Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Decision No 276/1999/EC adopting a multiannual Community action plan on promoting safer use of the Internet by combating illegal and harmful content on global networks

(presented by the Commission)

EXPLANATORY MEMORANDUM

Decision No 276/1999/EC of the European Parliament and of the Council of 25 January 1999 (hereafter referred to as the "Decision") adopting a Multiannual Community Action Plan on promoting safer use of the Internet by combating illegal and harmful content on global networks (hereafter referred to as the "Action Plan") was adopted for a period of four years.

In accordance with article 6 (4) of the Decision, the Commission has submitted to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions an evaluation report on the results obtained at the end of two year in implementing the action lines set out in Annexe I to the Decision.

The findings of the evaluation formed part of the basic documentation for a workshop on safer use of new online technologies at which leading experts in the field examined the likely future evolution of the issues addressed by the Action Plan and made recommendations to the Commission.

The conclusions of the evaluation report and of the workshop can be summarised as follows:

- New online technologies, new users and new usage patterns create new dangers and exacerbate existing dangers at the same time as opening a wealth of new opportunities;

- There is a clear need for co-ordination within the safer Internet field, both on the national and the European level. There should be a large degree of decentralisation using networks of national focal points. The involvement of all the relevant actors, especially a greater number of content providers in the different sectors, should be encouraged. The Commission should act as a facilitator for and contributor to European and global co-operation. Co-operation between the Community and candidate countries should be enhanced;

- More time is needed for actions to be implemented to enhance networking, to achieve the objectives of the Action Plan and to take account of new online technologies.

This Action Plan should therefore be extended for a further two years duration (hereafter referred to as the "second phase"). Its scope and implementation should be adapted to take account of lessons learned and new technologies.

Need for co-ordination at European level

This will be reflected in a number of measures:

Partner involvement

Promote more active involvement of content industry and media, expand collaboration with government-backed bodies active in the field.

Project structure

Progress towards integrated network(s) with in-built awareness and dissemination mechanisms and central access point(s), combined with national focal points forming a Safer Internet Forum linked to an international Round Table.

Programme structure

Closer links between action lines e.g. hotline and awareness activities, rating and self-regulation.

Subject Coverage

The focus on child protection will be widened to include other types of illegal and harmful content (racism, violence etc.), and awareness of issues of consumer protection, data protection/privacy, and network and data security.

Technology Coverage

The focus of the Action Plan will be widened to include mobile and broadband (especially video) content, chat rooms and Internet messaging services, online games etc. The title of the Decision will be amended to reflect this.

Adjustment of financial envelope and indicative breakdown of expenditure

An increase in the financial envelope is necessary to provide for a further two years' activity. The indicative breakdown of expenditure between action lines needs to be adapted to reflect the cost implications of new priorities and new methods.

Geographical Coverage, Adjustment of list of applicant countries

Progressive widening to encompass accession countries. The list of applicant countries able to participate should be amended by including Malta and Turkey, who became applicant countries after the original decision was adopted. Encourage collaboration with third countries and international organisations

In the light of the above mentioned considerations, the Commission proposes that the European Parliament and the Council adopt a Decision amending Decision No 276/1999/EC adopting a Multiannual Community Action Plan on promoting safer use of the Internet by combating illegal and harmful content on global networks.

2002/0071 (COD)

Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Decision No 276/1999/EC adopting a multiannual Community action plan on promoting safer use of the Internet by combating illegal and harmful content on global networks

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 153 (2) thereof,

Having regard to the proposal from the Commission [1],

[1] OJ C , , p. .

Having regard to the opinion of the Economic and Social Committee [2],

[2] OJ C , , p. .

Having regard to the opinion of the Committee of the Regions [3],

[3] OJ C , , p. .

Acting in accordance with the procedure laid down in Article 251 of the Treaty [4],

[4] OJ C , , p. .

Whereas:

(1) Decision No 276/1999/EC [5] was adopted for a period of four years.

[5] OJ L 33, 6.2.1999, p. 1.

(2) In accordance with article 6 (4) of the Decision 276/1999/EC, the Commission has submitted to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions an evaluation report [6] on the results obtained at the end of two year in implementing the action lines set out in Annex I to that Decision.

[6] COM (2001) 690, 23.11.2001.

(3) The findings of the evaluation formed part of the basic documentation for a workshop on safer use of new online technologies at which leading experts in the field examined the likely future evolution of the issues addressed by the action plan laid down in Decision nº 276/1999/EC (hereafter referred to as the "action plan") and made recommendations to the Commission.

(4) New online technologies, new users and new usage patterns create new dangers and exacerbate existing dangers at the same time as opening a wealth of new opportunities.

(5) There is a clear need for co-ordination within the safer Internet field, both on the national and the European level. There should be a large degree of decentralisation using networks of national focal points. The involvement of all the relevant actors, especially a greater number of content providers in the different sectors, should be encouraged. The Commission should act as a facilitator for and contributor to European and global co-operation. Co-operation between the Community and candidate countries should be enhanced.

(6) More time is needed for actions to be implemented to enhance networking, to achieve the objectives of the action plan and to take account of new online technologies.

(7) The financial framework constituting the principal point of reference for the budgetary authority during the annual budgetary procedure should be amended accordingly.

(8) The Commission should be required to present a second report on the results obtained in implementing the action lines after four years and a final report at the end of the action plan.

(9) The list of applicant countries able to participate should be amended by including Malta and Turkey.

(10) The Action Plan should be extended for a further two years duration which should be regarded as a second phase; in order to make specific provision for the second phase, the action lines should be amended, taking account of the experience and the findings of the evaluation report.

(11) Decision 276/1999/EC should therefore be amended accordingly,

HAVE ADOPTED THIS DECISION:

Article 1

Decision No 276/1999/EC is amended as follows:

(1) The title is replaced by the following:

"Decision 276/1999/EC of the European Parliament and of the Council of 25 January 1999 adopting a Multiannual Community Action Plan on promoting safer use of the Internet and new online technologies by combating illegal and harmful content (eSafe)"

(2) Article 1 (2) is replaced by the following:

"The action plan shall cover a period of six years from 1 January 1999 to 31 December 2004."

(3) Article 1 (3) first subparagraph is replaced by the following:

"The financial framework for the implementation of the action plan for the period from 1 January 1999 to 31 December 2004 is hereby set at 38.3 million euro."

(4) Article 6 (4) is replaced by the following:

"At the end of two years, at the end of four years and at the end of the Action Plan, the Commission shall submit to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions, once the committee referred to in Article 5 has examined it, an evaluation report on the results obtained in implementing the action plan referred to in Article 2. The Commission may present, on the basis of those results, proposals for adjusting the orientation of the action plan."

(5) Article 7 (2) is replaced by the following:

"2. The action plan shall be open to participation of applicant countries on the following basis:

(a) // those from central and eastern Europe (CEECs), in accordance with the conditions established in the Europe Agreements, in their additional protocols, and in the decisions of the respective Association Councils;

(b) // Cyprus, Malta and Turkey, in accordance with bilateral agreements to be concluded."

(6) Annex I is amended as set out in the Annex I to this Decision.

(7) Annex II is replaced by the text in the Annex II to this Decision.

Article 2

This Decision is addressed to the Member States.

Done at Brussels,

For the European Parliament For the Council

The President The President

ANNEX I

Annex I to Decision 276/1999/EC is amended as follows:

(1) Under the title Action Lines the following third subparagraph is added:

"Following the initial phase covering the period 1 January 1999 - 31 December 2002, a second phase will be organised during the period 1 January 2003 - 31 December 2004. This will build on the achievements of the initial phase while making the necessary adjustments to take account of experience gained and of the impact of new technology. In particular:

i. // The coverage of safer use will be extended to new online technologies, including mobile and broadband content, online games, peer-to-peer file transfer, text and enhanced messages and all forms of real-time communications such as chat rooms and instant messages;

ii. // Action will be taken to ensure that areas of illegal and harmful content and conduct of concern are covered, including racism and violence;

iii. // More active involvement of the content and media industry will be encouraged, and collaboration with government-backed bodies active in the area will be expanded;

iv. // Enhanced networking will be encouraged among project participants in the various action lines, particularly in the fields of hotlines, content rating, self-regulation and awareness-raising;

v. // Steps will be taken to associate candidate countries in ongoing activities and to share experience and know-how, and to increase links and encourage collaboration with similar activities in third countries and with international organisations."

(2) In paragraph 1.1 the following sixth subparagraph is added:

"During the second phase, the aim will be to improve yet further the operational effectiveness of the network, to work closely with safer Internet awareness actions, to adapt best practice guidelines to new technology, to complete the network's coverage in the Member States, to provide practical assistance to candidate countries wishing to set up hotlines and to expand links with hotlines outside Europe."

(3) In paragraph 1.2 the following fourth subparagraph is added:

"During the second phase, further advice and assistance will be provided so as to ensure co-operation at Community level through networking of the appropriate structures within Member States and through systematic review and reporting of relevant legal and regulatory issues, to help develop comparable assessment methodologies of the self-regulation framework, to help adapt self-regulatory practices to new technology by providing systematic information on relevant developments in such technology and the way it is used, to provide practical assistance to candidate countries wishing to set up self-regulatory bodies and to expand links with self-regulatory bodies outside Europe."

(4) In paragraph 2.1 the following seventh subparagraph is added:

"During the second phase, there will be a focus on benchmarking of filtering software and services (especially performance, usability, suitability for European markets and new forms of digital content). Assistance for developing filtering technology will be carried forward under the Community research programme in close liaison with activities relating to filtering under the Action Plan."

(5) In paragraph 2.2 the following third subparagraph is added:

"During the second phase, support will be given to bringing together the industries and parties concerned such as content providers, regulatory and self-regulatory bodies, software and Internet rating organisations and consumer associations, in order to foster conditions propitious for developing and implementing rating systems which are easy for content-providers and for consumers to understand and use, which provide European parents and educators with the necessary information to make decisions in accordance with their cultural and linguistic values, and which take account of the convergence of telecommunications, audiovisual media and information technology."

(6) Paragraph 3.2 is amended as follows:

(a) The fourth subparagraph is replaced by the following:

"The purpose of the Community support is to pump-prime broadly-based awareness actions and to provide overall coordination and exchange of experience so that lessons can be drawn from the results of the action on an ongoing basis (for instance by adapting the material distributed). The use of existing networks will permit cost saving, but additional financing is required to produce the relevant content and reach the intended target groups".

(b) The following fifth subparagraph is added:

"During the second phase, support will be given to exchange of best practice on new-media education by means of a European network for raising awareness of safer use of the Internet and new online technologies, supported by

- a comprehensive trans-national repository (web portal) of relevant information and awareness resources;

- applied sociological research involving all interested parties (e.g. education, official and voluntary children's welfare bodies, parents associations, industry, law-enforcement) into children's use of new technologies to identify educational and technological means for protecting them from harm.

The network will also provide technical assistance to candidate countries wishing to set up awareness actions and expand links with awareness activities outside Europe."

(7) In paragraph 4.2 the second, third and fourth subparagraphs are replaced by the following:

"The Commission will therefore organise at frequent intervals seminars and workshops addressing the various themes covered by the action plan, or a combination of such themes. Participation should include industry, user, consumer and citizens rights groups and government bodies involved in industry regulation and law enforcement, as well as leading experts and researchers. The Commission will seek to ensure broad participation from the EEA countries, from third countries and international organisations".

ANNEX II

INDICATIVE BREAKDOWN OF EXPENDITURE

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FINANCIAL STATEMENT

Policy area(s): Information Society

Activity(ies): Information Society Content and Services

1. BUDGET LINE(S) + HEADING(S)

B5-821- Action against illegal and harmful content on the Internet.

2. OVERALL FIGURES

2.1. Total allocation for action (Part B): 13,3 EUR million for commitment

The proposal is to extend the existing Safer Internet Action Plan (25 mio euro for 4 years 1999- 2002) by two years.

The proposed budget for the second phase is 13.3 million euro over two years. This amount is based on the current annual expenditure, adjusted for different balance between actions (relative increase for awareness), for the additional expense of technical assistance to candidate countries and for greater meeting/travel costs through wider international links. It represents constant expenditure in real terms, allowing for inflation at 2% per year, and the broader scope of the second phase will be attained by economies of scale (fewer, larger projects) and gains in efficiency.

2.2. Period of application:

2003-2004 inclusive.

2.3. Overall multiannual estimate on expenditure:

14.480 mio EUR

a) Schedule of commitment appropriations/payment appropriations (financial intervention) (see point 6.1.1)

EUR million (to 3rd decimal place)

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* Not including payments scheduled resulting from commitments entered into during the existing Action Plan 1999-2002.

b) Technical and administrative assistance and support expenditure(see point 6.1.2)

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c) Overall financial impact of human resources and other administrative expenditure (see points 7.2 and 7.3)

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2.4. Compatibility with the financial programming and the financial perspective

- Proposal compatible with the existing financial programming.

| | This proposal will entail reprogramming of the relevant heading in the financial perspective.

| | This may entail application of the provisions of the Interinstitutional Agreement.

2.5. Financial impact on revenue:

- No financial implications (involves technical aspects regarding implementation of a measure).

OR

| | Financial impact - the effect on revenue is as follows:

3. BUDGET CHARACTERISTICS

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4. LEGAL BASIS

Article 153 of the Treaty establishing the European Community

The proposed decision extends the period of validity of Decision no 276/1999/EC of the European Parliament and of the Council of 25 January 1999 adopting a Multiannual Community Action Plan on promoting safer use of the Internet by combating illegal and harmful content on global networks [7], and makes consequential amendments.

[7] OJ L 33, 6.2.1999, p. 1.

5. DESCRIPTION AND GROUNDS

5.1. Need for Community intervention [8]

[8] For further information see ex ante evaluation.

5.1.1 Objectives pursued

The general objectives of the Action Plan are to promote safer use of the Internet and new online technologies by combating illegal and harmful content, during a second phase.

The specific objectives during the second phase are:

(1) Allow users to report illegal content, with an expanded European network of hotlines;

(2) Promote self-regulation, and ensure co-operation at Community level;

(3) Empower users to avoid harmful content, by benchmarking filtering systems and services and by encouraging user-friendly content rating;

(4) Increase awareness about safer use, by setting up a European network of awareness activities.

5.1.2. Measures taken in connection with ex ante evaluation

A detailed ex-ante evaluation has been drawn up based on a number of inputs, including the intermediate evaluation of the Action Plan, the results of an high-level expert workshop, and information available to the Commission through its contacts with major players and from generally-available news sources.

5.2. Actions envisaged and arrangements for budget intervention

a) Allow users to report illegal content:

Improve yet further the operational effectiveness of the network, work closely with safer Internet awareness actions, adapt best practice guidelines to new technology, complete the network's coverage in the Member States, provide practical assistance to candidate countries wishing to set up hotlines and expand links with hotlines outside Europe;

b) Promote self-regulation:

Ensure co-operation at Community level through networking of the appropriate structures within Member States and through systematic review and reporting of relevant legal and regulatory issues, provide systematic information on relevant developments in such technology and the way it is used, provide technical assistance to candidate countries wishing to set up self-regulatory bodies and expand links with self-regulatory bodies outside Europe;

c) Empower users to avoid harmful content:

Focus on benchmarking of filtering software and services (performance, usability, suitability for European markets and new forms of digital content). Assistance for developing filtering technology will be carried forward under the Community research programme in close liaison with activities relating to filtering under the Action Plan.

d) Encourage user-friendly content rating:

Bring together the industries and parties concerned such as content providers, regulatory and self-regulatory bodies, software and Internet rating organisations and consumer associations, in order to foster conditions propitious for developing and implementing rating systems which are easy for content-providers and for consumers to understand and use, which provide European parents and educators with the necessary information to make decisions in accordance with their cultural and linguistic values, and which take account of the convergence of telecommunications, audio-visual media and information technology.

e) Increase awareness about safer use:

Give support to exchange of best practice on new-media education through setting up a European network for raising awareness of safer use of the Internet and new online technologies, supported by a comprehensive trans-national repository (web portal) of information and awareness resources, and by applied sociological research involving all interested parties (education, official and voluntary children's welfare bodies, parents associations, industry, law-enforcement) into children's use of new technologies to identify educational and technological means for protecting them from harm. The network will also provide practical assistance to candidate countries wishing to set up awareness actions and expand links with awareness activities outside Europe.

5.3. Methods of implementation

The approach taken will be enhanced networking of, and information sharing among, those active in the field, while building on and strengthening the existing achievements under the Action Plan. Actions will take account of the global nature of the Internet by reaching out to candidate countries and to major players in third countries.

The choice of instruments will be a mixture of cost-shared projects, where a broad range of partners are required, and 100% funded projects, usually service contracts for defined tasks involving specialist skills and logistical support.

An essential part of the networking activities will be face-to-face meetings, which are indispensable even in the Information Society. Electronic communications will be used to maintain contact and distribute information between meetings. The budgetary authority will be asked to include a commentary to confirm that conferences, seminars and expert meetings, including those organised by the Commission and paid for from the Action Plan budget (i.e. not including meetings of the Programme Committee) are to be treated as operational expenditure, not administrative expenditure.

6. FINANCIAL IMPACT

6.1 Total financial impact on Part B - (over the entire programming period)

6.1.1. Financial intervention

Commitments in EUR million (to the 3rd decimal place)

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6.1.2. Technical and administrative assistance, support expenditure and IT expenditure (commitment appropriations)

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6.2. Calculation of costs by measure envisaged in Part B for 2003

Commitments in EUR million (to the 3rd decimal place)

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7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1. Impact on human resources

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This figure may be subsequently modified following a more precise assessment of the level of existing resources required for the implementation of the actions contained in this communication.

7.2. Overall financial impact of human resources

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The amounts are total expenditure for twelve months.

7.3 Other administrative expenditure deriving from the action

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The amounts are total expenditure for twelve months.

I. Annual total (7.2 + 7.3)

II. Duration of action

III. Total cost of action (I x II) // 590,500 EUR

2 years

1,181,000 EUR

8. FOLLOW-UP AND EVALUATION

8.1. Follow-up arrangements

A set of performance indicators at programme and project level have been identified in the ex-ante evaluation for the different levels of objectives and activities, and will be compared to baseline figures identified before the start of the Programme.

8.2. Arrangements and schedule for the planned evaluation

The Commission will report to the European Council and the European Parliament on progress at the end of 2002 and at the end of 2004. Two evaluation reports will be produced during the second phase, in each case by a contractor selected on the basis of an open call for tenders under public procurement rules, used for:

- accountability purposes, with a focus on the achievement of the Action's objectives, its impact, and its cost-effectiveness, with a target audience of a broad, non-specialist nature drawn from the main stakeholder constituencies;

- helping adapt the Action to new needs and conditions, with the Action's managers as the main users;

- contributing to future decisions on designing and implementing interventions of a similar type, such as the broadly based wider initiative related to content in Internet and new online media.

The work of the evaluation contractors will draw on the output of the legal and technical observatories foreseen under Action Line 1.

9. ANTI-FRAUD MEASURES

Operations financed under this programme are subject to the control and supervision by the relevant institutions including OLAF and the Court of Auditors, both from Brussels and on the spot. An external auditor contracted by the Commission may check the accounts and records of expenditure.