in the ongoing revision of the Europe 2020 strategy;

| 3. | calls for the programme to be based on a single strategic Union document to improve the institutional and administrative capacity of public authorities at all levels of government; invites the Commission to put forward this single document which must, among other things, transparently and fairly set criteria to be adopted so as to determine which measures under the programme are to be prioritised and how available resources are to be allocated, as well as criteria and mechanisms to coordinate existing measures both at Union level, including under the programme, and at national, regional and local level, in full compliance with the principles of subsidiarity and proportionality and guaranteeing the autonomy and individuality of the different regional levels. On this basis, similar single documents will be drawn up for beneficiary Member States, in cooperation with the Member States and in accordance with the partnership principle; |
| --- | --- |

3.

calls for the programme to be based on a single strategic Union document to improve the institutional and administrative capacity of public authorities at all levels of government; invites the Commission to put forward this single document which must, among other things, transparently and fairly set criteria to be adopted so as to determine which measures under the programme are to be prioritised and how available resources are to be allocated, as well as criteria and mechanisms to coordinate existing measures both at Union level, including under the programme, and at national, regional and local level, in full compliance with the principles of subsidiarity and proportionality and guaranteeing the autonomy and individuality of the different regional levels. On this basis, similar single documents will be drawn up for beneficiary Member States, in cooperation with the Member States and in accordance with the partnership principle;

| 4. | stresses that, in view of the division of powers and responsibilities in each Member State and the Country Specific Recommendations that are often addressed to local and regional authorities, the programme must be open to local and regional authorities; calls on the Commission to ensure that this is the case, for example, by checking, in cases of requests for technical assistance made by national authorities that come under local and regional authorities’ areas of responsibility, that the latter have been involved in putting together the structural reform project in question, while respecting each country’s institutional set-up; |
| --- | --- |

4.

stresses that, in view of the division of powers and responsibilities in each Member State and the Country Specific Recommendations that are often addressed to local and regional authorities, the programme must be open to local and regional authorities; calls on the Commission to ensure that this is the case, for example, by checking, in cases of requests for technical assistance made by national authorities that come under local and regional authorities’ areas of responsibility, that the latter have been involved in putting together the structural reform project in question, while respecting each country’s institutional set-up;

| 5. | considers that the proposal for a Regulation appears to comply with the principle of subsidiarity if technical assistance is provided in areas of shared competence between the Union and the Member States (see amendments to Recital 6, Article 3(1) and Article 4). As the proposal is based on a voluntary mechanism, the question of proportionality does not arise; |
| --- | --- |

5.

considers that the proposal for a Regulation appears to comply with the principle of subsidiarity if technical assistance is provided in areas of shared competence between the Union and the Member States (see amendments to Recital 6, Article 3(1) and Article 4). As the proposal is based on a voluntary mechanism, the question of proportionality does not arise;

| 6. | considers it essential that the programme is effectively coordinated with the EU programmes and instruments that co-finance technical assistance under the Structural Funds (Article 59 of Regulation (EU) No 1303/2013 and thematic objective No 11), the Fund for European Aid to the Most Deprived (FEAD), the Asylum, Migration and Integration Fund (AMIF), the Internal Security Fund (ISF), and sectoral EU programmes (Connecting Europe Facility, Horizon 2020, ‘Europe for Citizens’, ‘Justice’ and ‘Rights, Equality and Citizenship’); |
| --- | --- |

6.

considers it essential that the programme is effectively coordinated with the EU programmes and instruments that co-finance technical assistance under the Structural Funds (Article 59 of Regulation (EU) No 1303/2013 and thematic objective No 11), the Fund for European Aid to the Most Deprived (FEAD), the Asylum, Migration and Integration Fund (AMIF), the Internal Security Fund (ISF), and sectoral EU programmes (Connecting Europe Facility, Horizon 2020, ‘Europe for Citizens’, ‘Justice’ and ‘Rights, Equality and Citizenship’);

| 7. | stresses that financing the programme through the transfer of funds allocated to technical assistance under the European Structural and Investment Funds can only be a temporary solution. Furthermore, it is opposed to these funding arrangements paving the way for subordinating cohesion policy to the ‘European Semester’ exercise since cohesion policy has its own legitimacy, enshrined in the European Treaties; |
| --- | --- |

7.

stresses that financing the programme through the transfer of funds allocated to technical assistance under the European Structural and Investment Funds can only be a temporary solution. Furthermore, it is opposed to these funding arrangements paving the way for subordinating cohesion policy to the ‘European Semester’ exercise since cohesion policy has its own legitimacy, enshrined in the European Treaties;

| 8. | stresses that there is no one-size-fits-all method for structural reforms and that best practices can only act as the incentive to search for solutions tailored to the different conditions and local and regional characteristics in requesting Member States; |
| --- | --- |

8.

stresses that there is no one-size-fits-all method for structural reforms and that best practices can only act as the incentive to search for solutions tailored to the different conditions and local and regional characteristics in requesting Member States;

| 9. | encourages best practices regarding the implementation of structural reforms to be exchanged between the Member States, and calls for local and regional authorities with socioeconomic or geographical similarities, or subject to structural reforms with cross-border implications, to be involved so as to strengthen partnerships between Member States under the programme; |
| --- | --- |

9.

encourages best practices regarding the implementation of structural reforms to be exchanged between the Member States, and calls for local and regional authorities with socioeconomic or geographical similarities, or subject to structural reforms with cross-border implications, to be involved so as to strengthen partnerships between Member States under the programme;

| 10. | points out that a high level of ownership of the structural reforms on the ground by the relevant local and regional authorities, social partners and civil society players is essential for the programme to be successful and for it to help to raise confidence and promote cooperation between the requesting Member State, the Commission and the other Member States; |
| --- | --- |

10.

points out that a high level of ownership of the structural reforms on the ground by the relevant local and regional authorities, social partners and civil society players is essential for the programme to be successful and for it to help to raise confidence and promote cooperation between the requesting Member State, the Commission and the other Member States;

| 11. | calls for support for structural reforms to systematically draw attention to the objectives of sustainable development, social inclusion, and accessibility of health care, employment and training, in line with the objectives of the Europe 2020 strategy. The CoR therefore urges indicators other than GDP to be taken into account in evaluations of the support programme carried out by the Commission (6); |
| --- | --- |

11.

calls for support for structural reforms to systematically draw attention to the objectives of sustainable development, social inclusion, and accessibility of health care, employment and training, in line with the objectives of the Europe 2020 strategy. The CoR therefore urges indicators other than GDP to be taken into account in evaluations of the support programme carried out by the Commission (6);

| 12. | believes that Member States’ co-financing under the support programme comes under the Stability and Growth Pact’s structural reform clause (7); |
| --- | --- |

12.

believes that Member States’ co-financing under the support programme comes under the Stability and Growth Pact’s structural reform clause (7);

| 13. | stresses that the programme should be considered to be a pilot programme; recommends that an evaluation be carried out in good time before the beginning of the next financial programming period, starting in 2021, in order to decide whether it would be beneficial to make it permanent, and, if so, whether establishing a fund of own resources to support structural reforms is necessary, feasible and desirable. |
| --- | --- |

13.

stresses that the programme should be considered to be a pilot programme; recommends that an evaluation be carried out in good time before the beginning of the next financial programming period, starting in 2021, in order to decide whether it would be beneficial to make it permanent, and, if so, whether establishing a fund of own resources to support structural reforms is necessary, feasible and desirable.

Brussels, 7 April 2016.

The President of the European Committee of the Regions

Markku MARKKULA

---

(1)  http://www.eca.europa.eu/en/Pages/DocItem.aspx?did=35302

1

(2)  COM(2010) 700 final of 19 October 2010.

2

(3)  COM(2011) 500 final of 29 June 2011.

3

(4)  COM(2010) 700 final of 19 October 2010.

4

(5)  COM(2011) 500 final of 29 June 2011.

5

(6)  See the CoR’s opinion on ‘Indicators for territorial development – GDP and beyond’, adopted on 10 February 2016.

6

(7)  See the CoR’s opinion on ‘Making the best use of the flexibility within the existing rules of the Stability and Growth Pact’, adopted on 9 July 2015.

7

---

| 1.7.2016 | EN | Official Journal of the European Union | C 240/62 |
| --- | --- | --- | --- |

1.7.2016

EN

Official Journal of the European Union

C 240/62

---

Opinion of the European Committee of the Regions — Cost-effective emission reductions and low-carbon investments

(2016/C 240/10)

| Rapporteur: | Marco DUS (IT/PES) Member of Vittorio Veneto Municipal Council, Treviso |
| --- | --- |
| Reference document: | Proposal for a Directive of the European Parliament and of the Council amending Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments
  COM(2015) 337 final |

Rapporteur:

Marco DUS (IT/PES) Member of Vittorio Veneto Municipal Council, Treviso

Reference document:

Proposal for a Directive of the European Parliament and of the Council amending Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments

COM(2015) 337 final

I.   PROPOSED AMENDMENTS

Amendment 1

Recital 6

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The auctioning of allowances remains the general rule, with free allocation as the exception. Consequently, and as confirmed by the European Council, the share of allowances to be auctioned, which was 57 % over the period 2013-2020, should not be reduced. The Commission’s Impact Assessment provides details on the auction share and specifies that this
  57 %
  share is made up of allowances auctioned on behalf of Member States, including allowances set aside for new entrants but not allocated, allowances for modernising electricity generation in some Member States and allowances which are to be auctioned at a later point in time because of their placement in the Market Stability Reserve established by Decision (EU) 2015/... of the European Parliament and of the Council. | The auctioning of allowances remains the general rule, with free allocation as the exception. Consequently, and as confirmed by the European Council, the share of allowances to be auctioned, which was 57 % over the period 2013-2020 should not be reduced.
  To ensure that the EU ETS operates as effectively as possible, the common objective should be to continue gradually increasing the allowances to be auctioned.
  The Commission’s Impact Assessment provides details on the auction share and specifies that this share is made up of allowances auctioned on behalf of Member States, including allowances set aside for new entrants but not allocated, allowances for modernising electricity generation in some Member States and allowances which are to be auctioned at a later point in time because of their placement in the Market Stability Reserve established by Decision (EU) 2015/... of the European Parliament and of the Council.
  The number of allowances available for free allocation should correspond to the requirements of the most efficient enterprises that are at risk of carbon leakage, based on ambitious benchmarks that are also technically and economically feasible on an industrial scale. |

Text proposed by the Commission

CoR amendment

The auctioning of allowances remains the general rule, with free allocation as the exception. Consequently, and as confirmed by the European Council, the share of allowances to be auctioned, which was 57 % over the period 2013-2020, should not be reduced. The Commission’s Impact Assessment provides details on the auction share and specifies that this
  57 %
  share is made up of allowances auctioned on behalf of Member States, including allowances set aside for new entrants but not allocated, allowances for modernising electricity generation in some Member States and allowances which are to be auctioned at a later point in time because of their placement in the Market Stability Reserve established by Decision (EU) 2015/... of the European Parliament and of the Council.

The auctioning of allowances remains the general rule, with free allocation as the exception. Consequently, and as confirmed by the European Council, the share of allowances to be auctioned, which was 57 % over the period 2013-2020 should not be reduced.
  To ensure that the EU ETS operates as effectively as possible, the common objective should be to continue gradually increasing the allowances to be auctioned.
  The Commission’s Impact Assessment provides details on the auction share and specifies that this share is made up of allowances auctioned on behalf of Member States, including allowances set aside for new entrants but not allocated, allowances for modernising electricity generation in some Member States and allowances which are to be auctioned at a later point in time because of their placement in the Market Stability Reserve established by Decision (EU) 2015/... of the European Parliament and of the Council.
  The number of allowances available for free allocation should correspond to the requirements of the most efficient enterprises that are at risk of carbon leakage, based on ambitious benchmarks that are also technically and economically feasible on an industrial scale.

Reason

We could be more ambitious than the text proposed in the Directive. The Committee of the Regions believes that European climate policies should always be forward-looking, always cater for cost-efficiency and carefully assess the entire value chain, given the way the various industrial sectors are closely interconnected.

Amendment 2

Recital 9

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Member States should partially compensate, in accordance with state aid rules, certain installations in sectors or sub-sectors which have been determined to be exposed to a significant risk of carbon leakage because of costs related to greenhouse gas emissions passed on in electricity prices. The Protocol and accompanying decisions adopted by the Conference of the Parties in Paris need to provide for the dynamic mobilisation of climate finance, technology transfer and capacity building for eligible Parties, particularly those with least capabilities. Public sector climate finance will continue to play an important role in mobilising resources after 2020. Therefore, auction revenues should also be used for climate financing actions in vulnerable third countries, including adaptation to the impacts of climate. The amount of climate finance to be mobilised will also depend on the ambition and quality of the proposed Intended Nationally Determined Contributions (INDCs), subsequent investment plans and national adaptation planning processes. Member States should also use auction revenues to promote skill formation and reallocation of labour affected by the transition of jobs in a decarbonising economy. | Member States should partially compensate, in accordance with state aid rules, certain installations in sectors or sub-sectors which have been determined to be exposed to a significant risk of carbon leakage because of costs related to greenhouse gas emissions passed on in electricity prices.
  In order to avoid distortions in competition between businesses in the various Member States, it must be mandatory to regulate the compensatory funds issued to each business homogenously across the whole EU.
  The Protocol and accompanying decisions adopted by the Conference of the Parties in Paris need to provide for the dynamic mobilisation of climate finance, technology transfer and capacity building for eligible Parties, particularly those with least capabilities. Public sector climate finance will continue to play an important role in mobilising resources after 2020. Therefore, auction revenues should also be used for climate financing actions in vulnerable third countries, including adaptation to the impacts of climate. The amount of climate finance to be mobilised will also depend on the ambition and quality of the proposed Intended Nationally Determined Contributions (INDCs), subsequent investment plans and national adaptation planning processes.
  Each Member State should set a minimum percentage threshold of at least 20 % of auction revenues to be managed directly by the local and regional authorities, for climate mitigation, for example in relation to hydrogeological risks, which these authorities are increasingly required to manage, and for appropriate adaptation of electricity and thermal transmission infrastructure to the growing possibilities of producing energy from renewable sources
  .
  It should also be possible to use revenues from emissions trading in the Member States to prevent local and regional climate risks and protect against and adapt to the effects of climate change.
  Member States should also use auction revenues to promote skill formation and reallocation of labour affected by the transition of jobs in a decarbonising economy. |

Text proposed by the Commission

CoR amendment

Member States should partially compensate, in accordance with state aid rules, certain installations in sectors or sub-sectors which have been determined to be exposed to a significant risk of carbon leakage because of costs related to greenhouse gas emissions passed on in electricity prices. The Protocol and accompanying decisions adopted by the Conference of the Parties in Paris need to provide for the dynamic mobilisation of climate finance, technology transfer and capacity building for eligible Parties, particularly those with least capabilities. Public sector climate finance will continue to play an important role in mobilising resources after 2020. Therefore, auction revenues should also be used for climate financing actions in vulnerable third countries, including adaptation to the impacts of climate. The amount of climate finance to be mobilised will also depend on the ambition and quality of the proposed Intended Nationally Determined Contributions (INDCs), subsequent investment plans and national adaptation planning processes. Member States should also use auction revenues to promote skill formation and reallocation of labour affected by the transition of jobs in a decarbonising economy.

Member States should partially compensate, in accordance with state aid rules, certain installations in sectors or sub-sectors which have been determined to be exposed to a significant risk of carbon leakage because of costs related to greenhouse gas emissions passed on in electricity prices.
  In order to avoid distortions in competition between businesses in the various Member States, it must be mandatory to regulate the compensatory funds issued to each business homogenously across the whole EU.
  The Protocol and accompanying decisions adopted by the Conference of the Parties in Paris need to provide for the dynamic mobilisation of climate finance, technology transfer and capacity building for eligible Parties, particularly those with least capabilities. Public sector climate finance will continue to play an important role in mobilising resources after 2020. Therefore, auction revenues should also be used for climate financing actions in vulnerable third countries, including adaptation to the impacts of climate. The amount of climate finance to be mobilised will also depend on the ambition and quality of the proposed Intended Nationally Determined Contributions (INDCs), subsequent investment plans and national adaptation planning processes.
  Each Member State should set a minimum percentage threshold of at least 20 % of auction revenues to be managed directly by the local and regional authorities, for climate mitigation, for example in relation to hydrogeological risks, which these authorities are increasingly required to manage, and for appropriate adaptation of electricity and thermal transmission infrastructure to the growing possibilities of producing energy from renewable sources
  .
  It should also be possible to use revenues from emissions trading in the Member States to prevent local and regional climate risks and protect against and adapt to the effects of climate change.
  Member States should also use auction revenues to promote skill formation and reallocation of labour affected by the transition of jobs in a decarbonising economy.

Reason

The role played by local and regional authorities in these policies should be enhanced rather than undervalued. The Committee of the Regions proposes that Member States provide for a share of revenue from auctioning emission allowances to be managed directly by local and regional authorities for the purposes of climate change mitigation, especially in relation to hydrogeological hazards, which local and regional authorities are increasingly called on to manage in emergency situations.

Amendment 3

Recital 10

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The main long-term incentive from this Directive for the capture and storage of CO2 (CCS), new renewable energy technologies and breakthrough innovation in low-carbon technologies and processes is the carbon price signal it creates and that allowances will not need to be surrendered for CO2 emissions which are permanently stored or avoided. In addition, to supplement the resources already being used to accelerate demonstration of commercial CCS facilities and innovative renewable energy technologies, EU ETS allowances should be used to provide guaranteed rewards for deployment of CCS facilities, new renewable energy technologies and industrial innovation in low-carbon technologies and processes in the Union for CO2 stored or avoided on a sufficient scale, provided an agreement on knowledge sharing is in place. The majority of this support should be dependent on verified avoidance of greenhouse gas emissions, while some support may be given when pre-determined milestones are reached taking into account the technology deployed. The maximum percentage of project costs to be supported may vary by category of project. | The main long-term incentive from this Directive for the capture and storage of CO2 (
  all types of
  CCS), new renewable energy technologies, energy efficiency
  and breakthrough innovation in low-carbon technologies and processes
  (such as the capture and utilisation of CO2 — CCU)
  is the carbon price signal it creates and that allowances will not need to be surrendered for CO2 emissions which are permanently stored or avoided. In addition, to supplement the resources already being used to accelerate demonstration of commercial CCS facilities and innovative renewable energy technologies, EU ETS allowances should be used to provide guaranteed rewards for deployment of CCS facilities, new renewable energy technologies and industrial innovation in
  cost effective CCU or
  low-carbon technologies and processes in the Union for CO2 stored or avoided on a sufficient scale, provided an agreement on knowledge sharing is in place. The majority of this support should be dependent on verified avoidance of greenhouse gas emissions, while some support may be given when pre-determined milestones are reached taking into account the technology deployed. The maximum percentage of project costs to be supported may vary by category of project. |

Text proposed by the Commission

CoR amendment

The main long-term incentive from this Directive for the capture and storage of CO2 (CCS), new renewable energy technologies and breakthrough innovation in low-carbon technologies and processes is the carbon price signal it creates and that allowances will not need to be surrendered for CO2 emissions which are permanently stored or avoided. In addition, to supplement the resources already being used to accelerate demonstration of commercial CCS facilities and innovative renewable energy technologies, EU ETS allowances should be used to provide guaranteed rewards for deployment of CCS facilities, new renewable energy technologies and industrial innovation in low-carbon technologies and processes in the Union for CO2 stored or avoided on a sufficient scale, provided an agreement on knowledge sharing is in place. The majority of this support should be dependent on verified avoidance of greenhouse gas emissions, while some support may be given when pre-determined milestones are reached taking into account the technology deployed. The maximum percentage of project costs to be supported may vary by category of project.

The main long-term incentive from this Directive for the capture and storage of CO2 (
  all types of
  CCS), new renewable energy technologies, energy efficiency
  and breakthrough innovation in low-carbon technologies and processes
  (such as the capture and utilisation of CO2 — CCU)
  is the carbon price signal it creates and that allowances will not need to be surrendered for CO2 emissions which are permanently stored or avoided. In addition, to supplement the resources already being used to accelerate demonstration of commercial CCS facilities and innovative renewable energy technologies, EU ETS allowances should be used to provide guaranteed rewards for deployment of CCS facilities, new renewable energy technologies and industrial innovation in
  cost effective CCU or
  low-carbon technologies and processes in the Union for CO2 stored or avoided on a sufficient scale, provided an agreement on knowledge sharing is in place. The majority of this support should be dependent on verified avoidance of greenhouse gas emissions, while some support may be given when pre-determined milestones are reached taking into account the technology deployed. The maximum percentage of project costs to be supported may vary by category of project.

Reason

It would be worth making direct reference to energy efficiency and the whole field of technology relating to the capture and utilisation of CO2 (CCU) as a raw material in other industrial processes. Testing is already underway in this field, and should a sufficient level of technological maturity be reached, it would be a much better prospect than CCS. In addition, the CoR draws attention to the issue of security, especially long-term security, which these systems will have to be able to guarantee.

Amendment 4

Recital 11

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| A Modernisation Fund should be established from 2 % of the total EU ETS allowances, and auctioned in accordance with the rules and modalities for auctions taking place on the Common Auction Platform set out in Regulation (EC) No 1031/2010. Member States who in 2013 had a GDP per capita at market exchange rates of below 60 % below the Union average should be eligible for funding from the Modernisation Fund and derogate up to 2030 from the principle of full auctioning for electricity generation by using the option of free allocation in order to transparently promote real investments modernising their energy sector while avoiding distortions of the internal energy market. The rules for governing the Modernisation Fund should provide a coherent, comprehensive and transparent framework to ensure the most efficient implementation possible, taking into account the need for easy access by all participants. The function of the governance structure should be commensurate with the purpose of ensuring the appropriate use of the funds. That governance structure should be composed of an investment board and a management committee and due account should be taken of the expertise of the EIB in the decision-making process unless support is provided to small projects through loans from a national promotional banks or through grants via a national programme sharing the objectives of the Modernisation Fund. Investments financed from the fund should be proposed by the Member States. To ensure that the investment needs in low income Member States are adequately addressed, the distribution of funds will take into account in equal shares verified emissions and GDP criteria. The financial assistance from the Modernisation Fund could be provided through different forms. | A Modernisation Fund should be established from 2 % of the total EU ETS allowances, and auctioned in accordance with the rules and modalities for auctions taking place on the Common Auction Platform set out in Regulation (EC) No 1031/2010. Member States who in 2013 had a GDP per capita at market exchange rates of below 60 % below the Union average should be eligible for funding from the Modernisation Fund and derogate up to 2030 from the principle of full auctioning for electricity generation by using the option of free allocation in order to transparently promote real investments modernising their energy sector while avoiding distortions of the internal energy market.
  Similarly, the Modernisation Fund should be open to NUTS 2 regions in Member States with clear internal imbalances, in order to boost the revitalisation and modernisation of the energy sector.
  The rules for governing the Modernisation Fund should provide a coherent, comprehensive and transparent framework to ensure the most efficient implementation possible, taking into account the need for easy access by all participants. The function of the governance structure should be commensurate with the purpose of ensuring the appropriate use of the funds. That governance structure should be composed of an investment board and a management committee and due account should be taken of the expertise of the EIB in the decision-making process unless support is provided to small projects through loans from a national promotional banks or through grants via a national programme sharing the objectives of the Modernisation Fund. Investments financed from the fund should be proposed by the Member States. To ensure that the investment needs in low income Member States are adequately addressed, the distribution of funds will take into account in equal shares verified emissions and GDP criteria. The
  distribution of funds will be conducted in line with the principle of subsidiarity and in respect of the right of the Member States to determine their own energy sources. The
  financial assistance from the Modernisation Fund could be provided through different forms. |

Text proposed by the Commission

CoR amendment

A Modernisation Fund should be established from 2 % of the total EU ETS allowances, and auctioned in accordance with the rules and modalities for auctions taking place on the Common Auction Platform set out in Regulation (EC) No 1031/2010. Member States who in 2013 had a GDP per capita at market exchange rates of below 60 % below the Union average should be eligible for funding from the Modernisation Fund and derogate up to 2030 from the principle of full auctioning for electricity generation by using the option of free allocation in order to transparently promote real investments modernising their energy sector while avoiding distortions of the internal energy market. The rules for governing the Modernisation Fund should provide a coherent, comprehensive and transparent framework to ensure the most efficient implementation possible, taking into account the need for easy access by all participants. The function of the governance structure should be commensurate with the purpose of ensuring the appropriate use of the funds. That governance structure should be composed of an investment board and a management committee and due account should be taken of the expertise of the EIB in the decision-making process unless support is provided to small projects through loans from a national promotional banks or through grants via a national programme sharing the objectives of the Modernisation Fund. Investments financed from the fund should be proposed by the Member States. To ensure that the investment needs in low income Member States are adequately addressed, the distribution of funds will take into account in equal shares verified emissions and GDP criteria. The financial assistance from the Modernisation Fund could be provided through different forms.

A Modernisation Fund should be established from 2 % of the total EU ETS allowances, and auctioned in accordance with the rules and modalities for auctions taking place on the Common Auction Platform set out in Regulation (EC) No 1031/2010. Member States who in 2013 had a GDP per capita at market exchange rates of below 60 % below the Union average should be eligible for funding from the Modernisation Fund and derogate up to 2030 from the principle of full auctioning for electricity generation by using the option of free allocation in order to transparently promote real investments modernising their energy sector while avoiding distortions of the internal energy market.
  Similarly, the Modernisation Fund should be open to NUTS 2 regions in Member States with clear internal imbalances, in order to boost the revitalisation and modernisation of the energy sector.
  The rules for governing the Modernisation Fund should provide a coherent, comprehensive and transparent framework to ensure the most efficient implementation possible, taking into account the need for easy access by all participants. The function of the governance structure should be commensurate with the purpose of ensuring the appropriate use of the funds. That governance structure should be composed of an investment board and a management committee and due account should be taken of the expertise of the EIB in the decision-making process unless support is provided to small projects through loans from a national promotional banks or through grants via a national programme sharing the objectives of the Modernisation Fund. Investments financed from the fund should be proposed by the Member States. To ensure that the investment needs in low income Member States are adequately addressed, the distribution of funds will take into account in equal shares verified emissions and GDP criteria. The
  distribution of funds will be conducted in line with the principle of subsidiarity and in respect of the right of the Member States to determine their own energy sources. The
  financial assistance from the Modernisation Fund could be provided through different forms.

Reason

The Committee of the Regions calls for support from the Modernisation Fund to be open to NUTS 2 regions. While supporting the principle of solidarity and the plans to continue the allocation of free allowances in order to modernise the energy sectors of Member States whose GDP per capita was below 60 % of the EU average in 2013, it calls for the value of GDP per capita of the NUTS 2 regions also to be taken into consideration in the allocation of allowances, since it would be simplistic to consider only national GDP per capita in Member States with significant regional imbalances. A Member State’s right to determine the choice between different energy sources is expressed in Article 194(2) TFEU.

Amendment 5

Recital 12

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The European Council confirmed that the modalities, including transparency, of the optional free allocation to modernise the energy sector in certain Member States should be improved. Investments with a value of EUR 10 million or more should be selected by the Member State concerned through a competitive bidding process on the basis of clear and transparent rules to ensure that free allocation is used to promote real investments modernising the energy sector in line with the Energy Union objectives. Investments with a value of less than EUR 10 million should also be eligible for funding from the free allocation. The Member State concerned should select such investments based on clear and transparent criteria. The results of this selection process should be subject to public consultation. The public should be duly kept informed at the stage of the selection of investment projects as well as of their implementation. | The European Council confirmed that the modalities, including transparency, of the optional free allocation to modernise the energy sector in certain Member States should be improved. Investments with a value of EUR 10 million or more should be selected by the Member State concerned through a competitive bidding process on the basis of clear and transparent rules to ensure that free allocation is used to promote real investments modernising the energy sector in line with the Energy Union objectives. Investments with a value of less than EUR 10 million should also be eligible for funding from the free allocation. The Member State concerned should select such investments based on clear and transparent criteria. The results of this selection process should be subject to public consultation
  which takes account, in particular, of the views of local and regional authorities
  . The public should be duly kept informed at the stage of the selection of investment projects as well as of their implementation. |

Text proposed by the Commission

CoR amendment

The European Council confirmed that the modalities, including transparency, of the optional free allocation to modernise the energy sector in certain Member States should be improved. Investments with a value of EUR 10 million or more should be selected by the Member State concerned through a competitive bidding process on the basis of clear and transparent rules to ensure that free allocation is used to promote real investments modernising the energy sector in line with the Energy Union objectives. Investments with a value of less than EUR 10 million should also be eligible for funding from the free allocation. The Member State concerned should select such investments based on clear and transparent criteria. The results of this selection process should be subject to public consultation. The public should be duly kept informed at the stage of the selection of investment projects as well as of their implementation.

The European Council confirmed that the modalities, including transparency, of the optional free allocation to modernise the energy sector in certain Member States should be improved. Investments with a value of EUR 10 million or more should be selected by the Member State concerned through a competitive bidding process on the basis of clear and transparent rules to ensure that free allocation is used to promote real investments modernising the energy sector in line with the Energy Union objectives. Investments with a value of less than EUR 10 million should also be eligible for funding from the free allocation. The Member State concerned should select such investments based on clear and transparent criteria. The results of this selection process should be subject to public consultation
  which takes account, in particular, of the views of local and regional authorities
  . The public should be duly kept informed at the stage of the selection of investment projects as well as of their implementation.

Reason

As it believes that the role played by local and regional authorities in these policies should be enhanced rather than undervalued, the Committee of the Regions suggests making it compulsory for local and regional authorities also to be specifically consulted during public consultations on the results of the optional free allocation processes for the modernisation of the energy sector.

Amendment 6

New recital 13a

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| | The Paris Agreement reached during COP21 requires an effort to be made by all of the parties to that agreement to ensure that it is ratified and implemented quickly and in a more ambitious way. Greater emphasis should thus be placed on all initiatives or campaigns, including those of the local and regional level or geared towards it, which can contribute to achieving the targets set for cutting greenhouse gas emissions.


  A tool for monitoring environmental policies and sharing best practices and projects implemented at regional and local levels (e.g. linked to the Covenant of Mayors) could help to further subsidiarity and ensure that all tiers of government shoulder their responsibilities. |

Text proposed by the Commission

CoR amendment

The Paris Agreement reached during COP21 requires an effort to be made by all of the parties to that agreement to ensure that it is ratified and implemented quickly and in a more ambitious way. Greater emphasis should thus be placed on all initiatives or campaigns, including those of the local and regional level or geared towards it, which can contribute to achieving the targets set for cutting greenhouse gas emissions.


  A tool for monitoring environmental policies and sharing best practices and projects implemented at regional and local levels (e.g. linked to the Covenant of Mayors) could help to further subsidiarity and ensure that all tiers of government shoulder their responsibilities.

Reason

The Committee of the Regions calls for the Paris Agreement to be quickly followed by formal ratification and rigorous implementation. While the EU ETS may be one of the main mechanisms for helping to cut emissions and, therefore, for achieving the targets set, it cannot be the only instrument available to the EU. In this regard, the CoR agrees that it is important for inter-sectoral and climate policies to be consistent with other EU policies (especially those implemented through the Structural Funds) and, moreover, feels that a dedicated tool at local level could encourage this and enhance the role of the CoR itself.

Amendment 7

Article 1(4)(a)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Article 10 is amended as follows: | Article 10 is amended as follows: |
| (a) | three new subparagraphs are added to paragraph 1: |

Text proposed by the Commission

CoR amendment

Article 10 is amended as follows:

Article 10 is amended as follows:

(a)

three new subparagraphs are added to paragraph 1:

| (a) | three new subparagraphs are added to paragraph 1: |
| --- | --- |

(a)

three new subparagraphs are added to paragraph 1:

| | ‘From 2021 onwards, the share of allowances to be auctioned by Member States shall be 57 %. |
| --- | --- |

‘From 2021 onwards, the share of allowances to be auctioned by Member States shall be 57 %.

| | ‘From 2021 onwards, the share of allowances to be auctioned by Member States shall be
  at least
  57 %.
  In order to ensure that the EU ETS operates as effectively as possible, a mandatory increase in the percentage of allowances to be auctioned could be envisaged only if the international situation allows this without jeopardising the competitiveness of European industry. |
| --- | --- |

‘From 2021 onwards, the share of allowances to be auctioned by Member States shall be
  at least
  57 %.
  In order to ensure that the EU ETS operates as effectively as possible, a mandatory increase in the percentage of allowances to be auctioned could be envisaged only if the international situation allows this without jeopardising the competitiveness of European industry.

| | 2 % of the total quantity of allowances between 2021 and 2030 shall be auctioned to establish a fund to improve energy efficiency and modernise the energy systems of certain Member States as set out in Article 10d of this Directive (“the Modernisation Fund”). |
| --- | --- |

2 % of the total quantity of allowances between 2021 and 2030 shall be auctioned to establish a fund to improve energy efficiency and modernise the energy systems of certain Member States as set out in Article 10d of this Directive (“the Modernisation Fund”).

| | 2 % of the total quantity of allowances between 2021 and 2030 shall be auctioned to establish a fund to improve energy efficiency and modernise the energy systems of certain Member States as set out in Article 10d of this Directive (“the Modernisation Fund”). |
| --- | --- |

2 % of the total quantity of allowances between 2021 and 2030 shall be auctioned to establish a fund to improve energy efficiency and modernise the energy systems of certain Member States as set out in Article 10d of this Directive (“the Modernisation Fund”).

| | The total remaining quantity of allowances to be auctioned by Member States shall be distributed in accordance with paragraph 2.’; |
| --- | --- |

The total remaining quantity of allowances to be auctioned by Member States shall be distributed in accordance with paragraph 2.’;

| | The total remaining quantity of allowances to be auctioned by Member States shall be distributed in accordance with paragraph 2.’; |
| --- | --- |

The total remaining quantity of allowances to be auctioned by Member States shall be distributed in accordance with paragraph 2.’;

Reason

The Committee of the Regions believes that the percentage of allowances to be auctioned, which was 57 % in 2013-2020, should be increased gradually by establishing set timeframes to make it easier to achieve the ambitious targets we have set ourselves. Indeed, the CoR believes that ambitious targets are crucial to encouraging progress in this area and therefore welcomes the increase in the annual reduction factor to 2,2 % from 2021 onwards. Nevertheless, in order to avoid the risk of carbon leakage and preserve Europe’s competitiveness, the Committee also endorses the decision to continue with the free allocation of part of the allowances. However, these measures should be regarded as exceptional and must be revised and updated gradually as other global economies adopt similar instruments to combat emissions.

Amendment 8

Article 1(1)(5)(f)

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| in paragraph 8, the first, second and third subparagraphs of paragraph 8 are replaced by the following: | in paragraph 8, the first, second and third subparagraphs of paragraph 8 are replaced by the following: |
| ‘400 million allowances shall be available to support innovation in low-carbon technologies and processes in industrial sectors listed in Annex I, and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe capture and geological storage (CCS) of CO2 as well as demonstration projects of innovative renewable energy technologies, in the territory of the Union. | ‘400 million allowances shall be available to support innovation in low-carbon technologies and processes in industrial sectors listed in Annex I, and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe
  and cost-effective
  capture and geological storage (CCS) of CO2

  or the capture and utilisation of CO2 in industrial processes (CCU)
  as well as demonstration projects of innovative renewable energy
  and energy efficiency
  technologies, in the territory of the Union. |
| The allowances shall be made available for innovation in low-carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of CCS and innovative renewable energy technologies that are not yet commercially viable in geographically balanced locations. In order to promote innovative projects, up to 60 % of the relevant costs of projects may be supported, out of which up to 40 % may not be dependent on verified avoidance of greenhouse gas emissions provided that pre-determined milestones are attained taking into account the technology deployed. | The allowances shall be made available for innovation in low-carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of CCS and innovative renewable energy technologies that are not yet commercially viable in geographically balanced locations. In order to promote innovative projects, up to 60 % of the relevant costs of projects may be supported, out of which up to 40 % may not be dependent on verified avoidance of greenhouse gas emissions provided that pre-determined milestones are attained taking into account the technology deployed. |
| In addition, 50 million unallocated allowances from the market stability reserve established by Decision (EU) 2015/... shall supplement any existing resources remaining under this paragraph for projects referred to above, with projects in all Member States including small-scale projects, before 2021. Projects shall be selected on the basis of objective and transparent criteria. | In addition, 50 million unallocated allowances from the market stability reserve established by Decision (EU) 2015/... shall supplement any existing resources remaining under this paragraph for projects referred to above, with projects in all Member States including small-scale projects, before 2021. Projects shall be selected on the basis of objective and transparent criteria. |
| The Commission shall be empowered to adopt a delegated act in accordance with Article 23.’; | The Commission shall be empowered to adopt a delegated act in accordance with Article 23.’; |

Text proposed by the Commission

CoR amendment

in paragraph 8, the first, second and third subparagraphs of paragraph 8 are replaced by the following:

in paragraph 8, the first, second and third subparagraphs of paragraph 8 are replaced by the following:

‘400 million allowances shall be available to support innovation in low-carbon technologies and processes in industrial sectors listed in Annex I, and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe capture and geological storage (CCS) of CO2 as well as demonstration projects of innovative renewable energy technologies, in the territory of the Union.

‘400 million allowances shall be available to support innovation in low-carbon technologies and processes in industrial sectors listed in Annex I, and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe
  and cost-effective
  capture and geological storage (CCS) of CO2

  or the capture and utilisation of CO2 in industrial processes (CCU)
  as well as demonstration projects of innovative renewable energy
  and energy efficiency
  technologies, in the territory of the Union.

The allowances shall be made available for innovation in low-carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of CCS and innovative renewable energy technologies that are not yet commercially viable in geographically balanced locations. In order to promote innovative projects, up to 60 % of the relevant costs of projects may be supported, out of which up to 40 % may not be dependent on verified avoidance of greenhouse gas emissions provided that pre-determined milestones are attained taking into account the technology deployed.

The allowances shall be made available for innovation in low-carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of CCS and innovative renewable energy technologies that are not yet commercially viable in geographically balanced locations. In order to promote innovative projects, up to 60 % of the relevant costs of projects may be supported, out of which up to 40 % may not be dependent on verified avoidance of greenhouse gas emissions provided that pre-determined milestones are attained taking into account the technology deployed.

In addition, 50 million unallocated allowances from the market stability reserve established by Decision (EU) 2015/... shall supplement any existing resources remaining under this paragraph for projects referred to above, with projects in all Member States including small-scale projects, before 2021. Projects shall be selected on the basis of objective and transparent criteria.

In addition, 50 million unallocated allowances from the market stability reserve established by Decision (EU) 2015/... shall supplement any existing resources remaining under this paragraph for projects referred to above, with projects in all Member States including small-scale projects, before 2021. Projects shall be selected on the basis of objective and transparent criteria.

The Commission shall be empowered to adopt a delegated act in accordance with Article 23.’;

The Commission shall be empowered to adopt a delegated act in accordance with Article 23.’;

Reason

It would be worth making direct reference to energy efficiency and the whole field of technology relating to the capture and utilisation of CO2 (CCU) as a raw material in other industrial processes. Testing is already underway in this field, and should a sufficient level of technological maturity be reached, it would be a much better prospect than CCS.

Amendment 9

Article 1(6) new Article 10c point 1

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| 1.   By derogation from Article 10a(1) to (5), Member States which had in 2013 a GDP per capita in EUR at market prices below 60 % of the Union average may give a transitional free allocation to installations for electricity production for the modernisation of the energy sector. | 1.   By derogation from Article 10a(1) to (5), Member States
  and NUTS 2 regions in Member States with clear internal imbalances
  which had in 2013 a GDP per capita in EUR at market prices below 60 % of the Union average may give a transitional free allocation to installations for electricity production for the modernisation of the energy sector. |

Text proposed by the Commission

CoR amendment

1.   By derogation from Article 10a(1) to (5), Member States which had in 2013 a GDP per capita in EUR at market prices below 60 % of the Union average may give a transitional free allocation to installations for electricity production for the modernisation of the energy sector.

1.   By derogation from Article 10a(1) to (5), Member States
  and NUTS 2 regions in Member States with clear internal imbalances
  which had in 2013 a GDP per capita in EUR at market prices below 60 % of the Union average may give a transitional free allocation to installations for electricity production for the modernisation of the energy sector.

Reason

The Committee of the Regions calls for support from the Modernisation Fund to be open to NUTS 2 regions. While supporting the principle of solidarity and the plans to continue the allocation of free allowances in order to modernise the energy sectors of Member States whose GDP per capita was below 60 % of the EU average in 2013, it calls for the value of GDP per capita of the NUTS 2 regions also to be taken into consideration in the allocation of allowances, since it would be simplistic to consider only national GDP per capita in Member States with significant regional imbalances.

II.   POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

| 1. | stresses the importance of involving local and regional authorities in this area since they have considerable expertise thanks to their frontline role in combating climate change as they are, by their very nature, the authorities closest to the public and the first to manage the response to environmental emergencies; |
| --- | --- |

1.

stresses the importance of involving local and regional authorities in this area since they have considerable expertise thanks to their frontline role in combating climate change as they are, by their very nature, the authorities closest to the public and the first to manage the response to environmental emergencies;

| 2. | calls on all major international stakeholders (businesses, the financial sector, governments, the United Nations, NGOs and civil society) to work together with all levels of government to provide a coordinated and effective response to environmental and climate emergencies, in line with the outcome of COP21 in Paris; takes note in this context of Communication COM(2016) 110 final ‘The Road from Paris’ which will be analysed more in depth by a future CoR opinion; regrets, however, the relative weakness of the reference to the role of a reformed ETS in implementing the Paris agreement and the lack of recognition of the regional dimension in this process; |
| --- | --- |

2.

calls on all major international stakeholders (businesses, the financial sector, governments, the United Nations, NGOs and civil society) to work together with all levels of government to provide a coordinated and effective response to environmental and climate emergencies, in line with the outcome of COP21 in Paris; takes note in this context of Communication COM(2016) 110 final ‘The Road from Paris’ which will be analysed more in depth by a future CoR opinion; regrets, however, the relative weakness of the reference to the role of a reformed ETS in implementing the Paris agreement and the lack of recognition of the regional dimension in this process;

| 3. | welcomes the outcome of COP21 as regards the common will to work together towards an ambitious goal, and endorses the decision to have five-yearly reviews of the various targets, so that they are always adequate; underlines, however, that the opportunity was missed to address the risk of carbon leakage at global level and provide responses; |
| --- | --- |

3.

welcomes the outcome of COP21 as regards the common will to work together towards an ambitious goal, and endorses the decision to have five-yearly reviews of the various targets, so that they are always adequate; underlines, however, that the opportunity was missed to address the risk of carbon leakage at global level and provide responses;

| 4. | highlights the importance of continuously enhancing the integration of the ETS and policies to promote renewable sources of energy and energy efficiency; in this context, flags up the need to simplify and harmonise legislation in this area; |
| --- | --- |

4.

highlights the importance of continuously enhancing the integration of the ETS and policies to promote renewable sources of energy and energy efficiency; in this context, flags up the need to simplify and harmonise legislation in this area;

| 5. | the EU ETS Directive is an existing EU policy instrument under EU environmental law. The proposed amending Directive does not raise any issue regarding its compliance with the principle of subsidiarity, because tackling climate change and its effects is clearly a trans-boundary issue and therefore the objectives of this Directive cannot be sufficiently achieved by the Member States, but better at EU level. The proposed amending Directive does also not go beyond what is necessary in form or content in order to achieve the objective of implementing the EU’s greenhouse gas emission reduction target for 2030 in a cost-effective manner and thus complies with the principle of proportionality; |
| --- | --- |

5.

the EU ETS Directive is an existing EU policy instrument under EU environmental law. The proposed amending Directive does not raise any issue regarding its compliance with the principle of subsidiarity, because tackling climate change and its effects is clearly a trans-boundary issue and therefore the objectives of this Directive cannot be sufficiently achieved by the Member States, but better at EU level. The proposed amending Directive does also not go beyond what is necessary in form or content in order to achieve the objective of implementing the EU’s greenhouse gas emission reduction target for 2030 in a cost-effective manner and thus complies with the principle of proportionality;

| 6. | recognises the Europe 2020 goals as priorities and argues that they are certainly compatible with the objective of preserving a strong, competitive and state-of-the-art European industry, for which rules are not perceived as a punitive mechanism, but as incentives for greater efficiency and modernisation. It therefore asks the European Commission to reflect also on the concept of the ‘carbon footprint’ of products and to consider how to promote more sustainable consumption; |
| --- | --- |

6.

recognises the Europe 2020 goals as priorities and argues that they are certainly compatible with the objective of preserving a strong, competitive and state-of-the-art European industry, for which rules are not perceived as a punitive mechanism, but as incentives for greater efficiency and modernisation. It therefore asks the European Commission to reflect also on the concept of the ‘carbon footprint’ of products and to consider how to promote more sustainable consumption;

| 7. | highlights the importance of tackling the imbalance between supply and demand on the allowances market, helping to guarantee that the price of CO2 emissions is more strongly influenced by medium- and long-term emissions reductions and encouraging investments in low-carbon technologies. Also points out that, as the market stability reserve aims to make the supply of allowances auctioned in the periods straddling two trading periods more flexible, the amendments planned by the proposal for a directive should help to avoid major variations in the number of allowances auctioned and guarantee that these allowances are distributed fairly each year; |
| --- | --- |

7.

highlights the importance of tackling the imbalance between supply and demand on the allowances market, helping to guarantee that the price of CO2 emissions is more strongly influenced by medium- and long-term emissions reductions and encouraging investments in low-carbon technologies. Also points out that, as the market stability reserve aims to make the supply of allowances auctioned in the periods straddling two trading periods more flexible, the amendments planned by the proposal for a directive should help to avoid major variations in the number of allowances auctioned and guarantee that these allowances are distributed fairly each year;

| 8. | welcomes the Commission’s proposal to update the current legislation on the EU ETS, and the choice of a directive as legislative instrument; |
| --- | --- |

8.

welcomes the Commission’s proposal to update the current legislation on the EU ETS, and the choice of a directive as legislative instrument;

| 9. | highlights the observations made by the European Court of Auditors, to the effect that there are ‘significant weaknesses’ in the implementation of the EU ETS, and makes recommendations with a view to improving the integrity and implementation of the system, incorporating the notion of industrial efficiency to ensure that the EU economy is fully competitive; |
| --- | --- |

9.

highlights the observations made by the European Court of Auditors, to the effect that there are ‘significant weaknesses’ in the implementation of the EU ETS, and makes recommendations with a view to improving the integrity and implementation of the system, incorporating the notion of industrial efficiency to ensure that the EU economy is fully competitive;

| 10. | points out, as already highlighted in several previous opinions (1), that one of the problems encountered so far in implementing the EU ETS is the price of carbon, which is often considered inefficient. In this respect, the CoR believes that the EU’s aim should be to foster proper pricing at international level and prevent fluctuations purely due to speculation; |
| --- | --- |

10.

points out, as already highlighted in several previous opinions (1), that one of the problems encountered so far in implementing the EU ETS is the price of carbon, which is often considered inefficient. In this respect, the CoR believes that the EU’s aim should be to foster proper pricing at international level and prevent fluctuations purely due to speculation;

| 11. | points out that the directive establishing the EU ETS is one part of a more comprehensive system of measures and must not preclude the possibility for individual Member States also to introduce a carbon tax, aimed at fostering innovation by creating competitive advantages, as has already been done in Norway and Sweden, for example; |
| --- | --- |

11.

points out that the directive establishing the EU ETS is one part of a more comprehensive system of measures and must not preclude the possibility for individual Member States also to introduce a carbon tax, aimed at fostering innovation by creating competitive advantages, as has already been done in Norway and Sweden, for example;

| 12. | supports the principle that all sectors of the economy, including those that are not covered by the EU ETS, must contribute to achieving emission reductions, thereby increasing environmental sustainability while, at the same time, ensuring social sustainability. Therefore, encourages the Member States to step up their efforts in sectors not covered by the EU ETS, given that they contribute to more than 50 % of emissions. To this end, suggests that consideration be given to revising the subsidies provided for in the various sectors, in order to spur the market towards innovative, efficient solutions, and to extending the number of sectors covered by the ETS, for example including emissions from the (maritime and land) transport sector and the construction sector; |
| --- | --- |

12.

supports the principle that all sectors of the economy, including those that are not covered by the EU ETS, must contribute to achieving emission reductions, thereby increasing environmental sustainability while, at the same time, ensuring social sustainability. Therefore, encourages the Member States to step up their efforts in sectors not covered by the EU ETS, given that they contribute to more than 50 % of emissions. To this end, suggests that consideration be given to revising the subsidies provided for in the various sectors, in order to spur the market towards innovative, efficient solutions, and to extending the number of sectors covered by the ETS, for example including emissions from the (maritime and land) transport sector and the construction sector;

| 13. | strongly recommends that the reform of the system aim at EU-wide harmonisation of the mechanisms compensating for the indirect costs incurred by industry (in order to avoid distortions of the internal market due to regional competition) and that the system reward the best performers; |
| --- | --- |

13.

strongly recommends that the reform of the system aim at EU-wide harmonisation of the mechanisms compensating for the indirect costs incurred by industry (in order to avoid distortions of the internal market due to regional competition) and that the system reward the best performers;

| 14. | hopes that the adoption of an emissions trading system by China from 2017 (2) will also encourage other players on the world stage, speeding up convergence towards a zero-carbon economy and leading to phasing-out of the system of free allocations of allowances. However, various forms of support and incentives to switch from fossil energy production to renewable energies should first be considered as alternatives to free allocation; |
| --- | --- |

14.

hopes that the adoption of an emissions trading system by China from 2017 (2) will also encourage other players on the world stage, speeding up convergence towards a zero-carbon economy and leading to phasing-out of the system of free allocations of allowances. However, various forms of support and incentives to switch from fossil energy production to renewable energies should first be considered as alternatives to free allocation;

| 15. | welcomes the intention to improve existing legislation by bolstering transparency through more frequently updated, robust and verified data. Thus requests that the technically and economically realistic benchmarks are updated before the trading period and are underpinned by sound industrial data; |
| --- | --- |

15.

welcomes the intention to improve existing legislation by bolstering transparency through more frequently updated, robust and verified data. Thus requests that the technically and economically realistic benchmarks are updated before the trading period and are underpinned by sound industrial data;

| 16. | considers it essential for the allocation of public sector climate financing to continue beyond 2020 and hopes that this funding will already begin to play an increasingly central role in the EU’s financial framework as from the mid-term review of the main European funding programmes, in particular Horizon 2020; |
| --- | --- |

16.

considers it essential for the allocation of public sector climate financing to continue beyond 2020 and hopes that this funding will already begin to play an increasingly central role in the EU’s financial framework as from the mid-term review of the main European funding programmes, in particular Horizon 2020;

| 17. | recommends using the leverage afforded by European foreign and trade policies (with particular reference to free trade agreements) to speed up convergence of non-EU countries towards the EU ETS, by promoting an international framework conducive to reaching broader aims; |
| --- | --- |

17.

recommends using the leverage afforded by European foreign and trade policies (with particular reference to free trade agreements) to speed up convergence of non-EU countries towards the EU ETS, by promoting an international framework conducive to reaching broader aims;

| 18. | calls for the extension of the EU ETS to aviation emissions to be tackled as soon as possible in order to promote continuous emission reductions, including through technological advances that make European carriers more globally competitive and leaders in sustainability. |
| --- | --- |

18.

calls for the extension of the EU ETS to aviation emissions to be tackled as soon as possible in order to promote continuous emission reductions, including through technological advances that make European carriers more globally competitive and leaders in sustainability.

Brussels, 7 April 2016.

The President of the European Committee of the Regions

Markku MARKKULA

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(1)  ENVE-V-047 A policy framework for climate and energy in the period from 2020 to 2030 and ENVE-V-038 Green Paper on framing 2030 climate and energy policy.

1

A policy framework for climate and energy in the period from 2020 to 2030

Green Paper on framing 2030 climate and energy policy

(2)  As announced by the Chinese president, Xi Jinping, on 30 September 2015, during his visit to Washington.

2

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| 1.7.2016 | EN | Official Journal of the European Union | C 240/72 |
| --- | --- | --- | --- |

1.7.2016

EN

Official Journal of the European Union

C 240/72

---

Opinion of the European Committee of the Regions — Modernisation of the EU copyright rules

(2016/C 240/11)

| Rapporteur: | Arnoldas ABRAMAVIČIUS (LT/EPP) Member of Zarasai District Municipal Council |
| --- | --- |
| Reference document: | Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Towards a modern, more European copyright framework
  COM(2015) 626 — final
  Proposal for a Regulation of the European Parliament and of the Council on ensuring the cross-border portability of online content services in the internal market
  COM(2015) 627 — final |

Rapporteur:

Arnoldas ABRAMAVIČIUS (LT/EPP) Member of Zarasai District Municipal Council

Reference document:

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — Towards a modern, more European copyright framework

COM(2015) 626 — final

Proposal for a Regulation of the European Parliament and of the Council on ensuring the cross-border portability of online content services in the internal market

COM(2015) 627 — final

I.   RECOMMENDATIONS FOR AMENDMENTS

Amendment 1

Proposal for a Regulation

Recital 1

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Since the internal market comprises an area without internal frontiers relying, inter alia, on the free movement of services and persons, it is necessary to provide that consumers can use online content services which offer access to content such as music, games, films or sporting events not only in their Member State of residence but also when they are temporarily present in other Member States of the Union. Therefore, barriers that hamper access and use of such online content services cross border should be eliminated. | Since the internal market comprises an area without internal frontiers relying, inter alia, on the free movement of services and persons, it is necessary to provide that consumers can use online content services which offer access to content such as music, games, films or sporting events not only in their Member State of residence but also when they are temporarily present in other Member States of the Union. Therefore, barriers that hamper access and use of such online content services cross border should be eliminated
  . At the same time, verification of the subscriber’s Member State of residence should avoid turning portability into permanent cross-border access
  . |

Text proposed by the Commission

CoR amendment

Since the internal market comprises an area without internal frontiers relying, inter alia, on the free movement of services and persons, it is necessary to provide that consumers can use online content services which offer access to content such as music, games, films or sporting events not only in their Member State of residence but also when they are temporarily present in other Member States of the Union. Therefore, barriers that hamper access and use of such online content services cross border should be eliminated.

Since the internal market comprises an area without internal frontiers relying, inter alia, on the free movement of services and persons, it is necessary to provide that consumers can use online content services which offer access to content such as music, games, films or sporting events not only in their Member State of residence but also when they are temporarily present in other Member States of the Union. Therefore, barriers that hamper access and use of such online content services cross border should be eliminated
  . At the same time, verification of the subscriber’s Member State of residence should avoid turning portability into permanent cross-border access
  .

Reason

Right holders need to be sure that portability covers only the most common examples of travel for business, tourism or study purposes, without resulting in the permanent availability of content protected at EU level.

Amendment 2

Proposal for a Regulation

Recital 4

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| There are a number of barriers which hinder the provision of these services to consumers temporarily present in another Member State. Certain online services include content such as music, games or films which are protected by copyright and/or related rights under Union law. In particular, the obstacles to cross-border portability of online content services stem from the fact that the rights for the transmission of content protected by copyright and/or related rights such as audiovisual works are often licensed on a territorial basis as well as from the fact that online service providers may choose to serve specific markets only. | There are a number of barriers which hinder the provision of these services to consumers temporarily present in another Member State. Certain online services include content such as music, games or films which are protected by copyright and/or related rights under Union law. In particular, the obstacles to cross-border portability of online content services stem from the fact that the rights for the transmission of content protected by copyright and/or related rights such as audiovisual works are often licensed on a territorial basis as well as from the fact that online service providers
  to some extent
  , choose to serve specific markets only. |

Text proposed by the Commission

CoR amendment

There are a number of barriers which hinder the provision of these services to consumers temporarily present in another Member State. Certain online services include content such as music, games or films which are protected by copyright and/or related rights under Union law. In particular, the obstacles to cross-border portability of online content services stem from the fact that the rights for the transmission of content protected by copyright and/or related rights such as audiovisual works are often licensed on a territorial basis as well as from the fact that online service providers may choose to serve specific markets only.

There are a number of barriers which hinder the provision of these services to consumers temporarily present in another Member State. Certain online services include content such as music, games or films which are protected by copyright and/or related rights under Union law. In particular, the obstacles to cross-border portability of online content services stem from the fact that the rights for the transmission of content protected by copyright and/or related rights such as audiovisual works are often licensed on a territorial basis as well as from the fact that online service providers
  to some extent
  , choose to serve specific markets only.

Reason

Online service providers, like any other business, are free to decide which markets to enter for their own internal reasons. If, as a result, content is less available, this should be treated as a secondary effect, and not as a deliberately restrictive approach.

Amendment 3

Proposal for a Regulation

Recital 8

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Therefore, providers of online content services that make use of works or other protected subject-matter, such as books, audiovisual works, recorded music or broadcasts must have the rights to use such content for the relevant territories. | Therefore, providers of online content services that make use of works or other protected subject-matter, such as books, audiovisual works, recorded music or broadcasts must have the rights to use such content for the relevant territories
  , including through the use of multi-territory or pan-European licensing where conditions allow this, for instance: where there is a market, consumer demand, the necessary technology and a guarantee of fair remuneration
  . |

Text proposed by the Commission

CoR amendment

Therefore, providers of online content services that make use of works or other protected subject-matter, such as books, audiovisual works, recorded music or broadcasts must have the rights to use such content for the relevant territories.

Therefore, providers of online content services that make use of works or other protected subject-matter, such as books, audiovisual works, recorded music or broadcasts must have the rights to use such content for the relevant territories
  , including through the use of multi-territory or pan-European licensing where conditions allow this, for instance: where there is a market, consumer demand, the necessary technology and a guarantee of fair remuneration
  .

Reason

It is worth mentioning multi-territory licensing, which — although not always available — significantly facilitates the dissemination of content.

Amendment 4

Proposal for a Regulation

Recital 9

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The transmission by the online service provider of content that is protected by copyright and related rights requires the authorisation of the relevant right holders such as authors, performers, producers or broadcasting organisations for the content that would be included in the transmission. This is equally true when such transmission takes place for the purpose of allowing a consumer to carry out a download in order to use an online content service. | The transmission by the online service provider of content that is protected by copyright and related rights requires the authorisation of the relevant right holders such as authors, performers, producers or broadcasting organisations
  , exercising the exclusive rights for which they qualify,
  for the content that would be included in the transmission. This is equally true when such transmission takes place for the purpose of allowing a consumer to carry out a download in order to use an online content service. |

Text proposed by the Commission

CoR amendment

The transmission by the online service provider of content that is protected by copyright and related rights requires the authorisation of the relevant right holders such as authors, performers, producers or broadcasting organisations for the content that would be included in the transmission. This is equally true when such transmission takes place for the purpose of allowing a consumer to carry out a download in order to use an online content service.

The transmission by the online service provider of content that is protected by copyright and related rights requires the authorisation of the relevant right holders such as authors, performers, producers or broadcasting organisations
  , exercising the exclusive rights for which they qualify,
  for the content that would be included in the transmission. This is equally true when such transmission takes place for the purpose of allowing a consumer to carry out a download in order to use an online content service.

Reason

Right holders are entitled to protect the exclusive rights for which they individually qualify, as set out in Directive 2014/26/EU.

Amendment 5

Proposal for a Regulation

Recital 10

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| The acquisition of a licence for the relevant rights is not always possible, notably when rights in content are licensed on an exclusive basis. In order to ensure the territorial exclusivity, online service providers often undertake, in their licence contracts with right holders, including broadcasting organisations or events organisers, to prevent their subscribers from accessing and using their service outside the territory for which the service provider holds the licence. These contractual restrictions imposed on service providers require providers to take measures such as disallowing access to their services from IP addresses located outside the territory concerned. Therefore, one of the obstacles to the cross-border portability of online content services is to be found in the contracts concluded between the online service providers and their subscribers, which in turn reflect the territorial restriction clauses included in contracts concluded between those service providers and right holders. | The acquisition of a licence for the relevant rights is not always possible, notably when rights in content are licensed on an exclusive basis. In order to ensure the territorial exclusivity
  (and a competitive advantage)
  , online service providers often undertake, in their licence contracts with right holders, including broadcasting organisations or events organisers, to prevent their subscribers from accessing and using their service outside the territory for which the service provider holds the licence. These contractual restrictions imposed on service providers require providers to take measures such as disallowing access to their services from IP addresses located outside the territory concerned. Therefore, one of the obstacles to the cross-border portability of online content services is to be found in the contracts concluded between the online service providers and their subscribers, which in turn reflect the territorial restriction clauses included in contracts concluded between those service providers and right holders. |

Text proposed by the Commission

CoR amendment

The acquisition of a licence for the relevant rights is not always possible, notably when rights in content are licensed on an exclusive basis. In order to ensure the territorial exclusivity, online service providers often undertake, in their licence contracts with right holders, including broadcasting organisations or events organisers, to prevent their subscribers from accessing and using their service outside the territory for which the service provider holds the licence. These contractual restrictions imposed on service providers require providers to take measures such as disallowing access to their services from IP addresses located outside the territory concerned. Therefore, one of the obstacles to the cross-border portability of online content services is to be found in the contracts concluded between the online service providers and their subscribers, which in turn reflect the territorial restriction clauses included in contracts concluded between those service providers and right holders.

The acquisition of a licence for the relevant rights is not always possible, notably when rights in content are licensed on an exclusive basis. In order to ensure the territorial exclusivity
  (and a competitive advantage)
  , online service providers often undertake, in their licence contracts with right holders, including broadcasting organisations or events organisers, to prevent their subscribers from accessing and using their service outside the territory for which the service provider holds the licence. These contractual restrictions imposed on service providers require providers to take measures such as disallowing access to their services from IP addresses located outside the territory concerned. Therefore, one of the obstacles to the cross-border portability of online content services is to be found in the contracts concluded between the online service providers and their subscribers, which in turn reflect the territorial restriction clauses included in contracts concluded between those service providers and right holders.

Reason

Online service providers are entitled to choose to make specific content available in areas where it is likely to be more successful. In this respect disabling geo-blocking while travelling should be seen as an extension of the concept of territoriality and not as a first step towards its eventual abolition.

Amendment 6

Proposal for a Regulation

Recital 12

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Therefore, the objective of this Regulation is to adapt the legal framework in order to ensure that the licensing of rights no longer presents barriers to cross-border portability of online content services in the Union and that the cross-border portability can be ensured. | Therefore, the objective of this Regulation is to adapt the legal framework in order to ensure that the licensing of rights no longer presents barriers to cross-border portability of online content services in the Union and that the cross-border portability can be ensured
  by securing adequate flexibility for consumers, on the one hand, and the same degree of respect for the creative and commercial value of the content, on the other
  . |

Text proposed by the Commission

CoR amendment

Therefore, the objective of this Regulation is to adapt the legal framework in order to ensure that the licensing of rights no longer presents barriers to cross-border portability of online content services in the Union and that the cross-border portability can be ensured.

Therefore, the objective of this Regulation is to adapt the legal framework in order to ensure that the licensing of rights no longer presents barriers to cross-border portability of online content services in the Union and that the cross-border portability can be ensured
  by securing adequate flexibility for consumers, on the one hand, and the same degree of respect for the creative and commercial value of the content, on the other
  .

Reason

Consumer benefits should not come at the expense of creators and operators in the sector since these works could not exist without the former and could not be enjoyed without the latter.

Amendment 7

Proposal for a Regulation

Recital 23

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Service providers should ensure that their subscribers are properly informed about the conditions of enjoyment of online content services in Member States other than the Member State of residence of the subscribers. The Regulation enables right holders to require that the service provider make use of effective means in order to verify that the online content service is provided in conformity with this Regulation. It is necessary, however, to ensure that the required means are reasonable and do not go beyond what is necessary in order to achieve this purpose. Examples of the necessary technical and organisational measures may include sampling of IP address instead of constant monitoring of location, transparent information to the individuals about the methods used for the verification and its purposes, and appropriate security measures. Considering that for purposes of the verification what matters is not the location, but rather, in which Member State the subscriber is accessing the service, precise location data should not be collected and processed for this purpose. Similarly, where authentication of a subscriber is sufficient in order to deliver the service provided, identification of the subscriber should not be required. | Service providers should ensure that their subscribers are properly informed about the conditions of enjoyment of online content services in Member States other than the Member State of residence of the subscribers. The Regulation enables right holders to require that the service provider make use of effective means in order to verify that the online content service is provided in conformity with this Regulation. It is necessary, however, to ensure that the required means are reasonable and do not go beyond what is necessary in order to achieve this purpose. Examples of the necessary technical and organisational measures may include sampling of IP address instead of constant monitoring of location, transparent information to the individuals about the methods used for the verification and its purposes, and appropriate security measures. Considering that for purposes of the verification what matters is not the location, but rather, in which Member State the subscriber is accessing the service, precise location data should not be collected and processed for this purpose
  , provided that the location is not outside the EU
  . Similarly, where authentication of a subscriber is sufficient in order to deliver the service provided, identification of the subscriber should not be required. |

Text proposed by the Commission

CoR amendment

Service providers should ensure that their subscribers are properly informed about the conditions of enjoyment of online content services in Member States other than the Member State of residence of the subscribers. The Regulation enables right holders to require that the service provider make use of effective means in order to verify that the online content service is provided in conformity with this Regulation. It is necessary, however, to ensure that the required means are reasonable and do not go beyond what is necessary in order to achieve this purpose. Examples of the necessary technical and organisational measures may include sampling of IP address instead of constant monitoring of location, transparent information to the individuals about the methods used for the verification and its purposes, and appropriate security measures. Considering that for purposes of the verification what matters is not the location, but rather, in which Member State the subscriber is accessing the service, precise location data should not be collected and processed for this purpose. Similarly, where authentication of a subscriber is sufficient in order to deliver the service provided, identification of the subscriber should not be required.

Service providers should ensure that their subscribers are properly informed about the conditions of enjoyment of online content services in Member States other than the Member State of residence of the subscribers. The Regulation enables right holders to require that the service provider make use of effective means in order to verify that the online content service is provided in conformity with this Regulation. It is necessary, however, to ensure that the required means are reasonable and do not go beyond what is necessary in order to achieve this purpose. Examples of the necessary technical and organisational measures may include sampling of IP address instead of constant monitoring of location, transparent information to the individuals about the methods used for the verification and its purposes, and appropriate security measures. Considering that for purposes of the verification what matters is not the location, but rather, in which Member State the subscriber is accessing the service, precise location data should not be collected and processed for this purpose
  , provided that the location is not outside the EU
  . Similarly, where authentication of a subscriber is sufficient in order to deliver the service provided, identification of the subscriber should not be required.

Reason

Without precise location data, the provider’s ability to verify location is seriously impaired since it is in fact being assumed that any cross-border use will take place within the EU, which is not necessarily the case.

Amendment 8

Proposal for a Regulation

Article 2

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| For the purpose of this Regulation, the following definitions shall apply: | For the purpose of this Regulation, the following definitions shall apply: |
| (a) | ‘Subscriber’ means any consumer who, on the basis of a contract for the provision of an online content service with a provider, may access and use such service in the Member State of residence; |

Text proposed by the Commission

CoR amendment

For the purpose of this Regulation, the following definitions shall apply:

For the purpose of this Regulation, the following definitions shall apply:

(a)

‘Subscriber’ means any consumer who, on the basis of a contract for the provision of an online content service with a provider, may access and use such service in the Member State of residence;

| (a) | ‘Subscriber’ means any consumer who, on the basis of a contract for the provision of an online content service with a provider, may access and use such service in the Member State of residence; |
| --- | --- |

(a)

‘Subscriber’ means any consumer who, on the basis of a contract for the provision of an online content service with a provider, may access and use such service in the Member State of residence;

| (b) | ‘Consumer’ means any natural person who, in contracts covered by this Regulation, is acting for purposes which are outside his or her trade, business, craft or profession; |
| --- | --- |

(b)

‘Consumer’ means any natural person who, in contracts covered by this Regulation, is acting for purposes which are outside his or her trade, business, craft or profession;

| (b) | ‘Consumer’ means any natural person who, in contracts covered by this Regulation, is acting for purposes which are outside his or her trade, business, craft or profession; |
| --- | --- |

(b)

‘Consumer’ means any natural person who, in contracts covered by this Regulation, is acting for purposes which are outside his or her trade, business, craft or profession;

| (c) | ‘Member State of residence’ means the Member State where the subscriber is habitually residing; |
| --- | --- |

(c)

‘Member State of residence’ means the Member State where the subscriber is habitually residing;

| (c) | ‘Member State of residence’ means the Member State where the subscriber is habitually residing; |
| --- | --- |

(c)

‘Member State of residence’ means the Member State where the subscriber is habitually residing;

| (d) | ‘Temporarily present’ means a presence of a subscriber in a Member State other than the Member State of residence; |
| --- | --- |

(d)

‘Temporarily present’ means a presence of a subscriber in a Member State other than the Member State of residence;

| (d) | ‘Temporarily present’ means a presence of a subscriber in a Member State other than the Member State of residence,
  which is verified so that portability does not become permanent cross-border access
  ; |
| --- | --- |

(d)

‘Temporarily present’ means a presence of a subscriber in a Member State other than the Member State of residence,
  which is verified so that portability does not become permanent cross-border access
  ;

| (e) | ‘Online content service’ means a service as defined by Articles 56 and 57 of the Treaty on the Functioning of the European Union that a service provider is lawfully providing online in the Member State of residence on a portable basis and which is an audiovisual media service within the meaning of Directive 2010/13/EU or a service the main feature of which is the provision of access to and use of works, other protected subject matter or transmissions of broadcasting organisations, whether in a linear or an on-demand manner, which is provided to a subscriber on agreed terms either: |
| --- | --- |

(e)

‘Online content service’ means a service as defined by Articles 56 and 57 of the Treaty on the Functioning of the European Union that a service provider is lawfully providing online in the Member State of residence on a portable basis and which is an audiovisual media service within the meaning of Directive 2010/13/EU or a service the main feature of which is the provision of access to and use of works, other protected subject matter or transmissions of broadcasting organisations, whether in a linear or an on-demand manner, which is provided to a subscriber on agreed terms either:

| (e) | ‘Online content service’ means a service as defined by Articles 56 and 57 of the Treaty on the Functioning of the European Union that a service provider is lawfully providing online in the Member State of residence on a portable basis and which is an audiovisual media service within the meaning of Directive 2010/13/EU or a service the main feature of which is the provision of access to and use of works, other protected subject matter or transmissions of broadcasting organisations, whether in a linear or an on-demand manner, which is provided to a subscriber on agreed terms either: |
| --- | --- |

(e)

‘Online content service’ means a service as defined by Articles 56 and 57 of the Treaty on the Functioning of the European Union that a service provider is lawfully providing online in the Member State of residence on a portable basis and which is an audiovisual media service within the meaning of Directive 2010/13/EU or a service the main feature of which is the provision of access to and use of works, other protected subject matter or transmissions of broadcasting organisations, whether in a linear or an on-demand manner, which is provided to a subscriber on agreed terms either:

| | (1) | against payment of money; or |
| --- | --- | --- |

(1)

against payment of money; or

| | (1) | against payment of money; or |
| --- | --- | --- |

(1)

against payment of money; or

| | (2) | without payment of money provided that the subscriber’s Member State of residence is verified by the provider; |
| --- | --- | --- |

(2)

without payment of money provided that the subscriber’s Member State of residence is verified by the provider;

| | (2) | without payment of money provided that the subscriber’s Member State of residence is verified by the provider; |
| --- | --- | --- |

(2)

without payment of money provided that the subscriber’s Member State of residence is verified by the provider;

| (f) | ‘Portable’ means that subscribers can effectively access and use the online content service in the Member State of residence without being limited to a specific location. |
| --- | --- |

(f)

‘Portable’ means that subscribers can effectively access and use the online content service in the Member State of residence without being limited to a specific location.

| (f) | ‘Portable’ means that subscribers can effectively access and use the online content service in the Member State of residence without being limited to a specific location. |
| --- | --- |

(f)

‘Portable’ means that subscribers can effectively access and use the online content service in the Member State of residence without being limited to a specific location.

Reason

Right holders need to be sure that portability does not result in the permanent availability of content protected at EU level.

Amendment 9

Proposal for a Regulation

Article 8

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| (1) | This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. |

Text proposed by the Commission

CoR amendment

(1)

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

| (1) | This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. |
| --- | --- |

(1)

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

| (2) | It shall apply from [date:
  6
  months following the day of its publication]. |
| --- | --- |

(2)

It shall apply from [date:
  6
  months following the day of its publication].

| (2) | It shall apply from [date:
  12
  months following the day of its publication]. |
| --- | --- |

(2)

It shall apply from [date:
  12
  months following the day of its publication].

Reason

Given the significant number of contracts directly affected by the Regulation, the interested parties must be given enough time to amend the relevant provisions. For this reason, extending the deadline for its application to 12 months would contribute to achieving greater conformity.

Amendment 10

Proposal for a Regulation

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| This Regulation should apply to online content services which are provided against payment of money. Providers of such services are in a position to verify the Member State of residence of their subscribers. The right to use an online content service should be regarded as acquired against payment of money whether such payment is made directly to the provider of the online content service, or to another party such as a provider offering a package combining a telecommunications service and an online content service operated by another provider. | This Regulation should apply to online content services which are provided against payment of money. Providers of such services are in a position to verify the Member State of residence of their subscribers
  and verification should avoid turning portability into permanent cross-border access
  . The right to use an online content service should be regarded as acquired against payment of money whether such payment is made directly to the provider of the online content service, or to another party such as a provider offering a package combining a telecommunications service and an online content service operated by another provider. |

Text proposed by the Commission

CoR amendment

This Regulation should apply to online content services which are provided against payment of money. Providers of such services are in a position to verify the Member State of residence of their subscribers. The right to use an online content service should be regarded as acquired against payment of money whether such payment is made directly to the provider of the online content service, or to another party such as a provider offering a package combining a telecommunications service and an online content service operated by another provider.

This Regulation should apply to online content services which are provided against payment of money. Providers of such services are in a position to verify the Member State of residence of their subscribers
  and verification should avoid turning portability into permanent cross-border access
  . The right to use an online content service should be regarded as acquired against payment of money whether such payment is made directly to the provider of the online content service, or to another party such as a provider offering a package combining a telecommunications service and an online content service operated by another provider.

Reason

Self-explanatory

Amendment 11

Proposal for a Regulation

Article 17

| Text proposed by the Commission | CoR amendment |
| --- | --- |
| Online content services which are provided without payment of money are also included in the scope of this Regulation to the extent that providers verify the Member State of residence of their subscribers. Online content services which are provided without the payment of money and whose providers do not verify the Member State of residence of their subscribers should be outside the scope of this Regulation as their inclusion would involve a major change to the way these services are delivered and involve disproportionate costs. As concerns verification of the subscriber’s Member State of residence, information such as a payment of a licence fee for other services provided in the Member State of residence, the existence of a contract for internet or telephone connection, IP address or other means of authentication, should be relied upon, if they enable the provider to have reasonable indicators as to the Member State of residence of its subscribers. | Online content services which are provided without payment of money are also included in the scope of this Regulation to the extent that providers verify the Member State of residence of their subscribers. Online content services which are provided without the payment of money and whose providers do not verify the Member State of residence of their subscribers should be outside the scope of this Regulation as their inclusion would involve a major change to the way these services are delivered and involve disproportionate costs. As concerns verification of the subscriber’s Member State of residence, information such as a payment of a licence fee for other services provided in the Member State of residence, the existence of a contract for internet or telephone connection, IP address or other means of authentication, should be relied upon, if they enable the provider to have reasonable indicators as to the Member State of residence of its subscribers and to avoid abuses in portability rights. |

Text proposed by the Commission

CoR amendment

Online content services which are provided without payment of money are also included in the scope of this Regulation to the extent that providers verify the Member State of residence of their subscribers. Online content services which are provided without the payment of money and whose providers do not verify the Member State of residence of their subscribers should be outside the scope of this Regulation as their inclusion would involve a major change to the way these services are delivered and involve disproportionate costs. As concerns verification of the subscriber’s Member State of residence, information such as a payment of a licence fee for other services provided in the Member State of residence, the existence of a contract for internet or telephone connection, IP address or other means of authentication, should be relied upon, if they enable the provider to have reasonable indicators as to the Member State of residence of its subscribers.

Online content services which are provided without payment of money are also included in the scope of this Regulation to the extent that providers verify the Member State of residence of their subscribers. Online content services which are provided without the payment of money and whose providers do not verify the Member State of residence of their subscribers should be outside the scope of this Regulation as their inclusion would involve a major change to the way these services are delivered and involve disproportionate costs. As concerns verification of the subscriber’s Member State of residence, information such as a payment of a licence fee for other services provided in the Member State of residence, the existence of a contract for internet or telephone connection, IP address or other means of authentication, should be relied upon, if they enable the provider to have reasonable indicators as to the Member State of residence of its subscribers and to avoid abuses in portability rights.

Reason

Self-explanatory

II.   POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

Preliminary remarks

| 1. | welcomes the proposed measures concerning the internal market for e-communications designed to promote dynamic and sustainable growth in all economic sectors and to create jobs, as well as to ensure that copyright rules are modernised in light of the digital revolution and changes in consumer behaviour but regrets that the scope of the proposed regulation is limited to online content services and does not address other types of copyright in the digital single market; |
| --- | --- |

1.

welcomes the proposed measures concerning the internal market for e-communications designed to promote dynamic and sustainable growth in all economic sectors and to create jobs, as well as to ensure that copyright rules are modernised in light of the digital revolution and changes in consumer behaviour but regrets that the scope of the proposed regulation is limited to online content services and does not address other types of copyright in the digital single market;

| 2. | emphasises the key role and potential of local and regional authorities in the harmonisation of copyright rules, which should be considered in all future legislation designed to complete the digital single market; |
| --- | --- |

2.

emphasises the key role and potential of local and regional authorities in the harmonisation of copyright rules, which should be considered in all future legislation designed to complete the digital single market;

| 3. | notes that the Commission presents entirely persuasive arguments on the added value of legislating in this area at European Union level and thus is on compliance with the subsidiarity principle. The same applies to the arguments put forward concerning proportionality; |
| --- | --- |

3.

notes that the Commission presents entirely persuasive arguments on the added value of legislating in this area at European Union level and thus is on compliance with the subsidiarity principle. The same applies to the arguments put forward concerning proportionality;

| 4. | notes the important role that local and regional authorities play in providing digital services for citizens and creating and managing digital infrastructure, often in the context of cross-border or interregional cooperation; these services require immediate action to make balanced changes to any barriers to cross-border online activity, including differences between the contract and copyright laws of Member States; |
| --- | --- |

4.

notes the important role that local and regional authorities play in providing digital services for citizens and creating and managing digital infrastructure, often in the context of cross-border or interregional cooperation; these services require immediate action to make balanced changes to any barriers to cross-border online activity, including differences between the contract and copyright laws of Member States;

| 5. | draws attention to the importance of making public institutions accessible to individuals and businesses through electronic means, irrespective of their physical location, and therefore emphasises its support for the development of cross-border public services, especially those covering aspects of interoperability and e-identification, e-signatures, the electronic service of documents and other aspects of e-government; |
| --- | --- |

5.

draws attention to the importance of making public institutions accessible to individuals and businesses through electronic means, irrespective of their physical location, and therefore emphasises its support for the development of cross-border public services, especially those covering aspects of interoperability and e-identification, e-signatures, the electronic service of documents and other aspects of e-government;

| 6. | emphasises that the internet’s openness is a key driver for competitiveness, economic growth, social development and innovation and has led to exceptional levels of development with regard to online applications, content and services, resulting in a remarkable expansion in the supply of and demand for content and services; this openness has also been a major catalyst for the free circulation of knowledge, ideas and information, including in countries with limited access to independent means of communication (1); |
| --- | --- |

6.

emphasises that the internet’s openness is a key driver for competitiveness, economic growth, social development and innovation and has led to exceptional levels of development with regard to online applications, content and services, resulting in a remarkable expansion in the supply of and demand for content and services; this openness has also been a major catalyst for the free circulation of knowledge, ideas and information, including in countries with limited access to independent means of communication (1);

| 7. | points out that public services and the digital economy are important for European as well as local and regional growth. At the same time, cities and regions have a key role to play in creating public information databases, providing data security, developing the necessary digital skills, securing and facilitating funding for broadband networks and creating the right environment for the trans-regional and cross-border exchange of online services, which are all factors that can significantly boost the development of good quality services and make for balanced harmonisation of copyright rules; |
| --- | --- |

7.

points out that public services and the digital economy are important for European as well as local and regional growth. At the same time, cities and regions have a key role to play in creating public information databases, providing data security, developing the necessary digital skills, securing and facilitating funding for broadband networks and creating the right environment for the trans-regional and cross-border exchange of online services, which are all factors that can significantly boost the development of good quality services and make for balanced harmonisation of copyright rules;

| 8. | observes that it has already stressed the contribution that local and regional authorities can make during all stages of data collection and the provision of services to citizens and businesses (2). This can also be seen in practice: in Europe, there are many examples of the inherent potential of cooperation between regions, national authorities and research centres in the area of innovation and the interoperability of the public sector; |
| --- | --- |

8.

observes that it has already stressed the contribution that local and regional authorities can make during all stages of data collection and the provision of services to citizens and businesses (2). This can also be seen in practice: in Europe, there are many examples of the inherent potential of cooperation between regions, national authorities and research centres in the area of innovation and the interoperability of the public sector;

Copyright in the digital market

| 9. | supports the European Commission’s objective to modernise the rules in order to make creative content widely available across the whole of the EU, ensure a high level of protection for right holders and maintain a good balance with other public policy goals (such as education, research and innovation, or public access to public collections, including libraries, archives and museums, and — just as important — ensuring equal access for persons with disabilities) (3) in the digital environment; |
| --- | --- |

9.

supports the European Commission’s objective to modernise the rules in order to make creative content widely available across the whole of the EU, ensure a high level of protection for right holders and maintain a good balance with other public policy goals (such as education, research and innovation, or public access to public collections, including libraries, archives and museums, and — just as important — ensuring equal access for persons with disabilities) (3) in the digital environment;

| 10. | calls for the European Commission to include local and regional authorities among the main cultural policy-makers in the EU, recognising their statutory powers, their direct responsibility for managing the cultural heritage and their crucial role in policies to support the creative industries, including EU polices under the Creative Europe and Horizon 2020 programmes; |
| --- | --- |

10.

calls for the European Commission to include local and regional authorities among the main cultural policy-makers in the EU, recognising their statutory powers, their direct responsibility for managing the cultural heritage and their crucial role in policies to support the creative industries, including EU polices under the Creative Europe and Horizon 2020 programmes;

Ensuring wider access to content across the whole of the EU

| 11. | agrees that the EU should work gradually towards removing barriers to cross-border access to content and the distribution of works, but at the same time recommends ensuring that this will enable the single market to function in a way that actually allows authors and the cultural industries to expand their audience and economic activities and enhance the global competitiveness of Europe’s creative industries (in accessing international markets but also helping them to withstand international competition); |
| --- | --- |

11.

agrees that the EU should work gradually towards removing barriers to cross-border access to content and the distribution of works, but at the same time recommends ensuring that this will enable the single market to function in a way that actually allows authors and the cultural industries to expand their audience and economic activities and enhance the global competitiveness of Europe’s creative industries (in accessing international markets but also helping them to withstand international competition);

| 12. | supports the European Commission’s proposal for a regulation on the ‘portability’ of online content services, which seeks to enable users who have purchased online content or taken out a subscription in their country of origin to access them when they are temporarily present in another Member State; |
| --- | --- |

12.

supports the European Commission’s proposal for a regulation on the ‘portability’ of online content services, which seeks to enable users who have purchased online content or taken out a subscription in their country of origin to access them when they are temporarily present in another Member State;

| 13. | notes that ‘temporarily present’ should not lead to abuses, which would risk turning the portability of cross-border rights into permanent availability of content protected at EU level. This is why services providers should verify the Member State of residence of their subscribers; |
| --- | --- |

13.

notes that ‘temporarily present’ should not lead to abuses, which would risk turning the portability of cross-border rights into permanent availability of content protected at EU level. This is why services providers should verify the Member State of residence of their subscribers;

| 14. | supports the Commission’s commitment to addressing and removing unjustified geo-blocking provided that this does not lead to the abolition of the territorial principle, which would undermine national, regional and local cultural diversity in Europe (4). In this respect, disabling geo-blocking while travelling should be seen as an extension of the concept of territoriality and not as a first step towards its subsequent abolition; |
| --- | --- |

14.

supports the Commission’s commitment to addressing and removing unjustified geo-blocking provided that this does not lead to the abolition of the territorial principle, which would undermine national, regional and local cultural diversity in Europe (4). In this respect, disabling geo-blocking while travelling should be seen as an extension of the concept of territoriality and not as a first step towards its subsequent abolition;

| 15. | welcomes the Commission’s intention to improve the online cross-border distribution of television and radio programmes in light of the findings of the review of the Satellite and Cable Directive (5), thus recognising the key role that television and radio play in promoting the creative industry and facilitating, wherever possible, the uniform treatment of online and offline distribution channels for the purposes of copyright and related rights; |
| --- | --- |

15.

welcomes the Commission’s intention to improve the online cross-border distribution of television and radio programmes in light of the findings of the review of the Satellite and Cable Directive (5), thus recognising the key role that television and radio play in promoting the creative industry and facilitating, wherever possible, the uniform treatment of online and offline distribution channels for the purposes of copyright and related rights;

| 16. | is receptive to the Commission’s proposal to facilitate a licensing agreement that allows cross-border access to content. This would ensure the flexibility required by consumers on the one hand and, on the other, guarantee fair and transparent remuneration for creators and stakeholders, something that the digital world can and must provide; |
| --- | --- |

16.

is receptive to the Commission’s proposal to facilitate a licensing agreement that allows cross-border access to content. This would ensure the flexibility required by consumers on the one hand and, on the other, guarantee fair and transparent remuneration for creators and stakeholders, something that the digital world can and must provide;

| 17. | underlines the need to further clarify the parameters within which to operate the digitisation of out-of-commerce works and make them available across the EU; calls, in particular, for due consideration of a number of joint recommendations put forward by authors, editors and collective management organisations in the Memorandum of Understanding — Key Principles on the Digitisation and Making Available of Out-of-Commerce Works
   (6): for instance, the applicability of remuneration for right holders that protects their cultural and institutional role; |
| --- | --- |

17.

underlines the need to further clarify the parameters within which to operate the digitisation of out-of-commerce works and make them available across the EU; calls, in particular, for due consideration of a number of joint recommendations put forward by authors, editors and collective management organisations in the Memorandum of Understanding — Key Principles on the Digitisation and Making Available of Out-of-Commerce Works
   (6): for instance, the applicability of remuneration for right holders that protects their cultural and institutional role;

| 18. | calls for the vital and ongoing involvement of local and regional authorities in the implementation of the Creative Europe programme and other policy instruments which the Commission intends to use to support European audiovisual media by exploring new funding, production and distribution models (7). |
| --- | --- |

18.

calls for the vital and ongoing involvement of local and regional authorities in the implementation of the Creative Europe programme and other policy instruments which the Commission intends to use to support European audiovisual media by exploring new funding, production and distribution models (7).

Adapting exceptions to digital and cross-border environments

| 19. | thinks that it is right to address the issue of exceptions and limitations on condition that any revision of Directive 2001/29/EC is restricted to special cases that do not conflict with normal use. The right balance should be struck, in this context, between the interests of right holders and the interests of consumers; |
| --- | --- |

19.

thinks that it is right to address the issue of exceptions and limitations on condition that any revision of Directive 2001/29/EC is restricted to special cases that do not conflict with normal use. The right balance should be struck, in this context, between the interests of right holders and the interests of consumers;

| 20. | believes that the application of exceptions should be reasonable and justified in areas of significant public interest: (i) in the field of education, for instance by enabling teachers to use given teaching materials in both paper and digital format; and (ii) for the purpose of making content accessible to people who have a visual impairment by promoting the ratification of the Marrakesh Treaty (8) in Member States; |
| --- | --- |

20.

believes that the application of exceptions should be reasonable and justified in areas of significant public interest: (i) in the field of education, for instance by enabling teachers to use given teaching materials in both paper and digital format; and (ii) for the purpose of making content accessible to people who have a visual impairment by promoting the ratification of the Marrakesh Treaty (8) in Member States;

| 21. | cautiously welcomes the Commission’s assessment of further exceptions to be presented in 2016 and, in particular, advocates taking another look at (i) text and data mining (TDM): despite the undoubted benefits that this would have for universities and local and national research institutes, there are still doubts about what data may legitimately be mined, the consequences of inappropriate reuse of the data studied and what the risks would be as regards integrity and privacy; and (ii) remote consultation: since despite the importance of adapting the digital infrastructure of libraries, universities, etc., making protected data available in electronic format creates a risk of direct competition with commercial channels. The Committee therefore suggests that any ensuing negative effects could be mitigated, for instance by introducing some form of compensation for right holders as a means of protecting the cultural value represented by their works; |
| --- | --- |

21.

cautiously welcomes the Commission’s assessment of further exceptions to be presented in 2016 and, in particular, advocates taking another look at (i) text and data mining (TDM): despite the undoubted benefits that this would have for universities and local and national research institutes, there are still doubts about what data may legitimately be mined, the consequences of inappropriate reuse of the data studied and what the risks would be as regards integrity and privacy; and (ii) remote consultation: since despite the importance of adapting the digital infrastructure of libraries, universities, etc., making protected data available in electronic format creates a risk of direct competition with commercial channels. The Committee therefore suggests that any ensuing negative effects could be mitigated, for instance by introducing some form of compensation for right holders as a means of protecting the cultural value represented by their works;

| 22. | supports EU action to improve the efficient distribution of levies among right holders for the specific purpose of overcoming the current differences in the methods used to impose levies and supports technological solutions that facilitate the transparent distribution of the revenues collected among the various right holders (9). |
| --- | --- |

22.

supports EU action to improve the efficient distribution of levies among right holders for the specific purpose of overcoming the current differences in the methods used to impose levies and supports technological solutions that facilitate the transparent distribution of the revenues collected among the various right holders (9).

Achieving a well-functioning marketplace for copyright

| 23. | shares the growing concern about whether the current EU copyright rules can ensure that the value generated by some of the new forms of online content distribution is fairly shared, especially where right holders cannot set licensing terms and negotiate on a fair basis with potential users due primarily to the imbalance in the market power of the parties involved; therefore advocates — in situations where negotiation between the parties is not possible — EU legislative action that creates a favourable environment for all stakeholders, for instance by providing for more contractual guarantees to protect authors and measures that promote transparency; |
| --- | --- |

23.

shares the growing concern about whether the current EU copyright rules can ensure that the value generated by some of the new forms of online content distribution is fairly shared, especially where right holders cannot set licensing terms and negotiate on a fair basis with potential users due primarily to the imbalance in the market power of the parties involved; therefore advocates — in situations where negotiation between the parties is not possible — EU legislative action that creates a favourable environment for all stakeholders, for instance by providing for more contractual guarantees to protect authors and measures that promote transparency;

| 24. | sees a need to clarify the role of online platforms that use protected content as an essential part of their economic model (10); |
| --- | --- |

24.

sees a need to clarify the role of online platforms that use protected content as an essential part of their economic model (10);

| 25. | also recognises the need to promote the cultural heritage inherent in creative works and the essential role played by their creators, without whom online platforms would have no material on which to base their business; |
| --- | --- |

25.

also recognises the need to promote the cultural heritage inherent in creative works and the essential role played by their creators, without whom online platforms would have no material on which to base their business;

| 26. | therefore supports negotiations to safeguard the right balance between the legitimate interests of creators, consumers and intermediaries; |
| --- | --- |

26.

therefore supports negotiations to safeguard the right balance between the legitimate interests of creators, consumers and intermediaries;

| 27. | calls on the European Commission also to take due account of the remits of local and regional authorities when seeking ways to enhance the legal certainty, transparency and balance of the system governing the remuneration of authors and performers in the EU. |
| --- | --- |

27.

calls on the European Commission also to take due account of the remits of local and regional authorities when seeking ways to enhance the legal certainty, transparency and balance of the system governing the remuneration of authors and performers in the EU.

Providing an effective and balanced enforcement system

| 28. | supports the European Commission’s commitment to (i) improving the legal framework to ensure compliance with intellectual property rights, including copyright and related rights, by reinforcing the application of provisional and precautionary measures; (ii) promoting codes of conduct at EU level; and (iii) taking action on ‘notice and action’ mechanisms and the ‘take down and stay down’ principle in its comprehensive assessment of online platforms (11); |
| --- | --- |

28.

supports the European Commission’s commitment to (i) improving the legal framework to ensure compliance with intellectual property rights, including copyright and related rights, by reinforcing the application of provisional and precautionary measures; (ii) promoting codes of conduct at EU level; and (iii) taking action on ‘notice and action’ mechanisms and the ‘take down and stay down’ principle in its comprehensive assessment of online platforms (11);

| 29. | also advocates introducing measures designed to convert, wherever possible, take down requests into payment for use, in order to create an incentive for right holders to agree to requests that do not significantly undermine the nature of the works in question. |
| --- | --- |

29.

also advocates introducing measures designed to convert, wherever possible, take down requests into payment for use, in order to create an incentive for right holders to agree to requests that do not significantly undermine the nature of the works in question.

Fostering a long-term vision

| 30. | agrees with the European Commission’s assertion that copyright will continue to matter to the economy, society and culture in the long term; |
| --- | --- |

30.

agrees with the European Commission’s assertion that copyright will continue to matter to the economy, society and culture in the long term;

| 31. | agrees that the EU should respond to the need for greater convergence between national copyright systems as content markets become closer and user behaviour further evolves due to rapid technological developments; |
| --- | --- |

31.

agrees that the EU should respond to the need for greater convergence between national copyright systems as content markets become closer and user behaviour further evolves due to rapid technological developments;

| 32. | considers that, also in the long term, the legal framework for the remuneration of authors, creators and artists needs to be harmonised. |
| --- | --- |

32.

considers that, also in the long term, the legal framework for the remuneration of authors, creators and artists needs to be harmonised.

Unleashing the potential of e-commerce

| 33. | also welcomes the communication on Digital contracts for Europe: Unleashing the potential of e-commerce
   (12) since it seeks to guarantee one of the three main objectives of the digital single market. Local and regional authorities support the initiative to promote better access for consumers and businesses to online goods and services across Europe and advocate the effective integration of all initiatives, including the modernisation of EU copyright rules. |
| --- | --- |

33.

also welcomes the communication on Digital contracts for Europe: Unleashing the potential of e-commerce
   (12) since it seeks to guarantee one of the three main objectives of the digital single market. Local and regional authorities support the initiative to promote better access for consumers and businesses to online goods and services across Europe and advocate the effective integration of all initiatives, including the modernisation of EU copyright rules.

Brussels, 8 April 2016.

The President of the European Committee of the Regions

Markku MARKKULA

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(1)  CdR 5960/2013.

1

(2)  COR 2646/2015.

2

(3)  In line with the UN Convention on the Rights of Persons with Disabilities, to which the EU is a party.

3

(4)  See footnote 2.

4

(5)  Council Directive 93/83/EEC on satellite broadcasting and cable retransmission.

5

(6)  http://ec.europa.eu/internal_market/copyright/docs/copyright-infso/20110920-mou_en.pdf

6

(7)  COR 1690/2015.

7

(8)  The EU signed the Marrakesh Treaty to Facilitate Access to Published Works for Persons who are Blind, Visually Impaired, or Otherwise Print Disabled on 30 April 2014.

8

Marrakesh Treaty to Facilitate Access to Published Works for Persons who are Blind, Visually Impaired, or Otherwise Print Disabled

(9)  See footnote 2.

9

(10)  Directive 2000/31/EC.

10

(11)  https://ec.europa.eu/eusurvey/runner/Platforms.

11

(12)  COM(2015) 633 final.

12

---