# Official Journal C 311/12 S

| | ISSN 1977-091X |
| --- | --- |
| Official Journal
  of the European Union | C 311 |
| | |
| English edition | Information and Notices | Volume 5712 September 2014 |

ISSN 1977-091X

Official Journal

of the European Union

C 311

English edition

Information and Notices

Volume 5712 September 2014

---

| Notice No | Contents | page |
| --- | --- | --- |
| | I   Resolutions, recommendations and opinions |
| | OPINIONS |
| | European Economic and Social Committee |
| | 498th EESC plenary session, 29 and 30 April 2014 |
| 2014/C 311/01 | Opinion of the European Economic and Social Committee on intergenerational and intercultural measures to foster social integration of young EU citizens taking up employment in another Member State (own-initiative opinion) | 1 |
| 2014/C 311/02 | Opinion of the European Economic and Social Committee on Employability of young people — matching training with industry needs in an age of austerity | 7 |
| 2014/C 311/03 | Opinion of the European Economic and Social Committee on the Reshoring of EU industries in the framework of reindustrialisation | 15 |
| 2014/C 311/04 | Opinion of the European Economic and Social Committee on Industrial Changes in the European Pharmaceutical Sector | 25 |
| 2014/C 311/05 | Opinion of the European Economic and Social Committee on combating forced labour in the EU and the world: the role of the EU — the EESC's contribution to the 2014 ILO conference (own-initiative opinion) | 31 |
| 2014/C 311/06 | Opinion of the European Economic and Social Committee on Consumer protection and appropriate treatment of over-indebtedness to prevent social exclusion (exploratory opinion) | 38 |

Notice No

Contents

page

I   Resolutions, recommendations and opinions

OPINIONS

European Economic and Social Committee

498th EESC plenary session, 29 and 30 April 2014

2014/C 311/01

Opinion of the European Economic and Social Committee on intergenerational and intercultural measures to foster social integration of young EU citizens taking up employment in another Member State (own-initiative opinion)

1

2014/C 311/02

Opinion of the European Economic and Social Committee on Employability of young people — matching training with industry needs in an age of austerity

7

2014/C 311/03

Opinion of the European Economic and Social Committee on the Reshoring of EU industries in the framework of reindustrialisation

15

2014/C 311/04

Opinion of the European Economic and Social Committee on Industrial Changes in the European Pharmaceutical Sector

25

2014/C 311/05

Opinion of the European Economic and Social Committee on combating forced labour in the EU and the world: the role of the EU — the EESC's contribution to the 2014 ILO conference (own-initiative opinion)

31

2014/C 311/06

Opinion of the European Economic and Social Committee on Consumer protection and appropriate treatment of over-indebtedness to prevent social exclusion (exploratory opinion)

38

| | III   Preparatory acts |
| --- | --- |
| | EUROPEAN ECONOMIC AND SOCIAL COMMITTEE |
| | 498th EESC plenary session, 29 and 30 April 2014 |
| 2014/C 311/07 | Opinion of the European Economic and Social Committee on the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — For an European Industrial RenaissanceCOM(2014) 14 final | 47 |
| 2014/C 311/08 | Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council amending Regulations (EC) No 715/2007 and (EC) No 595/2009 as regards the reduction of pollutant emissions from road vehiclesCOM(2014) 28 final — 2014/0012 (COD) | 55 |
| 2014/C 311/09 | Opinion of the European Economic and Social Committee on the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on addressing the consequences of disenfranchisement of Union citizens exercising their right to free movementCOM(2014) 33 final | 59 |
| 2014/C 311/10 | Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on information provision and promotion measures for agricultural products on the internal market and in third countriesCOM(2013) 812 final — 2013/0398 (COD) | 63 |
| 2014/C 311/11 | Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council amending Council Regulations (EC) No 850/98, (EC) No 2187/2005, (EC) No 1967/2006, (EC) No 1098/2007, (EC) No 254/2002, (EC) No 2347/2002 and (EC) No 1224/2009 and repealing (EC) No 1434/98 as regards the landing obligationCOM(2013) 889 final — 2013/0436 (COD) | 68 |
| 2014/C 311/12 | Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council on the cloning of animals of the bovine, porcine, ovine, caprine and equine species kept and reproduced for farming purposesCOM(2013) 892 final — 2013/0433 (COD)Proposal for a Council Directive on the placing on the market of food from animal clonesCOM(2013) 893 final — 2013/0434 (APP)Proposal for a Regulation of the European Parliament and of the Council on novel foodsCOM(2013) 894 final — 2013/0435 (COD) | 73 |
| 2014/C 311/13 | Opinion of the European Economic and Social Committee on the communication from the Commission — Building the Transport Core Network: Core Network Corridors and Connecting Europe FacilityCOM(2013) 940 final | 82 |

III   Preparatory acts

EUROPEAN ECONOMIC AND SOCIAL COMMITTEE

498th EESC plenary session, 29 and 30 April 2014

2014/C 311/07

Opinion of the European Economic and Social Committee on the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — For an European Industrial RenaissanceCOM(2014) 14 final

COM(2014) 14 final

47

2014/C 311/08

Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council amending Regulations (EC) No 715/2007 and (EC) No 595/2009 as regards the reduction of pollutant emissions from road vehiclesCOM(2014) 28 final — 2014/0012 (COD)

COM(2014) 28 final — 2014/0012 (COD)

55

2014/C 311/09

Opinion of the European Economic and Social Committee on the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on addressing the consequences of disenfranchisement of Union citizens exercising their right to free movementCOM(2014) 33 final

COM(2014) 33 final

59

2014/C 311/10

Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on information provision and promotion measures for agricultural products on the internal market and in third countriesCOM(2013) 812 final — 2013/0398 (COD)

COM(2013) 812 final — 2013/0398 (COD)

63

2014/C 311/11

Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council amending Council Regulations (EC) No 850/98, (EC) No 2187/2005, (EC) No 1967/2006, (EC) No 1098/2007, (EC) No 254/2002, (EC) No 2347/2002 and (EC) No 1224/2009 and repealing (EC) No 1434/98 as regards the landing obligationCOM(2013) 889 final — 2013/0436 (COD)

COM(2013) 889 final — 2013/0436 (COD)

68

2014/C 311/12

Opinion of the European Economic and Social Committee on the Proposal for a Directive of the European Parliament and of the Council on the cloning of animals of the bovine, porcine, ovine, caprine and equine species kept and reproduced for farming purposesCOM(2013) 892 final — 2013/0433 (COD)Proposal for a Council Directive on the placing on the market of food from animal clonesCOM(2013) 893 final — 2013/0434 (APP)Proposal for a Regulation of the European Parliament and of the Council on novel foodsCOM(2013) 894 final — 2013/0435 (COD)

COM(2013) 892 final — 2013/0433 (COD)

COM(2013) 893 final — 2013/0434 (APP)

COM(2013) 894 final — 2013/0435 (COD)

73

2014/C 311/13

Opinion of the European Economic and Social Committee on the communication from the Commission — Building the Transport Core Network: Core Network Corridors and Connecting Europe FacilityCOM(2013) 940 final

COM(2013) 940 final

82

| EN | |
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EN

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I Resolutions, recommendations and opinions

OPINIONS

European Economic and Social Committee

498th EESC plenary session, 29 and 30 April 2014

| 12.9.2014 | EN | Official Journal of the European Union | C 311/1 |
| --- | --- | --- | --- |

12.9.2014

EN

Official Journal of the European Union

C 311/1

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Opinion of the European Economic and Social Committee on intergenerational and intercultural measures to foster social integration of young EU citizens taking up employment in another Member State (own-initiative opinion)

2014/C 311/01

Rapporteur: Renate Heinisch

On 19 September 2013, the European Economic and Social Committee, acting under Rule 29(2) of its Rules of Procedure, decided to draw up an own-initiative opinion on:

Intergenerational and intercultural measures to foster social integration of young EU citizens taking up employment in another Member State

(own-initiative opinion).

The Section for Employment, Social Affairs and Citizenship, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 7 April 2014.

At its 498th plenary session, held on 29 and 30 April 2014 (meeting of 30 April), the European Economic and Social Committee adopted the following opinion by 187 votes to 2 with 9 abstentions.

1.   Conclusions and recommendations

| 1.1 | The European Economic and Social Committee (EESC) acknowledges that the increasing labour mobility of young EU citizens is an important and welcome manifestation of one of the fundamental freedoms of the European Union and is ever more frequently the result of necessity. It helps mitigate critical situations in the labour markets of countries of origin and host countries. Young labour migrants are contributing to the economic and social development of host countries, and also bring intangible wealth in the form of diversity, which offers new opportunities to businesses and to society. |
| --- | --- |

1.1

The European Economic and Social Committee (EESC) acknowledges that the increasing labour mobility of young EU citizens is an important and welcome manifestation of one of the fundamental freedoms of the European Union and is ever more frequently the result of necessity. It helps mitigate critical situations in the labour markets of countries of origin and host countries. Young labour migrants are contributing to the economic and social development of host countries, and also bring intangible wealth in the form of diversity, which offers new opportunities to businesses and to society.

| 1.2 | Whereas young labour migrants are taking up the resulting professional opportunities available to them and usually integrating successfully into the workplace in host countries, society faces new challenges with regard to their non-professional social integration in their new environments. Young EU citizens working in Member States other than their own constitute a diverse group. They all have the right to support when settling in, particularly those with limited language skills and financial means. |
| --- | --- |

1.2

Whereas young labour migrants are taking up the resulting professional opportunities available to them and usually integrating successfully into the workplace in host countries, society faces new challenges with regard to their non-professional social integration in their new environments. Young EU citizens working in Member States other than their own constitute a diverse group. They all have the right to support when settling in, particularly those with limited language skills and financial means.

| 1.3 | The EESC believes that greater attention should be paid to the specific needs and difficulties relating to the social integration and involvement of young EU citizens who have taken up employment in another Member State and who are staying in the host country on more than a temporary basis. Otherwise, serious problems can arise for those concerned and for host countries. |
| --- | --- |

1.3

The EESC believes that greater attention should be paid to the specific needs and difficulties relating to the social integration and involvement of young EU citizens who have taken up employment in another Member State and who are staying in the host country on more than a temporary basis. Otherwise, serious problems can arise for those concerned and for host countries.

| 1.4 | The EESC would alert the EU institutions and Member States to the growth of xenophobia and racism against minorities and immigrants, and calls for determined action against these attitudes and the groups fomenting them. |
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1.4

The EESC would alert the EU institutions and Member States to the growth of xenophobia and racism against minorities and immigrants, and calls for determined action against these attitudes and the groups fomenting them.

| 1.5 | The European Commission is urged to support the Member States in their efforts to create more effective integration measures for this group of young EU migrants who have already found work in another EU Member State, by increasing exchanges of experience and dialogue. The EESC therefore calls for programmes funded under the Your First EURES Job scheme to be reinforced. |
| --- | --- |

1.5

The European Commission is urged to support the Member States in their efforts to create more effective integration measures for this group of young EU migrants who have already found work in another EU Member State, by increasing exchanges of experience and dialogue. The EESC therefore calls for programmes funded under the Your First EURES Job scheme to be reinforced.

| 1.6 | Integration is a social process that operates in the relation between individuals and groups, and is a two-way process since it involves both immigrants and host societies. |
| --- | --- |

1.6

Integration is a social process that operates in the relation between individuals and groups, and is a two-way process since it involves both immigrants and host societies.

| 1.7 | First of all, the European Commission should promote the exchange of best practices and document successful strategies and practices aimed at supporting these young labour migrants in their efforts to integrate into society. In particular, the importance of intercultural and intergenerational ideas and projects as part of host country ‘welcome culture’ initiatives could be recognised and underlined, since they provide promising forms of support. |
| --- | --- |

1.7

First of all, the European Commission should promote the exchange of best practices and document successful strategies and practices aimed at supporting these young labour migrants in their efforts to integrate into society. In particular, the importance of intercultural and intergenerational ideas and projects as part of host country ‘welcome culture’ initiatives could be recognised and underlined, since they provide promising forms of support.

| 1.8 | The EU has approved new tools to tackle the discrimination against Europeans exercising their right to freedom of movement. These tools must be applied effectively at national level since a society that allows discrimination against immigrants is not inclusive. |
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1.8

The EU has approved new tools to tackle the discrimination against Europeans exercising their right to freedom of movement. These tools must be applied effectively at national level since a society that allows discrimination against immigrants is not inclusive.

| 1.9 | The Commission should make available this collection of tried-and-tested ideas and projects to the Member States, recommending that they be emulated in a creative way. The Member States should be urged to inform the European Commission of any successful measures which have already been carried out by various providers in their own countries, with a view to developing documentation further and thus deepening the exchange of experience. |
| --- | --- |

1.9

The Commission should make available this collection of tried-and-tested ideas and projects to the Member States, recommending that they be emulated in a creative way. The Member States should be urged to inform the European Commission of any successful measures which have already been carried out by various providers in their own countries, with a view to developing documentation further and thus deepening the exchange of experience.

| 1.10 | The EESC recommends that the Commission subsequently check whether further suitable measures are possible and how these could be implemented. In particular, it should develop a plan to apply and support tried-and-tested innovative strategies and practices through the EU's existing programmes, platforms, funds and initiatives. |
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1.10

The EESC recommends that the Commission subsequently check whether further suitable measures are possible and how these could be implemented. In particular, it should develop a plan to apply and support tried-and-tested innovative strategies and practices through the EU's existing programmes, platforms, funds and initiatives.

| 1.11 | The EESC proposes that the Commission support the work carried out by the social partners and civil society, which play an important role in integration in terms of the reception and participation of immigrants. |
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1.11

The EESC proposes that the Commission support the work carried out by the social partners and civil society, which play an important role in integration in terms of the reception and participation of immigrants.

| 1.12 | The EESC believes that the European Commission should focus on involving young people in an appropriate way — through their civil society organisations — in important planning and decision-making processes on this subject, so that the needs and difficulties of this target group can be properly articulated through them and thus successfully tackled. |
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1.12

The EESC believes that the European Commission should focus on involving young people in an appropriate way — through their civil society organisations — in important planning and decision-making processes on this subject, so that the needs and difficulties of this target group can be properly articulated through them and thus successfully tackled.

| 1.13 | It is clear that the social partners and businesses that employ young non-nationals have a serious responsibility. The EESC would like them to be more involved in the design of integration programmes that are more suited to the needs of young workers. |
| --- | --- |

1.13

It is clear that the social partners and businesses that employ young non-nationals have a serious responsibility. The EESC would like them to be more involved in the design of integration programmes that are more suited to the needs of young workers.

2.   Introduction

| 2.1 | Young EU citizens are increasingly mobile and many leave their home countries — often because of a desperate labour market situation (but not necessarily for this reason alone) — in order to find a job in another EU Member State. They are therefore exercising their fundamental right to free movement within the Union, contributing to the objective of greater labour mobility in the EU and using the opportunities which stem from this. They are on the same legal footing as citizens of the host country but face very specific challenges and have special needs. |
| --- | --- |

2.1

Young EU citizens are increasingly mobile and many leave their home countries — often because of a desperate labour market situation (but not necessarily for this reason alone) — in order to find a job in another EU Member State. They are therefore exercising their fundamental right to free movement within the Union, contributing to the objective of greater labour mobility in the EU and using the opportunities which stem from this. They are on the same legal footing as citizens of the host country but face very specific challenges and have special needs.

| 2.2 | Young EU citizens working in Member States other than their own constitute a diverse group. In fact, it is not only well-educated young people but also low-skilled and financially disadvantaged young people who take the courageous step to build their future outside their home country. It is usually the latter group who find it more difficult to integrate since they often lack the language skills and financial means to establish a firm social footing in the host country. |
| --- | --- |

2.2

Young EU citizens working in Member States other than their own constitute a diverse group. In fact, it is not only well-educated young people but also low-skilled and financially disadvantaged young people who take the courageous step to build their future outside their home country. It is usually the latter group who find it more difficult to integrate since they often lack the language skills and financial means to establish a firm social footing in the host country.

| 2.3 | These young people therefore need to be able to integrate well socially in order to take part and be able to play an active role in the host society which they are not familiar or virtually unfamiliar with when they arrive, i.e. in order to experience important aspects of citizenship in the new environment too. |
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2.3

These young people therefore need to be able to integrate well socially in order to take part and be able to play an active role in the host society which they are not familiar or virtually unfamiliar with when they arrive, i.e. in order to experience important aspects of citizenship in the new environment too.

| 2.4 | With its Your First EURES Job (YFEJ) scheme, which forms part of the Youth on the Move flagship initiative and the Youth Opportunities initiative, the European Commission promotes job mobility for young people, with a view to achieving the goal set in the Europe 2020 strategy: to secure 75 % employment and improve the workings of Europe's labour markets. |
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2.4

With its Your First EURES Job (YFEJ) scheme, which forms part of the Youth on the Move flagship initiative and the Youth Opportunities initiative, the European Commission promotes job mobility for young people, with a view to achieving the goal set in the Europe 2020 strategy: to secure 75 % employment and improve the workings of Europe's labour markets.

| 2.5 | This opinion deals with the — until now largely downplayed — difficulties of socio-cultural integration in a new environment through integration and involvement in the host society which is as comprehensive as possible. At the same time, however, the EESC recognises the need to draw up another opinion to explore the social costs and other effects which have to be dealt with by the countries and regions of origin on account of labour mobility and migration, especially of young people. |
| --- | --- |

2.5

This opinion deals with the — until now largely downplayed — difficulties of socio-cultural integration in a new environment through integration and involvement in the host society which is as comprehensive as possible. At the same time, however, the EESC recognises the need to draw up another opinion to explore the social costs and other effects which have to be dealt with by the countries and regions of origin on account of labour mobility and migration, especially of young people.

| 2.6 | This opinion seeks to promote a greater awareness of this important aspect of the integration of young EU migrant workers both in the host countries and countries of origin, as well as at EU level. The urgent need for appropriate action is underlined with the aim of developing evidence- and results-based approaches in the Member States and promoting them at EU level, by comparing individual approaches and more specific experiences. |
| --- | --- |

2.6

This opinion seeks to promote a greater awareness of this important aspect of the integration of young EU migrant workers both in the host countries and countries of origin, as well as at EU level. The urgent need for appropriate action is underlined with the aim of developing evidence- and results-based approaches in the Member States and promoting them at EU level, by comparing individual approaches and more specific experiences.

| 2.7 | To some extent, host countries and businesses already provide very effective support, which is however primarily geared towards job-related issues. Only in exceptional cases is this support flanked by general ‘welcome culture’ strategies. The YFEJ scheme includes programmes organised by employers to promote integration of young workers (language courses and training, combined with administrative assistance and support for relocation). The requisite strategies, structures, methods and experience needed to effectively support, help and challenge these young people in integrating into the host country society and culture are to a large extent still lacking. |
| --- | --- |

2.7

To some extent, host countries and businesses already provide very effective support, which is however primarily geared towards job-related issues. Only in exceptional cases is this support flanked by general ‘welcome culture’ strategies. The YFEJ scheme includes programmes organised by employers to promote integration of young workers (language courses and training, combined with administrative assistance and support for relocation). The requisite strategies, structures, methods and experience needed to effectively support, help and challenge these young people in integrating into the host country society and culture are to a large extent still lacking.

| 2.8 | Relevant approaches and measures should have a specific intergenerational and intercultural basis. These can make a very important contribution to integration and the exercise of EU citizenship in the host country. Knowledge drawn from the experience of older generations should be used as much as possible in this connection. In particular, immigrants from various countries of origin who have already integrated successfully may offer innovative mutual support and specific forms of solidarity, drawing on the diversity of their cultural roots. |
| --- | --- |

2.8

Relevant approaches and measures should have a specific intergenerational and intercultural basis. These can make a very important contribution to integration and the exercise of EU citizenship in the host country. Knowledge drawn from the experience of older generations should be used as much as possible in this connection. In particular, immigrants from various countries of origin who have already integrated successfully may offer innovative mutual support and specific forms of solidarity, drawing on the diversity of their cultural roots.

| 2.9 | Unsuccessful social integration as well as a failure to recognise these young people's identity and their specific needs could lead to some explosive problems, both for them and the host society. Shattered hopes and renewed question marks over prospects often lead to the loss of an initially positive attitude to the host country, and can even lead to aggressive, radical views and behaviour. |
| --- | --- |

2.9

Unsuccessful social integration as well as a failure to recognise these young people's identity and their specific needs could lead to some explosive problems, both for them and the host society. Shattered hopes and renewed question marks over prospects often lead to the loss of an initially positive attitude to the host country, and can even lead to aggressive, radical views and behaviour.

| 2.10 | Therefore the message must get through to these young people that ‘you are valuable to us, you are welcome and we will help you’, so as to counter the impression that ‘you are a problem here and a nuisance’. Last but not least, steps should be taken to prevent skilled and motivated young people from becoming frustrated and migrating to third countries and thus to prevent the EU from losing them. |
| --- | --- |

2.10

Therefore the message must get through to these young people that ‘you are valuable to us, you are welcome and we will help you’, so as to counter the impression that ‘you are a problem here and a nuisance’. Last but not least, steps should be taken to prevent skilled and motivated young people from becoming frustrated and migrating to third countries and thus to prevent the EU from losing them.

3.   Challenges and difficulties facing young people in a foreign country

| 3.1 | Although effective EU advice and support systems have already been created for young job seekers in the European Union — such as Youth on the Move, EURES, the European Job Mobility Portal, etc. — and host countries have developed numerous measures in this area, these programmes focus predominantly, if not exclusively, on labour market policy or job-related aspects. The various other areas of young people's lives, their difficulties and their specific needs are to a large extent being left out of the picture. In other words, offers of support are lacking, or insofar as they exist, are insufficient. |
| --- | --- |

3.1

Although effective EU advice and support systems have already been created for young job seekers in the European Union — such as Youth on the Move, EURES, the European Job Mobility Portal, etc. — and host countries have developed numerous measures in this area, these programmes focus predominantly, if not exclusively, on labour market policy or job-related aspects. The various other areas of young people's lives, their difficulties and their specific needs are to a large extent being left out of the picture. In other words, offers of support are lacking, or insofar as they exist, are insufficient.

| 3.2 | A significant difficulty for newcomers in their host country is the fact that they are initially unfamiliar with public structures and procedures and do not properly understand a society's customs and culture. Together with a shortage of language skills in most cases, this makes it enormously difficult to have access to rights and public services and poses the risk of economic and social disadvantage, especially outside of work. |
| --- | --- |

3.2

A significant difficulty for newcomers in their host country is the fact that they are initially unfamiliar with public structures and procedures and do not properly understand a society's customs and culture. Together with a shortage of language skills in most cases, this makes it enormously difficult to have access to rights and public services and poses the risk of economic and social disadvantage, especially outside of work.

| 3.3 | For example, there can be everyday difficulties when looking for accommodation, accessing general and specific services such as health and welfare, and in dealing with a broad range of other personal needs, including organising leisure time and practising one's faith. These difficulties affect all workers in countries other than their country of origin. |
| --- | --- |

3.3

For example, there can be everyday difficulties when looking for accommodation, accessing general and specific services such as health and welfare, and in dealing with a broad range of other personal needs, including organising leisure time and practising one's faith. These difficulties affect all workers in countries other than their country of origin.

| 3.4 | If opportunities to participate in society are insufficient or difficult to access, there is a risk of isolation. This can easily begin with simple everyday situations and can even lead to experiences of rejection, discrimination and social distance, with considerable psychological consequences extending to social and emotional isolation. This is especially difficult for these young people, since they cannot rely on support from old networks such as their families back home, their habitual circle of friends or their original peer group. |
| --- | --- |

3.4

If opportunities to participate in society are insufficient or difficult to access, there is a risk of isolation. This can easily begin with simple everyday situations and can even lead to experiences of rejection, discrimination and social distance, with considerable psychological consequences extending to social and emotional isolation. This is especially difficult for these young people, since they cannot rely on support from old networks such as their families back home, their habitual circle of friends or their original peer group.

| 3.5 | So, a very important path to successful social integration in the host society is effective involvement in the general life of a community through participation in social, political, cultural and sporting activities or faith-based practice, for example through clubs, societies, associations, parties and trade unions. Often, however, there are various barriers to straightforward participation by young people from abroad, and frequently there is also a lack of measures needed to get people started, to encourage them or to introduce them to activities. This can easily lead to non-material impoverishment of young migrants, with disastrous effects. |
| --- | --- |

3.5

So, a very important path to successful social integration in the host society is effective involvement in the general life of a community through participation in social, political, cultural and sporting activities or faith-based practice, for example through clubs, societies, associations, parties and trade unions. Often, however, there are various barriers to straightforward participation by young people from abroad, and frequently there is also a lack of measures needed to get people started, to encourage them or to introduce them to activities. This can easily lead to non-material impoverishment of young migrants, with disastrous effects.

| 3.6 | In this connection the EESC considers it essential to strengthen the EURES network, which has thus far proved deficient not only in terms of matching demand with supply but also with regard to support for inclusion and integration. This latter aspect is becoming even more important following the recent expansion of the EURES network to apprenticeships and traineeships, as it is likely that younger and younger people will be involved in European mobility. |
| --- | --- |

3.6

In this connection the EESC considers it essential to strengthen the EURES network, which has thus far proved deficient not only in terms of matching demand with supply but also with regard to support for inclusion and integration. This latter aspect is becoming even more important following the recent expansion of the EURES network to apprenticeships and traineeships, as it is likely that younger and younger people will be involved in European mobility.

| 3.7 | A key contribution to the development of integration programmes could lie in cooperation between the host country and the country of origin: a holistic approach and the creation of intercultural, transnational networks operating at a closer level to young migrant workers would encourage ‘mindful migration’. |
| --- | --- |

3.7

A key contribution to the development of integration programmes could lie in cooperation between the host country and the country of origin: a holistic approach and the creation of intercultural, transnational networks operating at a closer level to young migrant workers would encourage ‘mindful migration’.

4.   Important areas of protection and support for young migrant workers

| 4.1 | Beyond the work-related field, it is of great benefit for young migrant workers if their need for networks is supported. This can take place on the basis of structured communication or the organisation of local or regional events, to initiate and promote exchange of experience and the sharing of information about rights and obligations, difficulties and abuse, possible solutions, etc. Social media have an important role to play in the development of new networks of acquaintances. |
| --- | --- |

4.1

Beyond the work-related field, it is of great benefit for young migrant workers if their need for networks is supported. This can take place on the basis of structured communication or the organisation of local or regional events, to initiate and promote exchange of experience and the sharing of information about rights and obligations, difficulties and abuse, possible solutions, etc. Social media have an important role to play in the development of new networks of acquaintances.

| 4.2 | Since the overwhelming majority of young migrant workers are highly motivated and eager, a broad range of straightforward possibilities and paths should be identified for them, so that they also can decide on, develop and implement their own business projects. In this connection, they could be supported by experienced older people, especially as regards market opportunities, technical and administrative conditions, financing, staff recruitment, etc. in the socio-economic context of the host country. |
| --- | --- |

4.2

Since the overwhelming majority of young migrant workers are highly motivated and eager, a broad range of straightforward possibilities and paths should be identified for them, so that they also can decide on, develop and implement their own business projects. In this connection, they could be supported by experienced older people, especially as regards market opportunities, technical and administrative conditions, financing, staff recruitment, etc. in the socio-economic context of the host country.

| 4.3 | Participation outside of work and integration of young foreign workers is a broad and important field for key support and development measures, but one which is widely neglected. It is not enough for young people to take courses to learn basic linguistic skills in the language of the host country and to master technical language on the job. |
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4.3

Participation outside of work and integration of young foreign workers is a broad and important field for key support and development measures, but one which is widely neglected. It is not enough for young people to take courses to learn basic linguistic skills in the language of the host country and to master technical language on the job.

| 4.4 | In order to find one's feet in a new living environment, to meet personal needs and to actively integrate oneself into society, much more is needed. In particular, there is a need for sound information and suitable guidance, practical steps to link the language and a large number of specific everyday situations as well as long-term, reliable personal support to help them deal with failures and disappointments. |
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4.4

In order to find one's feet in a new living environment, to meet personal needs and to actively integrate oneself into society, much more is needed. In particular, there is a need for sound information and suitable guidance, practical steps to link the language and a large number of specific everyday situations as well as long-term, reliable personal support to help them deal with failures and disappointments.

| 4.5 | Advice and support measures are, among other things, crucial when looking for accommodation, in the event of disputes over housing, in generally organising everyday life, dealing with finance and tax matters, in making efforts to continue one's education, choosing between options for social, cultural, religious, sporting or other leisure activities, as well as in exercising citizens' rights and political participation. In all such fields, extremely valuable assistance can be provided both by other young foreigners and compatriots with more experience of living in the host country, and older citizens from the host country who are willing to provide support on a personal basis. |
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4.5

Advice and support measures are, among other things, crucial when looking for accommodation, in the event of disputes over housing, in generally organising everyday life, dealing with finance and tax matters, in making efforts to continue one's education, choosing between options for social, cultural, religious, sporting or other leisure activities, as well as in exercising citizens' rights and political participation. In all such fields, extremely valuable assistance can be provided both by other young foreigners and compatriots with more experience of living in the host country, and older citizens from the host country who are willing to provide support on a personal basis.

| 4.6 | When designing support and advice measures, decisions must be taken on solving some highly diverse difficulties and needs. To begin with, this is mostly a question of initial difficulties of a legal, material or technical nature, which are relatively easy to solve with the right help. However, it is much more difficult to overcome the hurdles of the social integration process, which can make long-term consistent support necessary. |
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4.6

When designing support and advice measures, decisions must be taken on solving some highly diverse difficulties and needs. To begin with, this is mostly a question of initial difficulties of a legal, material or technical nature, which are relatively easy to solve with the right help. However, it is much more difficult to overcome the hurdles of the social integration process, which can make long-term consistent support necessary.

| 4.7 | It can be very important to help young immigrants faced with difficult decisions or conflicts to find contacts, whether they be ‘sponsors’ or ‘mentors’ or even advisers from the EURES programmes, whose advice they can seek and with whom they can develop a relationship of trust. It is crucial for such contacts to have intercultural experience and thus the necessary understanding and, at the same time, to be able to communicate effectively and to have the ability to help others help themselves. |
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4.7

It can be very important to help young immigrants faced with difficult decisions or conflicts to find contacts, whether they be ‘sponsors’ or ‘mentors’ or even advisers from the EURES programmes, whose advice they can seek and with whom they can develop a relationship of trust. It is crucial for such contacts to have intercultural experience and thus the necessary understanding and, at the same time, to be able to communicate effectively and to have the ability to help others help themselves.

5.   Providers and stakeholders of support measures

| 5.1 | The social partners undoubtedly have a big responsibility, as do businesses which employ young foreigners. They could, in addition, offer advice and concrete support relating to life outside work by encouraging older employees in particular to make themselves available at work as ‘mentors’ or ‘sponsors’, working together with young migrant workers and offering them advice, but also in particular to provide them with support beyond the work environment as well. The fact that without support this is hardly possible at all in small and medium-sized enterprises poses a particular challenge for which solutions must be found, for instance by including such initiatives in the programmes funded under the YFEJ scheme. |
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5.1

The social partners undoubtedly have a big responsibility, as do businesses which employ young foreigners. They could, in addition, offer advice and concrete support relating to life outside work by encouraging older employees in particular to make themselves available at work as ‘mentors’ or ‘sponsors’, working together with young migrant workers and offering them advice, but also in particular to provide them with support beyond the work environment as well. The fact that without support this is hardly possible at all in small and medium-sized enterprises poses a particular challenge for which solutions must be found, for instance by including such initiatives in the programmes funded under the YFEJ scheme.

| 5.2 | Traditionally, civil society social organisations have mainly dealt with peoples' non-professional difficulties and created opportunities for better social integration and a more cohesive society. Especially through measures relating to social, cultural, sporting and other leisure activities geared to the special difficulties and needs of young migrant workers, they should more closely involve this key group, which is of such great importance for the future, in formulating an overall vision of their activities. |
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5.2

Traditionally, civil society social organisations have mainly dealt with peoples' non-professional difficulties and created opportunities for better social integration and a more cohesive society. Especially through measures relating to social, cultural, sporting and other leisure activities geared to the special difficulties and needs of young migrant workers, they should more closely involve this key group, which is of such great importance for the future, in formulating an overall vision of their activities.

| 5.3 | Both in the job-related context and in the non-professional field, it is of great benefit to bring experienced older people together with young migrants. The knowledge and judgement of older people who are willing to share their experiences with younger people is of very considerable value. Not only can this lead to appropriate solutions to difficulties, it is also an important form of dialogue which promotes social cohesion. This is of huge benefit for all stakeholders. If the partners in dialogue come from a broad range of cultural backgrounds, this also leads to important experiences in an open, multidimensional society offering access and participation opportunities for all. |
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5.3

Both in the job-related context and in the non-professional field, it is of great benefit to bring experienced older people together with young migrants. The knowledge and judgement of older people who are willing to share their experiences with younger people is of very considerable value. Not only can this lead to appropriate solutions to difficulties, it is also an important form of dialogue which promotes social cohesion. This is of huge benefit for all stakeholders. If the partners in dialogue come from a broad range of cultural backgrounds, this also leads to important experiences in an open, multidimensional society offering access and participation opportunities for all.

| 5.4 | Regardless of all existing institutional help and support programmes, a very important factor determining whether or not measures succeed is personal ties. Personal experiences, direct communication, individual commitment, trust in the ability of others and shared experiences are catalysts for integration promising a new world of work and a different kind of society in particular. Ensuring such individual personal support through direct face-to-face contacts is an important task, which can be carried out especially through structured organisation of voluntary involvement. Who can or should make this happen depends on the respective culture of the host country. |
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5.4

Regardless of all existing institutional help and support programmes, a very important factor determining whether or not measures succeed is personal ties. Personal experiences, direct communication, individual commitment, trust in the ability of others and shared experiences are catalysts for integration promising a new world of work and a different kind of society in particular. Ensuring such individual personal support through direct face-to-face contacts is an important task, which can be carried out especially through structured organisation of voluntary involvement. Who can or should make this happen depends on the respective culture of the host country.

| 5.5 | It is important that attempts should not be made either at national or European level to impose uniform solutions. These are human needs and difficulties for which there is no set standard approach, but which require varied, flexible and constantly innovative answers depending on the origin of those concerned and their personal situation, as well as local conditions. |
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5.5

It is important that attempts should not be made either at national or European level to impose uniform solutions. These are human needs and difficulties for which there is no set standard approach, but which require varied, flexible and constantly innovative answers depending on the origin of those concerned and their personal situation, as well as local conditions.

| 5.6 | A very successful form of personal assistance is, for example, provided through ‘Senior Expert Services’ (1). In this connection, people who are already retired offer young people on a voluntary basis their professional knowledge and experience from very diverse fields. The transfer of skills and the personal commitment of older people boost mutual understanding, cooperation and intergenerational respect enormously, and this in turn contributes a great deal to social cohesion. |
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5.6

A very successful form of personal assistance is, for example, provided through ‘Senior Expert Services’ (1). In this connection, people who are already retired offer young people on a voluntary basis their professional knowledge and experience from very diverse fields. The transfer of skills and the personal commitment of older people boost mutual understanding, cooperation and intergenerational respect enormously, and this in turn contributes a great deal to social cohesion.

| 5.7 | For strategies that show promise, it is important that existing opportunities and successful practices are systematically documented, evaluated on the basis of outcomes, closely coordinated and publicised through targeted information measures. Close cooperation among all providers and relevant organisational units as well as permanent involvement of organisations representing all interested parties and stakeholders is the key to success. In particular, the objective must be to ensure that the specific needs and difficulties of young migrant workers are recorded correctly, strategies and measures are designed in a targeted way, resources are used appropriately and follow-up is ensured. Young migrant workers should be jointly involved in all decisions and evaluations. |
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5.7

For strategies that show promise, it is important that existing opportunities and successful practices are systematically documented, evaluated on the basis of outcomes, closely coordinated and publicised through targeted information measures. Close cooperation among all providers and relevant organisational units as well as permanent involvement of organisations representing all interested parties and stakeholders is the key to success. In particular, the objective must be to ensure that the specific needs and difficulties of young migrant workers are recorded correctly, strategies and measures are designed in a targeted way, resources are used appropriately and follow-up is ensured. Young migrant workers should be jointly involved in all decisions and evaluations.

6.   Observations and possible steps by the European Commission

| 6.1 | The mobility of young workers reflects one of the fundamental freedoms of the European Union. Young people are using the opportunities available to them through labour migration. This can significantly mitigate labour market problems in both countries of origin and host countries. The specific situation of young EU migrants working in other EU Member States, who represent a very important part of Europe's future, should be documented, analysed and understood more closely. |
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6.1

The mobility of young workers reflects one of the fundamental freedoms of the European Union. Young people are using the opportunities available to them through labour migration. This can significantly mitigate labour market problems in both countries of origin and host countries. The specific situation of young EU migrants working in other EU Member States, who represent a very important part of Europe's future, should be documented, analysed and understood more closely.

| 6.2 | In particular, the non-professional integration of young people from other EU Member States in the society of the host country in which they have found work should be given greater consideration, since it is associated with significant challenges and difficulties. In this connection, the European Commission should raise awareness across borders, compile documentation and promote exchange of experience and dialogue. |
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6.2

In particular, the non-professional integration of young people from other EU Member States in the society of the host country in which they have found work should be given greater consideration, since it is associated with significant challenges and difficulties. In this connection, the European Commission should raise awareness across borders, compile documentation and promote exchange of experience and dialogue.

| 6.3 | Accordingly, the European Commission should be urged to take steps to document successful practices aimed at tackling the specific difficulties faced by young migrant workers with regard to social integration and involvement in the host country. In particular, intercultural and intergenerational approaches to support these young EU citizens from abroad in their efforts to become involved and participate effectively in society should be given significant attention, as important elements of a ‘welcome culture’ strategy. |
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6.3

Accordingly, the European Commission should be urged to take steps to document successful practices aimed at tackling the specific difficulties faced by young migrant workers with regard to social integration and involvement in the host country. In particular, intercultural and intergenerational approaches to support these young EU citizens from abroad in their efforts to become involved and participate effectively in society should be given significant attention, as important elements of a ‘welcome culture’ strategy.

| 6.4 | The European Commission should encourage the Member States to emulate these practices in a creative way. At the same time, the Member States should be urged to inform the European Commission of tried-and-tested innovative strategies, programmes and concrete measures — by public and private providers — aimed at facilitating and supporting the social integration of young workers from other Member States, with a view to deepening the exchange of experience on the various forms of support and possibilities in this area. |
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6.4

The European Commission should encourage the Member States to emulate these practices in a creative way. At the same time, the Member States should be urged to inform the European Commission of tried-and-tested innovative strategies, programmes and concrete measures — by public and private providers — aimed at facilitating and supporting the social integration of young workers from other Member States, with a view to deepening the exchange of experience on the various forms of support and possibilities in this area.

| 6.5 | On the basis of this European documentation, the European Commission should analyse where there might still be a need for action and how this could be met. In addition, they should develop a strategy applying and supporting elements of tried-and-tested innovative practices through the EU's existing programmes, platforms, funds and initiatives. |
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6.5

On the basis of this European documentation, the European Commission should analyse where there might still be a need for action and how this could be met. In addition, they should develop a strategy applying and supporting elements of tried-and-tested innovative practices through the EU's existing programmes, platforms, funds and initiatives.

| 6.6 | The European Commission should ensure that that young people themselves play a significant part through their civil society organisations, in order to guarantee that their needs and difficulties can be properly recorded, understood and ultimately addressed through targeted support. |
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6.6

The European Commission should ensure that that young people themselves play a significant part through their civil society organisations, in order to guarantee that their needs and difficulties can be properly recorded, understood and ultimately addressed through targeted support.

Brussels, 30 April 2014

The President of the European Economic and Social Committee

Henri MALOSSE

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(1)  http://www.ses-bonn.de/.

1

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| 12.9.2014 | EN | Official Journal of the European Union | C 311/7 |
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12.9.2014

EN

Official Journal of the European Union

C 311/7

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Opinion of the European Economic and Social Committee on ‘Employability of young people — matching training with industry needs in an age of austerity’

2014/C 311/02

Rapporteur: Mr Dumitru Fornea

Co-rapporteur: Mr Tommaso Grimaldi

On 11 July 2013 the European Economic and Social Committee, acting under Rule 29(2) of its Rules of Procedure, decided to draw up an own-initiative opinion on

Employability of young people — matching training with industry needs in an age of austerity.

The Consultative Commission on Industrial Change, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 8 April 2014.

At its 498nd plenary session, held on 29 and 30 April 2014 (meeting of 30 April), the European Economic and Social Committee adopted the following opinion by 156 votes in favour and 2 votes against.

1.   Conclusions and recommendations

| 1.1 | The severe Youth unemployment crisis requires that governments, employers, workers and civil society work harder and together to promote, create and maintain decent (1) and sustainable jobs. The issue has become a political as well as an economic challenge. The EESC has already stresses that a real growth strategy at EU and national level is needed to support the creation of better and more stable jobs for young people. The EESC considers that it is paramount for governments to make impressive and corrective efforts to keep the crisis from worsening. |
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1.1

The severe Youth unemployment crisis requires that governments, employers, workers and civil society work harder and together to promote, create and maintain decent (1) and sustainable jobs. The issue has become a political as well as an economic challenge. The EESC has already stresses that a real growth strategy at EU and national level is needed to support the creation of better and more stable jobs for young people. The EESC considers that it is paramount for governments to make impressive and corrective efforts to keep the crisis from worsening.

| 1.2 | As agreed by the European Council in its conclusions of June 2013, the EESC considers that Member States should make every effort to ensure that the Youth Employment Initiative (YEI) and the Youth Guarantee (YG) are fully operational without delay. The allocation of national and European funds for education and training, Youth employment and long-term unemployment must be substantially increased. |
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1.2

As agreed by the European Council in its conclusions of June 2013, the EESC considers that Member States should make every effort to ensure that the Youth Employment Initiative (YEI) and the Youth Guarantee (YG) are fully operational without delay. The allocation of national and European funds for education and training, Youth employment and long-term unemployment must be substantially increased.

| 1.3 | The EESC strongly recommends that the concrete action plans already adopted by MSs to tackle youth unemployment and youth employability be submitted for regular evaluation, with civil society involvement. The EESC believes that in those plans and programmes, concrete measures should be taken to enable young graduates to have workplace skills, including among others management and team work expertise, problem-solving and creativity abilities to improve their versatility and possibilities on the labour market. |
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1.3

The EESC strongly recommends that the concrete action plans already adopted by MSs to tackle youth unemployment and youth employability be submitted for regular evaluation, with civil society involvement. The EESC believes that in those plans and programmes, concrete measures should be taken to enable young graduates to have workplace skills, including among others management and team work expertise, problem-solving and creativity abilities to improve their versatility and possibilities on the labour market.

| 1.4 | The EESC recommends that Member States, and all the authorities involved, should consider the employability as an ongoing process which affects the entire working life. Member States should foresee and create tools and conditions in order to help people to update, improve and evaluate their employability level. Increasing the recognition and transparency of skills and qualifications has an important role to play in matching the employability of youths searching for jobs with the needs of the market as well their mobility. EESC supports EU policies to increase the recognition and transparency of skills, competences and qualifications and their related tools, such as the EQF, ESCO, Europass and the quality assurance and credit systems. |
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1.4

The EESC recommends that Member States, and all the authorities involved, should consider the employability as an ongoing process which affects the entire working life. Member States should foresee and create tools and conditions in order to help people to update, improve and evaluate their employability level. Increasing the recognition and transparency of skills and qualifications has an important role to play in matching the employability of youths searching for jobs with the needs of the market as well their mobility. EESC supports EU policies to increase the recognition and transparency of skills, competences and qualifications and their related tools, such as the EQF, ESCO, Europass and the quality assurance and credit systems.

| 1.5 | The EESC affirms with conviction that the responsibility of employability is not only individual. Employability is a matter that should be faced and shared by all stakeholders: governments, social partners, universities, schools, local authorities, individual workers, among others. An improved partnership between enterprises and education institutions is strongly recommended, and in this regard, high quality in-company training programmes should be promoted in line with the principles and the methods of the European Alliance for Apprenticeships and the proposed Quality Framework for Traineeships. |
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1.5

The EESC affirms with conviction that the responsibility of employability is not only individual. Employability is a matter that should be faced and shared by all stakeholders: governments, social partners, universities, schools, local authorities, individual workers, among others. An improved partnership between enterprises and education institutions is strongly recommended, and in this regard, high quality in-company training programmes should be promoted in line with the principles and the methods of the European Alliance for Apprenticeships and the proposed Quality Framework for Traineeships.

| 1.6 | Member States should provide incentives to those universities and R&D units that offer degree courses in line with globalised market needs. This could also be useful in terms of promoting a high level of professionalism. |
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1.6

Member States should provide incentives to those universities and R&D units that offer degree courses in line with globalised market needs. This could also be useful in terms of promoting a high level of professionalism.

| 1.7 | Concerned by the recent trends of reducing education budget in several MS, the EESC recommends that EU Members allocate enough resources to ensure that education personnel provide a quality education for all. The teaching profession in Europe is not seen as an attractive one and suffers from shortages, a problem that could increase in the near future (2). Decent working conditions, salaries and pensions are necessary to make Education an attractive career option. |
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1.7

Concerned by the recent trends of reducing education budget in several MS, the EESC recommends that EU Members allocate enough resources to ensure that education personnel provide a quality education for all. The teaching profession in Europe is not seen as an attractive one and suffers from shortages, a problem that could increase in the near future (2). Decent working conditions, salaries and pensions are necessary to make Education an attractive career option.

| 1.8 | The EESC welcomes the EC's decision to establish the Erasmus + programme, which also fosters cross-border vocational training, and hopes that, as agreed, this will be fully operational without delay. The agreement reached between the European Parliament and the Council on the recognition of professional qualifications is particularly welcome. |
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1.8

The EESC welcomes the EC's decision to establish the Erasmus + programme, which also fosters cross-border vocational training, and hopes that, as agreed, this will be fully operational without delay. The agreement reached between the European Parliament and the Council on the recognition of professional qualifications is particularly welcome.

| 1.9 | The EESC welcomes the Framework of Actions on Youth Employment agreed by the social partners in June 2013. At a time of economic and social crisis, Europe must fully utilise the potential of its population from all socio-economic backgrounds, while ensuring cost-effectiveness. |
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1.9

The EESC welcomes the Framework of Actions on Youth Employment agreed by the social partners in June 2013. At a time of economic and social crisis, Europe must fully utilise the potential of its population from all socio-economic backgrounds, while ensuring cost-effectiveness.

| 1.10 | The EESC reaffirms its conviction that EU initiatives designed to tackle the problem of youth unemployment should result in concrete measures that will promote an effective industrial policy aimed at advancing European industry and boosting its competitiveness in a socially acceptable and sustainable way. |
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1.10

The EESC reaffirms its conviction that EU initiatives designed to tackle the problem of youth unemployment should result in concrete measures that will promote an effective industrial policy aimed at advancing European industry and boosting its competitiveness in a socially acceptable and sustainable way.

| 1.11 | The EESC recommends that the MS pay particular attention to the negative effects of the systematic use of temporary contracts for young people, which has also important implications for social security nets (fewer contributions) and the social cohesion of Member States. |
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1.11

The EESC recommends that the MS pay particular attention to the negative effects of the systematic use of temporary contracts for young people, which has also important implications for social security nets (fewer contributions) and the social cohesion of Member States.

| 1.12 | The EESC feels that investment to improve youth employability is crucial for the future of European economies and societies. The initiatives approved should be easily accessible for all young people without discrimination or gender bias, and they should be accompanied by concrete measures for inclusion. Relevant stakeholders (including social partners and youth organisations) at local, regional and national level should be involved in designing, implementing and evaluating the outcomes of these initiatives. |
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1.12

The EESC feels that investment to improve youth employability is crucial for the future of European economies and societies. The initiatives approved should be easily accessible for all young people without discrimination or gender bias, and they should be accompanied by concrete measures for inclusion. Relevant stakeholders (including social partners and youth organisations) at local, regional and national level should be involved in designing, implementing and evaluating the outcomes of these initiatives.

| 1.13 | Concrete national and local measures should continue to be developed to offer a lifelong learning accessible to all, with social partners and civil society participation and regular outcomes evaluation. |
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1.13

Concrete national and local measures should continue to be developed to offer a lifelong learning accessible to all, with social partners and civil society participation and regular outcomes evaluation.

| 1.14 | In work-based learning models, such as dual learning systems, a significant part of the training is conducted within companies. Young workers should have the possibility to alternate between learning in school and on-the-job training in a company. The EESC is convinced of the success of dual learning systems like implemented in some Member States. Shared responsibilities both on public as well as on business side to invest in the future is key for successful apprenticeship schemes. |
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1.14

In work-based learning models, such as dual learning systems, a significant part of the training is conducted within companies. Young workers should have the possibility to alternate between learning in school and on-the-job training in a company. The EESC is convinced of the success of dual learning systems like implemented in some Member States. Shared responsibilities both on public as well as on business side to invest in the future is key for successful apprenticeship schemes.

| 1.15 | The Committee recommends that steps be taken to ensure the quality and relevance of the proposed activities, and to establish an appropriate framework, whereby the responsibilities, rights and obligations of each stakeholder are clearly formulated and are enforceable in practice. The social dialogue between employers and trades unions should continue to be developed, and utilised as an important tool to identify future labour market perspectives, to foster job creation, to share training practices more adequate to labour market needs and to encourage young women and men to improve their skills and capabilities in order to better respond to the developing needs of industry. |
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1.15

The Committee recommends that steps be taken to ensure the quality and relevance of the proposed activities, and to establish an appropriate framework, whereby the responsibilities, rights and obligations of each stakeholder are clearly formulated and are enforceable in practice. The social dialogue between employers and trades unions should continue to be developed, and utilised as an important tool to identify future labour market perspectives, to foster job creation, to share training practices more adequate to labour market needs and to encourage young women and men to improve their skills and capabilities in order to better respond to the developing needs of industry.

| 1.16 | The current economic and social crisis is imposing constraints on the EU Member States' budgetary decisions, especially those subject to fiscal adjustment programmes — a situation that is exacerbated by the reduction in the EU's own budget. Considering the central role covered by education in the development of employability conditions, the EESC recommends that Member States improve the resources allocated for quality education that should be considered not as expenditure but as essential investment to overcome the crisis and build a better future for all. In view of this, the EESC has endorsed the European Citizens Initiative on ‘Education is an investment! Do not count education as part of the deficit!’
   (3). The Committee warns that the cuts being applied to education and training budgets are in danger of turning vital initiatives and proposals into mere statements of good intention. Taking into consideration the importance of education and training in tackling youth unemployment, the EESC strongly recommends that the EC organises a ‘European education and training day’ in 2015. |
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1.16

The current economic and social crisis is imposing constraints on the EU Member States' budgetary decisions, especially those subject to fiscal adjustment programmes — a situation that is exacerbated by the reduction in the EU's own budget. Considering the central role covered by education in the development of employability conditions, the EESC recommends that Member States improve the resources allocated for quality education that should be considered not as expenditure but as essential investment to overcome the crisis and build a better future for all. In view of this, the EESC has endorsed the European Citizens Initiative on ‘Education is an investment! Do not count education as part of the deficit!’
   (3). The Committee warns that the cuts being applied to education and training budgets are in danger of turning vital initiatives and proposals into mere statements of good intention. Taking into consideration the importance of education and training in tackling youth unemployment, the EESC strongly recommends that the EC organises a ‘European education and training day’ in 2015.

| 1.17 | The EESC considers that industries and enterprises should invest in production facilities and implement their salary and communication policies in order to increase the attractiveness of the industrial sector. Improving the dialogue between enterprises and vocational training associations could represent an important step in order to face the theme of employability and could reduce the mismatch between demand-side and supply-side. |
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1.17

The EESC considers that industries and enterprises should invest in production facilities and implement their salary and communication policies in order to increase the attractiveness of the industrial sector. Improving the dialogue between enterprises and vocational training associations could represent an important step in order to face the theme of employability and could reduce the mismatch between demand-side and supply-side.

| 1.18 | All the initiatives adopted to improve youth employability should be adequately funded, via the ESF and other Structural Funds. The EESC recommends that, when using the Structural Funds, particular emphasis should be placed on youth employability, including action to re-programme unspent funds where appropriate |
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1.18

All the initiatives adopted to improve youth employability should be adequately funded, via the ESF and other Structural Funds. The EESC recommends that, when using the Structural Funds, particular emphasis should be placed on youth employability, including action to re-programme unspent funds where appropriate

2.   Introduction

| 2.1 | European industry comprises a wide range of companies, including large companies, SMEs, and micro-industries with different labour requirements. It therefore needs workers with different skills and capacities. These differences should be taken into account when designing education and training systems. The social dialogue between employers and trades unions should continue to be developed and utilised as an important tool to identify future labour market perspectives, to foster job creation, to share training practices more adequate to labour market needs and to encourage young women and men to improve their skills and capabilities in order to better respond to the developing needs of industry. |
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2.1

European industry comprises a wide range of companies, including large companies, SMEs, and micro-industries with different labour requirements. It therefore needs workers with different skills and capacities. These differences should be taken into account when designing education and training systems. The social dialogue between employers and trades unions should continue to be developed and utilised as an important tool to identify future labour market perspectives, to foster job creation, to share training practices more adequate to labour market needs and to encourage young women and men to improve their skills and capabilities in order to better respond to the developing needs of industry.

| 2.2 | The EU and the Member States need an industrial policy that facilitates growth and encourages the creation of new high-quality jobs (4). The EC considers that a strong partnership is needed between the EU, Member States and industry, in order to ensure an effective cooperation framework and to stimulate investments in technologies and human resources giving the European industrial sector a competitive advantage over global competitors. To tackle this and the general issue of employability in industry, the EC gave assurances (5) that one of the pillars of the new industrial policy would be investments in people and skills. |
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2.2

The EU and the Member States need an industrial policy that facilitates growth and encourages the creation of new high-quality jobs (4). The EC considers that a strong partnership is needed between the EU, Member States and industry, in order to ensure an effective cooperation framework and to stimulate investments in technologies and human resources giving the European industrial sector a competitive advantage over global competitors. To tackle this and the general issue of employability in industry, the EC gave assurances (5) that one of the pillars of the new industrial policy would be investments in people and skills.

| 2.3 | The financial crisis which started in 2008 has severely wounded many European economies and until now recovery has been developing very slowly. An issue that could make the recovery more difficult and which consequences for the future could be even more disturbing is the youth unemployment crisis, which requires governments, employers, workers and civil society to work together to promote, create and maintain decent and productive jobs. |
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2.3

The financial crisis which started in 2008 has severely wounded many European economies and until now recovery has been developing very slowly. An issue that could make the recovery more difficult and which consequences for the future could be even more disturbing is the youth unemployment crisis, which requires governments, employers, workers and civil society to work together to promote, create and maintain decent and productive jobs.

| 2.4 | European leaders seem to take this crisis seriously, but as the Committee has stressed in previous opinions (6), the new initiatives won’t help to solve the problem unless they address the roots of it. The issue has become a political as well as an economic challenge. It would be wrong to generalise — the situation is certainly not the same in every country and at local level, but for many young Europeans, however, completing and funding their studies, finding not just a short-term job or a traineeship but a real job, starting their own project or business, living independently or raising a family are all part of the same daily struggle. Even if unemployment is not a new phenomenon in Europe, increasing youth unemployment is one of the most visible effects of the current economic crisis, both in relation to job destruction and the non-creation of jobs (7). |
| --- | --- |

2.4

European leaders seem to take this crisis seriously, but as the Committee has stressed in previous opinions (6), the new initiatives won’t help to solve the problem unless they address the roots of it. The issue has become a political as well as an economic challenge. It would be wrong to generalise — the situation is certainly not the same in every country and at local level, but for many young Europeans, however, completing and funding their studies, finding not just a short-term job or a traineeship but a real job, starting their own project or business, living independently or raising a family are all part of the same daily struggle. Even if unemployment is not a new phenomenon in Europe, increasing youth unemployment is one of the most visible effects of the current economic crisis, both in relation to job destruction and the non-creation of jobs (7).

| 2.5 | Many EU positive initiatives (like the YGI) will offer job training and apprenticeships. However they do not always guarantee access to a job. And this highlights a major disconnect: jobs are normally a consequence of economic growth. The EESC has already stressed that a real growth strategy at EU and national level is needed to support the creation of better and more stable jobs for young people. The EESC considers that it is paramount for governments to make impressive and corrective efforts to keep the crisis from worsening. As the EC has pointed out, ‘young people hold the key to Europe's future dynamism and prosperity’
   (8). |
| --- | --- |

2.5

Many EU positive initiatives (like the YGI) will offer job training and apprenticeships. However they do not always guarantee access to a job. And this highlights a major disconnect: jobs are normally a consequence of economic growth. The EESC has already stressed that a real growth strategy at EU and national level is needed to support the creation of better and more stable jobs for young people. The EESC considers that it is paramount for governments to make impressive and corrective efforts to keep the crisis from worsening. As the EC has pointed out, ‘young people hold the key to Europe's future dynamism and prosperity’
   (8).

| 2.6 | The concept of ‘employability’ has no single universally accepted definition, it is a dynamic concept and there is a general trend towards a broadening it to include contextual factors. Despite its importance in labour market discourses, is difficult to measure and there are multiple approaches to defining employability. As such, employability is affected by both supply-side and demand-side factors which are often outside the individual's control. At a time of economic and social crisis, Europe needs to fully utilise the potential creativity, energy and capacities of its population, from all socio-economic backgrounds. Strong and very active civil society organisations play an important enabling role. |
| --- | --- |

2.6

The concept of ‘employability’ has no single universally accepted definition, it is a dynamic concept and there is a general trend towards a broadening it to include contextual factors. Despite its importance in labour market discourses, is difficult to measure and there are multiple approaches to defining employability. As such, employability is affected by both supply-side and demand-side factors which are often outside the individual's control. At a time of economic and social crisis, Europe needs to fully utilise the potential creativity, energy and capacities of its population, from all socio-economic backgrounds. Strong and very active civil society organisations play an important enabling role.

| 2.7 | Employability is largely determined by the quality and relevance of the education and training provided by national and local authorities. While noting that local authorities are working to strike the right balance to enable improvements in this respect, the EESC considers that the current education and training systems do not always coherently reflect decisions taken at European level. Despite the Commission calls, in the context of the OMC, to local authorities to share their institutional responses to the problems of youth mobility and training, improve the quality of training, certification and updates, respond appropriately to the needs of the labour market, comply with a timetable of achievements related to shared objectives and with benchmarks and results, analyse and integrate the findings of studies and research, there are still too many institutional obstacles and an absence of real commitment standing in the way of a real European shared area of Education and Training. |
| --- | --- |

2.7

Employability is largely determined by the quality and relevance of the education and training provided by national and local authorities. While noting that local authorities are working to strike the right balance to enable improvements in this respect, the EESC considers that the current education and training systems do not always coherently reflect decisions taken at European level. Despite the Commission calls, in the context of the OMC, to local authorities to share their institutional responses to the problems of youth mobility and training, improve the quality of training, certification and updates, respond appropriately to the needs of the labour market, comply with a timetable of achievements related to shared objectives and with benchmarks and results, analyse and integrate the findings of studies and research, there are still too many institutional obstacles and an absence of real commitment standing in the way of a real European shared area of Education and Training.

| 2.8 | Employers are aware of the skills and capacities of today’s employees, but need to be more aware of the skills and capacities of future employees in a fast changing workplace, in particular because of the development of technologies that make it vital for employees to continually acquire and update their skills. Companies have different characteristics and different needs, making it essential for education and vocational training to be adaptable and flexible in the skills they teach. As the EESC stressed in its opinion SOC/476, a better and more relevant cooperation between education institutions at all levels and industry is strongly needed. |
| --- | --- |

2.8

Employers are aware of the skills and capacities of today’s employees, but need to be more aware of the skills and capacities of future employees in a fast changing workplace, in particular because of the development of technologies that make it vital for employees to continually acquire and update their skills. Companies have different characteristics and different needs, making it essential for education and vocational training to be adaptable and flexible in the skills they teach. As the EESC stressed in its opinion SOC/476, a better and more relevant cooperation between education institutions at all levels and industry is strongly needed.

| 2.9 | Given that education and vocational training are not the only elements that shape the employability of an individual, focusing on education alone is too restrictive an approach. Quality traineeship schemes, work-based learning (in school or companies) or apprenticeships and targeted employment programmes must be considered key ways of getting young women and men onto the labour market, but they cannot be seen as the ultimate solution to the problem of employability. It is important to recognise that labour markets are embedded in society and culture, as are economic institutions, and that informal norms and customs also shape labour market practice. |
| --- | --- |

2.9

Given that education and vocational training are not the only elements that shape the employability of an individual, focusing on education alone is too restrictive an approach. Quality traineeship schemes, work-based learning (in school or companies) or apprenticeships and targeted employment programmes must be considered key ways of getting young women and men onto the labour market, but they cannot be seen as the ultimate solution to the problem of employability. It is important to recognise that labour markets are embedded in society and culture, as are economic institutions, and that informal norms and customs also shape labour market practice.

| 2.10 | The EESC believes that what has been discussed and approved at European level on education and training cannot be reduced merely to an exchange of good practice. In this respect, it is hoped that training systems will be capable of responding to employment needs, creating new professionals that can cope with the constant changes in work organisation and modern society. Considering, therefore, the deadlines laid down for ET 2020 and the Bruges Declaration, the EESC calls for an evaluation and a careful analysis of how commitments are implemented in practice and objectives achieved. |
| --- | --- |

2.10

The EESC believes that what has been discussed and approved at European level on education and training cannot be reduced merely to an exchange of good practice. In this respect, it is hoped that training systems will be capable of responding to employment needs, creating new professionals that can cope with the constant changes in work organisation and modern society. Considering, therefore, the deadlines laid down for ET 2020 and the Bruges Declaration, the EESC calls for an evaluation and a careful analysis of how commitments are implemented in practice and objectives achieved.

3.   General comments

| 3.1 | In a number of opinions, the CCMI has highlighted a host of economic, industrial and social issues including employability and re-skilling, in particular during the current crisis (9). Linked to the proposed Guarantee for youth employment approved by the European Commission in June 2013, the European social partners (10) presented a Framework for joint action on the employment of young people focusing on knowledge, the transition from school to work, employment and the development of entrepreneurship. |
| --- | --- |

3.1

In a number of opinions, the CCMI has highlighted a host of economic, industrial and social issues including employability and re-skilling, in particular during the current crisis (9). Linked to the proposed Guarantee for youth employment approved by the European Commission in June 2013, the European social partners (10) presented a Framework for joint action on the employment of young people focusing on knowledge, the transition from school to work, employment and the development of entrepreneurship.

| 3.2 | Young people are the present and the future of Europe and a rich source of dynamism in our societies. However, the social and economic inclusion of young people presumes and requires a sequence of successful transitions. In a context in which the transition to adult life has become more complex, quality education for all and inclusive labour markets are key vehicles of those successful transitions. A holistic approach is needed to foster dynamic, open and mobile labour markets for young people with measures and appropriate resources focusing on the creation of more and better jobs, high-quality learning outcomes, and a better match between skills supply and demand, including through the spread of work-based learning across Europe. |
| --- | --- |

3.2

Young people are the present and the future of Europe and a rich source of dynamism in our societies. However, the social and economic inclusion of young people presumes and requires a sequence of successful transitions. In a context in which the transition to adult life has become more complex, quality education for all and inclusive labour markets are key vehicles of those successful transitions. A holistic approach is needed to foster dynamic, open and mobile labour markets for young people with measures and appropriate resources focusing on the creation of more and better jobs, high-quality learning outcomes, and a better match between skills supply and demand, including through the spread of work-based learning across Europe.

| 3.3 | Civil society organisations in many Member States (in particular those hardest hit by the current crisis) have in various ways stressed the importance of combining an individual approach to labour market needs with a collective approach (the context, environment, work organisation and working conditions) that would take account of young people's expectations and aspirations. To be fully effective, such measures should be incentivised by European funding and growth — enhancing measures, and not limited to the EUR 6-8 billion under the Youth Employment Initiative, a sum that should be substantially increased. |
| --- | --- |

3.3

Civil society organisations in many Member States (in particular those hardest hit by the current crisis) have in various ways stressed the importance of combining an individual approach to labour market needs with a collective approach (the context, environment, work organisation and working conditions) that would take account of young people's expectations and aspirations. To be fully effective, such measures should be incentivised by European funding and growth — enhancing measures, and not limited to the EUR 6-8 billion under the Youth Employment Initiative, a sum that should be substantially increased.

4.   Specific comments

| 4.1 | The principles and the working methods of the European Alliance for Apprenticeships and the Quality Framework for Traineeships, reinforces the EESC's conviction that apprenticeships, internships in enterprises and traineeships are important means for young people to acquire skills and work experience, and should form part of corporate strategies. The Committee recommends that MS and industry ensure the quality and relevance of the proposed activities, and to establish an appropriate framework, whereby the responsibilities, rights and obligations of each stakeholder are clearly formulated and are enforceable in practice. |
| --- | --- |

4.1

The principles and the working methods of the European Alliance for Apprenticeships and the Quality Framework for Traineeships, reinforces the EESC's conviction that apprenticeships, internships in enterprises and traineeships are important means for young people to acquire skills and work experience, and should form part of corporate strategies. The Committee recommends that MS and industry ensure the quality and relevance of the proposed activities, and to establish an appropriate framework, whereby the responsibilities, rights and obligations of each stakeholder are clearly formulated and are enforceable in practice.

| 4.2 | Considering that obtaining recognised university degrees at various levels is important but it is no longer enough, the Committee believe that while implementing the YG plans and programmes concrete measures should be taken to enable young graduates to have workplace skills, including among others management and team work expertise, problem-solving and creativity abilities to improve their possibilities at the labour market. |
| --- | --- |

4.2

Considering that obtaining recognised university degrees at various levels is important but it is no longer enough, the Committee believe that while implementing the YG plans and programmes concrete measures should be taken to enable young graduates to have workplace skills, including among others management and team work expertise, problem-solving and creativity abilities to improve their possibilities at the labour market.

| 4.3 | In work-based learning models, such as dual learning systems, a significant part of the training is conducted within companies. Young workers should have the possibility to alternate between learning in school and on-the-job training in a company. The EESC is convinced of the success of dual learning systems like implemented in some Member States Shared responsibilities both on public as well as on business side to invest in the future is key for successful apprenticeship schemes. |
| --- | --- |

4.3

In work-based learning models, such as dual learning systems, a significant part of the training is conducted within companies. Young workers should have the possibility to alternate between learning in school and on-the-job training in a company. The EESC is convinced of the success of dual learning systems like implemented in some Member States Shared responsibilities both on public as well as on business side to invest in the future is key for successful apprenticeship schemes.

| 4.4 | Stimulating learning makes sense, provided that this task does not depend solely on the effort that each person can and must make. Otherwise, the groups that are already the most disadvantaged or marginalised will, collectively, remain segregated. Concrete national and local measures should continue to be developed to offer a lifelong learning accessible to all, with social partners and civil society participation and regular outcomes evaluation. |
| --- | --- |

4.4

Stimulating learning makes sense, provided that this task does not depend solely on the effort that each person can and must make. Otherwise, the groups that are already the most disadvantaged or marginalised will, collectively, remain segregated. Concrete national and local measures should continue to be developed to offer a lifelong learning accessible to all, with social partners and civil society participation and regular outcomes evaluation.

| 4.5 | When reviewing education/training systems it is important to ensure that Education can remain an attractive and competitive profession. Revitalising the teaching profession is also in tune with the developing needs of the labour market. Highly motivated and well-prepared teachers are needed to be able to handle the diverse range of demands from society, industry and students. |
| --- | --- |

4.5

When reviewing education/training systems it is important to ensure that Education can remain an attractive and competitive profession. Revitalising the teaching profession is also in tune with the developing needs of the labour market. Highly motivated and well-prepared teachers are needed to be able to handle the diverse range of demands from society, industry and students.

| 4.6 | Education, training and careers advice should support young women and men in their efforts to gain a better education, qualifications and skills. Career guidance materials should include clear information about available jobs and career prospects on the labour market (11). The EESC welcomed the European Commission's decision to establish the Erasmus + programme, which also fosters cross-border vocational training, and hopes that, as agreed, it will be fully operational in 2014. The agreement recently reached between the European Parliament and the Council on the recognition of professional qualifications is particularly welcome. |
| --- | --- |

4.6

Education, training and careers advice should support young women and men in their efforts to gain a better education, qualifications and skills. Career guidance materials should include clear information about available jobs and career prospects on the labour market (11). The EESC welcomed the European Commission's decision to establish the Erasmus + programme, which also fosters cross-border vocational training, and hopes that, as agreed, it will be fully operational in 2014. The agreement recently reached between the European Parliament and the Council on the recognition of professional qualifications is particularly welcome.

| 4.7 | Member States should provide incentives to universities and R&D units that offer degree courses in line with globalised market needs; this could help to promote a high level of professionalism. |
| --- | --- |

4.7

Member States should provide incentives to universities and R&D units that offer degree courses in line with globalised market needs; this could help to promote a high level of professionalism.

| 4.8 | Introducing mandatory training could be considered a kind of ‘career insurance’. However, apprenticeship and traineeship must not become a way of disseminate cheap or unpaid labour. Industry best practices should be recognised and abuses should not be tolerated. Any learning or training period must result in a diploma or certificate recognising the qualifications gained. |
| --- | --- |

4.8

Introducing mandatory training could be considered a kind of ‘career insurance’. However, apprenticeship and traineeship must not become a way of disseminate cheap or unpaid labour. Industry best practices should be recognised and abuses should not be tolerated. Any learning or training period must result in a diploma or certificate recognising the qualifications gained.

| 4.9 | Taking into account the existing differences between young men and women entering labour markets, the EESC emphasises the importance of approaching youth unemployment with an appropriate gender perspective, including concrete action where required. The Council Recommendation on Establishing a Youth Guarantee thus specifies that YG schemes should pay attention to the gender and diversity of the young people who are being targeted (12). |
| --- | --- |

4.9

Taking into account the existing differences between young men and women entering labour markets, the EESC emphasises the importance of approaching youth unemployment with an appropriate gender perspective, including concrete action where required. The Council Recommendation on Establishing a Youth Guarantee thus specifies that YG schemes should pay attention to the gender and diversity of the young people who are being targeted (12).

| 4.10 | To improve employability, every effort must be made to reflect actual conditions on the ground. The more policy measures do this, the greater their chance of boosting employability. Any action designed to foster economic development must be linked to on-the-ground conditions as this is the only path to sustainable excellence. Creating local partnerships will be useful to increase dialogue and actions to confront Youth unemployment. Local institutions, universities, youth organisations, public authorities and vocational training bodies, unions and employers operating in the same local area should find way of working together to identify possible common strategies. Local characteristics and needs will be better recognised and taken in to account to improve employment opportunities for young people. |
| --- | --- |

4.10

To improve employability, every effort must be made to reflect actual conditions on the ground. The more policy measures do this, the greater their chance of boosting employability. Any action designed to foster economic development must be linked to on-the-ground conditions as this is the only path to sustainable excellence. Creating local partnerships will be useful to increase dialogue and actions to confront Youth unemployment. Local institutions, universities, youth organisations, public authorities and vocational training bodies, unions and employers operating in the same local area should find way of working together to identify possible common strategies. Local characteristics and needs will be better recognised and taken in to account to improve employment opportunities for young people.

| 4.11 | Member States should include entrepreneurship courses in school curricula and promote entrepreneurship in work-based learning models, in line with the new Entrepreneurship 2020 Action Plan launched by the European Commission. Entrepreneurship should be considered as a broad concept encompassing more than just business start-ups. People have to learn and understand how to be entrepreneurs in their own lives from a young age. Entrepreneurship education should prepare people for life by teaching them to show initiative, take responsibility and analyse situations. The EESC believes that developing skills and competences such as creativity, initiative, tenacity, and teamwork are essential for all, not just for future entrepreneurs who want to set up businesses. These skills should equip a generation to work effectively in all sectors and drive the infrastructure needed for a successful European economy. |
| --- | --- |

4.11

Member States should include entrepreneurship courses in school curricula and promote entrepreneurship in work-based learning models, in line with the new Entrepreneurship 2020 Action Plan launched by the European Commission. Entrepreneurship should be considered as a broad concept encompassing more than just business start-ups. People have to learn and understand how to be entrepreneurs in their own lives from a young age. Entrepreneurship education should prepare people for life by teaching them to show initiative, take responsibility and analyse situations. The EESC believes that developing skills and competences such as creativity, initiative, tenacity, and teamwork are essential for all, not just for future entrepreneurs who want to set up businesses. These skills should equip a generation to work effectively in all sectors and drive the infrastructure needed for a successful European economy.

| 4.12 | The Commission recognises that Europe ‘needs a thorough, far-reaching cultural change’ (13), to introduce effective entrepreneurial learning methodologies in the classroom. The EESC also recommends that changes be introduced in teacher training and Member States should be advised to make sufficient provision for teacher development in this area. Policy delivery is contingent on appropriate staff, which needs to be trained and supported. |
| --- | --- |

4.12

The Commission recognises that Europe ‘needs a thorough, far-reaching cultural change’ (13), to introduce effective entrepreneurial learning methodologies in the classroom. The EESC also recommends that changes be introduced in teacher training and Member States should be advised to make sufficient provision for teacher development in this area. Policy delivery is contingent on appropriate staff, which needs to be trained and supported.

| 4.13 | In earlier opinions, the EESC (14) has drawn attention to the implications for the employment of young women and men of reducing the role of permanent contracts, and recommended considering the risks arising from this development. Temporary contracts, which are now commonplace for young people, particularly at the start of their careers, have led to a more segmented labour market. The EESC recommends that the Member States pay particular attention to this aspect, which also has important implications for social security nets (fewer contributions) and the cohesion of Member State societies. |
| --- | --- |

4.13

In earlier opinions, the EESC (14) has drawn attention to the implications for the employment of young women and men of reducing the role of permanent contracts, and recommended considering the risks arising from this development. Temporary contracts, which are now commonplace for young people, particularly at the start of their careers, have led to a more segmented labour market. The EESC recommends that the Member States pay particular attention to this aspect, which also has important implications for social security nets (fewer contributions) and the cohesion of Member State societies.

| 4.14 | The current economic and social crisis is imposing constraints on the EU Member States' budgetary decisions, especially those subject to fiscal adjustment programmes — a situation that is exacerbated by the reduction in the EU's own budget. The Committee warns that the cuts being applied to education and training budgets are in danger of turning vital initiatives and proposals into mere statements of good intention. In view of this, the EESC endorses the European Citizens Initiative on ‘Education is an investment! Do not count education as part of the deficit!’. |
| --- | --- |

4.14

The current economic and social crisis is imposing constraints on the EU Member States' budgetary decisions, especially those subject to fiscal adjustment programmes — a situation that is exacerbated by the reduction in the EU's own budget. The Committee warns that the cuts being applied to education and training budgets are in danger of turning vital initiatives and proposals into mere statements of good intention. In view of this, the EESC endorses the European Citizens Initiative on ‘Education is an investment! Do not count education as part of the deficit!’.

| 4.15 | All initiatives to improve youth employability should be implemented promptly across Europe, and adequately funded via the ESF and other Structural Funds. The EESC feels that this is crucial investment in the future of European economies and societies. These initiatives should be easily accessible for all young people without discrimination. Relevant stakeholders (including social partners and youth organisations) at local, regional and national level should be involved in implementation and evaluation of their outcomes. The EESC recommends that, when using the Structural Funds, particular emphasis should be placed on youth employability, including action to re-programme unspent funds where appropriate. |
| --- | --- |

4.15

All initiatives to improve youth employability should be implemented promptly across Europe, and adequately funded via the ESF and other Structural Funds. The EESC feels that this is crucial investment in the future of European economies and societies. These initiatives should be easily accessible for all young people without discrimination. Relevant stakeholders (including social partners and youth organisations) at local, regional and national level should be involved in implementation and evaluation of their outcomes. The EESC recommends that, when using the Structural Funds, particular emphasis should be placed on youth employability, including action to re-programme unspent funds where appropriate.

Brussels, 30 April 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

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(1)  The Decent Jobs concept was formulated by the ILO’s constituents — governments, employers and workers — based on the understanding that work is a source of personal dignity, social cohesion, peace in the community and democracy and economic growth that expands opportunities for quality jobs and enterprise development. ILO, www.ilo.org.

1

(2)  See ‘Key Data on Teachers & School Leaders in Europe’. 2013 Eurydice Report, European Commission.

2

(3)  Initiated by Greek citizens and promoted by DIKTIO — ‘The Network’.

3

(4)  The European Commission proposes that by 2020, the industrial sector should account for 16 % of the EU's GDP.

4

(5)  European Commission, 10 October 2012, ‘A Stronger European Industry for Growth and Economic Recovery’.

5

(6)  OJ C 68/11, 6.3.2012, p. 11-14, OJ C 143/94, 22.05.2012, p; 94-101; OJ C 299/97, 4.10.2012, p. 97-102; OJ C 11, 15.1.2013, p. 8-15;OJ C 161, 06.06.2013, p. 67-72.

6

(7)  ‘In times of economic downturn, young employees are not only the “last in” but also the “first out”, since it is more costly for employees to lay off older workers. Young workers are less likely to have had company training, have fewer skills, and are often on temporary contracts’ [...] ‘Even when youth are employed, they may not be in good jobs. In the developed world they are often on temporary contracts to make it easier to lay them off, or they are “underemployed” in jobs below their qualifications.’ (World Economic Forum — Youth Unemployment visualization 2013) http://www.weforum.org/community/global-agenda-councils/youth-unemployment-visualization-2013.

7

(8)  COM(2013) 447 final, June 2013.

8

(9)  ‘Industrial policy has a strong social dimension that affects all layers of society [...] the education sector and universities, consumers and citizens. Industrial policy relates both to restructuring and anticipation. It should provide up-to-date education, training and information, and foster technology, innovation, creativity, and entrepreneurship. Demographic change must also be anticipated and reacted to appropriately.’OJ C 327, 12.11.2013, p. 82.

9

(10)  ETUC, BUSINESS EUROPE, UEAPME and CEEP, 11 June 2013.

10

(11)  OJ C 327, 12.11.2013, p. 58-64.

11

(12)  ‘The Commission recognises that gender is one of the dimensions that policy measures should take into account in order to effectively fights youth unemployment.[...]. Young women are more likely than young men to be not in employment, education or training [...] Young men more frequently experience a successful transition path (i.e. ending with a permanent contract). In contrast, young women are more likely to be part-time and temporary workers and to start in the doubly fragile position of a temporary, part-time job. The Council Recommendation on Establishing a Youth Guarantee thus specifies that Youth Guarantee schemes should pay attention to the gender and diversity of the young people who are being targeted.’ Commissioner László Andor, Employment, Social Affairs and Inclusion, May 2013.

12

(13)  European Commission’s Communication on Entrepreneurship 2020 Action Plan.

13

(14)  EESC opinion on ‘Youth opportunities initiative’, OJ C 299, 4.10.2012, p. 97–102.

14

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| 12.9.2014 | EN | Official Journal of the European Union | C 311/15 |
| --- | --- | --- | --- |

12.9.2014

EN

Official Journal of the European Union

C 311/15

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Opinion of the European Economic and Social Committee on the ‘Reshoring of EU industries in the framework of reindustrialisation’

2014/C 311/03

Rapporteur: Edgardo Maria Iozia

Co-rapporteur: José Custódio Leirião

On 19 September 2013, the European Economic and Social Committee, acting under Rule 29(2) of its Rules of Procedure, decided to draw up an own-initiative opinion on the

Reshoring of EU industries in the framework of reindustrialisation.

The Consultative Commission on Industrial Change, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 8 April 2014.

At its 498th plenary session, held on 29 and 30 April 2014 (meeting of 29 April), the European Economic and Social Committee adopted the following opinion by 139 votes with 4 abstentions.

1.   Conclusions and recommendations

| 1.1 | The EESC is convinced that in order to halt the EU's economic decline, new impetus must be given to industry, and manufacturing in particular, one of the strong points of the production system. In this own-initiative opinion, the Committee sets out to identify a number of instruments that could prove useful in supporting the European Commission's initiative to reindustrialise the European Union, one aspect of which being the reshoring of businesses that have transferred their activities elsewhere. The Commission has also embarked on an analysis of the subject of reshoring. The Committee welcomes the fact that, in parallel with the drafting of this opinion, Eurofound has been tasked with assembling the set of data needed to understand the extent of the phenomenon of reshoring, and devising possible solutions. |
| --- | --- |

1.1

The EESC is convinced that in order to halt the EU's economic decline, new impetus must be given to industry, and manufacturing in particular, one of the strong points of the production system. In this own-initiative opinion, the Committee sets out to identify a number of instruments that could prove useful in supporting the European Commission's initiative to reindustrialise the European Union, one aspect of which being the reshoring of businesses that have transferred their activities elsewhere. The Commission has also embarked on an analysis of the subject of reshoring. The Committee welcomes the fact that, in parallel with the drafting of this opinion, Eurofound has been tasked with assembling the set of data needed to understand the extent of the phenomenon of reshoring, and devising possible solutions.

| 1.2 | The Committee supports the plan proposed by the Commission vice-president Mr Tajani to develop a reindustrialisation policy for the EU, bringing industry's share of EU GDP back up to at least 20 % from the current 15,1 %, and suggests that he extend and strengthen his project, turning it into a ‘social compact for Europe for a new sustainable and competitive industry’. In its recent communication (1) the Commission set out a number of priorities, including:






  — | deepening the mainstreaming of industrial competitiveness, paying particular attention to productivity in business services to increase industrial competitiveness and the competitiveness of the EU economy in general; |
| --- | --- | --- |

1.2

The Committee supports the plan proposed by the Commission vice-president Mr Tajani to develop a reindustrialisation policy for the EU, bringing industry's share of EU GDP back up to at least 20 % from the current 15,1 %, and suggests that he extend and strengthen his project, turning it into a ‘social compact for Europe for a new sustainable and competitive industry’. In its recent communication (1) the Commission set out a number of priorities, including:

—

deepening the mainstreaming of industrial competitiveness, paying particular attention to productivity in business services to increase industrial competitiveness and the competitiveness of the EU economy in general;

| — | maximising the potential of the internal market by developing the necessary infrastructure, offering a stable and simplified regulatory framework; and |
| --- | --- |

—

maximising the potential of the internal market by developing the necessary infrastructure, offering a stable and simplified regulatory framework; and

| — | acting to decisively implement the regional development instruments in combination with national and EU instruments in support of innovation, skills and entrepreneurship. |
| --- | --- |

—

acting to decisively implement the regional development instruments in combination with national and EU instruments in support of innovation, skills and entrepreneurship.

| 1.3 | The EESC would call on the EU to establish a European action plan on these issues, and would make the following specific recommendations:






  — | design policies to step up innovation and productivity so as to create a competitive advantage; |
| --- | --- | --- |

1.3

The EESC would call on the EU to establish a European action plan on these issues, and would make the following specific recommendations:

—

design policies to step up innovation and productivity so as to create a competitive advantage;

| — | identify new banking facilities to ease access to funding and speed up the necessary investments; |
| --- | --- |

—

identify new banking facilities to ease access to funding and speed up the necessary investments;

| — | promote measures to secure the participation of Europe's manufacturing industries at all stages of the value chain; |
| --- | --- |

—

promote measures to secure the participation of Europe's manufacturing industries at all stages of the value chain;

| — | ensure that reindustrialisation and reshoring are built into a sustainable European industrial policy that is focused on investment, technology, enterprise, education, innovation, research, energy prices, infrastructure, trade, etc.; |
| --- | --- |

—

ensure that reindustrialisation and reshoring are built into a sustainable European industrial policy that is focused on investment, technology, enterprise, education, innovation, research, energy prices, infrastructure, trade, etc.;

| — | provide for consistent, stable and secure regulation; |
| --- | --- |

—

provide for consistent, stable and secure regulation;

| — | secure the effective functioning of the internal market; |
| --- | --- |

—

secure the effective functioning of the internal market;

| — | ensure that environmental legislation is consistent with European industry's competitiveness and investment cycles; |
| --- | --- |

—

ensure that environmental legislation is consistent with European industry's competitiveness and investment cycles;

| — | upgrade the relevant infrastructure; |
| --- | --- |

—

upgrade the relevant infrastructure;

| — | provide funding for companies' needs; |
| --- | --- |

—

provide funding for companies' needs;

| — | support European energy policy; |
| --- | --- |

—

support European energy policy;

| — | secure skilled employment in the European market; and |
| --- | --- |

—

secure skilled employment in the European market; and

| — | tackle the lack of capacity and skills in the manufacturing industry; |
| --- | --- |

—

tackle the lack of capacity and skills in the manufacturing industry;

| — | establish a system for effectively managing human resources, promoting vocational activity and competences and innovativeness, and in particular making use of the creative potential of civil society bodies such as national and European associations of scientific and engineering personnel. |
| --- | --- |

—

establish a system for effectively managing human resources, promoting vocational activity and competences and innovativeness, and in particular making use of the creative potential of civil society bodies such as national and European associations of scientific and engineering personnel.

The EESC would call on the Member States to:

| — | build new industrial districts and facilities or revitalise existing ones that have reduced their activity as a result of the offshoring of manufacturing industries; |
| --- | --- |

—

build new industrial districts and facilities or revitalise existing ones that have reduced their activity as a result of the offshoring of manufacturing industries;

| — | update or renew production tools and processes to bring them in line with the new requirements of sustainable development policy; |
| --- | --- |

—

update or renew production tools and processes to bring them in line with the new requirements of sustainable development policy;

| — | establish a more balanced and stable taxation system to promote domestic consumption and attract foreign direct investment; and |
| --- | --- |

—

establish a more balanced and stable taxation system to promote domestic consumption and attract foreign direct investment; and

| — | organise special information centres focused on the offshoring and reshoring processes. |
| --- | --- |

—

organise special information centres focused on the offshoring and reshoring processes.

| 1.4 | The Committee deems it vital to achieve an integrated industrial policy with clearer objectives at EU, national, regional and local levels that is able to attract investment in all sectors of manufacturing (high and low-tech). These policies should be focused on the global value chain and include research, innovation and development activities. |
| --- | --- |

1.4

The Committee deems it vital to achieve an integrated industrial policy with clearer objectives at EU, national, regional and local levels that is able to attract investment in all sectors of manufacturing (high and low-tech). These policies should be focused on the global value chain and include research, innovation and development activities.

| 1.5 | The Committee is convinced that it is essential to set ambitious yet realistic targets for the reindustrialisation of Europe to be achieved by 2020. Against this backdrop, policies that promote the reshoring of production activities that were previously offshored could help to achieve the proposed objectives. |
| --- | --- |

1.5

The Committee is convinced that it is essential to set ambitious yet realistic targets for the reindustrialisation of Europe to be achieved by 2020. Against this backdrop, policies that promote the reshoring of production activities that were previously offshored could help to achieve the proposed objectives.

| 1.6 | The main reasons for reshoring from China to the West can be summarised as follows:






  — | the costs of offshore operations can be higher than forecast; |
| --- | --- | --- |

1.6

The main reasons for reshoring from China to the West can be summarised as follows:

—

the costs of offshore operations can be higher than forecast;

| — | the increased productivity, cost reductions and enhanced capacity that many domestic Western companies have achieved by pursuing continuous improvement programmes; |
| --- | --- |

—

the increased productivity, cost reductions and enhanced capacity that many domestic Western companies have achieved by pursuing continuous improvement programmes;

| — | a desire to localise production and design so as to enable better coordination at domestic level; |
| --- | --- |

—

a desire to localise production and design so as to enable better coordination at domestic level;

| — | the increasing complexity of products and the need to modify packaging to meet customer preferences; |
| --- | --- |

—

the increasing complexity of products and the need to modify packaging to meet customer preferences;

| — | the reduction in energy costs in the USA; |
| --- | --- |

—

the reduction in energy costs in the USA;

| — | stronger government growth initiatives in the USA; |
| --- | --- |

—

stronger government growth initiatives in the USA;

| — | the need to over-produce in order to fill containers; |
| --- | --- |

—

the need to over-produce in order to fill containers;

| — | products held up owing to uncertain delivery, inconsistent quality, customs procedures; |
| --- | --- |

—

products held up owing to uncertain delivery, inconsistent quality, customs procedures;

| — | increased transport costs owing to half-empty ships; |
| --- | --- |

—

increased transport costs owing to half-empty ships;

| — | the high level of inventory required to cope with goods in transit, cycles, safety stock, uncertain delivery times and quality controls; |
| --- | --- |

—

the high level of inventory required to cope with goods in transit, cycles, safety stock, uncertain delivery times and quality controls;

| — | an increase in exceptional costs; |
| --- | --- |

—

an increase in exceptional costs;

| — | a higher incidence of defects compared to local sources, additional inspection of materials and tolerance, more dissatisfied customers; |
| --- | --- |

—

a higher incidence of defects compared to local sources, additional inspection of materials and tolerance, more dissatisfied customers;

| — | the reduction in the cost gap between the host and home countries (labour and transport costs); |
| --- | --- |

—

the reduction in the cost gap between the host and home countries (labour and transport costs);

| — | operating elements such as: reduced operational flexibility, purchase orders, rigidity post-delivery, penalties for delayed orders; |
| --- | --- |

—

operating elements such as: reduced operational flexibility, purchase orders, rigidity post-delivery, penalties for delayed orders;

| — | orders that must be of a minimum quantity owing to the size of the container; |
| --- | --- |

—

orders that must be of a minimum quantity owing to the size of the container;

| — | reduced response to customer demand because of the physical separation between production and development centres; |
| --- | --- |

—

reduced response to customer demand because of the physical separation between production and development centres;

| — | production and delivery; impact on the product lifespan; |
| --- | --- |

—

production and delivery; impact on the product lifespan;

| — | an increase in the costs of coordinating the supply chain; |
| --- | --- |

—

an increase in the costs of coordinating the supply chain;

| — | quality problems (poor quality of products); |
| --- | --- |

—

quality problems (poor quality of products);

| — | availability of skills (shortage of well-trained technicians and skilled workers in the host country); |
| --- | --- |

—

availability of skills (shortage of well-trained technicians and skilled workers in the host country);

| — | high unemployment levels in the home country; and |
| --- | --- |

—

high unemployment levels in the home country; and

| — | exchange rate risks. |
| --- | --- |

—

exchange rate risks.

| 1.7 | The manufacturing industries require reliable and flexible supplies in order to compete in today's markets. The reshoring of production is one of the paths that can be taken by companies to meet these needs. In the Committee's view, there should be a focus on the following key policy areas to support manufacturing industries that decide to reshore and/or expand their business in Europe: creating the right environment for companies that invest, professional skills, competitive energy costs, access to funding and market access. |
| --- | --- |

1.7

The manufacturing industries require reliable and flexible supplies in order to compete in today's markets. The reshoring of production is one of the paths that can be taken by companies to meet these needs. In the Committee's view, there should be a focus on the following key policy areas to support manufacturing industries that decide to reshore and/or expand their business in Europe: creating the right environment for companies that invest, professional skills, competitive energy costs, access to funding and market access.

| 1.8 | According to the Commission, ‘EU retail electricity prices for industry grew on average by 3,5 % a year and gas prices 1 % between 2008 and 2012. As a result, EU industrial electricity prices are estimated to be twice higher than in the USA and Russia and 20 % higher than in China according to the International Energy Agency data (2). The price gap is greater in gas: in the EU, gas is three to four times more expensive for EU industry than for US, Russian and Indian competitors, 12 % more expensive than in China but cheaper than in Japan. Nevertheless, the prices effectively paid by industrial users may vary from one Member State to another.’ (3) |
| --- | --- |

1.8

According to the Commission, ‘EU retail electricity prices for industry grew on average by 3,5 % a year and gas prices 1 % between 2008 and 2012. As a result, EU industrial electricity prices are estimated to be twice higher than in the USA and Russia and 20 % higher than in China according to the International Energy Agency data (2). The price gap is greater in gas: in the EU, gas is three to four times more expensive for EU industry than for US, Russian and Indian competitors, 12 % more expensive than in China but cheaper than in Japan. Nevertheless, the prices effectively paid by industrial users may vary from one Member State to another.’ (3)

| 1.9 | The EESC has looked carefully at the issue of energy-intensive industries in Europe (4) and has proposed a series of measures and recommendations to enable them to continue producing in Europe. On this occasion, too, it reiterates its call to the European institutions to put in place a common energy policy and to tackle the problem of competitiveness of capital and energy as factors of production. It calls on the social partners to strengthen their cooperation in a development pact that takes into account the characteristics and safeguarding of the European social model, which guarantees the achievement of the Lisbon Treaty objectives concerning a social market economy. |
| --- | --- |

1.9

The EESC has looked carefully at the issue of energy-intensive industries in Europe (4) and has proposed a series of measures and recommendations to enable them to continue producing in Europe. On this occasion, too, it reiterates its call to the European institutions to put in place a common energy policy and to tackle the problem of competitiveness of capital and energy as factors of production. It calls on the social partners to strengthen their cooperation in a development pact that takes into account the characteristics and safeguarding of the European social model, which guarantees the achievement of the Lisbon Treaty objectives concerning a social market economy.

| 1.10 | Consistency between policies has significant implications. The first is that future growth lies in the shift to a low-carbon economy, which in turn calls for consistency between research, legislation and support programmes. The second concerns socially sustainable development and therefore the relationship between competitiveness and employment — i.e. skilled, inclusive jobs for all that can in turn generate good-quality growth and thus added value in terms of competitiveness. |
| --- | --- |

1.10

Consistency between policies has significant implications. The first is that future growth lies in the shift to a low-carbon economy, which in turn calls for consistency between research, legislation and support programmes. The second concerns socially sustainable development and therefore the relationship between competitiveness and employment — i.e. skilled, inclusive jobs for all that can in turn generate good-quality growth and thus added value in terms of competitiveness.

| 1.11 | The Committee believes that a better relationship between companies and banks, focused on the real economy, could generate fruitful synergies and harness the competitive advantages connected to their presence on foreign markets. |
| --- | --- |

1.11

The Committee believes that a better relationship between companies and banks, focused on the real economy, could generate fruitful synergies and harness the competitive advantages connected to their presence on foreign markets.

| 1.12 | European companies should focus primarily on innovation and on the quality, reliability, performance and functionality of their products; they must consider their environmental footprint and aspire to corporate social responsibility in their production processes. However, for companies to remain competitive, it is also essential to keep cost factors under control — especially wage and energy costs — and to put in place requisite measure to that end. |
| --- | --- |

1.12

European companies should focus primarily on innovation and on the quality, reliability, performance and functionality of their products; they must consider their environmental footprint and aspire to corporate social responsibility in their production processes. However, for companies to remain competitive, it is also essential to keep cost factors under control — especially wage and energy costs — and to put in place requisite measure to that end.

| 1.13 | The transition of our productive, infrastructure and economic systems towards sustainability and demographic change, the training of the new generations and the adaptation of Europe's workforce to the international division of labour all require massive investment if they are to be achieved in a consistent and coordinated manner at European level. |
| --- | --- |

1.13

The transition of our productive, infrastructure and economic systems towards sustainability and demographic change, the training of the new generations and the adaptation of Europe's workforce to the international division of labour all require massive investment if they are to be achieved in a consistent and coordinated manner at European level.

| 1.14 | Retaining a wide and diverse manufacturing base in Europe is important for preserving skills that once lost will be difficult to redevelop. In a broader context, specific manufacturing skills in particular industries could provide important input for the development of new products. |
| --- | --- |

1.14

Retaining a wide and diverse manufacturing base in Europe is important for preserving skills that once lost will be difficult to redevelop. In a broader context, specific manufacturing skills in particular industries could provide important input for the development of new products.

| 1.15 | Europe's capabilities in research and innovation should be strengthened and maintained to ensure sustainable, stable and lasting growth, and to this end, smart, efficient and effective rules are needed to foster the optimum conditions, drive our technological leadership, create quality jobs in research, innovation and manufacturing, and promote security and sustainability (5). |
| --- | --- |

1.15

Europe's capabilities in research and innovation should be strengthened and maintained to ensure sustainable, stable and lasting growth, and to this end, smart, efficient and effective rules are needed to foster the optimum conditions, drive our technological leadership, create quality jobs in research, innovation and manufacturing, and promote security and sustainability (5).

Companies considering offshoring need to know what they are looking for and how it can be achieved within the EU. They need access to reliable data, information and advice in order to foresee the advantages and disadvantages of such a move, including the real costs. The representatives of the EU and the Member States in the major countries should step up their assistance, as should local and regional authorities. The aim of all of this is to ascertain whether the same objective could be achieved within the EU.

| 1.16 | The main reasons prompting reshoring are set out in point 1.6. |
| --- | --- |

1.16

The main reasons prompting reshoring are set out in point 1.6.

| 1.17 | The Committee is glad to see that the European Commission is including the reshoring process on the industrial agenda as a catalyst for industrial activity and job creation, and feels that it should make manufacturing the driving force of Europe's future. The agreement recently concluded with Eurofound is a modest first step in the right direction. |
| --- | --- |

1.17

The Committee is glad to see that the European Commission is including the reshoring process on the industrial agenda as a catalyst for industrial activity and job creation, and feels that it should make manufacturing the driving force of Europe's future. The agreement recently concluded with Eurofound is a modest first step in the right direction.

2.   Introduction

| 2.1 | ‘We cannot continue to let our industry leave Europe. Our figures are crystal clear: European industry can deliver growth and can create employment. Today we tabled the conditions for the sustainable industry of the future in Europe, to develop the investments needed in new technologies and to rebuild a climate of confidence and entrepreneurship. By working together and restoring confidence, we can bring back the industry to Europe (6).’ |
| --- | --- |

2.1

‘We cannot continue to let our industry leave Europe. Our figures are crystal clear: European industry can deliver growth and can create employment. Today we tabled the conditions for the sustainable industry of the future in Europe, to develop the investments needed in new technologies and to rebuild a climate of confidence and entrepreneurship. By working together and restoring confidence, we can bring back the industry to Europe (6).’

| 2.2 | In recent years we have seen progressive offshoring of manufacturing from Europe to third countries and progressive deindustrialisation leading to a decline in its share of European GDP, which has fallen from 20 % to 15 % in just a few short years. In the EU 3,5 million jobs have been lost in the manufacturing industry since 2008. |
| --- | --- |

2.2

In recent years we have seen progressive offshoring of manufacturing from Europe to third countries and progressive deindustrialisation leading to a decline in its share of European GDP, which has fallen from 20 % to 15 % in just a few short years. In the EU 3,5 million jobs have been lost in the manufacturing industry since 2008.

| 2.3 | Offshoring — or the decision to locate production processes abroad — has been, at least since the 1970s, one of the most widespread strategies of manufacturing companies based in the major Western industrialised countries. Often, this managerial decision has been accompanied by the outsourcing of manufacturing, leading to the creation of such economic phenomena as the global factory, international supply chains and global commodity chains, the latter subsequently known as global value chains (7). |
| --- | --- |

2.3

Offshoring — or the decision to locate production processes abroad — has been, at least since the 1970s, one of the most widespread strategies of manufacturing companies based in the major Western industrialised countries. Often, this managerial decision has been accompanied by the outsourcing of manufacturing, leading to the creation of such economic phenomena as the global factory, international supply chains and global commodity chains, the latter subsequently known as global value chains (7).

| 2.4 | The process of ‘shifting wealth’ from the OECD countries to large, densely-populated medium-income countries has been led to a large extent by China and India, but other countries, including Brazil and South Africa are also playing their part. Around the world, the top 20 manufacturers, including the United States and EU countries (Germany, Italy, France, the United Kingdom, Spain and the Netherlands), have seen their industrial manufacturing fall significantly since 1990. In the US, private employment in manufacturing has plummeted from 21 % to less than 11 % since 1987 (8). |
| --- | --- |

2.4

The process of ‘shifting wealth’ from the OECD countries to large, densely-populated medium-income countries has been led to a large extent by China and India, but other countries, including Brazil and South Africa are also playing their part. Around the world, the top 20 manufacturers, including the United States and EU countries (Germany, Italy, France, the United Kingdom, Spain and the Netherlands), have seen their industrial manufacturing fall significantly since 1990. In the US, private employment in manufacturing has plummeted from 21 % to less than 11 % since 1987 (8).

| 2.5 | The euro area's anti-crisis policies must be reviewed as they are in danger of further complicating the situation. ‘If the root cause of the crisis lies in the growing (...) discrepancies between the Eurozone economies, we must correct our policy of pursuing austerity (...) This policy by itself cannot resolve the problem of Europe’s lack of industrial competitiveness. On the contrary, it risks aggravating the situation’ (9). |
| --- | --- |

2.5

The euro area's anti-crisis policies must be reviewed as they are in danger of further complicating the situation. ‘If the root cause of the crisis lies in the growing (...) discrepancies between the Eurozone economies, we must correct our policy of pursuing austerity (...) This policy by itself cannot resolve the problem of Europe’s lack of industrial competitiveness. On the contrary, it risks aggravating the situation’ (9).

| 2.6 | The lasting nature of the economic and sovereign debt crisis in some countries with a strong manufacturing sector has led to further shrinkage of secondary industrial activities. Soaring energy costs, particularly for high energy-use sectors (such as steel production), have discouraged investment and in some cases prompted offshoring. |
| --- | --- |

2.6

The lasting nature of the economic and sovereign debt crisis in some countries with a strong manufacturing sector has led to further shrinkage of secondary industrial activities. Soaring energy costs, particularly for high energy-use sectors (such as steel production), have discouraged investment and in some cases prompted offshoring.

| 2.7 | The EU should focus on the use of key enabling technologies (KETs) and automation. Other factors such as clean advanced production, investment in smart grids, as well as energy efficiency and sustainable mobility have an important role to play in the future of European industry, for instance regarding the possibility of creating new jobs in the short term. |
| --- | --- |

2.7

The EU should focus on the use of key enabling technologies (KETs) and automation. Other factors such as clean advanced production, investment in smart grids, as well as energy efficiency and sustainable mobility have an important role to play in the future of European industry, for instance regarding the possibility of creating new jobs in the short term.

3.   European industrial policy and reindustrialisation

| 3.1 | The EU's current industrial policy aims to improve the existing legislative framework and increase the competitiveness of businesses, thereby ensuring that they can maintain their role as a driver for sustainable growth and employment in Europe. The legal basis for the EU's industrial policy is provided by Article 173 of the Treaty on the Functioning of the European Union (TFEU). |
| --- | --- |

3.1

The EU's current industrial policy aims to improve the existing legislative framework and increase the competitiveness of businesses, thereby ensuring that they can maintain their role as a driver for sustainable growth and employment in Europe. The legal basis for the EU's industrial policy is provided by Article 173 of the Treaty on the Functioning of the European Union (TFEU).

Reindustrialisation refers to a series of initiatives and programmes to support production and economic development in regions affected by industrial, socio-economic and environmental crises. Europe needs its real economy now more than ever to underpin the recovery of economic growth and jobs by means of a new phase of reindustrialisation. Industry has a major stimulus effect. It is estimated that the creation of 100 jobs in this sector generates the creation of another 100 jobs in other areas of the economy (10). In its communication entitled For a European industrial renaissance adopted on 22 January 2014, the European Commission urges Member States to recognise the central importance of industry for creating jobs and growth, and of mainstreaming industry-related competitiveness concerns across all policy areas (11).

| 3.2 | In 2012 the Commission launched a reindustrialisation strategy for Europe, with the aim of increasing the manufacturing sector's share of the European economy from 15 % to 20 % of GDP by 2020. This initiative is based on four pillars: greater investment in innovation, training geared closely to the needs of business, better access to finance and better access to markets (12). |
| --- | --- |

3.2

In 2012 the Commission launched a reindustrialisation strategy for Europe, with the aim of increasing the manufacturing sector's share of the European economy from 15 % to 20 % of GDP by 2020. This initiative is based on four pillars: greater investment in innovation, training geared closely to the needs of business, better access to finance and better access to markets (12).

| 3.3 | The EESC believes that the EU must develop a unified strategy, a European industrial policy that identifies the key sectors in order to strengthen the manufacturing chain as a whole, whether manufacturing of end or semi-finished products. The EESC has drawn up an opinion (13) on the Commission communication on the action plan for the steel industry (14), identifying specific, urgent measures to support one of the cornerstones of the manufacturing industries: high-quality basic products that constitute genuine added value for downstream industries, particularly the mechanical engineering industry, electronics, engineering, precision engineering and the automotive industry, construction and shipbuilding, to mention only the largest. |
| --- | --- |

3.3

The EESC believes that the EU must develop a unified strategy, a European industrial policy that identifies the key sectors in order to strengthen the manufacturing chain as a whole, whether manufacturing of end or semi-finished products. The EESC has drawn up an opinion (13) on the Commission communication on the action plan for the steel industry (14), identifying specific, urgent measures to support one of the cornerstones of the manufacturing industries: high-quality basic products that constitute genuine added value for downstream industries, particularly the mechanical engineering industry, electronics, engineering, precision engineering and the automotive industry, construction and shipbuilding, to mention only the largest.

| 3.4 | In many opinions on industrial change, the EESC has proposed solutions and identified pathways for restoring European industry to its rightful place. The EESC firmly believes that revitalising industry is crucial to economic development, growth and prosperity, in other words the foundations of the European social model. |
| --- | --- |

3.4

In many opinions on industrial change, the EESC has proposed solutions and identified pathways for restoring European industry to its rightful place. The EESC firmly believes that revitalising industry is crucial to economic development, growth and prosperity, in other words the foundations of the European social model.

| 3.5 | The manufacturing industry is still the main driver for economic growth: in regions where manufacturing has increased its relative share, GDP has risen more. This is explained by the fact that product and process innovation in the manufacturing sector generates increased productivity in other sectors too: service digitalisation would never have happened had the computer not been manufactured. It is precisely in the manufacturing sector that the research and development underpinning innovation take shape (15)
   (16). |
| --- | --- |

3.5

The manufacturing industry is still the main driver for economic growth: in regions where manufacturing has increased its relative share, GDP has risen more. This is explained by the fact that product and process innovation in the manufacturing sector generates increased productivity in other sectors too: service digitalisation would never have happened had the computer not been manufactured. It is precisely in the manufacturing sector that the research and development underpinning innovation take shape (15)
   (16).

| 3.6 | Available EU funds have been increased. Funding for the research, development and innovation programme Horizon 2020 has been increased from EUR 54 billion to EUR 80 billion. At least EUR 100 billion in ESI funding (European Structural and Investment Funds) is available to the Member States for funding investment in innovation, in line with the priorities of industrial policy. COSME, the EU programme for the competitiveness of enterprises and SMEs for 2014-2020, has a budget of EUR 2,3 billion. SPIRE, Sustainable Process Industry through Resource and Energy Efficiency, is the new public-private partnership (PPP) contract signed in December 2013 under the auspices of Horizon 2020 and with total EU funding of EUR 900 million for the next seven years (17). |
| --- | --- |

3.6

Available EU funds have been increased. Funding for the research, development and innovation programme Horizon 2020 has been increased from EUR 54 billion to EUR 80 billion. At least EUR 100 billion in ESI funding (European Structural and Investment Funds) is available to the Member States for funding investment in innovation, in line with the priorities of industrial policy. COSME, the EU programme for the competitiveness of enterprises and SMEs for 2014-2020, has a budget of EUR 2,3 billion. SPIRE, Sustainable Process Industry through Resource and Energy Efficiency, is the new public-private partnership (PPP) contract signed in December 2013 under the auspices of Horizon 2020 and with total EU funding of EUR 900 million for the next seven years (17).

| 3.7 | ‘Nanotechnology, micro- and nanoelectronics, including semiconductors, advanced materials, biotechnology and photonics, as well as robotics and 3D printing are all growing spectacularly in the EU. Mastering these technologies means managing the shift to a low-carbon knowledge-based economy (18).’ |
| --- | --- |

3.7

‘Nanotechnology, micro- and nanoelectronics, including semiconductors, advanced materials, biotechnology and photonics, as well as robotics and 3D printing are all growing spectacularly in the EU. Mastering these technologies means managing the shift to a low-carbon knowledge-based economy (18).’

| 3.8 | The EP draft report on reindustrialising Europe to promote competitiveness and sustainability (19) stresses that the industrial future ‘lies in a Renaissance of Industry for a Sustainable Europe (RISE) strategy that pursues technological, business and social innovation towards an industrial revolution including a low-carbon modernisation offensive’. |
| --- | --- |

3.8

The EP draft report on reindustrialising Europe to promote competitiveness and sustainability (19) stresses that the industrial future ‘lies in a Renaissance of Industry for a Sustainable Europe (RISE) strategy that pursues technological, business and social innovation towards an industrial revolution including a low-carbon modernisation offensive’.

| 3.9 | Our shared future is that of Europe as an modern industrial region, but that calls for a genuine modernisation drive on at least five levels: strengthening innovation in the area of technology and production with investment in research and competitiveness; reducing the delays, opacity and cumbersome nature of public administrations; making life easier for SMEs; boosting IT infrastructure and appropriate channels (Connecting Europe Facility, Ten-T, Ten-E and the Digital Agenda); and securing movement of capital that is accessible, leverages and attracts private funds and also pursues medium-term investment goals. |
| --- | --- |

3.9

Our shared future is that of Europe as an modern industrial region, but that calls for a genuine modernisation drive on at least five levels: strengthening innovation in the area of technology and production with investment in research and competitiveness; reducing the delays, opacity and cumbersome nature of public administrations; making life easier for SMEs; boosting IT infrastructure and appropriate channels (Connecting Europe Facility, Ten-T, Ten-E and the Digital Agenda); and securing movement of capital that is accessible, leverages and attracts private funds and also pursues medium-term investment goals.

4.   Reshoring

| 4.1 | Reshoring is a voluntary corporate strategy regarding the partial or total relocation of previously offshored (in-sourced or out-sourced) production in the home country (backshoring) or into the region of the home country (20). Offshoring refers to the decision by a company to move all or part of its production from a European country to a foreign country. |
| --- | --- |

4.1

Reshoring is a voluntary corporate strategy regarding the partial or total relocation of previously offshored (in-sourced or out-sourced) production in the home country (backshoring) or into the region of the home country (20). Offshoring refers to the decision by a company to move all or part of its production from a European country to a foreign country.

| 4.2 | In recent years, a huge number of industries decided to offshore part of their production chain to countries outside Europe; initially attracted by the emerging markets, and later for the most part persuaded by lower labour costs and proximity to resources. This tendency has led to the present situation where the European market, with its 500 million inhabitants, is a major consumer of non-European industrial products. What factors might influence the reshoring of these companies? At national and EU levels, the reshoring of parts of these companies could offer benefits that should not be underestimated, such as job creation, stemming the loss of know-how, and strengthening the ‘made in’ label. Given the numerous dynamics and key factors that have a bearing on the decision to offshore and/or reshore, a detailed analysis should be carried out of the advantages and disadvantages involved at both national and company levels. |
| --- | --- |

4.2

In recent years, a huge number of industries decided to offshore part of their production chain to countries outside Europe; initially attracted by the emerging markets, and later for the most part persuaded by lower labour costs and proximity to resources. This tendency has led to the present situation where the European market, with its 500 million inhabitants, is a major consumer of non-European industrial products. What factors might influence the reshoring of these companies? At national and EU levels, the reshoring of parts of these companies could offer benefits that should not be underestimated, such as job creation, stemming the loss of know-how, and strengthening the ‘made in’ label. Given the numerous dynamics and key factors that have a bearing on the decision to offshore and/or reshore, a detailed analysis should be carried out of the advantages and disadvantages involved at both national and company levels.

| 4.3 | The process of offshoring from Europe to Asia is continuing. During the period 2007-2009, around 40 % of companies employing more than 50 staff moved their production to some extent, particularly in high-energy-use sectors. On the other hand, a certain number of countries in central and eastern Europe have retained a considerable percentage of their manufacturing industries. |
| --- | --- |

4.3

The process of offshoring from Europe to Asia is continuing. During the period 2007-2009, around 40 % of companies employing more than 50 staff moved their production to some extent, particularly in high-energy-use sectors. On the other hand, a certain number of countries in central and eastern Europe have retained a considerable percentage of their manufacturing industries.

| 4.4 | The ongoing crisis has meant that European businesses have been taking a highly cautious approach and not planning further investments or changing suppliers. |
| --- | --- |

4.4

The ongoing crisis has meant that European businesses have been taking a highly cautious approach and not planning further investments or changing suppliers.

| 4.5 | A range of factors in the EU are adversely affecting the reshoring process, including:






  — | a very strong euro; |
| --- | --- | --- |

4.5

A range of factors in the EU are adversely affecting the reshoring process, including:

—

a very strong euro;

| — | low productivity; |
| --- | --- |

—

low productivity;

| — | social costs that are higher than in other countries with much lower labour costs and no social protection; |
| --- | --- |

—

social costs that are higher than in other countries with much lower labour costs and no social protection;

| — | rising energy costs; and |
| --- | --- |

—

rising energy costs; and

| — | a lack of positive solutions. |
| --- | --- |

—

a lack of positive solutions.

One possibility would be to devise specific initiatives for reshoring to the most disadvantaged areas.

| 4.6 | The reshoring trend in the United States |
| --- | --- |

4.6

| 4.6.1 | US businesses are gradually reshoring manufacturing. The change reflects China's loss of the competitive advantage as a low-cost manufacturing centre after years of rapid wage increases and a variety of other factors. One of the factors that has favoured reshoring has been the reduction in energy costs in the USA. |
| --- | --- |

4.6.1

US businesses are gradually reshoring manufacturing. The change reflects China's loss of the competitive advantage as a low-cost manufacturing centre after years of rapid wage increases and a variety of other factors. One of the factors that has favoured reshoring has been the reduction in energy costs in the USA.

| 4.6.2 | The recent trend was prompted by a rise in the cost of labour and energy prices in China, the impact on innovation, intellectual property theft and greater use of total cost analysis, which takes into account and calculates all the costs and risks. Using total cost of ownership (TCO), business analyst companies help to genuinely identify all the costs connected with offshoring operations. |
| --- | --- |

4.6.2

The recent trend was prompted by a rise in the cost of labour and energy prices in China, the impact on innovation, intellectual property theft and greater use of total cost analysis, which takes into account and calculates all the costs and risks. Using total cost of ownership (TCO), business analyst companies help to genuinely identify all the costs connected with offshoring operations.

| 4.6.3 | The industrial sectors involved in this reshoring are manufacturers of: tools and motor vehicles, primary metals, machinery, metal products, robotics, medical and scientific instruments, health products, computers and electronics, chemical products, plastics, packaging, etc. |
| --- | --- |

4.6.3

The industrial sectors involved in this reshoring are manufacturers of: tools and motor vehicles, primary metals, machinery, metal products, robotics, medical and scientific instruments, health products, computers and electronics, chemical products, plastics, packaging, etc.

| 4.6.4 | Reshoring is a factor in all manufacturing companies' decisions. As companies start to carry out more comprehensive total cost analysis, they are discovering that the rise in the cost of labour along with the hidden costs of offshoring have often outweighed the competitive advantage. |
| --- | --- |

4.6.4

Reshoring is a factor in all manufacturing companies' decisions. As companies start to carry out more comprehensive total cost analysis, they are discovering that the rise in the cost of labour along with the hidden costs of offshoring have often outweighed the competitive advantage.

| 4.6.5 | There is a movement involving the United States government and various associations in creating the new Made in America, Again label, aiming to persuade customers to buy American products and equipment. Reshore now is another initiative at national level aimed at reshoring companies to US soil (21). |
| --- | --- |

4.6.5

There is a movement involving the United States government and various associations in creating the new Made in America, Again label, aiming to persuade customers to buy American products and equipment. Reshore now is another initiative at national level aimed at reshoring companies to US soil (21).

| 4.6.6 | Reshored companies usually achieve 50 % stockpile reductions; in some cases with reduction factors of 3 and 6. The reasons for stockpile reduction are: better payment conditions, smaller quantities of stock and shorter and more reliable delivery times. |
| --- | --- |

4.6.6

Reshored companies usually achieve 50 % stockpile reductions; in some cases with reduction factors of 3 and 6. The reasons for stockpile reduction are: better payment conditions, smaller quantities of stock and shorter and more reliable delivery times.

| 4.6.7 | A survey conducted by the Massachusetts Institute of Technology asked companies to identify government action that could make a difference. The top five measures, in order of importance, that the US government could take to encourage reshoring for US companies were:






  1. | corporate tax reduction (68,3 %); |
| --- | --- | --- |

4.6.7

A survey conducted by the Massachusetts Institute of Technology asked companies to identify government action that could make a difference. The top five measures, in order of importance, that the US government could take to encourage reshoring for US companies were:

1.

corporate tax reduction (68,3 %);

| 2. | tax credits (65,9 %); |
| --- | --- |

2.

tax credits (65,9 %);

| 3. | R&D incentives (60,0 %); |
| --- | --- |

3.

R&D incentives (60,0 %);

| 4. | provide better education/training for required skills (43,8 %); and |
| --- | --- |

4.

provide better education/training for required skills (43,8 %); and

| 5. | provide better infrastructure (38,0 %). |
| --- | --- |

5.

provide better infrastructure (38,0 %).

| 4.6.8 | According to the Boston Consulting Group, the top three factors driving the decision to reshore are: (i) cost of labour, (ii) proximity to customers and (iii) product quality. Other factors include access to skilled labour, transport costs, delivery times and ease of doing business. In addition, indicators show that the United States is becoming the low-cost manufacturer of the developed world, making it seem increasingly attractive. |
| --- | --- |

4.6.8

According to the Boston Consulting Group, the top three factors driving the decision to reshore are: (i) cost of labour, (ii) proximity to customers and (iii) product quality. Other factors include access to skilled labour, transport costs, delivery times and ease of doing business. In addition, indicators show that the United States is becoming the low-cost manufacturer of the developed world, making it seem increasingly attractive.

| 4.7 | What are the results of studies and surveys on reshoring in the EU? There are very few known surveys or studies on European reshoring. A study of offshoring by German firms found that one-sixth to one-quarter of them had reshored within four years. French IT firms that offshored IT work complained of unanticipated cost, poor quality and logistics problems. A study of UK manufacturers that offshored production in 2008-2009 found, meanwhile, that 14 % of them had already reshored (22). In its Communication entitled An integrated industrial policy for the globalisation era putting competitiveness and sustainability at centre stage (COM(2010) 614), the European Commission mentions the idea of reshoring although it does not explicitly use the word. |
| --- | --- |

4.7

What are the results of studies and surveys on reshoring in the EU? There are very few known surveys or studies on European reshoring. A study of offshoring by German firms found that one-sixth to one-quarter of them had reshored within four years. French IT firms that offshored IT work complained of unanticipated cost, poor quality and logistics problems. A study of UK manufacturers that offshored production in 2008-2009 found, meanwhile, that 14 % of them had already reshored (22). In its Communication entitled An integrated industrial policy for the globalisation era putting competitiveness and sustainability at centre stage (COM(2010) 614), the European Commission mentions the idea of reshoring although it does not explicitly use the word.

5.   The outcome of the public hearings in Brussels and Bergamo

| 5.1 | At the public hearings organised by the EESC in Brussels and Bergamo, participants related experiences of offshoring and reshoring and set out possible future scenarios in various sectors of the manufacturing industry in the context of the reindustrialisation process in Europe. |
| --- | --- |

5.1

At the public hearings organised by the EESC in Brussels and Bergamo, participants related experiences of offshoring and reshoring and set out possible future scenarios in various sectors of the manufacturing industry in the context of the reindustrialisation process in Europe.

| 5.2 | The global economy is driven mainly by market forces, which have a significant bearing on the decision of a company to offshore and/or reshore its manufacturing. |
| --- | --- |

5.2

The global economy is driven mainly by market forces, which have a significant bearing on the decision of a company to offshore and/or reshore its manufacturing.

| 5.3 | The UK study shows that offshoring to countries with low labour costs is not always the key to success. The structure of the value chain and of the supply chain constitutes an integral part of this success. Even though cost remains the primary issue, that cost is not determined by labour alone, but also by the cost of logistics and management. The study confirmed that the three main reasons that drove companies to reshore were cost savings that were lower than expected (50 %), problems with quality (43 %) and market proximity (36 %). The other reasons included capacity to meet shorter delivery times, the profile and stability of suppliers and the protection of intellectual property. |
| --- | --- |

5.3

The UK study shows that offshoring to countries with low labour costs is not always the key to success. The structure of the value chain and of the supply chain constitutes an integral part of this success. Even though cost remains the primary issue, that cost is not determined by labour alone, but also by the cost of logistics and management. The study confirmed that the three main reasons that drove companies to reshore were cost savings that were lower than expected (50 %), problems with quality (43 %) and market proximity (36 %). The other reasons included capacity to meet shorter delivery times, the profile and stability of suppliers and the protection of intellectual property.

| 5.4 | Access to markets and customers is and will remain one of the key factors in this decision. In some sectors, there are geographical barriers to serving foreign markets, including local requirements, that necessitate the adoption of a strategy of offshoring production and being present in the local market. |
| --- | --- |

5.4

Access to markets and customers is and will remain one of the key factors in this decision. In some sectors, there are geographical barriers to serving foreign markets, including local requirements, that necessitate the adoption of a strategy of offshoring production and being present in the local market.

| 5.5 | Access to infrastructure, energy and transport is of fundamental importance to companies. There are now countries with modern and accessible infrastructure that are able to compete with countries in Europe. Future investment in this sector should be given serious consideration. |
| --- | --- |

5.5

Access to infrastructure, energy and transport is of fundamental importance to companies. There are now countries with modern and accessible infrastructure that are able to compete with countries in Europe. Future investment in this sector should be given serious consideration.

| 5.6 | The very important role played by vocational training and education here should not be underestimated. Developing countries have invested and are continuing to invest massively in educating their young people, thus creating competition with our young people. The lack of opportunities for skilled employment in Europe meanwhile is causing our young people to emigrate. The EESC is currently working on an opinion on the relationship between education, vocational training and business. |
| --- | --- |

5.6

The very important role played by vocational training and education here should not be underestimated. Developing countries have invested and are continuing to invest massively in educating their young people, thus creating competition with our young people. The lack of opportunities for skilled employment in Europe meanwhile is causing our young people to emigrate. The EESC is currently working on an opinion on the relationship between education, vocational training and business.

| 5.7 | On 7 November 2013, ETUC (the European Trade Union Confederation) adopted an Investment plan for good jobs and a sustainable future, with the aim of restoring growth in Europe, creating up to 11 million jobs and encouraging multinational companies to locate their operations in Europe, and build on the strong demand. |
| --- | --- |

5.7

On 7 November 2013, ETUC (the European Trade Union Confederation) adopted an Investment plan for good jobs and a sustainable future, with the aim of restoring growth in Europe, creating up to 11 million jobs and encouraging multinational companies to locate their operations in Europe, and build on the strong demand.

| 5.8 | SMEs have been indirectly affected by the offshoring of major industries, seeing a reduction in orders for the production of parts. The automotive sector, for instance, shifted its production to emerging countries primarily because of the growing demand in those markets. The automotive industry envisages that about 70  000 to 85  000 jobs will be lost. |
| --- | --- |

5.8

SMEs have been indirectly affected by the offshoring of major industries, seeing a reduction in orders for the production of parts. The automotive sector, for instance, shifted its production to emerging countries primarily because of the growing demand in those markets. The automotive industry envisages that about 70  000 to 85  000 jobs will be lost.

| 5.9 | The metal-based products sector foresees strong demand, a good two-thirds of which will come from emerging countries by 2025. For this reason, the sector must build a network of global contacts and secure its presence in the market. The European metal and engineering industries are offshoring to developing countries, not only for cost reasons, but to meet demand through an ‘in country for country’ strategy to guarantee the supply of products and services to local manufacturers and consumers. |
| --- | --- |

5.9

The metal-based products sector foresees strong demand, a good two-thirds of which will come from emerging countries by 2025. For this reason, the sector must build a network of global contacts and secure its presence in the market. The European metal and engineering industries are offshoring to developing countries, not only for cost reasons, but to meet demand through an ‘in country for country’ strategy to guarantee the supply of products and services to local manufacturers and consumers.

| 5.10 | At the public hearing in Bergamo, the following conclusions were drawn (23):






  — | offshoring is not dead; |
| --- | --- | --- |

5.10

At the public hearing in Bergamo, the following conclusions were drawn (23):

—

offshoring is not dead;

| — | back- and near-shoring are two possibilities, but not the only ones; |
| --- | --- |

—

back- and near-shoring are two possibilities, but not the only ones;

| — | the jobs repatriated are not always the same ones that were outsourced (different numbers, different job profiles); |
| --- | --- |

—

the jobs repatriated are not always the same ones that were outsourced (different numbers, different job profiles);

| — | entrepreneurs must consider the total cost of sourcing rather than only labour costs (investments in working capital; fixing faulty parts); |
| --- | --- |

—

entrepreneurs must consider the total cost of sourcing rather than only labour costs (investments in working capital; fixing faulty parts);

| — | trade unions should consider unit labour costs instead of hourly labour costs (product/process innovation, organisation of work); and |
| --- | --- |

—

trade unions should consider unit labour costs instead of hourly labour costs (product/process innovation, organisation of work); and

| — | policymakers should consider all the factors that have a bearing on doing business. |
| --- | --- |

—

policymakers should consider all the factors that have a bearing on doing business.

Brussels, 29 April 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

---

(1)  COM(2014) 14 final.

1

(2)  These prices are not corrected by quality differences, as EU electricity supply is more reliable with fewer cuts than in these countries.

2

(3)  COM(2014) 14 final.

3

(4)  ces1857-2011_ac_en.do.

4

(5)  INT/451: Research and development: in support of competitiveness — OJ C 277, 17.11.2009, p.1.

5

(6)  Industrial revolution brings industry back to Europe10.12 2012. Commissioner Tajani.

6

Industrial revolution brings industry back to Europe

(7)  Report by Centro Europa Ricerche on internationalisation, No 3/2013 p. 57.

7

Centro Europa Ricerche

(8)  The Mechanics Behind Manufacturing Job Losses, William T. Gavin in Economic Synopses, 2013, No 20.

8

Economic Synopses

(9)  Public lecture. London School of Economics. 3 December 2013.

9

(10)  http://www.labanconota.it/finanza/globalizzazione-delocalizzazione-reindustrializzazione.html.

10

(11)  http://ec.europa.eu/enterprise/initiatives/mission-growth/index_en.html.

11

(12)  A stronger European industry for growth and economic recovery. Industrial policy communication update — COM(2012) 582 final of 10 October 2012.

12

A stronger European industry for growth and economic recovery. Industrial policy communication update

(13)  In the process of being adopted. CCMI 117 Action plan for the European steel industry.

13

Action plan for the European steel industry

(14)  COM(2013) 407 final.

14

(15)  Is industry a driver for wealth? The affirmative response of the European regions. (Industrial scenarios. Confindustria research centre, June 2011).

15

Is industry a driver for wealth? The affirmative response of the European regions

(16)  Chapter 4, A ‘manufacturing imperative’ in the EU: The role of industrial policy. European Competitiveness Report 2013, Towards knowledge driven reindustrialisation.

16

Towards knowledge driven reindustrialisation.

(17)  http://ec.europa.eu/research/press/2013/pdf/ppp/spire_factsheet.pdf.

17

(18)  Chapter 5. EU production and trade based on key enabling technologies. European Competitiveness Report 2013, Towards knowledge driven reindustrialisation.

18

Towards knowledge driven reindustrialisation.

(19)  Rapporteur: Reinhard Bütikofer PR\936863EN.doc PE510.843v01-00 2013/2006(INI).

19

(20)  Uni-Club MoRe Back-reshoring Research Group.

20

(21)  http://www.reshorenow.org

21

(22)  Leibl, P., Morefield, R. and Pfeiffer, R. (2011), A study of the effects of backshoring in the EU, Proceedings of the 13th International Conference of the American Society of Business and Behavioral Sciences http://asbbs.org/files/2010/ASBBS_%20Proceedings_13th_Intl_Meeting.pdf.

22

A study of the effects of backshoring in the EU

th

(23)  Uni-Club MoRe Back-reshoring Research Group.

23

---

| 12.9.2014 | EN | Official Journal of the European Union | C 311/25 |
| --- | --- | --- | --- |

12.9.2014

EN

Official Journal of the European Union

C 311/25

---

Opinion of the European Economic and Social Committee on ‘Industrial Changes in the European Pharmaceutical Sector’

2014/C 311/04

Rapporteur: Mr Almeida Freire

Co-rapporteur: Mr Gibellieri

On 19 September 2013 the European Economic and Social Committee, acting under Rule 29(2) of its Rules of Procedure, decided to draw up an own-initiative opinion on the

Industrial Changes in the European Pharmaceutical Sector.

The Consultative Commission on Industrial Change (CCMI), which was responsible for preparing the Committee's work on the subject, adopted its opinion on 8 April 2014.

At its 498nd plenary session, held on 29 and 30 April 2014(meeting of 29 April), the European Economic and Social Committee adopted the following opinion by 195 votes to 4 with 12 abstentions.

1.   Conclusions and recommendations

| 1.1 | The pharmaceutical sector is one of the most important and strategic for Europe's future. Europe has a rich heritage as one of the main global hubs for pharmaceutical innovation and it has many of the pre-conditions for on-going success. Future success, though, is contingent on the policy environment supporting appropriate use of innovation in European healthcare systems. |
| --- | --- |

1.1

The pharmaceutical sector is one of the most important and strategic for Europe's future. Europe has a rich heritage as one of the main global hubs for pharmaceutical innovation and it has many of the pre-conditions for on-going success. Future success, though, is contingent on the policy environment supporting appropriate use of innovation in European healthcare systems.

| 1.2 | Not only does the pharmaceutical industry have the highest value added per worker, highest research and development intensity and largest trade surplus of all high-tech sectors, it uniquely offers a broader contribution to economic growth through its products contributing to a healthy population. The sector is made up not only of large companies employing large numbers of people, but also small and medium-sized enterprises, whose margins often differ according to firm size. Its partnerships with universities and other institutions around the globe form an integrated life sciences ‘system’. |
| --- | --- |

1.2

Not only does the pharmaceutical industry have the highest value added per worker, highest research and development intensity and largest trade surplus of all high-tech sectors, it uniquely offers a broader contribution to economic growth through its products contributing to a healthy population. The sector is made up not only of large companies employing large numbers of people, but also small and medium-sized enterprises, whose margins often differ according to firm size. Its partnerships with universities and other institutions around the globe form an integrated life sciences ‘system’.

| 1.3 | In the face of intensifying global competition the Committee believes that now is right time to call for a new European Life Sciences Strategy that can ensure a more joined up approach to the industry ensuring that all stakeholder groups continue to benefit from this unique sector. |
| --- | --- |

1.3

In the face of intensifying global competition the Committee believes that now is right time to call for a new European Life Sciences Strategy that can ensure a more joined up approach to the industry ensuring that all stakeholder groups continue to benefit from this unique sector.

| 1.4 | The Committee recommends that a new Life Sciences Strategy should have three elements:






  — | societal policy recommendations — focusing on the sector's contribution to meeting an ageing Europe's challenges of chronic disease management, as well as the need to reduce healthcare inequality; |
| --- | --- | --- |

1.4

The Committee recommends that a new Life Sciences Strategy should have three elements:

—

societal policy recommendations — focusing on the sector's contribution to meeting an ageing Europe's challenges of chronic disease management, as well as the need to reduce healthcare inequality;

| — | scientific policy recommendations — where serious effort should be given to developing a better coordinated, more strategic, pan-European research effort; and |
| --- | --- |

—

scientific policy recommendations — where serious effort should be given to developing a better coordinated, more strategic, pan-European research effort; and

| — | economic policy recommendations, where there is more explicit recognition that investment in healthcare, including in medicines, matters for all segments of society. The Committee recommends that all Member States work with the industry on agreements that could ensure all European consumers (i.e. patients) get equal access to modern medicine. |
| --- | --- |

—

economic policy recommendations, where there is more explicit recognition that investment in healthcare, including in medicines, matters for all segments of society. The Committee recommends that all Member States work with the industry on agreements that could ensure all European consumers (i.e. patients) get equal access to modern medicine.

| 1.5 | The role and independence of the European Medicines Agency (EMA) should be reinforced. |
| --- | --- |

1.5

The role and independence of the European Medicines Agency (EMA) should be reinforced.

| 1.6 | Europe should look to strengthen and consolidate its position as a global leader in pharmaceuticals, through partnerships that stretch beyond its own borders. |
| --- | --- |

1.6

Europe should look to strengthen and consolidate its position as a global leader in pharmaceuticals, through partnerships that stretch beyond its own borders.

| 1.7 | Efforts should be made to reduce inequality in access to medicines across Europe. |
| --- | --- |

1.7

Efforts should be made to reduce inequality in access to medicines across Europe.

| 1.8 | In terms of scientific policy recommendations, Europe should continue to pursue its coordinated strategy for medical and bioscience research in Europe, and an increased focus on excellence in basic biomedical research and education and training to achieve scientific leadership in support of the Europe2020 strategy and to foster competitiveness on a global level. |
| --- | --- |

1.8

In terms of scientific policy recommendations, Europe should continue to pursue its coordinated strategy for medical and bioscience research in Europe, and an increased focus on excellence in basic biomedical research and education and training to achieve scientific leadership in support of the Europe2020 strategy and to foster competitiveness on a global level.

| 1.9 | The Commission should include intellectual property as part of its forthcoming Communication on Industrial Policy for the Pharmaceutical Industry. |
| --- | --- |

1.9

The Commission should include intellectual property as part of its forthcoming Communication on Industrial Policy for the Pharmaceutical Industry.

| 1.10 | The pharmaceutical sector contributes to the Europe 2020 strategy, which is focused on delivering growth that is smart, sustainable, and inclusive; with a strong emphasis on quality job creation and poverty reduction. This will be achieved through more effective investments in education, research and innovation, in demand-side policies creating a ‘pull’ for innovative products and services and in fostering a high-quality employment economy delivering social and territorial cohesion. |
| --- | --- |

1.10

The pharmaceutical sector contributes to the Europe 2020 strategy, which is focused on delivering growth that is smart, sustainable, and inclusive; with a strong emphasis on quality job creation and poverty reduction. This will be achieved through more effective investments in education, research and innovation, in demand-side policies creating a ‘pull’ for innovative products and services and in fostering a high-quality employment economy delivering social and territorial cohesion.

| 1.11 | These initiatives must be supported by an effective social sector dialogue and a multi-stakeholder approach. |
| --- | --- |

1.11

These initiatives must be supported by an effective social sector dialogue and a multi-stakeholder approach.

| 1.12 | The Committee urges the Commission to act without delay to put in place a strategy for the pharmaceutical sector in order to secure a thriving pharmaceutical industry in Europe along the entire value chain (research and development, manufacturing, sales and distribution).. |
| --- | --- |

1.12

The Committee urges the Commission to act without delay to put in place a strategy for the pharmaceutical sector in order to secure a thriving pharmaceutical industry in Europe along the entire value chain (research and development, manufacturing, sales and distribution)..

2.   Historic view and status quo of the pharmaceutical industry

| 2.1 | The European-based pharmaceutical industry makes a major contribution to the European Union, not just in economic terms but also in terms of high-quality employment, investment in the science base and in terms of public health. Europe has made huge strides in improving life expectancy and health outcomes over the last 60 years. The use of innovative medicines has played a major role to these recent advances. Europe is now faced with a new set of challenges. |
| --- | --- |

2.1

The European-based pharmaceutical industry makes a major contribution to the European Union, not just in economic terms but also in terms of high-quality employment, investment in the science base and in terms of public health. Europe has made huge strides in improving life expectancy and health outcomes over the last 60 years. The use of innovative medicines has played a major role to these recent advances. Europe is now faced with a new set of challenges.

| 2.2 | Inequalities in access to healthcare persist and the impact of chronic conditions and degenerative diseases are resulting in more people living longer with some form of medical disability or illness. This negatively impacts on healthcare costs and productivity. |
| --- | --- |

2.2

Inequalities in access to healthcare persist and the impact of chronic conditions and degenerative diseases are resulting in more people living longer with some form of medical disability or illness. This negatively impacts on healthcare costs and productivity.

| 2.3 | Ensuring a safe and effective supply chain for pharmaceutical products for European consumers is an important priority. The European regulatory framework, in theory, ensures that the same standards of quality are delivered to patients irrespective of where the medicine was manufactured. Nevertheless further improving supply chain security — and removing the risk of counterfeit products — through the implementation of the Falsified Medicines Directive will be an important milestone, with the coding and serialisation of every pack of medicines in Europe, which will improve traceability, an essential element. |
| --- | --- |

2.3

Ensuring a safe and effective supply chain for pharmaceutical products for European consumers is an important priority. The European regulatory framework, in theory, ensures that the same standards of quality are delivered to patients irrespective of where the medicine was manufactured. Nevertheless further improving supply chain security — and removing the risk of counterfeit products — through the implementation of the Falsified Medicines Directive will be an important milestone, with the coding and serialisation of every pack of medicines in Europe, which will improve traceability, an essential element.

| 2.4 | The European Medicines Agency (EMA) was set up in 1995, roughly parallel to the US Food and Drug Administration (FDA) but without FDA-style centralisation. The EMA was funded by the EU and the pharmaceutical sector, as well as indirect subsidy from Member States, in an attempt to harmonise (but not replace) the work of existing national medicine regulatory bodies, which continue to work in a network with the EMA. |
| --- | --- |

2.4

The European Medicines Agency (EMA) was set up in 1995, roughly parallel to the US Food and Drug Administration (FDA) but without FDA-style centralisation. The EMA was funded by the EU and the pharmaceutical sector, as well as indirect subsidy from Member States, in an attempt to harmonise (but not replace) the work of existing national medicine regulatory bodies, which continue to work in a network with the EMA.

3.   Industrial changes in the pharmaceutical sector

| 3.1 | On average it takes over 12 years to develop a new medicine to the standards of quality, efficacy and safety expected by regulators. For every medicine that makes enough money to pay for its development, about 25  000 chemical compounds were tested, on average 25 of these will have gone into clinical trials and five will have received a licence. ‘Attrition’ is an inherent part of the innovation process. Given the high-risk and enormous upfront investment made by private sector pharmaceutical companies, the technologies embedded in medicines are offered a certain amount of temporary market exclusivity, for example through patents. |
| --- | --- |

3.1

On average it takes over 12 years to develop a new medicine to the standards of quality, efficacy and safety expected by regulators. For every medicine that makes enough money to pay for its development, about 25  000 chemical compounds were tested, on average 25 of these will have gone into clinical trials and five will have received a licence. ‘Attrition’ is an inherent part of the innovation process. Given the high-risk and enormous upfront investment made by private sector pharmaceutical companies, the technologies embedded in medicines are offered a certain amount of temporary market exclusivity, for example through patents.

| 3.2 | Pharmaceutical innovations are inspired by new science, especially in the understanding of biology. Advances in genomics, proteomics, nanotechnology and the discovery of more accurate biomarkers offer great potential to further improve the medicines available to physicians. The pharmaceutical sector is undergoing structural change driven by: the move away from primary care block-busters towards more speciality products; an increase in generic competition and ongoing R&D productivity challenges. There is also an ongoing challenge of maintaining R&D spending against a backdrop of pressure to deliver short term value to shareholders. |
| --- | --- |

3.2

Pharmaceutical innovations are inspired by new science, especially in the understanding of biology. Advances in genomics, proteomics, nanotechnology and the discovery of more accurate biomarkers offer great potential to further improve the medicines available to physicians. The pharmaceutical sector is undergoing structural change driven by: the move away from primary care block-busters towards more speciality products; an increase in generic competition and ongoing R&D productivity challenges. There is also an ongoing challenge of maintaining R&D spending against a backdrop of pressure to deliver short term value to shareholders.

| 3.3 | The sector directly employs 7 00  000 people (70 % of whom are women) of various scientific and technological specialities, and generates three to four times more employment indirectly. It is a high-quality employer. Its employees are well-educated and the sector generates more value-added per worker than any other high-tech sector. Compared to other sectors, pharmaceutical companies are more resilient to the short-term boom and bust cycle of the macro-economy. This is an important strength for Europe. |
| --- | --- |

3.3

The sector directly employs 7 00  000 people (70 % of whom are women) of various scientific and technological specialities, and generates three to four times more employment indirectly. It is a high-quality employer. Its employees are well-educated and the sector generates more value-added per worker than any other high-tech sector. Compared to other sectors, pharmaceutical companies are more resilient to the short-term boom and bust cycle of the macro-economy. This is an important strength for Europe.

| 3.4 | The medicines life cycle is an elegant framework for ensuring the ongoing flow of new useful technologies, whilst ensuring reasonable budget sustainability. One can consider three phases:






  1) | R&D — where the private sector companies take on risk in order to bring new medicines to market |
| --- | --- | --- |

3.4

The medicines life cycle is an elegant framework for ensuring the ongoing flow of new useful technologies, whilst ensuring reasonable budget sustainability. One can consider three phases:

1)

R&D — where the private sector companies take on risk in order to bring new medicines to market

| 2) | The on-patent market — for companies to recoup the cost of investment, it is important that healthcare systems use new technologies appropriately and that they pay appropriate prices that reflect the value of the medicine and the affordability of the given healthcare system |
| --- | --- |

2)

The on-patent market — for companies to recoup the cost of investment, it is important that healthcare systems use new technologies appropriately and that they pay appropriate prices that reflect the value of the medicine and the affordability of the given healthcare system

| 3) | The off-patent market (generics and biosimilars) — where, as market exclusivity for medicines expires, competitor products generate price erosion and therefore savings for healthcare systems that can be used to fund newer medicines. |
| --- | --- |

3)

The off-patent market (generics and biosimilars) — where, as market exclusivity for medicines expires, competitor products generate price erosion and therefore savings for healthcare systems that can be used to fund newer medicines.

| 3.5 | In recent years the integrity of this ‘life cycle’ has come under pressure. The R&D phase has become longer, more costly and higher risk. Requirements by not just regulators but also payers within healthcare systems for more data have meant that pharmaceutical companies are obliged to spend longer doing more trials against more comparator therapies than was the case previously. During the on-patent market phase, payers have become more sophisticated and discriminating, requiring an ever-higher burden of proof on not just safety and efficacy but also on cost-effectiveness. |
| --- | --- |

3.5

In recent years the integrity of this ‘life cycle’ has come under pressure. The R&D phase has become longer, more costly and higher risk. Requirements by not just regulators but also payers within healthcare systems for more data have meant that pharmaceutical companies are obliged to spend longer doing more trials against more comparator therapies than was the case previously. During the on-patent market phase, payers have become more sophisticated and discriminating, requiring an ever-higher burden of proof on not just safety and efficacy but also on cost-effectiveness.

| 3.6 | New science is offering the potential to better target new therapies to patients with particular characteristics. |
| --- | --- |

3.6

New science is offering the potential to better target new therapies to patients with particular characteristics.

| 3.7 | The size of the market on which pharmaceutical companies are able to recoup their costs, is smaller than it was in previous generations whilst the costs of development have increased and are still increasing. |
| --- | --- |

3.7

The size of the market on which pharmaceutical companies are able to recoup their costs, is smaller than it was in previous generations whilst the costs of development have increased and are still increasing.

| 3.8 | Finally, governments — rightly — have sought to maximise the economic efficiency of off-patent markets. Price competition that delivers a lower cost of treatment with older medicines is an important way in which governments can manage their budgets. An appropriate balance needs to be struck, however. |
| --- | --- |

3.8

Finally, governments — rightly — have sought to maximise the economic efficiency of off-patent markets. Price competition that delivers a lower cost of treatment with older medicines is an important way in which governments can manage their budgets. An appropriate balance needs to be struck, however.

| 3.9 | Whilst it is reasonable to expect rational use of older medicines, it is critical that newer and innovative medicines are used. There is substantial variation in patients' access to innovative therapies across Europe. This not only means that many patients will not get access to the best treatment; it also undermines the viability of the industry in Europe. |
| --- | --- |

3.9

Whilst it is reasonable to expect rational use of older medicines, it is critical that newer and innovative medicines are used. There is substantial variation in patients' access to innovative therapies across Europe. This not only means that many patients will not get access to the best treatment; it also undermines the viability of the industry in Europe.

| 3.10 | The European Commission estimates that the number of the population aged 65 or older in Europe will increase by 75 % by 2050. This means the ratio of people in work paying for the welfare — healthcare and pensions — of the retired will be more challenging. To reduce the burden on workers it is important that as much of the working age population as possible is fit and healthy enough. |
| --- | --- |

3.10

The European Commission estimates that the number of the population aged 65 or older in Europe will increase by 75 % by 2050. This means the ratio of people in work paying for the welfare — healthcare and pensions — of the retired will be more challenging. To reduce the burden on workers it is important that as much of the working age population as possible is fit and healthy enough.

| 3.11 | Good healthcare can drive three important benefits: bringing some individuals who are currently not working at all into work; reduce absenteeism in the work place; and, finally, it can help with the so-called issue of ‘presenteeism’, whereby workers who may be suffering from some sort of illness or disability (but are still working) may be more productive with better healthcare. |
| --- | --- |

3.11

Good healthcare can drive three important benefits: bringing some individuals who are currently not working at all into work; reduce absenteeism in the work place; and, finally, it can help with the so-called issue of ‘presenteeism’, whereby workers who may be suffering from some sort of illness or disability (but are still working) may be more productive with better healthcare.

| 3.12 | Pharmaceuticals is the leading high-technology sector in terms of trade surplus (amounting EUR 48,3 billion in 2011) and it has the highest ratio of R&D investment to net sales. Its members stand for 19,1 % of total worldwide business R&D expenditure. Private sector companies spend around USD 100 billion per year on research and development, with around EUR 30 billion in Europe. The bulk of this expense is in clinical trials, which include not only trials but also post-marketing studies which are required even after a product is on the market. |
| --- | --- |

3.12

Pharmaceuticals is the leading high-technology sector in terms of trade surplus (amounting EUR 48,3 billion in 2011) and it has the highest ratio of R&D investment to net sales. Its members stand for 19,1 % of total worldwide business R&D expenditure. Private sector companies spend around USD 100 billion per year on research and development, with around EUR 30 billion in Europe. The bulk of this expense is in clinical trials, which include not only trials but also post-marketing studies which are required even after a product is on the market.

| 3.13 | Many European patients are currently not seeing the benefits of new medicines. As a consequence, not only is European health and productivity held back but Europe is also not meeting its potential to drive economic value. In a new study published by IMSHealth for a healthcare conference held by the Lithuanian Presidency of the EU, new data are presented that show the variation in access to medicines across the Union. It is consumers in the poorer countries that lose out most. |
| --- | --- |

3.13

Many European patients are currently not seeing the benefits of new medicines. As a consequence, not only is European health and productivity held back but Europe is also not meeting its potential to drive economic value. In a new study published by IMSHealth for a healthcare conference held by the Lithuanian Presidency of the EU, new data are presented that show the variation in access to medicines across the Union. It is consumers in the poorer countries that lose out most.

| 3.14 | To remedy this situation the EU must create a policy environment whereby the new treatments can be priced in line with countries ability to pay as well as their demand. Medicines are unlike any other good in as far as society expects all patients to get access to the medicines they need. An active reflection by European policymakers is called for to ensure that the European single market works in the best interests of all European citizens.
  Expenditure on medicines is being artificially ‘capped’, leading to reduced health outcomes. In countries that significantly reduced medicines expenditure as a result of the financial crisis, or shifted the financial burden from a third-party payer to individuals, health outcomes deteriorated immediately and other, more expensive forms of healthcare delivery saw increased volumes to compensate for poor access to medicines. |
| --- | --- |

3.14

To remedy this situation the EU must create a policy environment whereby the new treatments can be priced in line with countries ability to pay as well as their demand. Medicines are unlike any other good in as far as society expects all patients to get access to the medicines they need. An active reflection by European policymakers is called for to ensure that the European single market works in the best interests of all European citizens.

Expenditure on medicines is being artificially ‘capped’, leading to reduced health outcomes. In countries that significantly reduced medicines expenditure as a result of the financial crisis, or shifted the financial burden from a third-party payer to individuals, health outcomes deteriorated immediately and other, more expensive forms of healthcare delivery saw increased volumes to compensate for poor access to medicines.

4.   Towards a new life sciences strategy for Europe

| 4.1 | While Europe holds many of the prerequisites for sustainable growth the reality is that it is losing ground to the USA as a leader in biopharmaceutical research. |
| --- | --- |

4.1

While Europe holds many of the prerequisites for sustainable growth the reality is that it is losing ground to the USA as a leader in biopharmaceutical research.

| 4.2 | The global pharmaceutical industry is mostly concentrated in the EU and the US and can help address issues of equity allowing both blocs to protect their historic and future investment in medicines. For this purpose it is important that both the economic and the social dimensions, as well as the consumer concerns, must be appropriately factored into the ongoing TTIP (Transatlantic Trade and Investment partnership) discussions. |
| --- | --- |

4.2

The global pharmaceutical industry is mostly concentrated in the EU and the US and can help address issues of equity allowing both blocs to protect their historic and future investment in medicines. For this purpose it is important that both the economic and the social dimensions, as well as the consumer concerns, must be appropriately factored into the ongoing TTIP (Transatlantic Trade and Investment partnership) discussions.

| 4.3 | As middle-income countries improve their prosperity, they should pay their fair share of the costs of innovation in this growing, global, market. Not only is this not currently occurring, there is a growing trend for countries such as India to enact compulsory licensing, alongside other similar strategies such as excessive pricing pressure in Korea. To address and benefit from future challenges and opportunities, we have built our conclusions on three main perspectives — social, scientific and economic, with associated recommendations in each case. |
| --- | --- |

4.3

As middle-income countries improve their prosperity, they should pay their fair share of the costs of innovation in this growing, global, market. Not only is this not currently occurring, there is a growing trend for countries such as India to enact compulsory licensing, alongside other similar strategies such as excessive pricing pressure in Korea. To address and benefit from future challenges and opportunities, we have built our conclusions on three main perspectives — social, scientific and economic, with associated recommendations in each case.

| 4.4 | In terms of societal policy recommendations, the focus must lie on improving health outcomes for the European population in light of the demographic change and challenges due to chronic diseases. Health is a precondition for economic prosperity.
  Huge inequalities persist across Europe, both between and within countries. If this is not corrected urgently the situation will get worse as our population ages. |
| --- | --- |

4.4

In terms of societal policy recommendations, the focus must lie on improving health outcomes for the European population in light of the demographic change and challenges due to chronic diseases. Health is a precondition for economic prosperity.

Huge inequalities persist across Europe, both between and within countries. If this is not corrected urgently the situation will get worse as our population ages.

| 4.5 | Better medicines usage and medicines innovation can play a key role in helping Europe address these challenges. Early diagnosis, best practice pathway management and improving patient adherence are critical challenges where the industry and healthcare providers can work in partnership to improve outcomes. Serious consideration should be given to creating an environment where industry can price based on countries' ability to pay, without risking supply chain diversions. |
| --- | --- |

4.5

Better medicines usage and medicines innovation can play a key role in helping Europe address these challenges. Early diagnosis, best practice pathway management and improving patient adherence are critical challenges where the industry and healthcare providers can work in partnership to improve outcomes. Serious consideration should be given to creating an environment where industry can price based on countries' ability to pay, without risking supply chain diversions.

| 4.6 | Better use should be made of EU structural funding to support improvements in the quality of healthcare infrastructure. |
| --- | --- |

4.6

Better use should be made of EU structural funding to support improvements in the quality of healthcare infrastructure.

| 4.7 | European governments should target for the establishment of a European framework to evaluate chronic disease management programmes by defining benchmarks and ‘best-in-class patient pathways’ for holistic care, and the appropriate usage of both low cost medicines and innovative medicines in the pathway. By building up a platform for large organisational partnerships to develop secondary prevention programmes for chronic diseases, multiple stakeholders, like governments, patient and physician associations, social partners and other civil society institutions, can contribute to a successful implementation of chronic disease management. In this regard the Commission’s Joint Action on Chronic Disease is an important step in the right direction. |
| --- | --- |

4.7

European governments should target for the establishment of a European framework to evaluate chronic disease management programmes by defining benchmarks and ‘best-in-class patient pathways’ for holistic care, and the appropriate usage of both low cost medicines and innovative medicines in the pathway. By building up a platform for large organisational partnerships to develop secondary prevention programmes for chronic diseases, multiple stakeholders, like governments, patient and physician associations, social partners and other civil society institutions, can contribute to a successful implementation of chronic disease management. In this regard the Commission’s Joint Action on Chronic Disease is an important step in the right direction.

| 4.8 | The organisation, governance and funding of basic biomedical research across Europe is currently being managed through a range of independent and fragmented programmes at both Member State and European levels. Despite some excellent European initiatives, reality is that there is too much competition between Member States and not enough effort devoted to achieving a coherent strategy for Europe. This results in different quality assessment criteria, duplication of efforts, waste of financial resources, Europe is falling behind the US in many areas of bio-medical research leading to loss of competitiveness. |
| --- | --- |

4.8

The organisation, governance and funding of basic biomedical research across Europe is currently being managed through a range of independent and fragmented programmes at both Member State and European levels. Despite some excellent European initiatives, reality is that there is too much competition between Member States and not enough effort devoted to achieving a coherent strategy for Europe. This results in different quality assessment criteria, duplication of efforts, waste of financial resources, Europe is falling behind the US in many areas of bio-medical research leading to loss of competitiveness.

| 4.9 | Strengthening basic and translational research, and creating world-class centres of excellence in Europe, is vital to ensure that Europe remains attractive for R&D and manufacturing investors. As Europe has consistently missed the 3 % of GDP invested into its R&D target, a renewed focus on basic science and education is required. Initiatives like the Innovative Medicines Initiative and Horizon 2020 can help drive a culture of open innovation and collaboration, and create a funding vehicle to stimulate targeted investments. |
| --- | --- |

4.9

Strengthening basic and translational research, and creating world-class centres of excellence in Europe, is vital to ensure that Europe remains attractive for R&D and manufacturing investors. As Europe has consistently missed the 3 % of GDP invested into its R&D target, a renewed focus on basic science and education is required. Initiatives like the Innovative Medicines Initiative and Horizon 2020 can help drive a culture of open innovation and collaboration, and create a funding vehicle to stimulate targeted investments.

| 4.10 | In terms of economic policy recommendations, EU should foster the introduction of a ‘growth and stability framework’ in the life science system across Europe to improve stability and predictability for all. The purpose of such a framework, supported by sector-social dialogue, would be to encourage the uptake of valuable new innovations, whilst safeguarding governments' ability to manage budgets in a predictable way. A framework like this would be implemented at Member State level to take into account differences in demographic development, real demand, inflation, technological advancements etc. The social dimension should also be included. |
| --- | --- |

4.10

In terms of economic policy recommendations, EU should foster the introduction of a ‘growth and stability framework’ in the life science system across Europe to improve stability and predictability for all. The purpose of such a framework, supported by sector-social dialogue, would be to encourage the uptake of valuable new innovations, whilst safeguarding governments' ability to manage budgets in a predictable way. A framework like this would be implemented at Member State level to take into account differences in demographic development, real demand, inflation, technological advancements etc. The social dimension should also be included.

| 4.11 | In most countries, medicines have carried a disproportionate burden of the savings within the fiscal consolidation programmes, despite their value having been proven with evidence beyond other areas of healthcare spending. This creates an unpredictable environment for industry, a confusing signal about Europe's commitment to innovation, and potentially risks Member States' ability to drive further efficiency in healthcare through the appropriate use of medicines and other technologies. |
| --- | --- |

4.11

In most countries, medicines have carried a disproportionate burden of the savings within the fiscal consolidation programmes, despite their value having been proven with evidence beyond other areas of healthcare spending. This creates an unpredictable environment for industry, a confusing signal about Europe's commitment to innovation, and potentially risks Member States' ability to drive further efficiency in healthcare through the appropriate use of medicines and other technologies.

| 4.12 | Supporting a sustainable approach to funding healthcare is a key topic for European economic stakeholders and especially consumers. The development of a more sustainable approach to medicines expenditure can ensure that funding goes to areas that provide the greatest returns. It is important to identify opportunities for improved medicines management. A minimum threshold level of financing of healthcare and medicines should be guaranteed for health in all European Member States. |
| --- | --- |

4.12

Supporting a sustainable approach to funding healthcare is a key topic for European economic stakeholders and especially consumers. The development of a more sustainable approach to medicines expenditure can ensure that funding goes to areas that provide the greatest returns. It is important to identify opportunities for improved medicines management. A minimum threshold level of financing of healthcare and medicines should be guaranteed for health in all European Member States.

| 4.13 | This should also include realistic expectations about growth, driven by an ageing population, real innovation and long-term healthcare cost-effectiveness considerations. A framework like this would mitigate the damaging fluctuations observed in healthcare financing during the last three to five years and cultivate long-term planning for all parties involved in the healthcare system. |
| --- | --- |

4.13

This should also include realistic expectations about growth, driven by an ageing population, real innovation and long-term healthcare cost-effectiveness considerations. A framework like this would mitigate the damaging fluctuations observed in healthcare financing during the last three to five years and cultivate long-term planning for all parties involved in the healthcare system.

| 4.14 | Through the Commission's recent Tajani initiative, important work has progressed and been achieved in terms of ethics and transparency; access to medicines, orphan drugs and non-prescription medicines in small countries; biosimilar medicines and managed entry agreements which the Committee supports. |
| --- | --- |

4.14

Through the Commission's recent Tajani initiative, important work has progressed and been achieved in terms of ethics and transparency; access to medicines, orphan drugs and non-prescription medicines in small countries; biosimilar medicines and managed entry agreements which the Committee supports.

| 4.15 | The EESC understands that the Commission is planning an important new Communication on Industrial Policy for the Pharmaceutical Industry. This is timely and the Committee encourages it to set an ambitious agenda that secures a thriving pharmaceutical industry in Europe along the entire value chain (research and development, manufacturing, sales and distribution). |
| --- | --- |

4.15

The EESC understands that the Commission is planning an important new Communication on Industrial Policy for the Pharmaceutical Industry. This is timely and the Committee encourages it to set an ambitious agenda that secures a thriving pharmaceutical industry in Europe along the entire value chain (research and development, manufacturing, sales and distribution).

Brussels, 29 April 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

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| 12.9.2014 | EN | Official Journal of the European Union | C 311/31 |
| --- | --- | --- | --- |

12.9.2014

EN

Official Journal of the European Union

C 311/31

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Opinion of the European Economic and Social Committee on combating forced labour in the EU and the world: the role of the EU — the EESC's contribution to the 2014 ILO conference (own-initiative opinion)

2014/C 311/05

Rapporteur: Béatrice Ouin

At its plenary session of 11 December 2013, the European Economic and Social Committee decided, under Rule 29(2) of its Rules of Procedure, to draw up an own-initiative opinion on

Combating forced labour in the EU and the world: the role of the EU — the EESC's contribution to the 2014 ILO conference.

The Section for External Relations, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 10 April 2014.

At its 498th plenary session, held on 29 and 30 April 2014 (meeting of 30 April), the European Economic and Social Committee adopted the following opinion by 167 votes, with one abstention.

1.   Conclusions and recommendations

Human trafficking has no place in a civilised society. It is nevertheless on the rise and forced labour has become a permanent fixture in certain labour market sectors and a big market for organised crime. The agenda of the 103rd Session of the International Labour Conference, to be held in June 2014, includes a debate on stepping up action to combat forced labour. The nature of forced labour has evolved since the first International Labour Organisation conventions on this issue were adopted in 1929 (C029) and 1957 (C105). Whereas in the past it was mainly state-imposed, today it is concentrated in the private economy and is growing as a consequence of globalisation, migration, the informal economy and international crime networks. The European Union has adopted a directive on human trafficking that takes account of forced labour (1). A new international instrument should be adopted by the Member States and the ILO social partners next June. In this context, the European Economic and Social Committee has a number of recommendations to make based on Europe's experience within and beyond its borders, emphasising in particular the role that civil society plays and could further expand in promoting the effective enforcement of fundamental rights. The Labour Market Observatory will be tasked with monitoring progress on the application of the directive on trafficking in human beings as well as the ILO conventions on forced labour.

| 1.1 | Recommendations |
| --- | --- |

1.1

| 1.2 | For the European Union, to:
  Adopt a joint position with the ILO to ensure that the objectives of the EU Directive on preventing and combating trafficking in human beings and protecting its victims and the EU Strategy towards the Eradication of Trafficking in Human Beings (2) (2012) are incorporated in international labour law. |
| --- | --- |

1.2

For the European Union, to:

Adopt a joint position with the ILO to ensure that the objectives of the EU Directive on preventing and combating trafficking in human beings and protecting its victims and the EU Strategy towards the Eradication of Trafficking in Human Beings (2) (2012) are incorporated in international labour law.

| 1.3 | For the Member States






  — | Adopt — at the next International Labour Conference — an additional protocol to Convention 29, complemented by a recommendation, incorporating human trafficking for labour exploitation, and closing its loopholes in the areas of prevention and victim protection and compensation, and penalties for traffickers, thereby adopting international provisions that already exist in EU law. |
| --- | --- | --- |

1.3

For the Member States

—

Adopt — at the next International Labour Conference — an additional protocol to Convention 29, complemented by a recommendation, incorporating human trafficking for labour exploitation, and closing its loopholes in the areas of prevention and victim protection and compensation, and penalties for traffickers, thereby adopting international provisions that already exist in EU law.

| — | Ratify the Domestic Workers Convention (C189). |
| --- | --- |

—

Ratify the Domestic Workers Convention (C189).

| — | Increase resources for labour inspections and establish European cooperation between them. |
| --- | --- |

—

Increase resources for labour inspections and establish European cooperation between them.

| — | Establish consistency between human trafficking and immigration policies and ensure the enforcement of Directive 2011/36/EU on preventing and combating trafficking in human beings and protecting its victims (3). |
| --- | --- |

—

Establish consistency between human trafficking and immigration policies and ensure the enforcement of Directive 2011/36/EU on preventing and combating trafficking in human beings and protecting its victims (3).

| — | Address the causes by reducing poverty and the victims' vulnerability and raising public awareness. |
| --- | --- |

—

Address the causes by reducing poverty and the victims' vulnerability and raising public awareness.

| 1.4 | For employer businesses and investors






  — | Ensure that the supply chain is free of forced labour and respects human rights in Europe and in third countries by applying the OECD Guidelines for Multinational Enterprises and the ILO tripartite declaration of principles concerning multinational enterprises and social policy. |
| --- | --- | --- |

1.4

For employer businesses and investors

—

Ensure that the supply chain is free of forced labour and respects human rights in Europe and in third countries by applying the OECD Guidelines for Multinational Enterprises and the ILO tripartite declaration of principles concerning multinational enterprises and social policy.

| — | Follow the progress and participate in the Business Coalition against trafficking in human beings, soon to be established by the European Commission. |
| --- | --- |

—

Follow the progress and participate in the Business Coalition against trafficking in human beings, soon to be established by the European Commission.

| 1.5 | For trade union organisations
  Provide training for affiliates on how to interact with victims and support them in taking action, especially in susceptible sectors such as agriculture, construction, catering and hospitality or domestic work. Work with NGOs specialised in providing support for undocumented migrants, who should be seen as victims, not criminals. |
| --- | --- |

1.5

For trade union organisations

Provide training for affiliates on how to interact with victims and support them in taking action, especially in susceptible sectors such as agriculture, construction, catering and hospitality or domestic work. Work with NGOs specialised in providing support for undocumented migrants, who should be seen as victims, not criminals.

| 1.6 | For third sector associations
  Consumer associations should attach importance to the origin of products and insist on the transparency of the entire manufacturing chain.
  Associations that assist irregular migrants and organise domestic workers or that work to abolish prostitution should be recognised and consulted as partners in the fight against forced labour. |
| --- | --- |

1.6

For third sector associations

Consumer associations should attach importance to the origin of products and insist on the transparency of the entire manufacturing chain.

Associations that assist irregular migrants and organise domestic workers or that work to abolish prostitution should be recognised and consulted as partners in the fight against forced labour.

2.   General comments

2.1   Forced labour: what does it mean?

Article 2 of ILO Convention 29, ratified by 177 countries, defines forced labour as ‘all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily’. This definition encompasses detainees in labour camps, bonded labourers, human trafficking for forced labour (workers whose salaries and identity documents have been withheld, etc.). It is difficult to distinguish between labour exploitation and forced labour. According to the ILO, forced labour generally involves toiling for long hours under harsh conditions for little or no pay and is undertaken involuntarily and exacted under threat of penalty. This threat may manifest itself as physical abuse — beatings, torture, or sexual assault — or psychological abuse — the withholding of identity documents and threats of denunciation to the immigration authorities or of reprisal against families, etc. (4) Yesterday's chains of slavery have been replaced with fear and financial coercion.

Forced labour is also defined as a form of exploitation in Directive 2011/36/EU on human trafficking.

2.2   Forced labour: where does it happen?

Domestic work, farming, construction, manufacturing (textiles, toys) are among the most susceptible sectors. Although forced labour in the private sector is essentially a clandestine activity, it is finding its way into the formal economy through sub-contracting and recruitment agencies. As a result, forced labour is infiltrating the supply chain of private groups, including very large groups. In such cases, forced labour usually occurs outside the EU, and the worst affected part of the world is the Asia-Pacific region (56 %). Central and Southern Europe and the Commonwealth of Independent States are the regions with the highest prevalence of forced labour in the world (4,2/1  000 inhabitants). Thirteen of the nineteen countries in this region are on the EU's doorstep. However, contrary to widespread belief, the EU and industrialised countries are not free of forced labour (7 %) (5). Instances of forced domestic or farm labour have been identified in all EU countries. Adults and children are also forced into illicit or informal economic activities, including begging. These figures must be compared with the figures for corruption in the EU, which makes action against forced labour all the more difficult.

2.3   Forced labour: who are its victims?

Although irregular migrants are not the only victims of forced labour, there is no question that they are the most at risk and make up the majority of its victims. Caught in a vicious circle, these victims dare not complain for fear of being repatriated. Traffickers are often irregular migrants themselves, who exploit their compatriots. Ethnic or racial minorities, migrants and the financially disadvantaged are the most exposed to forced labour, and within these groups, women and children. Women make up the majority of victims trafficked for the purposes of sexual exploitation as well as for domestic work, where they are isolated. The victims are often vulnerable people who are not in trade unions and unable to defend and protect themselves. The growth of the informal economy creates opportunities for traffickers. Poor labour inspection and policing make it impossible to stem its expansion.

The economic crisis which took hold of Europe in 2008 has led workers to seek employment in wealthier countries. These skills are now lacking in their countries of origin, which have had to call on migrants from even further afield, who are also in search of better living conditions. They are faced with difficulties they never imagined, having no papers, no job security, no social protection and no possibility of returning to their countries. This situation, which undermines many families, is a fertile seedbed for human traffickers.

2.4   Forced labour in figures

| — | Globally, according to a recent ILO estimate in 2012, about 21 million people are victims of forced labour, 58 % of them women and girls. A quarter of victims are minors under 18 years of age. Almost 19 million are exploited by individuals or private enterprises and over 2 million by States or rebel armed forces. Out of those exploited by individuals or private enterprises, 4,5 million are victims of forced sexual exploitation. According to these ILO figures, the average duration of forced labour is 18 months. |
| --- | --- |

—

Globally, according to a recent ILO estimate in 2012, about 21 million people are victims of forced labour, 58 % of them women and girls. A quarter of victims are minors under 18 years of age. Almost 19 million are exploited by individuals or private enterprises and over 2 million by States or rebel armed forces. Out of those exploited by individuals or private enterprises, 4,5 million are victims of forced sexual exploitation. According to these ILO figures, the average duration of forced labour is 18 months.

Contrary to received wisdom, 2013 Eurostat figures on human trafficking in Europe show that the majority of victims identified in the Member States between 2008 and 2010 — i.e. 61 % — were EU citizens. Similarly, the majority of prosecuted traffickers had EU citizenship (67 % in 2008, 76 % in 2010) (6). Nevertheless, the percentage of identified and presumed victims from non-EU countries trebled between 2008 and 2010, rising from 12 % to 37 %, which confirms that migration from third countries is a vulnerability factor. The highest figures for identified and presumed victims of human trafficking in 2010 were reported by Italy (2  381), Spain (1  605), Romania (1  154) and the Netherlands (993) and the lowest figures by Hungary (10), Portugal (8), Malta (4) and Lithuania (3) (7). In the EU Member States, out of a total estimated number of 8 80  000 people in forced labour, 2 70  000 (30 %) are victims of forced sexual exploitation and 6 10  000 (70 %) of forced labour (8).

2.5   Human trafficking: how does it work?

The link between human trafficking and forced labour is strong and recognised in the relevant literature (even though the victims of forced labour are not all victims of trafficking). Migration is triggered by poverty and/or armed conflict and imbalances in development between neighbouring regions. Traffickers use deception, threats and debts. Victims are often recruited, transported or harboured by force, coercion or fraud. The existence and manipulation of debt is used to gain and maintain control over a person. Migrant workers often borrow large amounts to pay the trafficker for organising transport, obtaining travel documents and securing a job. Prospective migrants borrow these sums from friends or relatives on the basis that they will subsequently be able to support their families and provide for their futures. The thought of returning home without being able to repay their debt is inconceivable for most migrant workers even when they find that the job they were promised does not exist and are faced with working in exploitative conditions for an indefinite period. They have to pay exorbitant sums of money for their passports and transport, and then for accommodation and food. In many countries, irregular migrant workers have no access to justice (9).

2.6   The consequences of forced labour

In addition to infringing human rights, forced labour penalises businesses and workers. Honest businesses are faced with unfair competition from others that utilise products involving the use of forced labour. As for workers, forced labour exerts downward pressure on wages and working conditions and on funds for social solidarity.

2.7   Forced labour: who benefits?

Human trafficking is very lucrative: those who sponsor or impose forced labour generate immense illegal profits. In 2005, global profits made from forced labour exploitation reached USD 44,3 billion, of which USD 31,6 billion came from trafficked victims. Of these profits, USD 15,5 billion, or 49 %, were generated in industrialised countries (10), including the European Union. Human trafficking finances crime networks in the same way as arms and drug trafficking.

3.   Specific comments

3.1   Instruments for fighting forced labour

It is a fundamental labour right — alongside freedom of association and collective bargaining, the minimum working age (prohibition of child labour) and non-discrimination in respect of employment and occupation — not to be required to perform forced labour. This has been confirmed by the UN, the ILO, the OECD and the EU (Article 5 of the Charter of Fundamental Rights of the European Union and Article 4 of the European Convention for the Protection of Human Rights). In addition to ILO Conventions 29 and 105, there are others, such as the domestic work (C189), labour inspection (C081 and C129), migrant workers (C097 and C143), and private employment agencies (C181) conventions, which provide scope for action.

As a fundamental right, it is universal and must also be applied in countries that have not ratified the core conventions on the basis of the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up. According to the UN Guiding Principles on Business and Human Rights, multinational corporations have a responsibility to respect human rights that exists independently of the role of the State in the countries where they operate (11).

Forced labour is identified as a form of exploitation in Directive 2011/36/EU. The directive defines all forms of exploitation as criminal offences and harmonises sanctions against people who engage in exploitation or businesses that use forced labour. It also sets out provisions on prevention and on the protection and compensation of victims.

However, despite the proclamation of rights and the number of international instruments, forced labour is not being eradicated. Crime networks are undeterred by borders and take advantage of discrepancies between the various systems.

The ILO conventions need to be supplemented in order to be able to address current forms of forced labour. They make no reference to human trafficking, prevention or victim protection and compensation.

3.2   Loopholes in the instruments

There is a great disparity between the weight (fundamental rights) and number of standards and rules (UN), conventions (ILO) or recommendations (OECD Guidelines for multinational enterprises (12), ISO 26000 (13), the ILO tripartite declaration of principles concerning multinational enterprises and social policy (14), non-financial reporting) and their application. Where action plans exist, there is often no budget, monitoring or evaluation in place. Instruments are inconsistent: immigration policies, border control policies and human rights protection, for example, often contradict each other, whereas cooperation policies, which could serve as levers to combat trafficking and forced labour, make no mention of this aspect.

The plethora of instruments does not guarantee effectiveness. The instruments of international institutions are now complemented by a range of private standards: codes of conduct, certification and labels, etc. In Europe, there are 240 labels, many of which are self-defined and not subject to verification. For instance, in their codes of conduct, some multinational corporations undertake to respect local legislation everywhere: a questionable commitment in countries that discriminate against women and do not uphold trade union rights! Some codes of conduct are worded to reassure consumers and investors; they involve no monitoring or verification and do not really address forced labour, making it possible to cut costs and increase profits.

3.3   Action to end forced labour in the EU and elsewhere

| 3.3.1 | Loopholes in existing instruments need to be closed: the countries of Europe should speak with one voice at the ILO to ensure adoption of an additional protocol to ILO Convention 29 and a recommendation to reinforce prevention, monitoring and victim protection and compensation.

  In the European Union







  — | The European Union adopted a directive on human trafficking (Directive 2011/36/EU) and a strategy (EESC opinion SOC/467). The European strategy against human trafficking includes a specific initiative targeting labour exploitation as one of the least studied aspects of trafficking and provides a set of measures involving labour inspectors and the relevant authorities, as well as the European Commission. However, these initiatives are recent and have yet to deliver all the expected outcomes. Furthermore, in cases where the economic crisis has resulted in the reduction of police and labour inspection resources and the growth of the informal economy, rising poverty and financial insecurity are likely to lead to an increase in forced labour. Prevention certainly involves awareness-raising, education and information, but also action against the informal economy and poverty, with particular focus on the most vulnerable groups, including migrants who do not speak the language of the host country. |
| --- | --- | --- |

3.3.1

Loopholes in existing instruments need to be closed: the countries of Europe should speak with one voice at the ILO to ensure adoption of an additional protocol to ILO Convention 29 and a recommendation to reinforce prevention, monitoring and victim protection and compensation.

In the European Union

—

The European Union adopted a directive on human trafficking (Directive 2011/36/EU) and a strategy (EESC opinion SOC/467). The European strategy against human trafficking includes a specific initiative targeting labour exploitation as one of the least studied aspects of trafficking and provides a set of measures involving labour inspectors and the relevant authorities, as well as the European Commission. However, these initiatives are recent and have yet to deliver all the expected outcomes. Furthermore, in cases where the economic crisis has resulted in the reduction of police and labour inspection resources and the growth of the informal economy, rising poverty and financial insecurity are likely to lead to an increase in forced labour. Prevention certainly involves awareness-raising, education and information, but also action against the informal economy and poverty, with particular focus on the most vulnerable groups, including migrants who do not speak the language of the host country.

| — | Labour inspection requires adequate monitoring tools and European cooperation must be strengthened by setting up an agency to deal with crossborder issues and broadening the mandate of the platform for cooperation between labour inspections to include forced labour and to coordinate the other authorities responsible for combating undeclared work (the tax authorities). |
| --- | --- |

—

Labour inspection requires adequate monitoring tools and European cooperation must be strengthened by setting up an agency to deal with crossborder issues and broadening the mandate of the platform for cooperation between labour inspections to include forced labour and to coordinate the other authorities responsible for combating undeclared work (the tax authorities).

| — | Labour inspectors, social workers and trade union representatives should have indicators (e.g. Do workers have a passport? Do they have freedom of movement? Are they being paid?) that enable them to spot forced labour and call in the police (15). |
| --- | --- |

—

Labour inspectors, social workers and trade union representatives should have indicators (e.g. Do workers have a passport? Do they have freedom of movement? Are they being paid?) that enable them to spot forced labour and call in the police (15).

| — | Recruitment and placement agencies that recruit from other EU or non-EU countries (in construction, agriculture, waste and cleaning services, etc.) must be monitored and supervised in order to avoid fraudulent practices. Under the European strategy against human trafficking, the Commission will work with the European Foundation for the Improvement of Living and Working Conditions (Eurofound) to develop a best practice guide for public authorities on the monitoring of recruitment and placement agencies as well as intermediary agencies to prevent trafficking in human beings. The guide should include licensing systems and work related to the liability of such agencies. |
| --- | --- |

—

Recruitment and placement agencies that recruit from other EU or non-EU countries (in construction, agriculture, waste and cleaning services, etc.) must be monitored and supervised in order to avoid fraudulent practices. Under the European strategy against human trafficking, the Commission will work with the European Foundation for the Improvement of Living and Working Conditions (Eurofound) to develop a best practice guide for public authorities on the monitoring of recruitment and placement agencies as well as intermediary agencies to prevent trafficking in human beings. The guide should include licensing systems and work related to the liability of such agencies.

| — | Victims must be protected and their rights guaranteed and backdated (wage arrears, social protection), and compensation must be commensurate with the harm suffered. They should not be prosecuted for breaching immigration laws or for possession of false identity papers, nor for crimes committed under coercion (16). It is the traffickers who are the criminals and who should be prosecuted. The seizure of the traffickers' assets should make it possible to provide compensation to their victims. |
| --- | --- |

—

Victims must be protected and their rights guaranteed and backdated (wage arrears, social protection), and compensation must be commensurate with the harm suffered. They should not be prosecuted for breaching immigration laws or for possession of false identity papers, nor for crimes committed under coercion (16). It is the traffickers who are the criminals and who should be prosecuted. The seizure of the traffickers' assets should make it possible to provide compensation to their victims.

| — | Victims must be in a position to take legal action and must therefore be allowed to remain in the country for the duration of the legal proceedings even if they have entered the EU illegally. Residence permits should not depend on the victims' willingness to cooperate with the police and courts since many of them have been traumatised by their extremely negative experiences with the police. They may fear that testifying against their exploiters could lead to reprisals against their families in their countries of origin. Directive 2011/36/EU sets out a number of obligations for Member States to assist and protect victims. The enforcement of these measures must be as effective as possible to ensure adequate protection for victims, including the most vulnerable among them. |
| --- | --- |

—

Victims must be in a position to take legal action and must therefore be allowed to remain in the country for the duration of the legal proceedings even if they have entered the EU illegally. Residence permits should not depend on the victims' willingness to cooperate with the police and courts since many of them have been traumatised by their extremely negative experiences with the police. They may fear that testifying against their exploiters could lead to reprisals against their families in their countries of origin. Directive 2011/36/EU sets out a number of obligations for Member States to assist and protect victims. The enforcement of these measures must be as effective as possible to ensure adequate protection for victims, including the most vulnerable among them.

| 3.3.2 | Outside the European Union, greater account needs to be taken of the appearance of new players — NGOs and multinational corporations — as a consequence of globalisation. WTO rules do not incorporate the ILO conventions explicitly enough. An ILO observer should attend WTO proceedings. The implementation of the conclusions and recommendations of the ILO supervisory system/mechanism relating to the legislation and practices of ILO Member States should also be reinforced. Quite often, action is not taken on these recommendations for lack of political will and/or the financial resources and administrative capacity to act on them. |
| --- | --- |

3.3.2

Outside the European Union, greater account needs to be taken of the appearance of new players — NGOs and multinational corporations — as a consequence of globalisation. WTO rules do not incorporate the ILO conventions explicitly enough. An ILO observer should attend WTO proceedings. The implementation of the conclusions and recommendations of the ILO supervisory system/mechanism relating to the legislation and practices of ILO Member States should also be reinforced. Quite often, action is not taken on these recommendations for lack of political will and/or the financial resources and administrative capacity to act on them.

| 3.3.3 | The EU is working on a directive on corporate social responsibility (CSR) (17), which will require companies with more than 500 employees to publish a non-financial statement containing information on the environmental, social, and employee-related impact of their operations, including respect for human rights and anti-corruption efforts. This directive is in line with ILO standards (EESC opinion INT/698). |
| --- | --- |

3.3.3

The EU is working on a directive on corporate social responsibility (CSR) (17), which will require companies with more than 500 employees to publish a non-financial statement containing information on the environmental, social, and employee-related impact of their operations, including respect for human rights and anti-corruption efforts. This directive is in line with ILO standards (EESC opinion INT/698).

| 3.3.4 | Development and external aid policy could be a lever if aid was conditional upon respect for fundamental rights by States as well as other stakeholders, especially multinational corporations exploiting the resources of the beneficiary countries. Furthermore, development aid should feature administrative capacity-building projects, including training for labour inspectors and the social partners on the implementation of the ILO conventions. Trade policy and development policy should support each other to secure better human rights enforcement. The ratification and effective implementation of the ILO conventions on forced labour (C029 and C105), and other ILO core conventions, should feature in the EU's trade, cooperation and association agreements with third countries and should be monitored on a regular basis. Civil society organisations must be involved through monitoring bodies that focus on the implementation of trade agreements and their chapter on trade and sustainable development. |
| --- | --- |

3.3.4

Development and external aid policy could be a lever if aid was conditional upon respect for fundamental rights by States as well as other stakeholders, especially multinational corporations exploiting the resources of the beneficiary countries. Furthermore, development aid should feature administrative capacity-building projects, including training for labour inspectors and the social partners on the implementation of the ILO conventions. Trade policy and development policy should support each other to secure better human rights enforcement. The ratification and effective implementation of the ILO conventions on forced labour (C029 and C105), and other ILO core conventions, should feature in the EU's trade, cooperation and association agreements with third countries and should be monitored on a regular basis. Civil society organisations must be involved through monitoring bodies that focus on the implementation of trade agreements and their chapter on trade and sustainable development.

| 3.3.5 | Counting on civil society |
| --- | --- |

3.3.5

| 3.3.5.1 | Increasing the role that businesses play in connection with respecting and promoting human rights: this is what the OECD recommends in its guiding principles for multinationals (18). It is also what the Ruggie Report (UN) (19) advocates by involving governments, enterprises, civil society and investors. The report advises businesses to carry out risk assessments (human rights due diligence). They should take a preventative approach and play an active part in combating fundamental rights infringements. Multinational corporations and investors must be made accountable because it is their concern, but also in order to make it possible to prosecute them when they fail to exercise due diligence. Corporate accountability should also extend to the application of ILO standards. The accuracy of their statements should be monitored by independent non-financial assessment agencies. |
| --- | --- |

3.3.5.1

Increasing the role that businesses play in connection with respecting and promoting human rights: this is what the OECD recommends in its guiding principles for multinationals (18). It is also what the Ruggie Report (UN) (19) advocates by involving governments, enterprises, civil society and investors. The report advises businesses to carry out risk assessments (human rights due diligence). They should take a preventative approach and play an active part in combating fundamental rights infringements. Multinational corporations and investors must be made accountable because it is their concern, but also in order to make it possible to prosecute them when they fail to exercise due diligence. Corporate accountability should also extend to the application of ILO standards. The accuracy of their statements should be monitored by independent non-financial assessment agencies.

| 3.3.5.2 | Many multinational corporations are European and they are leaders when it comes to concluding international framework agreements with international trade union federations, particularly on CSR, including combating forced labour. The renewed EU strategy (20) 2011-2014 for CSR expects all European enterprises to meet their corporate responsibility to respect human rights (21). |
| --- | --- |

3.3.5.2

Many multinational corporations are European and they are leaders when it comes to concluding international framework agreements with international trade union federations, particularly on CSR, including combating forced labour. The renewed EU strategy (20) 2011-2014 for CSR expects all European enterprises to meet their corporate responsibility to respect human rights (21).

| 3.3.5.3 | Investment is another lever: many investors are signatories to the UN's Principles for Responsible Investment (PRI) (22), and socially responsible investments now comprise 22 % of investment flows, of which 49 % are European. |
| --- | --- |

3.3.5.3

Investment is another lever: many investors are signatories to the UN's Principles for Responsible Investment (PRI) (22), and socially responsible investments now comprise 22 % of investment flows, of which 49 % are European.

| 3.3.5.4 | Businesses can take action through responsible purchasing policies, but so can administrative bodies and local authorities when awarding public procurement contracts, by ensuring that the companies they work with have the means to eliminate forced labour from their supply chain. |
| --- | --- |

3.3.5.4

Businesses can take action through responsible purchasing policies, but so can administrative bodies and local authorities when awarding public procurement contracts, by ensuring that the companies they work with have the means to eliminate forced labour from their supply chain.

| 3.3.5.5 | European NGOs are also leaders in the area of consumer rights when it comes to knowing where and under what conditions clothing and shoes, or even food products from non-EU countries, have been made (23). Insisting on greater transparency and traceability for all the components of a product or service should make it possible to eradicate forced labour. |
| --- | --- |

3.3.5.5

European NGOs are also leaders in the area of consumer rights when it comes to knowing where and under what conditions clothing and shoes, or even food products from non-EU countries, have been made (23). Insisting on greater transparency and traceability for all the components of a product or service should make it possible to eradicate forced labour.

| 3.3.5.6 | Several trade union organisations have experience to share on setting up training courses on how to approach the victims of forced labour and methods for working with NGOs specialised in supporting irregular migrants, but not all of them have a global picture of the scale of the problem. Many still believe that it is not happening in their country or that they can do nothing to prevent it. States could help trade union organisations to organise workers in the informal sector.

  Trade union organisations in contractor countries should support unionisation in the countries executing the contracts, and third-country workers calling for living wages and decent working hours and jobs.

  European sectoral social dialogue committees are among the tools which could be used to raise awareness and combat forced labour. |
| --- | --- |

3.3.5.6

Several trade union organisations have experience to share on setting up training courses on how to approach the victims of forced labour and methods for working with NGOs specialised in supporting irregular migrants, but not all of them have a global picture of the scale of the problem. Many still believe that it is not happening in their country or that they can do nothing to prevent it. States could help trade union organisations to organise workers in the informal sector.

Trade union organisations in contractor countries should support unionisation in the countries executing the contracts, and third-country workers calling for living wages and decent working hours and jobs.

European sectoral social dialogue committees are among the tools which could be used to raise awareness and combat forced labour.

Brussels, 30 April 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

---

(1)  2011/36/EU.

1

(2)  http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52012DC0286:EN:NOT.

2

(3)  OJ L 101/1, 15.4.2011.

3

(4)  The ILO and the Commission asked a group of experts to develop operational indicators to identify human trafficking. The following document devotes a page specifically to labour exploitation: http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---declaration/documents/publication/wcms_105023.pdf.

4

(5)  http://www.unodc.org/documents/data-and-analysis/glotip/Trafficking_in_Persons_2012_web.pdf.

5

(6)  EUROSTAT Trafficking in human beings (2013 edition): http://ec.europa.eu/dgs/home-affairs/what-is-new/news/news/2013/docs/20130415_thb_stats_report_en.pdf.

6

(7)  It should be stressed that the 2013 EUROSTAT figures are based solely on numbers reported by EU Member States and do not capture unidentified victims of trafficking. Not all Member States provided data. Also, methodologies used by national authorities differed to a large extent. That is why direct comparisons between country figures may be misleading.

7

(8)  ILO Global Estimate of Forced Labour 2012: Results and Methodology, Geneva, 2012. The ILO data refers to the estimated (as opposed to reported) number of persons in forced labour situations. Figures represent a minimum estimate as strict criteria for data validation and extrapolation were applied. The estimate provides a breakdown by region. A breakdown by country is not available as very few countries have attempted to develop national estimates.

8

http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---declaration/documents/publication/wcms_182004.pdf.

(9)  E.g.: An Irish employer was asked to pay out EUR 90  000 in unpaid wages to a forced labourer. The employer appealed, claiming that the worker did not have the right to compensation because he was undocumented, and won the appeal (http://www.mrci.ie/resources/publications/mrciupdates/the-fight-for-justice-muhammads-story-part-ii/).

9

(10)  Patrick Belser, Forced Labour and Human Trafficking: Estimating the Profits, Working Paper, Geneva, International Labour Office, 2005: http://www.ilo.org/sapfl/Informationresources/ILOPublications/WCMS_081971/lang--en/index.htm.

10

Forced Labour and Human Trafficking: Estimating the Profits

(11)  UN Report of the Special Representative of the Secretary-General on the issue of human rights and transnational corporations and other business enterprises, John Ruggie — (2011) UN GA A/HRC/17/31 http://www.ohchr.org/Documents/Issues/Business/A.HRC.17.31_en.pdf.

11

(12)  OECD Guidelines for Multinational Enterprises (2011): http://www.oecd.org/daf/inv/mne/oecdguidelinesformultinationalenterprises.htm.

12

(13)  ISO 26000 — Social responsibility: http://www.iso.org/iso/home/standards/iso26000.htm?=.

13

(14)  ILO Tripartite declaration of principles concerning multinational enterprises and social policy (MNE Declaration) — 4th Edition (2006):

14

th

http://www.ilo.org/empent/Publications/WCMS_094386/lang--en/index.htm.

(15)  http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---declaration/documents/publication/wcms_105023.pdf.

15

(16)  OSCE guidelines on non-punishment (2013): http://www.osce.org/cthb/101083.

16

(17)  Proposal for a Directive of the European Parliament and of the Council amending Council Directives 78/660/EEC and 83/349/EEC as regards disclosure of non-financial and diversity information by certain large companies and groups, COM(2013) 207 final — 2013/0110 (COD).

17

(18)  http://www.oecd.org/daf/inv/mne/oecdguidelinesformultinationalenterprises.htm.

18

(19)  http://www.ohchr.org/Documents/Issues/Business/A.HRC.17.31_en.pdf.

19

(20)  http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0681:FIN:EN:PDF.

20

(21)  A renewed EU strategy 2011-2014 for Corporate Social Responsibility

21

(COM(2011) 681) final (http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0681:FIN:EN:PDF)

(22)  UN Principles for Responsible Investment website: http://www.unpri.org.

22

(23)  Clean Clothes Campaign website http://www.cleanclothes.org.

23

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| 12.9.2014 | EN | Official Journal of the European Union | C 311/38 |
| --- | --- | --- | --- |

12.9.2014

EN

Official Journal of the European Union

C 311/38

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Opinion of the European Economic and Social Committee on ‘Consumer protection and appropriate treatment of over-indebtedness to prevent social exclusion’ (exploratory opinion)

2014/C 311/06

Rapporteur-general: Reine-Claude Mader

In a letter dated 6 December 2013, and in accordance with Article 304 of the Treaty on the Functioning of the European Union, Mr Theodoros Sotiropoulos, Permanent Representative of Greece to the European Union, asked the European Economic and Social Committee, on behalf of the future Greek Presidency, to draw up an exploratory opinion on

Consumer protection and appropriate treatment of over-indebtedness to prevent social exclusion.

Given the urgent nature of the work, the European Economic and Social Committee appointed Reine-Claude Mader as rapporteur-general at its 498th plenary session, held on 29 and 30 April 2014 (meeting of 29 April), and adopted the following opinion by 164 votes to 12 with 4 abstentions.

1.   Conclusions and recommendations

| 1.1 | The EESC is extremely concerned about the problem of over-indebtedness, which has grown with the financial crisis, the rising cost of living and use of cash credit. In a number of opinions it has stressed the need for measures to be adopted at European level. |
| --- | --- |

1.1

The EESC is extremely concerned about the problem of over-indebtedness, which has grown with the financial crisis, the rising cost of living and use of cash credit. In a number of opinions it has stressed the need for measures to be adopted at European level.

| 1.2 | It notes that, although the causes have been identified, there is no harmonised definition of the concept of over-indebtedness and no means of getting an accurate picture of the situation in the Member States. It therefore calls for a common definition to be adopted. |
| --- | --- |

1.2

It notes that, although the causes have been identified, there is no harmonised definition of the concept of over-indebtedness and no means of getting an accurate picture of the situation in the Member States. It therefore calls for a common definition to be adopted.

| 1.3 | This should include the following elements: (i) the household, as a relevant unit of measure for quantifying over-indebtedness; (ii) financial commitments; (iii) informal commitments within the family or a community; (iv) inability to pay; (v) structural over-indebtedness; (vi) decent quality of life, and (vii) insolvency. |
| --- | --- |

1.3

This should include the following elements: (i) the household, as a relevant unit of measure for quantifying over-indebtedness; (ii) financial commitments; (iii) informal commitments within the family or a community; (iv) inability to pay; (v) structural over-indebtedness; (vi) decent quality of life, and (vii) insolvency.

| 1.4 | The EESC stresses that consumer protection must be genuinely integrated into all the measures adopted to implement the single market. |
| --- | --- |

1.4

The EESC stresses that consumer protection must be genuinely integrated into all the measures adopted to implement the single market.

| 1.5 | If over-indebtedness is to be properly addressed, education, prevention and appropriate procedures for reintegrating over-indebted people into normal economic life are needed. |
| --- | --- |

1.5

If over-indebtedness is to be properly addressed, education, prevention and appropriate procedures for reintegrating over-indebted people into normal economic life are needed.

| 1.6 | To this end, an overall perspective on the issue of household over-indebtedness and effective measures are essential. |
| --- | --- |

1.6

To this end, an overall perspective on the issue of household over-indebtedness and effective measures are essential.

| 1.7 | Financial education must initially be provided in schools, but must also be available at all times for all those who need it. In this regard the EESC advocates information campaigns involving all stakeholders in order to ensure pooling of complementary expertise.
  It stresses the essential role played by consumer and family associations in disseminating information and providing assistance to people who would like it. |
| --- | --- |

1.7

Financial education must initially be provided in schools, but must also be available at all times for all those who need it. In this regard the EESC advocates information campaigns involving all stakeholders in order to ensure pooling of complementary expertise.

It stresses the essential role played by consumer and family associations in disseminating information and providing assistance to people who would like it.

| 1.8 | Facilities for pre-empting and dealing with situations of over-indebtedness have been put in place in a number of Member States, but they are different.
  The EESC believes that an appropriate, uniform procedure based on Article 38 of the Charter of Fundamental Rights, Article 114 TFEU and also Article 81 TFEU must be put in place in all the Member States, in accordance with general principles proposed by the Commission in a proposal for a directive. This will be tangible proof of the European Parliament's interest in resolving the problems of European citizens. |
| --- | --- |

1.8

Facilities for pre-empting and dealing with situations of over-indebtedness have been put in place in a number of Member States, but they are different.

The EESC believes that an appropriate, uniform procedure based on Article 38 of the Charter of Fundamental Rights, Article 114 TFEU and also Article 81 TFEU must be put in place in all the Member States, in accordance with general principles proposed by the Commission in a proposal for a directive. This will be tangible proof of the European Parliament's interest in resolving the problems of European citizens.

| 1.9 | These principles must include the procedure being quick and free of charge, the suspension of proceedings when a procedure for containing the over-indebtedness has been opened, verification of claims, keeping the main residence, equal treatment of ordinary creditors, the possibility of cancelling debts in the most burdensome situations and the obligation to leave an over-indebted person enough to live on decently day to day, the aim being to reintegrate the consumer into economic and social life quickly. |
| --- | --- |

1.9

These principles must include the procedure being quick and free of charge, the suspension of proceedings when a procedure for containing the over-indebtedness has been opened, verification of claims, keeping the main residence, equal treatment of ordinary creditors, the possibility of cancelling debts in the most burdensome situations and the obligation to leave an over-indebted person enough to live on decently day to day, the aim being to reintegrate the consumer into economic and social life quickly.

| 1.10 | The Committee also stresses the importance it attaches to banking inclusion, which must be safeguarded for people in a situation of over-indebtedness in order to avoid any social exclusion. |
| --- | --- |

1.10

The Committee also stresses the importance it attaches to banking inclusion, which must be safeguarded for people in a situation of over-indebtedness in order to avoid any social exclusion.

| 1.11 | Combating over-indebtedness requires a European framework for usury. |
| --- | --- |

1.11

Combating over-indebtedness requires a European framework for usury.

| 1.12 | However, just implementing a facility to address over-indebtedness will not be enough to reduce the number of cases. It must go hand in hand with measures to develop domestic and financial education, which means that the necessary resources must be earmarked for this purpose. |
| --- | --- |

1.12

However, just implementing a facility to address over-indebtedness will not be enough to reduce the number of cases. It must go hand in hand with measures to develop domestic and financial education, which means that the necessary resources must be earmarked for this purpose.

| 1.13 | Lastly, it stresses the need for compliance with the texts in mastering over-indebtedness. On this point it reiterates its support for the concept of ‘responsible credit’, which requires distributors and underwriters to use fair, ethical practices. |
| --- | --- |

1.13

Lastly, it stresses the need for compliance with the texts in mastering over-indebtedness. On this point it reiterates its support for the concept of ‘responsible credit’, which requires distributors and underwriters to use fair, ethical practices.

2.   Introduction

| 2.1 | The Commission noted in 2013, in its Social Investment Package (1), a substantial increase in the number of evictions and homeless since the start of the crisis, and that over-indebtedness was one of the causes of this situation. |
| --- | --- |

2.1

The Commission noted in 2013, in its Social Investment Package (1), a substantial increase in the number of evictions and homeless since the start of the crisis, and that over-indebtedness was one of the causes of this situation.

| 2.2 | Over-indebtedness increased in the early 80s, affecting more and more people and sparing no socio-professional category. |
| --- | --- |

2.2

Over-indebtedness increased in the early 80s, affecting more and more people and sparing no socio-professional category.

| 2.3 | Situations of over-indebtedness can no longer be seen as the problem of an individual in the sway of their compulsions and passions. Today, they reflect a social and societal crisis. |
| --- | --- |

2.3

Situations of over-indebtedness can no longer be seen as the problem of an individual in the sway of their compulsions and passions. Today, they reflect a social and societal crisis.

| 2.4 | In 2013 the European Central Bank noted that over half the population of the euro area owed debts to financial institutions (2). |
| --- | --- |

2.4

In 2013 the European Central Bank noted that over half the population of the euro area owed debts to financial institutions (2).

| 2.5 | According to this survey, over-indebtedness generally arises following an unexpected drop in income, related in particular to a job loss, illness, separation or even over-consumption (3). |
| --- | --- |

2.5

According to this survey, over-indebtedness generally arises following an unexpected drop in income, related in particular to a job loss, illness, separation or even over-consumption (3).

| 2.6 | After Denmark, which in 1984 adopted a comprehensive facility to address over-indebtedness of individuals, France was the second European country to adopt similar measures, with the law of 31 December 1989 on prevention and resolution of difficulties related to over-indebtedness of individuals and households (4). |
| --- | --- |

2.6

After Denmark, which in 1984 adopted a comprehensive facility to address over-indebtedness of individuals, France was the second European country to adopt similar measures, with the law of 31 December 1989 on prevention and resolution of difficulties related to over-indebtedness of individuals and households (4).

| 2.7 | Over-indebtedness affects all the Member States, to different degrees. It has increased with the financial crisis, which has destabilised numerous countries' economies. It is all the more important to address the issue as all economic operators are suffering the financial consequences of over-indebtedness; businesses, especially SMEs, are also weakened by their bankrupt clients' failure to pay. |
| --- | --- |

2.7

Over-indebtedness affects all the Member States, to different degrees. It has increased with the financial crisis, which has destabilised numerous countries' economies. It is all the more important to address the issue as all economic operators are suffering the financial consequences of over-indebtedness; businesses, especially SMEs, are also weakened by their bankrupt clients' failure to pay.

| 2.8 | It is currently giving greater cause for concern, as it is hitting poor workers, the unemployed, who have accumulated unpaid bills for essential services such as energy, water, insurance and the telephone and late rent payments, middle class people, often following a twist of fate, and also pensioners whose pensions have fallen because of austerity policies or who give financial support to their family (5). The causes of over-indebtedness have been identified. It is a result of unemployment, job insecurity and certain family situations. Single parent households are the worst affected. Over-indebtedness can in certain cases be the result of a twist of fate, a divorce, a separation, a death, an illness or a disability requiring costly care to be provided. The prohibitive cost of university fees in certain Member States also plays a significant role in over-indebtedness among young people. |
| --- | --- |

2.8

It is currently giving greater cause for concern, as it is hitting poor workers, the unemployed, who have accumulated unpaid bills for essential services such as energy, water, insurance and the telephone and late rent payments, middle class people, often following a twist of fate, and also pensioners whose pensions have fallen because of austerity policies or who give financial support to their family (5). The causes of over-indebtedness have been identified. It is a result of unemployment, job insecurity and certain family situations. Single parent households are the worst affected. Over-indebtedness can in certain cases be the result of a twist of fate, a divorce, a separation, a death, an illness or a disability requiring costly care to be provided. The prohibitive cost of university fees in certain Member States also plays a significant role in over-indebtedness among young people.

| 2.9 | The recent rise in over-indebtedness encompasses another sociological category: middle class people who have lost their job and are faced with heavy mortgage payments on their home, with no short-term prospect of finding another job. |
| --- | --- |

2.9

The recent rise in over-indebtedness encompasses another sociological category: middle class people who have lost their job and are faced with heavy mortgage payments on their home, with no short-term prospect of finding another job.

| 2.10 | There are therefore a great variety of causes and effects of over-indebtedness among and within the categories of people concerned. |
| --- | --- |

2.10

There are therefore a great variety of causes and effects of over-indebtedness among and within the categories of people concerned.

| 2.11 | The risk of over-indebtedness is heightened by the imbalance between the rise of income and the rise in the cost of living, which is linked to changing lifestyles, national austerity policies, rising everyday expenses such as energy, housing, electronic communications, telephone, transport and financial costs. |
| --- | --- |

2.11

The risk of over-indebtedness is heightened by the imbalance between the rise of income and the rise in the cost of living, which is linked to changing lifestyles, national austerity policies, rising everyday expenses such as energy, housing, electronic communications, telephone, transport and financial costs.

| 2.12 | Taking out loans in an affluent society, encouraged by aggressive, misleading advertising campaigns, to make up for loss of income or obtain goods and services, is also at the root of over-indebtedness in numerous cases. In this regard, it should be noted that vulnerable population groups are worse affected by debt as they do not have access to all forms of credit owing to their poor creditworthiness. They are directed towards the most costly options, such as ‘cash credit’, which often involve cards distributed by various operators with very high interest rates. |
| --- | --- |

2.12

Taking out loans in an affluent society, encouraged by aggressive, misleading advertising campaigns, to make up for loss of income or obtain goods and services, is also at the root of over-indebtedness in numerous cases. In this regard, it should be noted that vulnerable population groups are worse affected by debt as they do not have access to all forms of credit owing to their poor creditworthiness. They are directed towards the most costly options, such as ‘cash credit’, which often involve cards distributed by various operators with very high interest rates.

| 2.13 | Offers for this kind of credit card are frequently sent by post to people's homes and include phrases such as ‘Congratulations! You have won a free loan with no repayment charges’, disregarding the rules on consumer information and protection. The EESC calls for these cards' period of validity and credit limit to be strictly regulated (6). |
| --- | --- |

2.13

Offers for this kind of credit card are frequently sent by post to people's homes and include phrases such as ‘Congratulations! You have won a free loan with no repayment charges’, disregarding the rules on consumer information and protection. The EESC calls for these cards' period of validity and credit limit to be strictly regulated (6).

| 2.14 | The issue of mortgage or consumer credit rates also warrants particular attention. Some loans have uncapped, variable interest rates which can change considerably according to the market. |
| --- | --- |

2.14

The issue of mortgage or consumer credit rates also warrants particular attention. Some loans have uncapped, variable interest rates which can change considerably according to the market.

| 2.15 | Sometimes, on the pretext of making households solvent, loans are granted with progressively rising rates on the basis that income will rise, which the salary caps imposed in some countries — or even salary losses — caused by the crisis have prevented from happening. |
| --- | --- |

2.15

Sometimes, on the pretext of making households solvent, loans are granted with progressively rising rates on the basis that income will rise, which the salary caps imposed in some countries — or even salary losses — caused by the crisis have prevented from happening.

| 2.16 | Moreover, in the absence of European harmonisation, usury is not regulated in some Member States. |
| --- | --- |

2.16

Moreover, in the absence of European harmonisation, usury is not regulated in some Member States.

| 2.17 | Some over-indebted households that are in arrears with payments or repayments are at greater risk from social exclusion and in danger of being deprived of utilities or evicted from their home, not to mention the difficulties of access to healthcare caused by this instability. For example, over 75  000 over-indebted Spaniards were evicted in 2012 — that is 16,7 % more than in 2011 (7). |
| --- | --- |

2.17

Some over-indebted households that are in arrears with payments or repayments are at greater risk from social exclusion and in danger of being deprived of utilities or evicted from their home, not to mention the difficulties of access to healthcare caused by this instability. For example, over 75  000 over-indebted Spaniards were evicted in 2012 — that is 16,7 % more than in 2011 (7).

| 2.18 | Although they are not exactly the same in each Member State, consensus is emerging on the main causes of over-indebtedness. However, we do not have the means to evaluate the situation at European level with the necessary accuracy, as has been pointed out in previous Committee opinions (8). There are no European records. Moreover, if they are to be established, agreement first needs to be reached on what is meant by ‘over-indebtedness’ and on the criteria and methods for measuring it. |
| --- | --- |

2.18

Although they are not exactly the same in each Member State, consensus is emerging on the main causes of over-indebtedness. However, we do not have the means to evaluate the situation at European level with the necessary accuracy, as has been pointed out in previous Committee opinions (8). There are no European records. Moreover, if they are to be established, agreement first needs to be reached on what is meant by ‘over-indebtedness’ and on the criteria and methods for measuring it.

| 2.19 | The Committee has already observed this and called for work to start on a Green Paper making recommendations for working solutions and an electronic consultation. |
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2.19

The Committee has already observed this and called for work to start on a Green Paper making recommendations for working solutions and an electronic consultation.

| 2.20 | In this regard, the EESC would like to see a common working definition of over-indebtedness established at European level, based on the fact that it is impossible for a consumer to cope with all their debts, of whatever kind and whatever their commitments. Without such a definition enabling this multi-faceted phenomenon to be measured, public action is in danger of being completely ineffectual. |
| --- | --- |

2.20

In this regard, the EESC would like to see a common working definition of over-indebtedness established at European level, based on the fact that it is impossible for a consumer to cope with all their debts, of whatever kind and whatever their commitments. Without such a definition enabling this multi-faceted phenomenon to be measured, public action is in danger of being completely ineffectual.

| 2.21 | It supports the idea of setting up a European over-indebtedness observatory without additional budgetary expenditure, incorporating effective existing national practices. |
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2.21

It supports the idea of setting up a European over-indebtedness observatory without additional budgetary expenditure, incorporating effective existing national practices.

| 2.22 | Lastly, it considers that over-indebtedness must be addressed, before it arises, through financial education, which is essential for developing responsible, controlled consumption. |
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2.22

Lastly, it considers that over-indebtedness must be addressed, before it arises, through financial education, which is essential for developing responsible, controlled consumption.

3.   Establishing a common European working definition of over-indebtedness

| 3.1 | According to a study published in February 2008 (9), giving an overview of the definitions and measures adopted to address over-indebtedness in 18 Member States and one European Free Trade Association country (10), there is no consensus on the definition of over-indebtedness because the concepts differ between countries. |
| --- | --- |

3.1

According to a study published in February 2008 (9), giving an overview of the definitions and measures adopted to address over-indebtedness in 18 Member States and one European Free Trade Association country (10), there is no consensus on the definition of over-indebtedness because the concepts differ between countries.

| 3.2 | Over-indebtedness is a complex, multi-faceted, evolving phenomenon, as stressed by a 2013 statistical analysis commissioned by the European Commission Directorate-General for Health and Consumers (DG SANCO) (11). |
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3.2

Over-indebtedness is a complex, multi-faceted, evolving phenomenon, as stressed by a 2013 statistical analysis commissioned by the European Commission Directorate-General for Health and Consumers (DG SANCO) (11).

| 3.3 | As the Council of Europe has also noted (12), it can include problems related to loan instalments and to day-to-day difficulties with paying bills. |
| --- | --- |

3.3

As the Council of Europe has also noted (12), it can include problems related to loan instalments and to day-to-day difficulties with paying bills.

| 3.4 | Various sources show that the unit of measure used in most cases is the household. Almost half of the national definitions include the length of indebtedness or the fact that it is structural. The majority include ability to honour commitments. |
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3.4

Various sources show that the unit of measure used in most cases is the household. Almost half of the national definitions include the length of indebtedness or the fact that it is structural. The majority include ability to honour commitments.

| 3.5 | Some of the following common factors can be picked out to serve as a common basis. |
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3.5

Some of the following common factors can be picked out to serve as a common basis.

| 3.6 | The EESC believes that the following factors must be taken into consideration in a common working definition of over-indebtedness:






  — | the household, as a relevant unit of measure to quantify over-indebtedness (13); |
| --- | --- | --- |

3.6

The EESC believes that the following factors must be taken into consideration in a common working definition of over-indebtedness:

—

the household, as a relevant unit of measure to quantify over-indebtedness (13);

| — | financial commitments. These include mortgages, consumer credit, phone, digital communication, utility (water, heating, electricity, etc.) and health-related bills, rent and day-to-day expenses (food, transport, education, etc.); |
| --- | --- |

—

financial commitments. These include mortgages, consumer credit, phone, digital communication, utility (water, heating, electricity, etc.) and health-related bills, rent and day-to-day expenses (food, transport, education, etc.);

| — | informal commitments entered into within the family or a community. The EESC insists on the need for this criterion to be included, as it is playing an increasingly large role in over-indebtedness; |
| --- | --- |

—

informal commitments entered into within the family or a community. The EESC insists on the need for this criterion to be included, as it is playing an increasingly large role in over-indebtedness;

| — | inability to pay. An over-indebted household is unable to pay its day-to-day expenses or those related to its formal and informal commitments; |
| --- | --- |

—

inability to pay. An over-indebted household is unable to pay its day-to-day expenses or those related to its formal and informal commitments;

| — | structural over-indebtedness. This is a time-related criterion intended to cover persistent, ongoing financial difficulties; |
| --- | --- |

—

structural over-indebtedness. This is a time-related criterion intended to cover persistent, ongoing financial difficulties;

| — | decent standard of living. The household must be able to make good its formal and informal financial commitments without reducing the minimum expenditure which is essential for it to maintain its standard of living; |
| --- | --- |

—

decent standard of living. The household must be able to make good its formal and informal financial commitments without reducing the minimum expenditure which is essential for it to maintain its standard of living;

| — | insolvency. The household is unable to remedy its financial situation by drawing on its financial and other assets. |
| --- | --- |

—

insolvency. The household is unable to remedy its financial situation by drawing on its financial and other assets.

4.   Preventing over-indebtedness

4.1   Financial education and responsible consumption

| 4.1.1 | Just introducing a legislative measure to address over-indebtedness will not be enough to reduce the number of cases. A holistic approach is required. Pre-emptive measures must be taken to avoid over-indebtedness as far as possible. |
| --- | --- |

4.1.1

Just introducing a legislative measure to address over-indebtedness will not be enough to reduce the number of cases. A holistic approach is required. Pre-emptive measures must be taken to avoid over-indebtedness as far as possible.

| 4.1.2 | The need for financial education is a recurring theme in financial services debates, but the necessary resources are not allocated to it. This is clear if one looks at the amounts devoted to advertising and the amounts devoted to financial education side by side. |
| --- | --- |

4.1.2

The need for financial education is a recurring theme in financial services debates, but the necessary resources are not allocated to it. This is clear if one looks at the amounts devoted to advertising and the amounts devoted to financial education side by side.

| 4.1.3 | Among the measures it advocates, the EESC has already stressed the need to develop education in sustainable consumption (14). It believes that financial education is essential, as it helps an individual to achieve proper management of their budget and to prevent over-indebtedness. |
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4.1.3

Among the measures it advocates, the EESC has already stressed the need to develop education in sustainable consumption (14). It believes that financial education is essential, as it helps an individual to achieve proper management of their budget and to prevent over-indebtedness.

| 4.1.4 | The EESC notes that in none of the 18 Member States mentioned was pre-emptive education provided by a single supplier. It calls on the European Union to put in place an education system that can achieve the stated goal. |
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4.1.4

The EESC notes that in none of the 18 Member States mentioned was pre-emptive education provided by a single supplier. It calls on the European Union to put in place an education system that can achieve the stated goal.

| 4.1.5 | The EESC calls for financial education to be integrated into school teaching curricula. In this connection, it points to the need for training to be adapted to the age and knowledge of recipients so that it meets their needs. |
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4.1.5

The EESC calls for financial education to be integrated into school teaching curricula. In this connection, it points to the need for training to be adapted to the age and knowledge of recipients so that it meets their needs.

| 4.1.6 | The Commission should also encourage Member States to make provision for a national financial education programme delivered either by teachers or through public-private partnerships, and publicise existing European facilities more. |
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4.1.6

The Commission should also encourage Member States to make provision for a national financial education programme delivered either by teachers or through public-private partnerships, and publicise existing European facilities more.

| 4.1.7 | The EESC feels that information and outreach campaigns on the subject of finance must be stepped up as all sections of the public must be able to benefit from education. It believes that these campaigns can be run by different social and economic players, public authorities, NGOs, business federations and consumer federations. This would bring complementary sources of information to bear to serve the general interest. The need for this dissemination of information is, moreover, recognised in some countries, which have set up programmes accessible to the public. |
| --- | --- |

4.1.7

The EESC feels that information and outreach campaigns on the subject of finance must be stepped up as all sections of the public must be able to benefit from education. It believes that these campaigns can be run by different social and economic players, public authorities, NGOs, business federations and consumer federations. This would bring complementary sources of information to bear to serve the general interest. The need for this dissemination of information is, moreover, recognised in some countries, which have set up programmes accessible to the public.

| 4.1.8 | The EESC also believes it is important for people who so wish to have easy access throughout their lives to information, advice and assistance in managing their budgets or resolving difficulties they may have with their credit institution, or indeed with a service provider or administration. It considers in this regard that the work that has already been carried out by consumer associations, which are close to the public, who provide assistance by holding information meetings or supporting and helping the people concerned free of charge, should be supported and promoted. |
| --- | --- |

4.1.8

The EESC also believes it is important for people who so wish to have easy access throughout their lives to information, advice and assistance in managing their budgets or resolving difficulties they may have with their credit institution, or indeed with a service provider or administration. It considers in this regard that the work that has already been carried out by consumer associations, which are close to the public, who provide assistance by holding information meetings or supporting and helping the people concerned free of charge, should be supported and promoted.

| 4.1.9 | Lastly, efforts to control indebtedness must comply with the spirit and letter of the texts regarding consumer credit, mortgages and unfair business practices (abusive clauses, misleading advertising, aggressive door-to-door selling) (15). |
| --- | --- |

4.1.9

Lastly, efforts to control indebtedness must comply with the spirit and letter of the texts regarding consumer credit, mortgages and unfair business practices (abusive clauses, misleading advertising, aggressive door-to-door selling) (15).

4.2   Over-indebtedness should be averted by facilitating responsible lending and dissuasive penalties for breach of professionals' information obligations

| 4.2.1 | Professionals must behave responsibly right from their product offers and advertising onwards, as well as in the advice and explanations they give to consumers when they take out a loan. A personalised approach is needed, and it is regrettable that it is not currently common practice, despite the legislation and codes of conduct that exist in most countries. Transparency with regard to products, particularly when it comes to loans taken out in foreign currencies, the risks they entail for guarantors or for spouses who are indirectly liable, and clear information must be the rule, whatever the medium used. |
| --- | --- |

4.2.1

Professionals must behave responsibly right from their product offers and advertising onwards, as well as in the advice and explanations they give to consumers when they take out a loan. A personalised approach is needed, and it is regrettable that it is not currently common practice, despite the legislation and codes of conduct that exist in most countries. Transparency with regard to products, particularly when it comes to loans taken out in foreign currencies, the risks they entail for guarantors or for spouses who are indirectly liable, and clear information must be the rule, whatever the medium used.

| 4.2.2 | The EESC supports the concept of responsible credit, in the sense that it makes the contractual partners accountable (16). Controlling lending with the help of registers is in line with this approach. |
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4.2.2

The EESC supports the concept of responsible credit, in the sense that it makes the contractual partners accountable (16). Controlling lending with the help of registers is in line with this approach.

| 4.2.3 | In this sensitive context, the EESC believes that particular focus is needed on processing of personal data. |
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4.2.3

In this sensitive context, the EESC believes that particular focus is needed on processing of personal data.

4.3   Over-indebtedness should be prevented by regulating credit and the personal credit sector

| 4.3.1 | Directive 2008/48/EC on credit agreements for consumers (17) instructs the Member States to require lenders or intermediaries to provide the consumer with clear information in their advertising, supplying them with bases for comparison, and also sets out the principal financial information that should be included in agreements. |
| --- | --- |

4.3.1

Directive 2008/48/EC on credit agreements for consumers (17) instructs the Member States to require lenders or intermediaries to provide the consumer with clear information in their advertising, supplying them with bases for comparison, and also sets out the principal financial information that should be included in agreements.

| 4.3.2 | This directive, which is based on consumer information, is not sufficient to prevent over-indebtedness. |
| --- | --- |

4.3.2

This directive, which is based on consumer information, is not sufficient to prevent over-indebtedness.

| 4.3.3 | Effective legislation in this area must include measures to educate professionals and consumers. |
| --- | --- |

4.3.3

Effective legislation in this area must include measures to educate professionals and consumers.

| 4.3.4 | Hence, some Member States go further than the directive, stipulating that a consumer credit agreement must warn consumers against certain abuses, or remind them of their right to receive a detailed repayment schedule. |
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4.3.4

Hence, some Member States go further than the directive, stipulating that a consumer credit agreement must warn consumers against certain abuses, or remind them of their right to receive a detailed repayment schedule.

| 4.3.5 | The EESC calls for EU legislation to be more incisive and ambitious than Directive 2006/114/EC concerning misleading and comparative advertising (18), banning certain forms of misleading or abusive advertising, particularly where they target vulnerable consumers or consumers who are already unable to pay off their debts (19). |
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4.3.5

The EESC calls for EU legislation to be more incisive and ambitious than Directive 2006/114/EC concerning misleading and comparative advertising (18), banning certain forms of misleading or abusive advertising, particularly where they target vulnerable consumers or consumers who are already unable to pay off their debts (19).

4.4   Fighting usury

| 4.4.1 | The European consumer would be better protected if there was a European framework for usury. The essential mechanism in the fight against usury consists of determining a maximum total cost of the credit, encompassing all interest and charges relating to the credit agreement, expressed as an annual percentage rate (APR). This can vary according to the type of credit and the amount borrowed. |
| --- | --- |

4.4.1

The European consumer would be better protected if there was a European framework for usury. The essential mechanism in the fight against usury consists of determining a maximum total cost of the credit, encompassing all interest and charges relating to the credit agreement, expressed as an annual percentage rate (APR). This can vary according to the type of credit and the amount borrowed.

| 4.4.2 | The situation differs widely within Europe (20). |
| --- | --- |

4.4.2

The situation differs widely within Europe (20).

| 4.4.3 | There are generally safeguards on loans to individuals, but some countries have fully liberalised their usury systems for corporate credit. Only France and Italy continue to be the exceptions. |
| --- | --- |

4.4.3

There are generally safeguards on loans to individuals, but some countries have fully liberalised their usury systems for corporate credit. Only France and Italy continue to be the exceptions.

| 4.4.4 | In most countries interest rate control is based on case law rather than legislation. That is the case in the United Kingdom and Spain. |
| --- | --- |

4.4.4

In most countries interest rate control is based on case law rather than legislation. That is the case in the United Kingdom and Spain.

| 4.4.5 | In Germany the courts assess usury on the basis of the market averages published monthly by the Bundesbank for different types of credit. The margin is considered to be excessive if it is over twice the market figure. |
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4.4.5

In Germany the courts assess usury on the basis of the market averages published monthly by the Bundesbank for different types of credit. The margin is considered to be excessive if it is over twice the market figure.

| 4.4.6 | Like France, Italy has a law regulating interest rates. There, the usury rate is also reset quarterly. However, an interest rate is considered to be usurious if it is over 50 % more than the average bank rate. |
| --- | --- |

4.4.6

Like France, Italy has a law regulating interest rates. There, the usury rate is also reset quarterly. However, an interest rate is considered to be usurious if it is over 50 % more than the average bank rate.

5.   Dealing with over-indebtedness

| 5.1 | Many Member States have introduced judicial procedures for containing over-indebtedness. The available data, despite the absence of comparative studies on legislation covering all the 28 Member States, shows that the general aim in dealing with over-indebtedness is to find a solution that will enable households to avoid social exclusion and, where possible, to pay off their debts as far as their means allow. Some systems provide for partial or total cancellation of the debts where the situation of over-indebted people is irreparable, in order to give them a second chance. |
| --- | --- |

5.1

Many Member States have introduced judicial procedures for containing over-indebtedness. The available data, despite the absence of comparative studies on legislation covering all the 28 Member States, shows that the general aim in dealing with over-indebtedness is to find a solution that will enable households to avoid social exclusion and, where possible, to pay off their debts as far as their means allow. Some systems provide for partial or total cancellation of the debts where the situation of over-indebted people is irreparable, in order to give them a second chance.

| 5.2 | Business insolvency law, on which the EESC has issued an opinion, is an interesting example in this regard (21). |
| --- | --- |

5.2

Business insolvency law, on which the EESC has issued an opinion, is an interesting example in this regard (21).

| 5.3 | Most European countries have introduced judicial procedures for dealing with over-indebtedness, which vary in type and as regards conditions of access and the nature of the debts concerned. |
| --- | --- |

5.3

Most European countries have introduced judicial procedures for dealing with over-indebtedness, which vary in type and as regards conditions of access and the nature of the debts concerned.

| 5.3.1 | They all allow the court to impose a debt settlement plan on over-indebted persons and their creditors. The decision is generally preceded by an ‘amicable’ stage, during which an effort is made to obtain agreement among the various parties on a plan and, if this is achieved, the plan is then approved by the court (22). |
| --- | --- |

5.3.1

They all allow the court to impose a debt settlement plan on over-indebted persons and their creditors. The decision is generally preceded by an ‘amicable’ stage, during which an effort is made to obtain agreement among the various parties on a plan and, if this is achieved, the plan is then approved by the court (22).

| 5.3.2 | Alongside the intervention of the court, these procedures can include the appointment of a law officer (the debt mediator in Belgium, the receiver in the Netherlands) to receive and check debt statements, investigate the living conditions and assets of over-indebted persons, determine, where necessary, the income needed to enable them to meet current outgoings, retain the surplus income to pay creditors, arrange for some of the property of the persons concerned to be sold, draw up a debt settlement plan and supervise its implementation and monitor the good faith of the over-indebted persons (23). |
| --- | --- |

5.3.2

Alongside the intervention of the court, these procedures can include the appointment of a law officer (the debt mediator in Belgium, the receiver in the Netherlands) to receive and check debt statements, investigate the living conditions and assets of over-indebted persons, determine, where necessary, the income needed to enable them to meet current outgoings, retain the surplus income to pay creditors, arrange for some of the property of the persons concerned to be sold, draw up a debt settlement plan and supervise its implementation and monitor the good faith of the over-indebted persons (23).

| 5.3.3 | In this regard, the EESC stresses the need for provision to be made at European level for certain essential property not to be seized on any account nor sold for a low price. |
| --- | --- |

5.3.3

In this regard, the EESC stresses the need for provision to be made at European level for certain essential property not to be seized on any account nor sold for a low price.

| 5.3.4 | Usually, the institution of such procedures makes it impossible for ordinary creditors to bring individual proceedings in order to lay their hands on the assets or income of the persons concerned. Naturally, those persons are not allowed to get further into debt; otherwise they forfeit the benefits of the debt settlement procedure. |
| --- | --- |

5.3.4

Usually, the institution of such procedures makes it impossible for ordinary creditors to bring individual proceedings in order to lay their hands on the assets or income of the persons concerned. Naturally, those persons are not allowed to get further into debt; otherwise they forfeit the benefits of the debt settlement procedure.

| 5.3.5 | The Committee believes that standardising these procedures would help to protect consumers from social exclusion, provided that they are fast, simple and free of charge for debtors, who are by definition in a delicate situation. |
| --- | --- |

5.3.5

The Committee believes that standardising these procedures would help to protect consumers from social exclusion, provided that they are fast, simple and free of charge for debtors, who are by definition in a delicate situation.

| 5.3.6 | In addition, the suspension of legal proceedings should be ordered at the beginning of the procedure to avoid pressure from creditors. |
| --- | --- |

5.3.6

In addition, the suspension of legal proceedings should be ordered at the beginning of the procedure to avoid pressure from creditors.

| 5.3.7 | The EESC points to the need for a verification of claims phase, to ensure that the rights of the different parties are respected. |
| --- | --- |

5.3.7

The EESC points to the need for a verification of claims phase, to ensure that the rights of the different parties are respected.

| 5.3.8 | It notes that in some countries what happens to the main residence is dealt with separately in order to prevent families being evicted from their dwelling. It welcomes this and believes that it should be systematically the case, in order to avoid social exclusion of families, which must be an essential objective in the interest of society. |
| --- | --- |

5.3.8

It notes that in some countries what happens to the main residence is dealt with separately in order to prevent families being evicted from their dwelling. It welcomes this and believes that it should be systematically the case, in order to avoid social exclusion of families, which must be an essential objective in the interest of society.

| 5.3.9 | It recommends providing for partial or total cancellation of the debts for the most burdensome situations, in order to prevent the risk of social exclusion. |
| --- | --- |

5.3.9

It recommends providing for partial or total cancellation of the debts for the most burdensome situations, in order to prevent the risk of social exclusion.

| 5.3.10 | The Committee feels that procedures for dealing with over-indebtedness should not lead to exclusion from essential bank services, as these are indispensable for economic and social life. |
| --- | --- |

5.3.10

The Committee feels that procedures for dealing with over-indebtedness should not lead to exclusion from essential bank services, as these are indispensable for economic and social life.

| 5.3.11 | The EESC stresses that the resources made available for the operation of these facilities must allow customised handling of situations. In this regard, support schemes for people who feel the need therefore seem a good idea. |
| --- | --- |

5.3.11

The EESC stresses that the resources made available for the operation of these facilities must allow customised handling of situations. In this regard, support schemes for people who feel the need therefore seem a good idea.

6.   Providing a high level of consumer protection to help consolidate the single market

| 6.1 | The EESC believes that in order to reach this goal and achieve a more unified market, a uniform procedure also based on the Charter of Fundamental Rights, Article 114 TFEU and Article 81 TFEU must be introduced in all the Member States, in accordance with general principles that the Commission could propose in a directive along the following lines. |
| --- | --- |

6.1

The EESC believes that in order to reach this goal and achieve a more unified market, a uniform procedure also based on the Charter of Fundamental Rights, Article 114 TFEU and Article 81 TFEU must be introduced in all the Member States, in accordance with general principles that the Commission could propose in a directive along the following lines.

| 6.2 | The EESC stresses that some of the measures are already in place in some Member States and it would be worth introducing them across the board. |
| --- | --- |

6.2

The EESC stresses that some of the measures are already in place in some Member States and it would be worth introducing them across the board.

6.3   Assistance facilities for over-indebted people

| 6.3.1 | Advice on financial services and consumption, banks' and credit institutions' obligation to provide advice, and assistance in budget management are often not enough or not appropriate for people in debt. National authorities must therefore provide people in difficulties with social assistance services which can supply immediate help, or even free legal assistance, where that is desired. In this connection the Member States could support and formalise the role of legal assistance provision played by consumer protection associations. |
| --- | --- |

6.3.1

Advice on financial services and consumption, banks' and credit institutions' obligation to provide advice, and assistance in budget management are often not enough or not appropriate for people in debt. National authorities must therefore provide people in difficulties with social assistance services which can supply immediate help, or even free legal assistance, where that is desired. In this connection the Member States could support and formalise the role of legal assistance provision played by consumer protection associations.

| 6.3.2 | Provision can be made for social assistance for the most serious situations of debt, covering electricity and gas, housing, food, health and payment to creditors of all or part of the debts. |
| --- | --- |

6.3.2

Provision can be made for social assistance for the most serious situations of debt, covering electricity and gas, housing, food, health and payment to creditors of all or part of the debts.

| 6.3.3 | Moreover, a facility must be put in place for analysing people's specific situations, verifying the legality of the sums claimed from them, negotiating a debt settlement plan with their creditors or working on other solutions such as judicial proceedings, informing them of their rights and obligations. |
| --- | --- |

6.3.3

Moreover, a facility must be put in place for analysing people's specific situations, verifying the legality of the sums claimed from them, negotiating a debt settlement plan with their creditors or working on other solutions such as judicial proceedings, informing them of their rights and obligations.

7.   European over-indebtedness observatory

| 7.1 | The EESC advocates setting up a European over-indebtedness observatory without additional budgetary expenditure. This would be based on existing national systems and should make up for the current lack of reliable statistics, making it possible to analyse the causes of over-indebtedness and the groups of people concerned in depth, to compare the situations in the Member States and the measures proposed for remedying them and to measure the development of the phenomenon. |
| --- | --- |

7.1

The EESC advocates setting up a European over-indebtedness observatory without additional budgetary expenditure. This would be based on existing national systems and should make up for the current lack of reliable statistics, making it possible to analyse the causes of over-indebtedness and the groups of people concerned in depth, to compare the situations in the Member States and the measures proposed for remedying them and to measure the development of the phenomenon.

| 7.2 | The observatory could be supplemented with a forum, open to all stakeholders, which could include dialogue on good practices. |
| --- | --- |

7.2

The observatory could be supplemented with a forum, open to all stakeholders, which could include dialogue on good practices.

| 7.3 | Fighting consumer over-indebtedness and preventing social exclusion require a holistic approach. The problem cannot be effectively combated by isolated, uncoordinated action at EU level. It is essential for consumers, public administrations and businesses to cooperate more, in order to put more creative, effective methods in place. |
| --- | --- |

7.3

Fighting consumer over-indebtedness and preventing social exclusion require a holistic approach. The problem cannot be effectively combated by isolated, uncoordinated action at EU level. It is essential for consumers, public administrations and businesses to cooperate more, in order to put more creative, effective methods in place.

| 7.4 | The observatory could be made up of departments dealing with the following issues: data collection, existing legal frameworks and awareness-raising and education campaigns. |
| --- | --- |

7.4

The observatory could be made up of departments dealing with the following issues: data collection, existing legal frameworks and awareness-raising and education campaigns.

| 7.5 | The members of the observatory would come from both public and private sectors. The private sector could be represented by members of professional associations and national and European consumer associations, from various economic sectors and geographical areas who are engaged in fighting over-indebtedness. They would actively take part in the work of the observatory's departments, where appropriate as part of the working groups. |
| --- | --- |

7.5

The members of the observatory would come from both public and private sectors. The private sector could be represented by members of professional associations and national and European consumer associations, from various economic sectors and geographical areas who are engaged in fighting over-indebtedness. They would actively take part in the work of the observatory's departments, where appropriate as part of the working groups.

| 7.6 | The public sector would be represented by national experts appointed by the Member States who have forged links with the private sector and have experience in the field of consumer protection and over-indebtedness. The national representatives should also have some experience in raising public awareness. |
| --- | --- |

7.6

The public sector would be represented by national experts appointed by the Member States who have forged links with the private sector and have experience in the field of consumer protection and over-indebtedness. The national representatives should also have some experience in raising public awareness.

Brussels, 29 April 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

---

(1)  COM(2013) 83 final (OJ C 271, 19.9.2013, p. 91).

1

(2)  European Central Bank, 2013. Eurosystem Household Finance and Consumption Survey: Results from the first wave, Statistics Paper Series, April 2013, pp. 57-71.

2

(3)  Eurofound (2013), Household over-indebtedness in the EU: The role of informal debts, Publications Office of the European Union, Luxembourg.

3

(4)  Senate discussion paper: Le traitement du surendettement (Addressing over-indebtedness). European Affairs department. April 1998.

4

Le traitement du surendettement

(5)  Eurofound 2013, op. cit.

5

(6)  OJ C 18, 19.1.2011, p. 24.

6

(7)  L'Expansion.com with AFP, published on 22.3.2013.

7

(8)  OJ C 44, 16.2.2008, p 74.

8

(9)  Towards a common operational European definition of over-indebtedness, a study carried out by the OEE (European Savings Institute), the CEPS (Centre for European Policy Studies) and the PFRC (Personal Finance Research Centre of the University of Bristol) for the European Commission Directorate-General for Employment, Social Affairs and Equal Opportunities.

9

(10)  Austria, Belgium, Bulgaria, the Czech Republic, Finland, France, Germany, Greece, Ireland, Italy, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Portugal, Spain, Sweden and the United Kingdom.

10

(11)  The over-indebtedness of European households: updated mapping of the situation, nature and causes, effects and initiatives for alleviating its impact. Civic Consulting of the Consumer Policy Evaluation Consortium (CPEC), 17.01.2013.

11

(12)  Recommendation Rec(2007)8 of the Committee of Ministers to member states on legal solutions to debt problems. Council of Europe, 20.06.2007.

12

(13)  This definition is derived from the methodology of the European System of Accounts (ESA 95).

13

(14)  OJ C 318, 29.10.2011, p. 24.

14

(15)  These issues are covered by Directive 2011/83/EC on consumer rights (OJ L 304, 22.11.2011, p. 64).

15

(16)  OJ C 44, 16.2.2008, p. 74 and OJ C 318, 29.10.2011, p. 24.

16

(17)  OJ L 133, 22.5.2008, p. 66.

17

(18)  OJ L 376, 27.12.2006, p. 21.

18

(19)  For example, when an advertisement states ‘free credit’, ‘even in the event of litigation’ or ‘even to those on the National Bank register’, when it encourages customers to ‘regroup’, under abusive conditions, loans taken out previously, or stresses the ease or speed with which credit can be granted.

19

(20)  Article L313-3 of the French Consumer Code. In France, usury is an offence punishable with two years' imprisonment and/or a fine of EUR 45  000. In addition, the excessive charges paid have to be refunded and added to the debt principal paid off. If the debt has been paid off in the meantime, the lender must refund the amounts wrongfully paid with interest. There is a usury rate for each financing category. Each quarter, the usury rate is set by the Bank of France and then published in the Official Gazette.

20

(21)  OJ C 271, 19.9.2013, p. 55.

21

(22)  It may be incorporated into the actual procedure and be based on the court decision authorising the procedure (France, Belgium) or it may be a compulsory preliminary, without forming part of the decision (Netherlands).

22

(23)  Sometimes this supervisory role is not provided for but a number of the tasks listed above are carried out by a government department or other government body (département commission in France).

23

département

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III Preparatory acts

EUROPEAN ECONOMIC AND SOCIAL COMMITTEE

498th EESC plenary session, 29 and 30 April 2014

| 12.9.2014 | EN | Official Journal of the European Union | C 311/47 |
| --- | --- | --- | --- |

12.9.2014

EN

Official Journal of the European Union

C 311/47

---

Opinion of the European Economic and Social Committee on the ‘Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — For an European Industrial Renaissance’

COM(2014) 14 final

2014/C 311/07

Rapporteur: Ms Sirkeinen

On 28 January 2014 the European Commission decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — For a European Industrial Renaissance

COM(2014) 14 final.

The Section for the Single Market, Production and Consumption, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 31 March 2014.

At its 498th plenary session, held on 29 and 30 April 2014 (meeting of 29 April), the European Economic and Social Committee adopted the following opinion by 139 votes to one with two abstentions.

1.   Conclusions and recommendations

| 1.1 | The EESC welcomes the communication on industrial renaissance and concludes that:






  — | the challenges facing European industries are not abating, and without a competitive industrial base, Europe will not secure growth and more jobs; |
| --- | --- | --- |

1.1

The EESC welcomes the communication on industrial renaissance and concludes that:

—

the challenges facing European industries are not abating, and without a competitive industrial base, Europe will not secure growth and more jobs;

| — | a stronger set of proposals for EU industrial policy is needed to convince business to invest in the region; |
| --- | --- |

—

a stronger set of proposals for EU industrial policy is needed to convince business to invest in the region;

| — | an inclusive and green economy will be one of the main challenges of the next few years; |
| --- | --- |

—

an inclusive and green economy will be one of the main challenges of the next few years;

| — | the main role for the EU in industrial policy is to mainstream policy areas and to disseminate best practices accordingly; |
| --- | --- |

—

the main role for the EU in industrial policy is to mainstream policy areas and to disseminate best practices accordingly;

| — | the main role for the Member States is to ensure that knowledge, information, transport and energy infrastructures function correctly and efficiently for all; |
| --- | --- |

—

the main role for the Member States is to ensure that knowledge, information, transport and energy infrastructures function correctly and efficiently for all;

| — | the communication reveals much unfinished work and underlines the need for implementation at EU and Member State levels; |
| --- | --- |

—

the communication reveals much unfinished work and underlines the need for implementation at EU and Member State levels;

| — | the Commission is sending an important message on the importance of European industries' integration into international value chains. |
| --- | --- |

—

the Commission is sending an important message on the importance of European industries' integration into international value chains.

| 1.2 | The EESC recommends that the views and proposals presented in the communication be supported and implemented swiftly by the relevant parties. |
| --- | --- |

1.2

The EESC recommends that the views and proposals presented in the communication be supported and implemented swiftly by the relevant parties.

| 1.3 | In addition, the EESC recommends that:






  — | the 20 % target for industry's share of GDP by 2020 be complemented with qualitative aspects, in particular with a view to capturing value added performance at international level; |
| --- | --- | --- |

1.3

In addition, the EESC recommends that:

—

the 20 % target for industry's share of GDP by 2020 be complemented with qualitative aspects, in particular with a view to capturing value added performance at international level;

| — | the goal of greening European industries be accompanied by a strong drive towards more new technology and knowledge-based, higher value-added, competitive industrial and service sectors; |
| --- | --- |

—

the goal of greening European industries be accompanied by a strong drive towards more new technology and knowledge-based, higher value-added, competitive industrial and service sectors;

| — | a key goal of European industrial policy be to enhance European companies' possibilities for achieving key positions in international value networks and to maximise the value capture for Europe; |
| --- | --- |

—

a key goal of European industrial policy be to enhance European companies' possibilities for achieving key positions in international value networks and to maximise the value capture for Europe;

| — | the role of services be given more attention and corresponding policies developed, in particular knowledge-based services in their own right and because of their potential as key drivers of productivity in all business sectors; |
| --- | --- |

—

the role of services be given more attention and corresponding policies developed, in particular knowledge-based services in their own right and because of their potential as key drivers of productivity in all business sectors;

| — | in order to ensure healthy competition to encourage innovation, EU competition and state aid policies should help businesses to further the EU's growth objectives, in particular the relocation of jobs, without distorting competition and a level playing field should be sought world-wide; |
| --- | --- |

—

in order to ensure healthy competition to encourage innovation, EU competition and state aid policies should help businesses to further the EU's growth objectives, in particular the relocation of jobs, without distorting competition and a level playing field should be sought world-wide;

| — | all players, including employees and employers, be involved in creating a favourable, predictable environment for industry, with initiatives based in regions; |
| --- | --- |

—

all players, including employees and employers, be involved in creating a favourable, predictable environment for industry, with initiatives based in regions;

| — | governance structures for EU micro-economic policies be strengthened, with the European Council assuming clear leadership, the Competitiveness Council subjecting other Council formations' decisions to real scrutiny as regards competitiveness and the Commission organising effective mainstreaming of policy proposals; |
| --- | --- |

—

governance structures for EU micro-economic policies be strengthened, with the European Council assuming clear leadership, the Competitiveness Council subjecting other Council formations' decisions to real scrutiny as regards competitiveness and the Commission organising effective mainstreaming of policy proposals;

| — | EU financing for innovation be consistently channelled into the six cross-cutting areas identified by the Commission, taking into account new challenging technologies like big data, robotics and 3D-printing; and |
| --- | --- |

—

EU financing for innovation be consistently channelled into the six cross-cutting areas identified by the Commission, taking into account new challenging technologies like big data, robotics and 3D-printing; and

| — | every reasonable measure be taken to reduce European energy prices. |
| --- | --- |

—

every reasonable measure be taken to reduce European energy prices.

2.   Introduction

| 2.1 | The economic crisis has demonstrated the importance of industry for economic stability, employment, innovation and the international performance of European economies. Industry accounts for over 80 % of Europe's exports and 80 % of private research and innovation. About 15 % of jobs in the EU are in industry; in addition, each industrial job creates up to 1,5- 2 jobs in other sectors. Moreover, industrial jobs are nowadays high-quality jobs and wages are above the average. Industry is not an aim in itself, but a vehicle for employment and for maintaining good standards of living. |
| --- | --- |

2.1

The economic crisis has demonstrated the importance of industry for economic stability, employment, innovation and the international performance of European economies. Industry accounts for over 80 % of Europe's exports and 80 % of private research and innovation. About 15 % of jobs in the EU are in industry; in addition, each industrial job creates up to 1,5- 2 jobs in other sectors. Moreover, industrial jobs are nowadays high-quality jobs and wages are above the average. Industry is not an aim in itself, but a vehicle for employment and for maintaining good standards of living.

| 2.2 | EU industry still generates a large surplus in the global trade of manufactured products and is a world leader in sustainability. However, as shown in the 2013 European Competitiveness report, European industry's share of global manufacturing output has been falling over the last decade. The productivity gap in relation to the USA has again widened. After some recovery in the 2009-11 period, industry's share of EU GDP has slid back down to 15,1 %, far below the target of 20 % by 2020. Since 2008, 3,5 million jobs have been lost. The picture varies considerably, however, between Member States. |
| --- | --- |

2.2

EU industry still generates a large surplus in the global trade of manufactured products and is a world leader in sustainability. However, as shown in the 2013 European Competitiveness report, European industry's share of global manufacturing output has been falling over the last decade. The productivity gap in relation to the USA has again widened. After some recovery in the 2009-11 period, industry's share of EU GDP has slid back down to 15,1 %, far below the target of 20 % by 2020. Since 2008, 3,5 million jobs have been lost. The picture varies considerably, however, between Member States.

| 2.3 | Industrial policy is indeed one of the flagship initiatives of the Europe 2020 Strategy. The EESC issued opinions on the Commission's key proposals in 2010 and 2012
   (1) and has drafted a number of other opinions on different aspects of industrial policy, including sectoral analyses as part of the CCIC's (EESC Consultative Committee on Industrial Change) (2) work, currently on industrial reshoring and youth employability. This opinion builds on those earlier opinions and complements them. |
| --- | --- |

2.3

Industrial policy is indeed one of the flagship initiatives of the Europe 2020 Strategy. The EESC issued opinions on the Commission's key proposals in 2010 and 2012
   (1) and has drafted a number of other opinions on different aspects of industrial policy, including sectoral analyses as part of the CCIC's (EESC Consultative Committee on Industrial Change) (2) work, currently on industrial reshoring and youth employability. This opinion builds on those earlier opinions and complements them.

| 2.4 | The Commission communication sets out the Commission's key priorities for industrial policy as a contribution to the European Council debate on industrial policy, scheduled for March 2014. It provides an overview of action already taken and puts forward some new measures to speed up attainment of these priorities. It shows that industrial policy and other EU policies are becoming increasingly integrated, and indicates why this mainstreaming process must continue. |
| --- | --- |

2.4

The Commission communication sets out the Commission's key priorities for industrial policy as a contribution to the European Council debate on industrial policy, scheduled for March 2014. It provides an overview of action already taken and puts forward some new measures to speed up attainment of these priorities. It shows that industrial policy and other EU policies are becoming increasingly integrated, and indicates why this mainstreaming process must continue.

3.   General comments

| 3.1 | The EESC welcomes the Commission's communication, coming as it does against the backdrop of economic crisis and increasing concern about the competitiveness of European industries. The challenges facing industry are not dwindling — quite the opposite. The global business environment is continually changing, and at an ever faster pace that our companies need to be able to respond to. Without competitive industry, Europe will not be able to secure higher growth and more jobs. Also, an approach which depends on design and engineering functions only, without production and end customer contacts, is not likely to be successful in the long run. |
| --- | --- |

3.1

The EESC welcomes the Commission's communication, coming as it does against the backdrop of economic crisis and increasing concern about the competitiveness of European industries. The challenges facing industry are not dwindling — quite the opposite. The global business environment is continually changing, and at an ever faster pace that our companies need to be able to respond to. Without competitive industry, Europe will not be able to secure higher growth and more jobs. Also, an approach which depends on design and engineering functions only, without production and end customer contacts, is not likely to be successful in the long run.

| 3.2 | In light of the serious situation, the EESC would have expected a stronger set of proposals for EU industrial policy with a clear vision and urgent measures. Clear messages are needed to convince businesses that Europe will be an attractive region for new investments in the future. The communication now covers few new features compared with the 2010 and 2012 communications. It is mainly a stocktaking of past and planned action in the main priority areas of industrial policy, as set out above. This reveals much unfinished work and underlines the need for implementation at both EU and Member State levels. |
| --- | --- |

3.2

In light of the serious situation, the EESC would have expected a stronger set of proposals for EU industrial policy with a clear vision and urgent measures. Clear messages are needed to convince businesses that Europe will be an attractive region for new investments in the future. The communication now covers few new features compared with the 2010 and 2012 communications. It is mainly a stocktaking of past and planned action in the main priority areas of industrial policy, as set out above. This reveals much unfinished work and underlines the need for implementation at both EU and Member State levels.

| 3.3 | The EESC supports the communication's conclusions, including the 20 % target for industry's share of GDP, although it would qualify its support for this: the 20 % target is purely quantitative, while it would be more in line with EU aspirations for socially and environmentally sustainable competitiveness to add qualitative aspects. The 20 % target should be accompanied by other targets, which the EESC calls on the Commission to explore further, in particular reflecting issues which will provide added value in an international context. |
| --- | --- |

3.3

The EESC supports the communication's conclusions, including the 20 % target for industry's share of GDP, although it would qualify its support for this: the 20 % target is purely quantitative, while it would be more in line with EU aspirations for socially and environmentally sustainable competitiveness to add qualitative aspects. The 20 % target should be accompanied by other targets, which the EESC calls on the Commission to explore further, in particular reflecting issues which will provide added value in an international context.

| 3.4 | The EESC particularly welcomes the Commission's clear message on the importance of European companies' integration into international value chains. In reality the highly specialised, very complex and dynamic nature of industrial activities today could be better described as value networks. Companies are globally competing for key positions in these networks. The goal of European industrial policy should be to enhance European companies' possibilities for achieving such key positions and to maximise the value capture for Europe. Policies and targets should be designed accordingly. |
| --- | --- |

3.4

The EESC particularly welcomes the Commission's clear message on the importance of European companies' integration into international value chains. In reality the highly specialised, very complex and dynamic nature of industrial activities today could be better described as value networks. Companies are globally competing for key positions in these networks. The goal of European industrial policy should be to enhance European companies' possibilities for achieving such key positions and to maximise the value capture for Europe. Policies and targets should be designed accordingly.

| 3.5 | The Committee feels that building an inclusive and green economy will be the main challenge of the next few years. Greening European industry and making the transition to a low-carbon and environmentally resource-efficient economy by 2050, on the basis of a new industrial policy, are necessary as a priority. What Europe needs, however, in order for such a transition to succeed, is a move towards more knowledge-based and new technology-based, higher value-added, innovative, competitive and sustainable industrial and service sectors that are financed by an ambitious investment plan, if it wishes to guarantee industrial growth and job creation. |
| --- | --- |

3.5

The Committee feels that building an inclusive and green economy will be the main challenge of the next few years. Greening European industry and making the transition to a low-carbon and environmentally resource-efficient economy by 2050, on the basis of a new industrial policy, are necessary as a priority. What Europe needs, however, in order for such a transition to succeed, is a move towards more knowledge-based and new technology-based, higher value-added, innovative, competitive and sustainable industrial and service sectors that are financed by an ambitious investment plan, if it wishes to guarantee industrial growth and job creation.

| 3.6 | Meeting and filling unmet needs in society together with competition drives innovation, and all companies in the internal market, regardless of business model, should have the same conditions under which to compete. In the EESC's view, competition between Member States in offering state aid must be avoided. One of the aims of state aid policy should be to make provision for the granting of pre-competitive aid to businesses that can further the EU's growth objectives whilst limiting distortions of competition. If and when state aid is provided, it should be directed at helping companies to develop and adapt, not at supporting permanently uncompetitive activities. A level playing field is also needed in global markets, in particular for energy-intensive industries. |
| --- | --- |

3.6

Meeting and filling unmet needs in society together with competition drives innovation, and all companies in the internal market, regardless of business model, should have the same conditions under which to compete. In the EESC's view, competition between Member States in offering state aid must be avoided. One of the aims of state aid policy should be to make provision for the granting of pre-competitive aid to businesses that can further the EU's growth objectives whilst limiting distortions of competition. If and when state aid is provided, it should be directed at helping companies to develop and adapt, not at supporting permanently uncompetitive activities. A level playing field is also needed in global markets, in particular for energy-intensive industries.

| 3.7 | The role of services deserves more attention. The interdependence of services and manufacturing is broadly recognised, as industrial activities include an increasing number of elements of service provision, and many services are dependent on industrial performance. However the potential of knowledge-based and ICT services as exporting industries in their own right, as well as their implementation in all business sectors as key drivers of productivity, is enormous. Specific policies should be developed to help tap this potential. |
| --- | --- |

3.7

The role of services deserves more attention. The interdependence of services and manufacturing is broadly recognised, as industrial activities include an increasing number of elements of service provision, and many services are dependent on industrial performance. However the potential of knowledge-based and ICT services as exporting industries in their own right, as well as their implementation in all business sectors as key drivers of productivity, is enormous. Specific policies should be developed to help tap this potential.

| 3.8 | All actors — EU institutions, Member States, regions, employees and employers and other stakeholders — need to be involved in the complex task of creating a more favourable environment for industry. Initiatives should be built on regional specialities that complement each other and interact fruitfully. The policy framework must be stable and predictable, including national legislation in areas such as taxation. |
| --- | --- |

3.8

All actors — EU institutions, Member States, regions, employees and employers and other stakeholders — need to be involved in the complex task of creating a more favourable environment for industry. Initiatives should be built on regional specialities that complement each other and interact fruitfully. The policy framework must be stable and predictable, including national legislation in areas such as taxation.

| 3.9 | The EESC calls for stronger governance structures for micro-economic policies. The European Council should assume clear strategic leadership here. The Competitiveness Council's role should be stronger and it should subject industry-related decisions by other Council formations to real scrutiny as regards competitiveness. The Commission should ensure the mainstreaming of its work by effective managerial solutions. Member States must consistently implement joint decisions, and industrial policy issues must be fully integrated into the European Semester, including the issuance of country-specific recommendations. |
| --- | --- |

3.9

The EESC calls for stronger governance structures for micro-economic policies. The European Council should assume clear strategic leadership here. The Competitiveness Council's role should be stronger and it should subject industry-related decisions by other Council formations to real scrutiny as regards competitiveness. The Commission should ensure the mainstreaming of its work by effective managerial solutions. Member States must consistently implement joint decisions, and industrial policy issues must be fully integrated into the European Semester, including the issuance of country-specific recommendations.

4.   Specific comments to policy areas

4.1   An integrated, single European market

| 4.1.1 | A central role for governments is to ensure the provision of and access to first class transport, information and energy networks for all
  , corresponding to the developing needs of society, including businesses. Timely features in this area, acknowledged by the Commission, are infrastructures linked to space technology, the convergence of information and energy networks, and for the distribution of alternative fuels. |
| --- | --- |

4.1.1

A central role for governments is to ensure the provision of and access to first class transport, information and energy networks for all
  , corresponding to the developing needs of society, including businesses. Timely features in this area, acknowledged by the Commission, are infrastructures linked to space technology, the convergence of information and energy networks, and for the distribution of alternative fuels.

| 4.1.2 | Borders within the EU should not make any difference to the operation of and access to infrastructures. Remaining regulatory, administrative and technical barriers need to be removed. EU and national financial sources should be channelled into necessary investments in this area, mobilising a maximum of private funding. |
| --- | --- |

4.1.2

Borders within the EU should not make any difference to the operation of and access to infrastructures. Remaining regulatory, administrative and technical barriers need to be removed. EU and national financial sources should be channelled into necessary investments in this area, mobilising a maximum of private funding.

| 4.1.3 | The EESC agrees with the Commission that pending internal market legislative proposals urgently need to be adopted. Member States are still not implementing and enforcing the legislative framework properly, challenging the Commission to take justifiable further action on non-compliance. |
| --- | --- |

4.1.3

The EESC agrees with the Commission that pending internal market legislative proposals urgently need to be adopted. Member States are still not implementing and enforcing the legislative framework properly, challenging the Commission to take justifiable further action on non-compliance.

4.2   Investing in innovation and new technologies

| 4.2.1 | In previous opinions on industrial policy, the EESC has given its views on EU initiatives for innovation and new technologies, mainly expressing its firm support for them and underlining the need for sufficient EU, Member State and private financing. |
| --- | --- |

4.2.1

In previous opinions on industrial policy, the EESC has given its views on EU initiatives for innovation and new technologies, mainly expressing its firm support for them and underlining the need for sufficient EU, Member State and private financing.

| 4.2.2 | The EESC has, in particular, supported the Commission's choice of and action on the six strategic, cross-cutting areas in advanced manufacturing: key enabling technologies, bio-based products, clean vehicles and vessels, sustainable construction and raw materials, smart grids and digital infrastructure. New technologies with great potential that need attention include robotics, big data, 3D-printing, the industrial internet and industrial design. EU financial resources, such as Horizon 2020 and regional funding, should be consistently channelled into innovation in these areas. The EESC also calls for quicker implementation of the Knowledge and Innovation Community for value-added manufacturing. |
| --- | --- |

4.2.2

The EESC has, in particular, supported the Commission's choice of and action on the six strategic, cross-cutting areas in advanced manufacturing: key enabling technologies, bio-based products, clean vehicles and vessels, sustainable construction and raw materials, smart grids and digital infrastructure. New technologies with great potential that need attention include robotics, big data, 3D-printing, the industrial internet and industrial design. EU financial resources, such as Horizon 2020 and regional funding, should be consistently channelled into innovation in these areas. The EESC also calls for quicker implementation of the Knowledge and Innovation Community for value-added manufacturing.

| 4.2.3 | The time period involved in bringing innovation to the market for deployment is of the utmost importance for industrial competitiveness. Strengthening the venture capital facility and other EIB risk-sharing capabilities, as well as making innovative use of structural funds are examples of much-needed EU measures to attract private investment in risky research projects. |
| --- | --- |

4.2.3

The time period involved in bringing innovation to the market for deployment is of the utmost importance for industrial competitiveness. Strengthening the venture capital facility and other EIB risk-sharing capabilities, as well as making innovative use of structural funds are examples of much-needed EU measures to attract private investment in risky research projects.

4.3   Access to finance

| 4.3.1 | Despite the improving economic climate, companies' access to bank credit remains limited, especially for SMEs. The EESC therefore supports EU efforts in this area: the creation of the Banking Union, the SME finance initiative, the capital requirement regulation, MiFID, the revised transparency directive and measures to enhance the pan-European venture capital market. |
| --- | --- |

4.3.1

Despite the improving economic climate, companies' access to bank credit remains limited, especially for SMEs. The EESC therefore supports EU efforts in this area: the creation of the Banking Union, the SME finance initiative, the capital requirement regulation, MiFID, the revised transparency directive and measures to enhance the pan-European venture capital market.

| 4.3.2 | In order to improve the lending capacity of banks, the EU should strike the right balance between increasing financial stability and supporting companies' need for finance. Moreover, regulatory measures targeting the financial sector should not impede private lending. |
| --- | --- |

4.3.2

In order to improve the lending capacity of banks, the EU should strike the right balance between increasing financial stability and supporting companies' need for finance. Moreover, regulatory measures targeting the financial sector should not impede private lending.

| 4.3.3 | SMEs in the EU are more dependent on bank financing than elsewhere. Efforts at both EU and national level should expand diversification of corporate financing to other sources like equity funds, venture capital and corporate guarantees, as well as hybrid funding methods. A plan with a life-cycle approach to financing must be developed, identifying innovative instruments. |
| --- | --- |

4.3.3

SMEs in the EU are more dependent on bank financing than elsewhere. Efforts at both EU and national level should expand diversification of corporate financing to other sources like equity funds, venture capital and corporate guarantees, as well as hybrid funding methods. A plan with a life-cycle approach to financing must be developed, identifying innovative instruments.

4.4   Energy

| 4.4.1 | The EESC is pleased to note that the Commission recognises the importance of energy prices for industrial competitiveness. European energy prices for industry are far higher than those of its main competitors: electricity prices are twice as high as those in the USA and Russia and 20 % higher than in China. Gas prices are three to four times those in the USA, Russia and India and 12 % higher than in China. |
| --- | --- |

4.4.1

The EESC is pleased to note that the Commission recognises the importance of energy prices for industrial competitiveness. European energy prices for industry are far higher than those of its main competitors: electricity prices are twice as high as those in the USA and Russia and 20 % higher than in China. Gas prices are three to four times those in the USA, Russia and India and 12 % higher than in China.

| 4.4.2 | The energy price gap between the EU and its competitors stems partly from factors that cannot be changed by policy action in the EU. However, every reasonable measure to narrow the gap must be taken, in particular with a view to restoring energy-intensive production sectors and jobs in Europe. EU industries have so far managed to partly compensate for energy cost increases by improving efficiency, but the potential for this is diminishing. |
| --- | --- |

4.4.2

The energy price gap between the EU and its competitors stems partly from factors that cannot be changed by policy action in the EU. However, every reasonable measure to narrow the gap must be taken, in particular with a view to restoring energy-intensive production sectors and jobs in Europe. EU industries have so far managed to partly compensate for energy cost increases by improving efficiency, but the potential for this is diminishing.

| 4.4.3 | Security of energy supply is crucial for all industries. At this time, we are being seriously reminded of the need to decrease dependence on energy from unstable and unreliable sources. A diversified energy mix, as decided by Member States acting in cooperation and in compliance with environmental commitments, is a matter of strong common interest for the EU. |
| --- | --- |

4.4.3

Security of energy supply is crucial for all industries. At this time, we are being seriously reminded of the need to decrease dependence on energy from unstable and unreliable sources. A diversified energy mix, as decided by Member States acting in cooperation and in compliance with environmental commitments, is a matter of strong common interest for the EU.

| 4.4.4 | Some energy policy measures, in particular to increase the use of renewable energy sources, have had the additional objective of creating new jobs. According to information so far available, this does not seem to have materialised: existing studies mainly point to a neutral or small positive net impact on jobs, while job structures are changing drastically. |
| --- | --- |

4.4.4

Some energy policy measures, in particular to increase the use of renewable energy sources, have had the additional objective of creating new jobs. According to information so far available, this does not seem to have materialised: existing studies mainly point to a neutral or small positive net impact on jobs, while job structures are changing drastically.

4.5   Raw materials and resource efficiency

| 4.5.1 | The EESC supports the Commission's intentions on raw materials diplomacy and its plans to eliminate price distortions on inputs for industry. |
| --- | --- |

4.5.1

The EESC supports the Commission's intentions on raw materials diplomacy and its plans to eliminate price distortions on inputs for industry.

| 4.5.2 | Exploration and exploitation of raw materials within the EU should be stepped up and relevant regulation harmonised. As for legislative initiatives on resource efficiency and waste, they should be designed carefully in order to deliver optimal results while avoiding unnecessary cost burdens (in the short term) for companies. Policy neutrality in access to biomass is needed for efficient application of the cascade principle in the use of biomass. |
| --- | --- |

4.5.2

Exploration and exploitation of raw materials within the EU should be stepped up and relevant regulation harmonised. As for legislative initiatives on resource efficiency and waste, they should be designed carefully in order to deliver optimal results while avoiding unnecessary cost burdens (in the short term) for companies. Policy neutrality in access to biomass is needed for efficient application of the cascade principle in the use of biomass.

4.6   Upgrading skills and facilitating industrial change

| 4.6.1 | Five million young people are unemployed in Europe today, while we have two million vacancies in the labour market. Skills mismatches and training issues are at the top of the industrial policy agenda. |
| --- | --- |

4.6.1

Five million young people are unemployed in Europe today, while we have two million vacancies in the labour market. Skills mismatches and training issues are at the top of the industrial policy agenda.

| 4.6.2 | The number and quality of science, technology, engineering and mathematics graduates at all levels needs to be boosted and access to these sectors and professions for women of all ages should be vigorously encouraged. |
| --- | --- |

4.6.2

The number and quality of science, technology, engineering and mathematics graduates at all levels needs to be boosted and access to these sectors and professions for women of all ages should be vigorously encouraged.

| 4.6.3 | Apprenticeships and, for instance, dual learning systems clearly contribute to skill profiles linked to real job market needs. Best practice needs to be explored by Member States and social partners, and also applied, including efficient models for cross-border apprenticeships. |
| --- | --- |

4.6.3

Apprenticeships and, for instance, dual learning systems clearly contribute to skill profiles linked to real job market needs. Best practice needs to be explored by Member States and social partners, and also applied, including efficient models for cross-border apprenticeships.

| 4.6.4 | The EU, Member States and social partners can bring progress to industry on new technologies and innovations only if they establish policies aimed at improving workers' knowledge and develop life-long learning with a view to rewarding them for their investment. Recognition of skills and qualifications and the improvement of working conditions are essential to worker’s involvement. Enhanced social dialogue should play an essential role in European industrial renaissance. |
| --- | --- |

4.6.4

The EU, Member States and social partners can bring progress to industry on new technologies and innovations only if they establish policies aimed at improving workers' knowledge and develop life-long learning with a view to rewarding them for their investment. Recognition of skills and qualifications and the improvement of working conditions are essential to worker’s involvement. Enhanced social dialogue should play an essential role in European industrial renaissance.

4.7   SMEs and entrepreneurship

| 4.7.1 | The EESC continues to strongly support the EU's efforts to enhance SMEs, including the multitude of business models, making ‘think small first’ a reality. The Small Business Act needs to be not just updated but renewed and expanded to address remaining barriers to development and growth. These reforms should be linked to the European Semester. |
| --- | --- |

4.7.1

The EESC continues to strongly support the EU's efforts to enhance SMEs, including the multitude of business models, making ‘think small first’ a reality. The Small Business Act needs to be not just updated but renewed and expanded to address remaining barriers to development and growth. These reforms should be linked to the European Semester.

| 4.7.2 | The profound and far-reaching ‘billion euro’ question is, actually, how to change the European mind-set, shifting it towards valuing entrepreneurship and risk-taking. |
| --- | --- |

4.7.2

The profound and far-reaching ‘billion euro’ question is, actually, how to change the European mind-set, shifting it towards valuing entrepreneurship and risk-taking.

| 4.7.3 | In the view of the EESC, measures to reduce regulatory and administrative costs, in particular the REFIT programme, as well as to eliminate impediments to the growth of businesses, should be carried out without detriment to regulations protecting consumers, the environment and the health and safety of workers and of their information and consultation, and should comply with agreements concluded as part of the social dialogue. |
| --- | --- |

4.7.3

In the view of the EESC, measures to reduce regulatory and administrative costs, in particular the REFIT programme, as well as to eliminate impediments to the growth of businesses, should be carried out without detriment to regulations protecting consumers, the environment and the health and safety of workers and of their information and consultation, and should comply with agreements concluded as part of the social dialogue.

| 4.7.4 | Cooperation networks and clusters could offer the means for SMEs to grow, as pointed out by the Commission. The approach should cover all sectors, all sizes of businesses, and cross-European as well as international value chains. |
| --- | --- |

4.7.4

Cooperation networks and clusters could offer the means for SMEs to grow, as pointed out by the Commission. The approach should cover all sectors, all sizes of businesses, and cross-European as well as international value chains.

4.8   Internationalisation of EU firms

| 4.8.1 | The EESC supports Commission action to secure access to major international markets for EU firms. An ambitious agenda of FTA and other trade negotiations, in the spirit of reciprocity, should be consistently pursued, in particular with the EU's biggest trading partner, the USA, and between the EU and southern Mediterranean countries and countries of the Eastern partnership. |
| --- | --- |

4.8.1

The EESC supports Commission action to secure access to major international markets for EU firms. An ambitious agenda of FTA and other trade negotiations, in the spirit of reciprocity, should be consistently pursued, in particular with the EU's biggest trading partner, the USA, and between the EU and southern Mediterranean countries and countries of the Eastern partnership.

| 4.8.2 | Bilateral and multilateral instruments should be used to ensure that the EU's main trading partners enforce their international commitments. |
| --- | --- |

4.8.2

Bilateral and multilateral instruments should be used to ensure that the EU's main trading partners enforce their international commitments.

| 4.8.3 | Industrial standards in different economic regions differ widely, creating obstacles to trade and more generally impeding a level playing field. Provided that the fundamental requirements for health, safety, environmental protection and consumer protection contained in Article 114 TFEU are met, the EESC supports the promotion of international standards and regulatory cooperation as well as action, including market oversight, to ensure that EU companies can uphold their industrial property rights. The communication could have been more concrete on measures in this respect. |
| --- | --- |

4.8.3

Industrial standards in different economic regions differ widely, creating obstacles to trade and more generally impeding a level playing field. Provided that the fundamental requirements for health, safety, environmental protection and consumer protection contained in Article 114 TFEU are met, the EESC supports the promotion of international standards and regulatory cooperation as well as action, including market oversight, to ensure that EU companies can uphold their industrial property rights. The communication could have been more concrete on measures in this respect.

Brussels, 29 April 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

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(1)  OJ C 327, 12.11.2013, p.33, OJ C 327, 12.11.2013, p. 1, OJ C 181, 21.6.2012, p. 125.

1

(2)  OJ C 198, 10.7.2013, p. 45, OJ C 299, 4.10.2012, p. 54, OJ C 327, 12.11.2013, p. 82.

2

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APPENDIX

to the opinion of the European Economic and Social Committee

The following amendment, which received at least a quarter of the votes cast, was rejected in the course of the debate (Rule 39(2) of the Rules of Procedure):

Point 3.5

Amend as follows:

| ‘3.5 | The Committee feels that building an
  competitive inclusive and green economy will be the main challenge of the next few years. Greening European industry and making the transition to a low-carbon and environmentally resource-efficient economy by 2050, on the basis of a new industrial policy, are necessary as
  is a priority. What Europe needs, however, in order for such a transition to succeed, is a move towards more knowledge-based and new technology-based, higher value-added, innovative, competitive and sustainable industrial and service sectors that are financed by an ambitious investment plan, if it wishes to guarantee industrial growth and job creation. These ambitious objectives require all the more effective framework conditions for investments.
  ’ |
| --- | --- |

‘3.5

Reasons

Reasons

| 1) | If the economy is not competitive, it will not be sustainable environmentally or otherwise. In order for the economy to generate enough resources to sustain a prosperous, inclusive and green society it is necessary to be globally competitive. |
| --- | --- |

1)

If the economy is not competitive, it will not be sustainable environmentally or otherwise. In order for the economy to generate enough resources to sustain a prosperous, inclusive and green society it is necessary to be globally competitive.

| 2) | Stylistic change. |
| --- | --- |

2)

Stylistic change.

| 3) | The transition of our productive sectors to more value-added segments etc. is important not only for greening but necessary to safeguard a prosperous future for Europe also in other regards. |
| --- | --- |

3)

The transition of our productive sectors to more value-added segments etc. is important not only for greening but necessary to safeguard a prosperous future for Europe also in other regards.

| 4) | Industrial policy is not, and should not be, about public investment plans. Instead it should be a set of measures creating a business climate which attracts private investments on market terms. Experience, not least from my own country in the 1970s, show that large public investment and ‘pick-the-winner’ schemes for industry tend to be costly to tax payers without any long-term benefits. |
| --- | --- |

4)

Industrial policy is not, and should not be, about public investment plans. Instead it should be a set of measures creating a business climate which attracts private investments on market terms. Experience, not least from my own country in the 1970s, show that large public investment and ‘pick-the-winner’ schemes for industry tend to be costly to tax payers without any long-term benefits.

Voting

Voting

| For | : | 41 |
| --- | --- | --- |
| Against | : | 81 |
| Abstentions | : | 11 |

For

:

41

Against

:

81

Abstentions

:

11

---

| 12.9.2014 | EN | Official Journal of the European Union | C 311/55 |
| --- | --- | --- | --- |

12.9.2014

EN

Official Journal of the European Union

C 311/55

---

Opinion of the European Economic and Social Committee on the ‘Proposal for a Regulation of the European Parliament and of the Council amending Regulations (EC) No 715/2007 and (EC) No 595/2009 as regards the reduction of pollutant emissions from road vehicles’

COM(2014) 28 final — 2014/0012 (COD)

2014/C 311/08

Rapporteur-General: Virgilio Ranocchiari

On 6 and 18 February 2014 respectively, the European Parliament and the Council decided to consult the European Economic and Social Committee, under Article 114 of the Treaty on the Functioning of the European Union, on the

Proposal for a Regulation of the European Parliament and of the Council amending Regulations (EC) No 715/2007 and (EC) No 595/2009 as regards the reduction of pollutant emissions from road vehicles

COM(2014) 28 final — 2014/0012 (COD).

Given the urgent nature of the work, the European Economic and Social Committee appointed Mr Ranocchiari as rapporteur-general at its 498th plenary session, held on 29 and 30 April (meeting of 29 April), and adopted the following opinion by 158 votes to 2 with 5 abstentions.

1.   Conclusions and recommendations

| 1.1 | The EESC has always supported any measures that, also in the light of technological developments, contribute to reducing pollutant emissions and, more generally, to improving air quality. |
| --- | --- |

1.1

The EESC has always supported any measures that, also in the light of technological developments, contribute to reducing pollutant emissions and, more generally, to improving air quality.

| 1.2 | The proposal under consideration nevertheless raises a number of concerns with respect to the method and timeframes for achieving these reductions, as explained further on in the opinion. |
| --- | --- |

1.2

The proposal under consideration nevertheless raises a number of concerns with respect to the method and timeframes for achieving these reductions, as explained further on in the opinion.

| 1.3 | In particular, the EESC notes the lack, or sometimes total absence, of an adequate impact assessment on some of the measures envisaged. These shortcomings and omissions are in stark contradiction with the principle of ‘smart regulation’ so often reiterated in the context of these and other issues of considerable social, economic and environmental importance. |
| --- | --- |

1.3

In particular, the EESC notes the lack, or sometimes total absence, of an adequate impact assessment on some of the measures envisaged. These shortcomings and omissions are in stark contradiction with the principle of ‘smart regulation’ so often reiterated in the context of these and other issues of considerable social, economic and environmental importance.

| 1.4 | Similar concerns are raised by the overuse of delegated acts for matters that, given their importance, cannot possibly be perceived as ‘non-essential elements’ of a regulation and, therefore, as falling into the category of delegated acts. |
| --- | --- |

1.4

Similar concerns are raised by the overuse of delegated acts for matters that, given their importance, cannot possibly be perceived as ‘non-essential elements’ of a regulation and, therefore, as falling into the category of delegated acts.

| 1.5 | The EESC therefore recommends:






  — | not using delegated acts in cases where the findings of studies already carried out by the Commission or UNECE (1) make it possible to apply the envisaged measures immediately (e.g. raising the mass for certain light vehicles and excluding gas-fuelled vehicles from the measurement of ammonia). |
| --- | --- | --- |

1.5

The EESC therefore recommends:

—

not using delegated acts in cases where the findings of studies already carried out by the Commission or UNECE (1) make it possible to apply the envisaged measures immediately (e.g. raising the mass for certain light vehicles and excluding gas-fuelled vehicles from the measurement of ammonia).

| — | carrying out clear and detailed impact assessments for all the other measures envisaged that are lacking in this respect, but which are nevertheless to be developed through delegated acts. |
| --- | --- |

—

carrying out clear and detailed impact assessments for all the other measures envisaged that are lacking in this respect, but which are nevertheless to be developed through delegated acts.

| 1.6 | As suggested above, the EESC believes that this would enable the co-legislators to carry out a more informed, comprehensive and transparent assessment of the proposal, which would at least alleviate, if not obviate, the abovementioned concerns. |
| --- | --- |

1.6

As suggested above, the EESC believes that this would enable the co-legislators to carry out a more informed, comprehensive and transparent assessment of the proposal, which would at least alleviate, if not obviate, the abovementioned concerns.

2.   The Commission proposal

| 2.1 | The purpose of this proposal is to introduce a number of amendments to two regulations in force:






  — | Regulation (EC) No 715/2007 on type approval of motor vehicles with respect to emissions from light passenger and commercial vehicles (Euro 5 and Euro 6); |
| --- | --- | --- |

2.1

The purpose of this proposal is to introduce a number of amendments to two regulations in force:

—

Regulation (EC) No 715/2007 on type approval of motor vehicles with respect to emissions from light passenger and commercial vehicles (Euro 5 and Euro 6);

| — | Regulation (EC) No 595/2009 on type-approval of motor vehicles and engines with respect to emissions from heavy duty vehicles (Euro VI). |
| --- | --- |

—

Regulation (EC) No 595/2009 on type-approval of motor vehicles and engines with respect to emissions from heavy duty vehicles (Euro VI).

| 2.2 | Through this proposal, the Commission seeks to reduce pollutant emissions, and to introduce a number of provisions to simplify the legislation in force. |
| --- | --- |

2.2

Through this proposal, the Commission seeks to reduce pollutant emissions, and to introduce a number of provisions to simplify the legislation in force.

| 2.3 | With regard to light passenger and commercial vehicles (LD vehicles), the most important changes are set out below. |
| --- | --- |

2.3

| 2.3.1 | Methane will be added to the current evaluation of CO2 emissions, which will now constitute new information, expressed as the total mass of CO2 equivalents. This measure would also enable a review of the total hydrocarbons (THC) emission limits which currently include methane (CH4) emissions and non-methane hydrocarbons (NMHC), thus deregulating the specific evaluation of methane emissions. This should facilitate the market entry of natural gas vehicles, for which compliance with THC limits would otherwise be difficult. |
| --- | --- |

2.3.1

Methane will be added to the current evaluation of CO2 emissions, which will now constitute new information, expressed as the total mass of CO2 equivalents. This measure would also enable a review of the total hydrocarbons (THC) emission limits which currently include methane (CH4) emissions and non-methane hydrocarbons (NMHC), thus deregulating the specific evaluation of methane emissions. This should facilitate the market entry of natural gas vehicles, for which compliance with THC limits would otherwise be difficult.

| 2.3.2 | The limits for tailpipe emissions at cold temperatures (Euro 6) will be revised. |
| --- | --- |

2.3.2

The limits for tailpipe emissions at cold temperatures (Euro 6) will be revised.

| 2.3.3 | A separate limit value for emissions of NO2 (nitrogen dioxide), hitherto included as a share of total nitrogen oxide emissions (NOx), will be established. |
| --- | --- |

2.3.3

A separate limit value for emissions of NO2 (nitrogen dioxide), hitherto included as a share of total nitrogen oxide emissions (NOx), will be established.

| 2.3.4 | The method for measuring particulate matter will be reviewed and will also introduce a new cap on the number of particles it is composed of. |
| --- | --- |

2.3.4

The method for measuring particulate matter will be reviewed and will also introduce a new cap on the number of particles it is composed of.

| 2.3.5 | The provisions on access to vehicle repair and maintenance information will be revised, with special attention to the specific needs of SMEs. |
| --- | --- |

2.3.5

The provisions on access to vehicle repair and maintenance information will be revised, with special attention to the specific needs of SMEs.

| 2.4 | The most important changes for heavy duty vehicles (HD vehicles) are as follows. |
| --- | --- |

2.4

| 2.4.1 | The maximum mass limit will be redefined in order to extend the application of legislation concerning LD vehicle emissions (Regulation (EC) No 715/2007) to vehicles which, due to their equipment variants, could be covered by both LD and HD vehicle legislation, to avoid the need for double emissions certification for the same vehicle. This would enable these vehicles to reach a Gross Vehicle Mass (GVM) of 5  000kg without lowering the level of environmental protection. |
| --- | --- |

2.4.1

The maximum mass limit will be redefined in order to extend the application of legislation concerning LD vehicle emissions (Regulation (EC) No 715/2007) to vehicles which, due to their equipment variants, could be covered by both LD and HD vehicle legislation, to avoid the need for double emissions certification for the same vehicle. This would enable these vehicles to reach a Gross Vehicle Mass (GVM) of 5  000kg without lowering the level of environmental protection.

| 2.4.2 | The emission limit set for ammonia (NH3) currently applies to all HD vehicles. In fact, the risk of ammonia slip (ammonia used in emission control systems) concerns diesel vehicles which use these particular systems. Engines that run on petrol or natural gas do not present this risk and the Commission intends to remove this limit for the undoubtedly more ecological CNG-fuelled buses and HD vehicles (i.e. powered by compressed natural gas), which would otherwise be subject to significant and unnecessary additional costs. |
| --- | --- |

2.4.2

The emission limit set for ammonia (NH3) currently applies to all HD vehicles. In fact, the risk of ammonia slip (ammonia used in emission control systems) concerns diesel vehicles which use these particular systems. Engines that run on petrol or natural gas do not present this risk and the Commission intends to remove this limit for the undoubtedly more ecological CNG-fuelled buses and HD vehicles (i.e. powered by compressed natural gas), which would otherwise be subject to significant and unnecessary additional costs.

| 2.5 | In order to achieve this, the Commission has requested the power to adopt delegated acts for an indeterminate period of time from the date of the regulation's entry into force. |
| --- | --- |

2.5

In order to achieve this, the Commission has requested the power to adopt delegated acts for an indeterminate period of time from the date of the regulation's entry into force.

3.   General comments

| 3.1 | The EESC cannot but express its doubts regarding this proposal's form and the arrangements and timeframe for its implementation. |
| --- | --- |

3.1

The EESC cannot but express its doubts regarding this proposal's form and the arrangements and timeframe for its implementation.

| 3.2 | First of all, the very structure of the regulation, which merges the various legislative amendments for LD and HD vehicles into a single act, does not reflect the tenets of ‘smart and transparent regulation’, which was one of the key commitments set out in CARS 21 (2) and reiterated in CARS 2020, for which work is still in progress (3). |
| --- | --- |

3.2

First of all, the very structure of the regulation, which merges the various legislative amendments for LD and HD vehicles into a single act, does not reflect the tenets of ‘smart and transparent regulation’, which was one of the key commitments set out in CARS 21 (2) and reiterated in CARS 2020, for which work is still in progress (3).

| 3.3 | There are many cases where the impact assessment accompanying the proposal would appear to be lacking or altogether absent from the proposed measures, which will however have a significant impact on the price of vehicles. |
| --- | --- |

3.3

There are many cases where the impact assessment accompanying the proposal would appear to be lacking or altogether absent from the proposed measures, which will however have a significant impact on the price of vehicles.

| 3.4 | Once again, the Commission has requested the power to adopt delegated acts (about ten) in accordance with Article 290 of the TFEU and, in so doing, reduces the practical content of the legislative act, i.e. the regulation. |
| --- | --- |

3.4

Once again, the Commission has requested the power to adopt delegated acts (about ten) in accordance with Article 290 of the TFEU and, in so doing, reduces the practical content of the legislative act, i.e. the regulation.

| 3.4.1 | It should be added that some of the issues in the proposal for which the use of delegated acts is envisaged concern vehicle emissions and their limits. These issues have always been decided by the co-legislator precisely because of their importance and it is difficult to see how they can be considered as ‘non-essential elements’ of a regulation and, therefore, as falling into the category of delegated acts. |
| --- | --- |

3.4.1

It should be added that some of the issues in the proposal for which the use of delegated acts is envisaged concern vehicle emissions and their limits. These issues have always been decided by the co-legislator precisely because of their importance and it is difficult to see how they can be considered as ‘non-essential elements’ of a regulation and, therefore, as falling into the category of delegated acts.

| 3.4.2 | The EESC has often pointed out in its opinions that delegated acts are used far too frequently and summed up the problems this created in a recent report (4) which drew attention to the Commission's increasing leeway in this area, questioning the transparency of the system, the correct use of the procedure and the effectiveness of the control mechanisms. |
| --- | --- |

3.4.2

The EESC has often pointed out in its opinions that delegated acts are used far too frequently and summed up the problems this created in a recent report (4) which drew attention to the Commission's increasing leeway in this area, questioning the transparency of the system, the correct use of the procedure and the effectiveness of the control mechanisms.

4.   Specific comments

| 4.1 | The EESC has serious doubts about including methane (CH4) as a CO2 equivalent (see point 2.3.1) since this would involve reviewing the current rules on CO2 (Regulation (EC) No 443/2009 and Regulation (EU) No 510/2011). The objectives indicated in these regulations were set without taking into account CO2 equivalents, the possible introduction of which would require an accurate impact assessment to ensure a proper review of these regulations. The inclusion of CO2 equivalents would also have consequences for consumers, both in terms of taxation in Member States where this is based on CO2 emissions and the risk of confusing users who are accustomed to the current CO2 labelling system. This would all be done to achieve marginal variations in the values currently measured as CO2 equivalents (an increase of less than 1 g/km) and would introduce significant complications to monitoring. |
| --- | --- |

4.1

The EESC has serious doubts about including methane (CH4) as a CO2 equivalent (see point 2.3.1) since this would involve reviewing the current rules on CO2 (Regulation (EC) No 443/2009 and Regulation (EU) No 510/2011). The objectives indicated in these regulations were set without taking into account CO2 equivalents, the possible introduction of which would require an accurate impact assessment to ensure a proper review of these regulations. The inclusion of CO2 equivalents would also have consequences for consumers, both in terms of taxation in Member States where this is based on CO2 emissions and the risk of confusing users who are accustomed to the current CO2 labelling system. This would all be done to achieve marginal variations in the values currently measured as CO2 equivalents (an increase of less than 1 g/km) and would introduce significant complications to monitoring.

| 4.2 | With regard to tailpipe emissions at cold temperatures (point 2.3.2), the EESC recommends that the review of the limits should be preceded by a detailed impact assessment for carbon monoxide (CO) and hydrocarbons (HC), and not just for nitrogen oxides (NOx) and nitrogen dioxide (NO2). |
| --- | --- |

4.2

With regard to tailpipe emissions at cold temperatures (point 2.3.2), the EESC recommends that the review of the limits should be preceded by a detailed impact assessment for carbon monoxide (CO) and hydrocarbons (HC), and not just for nitrogen oxides (NOx) and nitrogen dioxide (NO2).

| 4.3 | Even in the case of nitrogen dioxide (point 2.3.3), which is a very significant pollutant, particularly in urban areas, the decision to set a specific limit through delegated acts should be supported by a detailed impact assessment. |
| --- | --- |

4.3

Even in the case of nitrogen dioxide (point 2.3.3), which is a very significant pollutant, particularly in urban areas, the decision to set a specific limit through delegated acts should be supported by a detailed impact assessment.

| 4.4 | With regard to revising the measurement of particulates (point 2.3.4), the EESC notes that when a particle number limit value was introduced (Commission Regulation (EC) No 692/2008), the particulate mass limit was reduced from 5,0 mg/km to 4,5 mg/km, specifically in order to ensure that it was consistent with the number of particles. The proposal therefore seems to be unjustified and in contradiction with a recent statement by the UNECE working party (5) (in which the Commission participates) to the effect that procedures relating to particulates do not need to be reviewed. |
| --- | --- |

4.4

With regard to revising the measurement of particulates (point 2.3.4), the EESC notes that when a particle number limit value was introduced (Commission Regulation (EC) No 692/2008), the particulate mass limit was reduced from 5,0 mg/km to 4,5 mg/km, specifically in order to ensure that it was consistent with the number of particles. The proposal therefore seems to be unjustified and in contradiction with a recent statement by the UNECE working party (5) (in which the Commission participates) to the effect that procedures relating to particulates do not need to be reviewed.

| 4.5 | With regard to access to information (point 2.3.5), the EESC points out that according to Article 9 of Regulation (EC) 715/2007, the Commission should have drawn up a report on this issue by 2 July 2011; this report has yet to be submitted. It goes without saying that no decision can be taken on this issue until the Council and the European Parliament have studied this report. |
| --- | --- |

4.5

With regard to access to information (point 2.3.5), the EESC points out that according to Article 9 of Regulation (EC) 715/2007, the Commission should have drawn up a report on this issue by 2 July 2011; this report has yet to be submitted. It goes without saying that no decision can be taken on this issue until the Council and the European Parliament have studied this report.

| 4.6 | The EESC welcomes the intention to provide flexibility in terms of emission limits for certain LD vehicles which, once completed, run the risk of falling into the HD category and requiring double type approval (point 2.4.1). The introduction of a GVM of 5000kg seems consistent with the current limit of 2840kg as a reference mass. As a result, there does not seem to be any need to use delegated acts to update the test procedure. Instead, the EESC believes that this long-discussed proposal should come into force with immediate effect, possibly as an interim measure, without resorting to the delegated act procedure. This is because it would only be a short-term measure pending the new WLTP (World Light Duty Test Procedure) due to be adopted by UNECE in Geneva, which will review all test procedures for LD vehicles and will come into force as of 2017. |
| --- | --- |

4.6

The EESC welcomes the intention to provide flexibility in terms of emission limits for certain LD vehicles which, once completed, run the risk of falling into the HD category and requiring double type approval (point 2.4.1). The introduction of a GVM of 5000kg seems consistent with the current limit of 2840kg as a reference mass. As a result, there does not seem to be any need to use delegated acts to update the test procedure. Instead, the EESC believes that this long-discussed proposal should come into force with immediate effect, possibly as an interim measure, without resorting to the delegated act procedure. This is because it would only be a short-term measure pending the new WLTP (World Light Duty Test Procedure) due to be adopted by UNECE in Geneva, which will review all test procedures for LD vehicles and will come into force as of 2017.

| 4.7 | Finally, with regard to the proposal to exclude gas-fuelled vehicles from the measurement of ammonia (point 2.4.2), the EESC supports the Commission since it is a matter of correcting a measure that discriminates against vehicles powered by compressed natural gas (CNG). This issue had already been raised during discussions about Regulation (EC) 595/2009 but was then inexplicably left out of the final version of the regulation itself. |
| --- | --- |

4.7

Finally, with regard to the proposal to exclude gas-fuelled vehicles from the measurement of ammonia (point 2.4.2), the EESC supports the Commission since it is a matter of correcting a measure that discriminates against vehicles powered by compressed natural gas (CNG). This issue had already been raised during discussions about Regulation (EC) 595/2009 but was then inexplicably left out of the final version of the regulation itself.

Brussels, 29 April 2014

The President of the European Economic and Social Committee

Henri MALOSSE

---

(1)  United Nations Economic Commission for Europe.

1

(2)  CARS 21: A Competitive Automotive Regulatory Framework for the 21st Century (COM(2007) 22 final).

2

(3)  CARS 2020: Action Plan for a competitive and sustainable automotive industry in Europe (COM (2012) 636 final).

3

(4)  Information Report on ‘Better Regulation: Implementing acts and delegated acts’ (INT/656, 18 September 2013).

4

(5)  The Geneva-based United Nations Economic Commission for Europe, which is responsible, inter alia, for the international standardisation of technical regulations, with the participation of 58 signatory states and the EU (WP 29).

5

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| 12.9.2014 | EN | Official Journal of the European Union | C 311/59 |
| --- | --- | --- | --- |

12.9.2014

EN

Official Journal of the European Union

C 311/59

---

Opinion of the European Economic and Social Committee on the ‘Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on addressing the consequences of disenfranchisement of Union citizens exercising their right to free movement’

COM(2014) 33 final

2014/C 311/09

Rapporteur working alone: Andris Gobiņš

On 7 March 2014 the European Commission decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on addressing the consequences of disenfranchisement of Union citizens exercising their right to free movement

COM(2014) 33 final.

The Section for Employment, Social Affairs and Citizenship, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 7 April 2014.

At its 498th plenary session, held on 29 and 30 April 2014 (meeting of 29 April), the European Economic and Social Committee adopted the following opinion by 203 votes to 5 with 8 abstentions.

1.   View of the Committee

| 1.1 | The EU's citizens are at the heart of Article 10(3) TEU which states that ‘Every citizen shall have the right to participate in the democratic life of the Union’. By the very nature of things, this must also include the right to take part in elections, which is an essential part of democracy and a fundamental human right. |
| --- | --- |

1.1

The EU's citizens are at the heart of Article 10(3) TEU which states that ‘Every citizen shall have the right to participate in the democratic life of the Union’. By the very nature of things, this must also include the right to take part in elections, which is an essential part of democracy and a fundamental human right.

| 1.2 | One of the fundamental rights of EU citizens is the right to free movement. EU citizens can reside and work in any of the 28 Member States. |
| --- | --- |

1.2

One of the fundamental rights of EU citizens is the right to free movement. EU citizens can reside and work in any of the 28 Member States.

| 1.3 | The Charter of Fundamental Rights — which has the same legal value as the Treaties — states in Articles 39 and 40 that EU citizens who exercise their fundamental right to free movement have the right to take part in European and local elections under the same conditions as nationals of their country of residence. Participation in national elections, however, is not included in the Charter. |
| --- | --- |

1.3

The Charter of Fundamental Rights — which has the same legal value as the Treaties — states in Articles 39 and 40 that EU citizens who exercise their fundamental right to free movement have the right to take part in European and local elections under the same conditions as nationals of their country of residence. Participation in national elections, however, is not included in the Charter.

| 1.4 | A total of 23 EU Member States allows their citizens living abroad in the EU to vote in national elections. In an unofficial survey carried out by Europeans Throughout the World (ETTW) for the purpose of this opinion, expat organisations in Europe mention, amongst other things, the following positive reasons for retaining the right to vote:






  — | Voting in elections — whether they are local, regional, national or European — is a fundamental democratic right, which must be supported and safeguarded. |
| --- | --- | --- |

1.4

A total of 23 EU Member States allows their citizens living abroad in the EU to vote in national elections. In an unofficial survey carried out by Europeans Throughout the World (ETTW) for the purpose of this opinion, expat organisations in Europe mention, amongst other things, the following positive reasons for retaining the right to vote:

—

Voting in elections — whether they are local, regional, national or European — is a fundamental democratic right, which must be supported and safeguarded.

| — | In order for national elections to be truly democratic, the voice of all citizens must be heard — including the voice of those who have decided to live and work abroad. |
| --- | --- |

—

In order for national elections to be truly democratic, the voice of all citizens must be heard — including the voice of those who have decided to live and work abroad.

| — | Voting rights in national elections allow expats to maintain important ties with their home country and continue to be ‘responsible citizens’ and ‘good Europeans’. |
| --- | --- |

—

Voting rights in national elections allow expats to maintain important ties with their home country and continue to be ‘responsible citizens’ and ‘good Europeans’.

| — | Expats are, by definition, ‘ambassadors’ of their home countries and also often have to face the consequences of political decisions taken by their home countries. |
| --- | --- |

—

Expats are, by definition, ‘ambassadors’ of their home countries and also often have to face the consequences of political decisions taken by their home countries.

| — | Voting abroad in Europe is seen as a realisation of the European motto ‘Unity in diversity’. |
| --- | --- |

—

Voting abroad in Europe is seen as a realisation of the European motto ‘Unity in diversity’.

| 1.5 | Five EU Member States — Cyprus, Denmark, Ireland, Malta and the United Kingdom — prevent their citizens living abroad in the EU from voting in national elections — either immediately after leaving their home country or after a certain period of time. It is uncertain how many EU citizens are affected or potentially affected by this kind of disenfranchisement but it is estimated that some 3 million EU citizens from the five countries in question live abroad in the EU (1). |
| --- | --- |

1.5

Five EU Member States — Cyprus, Denmark, Ireland, Malta and the United Kingdom — prevent their citizens living abroad in the EU from voting in national elections — either immediately after leaving their home country or after a certain period of time. It is uncertain how many EU citizens are affected or potentially affected by this kind of disenfranchisement but it is estimated that some 3 million EU citizens from the five countries in question live abroad in the EU (1).

| 1.6 | The majority of citizens disenfranchised as a result of such policies also cannot take part in national elections in the country where they live (2). These practices have created a lost electorate — a group of citizens with no rights to vote in national elections whatsoever. |
| --- | --- |

1.6

The majority of citizens disenfranchised as a result of such policies also cannot take part in national elections in the country where they live (2). These practices have created a lost electorate — a group of citizens with no rights to vote in national elections whatsoever.

| 1.7 | One of the arguments often used in favour of disenfranchisement is that citizens living abroad lose contact with their home country. This may have been true in the past. However, thanks to modern communication technology, it is easy nowadays for EU citizens living abroad to maintain close links with their home country. They can follow current affairs in their home country on television, the radio and the internet — with the internet in particular being a common tool for interaction and participation. They can travel home quickly and cheaply. And in many cases they even pay taxes in or draw pensions from their home country. The place of physical residence can hardly be justified as a proportionate indicator for losing voting rights. |
| --- | --- |

1.7

One of the arguments often used in favour of disenfranchisement is that citizens living abroad lose contact with their home country. This may have been true in the past. However, thanks to modern communication technology, it is easy nowadays for EU citizens living abroad to maintain close links with their home country. They can follow current affairs in their home country on television, the radio and the internet — with the internet in particular being a common tool for interaction and participation. They can travel home quickly and cheaply. And in many cases they even pay taxes in or draw pensions from their home country. The place of physical residence can hardly be justified as a proportionate indicator for losing voting rights.

| 1.8 | In its Recommendation of 29 January 2014, the Commission urges the five Member States concerned to allow their citizens to retain the right to vote in national elections if these citizens demonstrate a continuing interest in the political life of their home country, for instance through an application to remain registered on the electoral roll. The Committee would have appreciated the inclusion of a general request to all Member States to ensure that voting is as straight-forward for citizens living abroad as for citizens living in the home country. |
| --- | --- |

1.8

In its Recommendation of 29 January 2014, the Commission urges the five Member States concerned to allow their citizens to retain the right to vote in national elections if these citizens demonstrate a continuing interest in the political life of their home country, for instance through an application to remain registered on the electoral roll. The Committee would have appreciated the inclusion of a general request to all Member States to ensure that voting is as straight-forward for citizens living abroad as for citizens living in the home country.

| 1.9 | The Committee strongly supports this recommendation which accompanies the communication to which this opinion relates. |
| --- | --- |

1.9

The Committee strongly supports this recommendation which accompanies the communication to which this opinion relates.

| 1.10 | Article 20 TFEU defines Union citizenship as additional to national citizenship. It can thus be seen as odd that some citizens are deprived of one fundamental right — the right to vote — when exercising another fundamental right — the right to move. It is understandable if many see this as being against the whole philosophy of EU citizenship. |
| --- | --- |

1.10

Article 20 TFEU defines Union citizenship as additional to national citizenship. It can thus be seen as odd that some citizens are deprived of one fundamental right — the right to vote — when exercising another fundamental right — the right to move. It is understandable if many see this as being against the whole philosophy of EU citizenship.

| 1.11 | The rules concerning voting rights in national elections are clearly a national — and not European — competence. The EU does not and must not put this important principle into question. Seen from the citizens’ point of view, however, progress is needed on the matter. Citizens should still be entitled to exercise those fundamental rights which all Member States have acceded to in the EU Treaties, without being disenfranchised by national legislation for doing so. |
| --- | --- |

1.11

The rules concerning voting rights in national elections are clearly a national — and not European — competence. The EU does not and must not put this important principle into question. Seen from the citizens’ point of view, however, progress is needed on the matter. Citizens should still be entitled to exercise those fundamental rights which all Member States have acceded to in the EU Treaties, without being disenfranchised by national legislation for doing so.

| 1.12 | The Committee encourages the five Member States concerned to find ways to be more flexible. The solutions will naturally differ from one country to another. The crucial point is that all EU citizens should retain the right to vote in the national elections of their country of origin. The Committee encourages these Member States to consider the European Commission's view that, rather than limiting the right to vote based on a residence condition, expats should have the opportunity to demonstrate their continuing interest in the political life of their country of origin. Time limits for retaining the right to vote are by their very nature likely to be arbitrary. |
| --- | --- |

1.12

The Committee encourages the five Member States concerned to find ways to be more flexible. The solutions will naturally differ from one country to another. The crucial point is that all EU citizens should retain the right to vote in the national elections of their country of origin. The Committee encourages these Member States to consider the European Commission's view that, rather than limiting the right to vote based on a residence condition, expats should have the opportunity to demonstrate their continuing interest in the political life of their country of origin. Time limits for retaining the right to vote are by their very nature likely to be arbitrary.

| 1.13 | The Committee furthermore wants to underline the importance of providing expats with clear information about their rights and how these rights can be exercised. |
| --- | --- |

1.13

The Committee furthermore wants to underline the importance of providing expats with clear information about their rights and how these rights can be exercised.

| 1.14 | The Committee urges the competent national authorities to make the procedures for registration and voting as simple and transparent as possible. |
| --- | --- |

1.14

The Committee urges the competent national authorities to make the procedures for registration and voting as simple and transparent as possible.

| 1.15 | Finally, the Committee stresses that disenfranchisement in national elections is only one example of the encroachment on citizenship rights that citizens experience when living abroad in the EU. The Committee urges the Commission to map all such encroachments in order to provide a full overview of the current state of play in Europe, whilst paying special attention to opportunities for active citizenship and participation in ‘day-to-day’ decision making. |
| --- | --- |

1.15

Finally, the Committee stresses that disenfranchisement in national elections is only one example of the encroachment on citizenship rights that citizens experience when living abroad in the EU. The Committee urges the Commission to map all such encroachments in order to provide a full overview of the current state of play in Europe, whilst paying special attention to opportunities for active citizenship and participation in ‘day-to-day’ decision making.

2.   Additional background information

| 2.1 | The Recommendation from the Commission gives a good overview of the legal situation in each of the five Member States concerned. Based on information from ETTW, the Committee would, however, like to add a few comments to what the Commission has said: |
| --- | --- |

2.1

The Recommendation from the Commission gives a good overview of the legal situation in each of the five Member States concerned. Based on information from ETTW, the Committee would, however, like to add a few comments to what the Commission has said:

| 2.2 | Cyprus: Around 4 80  000 citizens of Cyprus live in other EU countries, most of them in the UK. Despite what has been said, these citizens actually could take part in last year’s national elections. In other words, there seems to be a discrepancy between the legal situation and actual practices. |
| --- | --- |

2.2

Cyprus: Around 4 80  000 citizens of Cyprus live in other EU countries, most of them in the UK. Despite what has been said, these citizens actually could take part in last year’s national elections. In other words, there seems to be a discrepancy between the legal situation and actual practices.

| 2.3 | Denmark: Around 1 40  000 Danish citizens live in another EU country. The Danish constitution states that a Danish citizen has the right to vote in Danish Parliament elections if he or she has permanent residence in the country. However, a number of exemptions have been introduced. Under certain circumstances, citizens retain their right to vote for 12 years or in some cases even more. These exemptions call into question the constitutional argument for a continued ‘general’ disenfranchisement of Danish citizens living abroad. |
| --- | --- |

2.3

Denmark: Around 1 40  000 Danish citizens live in another EU country. The Danish constitution states that a Danish citizen has the right to vote in Danish Parliament elections if he or she has permanent residence in the country. However, a number of exemptions have been introduced. Under certain circumstances, citizens retain their right to vote for 12 years or in some cases even more. These exemptions call into question the constitutional argument for a continued ‘general’ disenfranchisement of Danish citizens living abroad.

| 2.4 | Ireland: The number of Irish citizens living abroad is very high — according to a recent official estimate, it is around 3 million, half a million of whom live in another EU Member State. One of the arguments against giving expats voting rights has been that they could become a dominant factor in Irish politics. Recent developments, though, indicate that Irish citizens living abroad could gradually gain voting rights. 78 % of the delegates in the ongoing Constitutional Convention favour giving expats the right to vote in presidential elections. In a reform bill for the Seanad (the Upper House of Parliament) it has even been proposed that expats should have the right to vote in Seanad elections. While the government's response to the Constitutional Convention is still pending, there seems to be a wind of change concerning the question of disenfranchisement in Ireland. |
| --- | --- |

2.4

Ireland: The number of Irish citizens living abroad is very high — according to a recent official estimate, it is around 3 million, half a million of whom live in another EU Member State. One of the arguments against giving expats voting rights has been that they could become a dominant factor in Irish politics. Recent developments, though, indicate that Irish citizens living abroad could gradually gain voting rights. 78 % of the delegates in the ongoing Constitutional Convention favour giving expats the right to vote in presidential elections. In a reform bill for the Seanad (the Upper House of Parliament) it has even been proposed that expats should have the right to vote in Seanad elections. While the government's response to the Constitutional Convention is still pending, there seems to be a wind of change concerning the question of disenfranchisement in Ireland.

| 2.5 | Malta: 1 01  700 Maltese citizens live in another EU Member State, the vast majority of them in the UK (3). The Maltese constitution states that a Maltese citizen has voting rights if ‘he is resident in Malta and has during the eighteen months immediately preceding his registration been a resident for a continuous period of six months or for periods amounting in the aggregate to six months’. In a landmark court case in 2003, a Maltese court ruled that the reference to ‘residence’ in the Maltese Constitution was to be interpreted as ‘habitual residence’, as the more restrictive interpretation of ‘residence’ as ‘physical residence’ would infringe the European Convention on Human Rights. This Court decision was never followed up by a constitutional amendment. |
| --- | --- |

2.5

Malta: 1 01  700 Maltese citizens live in another EU Member State, the vast majority of them in the UK (3). The Maltese constitution states that a Maltese citizen has voting rights if ‘he is resident in Malta and has during the eighteen months immediately preceding his registration been a resident for a continuous period of six months or for periods amounting in the aggregate to six months’. In a landmark court case in 2003, a Maltese court ruled that the reference to ‘residence’ in the Maltese Constitution was to be interpreted as ‘habitual residence’, as the more restrictive interpretation of ‘residence’ as ‘physical residence’ would infringe the European Convention on Human Rights. This Court decision was never followed up by a constitutional amendment.

| 2.6 | United Kingdom: Almost 2,2 million UK citizens live in another EU Member State. The rules on their voting rights in UK parliamentary elections have changed three times over the last 30 years. Before 1985 expats could not vote at all, but as of 1985 citizens would lose their voting rights only after five years abroad. This period was increased to 20 years in 1989 and then reduced to 15 years in 2000, which is still the period in force. In a very recent development, the Liberal Democrats — who form part of the coalition government — decided, at their party congress on 1—2 March 2014, that UK citizens in Europe should have the right to vote in national elections. |
| --- | --- |

2.6

United Kingdom: Almost 2,2 million UK citizens live in another EU Member State. The rules on their voting rights in UK parliamentary elections have changed three times over the last 30 years. Before 1985 expats could not vote at all, but as of 1985 citizens would lose their voting rights only after five years abroad. This period was increased to 20 years in 1989 and then reduced to 15 years in 2000, which is still the period in force. In a very recent development, the Liberal Democrats — who form part of the coalition government — decided, at their party congress on 1—2 March 2014, that UK citizens in Europe should have the right to vote in national elections.

Brussels, 29 April 2014

The President of the European Economic and Social Committee

Henri MALOSSE

---

(1)  According to Eurostat figures, 1,17 million EU citizens from the five countries in question were living abroad in the EU in 2013, but this figure does not include foreign EU citizens living in Greece, France, Croatia, Cyprus, Lithuania, Luxembourg, Malta and the UK (though Irish citizens living in the UK are counted).

1

(2)  According to the Commission, no Member State has a general policy granting other Member States' nationals residing in its territory the right to vote in national elections. There are, however, exceptions: ‘qualifying Commonwealth citizens’ can vote in national parliamentary elections in the UK and UK nationals have the right to vote in national parliamentary elections in Ireland.

2

(3)  Figure provided by the Maltese government.

3

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| 12.9.2014 | EN | Official Journal of the European Union | C 311/63 |
| --- | --- | --- | --- |

12.9.2014

EN

Official Journal of the European Union

C 311/63

---

Opinion of the European Economic and Social Committee on the ‘Proposal for a Regulation of the European Parliament and of the Council on information provision and promotion measures for agricultural products on the internal market and in third countries’

COM(2013) 812 final — 2013/0398 (COD)

2014/C 311/10

Rapporteur: Igor Šarmír

On 9 and 11 December 2013 respectively, the European Parliament and the Council decided to consult the European Economic and Social Committee, under Articles 42, 43(2) and 304 of the Treaty on the Functioning of the European Union, on the

Proposal for a Regulation of the European Parliament and of the Council on information provision and promotion measures for agricultural products on the internal market and in third countries

COM(2013) 812 final — 2013/0398 (COD).

The Section for Agriculture, Rural Development and the Environment, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 1 April 2014.

At its 498th plenary session, held on 29 and 30 April 2014 (meeting of 30 April), the European Economic and Social Committee adopted the following opinion by 154 votes to 4, with 4 abstentions.

1.   Conclusions and recommendations

| 1.1 | The European Economic and Social Committee (EESC) values the Commission's efforts to simplify and improve the efficiency of the policy for promoting European agri-food products. |
| --- | --- |

1.1

The European Economic and Social Committee (EESC) values the Commission's efforts to simplify and improve the efficiency of the policy for promoting European agri-food products.

| 1.2 | The EESC particularly welcomes the fact that the Commission has set itself the goal of significantly increasing the budget for promotion measures and developing a fully fledged promotion strategy. |
| --- | --- |

1.2

The EESC particularly welcomes the fact that the Commission has set itself the goal of significantly increasing the budget for promotion measures and developing a fully fledged promotion strategy.

| 1.3 | The EESC acknowledges that further support is required for promotion efforts in third countries since they have considerable potential for absorbing European agri-food products and, so far, less than 30 % of the budget earmarked for promotion measures has targeted these countries. Nevertheless, aiming to spend 75 % of the budget on promotion in non-EU countries seems disproportionate, given the real challenges facing the European agri-food sector. An equal (50/50) distribution of expenditure on promotion in Europe and in third countries would be more appropriate. |
| --- | --- |

1.3

The EESC acknowledges that further support is required for promotion efforts in third countries since they have considerable potential for absorbing European agri-food products and, so far, less than 30 % of the budget earmarked for promotion measures has targeted these countries. Nevertheless, aiming to spend 75 % of the budget on promotion in non-EU countries seems disproportionate, given the real challenges facing the European agri-food sector. An equal (50/50) distribution of expenditure on promotion in Europe and in third countries would be more appropriate.

| 1.4 | The EESC believes that European agricultural products have to contend with increasingly aggressive competition on the EU market from imported products. This is why information and promotion measures for European agricultural products need to be stepped up in the EU, and this is all the more important since most European consumers are unaware of the comparative advantages of these products. |
| --- | --- |

1.4

The EESC believes that European agricultural products have to contend with increasingly aggressive competition on the EU market from imported products. This is why information and promotion measures for European agricultural products need to be stepped up in the EU, and this is all the more important since most European consumers are unaware of the comparative advantages of these products.

| 1.5 | The EESC recommends that in clearly defined exceptional circumstances a Member State should be able to promote agri-food products within its own borders. |
| --- | --- |

1.5

The EESC recommends that in clearly defined exceptional circumstances a Member State should be able to promote agri-food products within its own borders.

| 1.6 | The EESC recommends that food products that have undergone secondary processing (not included in Annex I to the TFEU) should be explicitly included under Article 5 as eligible products and also calls for the express exclusion of fisheries and aquaculture products to be dropped. |
| --- | --- |

1.6

The EESC recommends that food products that have undergone secondary processing (not included in Annex I to the TFEU) should be explicitly included under Article 5 as eligible products and also calls for the express exclusion of fisheries and aquaculture products to be dropped.

| 1.7 | The EESC recommends that the eligibility of wine promotion for EU support should not only apply if other food products are included in the same programme, but also if the programme is linked to an agri-tourism project. |
| --- | --- |

1.7

The EESC recommends that the eligibility of wine promotion for EU support should not only apply if other food products are included in the same programme, but also if the programme is linked to an agri-tourism project.

| 1.8 | The EESC recommends that EU support for the promotion of milk intended specifically for children in educational establishments in the EU should cover 60 % of the cost, as is the case for fruit and vegetables. |
| --- | --- |

1.8

The EESC recommends that EU support for the promotion of milk intended specifically for children in educational establishments in the EU should cover 60 % of the cost, as is the case for fruit and vegetables.

| 1.9 | The EESC calls for Member States to continue to be required to contribute up to 30 % of the cost of promotion campaigns. Otherwise, many potential applicants will not have the financial resources to carry out promotion programmes. The EESC stresses that all professional organisations in all Member States should have the same opportunities to access support for the promotion of their agri-food products. |
| --- | --- |

1.9

The EESC calls for Member States to continue to be required to contribute up to 30 % of the cost of promotion campaigns. Otherwise, many potential applicants will not have the financial resources to carry out promotion programmes. The EESC stresses that all professional organisations in all Member States should have the same opportunities to access support for the promotion of their agri-food products.

| 1.10 | The EESC recommends that organisations should submit their applications for EU support to a one-stop-shop at the Commission and that the information concerning each application should be sent to the applicant organisation's Member State of origin before the Commission makes its decision. |
| --- | --- |

1.10

The EESC recommends that organisations should submit their applications for EU support to a one-stop-shop at the Commission and that the information concerning each application should be sent to the applicant organisation's Member State of origin before the Commission makes its decision.

| 1.11 | The EESC advocates simplifying the administrative procedures involved in the preparation and follow-up of promotion programmes, namely by reducing the number of reports required by the Commission. It is particularly important to lighten the administrative burden. Greater flexibility is needed to enable programmes to adapt to evolving market conditions during the implementation phase. In order to achieve this, the amount of detailed information required when the programmes are submitted would have to be reduced (1). |
| --- | --- |

1.11

The EESC advocates simplifying the administrative procedures involved in the preparation and follow-up of promotion programmes, namely by reducing the number of reports required by the Commission. It is particularly important to lighten the administrative burden. Greater flexibility is needed to enable programmes to adapt to evolving market conditions during the implementation phase. In order to achieve this, the amount of detailed information required when the programmes are submitted would have to be reduced (1).

2.   General comments

| 2.1 | The policy for supporting and promoting agricultural products is necessary to the growth of European agriculture. Operators in the agri-food sector have to contend with increasingly keen competition in order to assert themselves on the European and global market. |
| --- | --- |

2.1

The policy for supporting and promoting agricultural products is necessary to the growth of European agriculture. Operators in the agri-food sector have to contend with increasingly keen competition in order to assert themselves on the European and global market.

| 2.2 | Council Regulation (EC) No 3/2008 made it possible to carry out promotion activities with EU support. Its mechanisms have proven to be more suited to the challenges of a globalised economy than Council Regulation (EC) No 2702/1999 and Council Regulation (EC) No 2826/2000. Promotion campaigns carried out in compliance with Council Regulation (EC) No 3/2008 promoted the quality, nutritional value and safety of EU agri-products and also drew attention to other features and benefits that were specific to these products, such as production methods, labelling, animal welfare and respect for the environment. Promotion activities could for instance take the form of advertising campaigns, point-of-sale promotion, public relations campaigns and participation in fairs and shows. Between 2000 and 2012, the EU co-financed 552 promotion programmes. |
| --- | --- |

2.2

Council Regulation (EC) No 3/2008 made it possible to carry out promotion activities with EU support. Its mechanisms have proven to be more suited to the challenges of a globalised economy than Council Regulation (EC) No 2702/1999 and Council Regulation (EC) No 2826/2000. Promotion campaigns carried out in compliance with Council Regulation (EC) No 3/2008 promoted the quality, nutritional value and safety of EU agri-products and also drew attention to other features and benefits that were specific to these products, such as production methods, labelling, animal welfare and respect for the environment. Promotion activities could for instance take the form of advertising campaigns, point-of-sale promotion, public relations campaigns and participation in fairs and shows. Between 2000 and 2012, the EU co-financed 552 promotion programmes.

| 2.3 | However, experience with the support and promotion scheme for agricultural products set out in Council Regulation (EC) No 3/2008 has already revealed this regulation's limitations since in a situation affected by the economic and financial crisis, it is particularly crucial to deploy more resources and to target promotion measures more accurately. |
| --- | --- |

2.3

However, experience with the support and promotion scheme for agricultural products set out in Council Regulation (EC) No 3/2008 has already revealed this regulation's limitations since in a situation affected by the economic and financial crisis, it is particularly crucial to deploy more resources and to target promotion measures more accurately.

| 2.4 | This proposal was preceded by the Green Paper on promotion measures and information provision for agricultural products: a reinforced value-added European strategy for promoting the tastes of Europe (COM(2011) 436 final) and the Communication from the Commission on promotion measures and information provision for agricultural products: a reinforced value-added European strategy for promoting the tastes of Europe (COM(2012) 148 final). The European Economic and Social Committee has given its views on these two documents (2). It welcomes the fact that the Commission has to a large extent taken on board the conclusions and recommendations set out in its two opinions, especially with regard to increasing the budget and simplifying administrative procedures. |
| --- | --- |

2.4

This proposal was preceded by the Green Paper on promotion measures and information provision for agricultural products: a reinforced value-added European strategy for promoting the tastes of Europe (COM(2011) 436 final) and the Communication from the Commission on promotion measures and information provision for agricultural products: a reinforced value-added European strategy for promoting the tastes of Europe (COM(2012) 148 final). The European Economic and Social Committee has given its views on these two documents (2). It welcomes the fact that the Commission has to a large extent taken on board the conclusions and recommendations set out in its two opinions, especially with regard to increasing the budget and simplifying administrative procedures.

| 2.5 | The proposal also seeks to establish a European promotion strategy, which should make it possible to target measures more accurately. This strategy should increase the number of programmes aimed at third countries, as well as ‘multi’ programmes (submitted by organisations in several Member States) and remedy the fact that many consumers in the internal market are unaware of the merits of European agricultural products. Between 2010 and 2011, barely 30 % of the budget earmarked for information provision and promotion measures was spent on measures targeting third-country markets, even though these markets offer major growth potential. Only 14 % of Europeans recognise the logos of products that benefit from a protected designation of origin (PDO) or a protected geographical indication (PGI). |
| --- | --- |

2.5

The proposal also seeks to establish a European promotion strategy, which should make it possible to target measures more accurately. This strategy should increase the number of programmes aimed at third countries, as well as ‘multi’ programmes (submitted by organisations in several Member States) and remedy the fact that many consumers in the internal market are unaware of the merits of European agricultural products. Between 2010 and 2011, barely 30 % of the budget earmarked for information provision and promotion measures was spent on measures targeting third-country markets, even though these markets offer major growth potential. Only 14 % of Europeans recognise the logos of products that benefit from a protected designation of origin (PDO) or a protected geographical indication (PGI).

| 2.6 | According to the proposal, there will be a sizeable increase in the total amount spent on support and projects will only be assessed at the Commission level, without prior assessment at the Member State level. |
| --- | --- |

2.6

According to the proposal, there will be a sizeable increase in the total amount spent on support and projects will only be assessed at the Commission level, without prior assessment at the Member State level.

| 2.7 | Other key innovations introduced by the proposal concern the possibility, framed by guidelines, of mentioning a product's origin and brand names, the inclusion of producer organisations among the beneficiaries, and a higher number of eligible products. |
| --- | --- |

2.7

Other key innovations introduced by the proposal concern the possibility, framed by guidelines, of mentioning a product's origin and brand names, the inclusion of producer organisations among the beneficiaries, and a higher number of eligible products.

3.   Specific comments

3.1   The new promotion strategy

| 3.1.1 | One of the stated objectives of the new promotion strategy is greater support for measures in third countries. This is an undeniably important goal since these new high-growth markets have the capacity to absorb a good proportion of European production, provided that consumers can be convinced of the specific merits of European agri-food products. Nonetheless, this strategic priority should not be implemented at the expense of promotion efforts aimed at the internal market, where European agri-food products must also face increasingly keen competition from imported products. As a result, earmarking 75 % of estimated expenditure for information provision and promotion measures for EU agricultural products in third countries (Recital 8) seems disproportionate and excessive, given the real challenges facing European agriculture. Fifty percent of expenditure would be a more balanced target. |
| --- | --- |

3.1.1

One of the stated objectives of the new promotion strategy is greater support for measures in third countries. This is an undeniably important goal since these new high-growth markets have the capacity to absorb a good proportion of European production, provided that consumers can be convinced of the specific merits of European agri-food products. Nonetheless, this strategic priority should not be implemented at the expense of promotion efforts aimed at the internal market, where European agri-food products must also face increasingly keen competition from imported products. As a result, earmarking 75 % of estimated expenditure for information provision and promotion measures for EU agricultural products in third countries (Recital 8) seems disproportionate and excessive, given the real challenges facing European agriculture. Fifty percent of expenditure would be a more balanced target.

| 3.1.2 | Imported products are often cheaper than European ones, not only because socio-economic costs are lower but also because production standards are less stringent when it comes to food safety and traceability and the health and safety of workers. However, as the proposal points out, most consumers in the Member States are unaware of the ‘integral quality’ (3) of European agri-food products. As a result, at least the same amount of effort needs be invested in the internal market promotion of European products as in external market promotion. This is all the more necessary since most Europeans, unlike the majority of people living in third countries, can afford the specific benefits of these products, which they will continue to buy so long as they are convinced of these benefits. Inevitably, as a consequence of globalisation and the impact of the crisis on many Europeans, a growing influx of cheap products from third countries will continue to flood the EU market. |
| --- | --- |

3.1.2

Imported products are often cheaper than European ones, not only because socio-economic costs are lower but also because production standards are less stringent when it comes to food safety and traceability and the health and safety of workers. However, as the proposal points out, most consumers in the Member States are unaware of the ‘integral quality’ (3) of European agri-food products. As a result, at least the same amount of effort needs be invested in the internal market promotion of European products as in external market promotion. This is all the more necessary since most Europeans, unlike the majority of people living in third countries, can afford the specific benefits of these products, which they will continue to buy so long as they are convinced of these benefits. Inevitably, as a consequence of globalisation and the impact of the crisis on many Europeans, a growing influx of cheap products from third countries will continue to flood the EU market.

| 3.1.3 | The EU's general rules prohibit the promotion of a single Member State's products since this could be construed as protectionism. This makes sense because the common market should be free of barriers. However, it would appear that in certain well-founded cases, exceptions should be made to this rule. This applies in particular to situations where certain European integration objectives are compromised, such as the goal of achieving balanced regional development. If left to their own devices, market forces sometimes lead to the replacement of a Member State's domestic production by products imported from another Member State, with the result that the growth of one country's agricultural sector is achieved at the expense of another's. This is why we believe that there are exceptional cases where it would be justified — on a case-by-case basis and in accordance with well-defined criteria — to authorise, or even support, the promotion of a Member State's agricultural products within its own market. |
| --- | --- |

3.1.3

The EU's general rules prohibit the promotion of a single Member State's products since this could be construed as protectionism. This makes sense because the common market should be free of barriers. However, it would appear that in certain well-founded cases, exceptions should be made to this rule. This applies in particular to situations where certain European integration objectives are compromised, such as the goal of achieving balanced regional development. If left to their own devices, market forces sometimes lead to the replacement of a Member State's domestic production by products imported from another Member State, with the result that the growth of one country's agricultural sector is achieved at the expense of another's. This is why we believe that there are exceptional cases where it would be justified — on a case-by-case basis and in accordance with well-defined criteria — to authorise, or even support, the promotion of a Member State's agricultural products within its own market.

| 3.1.4 | The EU's priorities include balanced regional and social development and the security of food supply. Nevertheless, development is far from balanced and the situation is not improving. Furthermore, food security has just fallen below worrying thresholds in several Member States: Slovakia has a self-sufficiency rate of only 47 %. Efficient farming is undoubtedly the key to achieving these two objectives and agriculture cannot function properly unless it has enough outlets. The decline in agriculture in some Member States is directly linked to sale of domestic agri-food in the country's own market. The reasons for this are complex, but the various ways to boost the farming sector include information campaigns that target national consumers and extol the virtues of domestic products. |
| --- | --- |

3.1.4

The EU's priorities include balanced regional and social development and the security of food supply. Nevertheless, development is far from balanced and the situation is not improving. Furthermore, food security has just fallen below worrying thresholds in several Member States: Slovakia has a self-sufficiency rate of only 47 %. Efficient farming is undoubtedly the key to achieving these two objectives and agriculture cannot function properly unless it has enough outlets. The decline in agriculture in some Member States is directly linked to sale of domestic agri-food in the country's own market. The reasons for this are complex, but the various ways to boost the farming sector include information campaigns that target national consumers and extol the virtues of domestic products.

| 3.1.5 | In fact, there are reliable indications that a decline in the sale of domestic products in certain Member States does not always mean that imported products are better value for money, but could be linked to other factors. For instance, in ex-communist Central European countries, the major large-scale retailers are often commercial companies of Western European origin, which obviously have close ties with suppliers in their country of origin, where they were previously based and where their purchasing centres for the new countries are often located. |
| --- | --- |

3.1.5

In fact, there are reliable indications that a decline in the sale of domestic products in certain Member States does not always mean that imported products are better value for money, but could be linked to other factors. For instance, in ex-communist Central European countries, the major large-scale retailers are often commercial companies of Western European origin, which obviously have close ties with suppliers in their country of origin, where they were previously based and where their purchasing centres for the new countries are often located.

3.2   Eligible products

| 3.2.1 | Recital 6 and the official information documents published by the Commission state that the promotion scheme will henceforth be opened up to all agri-food products not included in Annex I of the TFEU (agricultural products that have undergone secondary processing) eligible under European quality schemes such as chocolate, confectionery and beer. This is seen as one of the new scheme's main innovations. However, Article 5 on eligible products and themes does not mention this since it only defines the agricultural and food products listed in Annex I and wines and spirits as eligible. This presents a problem since the content of these provisions is unclear. |
| --- | --- |

3.2.1

Recital 6 and the official information documents published by the Commission state that the promotion scheme will henceforth be opened up to all agri-food products not included in Annex I of the TFEU (agricultural products that have undergone secondary processing) eligible under European quality schemes such as chocolate, confectionery and beer. This is seen as one of the new scheme's main innovations. However, Article 5 on eligible products and themes does not mention this since it only defines the agricultural and food products listed in Annex I and wines and spirits as eligible. This presents a problem since the content of these provisions is unclear.

| 3.2.2 | Wines are the only eligible products for which information and promotion measures are subject to a condition, namely that they must be promoted alongside another product. This can be explained by the fact that the EU's information provision and promotion measures relating to wine are one of the landmarks of the aid programmes available to the wine sector under the CAP as part of the common organisation of the market. However, the principle of promoting wine alongside foodstuffs is undermined by the exclusion of fisheries and aquaculture products, which are the natural companions of certain wines. The EESC calls for the exception covering these products in Article 5 to be dropped. |
| --- | --- |

3.2.2

Wines are the only eligible products for which information and promotion measures are subject to a condition, namely that they must be promoted alongside another product. This can be explained by the fact that the EU's information provision and promotion measures relating to wine are one of the landmarks of the aid programmes available to the wine sector under the CAP as part of the common organisation of the market. However, the principle of promoting wine alongside foodstuffs is undermined by the exclusion of fisheries and aquaculture products, which are the natural companions of certain wines. The EESC calls for the exception covering these products in Article 5 to be dropped.

| 3.2.3 | However, European wines have to contend with particularly keen competition from ‘New World wines’, which has led to lower production in European countries and higher production in countries like Chile, Argentina, South Africa, Australia, the United States and even China. The reasons are complex, but broadly speaking, imported wines are cheaper, have fewer ‘fringe benefits’ (very few geographical indications, no official quality control, far fewer vintages, few grape varieties, etc.) and are very strongly promoted. Furthermore, the ability of non-EU producers to guarantee the regular delivery of adequate quantities, with stable organoleptic properties, at reasonable prices has a strong appeal for large-scale retailers, who are on the lookout for this type of supplier. It is very difficult for the far more diverse European wine sector to respond to these demands. |
| --- | --- |

3.2.3

However, European wines have to contend with particularly keen competition from ‘New World wines’, which has led to lower production in European countries and higher production in countries like Chile, Argentina, South Africa, Australia, the United States and even China. The reasons are complex, but broadly speaking, imported wines are cheaper, have fewer ‘fringe benefits’ (very few geographical indications, no official quality control, far fewer vintages, few grape varieties, etc.) and are very strongly promoted. Furthermore, the ability of non-EU producers to guarantee the regular delivery of adequate quantities, with stable organoleptic properties, at reasonable prices has a strong appeal for large-scale retailers, who are on the lookout for this type of supplier. It is very difficult for the far more diverse European wine sector to respond to these demands.

| 3.2.4 | High quality European wines therefore require even more promotion and information measures to draw the attention of potential consumers to their comparative advantages. If promotion measures for European wines must be subject to conditions for the abovementioned reasons (point 3.2.2), we advocate establishing an alternative option to the simultaneous promotion of another agricultural product. This alternative would make it possible to link the promotion of wine to agri-tourism activities. This type of wine promotion has in fact worked well in many Central European countries. |
| --- | --- |

3.2.4

High quality European wines therefore require even more promotion and information measures to draw the attention of potential consumers to their comparative advantages. If promotion measures for European wines must be subject to conditions for the abovementioned reasons (point 3.2.2), we advocate establishing an alternative option to the simultaneous promotion of another agricultural product. This alternative would make it possible to link the promotion of wine to agri-tourism activities. This type of wine promotion has in fact worked well in many Central European countries.

| 3.2.5 | This mutually beneficial link with agri-tourism can in fact be extended to include all crops and livestock produce, as well as fisheries and aquaculture products, in order to maximise synergies and promote revenue diversification in rural and coastal areas. |
| --- | --- |

3.2.5

This mutually beneficial link with agri-tourism can in fact be extended to include all crops and livestock produce, as well as fisheries and aquaculture products, in order to maximise synergies and promote revenue diversification in rural and coastal areas.

3.3   Implementation and management of simple programmes

| 3.3.1 | According to the scheme established under Council Regulation (EC) No 3/2008, the national authorities preselected the campaigns that were potentially eligible for EU support twice a year. They then submitted the proposals received to the European Commission, which in turn made its selection. The proposal under consideration seeks to simplify the procedure through a one-stop selection process for programmes, to be carried out by the Commission once a year. There is no question that this would simplify administrative procedures. However, the management of ‘simple’ programmes (concerning only one Member State) will continue to be shared with the Member States, after selection by the Commission. |
| --- | --- |

3.3.1

According to the scheme established under Council Regulation (EC) No 3/2008, the national authorities preselected the campaigns that were potentially eligible for EU support twice a year. They then submitted the proposals received to the European Commission, which in turn made its selection. The proposal under consideration seeks to simplify the procedure through a one-stop selection process for programmes, to be carried out by the Commission once a year. There is no question that this would simplify administrative procedures. However, the management of ‘simple’ programmes (concerning only one Member State) will continue to be shared with the Member States, after selection by the Commission.

| 3.3.2 | The EESC recommends that organisations should submit their applications for EU support to a one-stop-shop at the Commission and that the information concerning each application should be sent to the applicant organisation's Member State of origin before the Commission makes its decision. |
| --- | --- |

3.3.2

The EESC recommends that organisations should submit their applications for EU support to a one-stop-shop at the Commission and that the information concerning each application should be sent to the applicant organisation's Member State of origin before the Commission makes its decision.

| 3.3.3 | Under the old system, the EU could fund up to half the cost of the campaign. The trade organisation's participation in the initiative had to correspond to at least 20 % of the cost. The national authorities covered the remainder (4). In some cases, e.g. for the promotion of fruit and vegetables intended for children in schools in the European Union, the EU's could cover up to 60 % of the cost. |
| --- | --- |

3.3.3

Under the old system, the EU could fund up to half the cost of the campaign. The trade organisation's participation in the initiative had to correspond to at least 20 % of the cost. The national authorities covered the remainder (4). In some cases, e.g. for the promotion of fruit and vegetables intended for children in schools in the European Union, the EU's could cover up to 60 % of the cost.

| 3.3.4 | Under the system set out in the proposed regulation, only the proposing organisation and the EU will co-finance the programmes. The national authorities will therefore have no obligation (or right) to contribute to the cost of programmes. |
| --- | --- |

3.3.4

Under the system set out in the proposed regulation, only the proposing organisation and the EU will co-finance the programmes. The national authorities will therefore have no obligation (or right) to contribute to the cost of programmes.

| 3.3.5 | The EU's financial contribution may reach up to 50 % of a programme's cost, but may be increased to 60 % for ‘multi’ programmes targeting one or more third countries, and for measures for fruit and vegetables specifically intended for children in educational establishments in the EU. |
| --- | --- |

3.3.5

The EU's financial contribution may reach up to 50 % of a programme's cost, but may be increased to 60 % for ‘multi’ programmes targeting one or more third countries, and for measures for fruit and vegetables specifically intended for children in educational establishments in the EU.

| 3.3.6 | The EESC appreciates the fact that more cases will be eligible for a financial contribution from the EU amounting to 60 % of the cost. However, it is clear that the contribution of the proposing organisation will be much higher than it used to be under the previous system since the national authorities will no longer be able to participate. This will certainly put off organisations of modest means and will result in comparatively wealthy organisations benefiting more than they did before from support for information and promotion measures. |
| --- | --- |

3.3.6

The EESC appreciates the fact that more cases will be eligible for a financial contribution from the EU amounting to 60 % of the cost. However, it is clear that the contribution of the proposing organisation will be much higher than it used to be under the previous system since the national authorities will no longer be able to participate. This will certainly put off organisations of modest means and will result in comparatively wealthy organisations benefiting more than they did before from support for information and promotion measures.

| 3.3.7 | As a result, the EESC believes that the national authorities should continue to be able to participate in the cost of promotion measures (at a rate of up to 30 %), at least in cases where the Member States share the management of programmes (simple programmes). |
| --- | --- |

3.3.7

As a result, the EESC believes that the national authorities should continue to be able to participate in the cost of promotion measures (at a rate of up to 30 %), at least in cases where the Member States share the management of programmes (simple programmes).

| 3.3.8 | Similarly, it seems advisable to authorise a higher participation rate for the EU (60 % of the cost) for information and promotion measures for milk intended for children in educational establishments in the EU. In order to have a healthy and balanced diet, children today also need more milk and dairy products in addition to more fruit and vegetables. |
| --- | --- |

3.3.8

Similarly, it seems advisable to authorise a higher participation rate for the EU (60 % of the cost) for information and promotion measures for milk intended for children in educational establishments in the EU. In order to have a healthy and balanced diet, children today also need more milk and dairy products in addition to more fruit and vegetables.

Brussels, 30 April 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

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(1)  EESC opinion on promotion measures and information provision for agricultural products: a reinforced value-added European strategy for promoting the tastes of Europe, OJ C 43, 15.2.2012, pp3 59-64.

1

promotion measures and information provision for agricultural products: a reinforced value-added European strategy for promoting the tastes of Europe

(2)  OJ C 43, 15.12.2012, pp. 59-64 and OJ C 299, 4.9.2012, pp. 141-144.

2

(3)  EESC opinion on The Community agricultural model: production quality and communication with consumers as factors of competitiveness,
  OJ C 18, 19.1.2011, pp. 5-10.

3

The Community agricultural model: production quality and communication with consumers as factors of competitiveness,

(4)  Regulation (EC) No 3/2008, Article 13(3).

4

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| 12.9.2014 | EN | Official Journal of the European Union | C 311/68 |
| --- | --- | --- | --- |

12.9.2014

EN

Official Journal of the European Union

C 311/68

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Opinion of the European Economic and Social Committee on the ‘Proposal for a Regulation of the European Parliament and of the Council amending Council Regulations (EC) No 850/98, (EC) No 2187/2005, (EC) No 1967/2006, (EC) No 1098/2007, (EC) No 254/2002, (EC) No 2347/2002 and (EC) No 1224/2009 and repealing (EC) No 1434/98 as regards the landing obligation’

COM(2013) 889 final — 2013/0436 (COD)

2014/C 311/11

Rapporteur working alone: Gabriel Sarró Iparraguirre

On 13 January and 16 January 2014 respectively, the European Parliament and the Council decided to consult the European Economic and Social Committee, under Articles 43 and 304 of the Treaty on the Functioning of the European Union, on the:

Proposal for a Regulation of the European Parliament and of the Council amending Council Regulations (EC) No 850/98, (EC) No 2187/2005, (EC) No 1967/2006, (EC) No 1098/2007, (EC) No 254/2002, (EC) No 2347/2002 and (EC) No 1224/2009 and repealing (EC) No 1434/98 as regards the landing obligation

COM(2013) 889 final — 2013/0436 (COD).

The Section for Agriculture, Rural Development and the Environment, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 1 April 2014.

At its 498th plenary session, held on 29 and 30 April 2014 (meeting of 29 April), the European Economic and Social Committee adopted the following opinion by 199 votes to 1 with 7 abstentions.

1.   Conclusions and recommendations

| 1.1 | Following the adoption of the new Common Fisheries Policy (CFP), which introduces changes to the landing obligation not only for TACs (Total Allowable Catches) but also for species with minimum conservation reference sizes, the EESC believes that it is crucial to adapt this landing obligation to the legislation in force, which requires fishing operators to discard in certain circumstances. |
| --- | --- |

1.1

Following the adoption of the new Common Fisheries Policy (CFP), which introduces changes to the landing obligation not only for TACs (Total Allowable Catches) but also for species with minimum conservation reference sizes, the EESC believes that it is crucial to adapt this landing obligation to the legislation in force, which requires fishing operators to discard in certain circumstances.

| 1.2 | Nevertheless, it believes that the Commission's proposal is unnecessarily complicated and will generate an undue and disproportionate amount of additional work for fishing operators when it comes to applying the landing obligation. As a result, it advocates opting for more pragmatic, clear, straightforward and flexible rules that genuinely give fishing operators time to adapt during a transitional period, without facing heavy penalties. |
| --- | --- |

1.2

Nevertheless, it believes that the Commission's proposal is unnecessarily complicated and will generate an undue and disproportionate amount of additional work for fishing operators when it comes to applying the landing obligation. As a result, it advocates opting for more pragmatic, clear, straightforward and flexible rules that genuinely give fishing operators time to adapt during a transitional period, without facing heavy penalties.

| 1.3 | The EESC regrets that a prior impact assessment was not carried out in order to study the repercussions of the landing obligation for each fleet. |
| --- | --- |

1.3

The EESC regrets that a prior impact assessment was not carried out in order to study the repercussions of the landing obligation for each fleet.

| 1.4 | The EESC believes that technical measures are fundamental to fishing activities and that, for this reason, any related decisions should be taken following direct contact with ports; they should be specific to concrete cases, timely and based on fast-track and efficient decision-making processes that can be adapted to changing circumstances and developments concerning the relevant species. |
| --- | --- |

1.4

The EESC believes that technical measures are fundamental to fishing activities and that, for this reason, any related decisions should be taken following direct contact with ports; they should be specific to concrete cases, timely and based on fast-track and efficient decision-making processes that can be adapted to changing circumstances and developments concerning the relevant species.

| 1.5 | The EESC urges the co-legislator to give consideration to its comments regarding the new definitions, catch composition, the recording of catches, the new control obligations, fishing authorisations, margins of tolerance, closed-circuit television (CCTV) monitoring and penalties. |
| --- | --- |

1.5

The EESC urges the co-legislator to give consideration to its comments regarding the new definitions, catch composition, the recording of catches, the new control obligations, fishing authorisations, margins of tolerance, closed-circuit television (CCTV) monitoring and penalties.

2.   Background

| 2.1 | Regulation (EU) No 1380/2013 of the European Parliament and of the Council on the Common Fisheries Policy was adopted on 11 December 2013. This regulation came into force on 1 January 2014. |
| --- | --- |

2.1

Regulation (EU) No 1380/2013 of the European Parliament and of the Council on the Common Fisheries Policy was adopted on 11 December 2013. This regulation came into force on 1 January 2014.

| 2.2 | Its adoption repealed Council Regulation (EC) 2371/2002 on the conservation and sustainable exploitation of fisheries resources under the Common Fisheries Policy, which had been in force from 1 January 2003 to 31 December 2013. |
| --- | --- |

2.2

Its adoption repealed Council Regulation (EC) 2371/2002 on the conservation and sustainable exploitation of fisheries resources under the Common Fisheries Policy, which had been in force from 1 January 2003 to 31 December 2013.

| 2.3 | The new CFP regulation amends and repeals a number of regulations, decisions and directives in order to adapt them to the new rules it sets out. |
| --- | --- |

2.3

The new CFP regulation amends and repeals a number of regulations, decisions and directives in order to adapt them to the new rules it sets out.

| 2.4 | One of these, and the reason for this opinion, is set out in Article 15 on measures for the conservation and sustainable exploitation of biological marine resources, which refers to the landing obligation. |
| --- | --- |

2.4

One of these, and the reason for this opinion, is set out in Article 15 on measures for the conservation and sustainable exploitation of biological marine resources, which refers to the landing obligation.

| 2.5 | This one aspect of the rules on the landing obligation, set out in the new Regulation (EU) No 1380/2013, requires seven pre-existing EC regulations to be amended and an eighth regulation to be repealed. |
| --- | --- |

2.5

This one aspect of the rules on the landing obligation, set out in the new Regulation (EU) No 1380/2013, requires seven pre-existing EC regulations to be amended and an eighth regulation to be repealed.

3.   General considerations

| 3.1 | The handling of the CFP reform set out in Regulation (EU) No 1380/2013 took far longer than originally expected, so much so that its entry into force had to be delayed by a year, mainly as a consequence of the controversial establishment of the landing obligation, also known as the discards ban. |
| --- | --- |

3.1

The handling of the CFP reform set out in Regulation (EU) No 1380/2013 took far longer than originally expected, so much so that its entry into force had to be delayed by a year, mainly as a consequence of the controversial establishment of the landing obligation, also known as the discards ban.

| 3.2 | It could be said that the main objective of the new CFP is the progressive elimination of discards in all EU fisheries through the introduction of a landing obligation. |
| --- | --- |

3.2

It could be said that the main objective of the new CFP is the progressive elimination of discards in all EU fisheries through the introduction of a landing obligation.

| 3.3 | In point 1.8 of the conclusion of its opinion on the CFP reform, the EESC welcomed the ban on discards, but advocated a ‘more gradual and proportionate approach, based on progressively reducing discards, promoting and encouraging more selective fishing gear, implementing measures designed to process fisheries products in a manner that offers added value, searching for market outlets and adapting the infrastructure of vessels and fishing ports’. |
| --- | --- |

3.3

In point 1.8 of the conclusion of its opinion on the CFP reform, the EESC welcomed the ban on discards, but advocated a ‘more gradual and proportionate approach, based on progressively reducing discards, promoting and encouraging more selective fishing gear, implementing measures designed to process fisheries products in a manner that offers added value, searching for market outlets and adapting the infrastructure of vessels and fishing ports’.

| 3.4 | In this regard, it is worth noting that the proposed basic CFP regulation introduced a discards ban which, depending on the species, will come into force between 1 January 2014 and 31 December 2015. |
| --- | --- |

3.4

In this regard, it is worth noting that the proposed basic CFP regulation introduced a discards ban which, depending on the species, will come into force between 1 January 2014 and 31 December 2015.

| 3.5 | The European Parliament and the Council reached a political agreement at the end of 2013, setting out a new timetable for the landing obligation's entry into force, based on a more gradual application than originally planned, i.e. extending from 1 January 2015 to 1 January 2019. |
| --- | --- |

3.5

The European Parliament and the Council reached a political agreement at the end of 2013, setting out a new timetable for the landing obligation's entry into force, based on a more gradual application than originally planned, i.e. extending from 1 January 2015 to 1 January 2019.

| 3.6 | In order to make the landing obligation operational, certain provisions within the current regulations on technical measures, management measures and control that run contrary to the landing obligation and oblige fishing operators to discard must be removed or amended. |
| --- | --- |

3.6

In order to make the landing obligation operational, certain provisions within the current regulations on technical measures, management measures and control that run contrary to the landing obligation and oblige fishing operators to discard must be removed or amended.

| 3.7 | The Council has urged the Commission to act swiftly to make changes to the existing regulations. The Commission intends to develop a new technical measures framework to facilitate the full implementation of the landing obligation as envisaged. However, this new framework will almost certainly not be in place in time for the first group of fisheries to be covered under the landing obligation on 1 January 2015. |
| --- | --- |

3.7

The Council has urged the Commission to act swiftly to make changes to the existing regulations. The Commission intends to develop a new technical measures framework to facilitate the full implementation of the landing obligation as envisaged. However, this new framework will almost certainly not be in place in time for the first group of fisheries to be covered under the landing obligation on 1 January 2015.

| 3.8 | Therefore legislation is required to remove any legal and practical impediments to implementation on a transitional basis while this new framework is being developed. |
| --- | --- |

3.8

Therefore legislation is required to remove any legal and practical impediments to implementation on a transitional basis while this new framework is being developed.

| 3.9 | These new rules, which the EESC considers essential to the proper implementation of the new CFP, are the ones which the Commission has now put forward and which are analysed in the following points. |
| --- | --- |

3.9

These new rules, which the EESC considers essential to the proper implementation of the new CFP, are the ones which the Commission has now put forward and which are analysed in the following points.

4.   General comments

| 4.1 | The proposal starts by introducing a number of changes to definitions that apply to various regulations, such as the introduction of the term ‘unintended catches’ or the replacement of ‘minimum landing sizes (MLS)’ with ‘minimum conservation reference sizes (MCRS)’. |
| --- | --- |

4.1

The proposal starts by introducing a number of changes to definitions that apply to various regulations, such as the introduction of the term ‘unintended catches’ or the replacement of ‘minimum landing sizes (MLS)’ with ‘minimum conservation reference sizes (MCRS)’.

| 4.2 | Most changes to the regulations on technical measures seek to abolish the current discard obligation in three cases:






  — | non-compliance with catch composition rules; |
| --- | --- | --- |

4.2

Most changes to the regulations on technical measures seek to abolish the current discard obligation in three cases:

—

non-compliance with catch composition rules;

| — | below MLS; and |
| --- | --- |

—

below MLS; and

| — | non-compliance with bycatch provisions. |
| --- | --- |

—

non-compliance with bycatch provisions.

| 4.3 | The Commission intends to retain the discard obligation for all catches which are not subject to the landing obligation and to remove, by means of derogations, catches that will be subject to the landing obligation and which, moreover, will count against quotas. |
| --- | --- |

4.3

The Commission intends to retain the discard obligation for all catches which are not subject to the landing obligation and to remove, by means of derogations, catches that will be subject to the landing obligation and which, moreover, will count against quotas.

| 4.4 | The EESC believes that technical measures are fundamental to fishing activities and that, for this reason, any related decisions should be taken following direct contact with ports; they should be specific to concrete cases, timely and based on fast-track and efficient decision-making processes that can be adapted to changing circumstances and developments concerning the relevant species. Regrettably, the EU decision-making process does not lend itself to this approach. |
| --- | --- |

4.4

The EESC believes that technical measures are fundamental to fishing activities and that, for this reason, any related decisions should be taken following direct contact with ports; they should be specific to concrete cases, timely and based on fast-track and efficient decision-making processes that can be adapted to changing circumstances and developments concerning the relevant species. Regrettably, the EU decision-making process does not lend itself to this approach.

| 4.5 | The EESC believes that the proposal for a regulation is extremely complicated and will generate an undue and disproportionate amount of additional work for fishing operators when it comes to applying the landing obligation. As a result, it advocates more pragmatic, clear, straightforward and flexible rules that give fishing operators a transitional period during which to adapt, as has occurred in other countries in the world, without facing heavy penalties. This is why it can see no justification for the new control measures introduced to ensure total and immediate ‘day-one’ compliance with rules for which there is no prior experience. |
| --- | --- |

4.5

The EESC believes that the proposal for a regulation is extremely complicated and will generate an undue and disproportionate amount of additional work for fishing operators when it comes to applying the landing obligation. As a result, it advocates more pragmatic, clear, straightforward and flexible rules that give fishing operators a transitional period during which to adapt, as has occurred in other countries in the world, without facing heavy penalties. This is why it can see no justification for the new control measures introduced to ensure total and immediate ‘day-one’ compliance with rules for which there is no prior experience.

| 4.6 | The EESC therefore regrets that a prior impact assessment was not carried out in order to study the repercussions of the landing obligation for each fleet. In particular, considers this exercise to be especially necessary for pelagic fisheries taking place in fishing grounds outside the EU under the management of regional fisheries organisations (RFOs), where a thorough prior assessment is needed in order to harmonise implementation of EU legislation, taking into account the regulations already applicable to these RFOs, to ensure that no comparative disadvantage or threat is caused to the competitiveness of European fleets operating in fishing grounds outside the EU. |
| --- | --- |

4.6

The EESC therefore regrets that a prior impact assessment was not carried out in order to study the repercussions of the landing obligation for each fleet. In particular, considers this exercise to be especially necessary for pelagic fisheries taking place in fishing grounds outside the EU under the management of regional fisheries organisations (RFOs), where a thorough prior assessment is needed in order to harmonise implementation of EU legislation, taking into account the regulations already applicable to these RFOs, to ensure that no comparative disadvantage or threat is caused to the competitiveness of European fleets operating in fishing grounds outside the EU.

5.   Specific comments

| 5.1 | With regard to the definition of ‘unintended catches’, i.e. incidental catches of marine organisms the fishing for which is prohibited in the relevant circumstances, the EESC believes that the definition is straightforward but unsatisfactory insofar as this usually concerns the unavoidable bycatch of valuable non-target species, which due to the distribution of quotas or other rules cannot be caught with that type of gear or by that particular operator. The EESC believes that it would be better to define them as ‘incidental catches that do not fully comply with the legislation in force’. |
| --- | --- |

5.1

With regard to the definition of ‘unintended catches’, i.e. incidental catches of marine organisms the fishing for which is prohibited in the relevant circumstances, the EESC believes that the definition is straightforward but unsatisfactory insofar as this usually concerns the unavoidable bycatch of valuable non-target species, which due to the distribution of quotas or other rules cannot be caught with that type of gear or by that particular operator. The EESC believes that it would be better to define them as ‘incidental catches that do not fully comply with the legislation in force’.

| 5.2 | With regard to the definition of ‘minimum conservation reference sizes’, for the moment this is just a change in terminology to ensure the separate and monitored landing of species below this size and subject to the landing obligation, in order to make sure that they do not enter the distribution chain, whereas species that are not subject to the landing obligation will be thrown back into the sea. The EESC believes that margins of error need to be taken into consideration in order to cover the technical difficulties involved in the exhaustive separation of the various MCRS from among species subject to the landing obligation, otherwise it will create considerable legal uncertainty. |
| --- | --- |

5.2

With regard to the definition of ‘minimum conservation reference sizes’, for the moment this is just a change in terminology to ensure the separate and monitored landing of species below this size and subject to the landing obligation, in order to make sure that they do not enter the distribution chain, whereas species that are not subject to the landing obligation will be thrown back into the sea. The EESC believes that margins of error need to be taken into consideration in order to cover the technical difficulties involved in the exhaustive separation of the various MCRS from among species subject to the landing obligation, otherwise it will create considerable legal uncertainty.

| 5.3 | The amendment to the catch composition rules, which now require species subject to the landing obligation to be brought ashore, does not make it clear in certain cases whether these unintended catches should be included in the composition percentages. The EESC therefore considers that this creates a problem when it comes to identifying the quotas against which these catches should be counted, which is very difficult to establish without knowing how much flexibility the various measures envisaged will provide; how quota swaps between Member States will work in the future; and what policy the Commission will adopt when setting the TACs for the various species in mixed fisheries. If the criterion is the maximum sustainable yield, imbalances will be created which will lead to a widespread shortage for specific quotas and could be the ruin of many fisheries. |
| --- | --- |

5.3

The amendment to the catch composition rules, which now require species subject to the landing obligation to be brought ashore, does not make it clear in certain cases whether these unintended catches should be included in the composition percentages. The EESC therefore considers that this creates a problem when it comes to identifying the quotas against which these catches should be counted, which is very difficult to establish without knowing how much flexibility the various measures envisaged will provide; how quota swaps between Member States will work in the future; and what policy the Commission will adopt when setting the TACs for the various species in mixed fisheries. If the criterion is the maximum sustainable yield, imbalances will be created which will lead to a widespread shortage for specific quotas and could be the ruin of many fisheries.

5.4   The recording of catches and discards

| 5.4.1 | Following the amendment to Article 14(1) of Council Regulation (EC) No 1224/2009 on the completion and submission of fishing logbooks, the criterion ‘above 50 kg of live-weight equivalent’ is removed from the previous wording: ‘indicating specifically all quantities of each species caught and kept on board above 50 kg of live-weight equivalent’. The EESC believes that this measure will significantly complicate work, especially for small vessels, even though this chapter only applies to vessels over 10 metres long. If the intention is to improve data, this could be done by sampling. |
| --- | --- |

5.4.1

Following the amendment to Article 14(1) of Council Regulation (EC) No 1224/2009 on the completion and submission of fishing logbooks, the criterion ‘above 50 kg of live-weight equivalent’ is removed from the previous wording: ‘indicating specifically all quantities of each species caught and kept on board above 50 kg of live-weight equivalent’. The EESC believes that this measure will significantly complicate work, especially for small vessels, even though this chapter only applies to vessels over 10 metres long. If the intention is to improve data, this could be done by sampling.

| 5.4.2 | Similarly, the EESC believes that the amendment to f), which now reads as follows ‘including, as a separate entry, the quantities or individuals below the applicable minimum conservation reference size’, could also involve a disproportionate amount of work, especially for the small-scale fleet. |
| --- | --- |

5.4.2

Similarly, the EESC believes that the amendment to f), which now reads as follows ‘including, as a separate entry, the quantities or individuals below the applicable minimum conservation reference size’, could also involve a disproportionate amount of work, especially for the small-scale fleet.

| 5.4.3 | Paragraph 4 provided that ‘masters of Community fishing vessels shall also record in their fishing logbook all estimated discards above 50 kg of live-weight equivalent in volume for any species’. The EESC believes that removing the reference to 50 kg will also create a considerable amount of work which has not even been estimated. It should be noted that the proposal refers to all species, irrespective of whether they are subject to the landing obligation or not. |
| --- | --- |

5.4.3

Paragraph 4 provided that ‘masters of Community fishing vessels shall also record in their fishing logbook all estimated discards above 50 kg of live-weight equivalent in volume for any species’. The EESC believes that removing the reference to 50 kg will also create a considerable amount of work which has not even been estimated. It should be noted that the proposal refers to all species, irrespective of whether they are subject to the landing obligation or not.

| 5.5 | The EESC is particularly struck by the control requirement for masters under Article 15(3) of Council Regulation (EC) No 850/98 since it is impossible to predict what a vessel will catch on a trip and masters cannot be required to acquire divination skills. Although the wording is unclear about the practical consequences of this requirement and about non-compliance, it could potentially be used to impose penalties against masters or to exacerbate disputes. As a consequence, the EESC believes that this point should be removed because it could create a serious degree of legal uncertainty. |
| --- | --- |

5.5

The EESC is particularly struck by the control requirement for masters under Article 15(3) of Council Regulation (EC) No 850/98 since it is impossible to predict what a vessel will catch on a trip and masters cannot be required to acquire divination skills. Although the wording is unclear about the practical consequences of this requirement and about non-compliance, it could potentially be used to impose penalties against masters or to exacerbate disputes. As a consequence, the EESC believes that this point should be removed because it could create a serious degree of legal uncertainty.

| 5.6 | The EESC believes that compulsory individual fishing authorisations for the vessels concerned by the landing obligation seems excessive since it would affect a large number of small vessels and generate considerable red tape, bearing in mind the additional reporting obligations for Member States. The EESC believes that it would be better to exempt vessels that go on trips of less than a day. |
| --- | --- |

5.6

The EESC believes that compulsory individual fishing authorisations for the vessels concerned by the landing obligation seems excessive since it would affect a large number of small vessels and generate considerable red tape, bearing in mind the additional reporting obligations for Member States. The EESC believes that it would be better to exempt vessels that go on trips of less than a day.

5.7   Other additional control obligations

| 5.7.1 | The new control measures will apply to all fisheries and to large and small vessels. The EESC reiterates that these measures are unsuited to small vessels since they will involve considerable red tape for the industry and the authorities and practical difficulties for work on board. |
| --- | --- |

5.7.1

The new control measures will apply to all fisheries and to large and small vessels. The EESC reiterates that these measures are unsuited to small vessels since they will involve considerable red tape for the industry and the authorities and practical difficulties for work on board.

| 5.7.2 | The Commission has suggested the separate stowage of small species, stating that they should ‘be placed in boxes, compartments or containers separately for each stock’. The EESC believes that this measure may prove impracticable for small vessels and that the partial exemption provided for vessels of less than 12 metres does not seem adequate. The EESC therefore believes that at least all vessels that go on trips of one or two days should be exempt from this requirement, irrespective of their size. |
| --- | --- |

5.7.2

The Commission has suggested the separate stowage of small species, stating that they should ‘be placed in boxes, compartments or containers separately for each stock’. The EESC believes that this measure may prove impracticable for small vessels and that the partial exemption provided for vessels of less than 12 metres does not seem adequate. The EESC therefore believes that at least all vessels that go on trips of one or two days should be exempt from this requirement, irrespective of their size.

5.8   Penalties and observers

| 5.8.1 | The suggested wording for Article 90(1)(c) of Council Regulation (EC) No 1224/2009 treats any failure to comply with the landing obligation as a serious infringement. The EESC considers this provision to be exaggerated and disproportionate and should be withdrawn from the proposal. |
| --- | --- |

5.8.1

The suggested wording for Article 90(1)(c) of Council Regulation (EC) No 1224/2009 treats any failure to comply with the landing obligation as a serious infringement. The EESC considers this provision to be exaggerated and disproportionate and should be withdrawn from the proposal.

| 5.8.2 | Although the same article states that the gravity of the infringement is to be determined by the competent authority of the Member State concerned, the EESC believes that the rules will prove so complex and difficult to implement that it will not be easy for the masters of any fleet to steer clear of involuntary minor infringements. |
| --- | --- |

5.8.2

Although the same article states that the gravity of the infringement is to be determined by the competent authority of the Member State concerned, the EESC believes that the rules will prove so complex and difficult to implement that it will not be easy for the masters of any fleet to steer clear of involuntary minor infringements.

| 5.9 | The EESC considers it reasonable to establish wider margins of tolerance for small catches. Nevertheless, it finds the proposed margins to be unrealistic, especially following the removal of the 50 kg limit from declarations and the requirement to record the volume of all discards. As an alternative, it suggests that the new margins of tolerance and these reporting requirements should be negotiated and discussed individually with each fishery. |
| --- | --- |

5.9

The EESC considers it reasonable to establish wider margins of tolerance for small catches. Nevertheless, it finds the proposed margins to be unrealistic, especially following the removal of the 50 kg limit from declarations and the requirement to record the volume of all discards. As an alternative, it suggests that the new margins of tolerance and these reporting requirements should be negotiated and discussed individually with each fishery.

| 5.10 | According to the Commission, the inclusion of a section on remote electronic monitoring (CCTV), although not a requirement at present, meets the need for a regulatory framework for this system, which would be additional to those currently available under the control regulation. The EESC believes that the conditions that can reasonably be required need to be well defined and clearly delimited. |
| --- | --- |

5.10

According to the Commission, the inclusion of a section on remote electronic monitoring (CCTV), although not a requirement at present, meets the need for a regulatory framework for this system, which would be additional to those currently available under the control regulation. The EESC believes that the conditions that can reasonably be required need to be well defined and clearly delimited.

Brussels, 29 April 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

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| 12.9.2014 | EN | Official Journal of the European Union | C 311/73 |
| --- | --- | --- | --- |

12.9.2014

EN

Official Journal of the European Union

C 311/73

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Opinion of the European Economic and Social Committee on the ‘Proposal for a Directive of the European Parliament and of the Council on the cloning of animals of the bovine, porcine, ovine, caprine and equine species kept and reproduced for farming purposes’

COM(2013) 892 final — 2013/0433 (COD)

‘Proposal for a Council Directive on the placing on the market of food from animal clones’

COM(2013) 893 final — 2013/0434 (APP)

‘Proposal for a Regulation of the European Parliament and of the Council on novel foods’

COM(2013) 894 final — 2013/0435 (COD)

2014/C 311/12

Rapporteur: José María Espuny Moyano

On 16 January 2014 the European Parliament, and on 15 and 17 January 2014 the Council, decided to consult the European Economic and Social Committee, under Articles 43, 304 and 114 of the Treaty on the Functioning of the European Union (TFEU), on the

Proposal for a Directive of the European Parliament and of the Council on the cloning of animals of the bovine, porcine, ovine, caprine and equine species kept and reproduced for farming purposes

COM(2013) 892 final — 2013/0433 (COD)

Proposal for a Council Directive on the placing on the market of food from animal clones

COM(2013) 893 final — 2013/0434 (APP)

Proposal for a Regulation of the European Parliament and of the Council on novel foods

COM(2013) 894 final — 2013/0435 (COD).

The Section for Agriculture, Rural Development and the Environment, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 1 April 2014.

At its 498th plenary session, held on 29 and 30 April 2014 (meeting of 30 April), the European Economic and Social Committee adopted the following opinion by 174 votes to 2 with 5 abstentions.

1.   Conclusions and recommendations

1.1   Cloning

| 1.1.1 | The EESC believes it is necessary and appropriate to regulate cloning of animals in the EU with the aim of ensuring uniform conditions of production for farmers, while protecting the health and welfare of animals and the expectations of consumers. |
| --- | --- |

1.1.1

The EESC believes it is necessary and appropriate to regulate cloning of animals in the EU with the aim of ensuring uniform conditions of production for farmers, while protecting the health and welfare of animals and the expectations of consumers.

| 1.1.2 | Taking into account the opposition of the public and of consumer organisations, and the insufficient technical knowledge, the EESC supports the temporary suspension of animal cloning and imports of animal clones for farming purposes in the EU. |
| --- | --- |

1.1.2

Taking into account the opposition of the public and of consumer organisations, and the insufficient technical knowledge, the EESC supports the temporary suspension of animal cloning and imports of animal clones for farming purposes in the EU.

| 1.1.3 | The EESC points out that the suspension is not based on known health risks but on ethics and animal welfare. |
| --- | --- |

1.1.3

The EESC points out that the suspension is not based on known health risks but on ethics and animal welfare.

| 1.1.4 | The EESC believes that the ban should not apply to areas such as cloning for research purposes where the use of the technique is justified. |
| --- | --- |

1.1.4

The EESC believes that the ban should not apply to areas such as cloning for research purposes where the use of the technique is justified.

| 1.1.5 | The EESC believes that the temporary ban could be reviewed in the future, purely taking into account the experience that Member States gain in implementing the legislation, scientific and technical progress and the development of the international environment, as well as the opinion of the public and of consumer organisations. |
| --- | --- |

1.1.5

The EESC believes that the temporary ban could be reviewed in the future, purely taking into account the experience that Member States gain in implementing the legislation, scientific and technical progress and the development of the international environment, as well as the opinion of the public and of consumer organisations.

| 1.1.6 | The EESC questions whether adequate techniques for distinguishing between cloned animals and animals produced using techniques currently permitted in the EU, particularly as regards imports, really exist; in this connection it demands that the full traceability requirement be extended to imports, as this is the only reliable guarantee of an animal's origin and an indispensable tool for managing health risks. |
| --- | --- |

1.1.6

The EESC questions whether adequate techniques for distinguishing between cloned animals and animals produced using techniques currently permitted in the EU, particularly as regards imports, really exist; in this connection it demands that the full traceability requirement be extended to imports, as this is the only reliable guarantee of an animal's origin and an indispensable tool for managing health risks.

| 1.1.7 | The EESC reiterates that the legislation applicable in the EU must also apply to imported animals so that our farmers are not placed at a disadvantage compared to farmers in third countries. |
| --- | --- |

1.1.7

The EESC reiterates that the legislation applicable in the EU must also apply to imported animals so that our farmers are not placed at a disadvantage compared to farmers in third countries.

| 1.1.8 | The EESC considers that cloning could pose a threat to quality production and the sustainability of Europe's economic and agri-food sector. Moreover, widespread cloning for agricultural purposes risks transferring wealth from workers and producers to the research centres that hold the patents. |
| --- | --- |

1.1.8

The EESC considers that cloning could pose a threat to quality production and the sustainability of Europe's economic and agri-food sector. Moreover, widespread cloning for agricultural purposes risks transferring wealth from workers and producers to the research centres that hold the patents.

1.2   Marketing of food from animal clones

| 1.2.1 | The EESC believes it is necessary and appropriate to establish unambiguous provisions on temporarily prohibiting food from animal clones from being placed on the market, in order to take into account the different perceptions of citizens and of consumer organisations. |
| --- | --- |

1.2.1

The EESC believes it is necessary and appropriate to establish unambiguous provisions on temporarily prohibiting food from animal clones from being placed on the market, in order to take into account the different perceptions of citizens and of consumer organisations.

| 1.2.2 | The EESC supports the temporary suspension of the marketing of food from animal clones in the EU to complement the temporary ban on the technique of animal cloning. |
| --- | --- |

1.2.2

The EESC supports the temporary suspension of the marketing of food from animal clones in the EU to complement the temporary ban on the technique of animal cloning.

| 1.2.3 | The EESC believes that the ban could be reviewed in future, taking into account the experience that Member States gain in implementing the legislation, scientific and technical progress and the development of the international environment, as well as the opinion of the public and of consumer organisations. |
| --- | --- |

1.2.3

The EESC believes that the ban could be reviewed in future, taking into account the experience that Member States gain in implementing the legislation, scientific and technical progress and the development of the international environment, as well as the opinion of the public and of consumer organisations.

| 1.2.4 | The EESC stresses that, given that animal cloning is permitted in certain non-EU countries, the Member States must adopt all appropriate measures to prevent foods obtained in third countries from animal clones being imported into the EU. |
| --- | --- |

1.2.4

The EESC stresses that, given that animal cloning is permitted in certain non-EU countries, the Member States must adopt all appropriate measures to prevent foods obtained in third countries from animal clones being imported into the EU.

| 1.2.5 | The EESC is concerned at the lack of adequate systems for detecting the existence of meat and milk from cloned animals in food imported from third countries; in this connection it demands that the full traceability requirement be extended to imports, as this is the only reliable guarantee of an animal's origin and an indispensable tool for managing health risks. |
| --- | --- |

1.2.5

The EESC is concerned at the lack of adequate systems for detecting the existence of meat and milk from cloned animals in food imported from third countries; in this connection it demands that the full traceability requirement be extended to imports, as this is the only reliable guarantee of an animal's origin and an indispensable tool for managing health risks.

| 1.2.6 | Recognising the need to safeguard consumer confidence and given the lack of sufficiently accurate analytical instruments to distinguish between clones and their offspring and conventionally-bred animals, and of clear and reliable traceability and labelling systems, the Committee warns of possible future negative repercussions on the market in animal products. |
| --- | --- |

1.2.6

Recognising the need to safeguard consumer confidence and given the lack of sufficiently accurate analytical instruments to distinguish between clones and their offspring and conventionally-bred animals, and of clear and reliable traceability and labelling systems, the Committee warns of possible future negative repercussions on the market in animal products.

1.3   Novel foods

| 1.3.1 | The EESC considers an update of legislation on novel foods to be necessary and appropriate, as this would achieve both greater legal certainty and greater food safety, and it therefore endorses the Commission proposal, although a number of suggestions should be taken into account. |
| --- | --- |

1.3.1

The EESC considers an update of legislation on novel foods to be necessary and appropriate, as this would achieve both greater legal certainty and greater food safety, and it therefore endorses the Commission proposal, although a number of suggestions should be taken into account.

| 1.3.2 | The EESC believes that the status of novel food, based on the fact that the food ‘was not used for human consumption to a significant degree within the Union’, should be defined more precisely, and appropriate requirements established. |
| --- | --- |

1.3.2

The EESC believes that the status of novel food, based on the fact that the food ‘was not used for human consumption to a significant degree within the Union’, should be defined more precisely, and appropriate requirements established.

| 1.3.3 | The EESC considers that the implications of the generic authorisation model envisaged in the proposal should be carefully explored, as on no account must it be allowed to jeopardise future innovation. |
| --- | --- |

1.3.3

The EESC considers that the implications of the generic authorisation model envisaged in the proposal should be carefully explored, as on no account must it be allowed to jeopardise future innovation.

| 1.3.4 | The EESC considers that the procedure for authorising traditional foods from third countries should be simpler and based on clear criteria that can provide evidence of the ‘history of safe food use in a third country’ referred to in the proposal. |
| --- | --- |

1.3.4

The EESC considers that the procedure for authorising traditional foods from third countries should be simpler and based on clear criteria that can provide evidence of the ‘history of safe food use in a third country’ referred to in the proposal.

| 1.3.5 | The EESC believes that Union lists should be clear, up-to-date and easily accessed by both consumers and operators. Lists should include, as well as authorised traditional foods from third countries and novel foods, cases where authorisation has been denied along with the reasons for this rejection of the application. This will encourage transparency and ensure the necessary legal certainty. |
| --- | --- |

1.3.5

The EESC believes that Union lists should be clear, up-to-date and easily accessed by both consumers and operators. Lists should include, as well as authorised traditional foods from third countries and novel foods, cases where authorisation has been denied along with the reasons for this rejection of the application. This will encourage transparency and ensure the necessary legal certainty.

| 1.3.6 | The EESC notes that no system or timeframe is envisaged for review of the list, and therefore proposes that the same regulation establish a mechanism for reviewing the list when necessary. |
| --- | --- |

1.3.6

The EESC notes that no system or timeframe is envisaged for review of the list, and therefore proposes that the same regulation establish a mechanism for reviewing the list when necessary.

| 1.3.7 | It considers that businesses' efforts in the field of R+D+I should be safeguarded by the authorities through adequate data protection. It therefore suggests that the conditions for this protection be related to the applicant rather than to the Commission's opinion of the application. |
| --- | --- |

1.3.7

It considers that businesses' efforts in the field of R+D+I should be safeguarded by the authorities through adequate data protection. It therefore suggests that the conditions for this protection be related to the applicant rather than to the Commission's opinion of the application.

| 1.3.8 | The EESC would like to make it clear that the transitional measures should also cater for products that do not comply with the requirements laid down by the regulation on the date of its entry into force. |
| --- | --- |

1.3.8

The EESC would like to make it clear that the transitional measures should also cater for products that do not comply with the requirements laid down by the regulation on the date of its entry into force.

2.   Gist of the proposals

2.1   Cloning

| 2.1.1 | The proposal lays down rules for the cloning of animals for farming purposes in the EU and the placing on the market of embryo clones and animal clones. |
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2.1.1

The proposal lays down rules for the cloning of animals for farming purposes in the EU and the placing on the market of embryo clones and animal clones.

| 2.1.2 | To this end, the following definitions apply:






  (a) | animals ‘kept and reproduced for farming purposes’ means animals kept and reproduced for the production of food, wool, skin or fur or for other farming purposes. It shall not include animals kept and reproduced exclusively for other purposes such as research, the production of medicinal products and medical devices, the preservation of rare breeds or endangered species, sporting and cultural events; |
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2.1.2

To this end, the following definitions apply:

(a)

animals ‘kept and reproduced for farming purposes’ means animals kept and reproduced for the production of food, wool, skin or fur or for other farming purposes. It shall not include animals kept and reproduced exclusively for other purposes such as research, the production of medicinal products and medical devices, the preservation of rare breeds or endangered species, sporting and cultural events;

| (b) | ‘Cloning’ means asexual reproduction of animals with a technique whereby the nucleus of a cell of an individual animal is transferred into an oocyte from which the nucleus has been removed to create genetically identical individual embryos (‘embryo clones’), that can subsequently be implanted into surrogate mothers in order to produce populations of genetically identical animals (‘animal clone’); |
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(b)

‘Cloning’ means asexual reproduction of animals with a technique whereby the nucleus of a cell of an individual animal is transferred into an oocyte from which the nucleus has been removed to create genetically identical individual embryos (‘embryo clones’), that can subsequently be implanted into surrogate mothers in order to produce populations of genetically identical animals (‘animal clone’);

| (c) | ‘placing on the market’ means the first making available of an animal or a product on the internal market. |
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(c)

‘placing on the market’ means the first making available of an animal or a product on the internal market.

| 2.1.3 | Member States are to provisionally prohibit the cloning of animals and the placing on the market of animal clones and embryo clones. |
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2.1.3

Member States are to provisionally prohibit the cloning of animals and the placing on the market of animal clones and embryo clones.

| 2.1.4 | Animals kept and reproduced exclusively for other purposes such as research, the production of medicinal products and medical devices, the preservation of rare breeds or endangered species, and sporting and cultural events are explicitly excluded. |
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2.1.4

Animals kept and reproduced exclusively for other purposes such as research, the production of medicinal products and medical devices, the preservation of rare breeds or endangered species, and sporting and cultural events are explicitly excluded.

| 2.1.5 | Member States are to lay down rules on penalties applicable to infringements of the national provisions adopted pursuant to the directive. |
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2.1.5

Member States are to lay down rules on penalties applicable to infringements of the national provisions adopted pursuant to the directive.

2.2   Marketing of food from animal clones

| 2.2.1 | The proposal addresses consumer perceptions on the use of food from animal clones. |
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2.2.1

The proposal addresses consumer perceptions on the use of food from animal clones.

| 2.2.2 | It provides for provisional prohibition of the placing on the market of food from animal clones. |
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2.2.2

It provides for provisional prohibition of the placing on the market of food from animal clones.

| 2.2.3 | in which:






  (a) | ‘Cloning’ means asexual reproduction of animals with a technique whereby the nucleus of a cell of an individual animal is transferred into an oocyte from which the nucleus has been removed to create genetically identical individual embryos (‘embryo clones’), that can subsequently be implanted into surrogate mothers in order to produce populations of genetically identical animals (‘animal clone’); |
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2.2.3

in which:

(a)

‘Cloning’ means asexual reproduction of animals with a technique whereby the nucleus of a cell of an individual animal is transferred into an oocyte from which the nucleus has been removed to create genetically identical individual embryos (‘embryo clones’), that can subsequently be implanted into surrogate mothers in order to produce populations of genetically identical animals (‘animal clone’);

| (b) | ‘food’ means food as defined in Article 2 of Regulation (EC) No 178/2002. |
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(b)

‘food’ means food as defined in Article 2 of Regulation (EC) No 178/2002.

| 2.2.4 | Importing of food of animal origin from third countries where food from animal clones can be legally placed on the market or exported is prohibited unless all the specific import conditions are met. |
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2.2.4

Importing of food of animal origin from third countries where food from animal clones can be legally placed on the market or exported is prohibited unless all the specific import conditions are met.

| 2.2.5 | The proposal ensures that food such as meat or milk from clones is not placed on the EU market. |
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2.2.5

The proposal ensures that food such as meat or milk from clones is not placed on the EU market.

| 2.2.6 | Member States are to lay down rules on penalties applicable to infringements of the national provisions adopted pursuant to the directive. |
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2.2.6

Member States are to lay down rules on penalties applicable to infringements of the national provisions adopted pursuant to the directive.

2.3   Novel foods

| 2.3.1 | The original European regulation dates from 1997 and is updated by this proposal. |
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2.3.1

The original European regulation dates from 1997 and is updated by this proposal.

| 2.3.2 | This proposal aims to ensure food safety, to protect public health and secure the functioning of the internal market, while contributing to innovation in the food sector. |
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2.3.2

This proposal aims to ensure food safety, to protect public health and secure the functioning of the internal market, while contributing to innovation in the food sector.

| 2.3.3 | It aims to streamline the authorisation procedure and improve its efficiency and transparency. It also clarifies the definition of a novel food and takes into consideration new technologies which have an impact on food. |
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2.3.3

It aims to streamline the authorisation procedure and improve its efficiency and transparency. It also clarifies the definition of a novel food and takes into consideration new technologies which have an impact on food.

| 2.3.4 | It introduces a faster and more proportionate safety assessment for traditional foods from third countries having a history of safe food use. |
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2.3.4

It introduces a faster and more proportionate safety assessment for traditional foods from third countries having a history of safe food use.

| 2.3.5 | It keeps the existing general criteria for defining novel food:






  ‘(a) | food that was not used for human consumption to a significant degree within the Community before 15 May 1997, including, in particular;






  (i) | food to which a new production process not used for food production within the Union before 15 May 1997 is applied, where that production process gives rise to significant changes in the composition or structure of the food which affect its nutritional value, the way it is metabolised or the level of undesirable substances; |
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2.3.5

It keeps the existing general criteria for defining novel food:

‘(a)

food that was not used for human consumption to a significant degree within the Community before 15 May 1997, including, in particular;

(i)

food to which a new production process not used for food production within the Union before 15 May 1997 is applied, where that production process gives rise to significant changes in the composition or structure of the food which affect its nutritional value, the way it is metabolised or the level of undesirable substances;

| (ii) | food containing or consisting of “engineered nanomaterials” as defined in Article 2(2)(t) of Regulation (EU) No 1169/2011; |
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(ii)

food containing or consisting of “engineered nanomaterials” as defined in Article 2(2)(t) of Regulation (EU) No 1169/2011;

| (iii) | vitamins, minerals and other substances used in accordance with Directive 2002/46/EC, Regulation (EC) No 1925/2006 or Regulation (EU) No 609/2013, where:
  a new production process has been applied as referred to in point (i) of this paragraph; or
  such substances contain or consist of “engineered nanomaterials”; |
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(iii)

vitamins, minerals and other substances used in accordance with Directive 2002/46/EC, Regulation (EC) No 1925/2006 or Regulation (EU) No 609/2013, where:

a new production process has been applied as referred to in point (i) of this paragraph; or

such substances contain or consist of “engineered nanomaterials”;

| (iv) | food used exclusively in food supplements within the Union before 15 May 1997, where it is intended to be used in foods other than food supplements as defined in point (a) of Article 2 of Directive 2002/46/EC.’ |
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(iv)

food used exclusively in food supplements within the Union before 15 May 1997, where it is intended to be used in foods other than food supplements as defined in point (a) of Article 2 of Directive 2002/46/EC.’

| 2.3.6 | The proposal also contains definitions of basic concepts such as ‘traditional food from a third country’ and ‘history of safe food use’. |
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2.3.6

The proposal also contains definitions of basic concepts such as ‘traditional food from a third country’ and ‘history of safe food use’.

| 2.3.7 | Novel foods are to be subject to safety evaluation and authorisation via a fully harmonised procedure. |
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2.3.7

Novel foods are to be subject to safety evaluation and authorisation via a fully harmonised procedure.

| 2.3.8 | The proposal stipulates that only novel foods included in the Union list of novel foods may be placed on the market in the EU, and only if they meet the following conditions:






  — | they do not, on the basis of the scientific evidence available, pose a safety concern; |
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2.3.8

The proposal stipulates that only novel foods included in the Union list of novel foods may be placed on the market in the EU, and only if they meet the following conditions:

—

they do not, on the basis of the scientific evidence available, pose a safety concern;

| — | they do not mislead the consumer; |
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—

they do not mislead the consumer;

| — | they are not nutritionally disadvantageous for the consumer in cases where they are intended to replace a traditional food. |
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—

they are not nutritionally disadvantageous for the consumer in cases where they are intended to replace a traditional food.

| 2.3.9 | The current system of individual authorisations is replaced by a system of generic authorisations. |
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2.3.9

The current system of individual authorisations is replaced by a system of generic authorisations.

| 2.3.10 | All applications for the authorisation of novel foods are to be submitted to the Commission, who will then request a scientific opinion on risk assessment from the European Food Safety Authority (EFSA). The Commission will consider the inclusion of a novel food in the Union list of novel foods on the basis of this opinion, and will be assisted in this task by the Standing Committee on the Food Chain and Animal Health (SCOFCAH). |
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2.3.10

All applications for the authorisation of novel foods are to be submitted to the Commission, who will then request a scientific opinion on risk assessment from the European Food Safety Authority (EFSA). The Commission will consider the inclusion of a novel food in the Union list of novel foods on the basis of this opinion, and will be assisted in this task by the Standing Committee on the Food Chain and Animal Health (SCOFCAH).

| 2.3.11 | For traditional foods from third countries, a safety assessment and risk management based on a history of safe food use in a third country for at least 25 years will be introduced. |
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2.3.11

For traditional foods from third countries, a safety assessment and risk management based on a history of safe food use in a third country for at least 25 years will be introduced.

| 2.3.12 | Where reasoned objections are presented concerning the safety of a traditional food from a third country, an EFSA assessment, followed by an EU authorisation procedure similar to the general procedure but with shorter deadlines, will be required. On the basis of the EFSA opinion, the Commission may impose post-market monitoring where necessary for food safety reasons. |
| --- | --- |

2.3.12

Where reasoned objections are presented concerning the safety of a traditional food from a third country, an EFSA assessment, followed by an EU authorisation procedure similar to the general procedure but with shorter deadlines, will be required. On the basis of the EFSA opinion, the Commission may impose post-market monitoring where necessary for food safety reasons.

| 2.3.13 | The proposal provides for the right to data protection for a maximum of five years, in duly justified cases. |
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2.3.13

The proposal provides for the right to data protection for a maximum of five years, in duly justified cases.

| 2.3.14 | Member States are to lay down the rules on penalties applicable to infringements of the national provisions adopted pursuant to the regulation. |
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2.3.14

Member States are to lay down the rules on penalties applicable to infringements of the national provisions adopted pursuant to the regulation.

3.   General comments

3.1   Cloning

| 3.1.1 | The EESC supports the proposal, taking note of the insufficient technical and scientific knowledge available, the problems relating to animal welfare and the opposition of the public and of consumers, although it considers that the temporary ban on cloning animals will, in due time, need to be reviewed to take into account improvements in the technique, scientific progress, the international environment and the need for the sectors involved to be competitive. |
| --- | --- |

3.1.1

The EESC supports the proposal, taking note of the insufficient technical and scientific knowledge available, the problems relating to animal welfare and the opposition of the public and of consumers, although it considers that the temporary ban on cloning animals will, in due time, need to be reviewed to take into account improvements in the technique, scientific progress, the international environment and the need for the sectors involved to be competitive.

| 3.1.2 | The EESC points out that Member States have undertaken ‘to ensure that the owners or keepers take all reasonable steps to ensure the welfare of animals under their care and to ensure that those animals are not caused any unnecessary pain, suffering or injury’ (1). |
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3.1.2

The EESC points out that Member States have undertaken ‘to ensure that the owners or keepers take all reasonable steps to ensure the welfare of animals under their care and to ensure that those animals are not caused any unnecessary pain, suffering or injury’ (1).

| 3.1.3 | The EESC believes it is extremely important to highlight the decisive role of the EFSA in assessing the potential risks associated with using the technique of animal cloning and its contribution to decisions relating to the use of the technique. |
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3.1.3

The EESC believes it is extremely important to highlight the decisive role of the EFSA in assessing the potential risks associated with using the technique of animal cloning and its contribution to decisions relating to the use of the technique.

| 3.1.4 | The EFSA has encountered animal welfare problems arising from the health of the surrogate mothers and of the clones themselves (high rate of miscarriages, dysfunctions of the placenta, implants in several surrogate mothers in order to obtain a clone, unusually large size of foetuses and stillbirths), making cloning a technique with a high mortality rate. |
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3.1.4

The EFSA has encountered animal welfare problems arising from the health of the surrogate mothers and of the clones themselves (high rate of miscarriages, dysfunctions of the placenta, implants in several surrogate mothers in order to obtain a clone, unusually large size of foetuses and stillbirths), making cloning a technique with a high mortality rate.

| 3.1.5 | Cloning presents risks to biodiversity and the genetic heritage, which will create problems in terms of resistance to emerging risks and new zoonotic agents entering Europe (e.g. Schmallenberg virus). |
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3.1.5

Cloning presents risks to biodiversity and the genetic heritage, which will create problems in terms of resistance to emerging risks and new zoonotic agents entering Europe (e.g. Schmallenberg virus).

| 3.1.6 | The EESC considers that cloning could pose a threat to quality production and the sustainability of Europe's economic and agri-food sector. Moreover, widespread cloning for agricultural purposes risks transferring wealth from workers and producers to the research centres that hold the patents. |
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3.1.6

The EESC considers that cloning could pose a threat to quality production and the sustainability of Europe's economic and agri-food sector. Moreover, widespread cloning for agricultural purposes risks transferring wealth from workers and producers to the research centres that hold the patents.

3.2   Marketing of food from animal clones

| 3.2.1 | The EESC welcomes the proposal, taking note of the insufficient technical and scientific knowledge available, the problems relating to animal welfare and the opposition of the public and of consumer organisations, although it considers that the temporary ban on the placing on the market of food from animal clones will need to be reviewed to take into account improvements in the technique, scientific progress, the international environment and the need for the sectors involved to be competitive. |
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3.2.1

The EESC welcomes the proposal, taking note of the insufficient technical and scientific knowledge available, the problems relating to animal welfare and the opposition of the public and of consumer organisations, although it considers that the temporary ban on the placing on the market of food from animal clones will need to be reviewed to take into account improvements in the technique, scientific progress, the international environment and the need for the sectors involved to be competitive.

| 3.2.2 | Recognising the need to safeguard consumer confidence and given the lack of sufficiently accurate analytical instruments to distinguish between clones and their offspring and conventionally-bred animals, and of clear and reliable traceability and labelling systems, the Committee warns of possible future negative repercussions on the market in animal products. |
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3.2.2

Recognising the need to safeguard consumer confidence and given the lack of sufficiently accurate analytical instruments to distinguish between clones and their offspring and conventionally-bred animals, and of clear and reliable traceability and labelling systems, the Committee warns of possible future negative repercussions on the market in animal products.

| 3.2.3 | The EESC points out that no application has ever been submitted for an authorisation to market food produced by means of cloning techniques. |
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3.2.3

The EESC points out that no application has ever been submitted for an authorisation to market food produced by means of cloning techniques.

| 3.2.4 | The EESC highlights the role of the EFSA in assessing the potential risks associated with using the technique of cloning. |
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3.2.4

The EESC highlights the role of the EFSA in assessing the potential risks associated with using the technique of cloning.

| 3.2.5 | The EESC stresses that there was no indication in the ESFA's assessments of any difference in food safety between meat and milk from clones and their progeny and that from conventionally-bred animals. |
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3.2.5

The EESC stresses that there was no indication in the ESFA's assessments of any difference in food safety between meat and milk from clones and their progeny and that from conventionally-bred animals.

| 3.2.6 | The ban on the marketing of food from animal clones is not based on known health risks but on ethics and animal welfare. |
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3.2.6

The ban on the marketing of food from animal clones is not based on known health risks but on ethics and animal welfare.

3.3   Novel foods

| 3.3.1 | The EESC welcomes the proposal to revise the current legislation on novel foods, given that it dates from 1997 and significant innovation has taken place in the past 17 years. |
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3.3.1

The EESC welcomes the proposal to revise the current legislation on novel foods, given that it dates from 1997 and significant innovation has taken place in the past 17 years.

| 3.3.2 | The EESC stresses that the proposal must be clear and comprehensive enough for operators to be able to implement it. |
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3.3.2

The EESC stresses that the proposal must be clear and comprehensive enough for operators to be able to implement it.

| 3.3.3 | The EESC considers that it is necessary and appropriate to establish a centralised authorisation procedure and a harmonised system of penalties in order to make progress with the single market. |
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3.3.3

The EESC considers that it is necessary and appropriate to establish a centralised authorisation procedure and a harmonised system of penalties in order to make progress with the single market.

| 3.3.4 | It congratulates the Commission on giving the EFSA a key role in assessing the risk presented by novel foods, which will benefit the safety and protection of consumers and the industry itself. |
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3.3.4

It congratulates the Commission on giving the EFSA a key role in assessing the risk presented by novel foods, which will benefit the safety and protection of consumers and the industry itself.

| 3.3.5 | The EESC considers that the concept of food ‘used for human consumption to a significant degree’ is not sufficiently clear. |
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3.3.5

The EESC considers that the concept of food ‘used for human consumption to a significant degree’ is not sufficiently clear.

| 3.3.6 | It notes the need to establish clear criteria that can provide evidence of the ‘history of safe food use in a third country’, which is a pre-requisite for authorising traditional foods from third countries. |
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3.3.6

It notes the need to establish clear criteria that can provide evidence of the ‘history of safe food use in a third country’, which is a pre-requisite for authorising traditional foods from third countries.

| 3.3.7 | The EESC has concerns regarding the confidentiality of the data that the applicant submits to obtain authorisation of a novel food. |
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3.3.7

The EESC has concerns regarding the confidentiality of the data that the applicant submits to obtain authorisation of a novel food.

| 3.3.8 | It feels that the transitional measures provided for in the proposal need to be further developed and clarified. |
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3.3.8

It feels that the transitional measures provided for in the proposal need to be further developed and clarified.

| 3.3.9 | The EESC believes it is important for the Commission to be assisted by the SCOFCAH. |
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3.3.9

The EESC believes it is important for the Commission to be assisted by the SCOFCAH.

4.   Specific comments

4.1   Cloning

| 4.1.1 | Cloning is not a technique that is currently in use in the EU for farming purposes. |
| --- | --- |

4.1.1

Cloning is not a technique that is currently in use in the EU for farming purposes.

| 4.1.2 | However, it is used in countries such as Argentina, Brazil, Canada and the USA, although these countries have not been able to specify the extent of production of cloned animals. |
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4.1.2

However, it is used in countries such as Argentina, Brazil, Canada and the USA, although these countries have not been able to specify the extent of production of cloned animals.

| 4.1.3 | EU citizens have expressed a broadly negative opinion on the use of the cloning technique for reproduction for farming purposes. |
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4.1.3

EU citizens have expressed a broadly negative opinion on the use of the cloning technique for reproduction for farming purposes.

| 4.1.4 | Since the proposal provides for the provisional prohibition of animal cloning and placing on the market of animals and clones from embryos in the EU, the Member States must adopt the necessary sampling and monitoring measures to enforce the provision. |
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4.1.4

Since the proposal provides for the provisional prohibition of animal cloning and placing on the market of animals and clones from embryos in the EU, the Member States must adopt the necessary sampling and monitoring measures to enforce the provision.

| 4.1.5 | As yet no endorsed, accredited and harmonised analytical methodology exists in this field. We therefore feel it is necessary for the Commission and the Member States to start work on this aspect. |
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4.1.5

As yet no endorsed, accredited and harmonised analytical methodology exists in this field. We therefore feel it is necessary for the Commission and the Member States to start work on this aspect.

| 4.1.6 | The EESC also calls on the Member States to harmonise their rules on penalties applicable in the event of infringement, in order to avoid some countries becoming more permissive or lenient and the ensuing downward competition among them. |
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4.1.6

The EESC also calls on the Member States to harmonise their rules on penalties applicable in the event of infringement, in order to avoid some countries becoming more permissive or lenient and the ensuing downward competition among them.

4.2   Marketing of food from animal clones

| 4.2.1 | Since the proposal provides for the provisional prohibition of animal cloning and placing on the market of animals and clones from embryos in the EU, the Member States must adopt the necessary sampling and monitoring measures to enforce the provision. |
| --- | --- |

4.2.1

Since the proposal provides for the provisional prohibition of animal cloning and placing on the market of animals and clones from embryos in the EU, the Member States must adopt the necessary sampling and monitoring measures to enforce the provision.

| 4.2.2 | As yet no endorsed, accredited and harmonised analytical methodology exists in this field. We therefore feel it is necessary for the Commission and the Member States to start work on this aspect. |
| --- | --- |

4.2.2

As yet no endorsed, accredited and harmonised analytical methodology exists in this field. We therefore feel it is necessary for the Commission and the Member States to start work on this aspect.

4.3   Novel foods

4.3.1   Definition of novel food

The EESC considers that the proposal's definition of novel food is based on consumption, and that it should be more precise in order to avoid food products that are not novel foods (e.g. pizza with new ingredients) being included.

4.3.2   Concept of significant change

The EESC notes that the criteria for establishing what is meant by ‘significant change’ should be set out in detail, so as to be able to determine whether a novel food falls within the scope of the proposal.

4.3.3   Concept of ‘human consumption to a significant degree’

The EESC is concerned by the concept of ‘human consumption to a significant degree’ because of its ambiguity (within a region?, country?, geographical area?, in a specific community?).

4.3.4   Centralised authorisation procedure

In a previous opinion (2) which is essentially still valid, the EESC pointed out in this connection: ‘Centralising the assessment and authorisation of novel foods (involving the EFSA and the European Commission) is essential, but a simple, clear, effective, detailed procedure with deadlines also needs to be established ...’.

Although the proposal specifies some timeframes (e.g. nine months for the EFSA to issue its opinion, another nine months for the Commission to adopt the corresponding implementing act to authorise a novel food), greater clarity and precision are needed so that the operator is aware of the details of where the application submitted is the process.

4.3.5   Lists

In the same opinion the EESC commented with regard to lists: ‘The initiative to draw up lists of novel foods (...) will help to improve consumer information and provide operators with greater legal certainty. The list-based model is by no means new, since the use of such lists has become increasingly common (for example, the Regulation on nutrition and health claims and the Regulation on the addition of vitamins and minerals to foods, amongst others)’.

This comment still applies, notwithstanding the fact that only one list is currently being proposed by the Commission rather than two separate lists.

4.3.6   Protection of intellectual property

In the above opinion the EESC stated: ‘Developing novel foods requires considerable commitment to and investment in R&D on the part of businesses and they therefore require not only straightforward, swift and economically feasible procedures; knowledge and developments must also be protected to ensure that competitiveness does not suffer. No clear definition is provided for the scope of the data protection to which, according to the proposal, businesses will be entitled (it refers only to authorisations, what becomes of applications that are ultimately rejected, etc.)’.

The opinion goes on to say: ‘Providing the future regulation with a tool such as data protection will help to give businesses some security as regards the economic and human resources they channel into new projects. They will see data protection as a tool that affords them the protection they need to continue innovating and to become increasingly competitive, given the ever-more demanding nature of both the market and consumers’.

These comments continue to apply.

Brussels, 30 April 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

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(1)  Council Directive 98/58/EC (Article 3).

1

(2)  OJ C 224, 30.8.2008, p.81.

2

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| 12.9.2014 | EN | Official Journal of the European Union | C 311/82 |
| --- | --- | --- | --- |

12.9.2014

EN

Official Journal of the European Union

C 311/82

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Opinion of the European Economic and Social Committee on the communication from the Commission — ‘Building the Transport Core Network: Core Network Corridors and Connecting Europe Facility’

COM(2013) 940 final

2014/C 311/13

Rapporteur: Mr Coulon

Co-Rapporteur: Mr Back

On 13 February 2014 the European Commission decided to consult the European Economic and Social Committee, under Article 304 of the Treaty on the Functioning of the European Union, on the

Communication from the Commission — Building the Transport Core Network: Core Network Corridors and Connecting Europe Facility

COM(2013) 940 final.

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

At its 498th plenary session, held on 29 and 30 April 2014 (meeting of 29 April), the European Economic and Social Committee adopted the following opinion by 209 votes to 4 with 4 abstentions.

1.   Conclusions and recommendations

| 1.1 | The EESC welcomes the Communication as a significant and helpful support for the implementation of the Core Network Corridors and the predefined projects in them, as defined in Part I of Annex I to the Regulation establishing the Connecting Europe Facility (the CEF Regulation (EU) No 1316/2013), on the basis of the criteria set out in the Regulation on Union Guidelines for the development of the trans — European transport network and repealing Decision No 661/2010/EU (the Guidelines — Regulation (EU) No 1315/2013). |
| --- | --- |

1.1

The EESC welcomes the Communication as a significant and helpful support for the implementation of the Core Network Corridors and the predefined projects in them, as defined in Part I of Annex I to the Regulation establishing the Connecting Europe Facility (the CEF Regulation (EU) No 1316/2013), on the basis of the criteria set out in the Regulation on Union Guidelines for the development of the trans — European transport network and repealing Decision No 661/2010/EU (the Guidelines — Regulation (EU) No 1315/2013).

| 1.2 | The EESC appreciates the Communications’ focus on the governance system as the key driver of efficient implementation and the support it provides for the development of the work plans for the Core Network Corridors as a step toward coordinated cross border planning in the corridors to achieve coherent capacity and avoid bottlenecks. |
| --- | --- |

1.2

The EESC appreciates the Communications’ focus on the governance system as the key driver of efficient implementation and the support it provides for the development of the work plans for the Core Network Corridors as a step toward coordinated cross border planning in the corridors to achieve coherent capacity and avoid bottlenecks.

| 1.3 | The EESC underscores the importance of harmonious and efficient interaction between the Coordinators, whose activity will be the key factor for efficient implementation, the Corridor Fora with their working groups and, in particular public and private stakeholders at different levels, including civil society. |
| --- | --- |

1.3

The EESC underscores the importance of harmonious and efficient interaction between the Coordinators, whose activity will be the key factor for efficient implementation, the Corridor Fora with their working groups and, in particular public and private stakeholders at different levels, including civil society.

| 1.4 | The EESC takes note that ensuring clear and coherent coordination will be an extremely demanding task, bearing in mind the geographical scope of the Core Network Corridors and the need to coordinate with other initiatives, for instance the Rail Freight Corridors established under Regulation (EC) 913/2010, the NAIADES II inland waterway development initiative, the Motorways of the Sea and the ERTMS rail traffic management system, as well as the need to engage with private and public stakeholders. It still seems that there are tools available, for instance the use of working groups, to resolve this problem. |
| --- | --- |

1.4

The EESC takes note that ensuring clear and coherent coordination will be an extremely demanding task, bearing in mind the geographical scope of the Core Network Corridors and the need to coordinate with other initiatives, for instance the Rail Freight Corridors established under Regulation (EC) 913/2010, the NAIADES II inland waterway development initiative, the Motorways of the Sea and the ERTMS rail traffic management system, as well as the need to engage with private and public stakeholders. It still seems that there are tools available, for instance the use of working groups, to resolve this problem.

| 1.5 | Bearing in mind the role of the EESC as a link between the EU institutions and civil society and considering the initiative to start a participative dialogue with civil society regarding the implementation of the 2011 Transport Policy White Paper (1), we consider that participation of an EESC representative in the work of each Corridor Forum would bring added value. |
| --- | --- |

1.5

Bearing in mind the role of the EESC as a link between the EU institutions and civil society and considering the initiative to start a participative dialogue with civil society regarding the implementation of the 2011 Transport Policy White Paper (1), we consider that participation of an EESC representative in the work of each Corridor Forum would bring added value.

| 1.6 | In this context, the EESC underscores the importance of the governance system being seen as understandable and transparent. The EESC trusts that adequate efforts will be made to ensure that this important objective is reached in order to improve public interest and public support for TEN-T implementation. |
| --- | --- |

1.6

In this context, the EESC underscores the importance of the governance system being seen as understandable and transparent. The EESC trusts that adequate efforts will be made to ensure that this important objective is reached in order to improve public interest and public support for TEN-T implementation.

| 1.7 | The EESC draws attention to the potential role of thorough and unbiased preliminary project studies as an element that may also play an important role as an element of a framework for a transparent dialogue. Consideration could also be given to the need for a conflict resolution mechanism. |
| --- | --- |

1.7

The EESC draws attention to the potential role of thorough and unbiased preliminary project studies as an element that may also play an important role as an element of a framework for a transparent dialogue. Consideration could also be given to the need for a conflict resolution mechanism.

| 1.8 | Nevertheless, the EESC sees fundamental weaknesses in the effectiveness of a governance system that at each decision making point is entirely dependent on consent of the Member States and that is not backed up by a strong legal enforcement system when the aims set out in the Guidelines or in the CEF Regulation are not adequately implemented. |
| --- | --- |

1.8

Nevertheless, the EESC sees fundamental weaknesses in the effectiveness of a governance system that at each decision making point is entirely dependent on consent of the Member States and that is not backed up by a strong legal enforcement system when the aims set out in the Guidelines or in the CEF Regulation are not adequately implemented.

| 1.9 | Considering the soft law character of the governance system, built on the consensus of the Member States and the infrastructure owners as a necessary prerequisite for the basic decisions on infrastructure development and new building EU co — financing becomes particularly important. In the opinion of the EESC EU co — financing must consistently be used as a means to arrive at agreed construction agreements and their timely completion. Reference is made to point 4.7 below. |
| --- | --- |

1.9

Considering the soft law character of the governance system, built on the consensus of the Member States and the infrastructure owners as a necessary prerequisite for the basic decisions on infrastructure development and new building EU co — financing becomes particularly important. In the opinion of the EESC EU co — financing must consistently be used as a means to arrive at agreed construction agreements and their timely completion. Reference is made to point 4.7 below.

| 1.10 | Likewise the EESC is concerned by the slight budgetary resources available at EU level and the slow pace and unclear prospects under which alternative financing mechanisms such as project bonds and private public partnerships seem to be developing. |
| --- | --- |

1.10

Likewise the EESC is concerned by the slight budgetary resources available at EU level and the slow pace and unclear prospects under which alternative financing mechanisms such as project bonds and private public partnerships seem to be developing.

2.   Introduction

| 2.1 | In December 2013 the European Parliament and the Council adopted the Guidelines and the CEF Regulation. |
| --- | --- |

2.1

In December 2013 the European Parliament and the Council adopted the Guidelines and the CEF Regulation.

| 2.2 | The Guidelines provide a new framework for building a multimodal cross-border infrastructure network to facilitate the resource-efficient and sustainable mobility of people and goods within the EU in order to improve accessibility and competitiveness in the European Union with a 2030/2050 horizon. |
| --- | --- |

2.2

The Guidelines provide a new framework for building a multimodal cross-border infrastructure network to facilitate the resource-efficient and sustainable mobility of people and goods within the EU in order to improve accessibility and competitiveness in the European Union with a 2030/2050 horizon.

| 2.3 | EU co-financing of transport infrastructure projects and related priorities for the duration of the 2014 — 2020 Multiannual Financial Framework (MFF) are set out in the CEF Regulation. |
| --- | --- |

2.3

EU co-financing of transport infrastructure projects and related priorities for the duration of the 2014 — 2020 Multiannual Financial Framework (MFF) are set out in the CEF Regulation.

| 2.4 | Together, the Guidelines and the CEF Regulation are an important element in the implementation of the goals of the 2011 White Paper on Transport Policy. |
| --- | --- |

2.4

Together, the Guidelines and the CEF Regulation are an important element in the implementation of the goals of the 2011 White Paper on Transport Policy.

| 2.5 | The main objectives of the Communication Building the Transport Core Network: Core Network Corridors and Connecting Europe Facility (COM(2013) 940) (The Communication) are as follows:






  — | Explain how the Commission intends to support the implementation of the Core Network Corridors and their management structure. |
| --- | --- | --- |

2.5

The main objectives of the Communication Building the Transport Core Network: Core Network Corridors and Connecting Europe Facility (COM(2013) 940) (The Communication) are as follows:

—

Explain how the Commission intends to support the implementation of the Core Network Corridors and their management structure.

| — | Provide information about the available budget, development of financing instruments and financing priorities. |
| --- | --- |

—

Provide information about the available budget, development of financing instruments and financing priorities.

| — | Provide guidance to applicants/beneficiaries about project management and the expectations of the Commission. |
| --- | --- |

—

Provide guidance to applicants/beneficiaries about project management and the expectations of the Commission.

| 2.6 | To accompany the Communication, the Commission has published a Commission Staff Working Document that sets out the planning method used when defining the comprehensive and core networks set out in the Guidelines (SWD (2013)542). |
| --- | --- |

2.6

To accompany the Communication, the Commission has published a Commission Staff Working Document that sets out the planning method used when defining the comprehensive and core networks set out in the Guidelines (SWD (2013)542).

3.   Main elements of the Communication

| 3.1 | The Communication provides an explanation of the role and functioning of the Core Network Corridors. It highlights the role of the European Coordinators, and that of the Corridor Forum, possibly complemented by working groups, as a consultative body and a link between the Coordinator and the EU Member States, authorities at all levels and other stakeholders. |
| --- | --- |

3.1

The Communication provides an explanation of the role and functioning of the Core Network Corridors. It highlights the role of the European Coordinators, and that of the Corridor Forum, possibly complemented by working groups, as a consultative body and a link between the Coordinator and the EU Member States, authorities at all levels and other stakeholders.

| 3.2 | The role of the Coordinator and the Forum in drawing up the work plan for each corridor until December 2014 is described, as well as the decisive role of the Member States concerned throughout the implementation process, including the composition of the Forum and the approval of the work plan. The work plan is to be reviewed in 2017, at the same time as the work plan to be established by the Commission for the implementation of the CEF Regulation, and in 2023. The work plan will analyse the current situation of the corridor and define needs such as bottlenecks, interoperability problems, including administrative and similar obstacles to optimal and sustainable multimodal transport services, and propose solutions, including financing. |
| --- | --- |

3.2

The role of the Coordinator and the Forum in drawing up the work plan for each corridor until December 2014 is described, as well as the decisive role of the Member States concerned throughout the implementation process, including the composition of the Forum and the approval of the work plan. The work plan is to be reviewed in 2017, at the same time as the work plan to be established by the Commission for the implementation of the CEF Regulation, and in 2023. The work plan will analyse the current situation of the corridor and define needs such as bottlenecks, interoperability problems, including administrative and similar obstacles to optimal and sustainable multimodal transport services, and propose solutions, including financing.

| 3.3 | The Communication also briefly mentions the two horizontal coordinators, for the Motorways of the Sea and the common railway signalling system, ERTMS. |
| --- | --- |

3.3

The Communication also briefly mentions the two horizontal coordinators, for the Motorways of the Sea and the common railway signalling system, ERTMS.

| 3.4 | The Communication also underlines the importance of cooperation between Core Network Corridors and the nine Rail Freight Corridors created under Regulation (EC) 913/2010 and which should be represented in the Core Network Corridor Forum. Also other projects are mentioned and the Communication expresses the hope that stakeholders involved in these projects will take an interest in the Corridor fora and contribute to the Corridor work plan. |
| --- | --- |

3.4

The Communication also underlines the importance of cooperation between Core Network Corridors and the nine Rail Freight Corridors created under Regulation (EC) 913/2010 and which should be represented in the Core Network Corridor Forum. Also other projects are mentioned and the Communication expresses the hope that stakeholders involved in these projects will take an interest in the Corridor fora and contribute to the Corridor work plan.

| 3.5 | The Marco Polo Initiative will continue but will be financed as an innovative and sustainable freight services matter linked to the Guidelines and financed under the CEF Regulation. |
| --- | --- |

3.5

The Marco Polo Initiative will continue but will be financed as an innovative and sustainable freight services matter linked to the Guidelines and financed under the CEF Regulation.

| 3.6 | The remainder of the Communication deals with financing priorities under the CEF Regulation, with priority given to Corridor projects (cross-border, bottlenecks and multimodal). There is also a breakdown of funding priorities outside of the corridors, including a small amount for projects of the comprehensive network. |
| --- | --- |

3.6

The remainder of the Communication deals with financing priorities under the CEF Regulation, with priority given to Corridor projects (cross-border, bottlenecks and multimodal). There is also a breakdown of funding priorities outside of the corridors, including a small amount for projects of the comprehensive network.

| 3.7 | The Communication indicates its management principles for grants and its expectations from projects. It indicates that the Commission retains the prerogative to fund a project partially if part of it falls outside the set priorities. Delays or mismanagement of projects may lead to funding being reduced or withdrawn and reallocated. Intensity of financing for works within the ceilings set out in the CEF Regulation will be largely based on cost/benefit analyses and their relevance with respect to the corridor work plans. |
| --- | --- |

3.7

The Communication indicates its management principles for grants and its expectations from projects. It indicates that the Commission retains the prerogative to fund a project partially if part of it falls outside the set priorities. Delays or mismanagement of projects may lead to funding being reduced or withdrawn and reallocated. Intensity of financing for works within the ceilings set out in the CEF Regulation will be largely based on cost/benefit analyses and their relevance with respect to the corridor work plans.

| 3.8 | Of the total EUR 26,3 billion available for TEN-T for the period 2014-2020, EUR 11,3 billion are reserved for cohesion countries. The amount reserved for cohesion countries will go entirely to predefined projects on the core network in those countries, as defined in Annex I to the CEF Regulation. Allocation will be consistent with the principles of the Cohesion Fund as regards allocation by country during the years 2014- 2016. Financing intensity will be higher than the normal TEN-T ceilings, since cohesion fund principles will apply. Otherwise governance and management principles will be the same. A special effort to support programme activities in cohesion countries will be made. |
| --- | --- |

3.8

Of the total EUR 26,3 billion available for TEN-T for the period 2014-2020, EUR 11,3 billion are reserved for cohesion countries. The amount reserved for cohesion countries will go entirely to predefined projects on the core network in those countries, as defined in Annex I to the CEF Regulation. Allocation will be consistent with the principles of the Cohesion Fund as regards allocation by country during the years 2014- 2016. Financing intensity will be higher than the normal TEN-T ceilings, since cohesion fund principles will apply. Otherwise governance and management principles will be the same. A special effort to support programme activities in cohesion countries will be made.

| 3.9 | The Communication finally gives a brief description of development plans and resources reserved for the development of financial instruments. The conclusion is that the amount reserved for this project will largely depend on the market take-up of these instruments. |
| --- | --- |

3.9

The Communication finally gives a brief description of development plans and resources reserved for the development of financial instruments. The conclusion is that the amount reserved for this project will largely depend on the market take-up of these instruments.

4.   General comments

| 4.1 | The EESC welcomes the Communication as a valuable aid to stakeholders with an interest in the development of the TEN-T network. Although its added value may be highest for stakeholders with an interest in a predefined project in Annex I to the CEF Regulation and who are on or involved in a Core Network Corridor, it is also of interest to other actors. |
| --- | --- |

4.1

The EESC welcomes the Communication as a valuable aid to stakeholders with an interest in the development of the TEN-T network. Although its added value may be highest for stakeholders with an interest in a predefined project in Annex I to the CEF Regulation and who are on or involved in a Core Network Corridor, it is also of interest to other actors.

| 4.2 | On a number of points the Communication goes beyond the text of the Guidelines and of the CEF Regulation and improves the possibilities for stakeholders to be proactive and optimise their planning. The EESC notes that a number of the issues raised in the Communication have been raised by the EESC in its opinions on the Guidelines proposal (2) and the CEF Regulation proposal (3). |
| --- | --- |

4.2

On a number of points the Communication goes beyond the text of the Guidelines and of the CEF Regulation and improves the possibilities for stakeholders to be proactive and optimise their planning. The EESC notes that a number of the issues raised in the Communication have been raised by the EESC in its opinions on the Guidelines proposal (2) and the CEF Regulation proposal (3).

| 4.3 | The EESC believes that the Communication has the necessary qualities to be a useful tool for supporting the implementation of the TEN-T Guidelines and to inspire behaviour patterns that will improve cross-border cooperation between those concerned as well as the synergy effects between the different programmes indicated in the Communication. |
| --- | --- |

4.3

The EESC believes that the Communication has the necessary qualities to be a useful tool for supporting the implementation of the TEN-T Guidelines and to inspire behaviour patterns that will improve cross-border cooperation between those concerned as well as the synergy effects between the different programmes indicated in the Communication.

| 4.4 | Nevertheless, the EESC wishes to make a number of observations with a view to clarifying certain points so that the Communication can serve its purpose even more effectively. |
| --- | --- |

4.4

Nevertheless, the EESC wishes to make a number of observations with a view to clarifying certain points so that the Communication can serve its purpose even more effectively.

| 4.5 | The Governance structure, with the Coordinator, the Corridor Forum and the work plan for each Core Network Corridor, has the capacity to accelerate the implementation of the Core Network Corridors and the execution of the predefined projects within them as foreseen. It is therefore important that the Governance structure be established and that it get down to work as soon as possible. The EESC therefore welcomes the Communication's efforts in terms of planning the start-up of the Governance system and the drawing up of the work plan. |
| --- | --- |

4.5

The Governance structure, with the Coordinator, the Corridor Forum and the work plan for each Core Network Corridor, has the capacity to accelerate the implementation of the Core Network Corridors and the execution of the predefined projects within them as foreseen. It is therefore important that the Governance structure be established and that it get down to work as soon as possible. The EESC therefore welcomes the Communication's efforts in terms of planning the start-up of the Governance system and the drawing up of the work plan.

| 4.6 | However, the EESC wishes to take this opportunity to express its regret that the governance system initially proposed for the Core Network Corridors has been somewhat weakened in comparison to the Commission Guidelines proposal (COM/2011/0650 final/2 — 2011/0294 (COD)). In the opinion of the EESC, an adequate implementation control is vital. |
| --- | --- |

4.6

However, the EESC wishes to take this opportunity to express its regret that the governance system initially proposed for the Core Network Corridors has been somewhat weakened in comparison to the Commission Guidelines proposal (COM/2011/0650 final/2 — 2011/0294 (COD)). In the opinion of the EESC, an adequate implementation control is vital.

| 4.7 | Given these circumstances, the EESC stresses the particular importance of a fixed construction planning that is coordinated and agreed between the European Commission, Member States and infrastructure owners. This will be a decisive factor of success for the improvement of the TEN T. In the opinion of the EESC it should be one of the main tasks of the coordinators to assist these coordination procedures and make them result in binding agreements, and to exercise their influence to have these agreements fulfilled. Payment of EU funding could be used to ensure both agreements and their implementation. |
| --- | --- |

4.7

Given these circumstances, the EESC stresses the particular importance of a fixed construction planning that is coordinated and agreed between the European Commission, Member States and infrastructure owners. This will be a decisive factor of success for the improvement of the TEN T. In the opinion of the EESC it should be one of the main tasks of the coordinators to assist these coordination procedures and make them result in binding agreements, and to exercise their influence to have these agreements fulfilled. Payment of EU funding could be used to ensure both agreements and their implementation.

| 4.8 | On the other hand, the EESC welcomes the provisions on engagement with public and private stakeholders in Article 50 of the Guidelines as a basis for a dialogue culture which is also given expression in the Communication (4). The EESC points out that it is important that a dialogue, also with the general public, starts early, to create transparency and build confidence. |
| --- | --- |

4.8

On the other hand, the EESC welcomes the provisions on engagement with public and private stakeholders in Article 50 of the Guidelines as a basis for a dialogue culture which is also given expression in the Communication (4). The EESC points out that it is important that a dialogue, also with the general public, starts early, to create transparency and build confidence.

| 4.9 | With respect to the action of the Coordinator, the EESC emphasises the importance of the Coordinator's duties and the opportunities inherent to that post to resolve problems and contribute to the advancement of the Corridor concerned. The Coordinators also have a significant responsibility to ensure that the development of the Corridors overall harmoniously becomes part of the development of a unified, technically interoperable, sustainable and productive European Transport Area. For this to happen, one important prerequisite is that the Coordinator is granted adequate secretarial resources. |
| --- | --- |

4.9

With respect to the action of the Coordinator, the EESC emphasises the importance of the Coordinator's duties and the opportunities inherent to that post to resolve problems and contribute to the advancement of the Corridor concerned. The Coordinators also have a significant responsibility to ensure that the development of the Corridors overall harmoniously becomes part of the development of a unified, technically interoperable, sustainable and productive European Transport Area. For this to happen, one important prerequisite is that the Coordinator is granted adequate secretarial resources.

| 4.10 | The EESC underlines that, both as a matter of credibility and in order to ensure maximum useful input, the Corridor Forum should contain representatives of all stakeholder groups, including national, regional and local authorities, market actors, employees from the sectors concerned, social partners and users. |
| --- | --- |

4.10

The EESC underlines that, both as a matter of credibility and in order to ensure maximum useful input, the Corridor Forum should contain representatives of all stakeholder groups, including national, regional and local authorities, market actors, employees from the sectors concerned, social partners and users.

| 4.11 | The EESC stresses the importance of coherence between the planning in the Corridor work plans and the multiannual work plan to be decided by the Commission under the CEF Regulation. The EESC assumes, however, that this will not pose a problem, given the common priorities set out in the Communication and the list of predefined projects in Annex I to the CEF Regulation. Since it would seem that the respective plans will be drawn up in parallel, the EESC stresses the importance of the instructions set out in the Communication in this regard, on the basis of the provisions of the Guidelines and the CEF Regulation. |
| --- | --- |

4.11

The EESC stresses the importance of coherence between the planning in the Corridor work plans and the multiannual work plan to be decided by the Commission under the CEF Regulation. The EESC assumes, however, that this will not pose a problem, given the common priorities set out in the Communication and the list of predefined projects in Annex I to the CEF Regulation. Since it would seem that the respective plans will be drawn up in parallel, the EESC stresses the importance of the instructions set out in the Communication in this regard, on the basis of the provisions of the Guidelines and the CEF Regulation.

| 4.12 | The EESC welcomes the importance that the Communication rightly attaches to the coordination of the Corridor activities with the Rail Freight Corridors (Regulation (EU) No 913/2010), the NAIADES II programme for inland waterways (COM/2013/0623 final), the ports initiative to improve the efficiency of ports (COM/2013/0295 final) and sustainability development projects, in order to avoid duplication of work and to create synergies. The EESC also regrets that there is no system for this coordination and no legal provision, with the exception of the obligation laid down in the Guidelines for cooperation between the Core Network Corridor and Rail Freight Corridors, where there is also a provision to the effect that relevant rail corridors should be represented in the Corridor Forum. The EESC wonders whether it might not be useful at least to ensure representation in the Corridor Forum of other projects or programmes with projects that are relevant for each Corridor. One example of such a project is ‘Swiftly Green’, which is a Green Corridor type of cross-border project with a geographical configuration that makes it relevant for the Nordic–Mediterranean Core Network Corridor. Given the importance that the Communication attaches to the Motorways of the Sea, this could also be the case with ongoing Motorways of the Sea projects on a given Corridor. In any case, the EESC maintains that work that is already carried out must be considered and existing infrastructures used as far as possible. |
| --- | --- |

4.12

The EESC welcomes the importance that the Communication rightly attaches to the coordination of the Corridor activities with the Rail Freight Corridors (Regulation (EU) No 913/2010), the NAIADES II programme for inland waterways (COM/2013/0623 final), the ports initiative to improve the efficiency of ports (COM/2013/0295 final) and sustainability development projects, in order to avoid duplication of work and to create synergies. The EESC also regrets that there is no system for this coordination and no legal provision, with the exception of the obligation laid down in the Guidelines for cooperation between the Core Network Corridor and Rail Freight Corridors, where there is also a provision to the effect that relevant rail corridors should be represented in the Corridor Forum. The EESC wonders whether it might not be useful at least to ensure representation in the Corridor Forum of other projects or programmes with projects that are relevant for each Corridor. One example of such a project is ‘Swiftly Green’, which is a Green Corridor type of cross-border project with a geographical configuration that makes it relevant for the Nordic–Mediterranean Core Network Corridor. Given the importance that the Communication attaches to the Motorways of the Sea, this could also be the case with ongoing Motorways of the Sea projects on a given Corridor. In any case, the EESC maintains that work that is already carried out must be considered and existing infrastructures used as far as possible.

| 4.13 | Similar issues as between different kinds of corridors or projects may arise when core network corridors cross or overlap. The EESC underlines that it is important that ways are found to deal with such situations in a transparent and resource efficient way. |
| --- | --- |

4.13

Similar issues as between different kinds of corridors or projects may arise when core network corridors cross or overlap. The EESC underlines that it is important that ways are found to deal with such situations in a transparent and resource efficient way.

| 4.14 | The EESC notes the inherent dualism between the Corridor Governance structure and financing decisions, which are taken by the Commission, according to specific criteria and independently of the Corridor Governance structure. In this regard, the EESC appreciates the statement in the Communication recognising the relevance of the Corridor work plans with respect to financing decisions. |
| --- | --- |

4.14

The EESC notes the inherent dualism between the Corridor Governance structure and financing decisions, which are taken by the Commission, according to specific criteria and independently of the Corridor Governance structure. In this regard, the EESC appreciates the statement in the Communication recognising the relevance of the Corridor work plans with respect to financing decisions.

| 4.15 | While noting the importance, in practical and formal terms, of the Core Network Corridors and their Governance structure, and the focus on them both in terms of administrative resources and financing, the EESC would reiterate the question already raised in its opinion on the proposal for the Guidelines as to whether the Core Network Corridors are not in fact a third and highest ranking category in the TEN-T network (5). |
| --- | --- |

4.15

While noting the importance, in practical and formal terms, of the Core Network Corridors and their Governance structure, and the focus on them both in terms of administrative resources and financing, the EESC would reiterate the question already raised in its opinion on the proposal for the Guidelines as to whether the Core Network Corridors are not in fact a third and highest ranking category in the TEN-T network (5).

| 4.16 | The EESC agrees with the priorities expressed in the Communication and takes note of the high priority given to rail and Motorway of the Sea links in particular between islands or peninsulas and the mainland and to measures to reduce the GHG footprint of transport. In this context, the EESC notes the sea links across the Baltic, in the North Sea across the Biscay and between a number of Mediterranean ports, all of which have the characteristic of shortening land transport distances and/or developing combined transport. |
| --- | --- |

4.16

The EESC agrees with the priorities expressed in the Communication and takes note of the high priority given to rail and Motorway of the Sea links in particular between islands or peninsulas and the mainland and to measures to reduce the GHG footprint of transport. In this context, the EESC notes the sea links across the Baltic, in the North Sea across the Biscay and between a number of Mediterranean ports, all of which have the characteristic of shortening land transport distances and/or developing combined transport.

| 4.17 | The EESC is concerned about the inadequacy of the EU budgetary resources available and the question marks surrounding the possibilities to develop alternative financing mechanisms, including project bonds and private public partnerships. |
| --- | --- |

4.17

The EESC is concerned about the inadequacy of the EU budgetary resources available and the question marks surrounding the possibilities to develop alternative financing mechanisms, including project bonds and private public partnerships.

5.   Specific comments

| 5.1 | The EESC notes that the sum of the amounts suggested for EU co-funding with respect to the priorities set out in the Communication seems to exceed the sum available for funding. There is nothing to indicate that the possibilities of using financial instruments have been taken into account or to what extent. |
| --- | --- |

5.1

The EESC notes that the sum of the amounts suggested for EU co-funding with respect to the priorities set out in the Communication seems to exceed the sum available for funding. There is nothing to indicate that the possibilities of using financial instruments have been taken into account or to what extent.

| 5.2 | The Communication attaches considerable importance to cost/benefit analyses as a tool for assessing a project. As regards projects in cohesion countries, the Communication refers to a specific method used for calculating cost/benefit when cohesion funds are being used. That method is not referred to with respect to non-cohesion countries, where reference is instead made to a recognised method. The EESC questions whether one or more recommended methods could not be suggested, for instance when calls are made. This might improve transparency and create a level playing field. It would mean going one step further that the publication of the underlying principles for assessment of cost–benefit and European added value provided for in Article 51 of the Guidelines. |
| --- | --- |

5.2

The Communication attaches considerable importance to cost/benefit analyses as a tool for assessing a project. As regards projects in cohesion countries, the Communication refers to a specific method used for calculating cost/benefit when cohesion funds are being used. That method is not referred to with respect to non-cohesion countries, where reference is instead made to a recognised method. The EESC questions whether one or more recommended methods could not be suggested, for instance when calls are made. This might improve transparency and create a level playing field. It would mean going one step further that the publication of the underlying principles for assessment of cost–benefit and European added value provided for in Article 51 of the Guidelines.

| 5.3 | The EESC in this context recalls the need to take into account social, environmental as well as economic aspects when studying projects, in accordance with the EU 2020 strategy. This includes making sure that planned infrastructure corresponds to actual needs and will be adequately used. |
| --- | --- |

5.3

The EESC in this context recalls the need to take into account social, environmental as well as economic aspects when studying projects, in accordance with the EU 2020 strategy. This includes making sure that planned infrastructure corresponds to actual needs and will be adequately used.

| 5.4 | The option raised in the CEF Regulation to increase the use of innovative financial instruments for TEN-T financing is very briefly dealt with in the Communication. The main issue raised is that of possible market acceptance, which so far appears to be an open question. The EESC takes note of this and refers back to its comments in its abovementioned Opinions on the Guidelines proposal and the CEF Regulation proposal and its Opinion on the Project Bond Initiative (6). The EESC in this context also draws attention to the favourable market reception of projects launched during the project bond test period and the upcoming evaluation of the project bonds trial period. |
| --- | --- |

5.4

The option raised in the CEF Regulation to increase the use of innovative financial instruments for TEN-T financing is very briefly dealt with in the Communication. The main issue raised is that of possible market acceptance, which so far appears to be an open question. The EESC takes note of this and refers back to its comments in its abovementioned Opinions on the Guidelines proposal and the CEF Regulation proposal and its Opinion on the Project Bond Initiative (6). The EESC in this context also draws attention to the favourable market reception of projects launched during the project bond test period and the upcoming evaluation of the project bonds trial period.

Brussels, 29 April 2014.

The President of the European Economic and Social Committee

Henri MALOSSE

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(1)  OJ C 299, 4.10.2012, p. 170.

1

(2)  OJ C 143, 22.5.2012, p. 130.

2

(3)  OJ C 143, 22.5.2012, p. 134.

3

(4)  OJ C 299, 4.10.2012, p. 170.

4

(5)  OJ C 143, 22.5.2012, p. 130.

5

(6)  OJ C 143, 22.5.2012, p. 134.

6

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