# EUR-Lex - 52013DC0179 - EN

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# 52013DC0179

**COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Second Report on the implementation of the EU Internal Security Strategy /* COM/2013/0179 final */**

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COMMUNICATION FROM THE COMMISSION TO
THE EUROPEAN PARLIAMENT AND THE COUNCIL

Second Report on the implementation of the
EU Internal Security Strategy

1.           Introduction

1.1.        Internal security in today’s
context

The EU’s
Internal Security Strategy is designed to enable Europe to respond to existing
challenges and emerging threats, according to a shared approach that involves
both EU actors and the national and local levels.

Underpinning the
strategy are the common values of respect for fundamental rights and the rule
of law, solidarity and mutual support. The Commission will continue to ensure
full respect of these values, in particular of the European Charter of
Fundamental Rights.

One of the
major threats to our internal security is organised crime and its detrimental
effects on the economy of the EU, including distortions in the internal market.

As an example, the United Nations Office on
Drugs and Crime (UNODC) estimates that criminal proceeds are likely to have
amounted to some 3.6 % of global GDP or around US$ 2.1 trillion in
2009. Corruption, fraud and smuggling lead to huge losses for the governments
of the EU Member States at a time when the need for a stable revenue and tax
base is essential to tackle their public deficits.

To go after the
money, and reclaim the proceeds of crime, continues to be a key aim of the EU’s
strategy for disrupting organised criminal networks.

The Commission
has already introduced initiatives and instruments to achieve this goal, such
as the Directive on the freezing and confiscation of the proceeds of crime in
the European Union, the Fourth Anti Money Laundering Directive, and the
Directive on the protection of the financial interests of the EU.

The
administrative approach, providing opportunities for detecting and responding
to criminal infiltration of the economy, also supports the aim of redressing
imbalances caused among other things by organised crime and creating the
conditions for the internal market to flourish. The recent establishment at
Europol of the European Cybercrime Centre (EC3) is designed to strengthen
Europe’s capability to protect citizens, businesses and governments and their
infrastructure from cyber-attacks that can cause staggering economic losses.

The ISS is
based on five strategic objectives, namely disrupting international crime
networks, preventing terrorism, enhancing cybersecurity, strengthening border
security and increasing resilience to crises and disasters. In the 2011 ISS implementation
report, the fight against organised crime and cybercrime were identified as two
main challenges to be addressed in the coming year. A lot has since been done,
together with actions under the other objectives of the strategy.

2.           The Internal Security Strategy in the
Past Year

2.1.        Strategic objective 1:
Disrupt international crime networks

The activities of organised crime networks
are thought to be more complex, diverse and international in scope than ever
before. For example, internet-facilitated organised crime will continue to
increase in line with the rising use of broadband internet and mobile devices.

The EU Policy Cycle on serious and
organised crime helps coordinate operational cooperation on crime phenomena
relevant for the whole of the EU. Member States act jointly to fight
prioritised cross-border crime, with the support of the EU agencies and
institutions. The priority crime phenomena are
identified through the threat assessments produced by Europol (notably, the
SOCTA), based on contributions from the Member States. Currently a short policy
cycle covering the period 2011-2013 is being implemented as a learning phase
for a full policy cycle spanning 2013-2017.

In early 2013 the Commission adopted proposals
for a Fourth Anti Money Laundering Directive[1]
together with a Fund Transfer Regulation[2].
The latter will be supplemented, later in 2013, by a proposal for a
Directive on the criminalisation of money laundering. This package will address
new risks and threats, notably by enhancing the transparency of legal entities.
Actions against money laundering are also developed outside the EU by the
External Action Service in cooperation with regional platforms in Africa and
Latin America.

A proposal for a Directive on the
counterfeiting of currencies[3]
was also adopted in early 2013. The proposal lays down in particular new
criminal sanctions. Another important feature is the obligation of the Member
States to make effective investigative tools available for detecting currency
counterfeiting cases, equivalent to those used to combat organised or other
serious crime.

The proposals for a Directive on the fight against fraud to the Union’s financial interests
by means of criminal law[4] and a Directive
on criminal sanctions for insider dealing and market manipulation[5] are additional criminal law tools that address key vulnerabilities
pertaining to trade in the internal market and financial markets, respectively.

The Commission has continued to promote a
new EU anti-corruption strategic initiative. This follows a two-fold
approach: an ‘EU Anti-Corruption Report’ to assess Member States’ efforts
against corruption on a regular basis, and a stronger focus on corruption
across internal and external EU policy fields. A group of 17 experts on
corruption and a network of local research correspondents in all Member States were
set up to prepare the first EU Anti-Corruption Report to be presented in 2013.

The European National Integrity Systems (ENIS) project, co-financed
by the Commission, was completed by Transparency International in 2012,
covering 23 EU Member States, Norway and Switzerland. A total of 13 institutions
and sectors in each country were analysed and scored for their capacity to cope
with corruption. Transparency International published individual country
assessments and a comparative analytical report. The recommendations and
conclusions of the ENIS assessments are among the sources considered in the
work on the EU Anti-Corruption Report.

Confiscation of criminal wealth can
effectively combat crime as it attacks the financial incentive of criminals,
protects the economy against criminal infiltration and corruption, and helps
restore social justice. A proposal for a Directive on the Freezing and
Confiscation of Proceeds of Crime in the EU[6]
was adopted by the Commission to make it easier to freeze and confiscate the profits
from serious and organised crime in the European Union through common minimum
rules, and thus protect the licit economy.

Efforts at the EU level go hand-in-hand
with Member State initiatives, such as the establishment of new asset recovery
offices and teams in Austria, Romania and Estonia, and Europol’s support to
Member States through the Europol Criminal Assets Bureau. Some Member States
have also put in place mechanisms to re-use confiscated assets for public and
social purposes.

The Spanish Centre of Excellence on Asset Recovery and Training
(CEART) project, co-financed by the European Commission, produced a White Book
on Asset Recovery Offices which describes in detail the activities of each Office.
The CEART project also included an international training course on asset
recovery and financial investigations which was among the first pan-European
courses available for asset recovery practitioners.

The European Union concluded new agreements
with the United States and Australia on the use and transfer of Passenger
Name Records (PNR)[7],
and is close to concluding negotiations with Canada. These agreements
enable data to be analysed by our partners to prevent, detect and investigate
serious cross-border crimes, including terrorist offences. PNR data, not least by
allowing the identification of persons previously ‘unknown’ to law enforcement
authorities but posing a security risk, help disrupt criminal networks faster
and more effectively.

The EU Strategy towards the Eradication
of Trafficking in Human Beings 2012-2016, adopted in June 2012,
concentrates on increased prosecution of traffickers, assistance to and
protection of victims of trafficking and prevention of trafficking in human
beings, expanding and complementing the Directive adopted in 2011[8]. The EU Anti-Trafficking
Coordinator has a key responsibility in the implementation of the Strategy with
a view to improving coordination and coherence among relevant actors. The
Operational Action Plan on Trafficking of Human Beings, co-led by the
United Kingdom and the Netherlands, is one of the eight priority areas in the
EU Policy Cycle on serious and organised crime. To enhance focus and coherence
in the external dimension of the EU’s work on trafficking in human beings, a
list of priority non-member countries was agreed by the Member States, in close
cooperation with the Commission, the European External Action Service and the
EU agencies.

Cross-border information exchange within the EU is essential to the fight against serious and
cross-border crime. There is, however, scope for improvement. In its
Communication on the European Information Exchange Model (EIXM),
the Commission sets out a blueprint for better implementation of existing EU
instruments, more systematic use of the Europol channel for information
exchange, and national Single Points of Contact bringing together the main
channels for information exchange[9].

The new EU drugs strategy 2013 – 2020 focuses among others on the dynamics in the illicit drug markets,
including shifting drug trafficking routes, cross-border organised crime and
the use of new communication technologies as a facilitator for the distribution
of illicit drugs and new psychoactive substances. It has a number of objectives,
among which to contribute to a measurable reduction of the demand for drugs, of
drug dependence and of drug-related health and social risks and harms; to
contribute to a disruption of the illicit drugs market and a measurable
reduction of the availability of illicit drugs; to encourage coordination
through active discourse and analysis of developments and challenges in the
field of drugs at EU and international level

The ‘EU Drug Markets’ report
launched in January 2013 was a major step forward in coordination between
agencies in the home affairs area to combat organised crime and illicit drug
trafficking. Produced jointly by the European Monitoring Centre for Drugs and
Drug Addiction (EMCDDA) and Europol, the report highlighted a number of new
trends, including mobile amphetamine and ecstasy production and the explosive
growth of new psychoactive substances that are aggressively marketed at young
people via the internet. Pan-European cooperation and clear understanding of
drug market developments are essential to effective law enforcement in this
fast-changing area.

Europol
plays an important role in facilitating cross-border information exchange in
the EU through the provision of information exchange and storage systems and a
range of operational support services and analytical products. By the end of
the third quarter of 2012, Europol had facilitated the exchange of over 200 000
operational messages and almost 12 000 cases had been initiated. Europol
supported an increasing number[10] of high-profile operations in the Member States through the
provision of operational support services and over 600 operational analysis
reports. Contributions of information by Member States to the Analysis Work
Files increased by 40 per cent overall following the implementation of the priorities
agreed in the EU Policy Cycle context, and increased by as much as 60 per cent
in the area of trafficking in human beings.

Cross-border cooperation and information
exchange is also supported by the EU-level training provided by Cepol.
In 2012, Cepol provided training to almost 6 000 participants in more than
100 different training activities on various topics ranging from financial
crime and drugs trafficking to JITs, trafficking in human beings and cybercrime.

Eurojust
remains an important actor in judicial cooperation in criminal cases. The fight
against serious and organised crime has been and continues to be a priority for
Eurojust casework. Organised crime groups appear, not only as a stand-alone
feature, but also as a cross-cutting characteristic that adds a more serious
component to other crimes. In 2012, 231 cases related to organised crime were
registered at Eurojust compared to 197 cases in 2011.

Another effective tool in tracing criminals
is the use of Joint Investigation Teams (JITs). The financing provided
by Eurojust facilitates the establishment of JITs based on operational needs
also at short notice. Until February 2013, Eurojust has supported, via the
second JIT Funding Project, 87 different JITs based on 252 funding applications
received. Most JITs focus on drugs and human trafficking, but they also
targeted money laundering, fraud, corruption and organised robbery.

The JIT ‘Tokyo case’ was set up between Belgium, France and the
United Kingdom, with the participation of Eurojust and Europol, to investigate
a network of couriers recruited by an organised crime ring in Belgium and
France for international drug trafficking from Brazil and some central African
countries to Japan via London. A joint operation took place, with several
arrests in Belgium and the UK. Two individuals were subsequently sentenced to
eight years imprisonment and a fine of € 3 780 and six years and six
months imprisonment and a fine of € 30 000, respectively.

The way
forward in 2013

The Commission
will:

·
publish the first EU Anti-Corruption Report,
including recommendations for Member States;

·
propose a Directive on criminal penalties for
money laundering;

·
propose a reform of Eurojust;

·
develop a political initiative to combat
illicit trafficking in firearms to safeguard the internal security of the EU;

·
propose two legislative acts amending Council
Decision 2005/387/JHA of 10 May 2005 on the information exchange,
risk-assessment and control of new psychoactive substances and Council
Framework Decision 2004/757/JHA of 25 October 2004 laying down minimum
provisions on the constituent elements of criminal acts and penalties in the
field of illicit drug trafficking;

·
present a Regulation on setting up a European
Public Prosecutor’s Office in order to improve the protection of the European
Union's budget and enhance criminal prosecutions in this area;

·
adopt a Communication on a comprehensive
strategy to fight cigarette smuggling.

Member States
are encouraged to:

·
make swift progress in negotiating the
proposal for the reform of Europol and Cepol, combined with a stronger emphasis
on training of law enforcement officials, to strengthen cross-border
cooperation;

·
conclude the discussions with the European
Parliament on the Directive on the freezing and confiscation of proceeds of
crime in the EU and on the Directive on the use of PNR data for law enforcement
purposes;

·
continue further developing the resources and
powers of their Asset Recovery Offices;

·
follow up on the recommendations set out in
the Communication on the European Information Exchange Model (EIXM);

·
take action, as set out in the EU Strategies,
to address trafficking in human beings and drugs;

·
follow up on the recommendations set out in
the upcoming first EU Anti-Corruption Report 2013;

·
implement Operational Action Plans within the
policy cycle on: trafficking in human beings, mobile organised crime groups,
smuggling of commodities in container form, synthetic drugs, drugs routes
originating from West Africa, and crime originating from the Western Balkans.

2.2.        Strategic objective 2: Prevent
terrorism and address radicalisation and recruitment

According to
Europol, although the overall number of terrorist attacks in the EU Member
States has been decreasing in recent years, the terrorist threat currently
presents a highly diverse picture (Al-Qaeda-inspired, right- and left-wing or
anarchist, separatist and single-issue terrorism), with a possible increase in
plots by lone actors and small, autonomous groups. In addition, the
geopolitical developments in the Middle East, the Sahel region and the Horn of
Africa will impact on the security situation in Europe. Especially, radicalised
EU citizens travelling to and participating in conflict zones, referred to as foreign
fighters, returning to Europe with conflict experience, will continue to pose a
threat to the EU.

Combating terrorism
has remained a priority for the European Union in a year when the attacks in
Toulouse and Burgas tragically highlighted the reality of the terrorist threat.

In the aftermath
of the Burgas attack, Europol provided highly appreciated operational
support to the Bulgarian authorities. In addition, the EU AirPol network,
consisting of police authorities responsible for security at airports and
surrounding areas, issued guidance on new security measures and procedures to
prevent similar attacks within 24 hours.

The AirPol network received its mandate on the basis of a Council
Decision in the aftermath of the Yemen cargo attacks in 2010 and works to share
best practices and undertake capacity-building on the basis of the Commission’s
crime prevention funding programme (ISEC).

Terrorism
remains one of the priorities in the operational work of Eurojust[11]. Moreover, in 2012 Eurojust
developed further the concept and contents of its Terrorism Convictions Monitor
(TCM), which provides an overview of terrorism-related judicial developments in
the Member States, as well as judicial analysis on selected cases.

A practitioners’ workshop co-organised by
Eurojust and Europol in December 2012 brought together counter-terrorism
specialists from India and from the EU. Its objective was to promote judicial
cooperation by defining common interests and reflecting on standards.

The European counter-terrorism
policy is based on prevention. The EU Radicalisation Awareness Network
(RAN) was established to connect actors involved on the ground in countering
radicalisation and violent extremism throughout Europe (first-line
practitioners, field experts, social workers, academics, NGOs, etc.). With
eight thematic groups, the RAN offers a unique opportunity to share experience
and results. The outcomes of the RAN’s work so far were also reported back to
policy makers and discussed at a High Level Conference at the end of January
2013.

The RAN
recommendations, and in particular those provided by the working group on
foreign fighters, will also contribute to the EU’s efforts to strengthen the
synergies between internal and external security policies.

The ISEC programme has been supporting projects which address the
issue of radicalisation and violent extremism in particular through better
training and awareness-raising for practitioners, disengagement and
de-radicalisation, increasing the response capacity of citizens and civil
society, disseminating terrorist victims’ testimonies and countering terrorist
propaganda. Such projects are being carried out by participating organisations
from amongst others Belgium, Denmark, Germany and the United Kingdom.

As another example of
terrorist prevention efforts, the EU has, via its Regulation on the use and
marketing of explosives precursors[12], established the most advanced system on a global scale to
prevent access to precursors to explosives that may be used by terrorists.

The Commission, in cooperation with the
Member States, is currently working on new proposals on Chemical, Biological,
Radiological, Nuclear and Explosives (CBRN-E) security at EU level.
The focus is on the most pertinent actions to be implemented in the coming
years, and on obtaining synergies from the work done in the areas of CBRN-E,
including detection, based on two progress reports
published in 2012.

The Commission has started a review of the Critical
Infrastructure Protection Directive[13],
with a view to proposing a new approach in the first half of 2013. The aim is
to ensure that services vital to society remain operational. Loss or failure of
critical infrastructure could have severe consequences for society.

Project Poseidon, co-funded by the Critical Infrastructure
Protection Programme, identified threats and
vulnerabilities in both critical infrastructures and decision-making mechanisms
to improve security in cross-border passenger traffic in the Baltic Sea Region. The results are contained in the pilot study
(Preventing Terrorism in Maritime regions — Case Analysis of Project Poseidon)
and they concern for instance counter-terrorism strategies as regards ferry
traffic.

Integral connections between different
transport modes require a robust counter-terrorism strategy to protect the
stability of commerce and maintain confidence in the security and safety of the
transport network. In 2012 the Commission issued a paper on transport
security[14],
highlighting a number of areas of key significance to the effective mitigation
of terrorist threats. Among other things, the paper suggests the creation of a
general security framework for transport operators, such as security
programmes, security awareness training and exercises, contingency and recovery
planning.

As regards aviation security, the
developments are threat-driven and the detection technology needs to
keep up with the continuous innovation demonstrated by terrorist groups. The establishment of an EU harmonised certification system for
airport screening equipment is being finalised, and international coordination
is on-going to streamline the scientific work. The Commission and the Member
States are actively supporting innovative technology trials to improve
detection of the different threats (for example in cargo, in baggage and on
persons).

In addition to several research activities
on testing innovative technologies, the Commission, jointly with the Member
States, has launched pro-active detection activities with a number of operational
trials, both during the Euro 2012 Football Championships and in areas of
mass transit and public buildings security to develop the most effective
security models.

For
example, the Commission is implementing the ITRAP (Illicit Trafficking
Radiation Assessment Programme) with the aim of
providing an independent assessment of the available
radiation detection equipment on the market used for the detection and
identification of nuclear and radioactive materials.

Training is a cornerstone of effective implementation
of security systems. An example of a concrete action supported by the Commission
in this field is the establishment of the European Security Training Centre
(EUSECTRA) the aim of which is to develop a security training programme
applicable to the law enforcement community.

ATLAS, an EU network of anti-terrorist intervention forces
established and funded by the Commission via the ISEC programme since 2008,
improves the cooperation between special intervention units in the EU and
support its functioning in crisis situations (for example a terrorist attack or
a hostage taking) when a Member State needs assistance. It also establishes
common platforms for training, sharing equipment, and close cooperation in the
Member States’ border areas.

The way
forward in 2013

The Commission
will:

·
update the EU approach to counter violent
extremism by developing a European ‘toolbox’ based on best practices in the
Member States;

·
propose actions on CBRN-E;

·
develop tools to enhance
the detection of terrorist threats in all areas, including standards for
aviation security;

·
propose a new approach on
European Critical Infrastructure protection.

Member States
are encouraged to:

·
step up efforts to prevent and counter
violent extremism;

·
implement the Action Plan on air cargo
security;

·
set up the necessary
administrative structures to implement the Regulation on explosives precursors.

2.3.        Strategic objective 3:
Raise levels of security for citizens and businesses online

A variety of activities relating to internet
fraud are becoming more prominent, including illicit internet transactions, use
of money mules and fake websites. The past two years have also witnessed an increase
in the number of hackings and internet-driven illegal activities.

The fight against cybercrime is not only
about reducing crime in the online environment, but also about ensuring a
secure cyberspace within which economic and social activity can flourish. This
remains a priority for the Commission and the Member States and is pursued also
through the Digital Agenda Europe. It is important to pool resources at EU
level for better prevention and a stronger response capacity. Significant measures
have been taken at both strategic and operational level.

The Cybersecurity Strategy for the
European Union, adopted in February 2013[15],
sets out a comprehensive vision and puts forward the actions required, based on
strong protection and promotion of citizens’ rights, to make the EU the safest
online environment in the world. The strategy aims to strengthen resilience and
network and information security; drastically reduce cybercrime; develop an EU
cyberdefence policy; foster the industrial and technological resources for
cybersecurity; promote Research and Development (R&D); and enhance the EU
international cyberspace policy.

The strategy highlights the need for
reinforced cooperation and exchange of information between the relevant actors
to provide early detection and a more coordinated response. The objectives of
the strategy are mutually reinforcing. For example, the resilience and network
and information security objective includes actions aimed at strengthening public-private
partnerships and at setting up National Computer Emergency Response Teams
(CERTs). This will in turn support the fight against cybercrime.

These objectives were highlighted in a
proposal for a Directive on network and information security[16] accompanying
the Strategy. The main objective of the proposal is to ensure the smooth
functioning of the internal market. The proposal aims to raise national
preparedness, strengthen EU-level cooperation and ensure that operators of
essential services and infrastructure carry out appropriate risk management and
report serious incidents to the national competent authorities.

An important step in the fight against
cybercrime was the creation of the European Cybercrime Centre (EC3) at
Europol in early 2013. The Centre, in close cooperation with Eurojust, will
bolster the EU’s capacity to confront the growing and complex threat posed by
cybercrime and become a focal point for cybercrime-related issues. It will
provide better operational support capacity at the EU level for cross-border
cybercrime, specialised strategic and threat assessments, and more targeted
training and R&D that result in the development of specialised tools to
tackle cybercrime. The Centre will also develop cooperation with all
stakeholders including those outside the law enforcement community. In view of
the inherently cross-border nature of the phenomenon and the need for
international cooperation, the EC3 will able to engage the EU’s law enforcement
community with other international actors such as Interpol and draw upon
efforts of other actors such as the ICT industry or the Internet Corporation
for Assigned Names and Numbers (ICANN).

The EC3 will be able to voice concerns and
make suggestions, through the Commission, on questions relating to internet
governance. The EC3 will also liaise with the European Network and Information
Security Agency (ENISA), which gathers and generates network and information
security analysis, supports Member States in developing harmonised breach
reporting approaches, in building CERT capacities and in raising end-users'
awareness. The foreseen renewal of ENISA's mandate will cater for its support
to the Member States and the Commission also in the coming years.

Another example of strategic initiatives
undertaken in 2012 was the EU-US initiative to launch a Global Alliance
against Child Sexual Abuse Online. The Alliance — including 48 countries
around the world at its launch — will help foster global cooperation in the
fight against child pornography online. By uniting countries behind a shared
set of targets and goals, it is expected to result in more child victims being
identified and rescued, more effective prosecution of perpetrators, better
prevention of offences and a reduction in the availability of child sexual
abuse images online. The European strategy for a better
internet for children[17]
strengthens the preventive measures even further by setting out child safety
actions built on empowerment and protection, thereby encouraging children to
make responsible use of the internet.

The proposal for a Directive on attacks
against information systems[18],
which is now being negotiated between the European Parliament and the Council,
aims to approximate criminal legislation in the Member States in the area of
cybercrime and introduces definitions of and sanctions for illegal access to
information systems, illegal system and data interference and illegal
interception. In addition, the proposal penalises the production, sale,
procurement for use, import and distribution of tools used for committing these
offences. Only six EU Member States still have to ratify the Budapest Convention
on Cybercrime.

In addition, cybercrime is one of the eight
fields of operational cooperation within the EU policy cycle for organised
and serious international crime. Specific actions to be implemented by the
Member States under the leadership of Romania include the establishment of
national reporting systems in each Member State on data breaches/cyber
incidents/cybercrimes for legal entities and citizens, reinforcing internet governance
so that users in cyberspace can be identified by Member States’ authorities for
legitimate law enforcement reasons, and mitigation of tools (botnets) that
facilitate large-scale cyber-attacks.

The ISEC programme provides co-funding to assist the Member States
with building their capacity to deal with cybercrime and promote cross-border
and public-private cooperation. Recent successful projects involve the setting-up
of a network of national centres of excellence to promote cooperation
initiatives between research, academia and law enforcement practitioners that
result in tangible tools for understanding, detecting and fighting cybercrime.
There are currently a total of eight such centres receiving funding from the
Commission. To date, the Commission has contributed almost € 5 million to
building cybercrime training and research capacities in the Member States.

The way
forward in 2013

The Commission
will:

·
make sure that the European Cybercrime Centre
(EC3) at Europol takes important steps towards becoming fully operational;

·
implement the EU Cybersecurity Strategy for
the European Union;

·
support the adoption of the proposed
Directive laying down measures to ensure a high common level of network and
information security across the EU and pursue the new mandate of ENISA;

·
continue to support, develop and enlarge the
Global Alliance against Child Sexual Abuse Online.

Member States
are encouraged to:

·
work closely with the European Cybercrime
Centre (EC3);

·
work closely with Eurojust and ENISA;

·
implement the Operational Action Plan on
cybercrime within the policy cycle;

·
pursue the shared policy targets of the
Global Alliance against Child Sexual Abuse Online, and take specific actions to
achieve them;

·
support the ratification and implementation
of the Council of Europe Budapest Convention on Cybercrime.

2.4.        Strategic objective 4:
Strengthen security through border management

In December 2011, the Commission presented
a legislative proposal for a European Border Surveillance System (Eurosur).
Its adoption is foreseen in 2013 and it will provide the Member States and the EU
agencies with a common framework for near real-time information sharing and
interagency cooperation at national and European level for the purpose of
fighting irregular migration and cross-border crime. Eurosur will also
contribute to enhancing the protection and saving the lives of migrants.

National coordination centres for border
surveillance involving a number of national authorities, such as border guards,
police, coast guards and the navy, were established by the 18 Schengen
countries located at the southern and eastern external borders that are the first
to join Eurosur. These 18 national coordination centres have been connected by
Frontex to the Eurosur network on a pilot basis.

Within the framework of Eurosur, the External Borders Fund (EBF) has
financed important regional surveillance systems, enabling better control of
the external borders of the Schengen area. EBF contributions were given to the
Spanish integrated surveillance system SIVE (Sistema Integrado de Vigilancia
Exterior), which focused in particular on the Strait of Gibraltar, the Canary
and Balearic islands and the southern Mediterranean coast. The EBF also contributed
significantly to the French coast surveillance system.

With the dual objective of enhancing security
at borders and facilitating travel and access for non-EU nationals, the
Commission adopted early 2013 two legislative proposals for an Entry/Exit
System (EES) and a Registered Traveller Programme (RTP), the
so-called Smart Borders Package.

After many years of development and
testing, the Schengen Information System II (SISII) will become fully
operational and provide additional means of border management. In parallel, the
completion of worldwide roll-out of the Visa Information System (VIS) will
further strengthen security.

The Commission is assisting Greece in the
implementation of the Action plan on asylum and migration management which also
includes a border management component, in order to improve the capacity of
Greece to better control its external borders, in particular the external
border with Turkey.

In the area of customs border management,
the work on the implementation of common risk management continued and the
Commission presented a Communication on Risk Management and supply chain
security[19].
The aim of this Communication is to foster the debate with the institution on
the recommendations in order to ensure the conditions to collectively improve
the current situation. Furthermore, and following the High Level Air Cargo
security plan work continues with transport authorities and traders to ensure
the improvement of the data quality being already received by customs.

Frontex has supported
security through various activities facilitated by its reinforced mandate. In
particular, in close cooperation with the border management services of Member
States, it has further developed the Frontex Risk Analysis Network and provided
for regular and ad hoc risk analysis in relation to irregular migration at the
external borders of the EU. Joint operations were carried out at all main
hot-spots at the external borders. Frontex pursued operational cooperation with
other relevant EU agencies, such as Europol, the European Asylum Support Office
and the Fundamental Rights Agency. Frontex has also assisted the Member States in
organising joint return operations in line with the EU’s return policy.

Following successful cooperation in the
Frontex-coordinated Joint Operation INDALO in 2011 and 2012, addressing
irregular migration and smuggling of drugs, the Commission encouraged Frontex,
Europol, the Centre de Coordination pour la Lutte Antidrogue en Méditerranée
(CeCLAD-M) and the Maritime Analysis and Operation Centre Narcotics (MAOC-N) to
formalise their cooperation in line with the proposed Eurosur Regulation.

Furthermore, following the entry into force
of the amended Frontex Regulation at the end of 2011, the Commission encouraged
Frontex and Europol to finalise the necessary arrangements for allowing the
transfer from Frontex to Europol of personal data related to cross-border
criminal activities facilitating irregular migration or human trafficking.

In 2012, important progress has been made
in implementing the new fundamental rights provisions of the revised Frontex
Regulation. The Fundamental Rights Forum has been established and has stated
its work, and a Fundamental Rights Officer has been appointed.

The efforts to improve cooperation between
border guards and customs remained important fields of activity in 2012. The
aim is to facilitate trade and travel and enhance the security of the EU
through, inter alia, synchronised checks, information exchange, training, joint
risk analysis and joint operations. Advanced solutions already exist in some
Member States and serve as best practice. Finland, for example, has set up
police-customs-border guard intelligence, investigation and analysis units
which make for greater effectiveness in the fight against serious crime.

The European Borders Fund supported Member States in their efforts
to fight the use of fake and falsified identity and travel documents, in
particular for purchasing specific equipment used by border guards and in
consular offices to verify the authenticity of documents. The EBF also contributed
to the development of FADO (False and Authentic Documents Online), a web-based
tool facilitating the exchange of information between the Member States on
detected document fraud.

The way
forward in 2013

The Commission
will:

·
support the launch of Eurosur as of 1 October
2013;

·
ensure that Schengen Information System II
(SISII) becomes fully operational during the spring.

Member States
are encouraged to:

·
ensure that all national authorities with
responsibility for border surveillance cooperate via the national coordination
centres;

·
make swift progress in negotiating the
proposals on the Entry/Exit System (EES) and the Registered Travellers
Programme (RTP);

·
agree on common recommendations and best
practices in border guards-customs cooperation in order to guarantee the same
level of security and service at all EU external borders and to reduce the
costs of checks;

·
discuss and agree on common recommendations
to improve Customs Risk Management and supply chain security;

·
implement the Operational Action Plan on irregular
immigration within the policy cycle.

The agencies
should:

·
further step up their cooperation to detect
and prevent irregular migration and cross-border crime at the external borders
(Frontex, Europol, MAOC-N and CeCLAD-M);

·
take the necessary steps to allow the transfer
of personal data to Europol in accordance with the amended Frontex Regulation
(Frontex and Europol).

2.5.        Strategic objective 5:
Increase Europe’s resilience to crises and disasters

In the field of both
natural and man-made risks, the EU has enhanced its risk management capacity in
order to allocate resources more efficiently, reinforce the EU’s prevention and
preparedness capacity.

The proposal for
the implementation arrangements for the solidarity clause (Article 222
TFEU) will provide an umbrella framework for situations of extraordinary threat
or damage that overwhelm the response capacities of the affected Member
State(s). A joint proposal by the Commission and the High Representative of the
Union for Foreign Affairs and Security Policy for the arrangements for implementing
the solidarity clause was adopted in December 2012[20].

A robust risk
assessment methodology needs to be established and applied to ensure that security
risks are managed effectively. The EU is developing a shared methodological
approach to assess these security risks. Significant work has been conducted in
the field of risks assessment related to intentional malicious threats, not
least in the aviation security field (air cargo, liquids ban). In December 2012
the Council called upon the Commission to extend this methodological approach
to the whole of aviation security.

In relation to
building resilience to natural and man-made disasters, a number of actions have
been carried out to implement the EU disaster risk management policy framework[21]. Member States have achieved
varying progress in undertaking national risk assessments in line with
the 2010 Commission's Guidelines[22].
To date, the Commission has received contributions from 12 countries
participating in the EU Civil Protection Mechanism (Czech Republic, Denmark,
Estonia, Germany, Hungary, Italy, Netherlands, Norway, Poland, Slovenia, Sweden
and UK) with varying degrees of detail of the national risk analysis which
highlight the need for more robust disaster data and comparative risk
management approaches. On this basis, the Commission is currently preparing a
first cross-sectoral overview of natural and man-made risks which the
Union will face in the future, expected in 2013. This could be followed in 2014
by more extensive work integrating more in depth security risks.

The Commission's
proposal for a new Union Civil Protection Mechanism[23] further places prevention on
equal footing with preparedness and response actions and includes provisions to
further develop risk assessment in civil protection policy.

The Commission has also consistently
promoted the use of peer reviews as an effective way of exchanging
experience and improving governance and policy-making in the area of disaster
risk management. In 2012, the UK was the first country which volunteered to
undertake such a 'pilot' peer review that was carried out by three 'peers'
(from Italy, Finland and Sweden) with the support and facilitation provided by
the Commission in cooperation with UNISDR and OECD. A report of the findings is
expected in spring 2013, including good practices, areas for improvement and
recommendations on how to achieve further progress. The results will also feed
into the on-going work of the Commission in developing guidance for disaster
prevention based on good practice.

The Commission will also open in 2013 the
Emergency Response Centre, on the basis of the existing Monitoring and
Information Centre (DG ECHO), which will further strengthen the EU capacity to
respond to disasters.

Substantial work
has been conducted to better rationalise and reinforce synergies between the
different EU crisis management capacities. A more integrated and effective
approach is the goal of the revised EU Crisis Coordination Arrangement
procedures and the establishment of an integrated awareness and analysis
capacity.

In 2012 several important actions were
undertaken to reinforce the networking of multi-sector and sector-specific
centres in the Commission and relevant agencies. These include the conclusion
of agreements on risk and crisis management cooperation and the establishment
of new high-performing and resilient means of communication. The setting-up in
2012 of the Commission’s Strategic Analysis and Response Centre in DG HOME
enabled new security risk assessment and management methodologies and practices
to be established that bring together the expertise of relevant Commission departments
and expert communities, e.g. in the areas of transport and energy, and draw on
threat assessments by the EU Intelligence Centre, EU agencies and the Members
States’ services.

Enhancing the EU
crisis management and risk assessment capability requires the capacity to exchange
classified information. From this point of view, the establishment of a legal
framework allowing the EU agencies to exchange classified information
represents an important step forward.

The way
forward in 2013

The Commission
will:

·
support efforts to improve risk assessment
methodologies and exchange and transfer experience between EU Member States and
also with non-member countries on risk management related activities;

·
produce a first cross-sectoral EU overview of
natural and man-made risks;

·
produce guidance on disaster prevention based
on good practices;

·
continue to foster the EU capacity to conduct
the assessment of security risks.

Member States
are encouraged to:

·
finalise and regularly update their national
risk assessments and undertake initiatives to improve the understanding of
disaster and security risk, to promote risk management planning, and to
disaster-proof EU-supported infrastructure investments and volunteer to
undertake peer reviews of their national risk management policies;

·
adopt the proposal for the implementation
arrangements for the solidarity clause.

3.           Streamlining and rationalising the
implementation of security policies

The internal
security policy is based on a shared agenda involving all actors: EU institutions,
Member States and EU agencies. In 2012, the European Parliament issued its first
opinion on the Internal Security Strategy, broadly endorsing the Strategy’s five
objectives[24].

In meeting the
threats to internal security in the EU, cooperation between Member States will
be of great value. Pooling resources and streamlining actions at EU level can
be more effective and less costly than acting alone. The EU agencies have a
special role to play in this regard.

3.1.        Streamlining work

The Commission has
tabled in March 2013 a proposal on the reform of Europol and Cepol, proposing
the merging of the two agencies into one, and a Communication on a European Law
Enforcement Training Scheme (LETS).

The overall goal in reforming Europol
as well as Eurojust is to improve the operational efficiency and
effectiveness of the agencies in addressing the security threat posed by
serious and organised crime and terrorism. Improving Europol’s capabilities to
map criminal threats and trends will further strengthen both the EU’s and the Member
States’ response to criminal networks and their detrimental effects on society
and the economy, by improving the support Europol can provide to Member States,
enhancing coordination and synergies between operations carried out by Member
States, and better supporting the EU Policy Cycle on serious and organised
crime.

Cepol and Europol have complementary
missions, with Cepol supporting the development of an EU law enforcement cooperation
culture through training. The proposed merger of Cepol and Europol would
make training more focused and aligned with actual training needs, as set out
in the European Law Enforcement Training Scheme (LETS), which the
Commission adopted at the same time. It would pool scarce financial and human
resources, allowing the EU to provide more training courses overall. By making
Europol’s services more operational, and by targeting training towards EU
priority needs, resources can be freed at national level and redirected as
necessary.

The European Cybercrime Centre is another example
of streamlining for the purpose of tackling cybercrime more efficiently. Investigations
into online fraud, child abuse and other crimes regularly involve hundreds of
victims at a time, and suspects in many different parts of the world.
Operations of this scale cannot be successfully concluded by national police
forces alone. No crime is as borderless as cybercrime, requiring law
enforcement authorities to adopt a coordinated and collaborative approach
across borders, together with public and private stakeholders alike.

Streamlining funding arrangements is a
means to ensure more targeted use of resources. In 2012 the Commission issued
proposals for the Internal Security Fund for the new financial perspectives
2014-2020. One of the innovations proposed is to apply shared management to all
the funds (previously the ISEC fund was not included), which means that an
increasing part of the available resources will be managed directly by the
Member States.

3.2.        Ensuring consistency
between the internal and external dimension

With threats partly stemming from outside
the boundaries of the EU, enhanced cooperation with external security actors,
non-member countries and organisations is crucial in conducting successful
security policies.

As part of a broader effort to enhance
consistency between the internal and external dimensions of security, work was
taken forward through the Political and Security Committee (PSC) and the Standing
Committee on Internal Security (COSI) to implement the roadmap on strengthening
ties between the Common Security and Defence Policy and actors dealing with
Freedom, Security and Justice, and to further develop synergies in other areas
such as cyber security, critical infrastructure protection and
counter-terrorism. Closer linkages between the EEAS and relevant agencies (e.g.
Europol and Frontex) have also been established. Two PSC-COSI meetings were
organised in 2012 in which exchanges on geographical dimensions (Western
Balkans, Sahel and Libya) of EU activities have been addressed, and a PSC-COSI
meeting concentrating on the security situation in Mali took place in February
2013.

Internal security issues are now
systematically added to the agenda of political dialogues with relevant non-member
countries and organisations, and are also addressed in relevant strategic
partnerships and agreements. The launch of the dialogues towards Mobility,
Migration and Security Partnerships with southern Mediterranean countries
represents other channels to strengthen cooperation on internal security
matters with external partners. Equally, the pre-accession process and in
particular on-going work in the context of the post-visa liberalisation monitoring
mechanism with five Western Balkan countries, the implementation of the visa
liberalisation roadmap with Kosovo and the Positive Agenda with Turkey are
powerful tools to assist non-member countries in aligning their legal framework
and operational capacity with the EU acquis and standards in the field
of security.

Specific actions countering global threats
that enhance the EU's internal security are financed equally outside the EU
under the EU Instrument for Stability.

3.3.        Preparing the future: the
FP7 Security Research programme and beyond

Since 2007 the Commission has funded the
FP7 Security Research programme up to 1.4 billion of euros. More than 250
projects have been funded with a significant involvement of stakeholders. A majority
of the topics contained in the scope of this report have been addressed, such
as counter explosive actions, CBRN action, radicalisation, and border security.

The Commission published in July 2012 a Communication for a Security
Industrial Policy – Action Plan for an innovative and competitive Security
Industry[25].
The Action Plan foresees further measures to harmonise the EU security market
and close the gap between research and market, notably through standardisation
activities in the area of CBRN protection, border security and crisis
management/civil protection.

4.           Conclusion

Implementation of the Internal Security
Strategy is well on its way. As this report has shown, a lot has been done under
the five objectives. However, we still have a way to go. For 2013 organised
crime is still considered to be one of the major challenges for EU internal
security to address. Money laundering, corruption, trafficking and mobile
organised crime groups are just some of the threats foreseen. Cybercrime
continues to be of particular concern. Another important challenge for 2013 is to
improve tools to better counter growing violent extremism.

The next and last report on implementation
of the ISS will be presented in mid-2014. The report will assess whether the
objectives of the ISS have been met and also consider future challenges within
the field of internal security.

Annex 1: Graphic overview of all the
planned actions for 2011-2014

[1]               COM(2013) 45/3.

[2]               COM(2013) 44/2.

[3]               COM(2013) 42 final.

[4]               COM(2012) 363 final.

[5]               COM(2011) 654 final.

[6]               COM(2012) 85 final.

[7]               OJ L 186, 14.7.2012, p. 4 (Australia) and OJ L 215,
11.8.2012, p. 5 (the United States).

[8]               Directive 2011/36/EU on preventing and combating
trafficking in human beings and protecting its victims.

[9]               COM(2012) 735 final.

[10]             An increase of 43 per cent compared to 2011.

[11]             All in all 32 terrorism-related
cases were registered at Eurojust in 2012, including cases concerning terrorism
financing.

[12]             2010/0246 (COD).

[13]             Directive 2008/114/EC on the identification and
designation of European critical infrastructures and the assessment of the need
to improve their protection.

[14]             SWD(2012) 143 final.

[15]             JOIN(2013) 1 final.

[16]             COM(2013) 48 final.

[17]             COM (2012) 196.

[18]             COM(2010) 517 final.

[19]             COM(2012) 793 final.

[20]             JOIN(2012) 39 final.

[21]             Set out in Communication 'A community approach on the
prevention of natural and man-made disasters, COM(2009)
82 final.

[22]             SEC(2010) 1626 final, available at: http://ec.europa.eu/echo/civil_protection/civil/pdfdocs/prevention/COMM_PDF_SEC_2010_1626_F_staff_working_document_en.pdf

[23]             COM(2011) 934 final.

[24]             Borsellino report, European Parliament resolution of 22
May 2012 on the European Union’s Internal Security Strategy ((2010)2308 (INI)).

[25]             COM(2012) 417 final.