General report on the activities of the European Union 2008.
Date: 2009-02-25
Institutions: European Commission
Subjects: EU activity, European Union, activity report

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General Report
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European Commission

General Report
on the Activities of
the European Union

2008

Brussels • Luxembourg, 2009

The  General  Report  on  the  Activities  of  the  European  Union  —  2008  was  adopted  by  the 
European Commission on 9 February 2009 under reference number SEC(2008) 1000 final.

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Printed in Belgium

printed on white chlorine free paper

The  President  of  the  European  Commission  to  the  President  of  the  European  
Parliament

Sir,

I have the honour to present the General Report on the Activities of the European Union 
for 2008, which the Commission is required to publish by Article 212 of the EC Treaty 
and Article 125 of the EAEC Treaty (1).

Yours faithfully,

Brussels, 4 March 2009

José Manuel Barroso
President

(1)  In accordance with the procedure described in the declaration on the system for fixing Community farm 
prices contained in the accession documents of 22 January 1972, the Commission will shortly be sending 
Parliament  the  Report  on  the  Agricultural  Situation  in  the  European  Union.  And,  in  accordance  with  an 
undertaking  given  to  Parliament  on  7  June  1971,  the  Commission  is  preparing  its  Annual  Report  on 
Competition Policy.

Contents

NOTE TO REAdERS 

INTROdUCTION 1

ChAPTER I — GENERAL POLITICAL ANd ECONOmIC FRAmEwORk 1

Improving the regulatory environment 

Better regulation 1

Reducing the administrative burden 2

Subsidiarity and proportionality 2

Transparency 2

Communication strategy 2

Lisbon Treaty 2

Global financial crisis 

ChAPTER II — PROSPERITY 3

Economic and social environment 

The Lisbon strategy: a partnership for growth and employment 3

Sustainable development strategy 3

Macroeconomic framework 3

Taxation 4

Competition 4

Levers of prosperity 

Progress of the internal market 

Innovation and enterprise policy 6

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CONTENTS

Competitiveness in the key sectors 

Research 6

Information society and the media 

Education and training 7

Transport 8

Energy 8

ChAPTER III — SOLIdARITY 9

Consolidating economic and social cohesion 

Regional dimension and cohesion policy 

Social dimension 9

Demographic aspects 

Solidarity with future generations and management of natural resources 

Environment 

Agriculture and rural development 

Fisheries and maritime affairs 

Promoting common values within the European Union 

Protecting fundamental rights and combating discrimination 

Rights associated with Union citizenship 

European Group on Ethics in Science and New Technologies 

Culture 

Youth, active citizenship and sport 

ChAPTER IV — SECURITY ANd FREEdOm 

European area of freedom, security and justice 

Implementing the Hague programme 

European law-enforcement area 

Police and customs cooperation 

Fight against terrorism, crime and drugs 

Management of external borders and immigration 

Risk management 

Public health 

Consumer protection 

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CONTENTS 

Food safety, plant health, animal health and animal welfare 

Transport safety and security 

Energy security and safety of installations 

Civil protection and European Union Solidarity Fund 

Protection of the financial interests of the European Union 

ChAPTER V — EUROPE IN ThE wORLd 

Proximity ties 

Enlargement process, pre-accession strategy and stabilisation  
and association process 

European neighbourhood policy 

Relations with Russia 

The European Union in the global economy 

International trade 

Customs union 

Transatlantic relations 

Relations with other industrialised and high-income countries 

Relations with emerging countries 

Contributing to international solidarity 

Protecting and promoting common values beyond the borders  
of the European Union 

Development policy 

Humanitarian aid 

Regional approaches 

Contributing to security in the world 

Common foreign and security policy 

European security strategy and European security and  defence policy 

Middle East peace process 

Reconstruction process 

Multilateral cooperation 

United Nations 

Council of Europe 

Organisation for Security and Cooperation in Europe 

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8 

CONTENTS

World Bank and regional development banks 

International Monetary Fund 

European Bank for Reconstruction and Development 

ChAPTER VI — LIFE OF ThE INSTITUTIONS, OThER BOdIES ANd AGENCIES 

European Parliament 

European Ombudsman 

Council and European Council 

Commission 

Court of Justice and other courts 

Court of Auditors 

European Economic and Social Committee 

Committee of the Regions 

European Central Bank 

European Investment Bank 

Agencies 

Legislative activity 

European Data Protection Supervisor 

ChAPTER VII — BUdGET ANd FINANCIAL ACTIVITIES 

Implementation of the 2008 budget 

Preparation of the 2009 budget 

Budget review 

Financial transparency system 

Audit and internal control 

INSTITUTIONS ANd OThER BOdIES 

dECENTRALISEd BOdIES OF ThE EUROPEAN UNION 

ThE EUROPEAN UNION IN 2008 

ANNExES 

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Note to readers

One of the many different sources of information on the European Union’s activities, 
the General Report aims to present a concise and readable panorama of the highlights 
of the year. In recounting the main events and developments over the past 12 months, 
it allows the reader to discern the key trends in the work of the institutions and in the 
implementation of Community policies.

For more detail, you may turn to:

 •

 •

 •

the Europa website, a veritable ‘gateway to the European Union’, designed for easy 
navigation (http://europa.eu/index_en.htm);
the websites of the various Community institutions and sources outside the institu-
tions cited at the end of each section of the General Report, together with the  relevant 
web address, under the heading ‘General references and other useful links’;
the 
Bulletin of the European Union, a monthly companion to the General Report, which 
provides an exhaustive account of the Community’s activities, complete with a wealth 
of references and hyperlinks (http://europa.eu/bulletin/en/welcome.htm).

Introduction

The year 2008 threw up many major challenges, to which the member States and the 
institutions responded as a group. The global financial crisis, climate change and inter-
national conflict brought rapid and effective European reaction that frequently pushed 
the Union to the forefront of the world political stage. The process of ratifying the Lisbon 
Treaty, which faltered in spring with the ‘no’ vote in the Irish referendum, was revived at 
the European Council in december.

The financial crisis which unfolded on the US subprime mortgages market in 2007 led 
to growing turmoil affecting the global financial system in its entirety before hitting 
European markets in September. The Union immediately took steps to deal with the 
impact of the crisis on the European economies. From the outset the Commission urged 
member States to take effective and coordinated action to resolve the urgent problems 
facing the financial sector rather than resorting to emergency measures on their own. 
The Union took a leading role in working towards a genuine complete overhaul of the 
international financial system, based on the principles of transparency, bank solidarity, 
accountability, integrity and global governance agreed at the G20 summit in washington 
on 15 and 16 November. The European Council meeting of 15 and 16 October confirmed 
the principles adopted by the Eurogroup, which had met for the first time at the level of 
heads of State or Government on 12 October, with a view to maintaining stability and ar-
riving at a coordinated approach to tackle the crisis. The measures, taken in conjunction 
with the central banks and supervisory authorities, were designed primarily to ensure 
sufficient liquidity for the financial institutions, to facilitate their funding, and to provide 
them with capital resources so that they could continue to finance the economy properly. 
The European Council emphasised that budget policies must remain in line with the 
revised Stability and Growth Pact, which should also be applied in a manner reflecting 
the current exceptional circumstances, as provided for in its rules. The Commission for its 
part put forward a number of proposals aimed at restoring confidence in the European 
financial and banking sector.

On 29 October, in order to tackle the economic downturn triggered by the crisis, the 
Commission presented a communication ‘From financial crisis to recovery: A European 
framework for action’ in which it proposed an action plan to support economic activity 

12 

INTROdUCTION

against the backdrop of the downturn in Europe. This was followed on 26 November by 
a European economic recovery plan that recommends short-term measures to boost 
demand, save jobs and help restore confidence and calls for a timely, targeted and tem-
porary fiscal stimulus of around EUR 200 billion, or 1.5 % of the Union’s GdP, involving 
both national budgets (around EUR 170 billion, or 1.2 % of GdP) and the Union budget 
as well as the European Investment Bank (EIB) (around EUR 30 billion). The main points 
in the plan were endorsed by the member States at the European Council meeting of 
11 and 12 december.

The other big issue of 2008 was the shaping of a European energy policy that would 
take account of climate change. On 23 January the Commission made a start by adopt-
ing an ambitious package of measures on energy and climate aimed at enabling the 
Union to reduce greenhouse gas emissions by at least 20 % and increasing the share 
of renewable energies in energy consumption to 20 % by 2020, in line with the com-
mitments given by the Union leadership in march 2007. The emission reduction target 
could be increased to 30 % by 2020 once a new global climate change agreement has 
been concluded. The spring European Council reiterated the Union’s commitment to 
maintaining its international leadership in matters of climate change and energy policy. 
On 11 and 12 december, thanks to close cooperation between the Commission and the 
Council Presidency, the European Council succeeded in reaching general agreement 
on the package, which takes account of the specific problems encountered by several 
member States.

Ratification of the Lisbon Treaty, signed on 13 december 2007, was another key item 
on the 2008 agenda. The referendum held in Ireland on 12 June — Ireland was the only 
country to hold a referendum — produced a ‘no’ vote of 53.4 %. At its meeting of 19 and 
20 June the European Council confirmed that the ratification process would continue in 
the other member States; it felt that more time was needed to analyse the situation and 
agreed to return to the subject in October. Ratification accordingly went ahead and the 
Treaty has now been approved by the parliaments of 25 member States. At the European 
Council meeting of 11 and 12 december a way forward was found: on the basis of an 
analysis of the situation by the Irish Taoiseach, the European Council concluded that 
the Union would make legally binding declarations clarifying the aspects of the Treaty 
that had given rise to concern in Ireland, where a further referendum would be held 
in the course of 2009 and before the end of the current Commission’s term of office. 
The European Council also reached agreement on a major institutional issue: the status 
quo — one Commissioner per member State — is to continue after 2014.

As part of the continuing effort to bring the Union closer to its citizens, the policy of 
communication was strengthened. Aware of the need to get citizens more involved in 
European political life and to improve the way it presents its activities to the outside 
world, the Commission adopted a communication addressing the future of the Plan d ap-
proach, applied from 2000 to 2007, now known as debate Europe. The Commission also 
proposed specific measures to provide the public with more information on European 

 INTROdUCTION 

13

issues through the audiovisual media. It also decided to concentrate its communication 
strategy on eight priorities in 2008, compared with 17 in 2007, in order to increase both 
visibility and impact. Those priorities are to be supplemented by four interinstitutional 
priorities selected for 2009: the elections to the European Parliament, energy and climate 
change, commemoration of the 20th anniversary of the fall of the Berlin wall, and sup-
port for growth, employment and solidarity.

Better regulation remained high on the Commission’s agenda. The second strategic re-
view of better regulation in the European Union, which the Commission presented on 
30 January, found that the action taken under the programme had resulted in significant 
improvements. In the course of the year the Commission presented 41 new simplification 
measures, and no fewer than 140 initiatives were considered by the independent Impact 
Assessment Board. On 10 march the Commission presented a communication on new 
fast-track actions capable of producing significant results with only minor changes to the 
existing legislation. The high-level group of independent stakeholders on administrative 
burdens also delivered opinions on ongoing reduction initiatives and recommended 
further measures of this kind.

with a view to improving the quality of legislation and increasing transparency, after 
setting out a code of conduct for interest representatives in a communication on the 
European transparency initiative adopted on 27 may, the Commission launched an on-
line register of interest representatives on 23 June. In a related area, on 30 April the 
Commission put forward a proposal for amending the regulation on public access to 
European Parliament, Council and Commission documents, with a view to enhancing 
transparency, especially as regards legislative activity, by improving and clarifying some 
of the regulation’s provisions. The Union also launched a user-friendly information ser-
vice that allows the public to keep close track of the way EU funds are being spent. This 
online database gives direct access for the first time to information on the beneficiaries 
of Community financing, covering all the funds administered directly by the European 
Commission. The service, based on EU accounting data, gives an overview of the pre-
ceding financial year.

A great number of measures and decisions were approved during the year in pursuit of 
the strategic objectives defined in 2005 as the focus of the Commission’s programme 
for its term in office, which runs until November 2009.

As regards the objective of prosperity, the economic climate in 2008 was marked by a 
rise and then a fall in the prices of commodities, turmoil on the financial markets and 
a slowing-down of the economy. Two communications, one on exploring the scope 
for limiting the effects of rising food prices on world markets and the second on rising 
oil prices, were presented by the Commission on 20 may and 13 June respectively for 
discussion by the European Council.

14 

INTROdUCTION

On 13 and 14 march the European Council launched the second three-year cycle of the 
revised Lisbon strategy for growth and jobs (2008–10). It confirmed that the current 
integrated guidelines (broad economic policy guidelines and employment guidelines) 
remain valid, as do the four priority areas of action defined by the spring European 
Council in 2006 (knowledge and innovation, business environment, employment, and 
energy and climate change).

On the monetary front, in a communication adopted on 7 may, the Commission took 
stock of economic and monetary union (EmU) on its 10th anniversary, analysing the 
performance of the euro-area economy, setting out the aims to be achieved and the 
challenges to be met, and proposing a policy programme to enable EmU to continue 
on the path of success. Cyprus and malta entered the euro area on 1 January 2008. The 
rest of the year was devoted to preparations for a further enlargement of the euro area 
to bring in its 16th member, Slovakia, which will officially adopt the euro on 1 January 
2009. The financial crisis has demonstrated once again that the euro acts as a buffer for 
the euro-area countries.

Competition made a vital contribution to the coordinated Union response to the global 
financial crisis, while preserving the possibility for member States to intervene where 
necessary according to national conditions. In response to the turmoil on financial 
markets from September onward, numerous emergency state aid measures had to be 
adopted, especially in the banking sector.

In pursuit of its vision of a modern single market policy, the Commission adopted an 
initiative creating a new European form of company, the private European company 
(societas privata europaea — SPE), intended to boost the competitiveness of small and 
medium-sized enterprises by making it easier for them to set up and operate in the single 
market. In another key development, the European Parliament and the Council adopted 
the regulation establishing the European Institute of Innovation and Technology, whose 
task it is to strengthen innovation capacity in the Community and the member States 
by bringing together the top players in the knowledge triangle — higher education, 
research and business. On the transport front, the Commission proposed a package 
of measures for more sustainable transport, including measures aimed at ‘greening’ 
transport, noise abatement measures for the existing rail fleet, internalisation of the 
external costs of transport and a review of the Eurovignette directive. Following on 
from the adoption in October 2007 of the action plan for an integrated maritime policy, 
the Commission presented a communication ‘Guidelines for an integrated approach to 
maritime policy: Towards best practice in integrated maritime governance and stake-
holder consultation’. In air transport, following the entry into force of a regulation on 
the subject, disabled persons and persons with reduced mobility, whether caused by 
disability, age or any other factor, now have easier access to air travel.

The European Council of 15 and 16 October reasserted that security of energy supply was 
a priority for the European Union. It called for action to achieve a number of objectives: 

 INTROdUCTION 

15

finalisation of the legislative package for the internal market in electricity and gas; swift 
implementation of the European energy efficiency action plan and the strategic energy 
technology plan; the determined pursuit of the diversification of energy sources in the 
context of the energy/climate package; development of crisis mechanisms for dealing 
with temporary interruptions of supply; the strengthening and expansion of critical 
infrastructure; and stabilising supply by developing relations with producer countries.

Turning to the objective of solidarity, since 2007 the cohesion policy has been imple-
mented by a new generation of sectoral and regional programmes aimed at relaunching 
jobs and growth in all member States and all regions of the Union. In 2008 the Union 
decided to promote better working conditions for temporary workers, the objective of 
the new rules being to ensure equal treatment for temporary agency workers and per-
manent staff by guaranteeing temporary staff the same basic working and employment 
conditions from the day they start work, unless otherwise agreed by the social partners. 
In October European Union leaders met representatives of the two sides of industry to 
discuss the repercussions of the financial crisis on the real economy, and especially on 
growth and jobs. On 18 November the Commission published a report on the impact of 
the free movement of workers in the context of EU enlargement, in which it concluded 
that mobile workers from the countries that joined the Union in 2004 and 2007 had had 
a positive impact on the European economy.

with a view to improving the operation of the common agricultural policy (CAP) in the 
light of experience since 2003, an objective that was discussed in its communication of 
November 2007 ‘Preparing for the “health check” of the common agricultural policy re-
form’, the Commission presented a number of proposals in the course of the year, which 
were adopted as a package by the European Council in december.

with a view to promoting common values in the Union, the European Year of Intercultural 
dialogue was officially launched in Ljubljana, Slovenia, on 8 January with a host of activ-
ities organised Europe-wide.

Turning to the objective of security and freedom on the police cooperation front, on 
18 April the Council reached general agreement on the proposal for a decision estab-
lishing the European Police Office (Europol), which would give Europol the status of a 
Union agency funded by a Community subsidy rather than intergovernmental financing. 
In the field of immigration and asylum policy, the Commission presented an ambitious 
communication setting out the principles, actions and tools for a common immigra-
tion policy for Europe, together with a policy plan on asylum defining an integrated 
approach to protection Union-wide. The communication sets out 10 principles that will 
form the basis of the common immigration policy. The European Council approved this 
European pact at its meeting of 15 and 16 October. On 12 december Switzerland joined 
the Schengen area and controls on persons at the internal land borders with Switzerland 
were removed. The process will be completed on 29 march 2009, when controls at air-
ports will also be discontinued.

16 

INTROdUCTION

As regards external policy and enlargement, on 5 march the Commission adopted a com-
munication ‘western Balkans: Enhancing the European perspective’ that presents new 
initiatives and consolidates existing ones in order to underpin the political and economic 
development of the countries of the western Balkans and speed up their progress on the 
road towards membership of the European Union. Accession negotiations with Croatia 
and Turkey also continued. In the light of progress in the four key areas identified by 
the European Union in 2005, stabilisation and association agreements were concluded 
with Bosnia and herzegovina, and Serbia, along with interim agreements on trade and 
trade-related matters. In February, following the adoption by the kosovo Assembly of 
a resolution declaring kosovo independent, the Council noted that the member States 
would decide on their relations with kosovo in accordance with national practice and 
international law. Under the European security and defence policy (ESdP) the Council 
also decided to set up a European Union rule of law mission in kosovo (EULEx kosovo) 
and appointed an EU special representative.

A new impetus was given to relations between the Union and its mediterranean part-
ners in the course of the year. In may the Commission adopted the communication 
‘Barcelona process: Union for the mediterranean’, outlining the process whose objective 
is to revive and give visibility to relations between the European Union and its part-
ners in the mediterranean region. On 13 July the inaugural summit of the new Union 
for the mediterranean was held in Paris, bringing together the member States of the 
European Union and countries on the mediterranean seaboard that are not members 
of the Union.

On 3 december the Commission adopted a communication on EU relations with 
the countries of eastern Europe proposing an enhanced partnership with Armenia, 
Azerbaijan, Belarus, Georgia, moldova and Ukraine, possibly leading to the conclusion 
of new association agreements that would incorporate agreements on free trade.

Following the outbreak of conflict in Georgia in August, an extraordinary European 
Council meeting took place on 1 September in Brussels. It condemned Russia’s unilateral 
decision to recognise the independence of Abkhazia and South Ossetia, and noted with 
concern the impact which the crisis was having on the whole of the region. It stressed 
the need to support regional cooperation and step up EU relations with its eastern 
neighbours, in particular through its neighbourhood policy, development of the ‘Black 
Sea synergy’ initiative and establishment of the new ‘eastern partnership’.

Negotiations with a view to the conclusion of the doha Round resumed on 21 July in 
Geneva. They reached an impasse following disagreement on the exact wording of a spe-
cial safeguard mechanism which would have allowed a developing country to increase 
its customs duties in the event of a sharp increase in agricultural imports following an 
opening-up of the market negotiated at the world Trade Organisation. Bilateral negotia-
tions on the conclusion of free-trade agreements continued with India, South korea, the 

 INTROdUCTION 

17

countries of the Association of South-East Asian Nations (ASEAN), the countries of the 
Gulf Cooperation Council, Central America and the Andean Community.

during the year summit meetings were held between the European Union and the 
United States, Russia, Japan, Canada, India, Brazil and South Africa. A new partnership 
framework between the European Union and Australia was adopted on 29 October, 
and will serve as the basis for bilateral relations in the years to come. On 17 October 
the Commission presented an EU policy initiative on trilateral cooperation between 
the European Union, Africa and China, reflecting China’s growing engagement with the 
African continent.

On 28 April the Council adopted a decision approving the revised Cotonou Agreement 
(review negotiated in 2005) governing relations between the European Union and the 
African, Caribbean and Pacific (ACP) states. The decision cleared the way for the entry into 
force of the 10th European development Fund (EdF), which is the fundamental tool for 
EU–ACP financial cooperation. On the ground, a European Union military operation was 
launched in Chad and the Central African Republic on 28 January in order to maintain 
peace in the region (operation EUFOR Tchad/RCA).

Finally, the Union continued to play a major role in the reconstruction process in 
Afghanistan. The EU police mission in Afghanistan (EUPOL Afghanistan) set up under 
the common foreign and security policy was fully deployed in march; its remit is to con-
tribute to the establishment of an Afghan police force that respects human rights and 
operates within the framework of the rule of law. In the course of the year the Union 
also sent observers to elections in Africa, Asia and Latin America. These missions worked 
hand in hand with governments and non-governmental organisations (NGOs) in Angola, 
Bangladesh, Bhutan, Cambodia, Ecuador, Guinea-Bissau, Nepal, Pakistan and Rwanda 
to evaluate the compliance of the electoral process with international standards for 
democratic elections.

Chapter I

General political and economic 
framework

Section 1

Improving the regulatory environment

Background

Improving the quality of European legislation is an essential element of the Lisbon strategy for 
growth and jobs, because a simpler, more modern regulatory environment helps to produce tan-
gible benefits for the general public and for businesses. The priorities for action by the European 
Union, as defined by the Commission, are to implement the programme to simplify and mod-
ernise existing legislation, to reduce the administrative burden, to monitor the quality of impact 
analyses in order to improve the drafting of new regulatory acts, and to improve compliance with 
Community law. Better regulation is an ongoing process that will require changes in institutional 
and administrative structures. It is a shared responsibi lity that calls for close cooperation with the 
other European institutions, the Member States and the local and regional authorities.

In 2007, in a joint declaration complementing the interinstitutional agreement on better law-
making, the European Parliament, the Council and the Commission undertook to respect the prin-
ciples of transparency, accountability and efficiency, in particular via the co-decision procedure.

Better regulation

The second strategic review of better regulation in the European Union (1), presented 
by the Commission on 30 January, found that the action taken under this programme 
had contributed to significant improvements.

(1) 

 COm(2008) 32 (OJ C 207, 14.8.2008).

20 

GENERAL POLITICAL ANd ECONOmIC FRAmEwORk

The Commission made it clear in this review that better regulation does not mean de-
regulation or delaying the adoption of new European rules when they are necessary, 
but ensuring that strategic and regulatory proposals are systematically evaluated and 
that a wide range of options — both regulatory and non-regulatory — are studied for 
each initiative. Under this initiative, existing legislation is simplified and codified and 
increasing use is made of recasting (by the end of 2008 some 135 codifications included 
in the major project to codify the acquis, relaunched in 2006, had been adopted and 
published, and approximately 50 recasts were adopted in the course of the year). In 
addition, concerted efforts are made to reduce the administrative burden of legisla-
tion. Pending proposals are screened and withdrawn if they are no longer relevant or 
consistent with Commission priorities. A new, more effective strategy is currently being 
devised in partnership with the member States to overcome the problems of imple-
menting Community law and ensuring compliance. Finally, more than 600 lapsed or 
obsolete pieces of legislation were proposed for repeal or removal from the directory 
of legislation in force in 2008.

The review also contains proposals for further action, including in-depth analysis of 
the European Union acquis, completion of the exercise of measuring the cost of the 
information requirements imposed on companies, and improving impact assessment 
in the policy preparation process (revision of the guidelines on impact assessment, 
strengthening the role of the Impact Assessment Board and review of the common 
approach to impact assessment agreed by the European Parliament, the Council and 
the Commission).

In its conclusions of 3 march and 29 and 30 may the Council welcomed the second 
strategic review of better regulation initiatives. In its view, these efforts should result in 
legislation that cuts excessive costs to businesses and makes it possible to achieve the 
policy objectives more effectively. The Commission and the member States were also 
asked to step up their efforts to take account of the implementing measures in their 
impact assessments and to start exchanging best practice in the area of the enforce-
ment and application of legislation. The Council also undertook to study ways of speed-
ing up the examination of simplification proposals under the current decision-making 
procedures.

On 25 September the Council concluded that better regulation efforts would have 
greater tangible and practical impact if the public and businesses had easy access, in 
their own language, to EU legislation. Improvements to the Internet sites on European 
law should give priority to using the most efficient and ergonomic search tools and to 
making all legislative texts available in a consolidated form in all official EU languages. 
It stressed that the ‘better regulation’ programme applies not only to the drafting stage 
of legislation but also to the entire regulatory cycle, including effective application.

ImPROVING ThE REGULATORY ENVIRONmENT  

21

Policymaking

The Impact Assessment Board, which started work in 2007 and is responsible for moni-
toring the quality of the Commission’s impact assessments, issued 182 opinions in 
2008 on impact assessments accompanying initiatives presented by the Commission 
(43 of these on resubmitted draft impact assessments and four on resubmitted impact 
assessments). 

Modernisation of existing legislation

On 30 January the Commission adopted the second progress report on the strategy for 
simplifying the regulatory environment (1). This gives a qualitative and quantitative pic-
ture of the tangible results that have already been achieved for citizens and businesses 
under the simplification rolling programme, and describes a package of new measures 
the Commission intends to present before the end of its term of office.

The simplification proposals already adopted include the single payment area in the 
European Union, the modernised customs code, the electronic customs decision and 
the reorganisation of the 21 common market organisations into a single system in order 
to streamline and simplify the common agricultural policy. The Commission’s new pro-
posals include the revision of the regulatory framework for electronic communications 
networks and services in order to reduce the administrative burden for the national 
regulatory authorities and economic operators.

The report also announced the Commission’s intention of carrying out a full screening 
of the Community acquis to check whether existing instruments are still needed and 
are as light-touch as possible in relation to the predicted policy results, that the right 
regulatory technique is being used and that any burden imposed is proportional to the 
policy objectives pursued. This process will also identify new initiatives for inclusion in 
the updated simplification rolling programme to be presented in early 2009.

In the course of the year the Commission presented 41 new simplification initiatives. 
These related specifically to agricultural and environmental legislation, consumer pro-
tection, competition, company law (such as common rules for direct support schemes 
for farmers (2), the Community eco-management and audit scheme (EmAS) (3), the 
Community eco-label (4), the horizontal framework on consumer rights (5), the block 
exemption regulation for state aid (6), reporting and documentation requirements in the 

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

 COm(2008) 33 (OJ C 202, 8.8.2008).
 COm(2008) 306 (OJ C 10, 15.1.2009).
 COm(2008) 402.
 COm(2008) 401.
 COm(2008) 614.
 Regulation (EC) No 800/2008 (OJ L 214, 9.8.2008).

22 

GENERAL POLITICAL ANd ECONOmIC FRAmEwORk

event of company mergers or divisions (1)) and the field of statistics. These initiatives also 
related to product regulation (such as the proposal for a directive on examining vari-
ations to the terms of marketing authorisations for medicinal products for human use 
and veterinary use (2), the proposal to recast the cosmetics directive (3), the proposal on 
the general safety of motor vehicles (4) and the proposal on the safety of toys (5).

Application of Community law

On 18 November the Commission presented its 2007 annual report on monitoring the 
application of Community law (6). This looks at three main areas where improvements 
have to be made: measures to prevent problems arising; partnership with the member 
States, geared to prevention, to resolve the problems encountered by the public; and 
defining the priorities in handling complaints and infringements.

The annual report comprises: a report containing a strategic assessment, priority-setting 
and a programme of work in the field of monitoring the application of Community 
law; a document containing an analysis by sector (7); a document containing a list of all 
infringement proceedings relating to the Treaties, regulations and decisions, showing 
the member States and sectors involved and the current stage of the proceedings, and 
a similar list for directives (8).

On the same day the Commission also adopted a sectoral communication on the ap-
plication of Community environmental law (9). This identifies the problems associated 
with implementing Community environmental legislation and describes the means 
for promoting compliance. These are aimed in particular at preventing infringements,  
responding to the particular concerns of the European public, identifying the most ser-
ious breaches so that they can be dealt with immediately and forcefully, and ensuring 
closer dialogue with the European Parliament, the public and interested parties.

At the end of 2008, 3 430 infringement proceedings were under way, including 1 840 
complaints.

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 

 COm(2008) 194 and COm(2008) 576.
 COm(2008) 123 (OJ C 202, 8.8.2008).
 COm(2008) 49.
 COm(2008) 316 (OJ C 10, 15.1.2009).
 COm(2008) 9 (OJ C 207, 14.8.2008).
 COm(2008) 777.
 SEC(2008) 2854.
 SEC(2008) 2855.
 COm(2008) 773.

ImPROVING ThE REGULATORY ENVIRONmENT  

23

Legal framework for Community statistics

On 11 march the European Parliament and the Council adopted decisions establishing a 
European statistical governance advisory board and a European statistical advisory com-
mittee (1). These initiatives are intended to strengthen and supplement the governance 
of the European statistical system.

Reducing the administrative burden

In its working document of 30 January entitled ‘Reducing administrative burdens in the 
European Union — 2007 progress report and 2008 outlook’ (2), the Commission reported 
on the first year of operation of the action programme to reduce administrative burdens. 
It also announced its intention of presenting new fast-track actions that could produce 
significant results with only minor changes to existing legislation.

These fast-track actions, presented in the communication of 10 march (3), covered the fol-
lowing areas: agriculture, industry policy, environment, statistics and the internal market 
(company law and accounting).

The expert group set up in 2007 under the chairmanship of mr Stoiber to advise the 
Commission on implementing the action programme to reduce the administrative bur-
den continued its work on fast-track actions throughout the year. It issued opinions on 
new and ongoing reduction initiatives and launched a competition to find the best idea 
for reducing the administrative burden.

In 2008 the Commission received hundreds of suggestions for measures to reduce ad-
ministrative costs through its online consultation, launched in 2007, or via reports or 
letters.

Subsidiarity and proportionality

On 26 September the Commission presented its 15th annual report ‘Better lawmaking’ 
on the application of the principles of subsidiarity and proportionality in 2007 (4). This 
also reported on two events in 2007 that affected the application of these two principles: 
the creation of the Impact Assessment Board (which has helped to increase the moni-
toring of subsidiarity and proportionality in the Commission’s impact assessments) and 
the agreement on a new Treaty (which will confer a new role on national parliaments 
in examining the application of these two principles). The report concludes that each 

(1) 
(2) 
(3) 
(4) 

 decisions No 235/2008/EC and No 234/2008/EC (OJ L 73, 15.3.2008).
 COm(2008) 35 (OJ C 202, 8.8.2008).
 COm(2008) 141 (OJ C 202, 8.8.2008). 
 COm(2008) 586.

24 

GENERAL POLITICAL ANd ECONOmIC FRAmEwORk

of the actors in the system, at national and European levels, has made a contribution 
to scrutinising Community proposals. moreover, the fact that national parliaments and 
the EU institutions have raised similar concerns shows a growing degree of consensus 
on what is meant by subsidiarity and proportionality in practice.

Transparency

Register of interest representatives

On 23 June the European Commission launched its online register of interest repre-
sentatives. All actors engaged in activities aimed at influencing the policy formulation 
and decision-making processes of the European institutions are asked to register and 
disclose certain information in order to enhance the transparency of relations between 
interest representatives and the Commission. Registration is conditional on accepting 
the content of the code of conduct.

The code of conduct for interest representatives was adopted by the Commission after 
a public consultation exercise. It was presented in the Commission communication of 
27 may ‘European transparency initiative: A framework for relations with interest rep-
resentatives (register and code of conduct)’ (1). In this communication the Commission 
defined interest representation activities and set out seven basic rules for how repre-
sentatives should behave.

Public access to documents

The three institutions presented their annual reports for 2007 (2) on the application of 
the regulation on public access to European Parliament, Council and Commission docu-
ments (3). On 30 April the Commission adopted a proposal to amend this regulation in 
order to enhance transparency, particularly as regards legislative activity, and at the 
same time improve and clarify certain provisions (4). The proposal followed the public 
consultation organised in 2007 on the basis of a Green Paper (5).

(1) 
(2) 
(3) 
(4) 
(5) 

 COm(2008) 323 (OJ C 10, 15.1.2009).
 COm(2008) 630.
 Regulation (EC) No 1049/2001 (OJ L 145, 31.5.2001).
 COm(2008) 229.
 COm(2006) 194 (OJ C 151, 29.6.2006) and COm(2007) 127 (OJ C 181, 3.8.2007).

ImPROVING ThE REGULATORY ENVIRONmENT  

25

Transparency in financial matters

A new Internet site on the system of financial transparency was launched on 2 October 
as part of the European transparency initiative (1). The site focuses on beneficiaries of 
funds from budget headings administered directly by the Commission or by the execu-
tive agencies responsible for managing certain European Union programmes.

All member States have also had to create an Internet site containing information on 
payments to beneficiaries of rural development aid (available from 30 September for 
expenditure from the European Agricultural Fund for Rural development (EAFRd (2)) 
and from 30 April 2009 for expenditure from the European Agricultural Guarantee Fund 
(EAGF)).

General references and other useful links

 •

 •

 •

 •

 •

 •

 •

Better regulation: 
http://ec.europa.eu/governance/better_regulation/index_en.htm

Impact assessment: 
http://ec.europa.eu/governance/impact/index_en.htm

Reduction of administrative burdens: 
http://ec.europa.eu/enterprise/admin-burdens-reduction/home_en.htm

Civil society: 
http://ec.europa.eu/civil_society/index_en.htm

Register of interest representatives: 
http://www.ec.europa.eu/transparency/regrin/

Financial transparency: 
http://ec.europa.eu/beneficiaries/fts/index_en.htm 
http://ec.europa.eu/agriculture/funding/index_en.htm

EUR-Lex: 
http://eur-lex.europa.eu/en/index.htm

(1) 
(2) 

 COm(2006) 194 (OJ C 151, 29.6.2006).
 See the first financial report on financial implementation of the EAFRd, COm(2008) 589.

26 

Section 2

GENERAL POLITICAL ANd ECONOmIC FRAmEwORk

Communication strategy

Background

Aware of the need to get citizens more involved in European political life and to improve the 
way it presents its activities externally, the European Commission has adopted a new approach 
to communication which consists of ‘listening better, explaining better and going local’. Since 
communication on European affairs must be a shared responsibility, in 2007 it proposed an 
interinstitutional agreement and management partnerships with interested Member States. 
In addition, it has opened ‘field offices for multilingualism’ within its representations in the 
Member States, which present the European Union’s messages in a clear manner by adapting 
the information to the local context.

On 2 April the Commission adopted a communication addressing the future of the Plan d 
approach applied from 2005 to 2007 (1). This initiative, which covers the period 2008–09, 
is now known as debate Europe. Specifically, its tasks are to:

 •

 •

 •

 •

co-finance the consultation of citizens on the future of Europe, under the manage-
ment of civil society organisations;

boost the capacity of the Commission’s representations and of local information 
relays to allow them to organise debates on Community issues;

increase synergies between the various Commission programmes which promote 
active citizenship;

 enhance interinstitutional cooperation within the member States and at Community 
level in a joint effort to establish contact with citizens.

Furthermore, this initiative continues the development of the most successful actions 
undertaken as part of Plan d, such as Internet debates, the European public spaces cre-
ated by the Commission representations and the information offices of the European 
Parliament or the citizens’ forums organised by the other Community institutions and 
bodies.

On 24 April the Commission also proposed (2) specific measures to provide citizens with 
more information on European issues through the audiovisual media. These measures 
focus on developing networks of audiovisual operators (radio, television and Internet) 

(1) 
(2) 

 COm(2008) 158 (OJ C 202, 8.8.2008).
 SEC(2008) 506.

COmmUNICATION STRATEGY 

27

through five-year ‘public service’ contracts. These networks of operators undertake to 
produce and disseminate, with complete editorial independence, programmes relating 
to European affairs in the various languages of the European Union. For instance, the 
online platform of Euranet, the network of European radio stations, was launched on 
11 November (1).

The Commission also centred its communication on eight priorities in 2008 (compared 
with 17 in 2007) in order to increase its visibility and its impact on citizens.

In this connection, four interinstitutional communication priorities have been selected 
for 2009: the elections to the European Parliament, energy and climate change, the 
20th anniversary of the fall of the Berlin wall, and support for growth, employment and 
solidarity.

In order to encourage a convergence of views on the European Union’s communica-
tion priorities, the Council and the European Parliament adopted, on 9 and 13 October 
respectively, a joint declaration on ‘Communicating Europe in partnership’.

In addition, with a view to improving dialogue with citizens, a start was made in 2008 on 
restructuring the Europa website (2). The aim is to simplify navigation and the editorial 
content and to increase interactivity. Likewise, an online calendar of the main activities 
of the European institutions, aimed at journalists, has also been available on this website 
since June 2008.

As regards communication outside the European Union, the Community delegations 
concentrated their public diplomacy work on the European Year of Intercultural dialogue 
and on energy and climate change issues.

Considerable progress was also made in the course of the year in developing more ef-
fective internal communication (3), particularly as regards the sharing of information be-
tween departments, joint training (also for management and for ‘staff as ambassadors’), 
the development of resources and evaluation.

General references and other useful links

 •

 •

 •

directorate-General for Communication: 
http://ec.europa.eu/dgs/communication/index_en.htm

Information sources and contact points for the European Union: 
http://europa.eu/geninfo/info/index_en.htm

debate Europe: 
http://europa.eu/debateeurope/

(1) 
(2) 
(3) 

 IP/08/1680.
 SEC(2007) 1742.
 SEC(2007) 912. 

GENERAL POLITICAL ANd ECONOmIC FRAmEwORk

28 

Section 3

Lisbon Treaty

Background

The year 2007 marked the 50th anniversary of the Treaties of Rome. The Berlin Declaration — 
signed to mark the occasion by the Presidents of the European Parliament, the Council and 
the Commission — reaffirmed Europe’s common values and set a dual goal: to pre-launch the 
process of reforming the Union following the rejection of the Treaty establishing a Constitution 
for Europe and to place the European Union on a renewed common basis before the European 
Parliament elections in 2009. The Intergovernmental Conference held in 2007 put the finishing 
touches to the new Treaty, to be known as the Treaty of Lisbon, and it was signed on 13 December 
2007 (1). It has to be ratified by every Member State before it can enter into force. On the same 
occasion, the Charter of Fundamental Rights was signed and proclaimed by the Presidents of the 
European Parliament, the Council and the Commission on 12 December 2007 in Strasbourg.

Ratification of the Lisbon Treaty

In the course of the year, the parliaments of 25 member States approved the Lisbon 
Treaty (see Table 1).

On 12 June the people of Ireland rejected the Treaty by 53.4 % to 46.6 % in a re-
ferendum.

Following the ‘no’ vote in Ireland, at its meeting of 19 and 20 June the European Council 
confirmed that the ratification process would continue in the other member States. It 
felt that more time was needed to analyse the situation and agreed to return to the 
subject in October.

At its meeting of 15 and 16 October it took note of the analysis of the results of the 
referendum presented by the Irish Taoiseach, Brian Cowen. The Irish government will 
continue its consultation process with a view to contributing to finding a way to resolve 
the situation.

The discussions were continued at the European Council of 11 and 12 december, where 
an approach was established to enable the Treaty of Lisbon to come into force before 
the end of 2009. Regarding the composition of the Commission, the European Council 

(1) 

 OJ C 306, 17.12.2007.

LISBON TREATY 

29

pointed out that under the existing Treaties the number of members of the Commission 
must be reduced in 2009. The European Council agreed that, provided the Treaty entered 
into force, a decision would be adopted under the necessary legal procedures to en-
able the Commission to continue to include one national of each member State. Similarly, 
provided Ireland undertook to seek ratification of the Treaty by the end of the term of the 
current Commission, the European Council agreed that legal guarantees would be given on 
three points: taxation, the security and defence policy of the member States, and the provi-
sions of the Irish Constitution in relation to the right to life, education and the family.

Table 1 
Ratification of the Lisbon Treaty
Ratification procedure
Member State
Parliamentary method
Belgium
Parliamentary method
Bulgaria
Parliamentary method
Czech Republic

Ratification date (1) Comments
15 October
28 April

denmark 
Germany

Parliamentary method
Parliamentary method

29 may

Estonia
Ireland
Greece
Spain
France
Italy
Cyprus
Latvia
Lithuania
Luxembourg
hungary
Malta
Netherlands
Austria
Poland

Parliamentary method
Referendum
Parliamentary method
Parliamentary method
Parliamentary method
Parliamentary method
Parliamentary method
Parliamentary method
Parliamentary method
Parliamentary method
Parliamentary method
Parliamentary method
Parliamentary method
Parliamentary method
Parliamentary method

Parliamentary method
Portugal
Parliamentary method
Romania
Parliamentary method
Slovenia
Parliamentary method
Slovakia
Parliamentary method
Finland
Sweden
Parliamentary method
United kingdom Parliamentary method
(1)  date of deposit of instruments of ratification.

23 September

12 August
8 October
14 February
8 August
26 August
16 June
26 August
21 July
6 February
6 February
11 September
13 may

17 June
11 march
24 April 
24 June
30 September
10 december
16 July

Adopted on 10 July
Adopted on 21 march
Vote in the Senate planned for 
mid-January 2009
Adopted on 24 April
Adopted on 23 may.
deposit of instruments of ratifica-
tion pending the opinion of the 
Federal Constitutional Court
Adopted on 11 June
Rejected on 12 June
Adopted on 11 June
Adopted on 15 July
Adopted on 7 February
Adopted on 31 July
Adopted on 3 July
Adopted on 8 may
Adopted on 8 may
Adopted on 29 may
Adopted on 17 december 2007
Adopted on 29 January
Adopted on 8 July
Adopted on 24 April
Adopted on 2 April, awaiting 
 signature by President
Adopted on 23 April
Adopted on 4 February
Adopted on 29 January
Adopted on 10 April
Adopted on 11 June
Adopted on 20 November
Adopted on 18 June

30 

GENERAL POLITICAL ANd ECONOmIC FRAmEwORk

General references and other useful links

 •

Treaty of Lisbon: 
http://europa.eu/lisbon_treaty/index_en.htm

Section 4

Global financial crisis

Background

The financial crisis which unfolded on the American subprime mortgage market in 2007 led to 
major turmoil and uncertainty in the entire global financial system. In response to this situation, 
in October 2007 the Council adopted a number of conclusions to address the main weaknesses 
in the financial system highlighted by the crisis. The areas to be given priority treatment were set 
out in the Ecofin roadmap, focusing on four key areas: improving transparency, the valuation 
of financial products, strengthening prudential requirements, and improving the functioning 
of the markets by means of a tighter credit rating policy.

In September the events following the government bail-out of American mortgage lend-
ers and the bankruptcy of a fourth American commercial bank (on 7 and 15 September 
respectively) triggered a global financial crisis which reached Europe at the end of 
September.

Emergency measures to address the economic impact of the financial crisis were im-
mediately taken across the globe. On top of those measures the European Union took a 
leading role in working towards a genuine and complete overhaul of the international 
financial system based on the principles of transparency, bank solidarity, responsibility, 
integrity and global governance.

Also, in the course of the year, before the financial crisis took hold in Europe, several ini-
tiatives and ideas for discussion on financial stability were presented in the run-up to the 
October 2007 roadmap. They are set out in detail in Chapter II, Section 1, ‘macroeconomic 
framework’ (1).

(1) 

 See ‘General’ and ‘Financial systems’ in Chapter II, Section 1, ‘macroeconomic framework’, of this Report.

GLOBAL FINANCIAL CRISIS 

31

The European response to the financial crisis

After the crisis was triggered in September, several member States were forced to take 
emergency measures to safeguard their national banking systems.

At the same time formal and informal talks were held between the member States to 
map out a common response to the economic slowdown and restore confidence on 
the financial markets.

From the outset of the crisis, the Commission signalled its commitment to help the 
member States to take effective, coordinated action to resolve the urgent problems 
facing the financial sector and thus address any systemic crisis. These emergency ini-
tiatives presented by the Commission are in line with the framework laid down by the 
Economic and Financial Affairs (Ecofin) Council in October 2007 to promote transparency 
and responsibility in the financial sector and support the development of the internal 
market.

The European Parliament made several formal requests for the Commission to take 
legislative action on the financial markets.

Against this background an informal meeting of European economics and finance min-
isters was held in Nice on 13 September.

On 23 September Parliament adopted two resolutions, the first calling for the introduc-
tion of legislation to improve the framework for the supervision of hedge funds and 
private equity, and the second for new rules to provide greater transparency in hedge 
fund and private equity policies.

On 1 October the Commission proposed (1) a review of the capital requirements direct-
ive (2). The proposed amendments focus on improving large exposure management, 
improving the quality of capital, streamlining supervision methods and making them 
more effective, improving liquidity risk management and rectifying the shortcomings 
of securitisation in the ‘originate to distribute’ model.

On 4 October the European members of the G8 met in Paris. The German, French, Italian 
and Uk leaders adopted a joint communiqué in which they undertook to take all the 
necessary steps to maintain the solidarity and stability of the financial system.

On 6 October this was followed by a statement by the 27 EU heads of State or Government. 
The EU leaders declared that they would all take the necessary measures to ensure the 
stability of the financial system (by means of enhanced bank deposit guarantees, cash 
injections from the central banks and measures targeted at particular banks).

(1) 
(2) 

 COm(2008) 602.
 directives 2006/48/EC and 2006/49/EC (OJ L 177, 30.6.2006).

32 

GENERAL POLITICAL ANd ECONOmIC FRAmEwORk

Following a meeting of the Eurogroup on 6 October the Council met in Luxembourg 
on 7 October. It agreed on a coordinated approach to tackle the financial crisis. Looking 
forward to the European Council meeting on 15 and 16 October, it adopted conclusions 
on an immediate response to the financial turmoil and declarations on the following 
subjects: strengthening financial stability; the need for tighter supervision of the finan-
cial markets; a coordinated Community response to the economic slowdown; and the 
levels of executive pay.

Following the statement by the heads of State or Government, the Council concluded 
that the main priority was to restore confidence in the financial sector and its proper 
functioning. The Council also concluded that there was a need to support systemic 
financial institutions and set out common principles to achieve that. It encouraged 
the Commission to amend some of the accounting rules for banks without delay. The 
member States agreed to raise deposit guarantees to a minimum of EUR 50 000. Lastly, 
the Council noted that the current rules (monitoring of state aid and the Stability and 
Growth Pact) were flexible enough to tackle the exceptional circumstances affecting 
Europe.

In line with the undertakings given by the Council on 7 October, on 13 October the 
Commission published guidelines (1) for the member States on measures taken for fi-
nancial institutions in crisis. The guidelines are based on the EC Treaty rules authorising 
aid to remedy a serious disruption in the economy of a member State (Article 87(3)(b) 
of the EC Treaty). Under the Community rules on state aid, the measures taken must not 
lead to undue distortions of competition or adversely affect the internal market. Also, 
the measures must be limited in time and be accompanied by appropriate contribu-
tions from the private sector. Compliance with these principles, including individual 
aid measures, must be ensured by the member States and will be monitored by the 
Commission. Also, on 5 december the Commission adopted detailed guidance on the 
recapitalisation of financial institutions by the member States in the current financial 
crisis (2) to ensure that the rest of the economy has access to sufficient financing and 
stabilise the financial markets whilst avoiding undue distortion of competition, in ac-
cordance with the Community rules on state aid. The guidance takes account of the fact 
that the credit squeeze is now also beginning to affect the real economy and financially 
healthy banks could require public funds to be able to provide businesses with sufficient 
loans. The communication supplements and expands on the information in the guidance 
document of 13 October (3).

On 15 October the Commission also presented a review (4) of the Community rules on 
deposit guarantee systems (5). The new rules are designed to restore confidence in the 

(1) 
(2) 
(3) 
(4) 
(5) 

 OJ C 270, 25.10.2008.
 C(2008) 8259.
 See ‘State aid’ in Chapter II, Section 1, ‘Competition’, of this Report.
 COm(2008) 661.
 directive 94/19/EC (OJ L 135, 31.5.1994).

GLOBAL FINANCIAL CRISIS 

33

financial sector. Thus the minimum deposit guarantee level will rise in one year’s time 
from EUR 20 000 to EUR 100 000 (rising to EUR 50 000 in the interim period), although 
each member State will be able to set higher levels. In addition, the time allowed for 
reimbursement where a bank goes bankrupt will be reduced from three months to 
three days.

On the same date the Commission adopted amendments to some of the current ac-
counting standards (International Accounting Standard IAS 39 and International Financial 
Reporting Standard IFRS 7) (1) to enable financial instruments to be reclassified and 
ensure that European financial institutions are not placed at a disadvantage vis-à-vis 
their international competitors (2). Then, with a view to simplification, on 3 November 
it adopted a consolidated text of all the international accounting standards applicable 
in the European Union (3).

On 9 October the European Parliament adopted a resolution on the future structure of 
financial supervision. The text formally requests the Commission to present proposals 
to improve the supervisory architecture and regulatory framework for financial services 
in Europe (Lamfalussy follow-up).

On 12 October a summit of the euro-area countries was held in Paris to lay down a joint 
plan of action for the members of the euro-area and the European Central Bank to tackle 
the current financial crisis. The Eurogroup representatives adopted a declaration on a 
concerted plan of action in the euro-area countries.

The economic and financial situation and the European Union’s desire to make a major 
contribution to the international resolution of the crisis also dominated the European 
Council meeting on 15 and 16 October, which confirmed the principles adopted by 
the Eurogroup on 12 October to maintain financial stability. The measures envisaged 
are designed, in particular, in cooperation with the central banks and the supervisory 
authorities, to ensure sufficient liquidity for financial institutions, facilitate their fund-
ing and provide them with the capital resources to enable them to continue financing 
the economy as normal. The European Council also decided to set up an informal early 
warning and information exchange and evaluation mechanism (financial crisis task 
force) without delay. monthly meetings of the national supervisors were also agreed to 
strengthen oversight of the European financial sector.

The European Council also approved an initiative to work together with international 
partners as soon as possible on an overhaul of the international financial system and a 
new global governance. It committed Europe to taking the lead in devising a new system 
of financial governance. It was planned to hold an international summit before the end 
of 2008 (see below under ‘G20 international summit’).

(1) 
(2) 
(3) 

 Regulation (EC) No 1004/2008 (OJ L 275, 16.10.2008).
 See ‘Accountancy and auditing’ in Chapter II, Section 2, ‘Progress of the internal market’, of this Report.
 Regulation (EC) No 1126/2008 (OJ L 320, 29.11.2008).

34 

GENERAL POLITICAL ANd ECONOmIC FRAmEwORk

Ahead of that, the President of the European Council and the President of the Commission 
met the US President in New York on 18 October. The three leaders agreed to propose a 
series of international summits to tackle the financial crisis. The ground to be covered at 
the summits included the supervision of financial institutions, the activities of high-risk 
hedge funds and the role of the International monetary Fund (ImF).

In a resolution of 22 October on the October European Council meeting, the European 
Parliament called for measures to improve financial control. It repeated its call for legisla-
tive measures to strengthen the regulatory and supervisory framework and crisis man-
agement in the European Union, i.e. bank regulation and supervision, the role of credit 
rating agencies, securitisation, hedge funds, leverage, transparency obligations, winding-
up rules, clearing for over-the-counter markets and crisis prevention mechanisms.

Similarly, the Council meeting on 4 November was mainly devoted to the response to 
the financial crisis, with discussion focusing on continuing the efforts already made. The 
finance ministers also discussed coordination of national action to support the financial 
sector, granting assistance to those European countries affected by the crisis and the 
need for the EU to speak with one voice in the debate on overhauling the international 
financial system.

The Council approved a loan of EUR 6.5 billion to hungary (1) to enable it to cope with the 
heavy pressure on its financial markets. On top of that loan, the ImF and the world Bank 
provided financial assistance to support its balance of payments in the medium term.

In addition, the first meeting of the high-level expert group on financial supervision 
(set up by the President of the Commission) was held on 12 November, with the aim of 
presenting the Commission with recommendations on strengthening European super-
visory arrangements and examining cooperation between European supervisors and 
their international counterparts (2).

On the same date the Commission adopted a proposal for a regulation on credit rating 
agencies (3). The proposal introduces a legally binding registration and external surveil-
lance regime under which European regulators will be responsible for supervising the 
policies and procedures applied by credit rating agencies.

At its meeting on 2 december the Council approved an increase in the assistance ceil-
ing available in the event of financial difficulties in member States outside the euro area 
from EUR 12 billion to EUR 25 billion (4). As regards the response to the financial crisis, it 
specifically insisted on the need to set up, without delay, national support schemes for 
bank guarantees, but also, and in particular, for recapitalisation plans.

(1) 
(2) 
(3) 
(4) 

 COm(2008) 716.
 IP/08/1679.
 COm(2008) 704.
 Regulation (EC) No 1360/2008 (OJ L 352, 31.12.2008).

GLOBAL FINANCIAL CRISIS 

35

European economic recovery plan

To tackle the economic slowdown sparked by the financial crisis, on 29 October the 
Commission presented a communication ‘From financial crisis to recovery: A European 
framework for action’ (1). It proposes a plan of action to support economic activity against 
the background of the downturn in Europe, based on a three-part approach: a new 
financial market architecture at EU level, measures to deal with the impact on the real 
economy, and a global response to the financial crisis.

Then, on 26 November, it adopted a European economic recovery plan (2). Presented 
under the umbrella of the Lisbon strategy, the plan has two key pillars. The first is a 
major injection of purchasing power into the economy to boost demand and restore 
confidence. The Commission proposes that the member States and the European Union 
agree to an immediate budgetary impulse amounting to EUR 200 billion (1.5 % of GdP) 
to boost demand whilst fully complying with the Stability and Growth Pact. The second 
rests on the need to direct short-term action to reinforce Europe’s competitiveness in 
the long term. The plan sets out a comprehensive programme to direct action to ‘smart’ 
investment, i.e. investing in the right skills for tomorrow’s needs, in energy efficiency to 
create jobs and save energy, in clean technologies to boost sectors such as construc-
tion and automobiles in the low-carbon markets of the future, and in infrastructure and 
interconnection to promote efficiency and innovation.

On 2 december the Council approved a contribution for the december European Council 
meeting on the European economic recovery plan. In particular, the Council supported 
a stimulus of the order of 1.5 % of the EU’s GdP. The measures taken to support the 
member States’ activities had to be coordinated and take account of the different situ-
ations in the individual member States. The European Council endorsed the European 
economic recovery plan at its meeting on 11 and 12 december.

In line with the recovery plan, on 17 december the Commission adopted a temporary 
framework for state aid (3) providing the member States with additional possibilities to 
tackle the effects of the credit squeeze on the real economy. The Commission also pro-
posed, on 10 december, a review of the multiannual financial framework (2007–13) (4), 
under which additional funds of EUR 5 billion would be used in 2009 and 2010 to  
improve the energy network and the broadband infrastructure, without increasing the 
overall level of the financial framework.

(1) 
(2) 
(3) 
(4) 

 COm(2008) 706.
 COm(2008) 800.
 IP/08/1993. See ‘State aid’ in Chapter II, Section 1, ‘Competition’, of this Report.
 COm(2008) 859.

36 

GENERAL POLITICAL ANd ECONOmIC FRAmEwORk

In addition, on 16 december the Commission adopted a package of measures to facilitate 
implementation of the economic recovery plan and strengthen the Lisbon strategy (1).

G20 international summit

An international summit meeting of the main countries and institutions concerned by 
the financial crisis took place in washington on 15 November to discuss the possible 
reform of the international financial system. It followed the informal meeting of the 
heads of State or Government of the European Union in Brussels on 7 November and 
the meeting of the G8 finance ministers in São Paolo on 8 and 9 November. The summit 
brought together the heads of State or Government of the G20, the Secretary-General 
of the United Nations, the managing director of the ImF, the President of the world Bank, 
the President of the Commission and the Chair of the Financial Stability Forum, who 
adopted a declaration on the financial markets and world economy.

The summit, held on the European Union’s initiative, mapped out an ambitious work 
programme for a concerted recovery of the world economy, more effective regulation 
of the financial markets, better global governance and the rejection of protectionism.

General references and other useful links

 •

Press pack on the financial crisis: 
http://europa.eu/press_room/press_packs/crisis/index_en.htm

(1) 

 See Chapter II, Section 1, ‘The Lisbon strategy: a partnership for growth and employment’, of this 
Report. 

Chapter II

Prosperity

Section 1

Economic and social environment

Background

The renewed Lisbon strategy — which is intended to ensure a prosperous, fair and environ-
mentally sustainable future for Europe — focuses on growth and employment in a context of 
globalisation and sustainable development. In 2007 the institutions noted that this strategy, 
which was defined in 2005, had started to bear fruit. The Commission has therefore proposed 
a programme for a further three-year cycle.

At the same time, two out of the seven challenges in the sustainable development strat-
egy have become priorities for the Union: climate change and sustainable development. 
In 2007, the European Council ushered in a new era in European energy policy by adopt-
ing ambitious, binding targets for 2020 as regards the reduction of greenhouse gases,  
renewable energy and biofuels and carbon capture and storage.

The Lisbon strategy: a partnership for growth and 
employment

On 13 and 14 march the European Council launched the second three-year cycle of the 
renewed Lisbon strategy for growth and employment (2008–10). It confirmed that the 
current integrated guidelines (the broad economic policy guidelines and the employ-
ment guidelines) and the four priority areas of action defined by the spring European 
Council in 2006 (knowledge and innovation, business environment, employment, energy 

38 

PROSPERITY

and climate change) remain valid. It also stressed that a renewed EU-level commitment 
to structural reforms, sustainable development and social cohesion will be necessary 
after 2010 in order to lock in the progress achieved by the renewed Lisbon strategy. It 
called on the Commission, the Council and the national Lisbon coordinators to start 
thinking about the future strategy beyond 2010.

On 16 december the Commission adopted a package of measures designed to facilitate 
the implementation of the European economic recovery plan of 26 November (1) and to 
strengthen the Lisbon strategy. The package includes a report on the implementation 
and the future priorities of the Lisbon strategy (2).

The Commission also revised the European Globalisation Adjustment Fund (EGF) to max-
imise its potential to help people to get back into work (3). Likewise, it adopted a com-
munication ‘New skills for new jobs’ (4) which makes a first assessment of the European 
Union’s future skills and labour market needs up to 2020 (5).

A further communication adopted in the framework of the 16 december package ex-
plains how the member States can use cohesion policy funds to boost the economy in 
the short term while managing long-term challenges such as improving competitiveness 
and the transition to a low-carbon economy (6). Out of the total cohesion policy budget 
(2007–13), EUR 230 billion has been allocated to investments in the four priority areas 
of the renewed Lisbon strategy for growth and employment.

A communication setting out the immediate priorities for cooperation in the field of 
education and training for the period 2009–10 and the strategic long-term challenges 
was also adopted in the context of the Lisbon strategy package (7).

Finally, the package includes a communication on the external aspect of the Lisbon 
strategy (8) which is based on a recovery plan and contains proposals to improve the EU’s 
international regulatory cooperation and to ensure fair and open access to third-country 
markets. It also contains a single market review (9).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

(7) 
(8) 
(9) 

 COm(2008) 800. See ‘European economic recovery plan’ in Chapter I, Section 4, of this Report.
 COm(2008) 881.
 COm(2008) 867.
 COm(2008) 868.
 See ‘Employment’ in Chapter III, Section 1, ‘Social dimension’, of this Report.
 COm(2008) 876. See ‘Cohesion policy’ in Chapter III, Section 1, ‘Regional dimension and cohesion policy’, 
of this Report.
 COm(2008) 865. See ‘Lifelong learning’ in Chapter II, Section 2, ‘Education and training’, of this Report.
 COm(2008) 874. See ‘market access strategy’ in Chapter V, Section 2, ‘International trade’, of this Report.
 SEC(2008) 3064. See ‘Single market review’ in Chapter II, Section 2, ‘Progress of the internal market’,  
of this Report.

ECONOmIC ANd SOCIAL ENVIRONmENT 

39

Furthermore, at its meeting on 26 and 27 November the Committee of the Regions 
adopted an outlook opinion in which it emphasised the need for closer coordination of 
growth and employment policies at the various levels of government.

Sustainable development strategy

The purpose of the June 2006 revised sustainable development strategy is to respond 
to the following seven priority challenges: climate change and clean energy; sustainable 
transport; sustainable consumption and production; the conservation and management 
of natural resources; public health; social inclusion; and demography, migration and 
global poverty.

On the basis of this revised strategy, the European Union has continued throughout 
the year to build sustainable development into all its policies. The principal long-term 
objective of sustainable development — which concerns quality of life, intergenerational 
equity and the long-term viability of European society — and the medium-term object-
ive of growth and employment in the context of the Lisbon strategy have continued to 
converge. Examples of such convergence at European level include: the political priorities 
on energy and climate change; the single market, which offers proof that opening up 
the market can improve quality of life if it is accompanied by social and environmental 
measures; the renewed social agenda, which is aimed at increasing opportunities and 
access for European citizens and strengthening solidarity with the needy; and efforts 
towards better regulation which promotes the consistent application of policies and calls 
for the systematic assessment of economic, social and environmental impacts. Emphasis 
has been placed on effective application of policies which will produce results that can 
be measured on the ground.

As provided for in the revised strategy, in 2008 the Commission published a citizens’ 
guide to the strategy which sets out the European Union’s approach to the issue and 
its aims and provides specific examples of how people can contribute to sustainable 
development.

In response to a request from the European Council of december 2007, the Commission 
will be presenting the next strategy report in June 2009.

Macroeconomic framework

General

The economic climate in 2008 was marked by a rise in the prices of basic products, 
turmoil on the financial markets and a slowing-down of the economy.

40 

PROSPERITY

Solutions to limit the effects of rising food prices on world markets were presented in 
a communication of 20 may (1). On 13 June a communication on rising oil prices fol-
lowed (2). The two communications were discussed at the European Council meeting 
on 19 and 20 June.

As for the turmoil on financial markets from September onwards, the European Union’s 
immediate response is dealt with in Chapter 1, Section 4 (3). Other measures relating 
to financial markets are described under the heading ‘Financial systems’ in this section 
(see below).

The economic slowdown was confirmed in the autumn economic forecast for the period 
2008–10 which the Commission presented on 3 November.

Given this economic situation, on 29 October the Commission adopted a communi-
cation ‘From financial crisis to recovery: A European framework for action’ (4) and, on 
26 November, it put forward a European plan to relaunch the economy (5). These two 
initiatives are also described in Chapter I, Section 4 (6).

On 14 may the Council adopted a recommendation on the 2008 update of the broad 
economic policy guidelines for the member States and the Community for the period 
2008–10 (7).

Financial systems

On 27 February the Commission presented two communications, one on adapting the 
European and global financial systems to strengthen financial stability (8) and the other 
on sovereign wealth funds (9).

with regard to financial stability, the Commission sought the European Council’s con-
firmation of the principles which will guide the EU’s efforts to improve financial market 
transparency and reinforce prudential supervision and risk management, and to set 
out the broad outlines of the action to be taken. The communication forms part of the 
roadmap adopted by the Council in October 2007.

(1) 

(2) 

(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 

 COm(2008) 321 (OJ C 10, 15.1.2009). See ‘Agricultural prices and related measures’ in Chapter III,  
Section 2, ‘Agriculture and rural development’, of this Report.
 COm(2008) 384 (OJ C 10, 15.2009). See ‘General’ in Chapter II, Section 2, ‘Energy’ and ‘Content of the com-
mon fisheries policy’ in Chapter III, Section 2, ‘Fisheries and maritime affairs’, of this Report.
 See ‘European response to the financial crisis’ in Chapter I, Section 4, of this Report.
 COm(2008) 706.
 COm(2008) 800.
 See ‘European economic recovery plan’ in Chapter I, Section 4, of this Report.
 OJ L 137, 27.5.2008 and OJ L 139, 29.5.2008.
 COm(2008) 122 (OJ C 202, 8.8.2008).
 COm(2008) 115 (OJ C 202, 8.8.2008).

ECONOmIC ANd SOCIAL ENVIRONmENT 

41

The communication on sovereign wealth funds addresses the issues posed by these 
funds as a specific category of cross-border investments. It shows how the adoption 
of a common approach enables a good balance to be struck between addressing con-
cerns about these funds and maintaining the shared benefits of an open investment 
environment.

The European Council of 13 and 14 march concluded that, in order to enhance the 
stability of financial markets, measures should be taken to improve transparency and 
functioning, and to strengthen supervision and the regulatory framework at national, 
EU and international levels. Special attention was also paid to the future of sovereign 
wealth funds.

As requested by the European Council, in its conclusions of 14 may the Council approved 
the measures and procedures to be put in place to improve the European Union’s in-
struments for financial supervision and financial stability. It also updated the roadmaps 
for strengthening the EU’s instruments for financial stability and the measures taken 
to deal with the financial crisis (roadmap adopted in October 2007) and the review of 
the Lamfalussy process for the regulation of financial services (roadmap adopted in 
december 2007).

The measures taken in response to the financial crisis are dealt with in Chapter 1, 
Section 4.

Stability and Growth Pact

The Community institutions conducted their annual review of the situation in each 
member State. On the basis of the Commission recommendations, the Council succes-
sively adopted its opinions on the updated stability and convergence programmes of 
the EU-27 (1).

The following action was taken with regard to excessive deficit procedures in 2008.

 •

The improvement in the situation in Italy, Portugal, Slovakia, the Czech Republic and 
Poland prompted the Council to follow the Commission’s recommendations and, 
on 3 June (2) in the case of the first four member States, and on 8 July (3) in the case 
of Poland, to abrogate its earlier decisions on the existence of excessive deficits in 
those countries.

(1) 
(2) 
(3) 

 OJ C 49, 22.2.2008, OJ C 73, 19.3.2008, OJ C 74, 20.3.2008 OJ C 75, 26.3.2008, and OJ C 182, 19.7.2008.
 decisions 2008/560/EC, 2008/561/EC, 2008/562/EC and 2008/563/EC (OJ L 181, 10.7.2008).
 decision 2008/622/EC (OJ L 200, 29.7.2008).

42 

 •

1) the Council adopted a decision on the existence of an excessive deficit 
On 8 July (
in the United kingdom, with a recommendation on the measures to be taken to 
remedy this situation.

PROSPERITY

In response to the exceptional circumstances caused by the financial crisis, on 15 and 
16 October the European Council decided that budget policies should continue to come 
under the revised Stability and Growth Pact, the application of which should also reflect 
the exceptional circumstances affecting the EU, as its rules provide.

Quality and sustainability of public finances

On 24 June the Commission presented a communication ‘Public finances in EmU in 
2008 — The role of quality of public finances in the EU governance framework’ (2). The 
communication contains the main messages of the report on past budgetary develop-
ments and the risks going forward as well as proposals for enhancing the effectiveness 
of the preventive arm of the Stability and Growth Pact, with a particular focus on better 
integration of the quality of public finances in economic surveillance.

For its part, the Council expressed its view on the quality of public finances in its conclu-
sions of 14 may. It emphasised the need to step up efforts to improve the measurement 
and analysis of the quality of public finances and its impact on growth and indicated 
that it would return to this issue in 2009.

Economic and monetary union

On a general level, on 7 may the Commission adopted a communication ‘EmU at 10: 
Successes and challenges after 10 years of economic and monetary union’ (3). It analyses 
the performance of the euro-area economy since the introduction of the single currency 
in 1999. It also sets out the aims to be achieved and the challenges facing the euro area 
and proposes a political programme which will enable economic and monetary union 
(EmU) to continue to be a success.

more specifically, in its communication of 18 April ‘The introduction of the euro in Cyprus 
and malta’ (4), the Commission covered the most important aspects of the changeover 
process, in particular the cash changeover, the conversion of the administrative and 
financial systems, the real and perceived impact of the euro’s introduction on prices, and 
the opinion of citizens on the related information and communication campaigns.

(1) 
(2) 
(3) 
(4) 

 decision 2008/713/EC (OJ L 238, 5.9.2008).
 COm(2008) 387 (OJ C 10, 15.1.2009).
 COm(2008) 238.
 COm(2008) 204 (OJ C 202, 8.8.2008).

ECONOmIC ANd SOCIAL ENVIRONmENT 

43

with regard to future enlargement of the euro area, the Commission concluded in its 
convergence report of 7 may (1) that, out of the member States examined, only Slovakia 
fulfilled the conditions for adoption of the euro. On the basis of this report and that of the 
European Central Bank, it therefore adopted a proposal that Slovakia should adopt the 
single currency on 1 January 2009 (2). having been welcomed by the European Council 
in June and endorsed by the European Parliament, the decision was adopted by the 
Council on 8 July (3). The Commission subsequently presented its seventh report (4) and 
eighth report (5) on the progress of the practical preparations for the introduction of the 
single European currency in Slovakia on 18 July and 12 december, respectively.

Taxation

General

On 14 may the Council adopted its conclusions on ‘Tax issues in agreements with third 
countries’. It emphasised the importance of implementing, on as broad a geographical 
basis as possible, the principles of good governance in the tax area.

with regard to efforts to eliminate harmful tax competition, on 3 June the Council adopt-
ed conclusions on the code of conduct for business taxation and, on 2 december, it 
adopted a new work programme for the group responsible for the code of conduct.

As for the European Parliament, on 2 September it adopted a resolution on a coordinated 
strategy to improve the fight against tax fraud and to eliminate the tax losses to which 
fraud gives rise by identifying the areas in which European legislation and administra-
tive cooperation between the member States could be improved without imposing an 
unnecessary burden on the tax authorities or taxpayers.

On 9 October the Commission adopted a report on the ex post evaluation of the Fiscalis 
2003–07 programme (6). Its conclusions indicate that the programme has improved the 
functioning of the taxation systems in the internal market by increasing cooperation 
between member States, their authorities and officials.

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

 COm(2008) 248.
 COm(2008) 249.
 decision 2008/608/EC (OJ L 195, 24.7.2008).
 COm(2008) 480.
 COm(2008) 843.
 COm(2008) 623.

44 

Direct taxation

PROSPERITY

Following the Council’s conclusions of 14 may, on 15 September the Commission pre-
sented its first report (1) on the operation of the savings directive (2). The report contains 
an evaluation of the effects of the directive and sets out the Commission’s view on 
possible amendments to the scope. On the basis of this report, on 13 November the 
Commission adopted a proposal for amendment of this directive to put an end to tax 
evasion (3).

Furthermore, on 2 december the Council adopted a resolution on the coordination of 
direct taxation systems as regards exit taxes.

Indirect taxation

In 2008 the Council approved various legislative proposals on indirect taxation:

 •

 •

 •

 •

 •

on 12 February a package of measures to facilitate the payment and refund of VAT 
within the European Union (4); the VAT package contains: a directive on the place of 
supply of services; a mini one-stop shop for telecom, broadcasting and e-commerce 
services; a directive on procedures for VAT refunds to non-established businesses; 
and a regulation on the exchange of information between member States which is 
necessary to underpin the new arrangements;
on the same date a directive concerning indirect taxes on the raising of capital (capi-
tal duty directive) (5); the aim of the directive is to contribute to legal certainty by 
enhancing clarity, rationality and simplification of legislation in this field;
on 26 may a directive on mutual assistance for the recovery of claims relating to 
certain levies, duties, taxes and other measures (6); in this context, on 28 November 
the Commission adopted a regulation laying down the detailed rules required for 
implementing certain provisions of the directive (7);
on 9 June an amendment to the decision concerning dock dues in the French over-
seas departments (8) to take account of new products made in the French department 
of Guyana which were not covered by current European Union legislation;
9) 
on 16 december a directive concerning the general arrangements for excise duty (
to strengthen the fight against tax fraud and to simplify the procedures applicable 
to the movement of products subject to excise duty;

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 

 COm(2008) 552.
 directive 2003/48/EC (OJ L 157, 26.6.2003).
 COm(2008) 727.
 directives 2008/8/EC and 2008/9/EC and Regulation (EC) No 143/2008 (OJ L 44, 20.2.2008).
 directive 2008/7/EC (OJ L 46, 21.2.2008).
 directive 2008/55/EC (OJ L 150, 10.6.2008).
 Regulation (EC) No 1179/2008 (OJ L 319, 29.11. 2008).
 decision 2008/439/EC (OJ L 155, 13.6.2008).
 directive 2008/118/EC (OJ L 9, 14.1.2009).

ECONOmIC ANd SOCIAL ENVIRONmENT 

45

 •

1) and the regulation on 
on the same day an amendment to the VAT directive (
administrative cooperation on VAT (2) to speed up the collection and exchange of 
information on intra-Community transactions as from 2010 (3).

For its part, the Commission proposed several initiatives to combat VAT fraud more 
effectively:

 •

 •

4) aimed 
a communication on measures to change the VAT system to fight fraud (
in particular at the introduction of taxation for intra-Community supplies and the 
introduction of a generalised reverse charge (22 February);
a new series of measures and a communication announcing the various legislative 
proposals, together with a timetable (5); the measures concern shared responsibility 
and solidarity and exemption from VAT on imports (1 december).

Following on from the Commission’s communication (6) on action to help improve the 
fight against VAT fraud, on 7 October the Council approved the Eurofisc programme 
guidelines. These are measures to combat VAT fraud and to facilitate the exchange of 
information between the member States’ tax authorities on operators suspected of 
fraud.

In other areas, on 7 July the Commission proposed an amendment to the VAT directive 
as regards reduced rates of value added tax (7). The entire housing sector, restaurant 
and catering services and locally supplied services (especially labour-intensive services) 
should be included on the list of goods and services eligible for reduced rates.

with regard to excise duty on tobacco, on 16 July the Commission adopted a report 
and a proposal for a directive to amend the current EU legislation (8). The proposal for a 
directive provides for a gradual increase in EU minimum taxation levels on cigarettes and 
fine cut tobacco (hand-rolling tobacco) up to 2014. It also updates the definitions of the 
various types of tobacco product and makes the taxation rules more transparent. The 
report and the proposal take stock of the situation on the tobacco market and propose 
possible measures to modernise excise duties on tobacco products.

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 

 directive 2006/112/EC (OJ L 347, 11.12.2006).
 Regulation (EC) No 1798/2003 (OJ L 264, 15.10.2003).
 directive 2008/117/EC and Regulation (EC) No 37/2009 (OJ L 14, 20.1.2009).
 COm(2008) 109 (OJ C 207, 14.8.2008).
 COm(2008) 807.
 COm(2007) 758 (OJ C 55, 28.2.2008).
 COm(2008) 428.
 COm(2008) 460 and COm(2008) 459.

46 

Competition

General

PROSPERITY

In 2008 competition policy continued to maintain and create conditions for markets 
to operate within a competitive framework in the interest of European businesses and 
consumers alike. Action undertaken involved tackling market deficiencies resulting from 
anti-competitive behaviour by operators and certain market structures and helping to 
put in place, for all sectors of the economy, an overall economic policy framework that 
is conducive to effective competition.

Furthermore, on 16 June the Commission presented an overview of the principal  
developments in the field of competition policy in 2007 (1).

State aid

On 21 may (2) and 17 November (3) the Commission updated the state aid scoreboard. 
In the spring update, it highlighted the situation regarding state aid for environmental 
protection. In the autumn update, it emphasised that the volume of state aid was falling 
or stagnant in most member States. The aid granted in the banking sector following the 
subprime crisis was also reviewed.

In more specific fields, on 23 January the Commission adopted guidelines (4) on state aid 
subsidies for environmental protection. The guidelines lay down new requirements for 
the aid and strike an important balance between strengthening environmental protec-
tion and reducing distortions of competition (5). Furthermore, on 20 may the Commission 
adopted a new communication on state aid in the form of guarantees (6).

On 6 August the Commission adopted a general block exemption regulation (7) declaring 
certain categories of aid compatible with the common market in application of Articles 
87 and 88 of the EC Treaty and allowing member States to grant aid without having to 
notify the Commission in advance. The regulation authorises aid to small and medium-
sized enterprises and for research, innovation, regional development, training, employ-
ment and risk capital schemes. It also authorises aid for environmental protection and 
measures to promote entrepreneurship. It consolidates in a single text and harmonises 

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 

 COm(2008) 368.
 COm(2008) 304.
 COm(2008) 751.
 OJ C 82, 1.4.2008.
 See ‘Climate change’ in Chapter III, Section 2, ‘Environment’, of this Report.
 IP/08/764.
 Regulation (EC) No 800/2008 (OJ L 214, 9.8.2008).

ECONOmIC ANd SOCIAL ENVIRONmENT 

47

the pre-existing provisions of five separate regulations while extending the categories 
of state aid covered by the exemption.

Numerous emergency measures in the field of state aid had to be adopted in response 
to the turmoil on the financial markets which began in September (1). Competition policy 
provided a vital contribution to a coordinated European Union response, whilst pre-
serving the possibility for member States to intervene where necessary according to 
national conditions. with this in mind, on 13 October the Commission adopted a com-
munication on the application of state aid rules to measures taken in relation to financial 
institutions in the context of the global financial crisis (2). In accordance with the guid-
ance given in the communication, the Commission in particular approved the aid plans 
for financial institutions put in place by several member States (3). On 5 december the 
Commission complemented the guidance document of 13 October by issuing a com-
munication on how member States can recapitalise banks to boost credit flows to the 
real economy in a manner consistent with Community state aid rules (4).

In the context of its European economic recovery plan  (5), on 17 december the 
Commission adopted a temporary framework providing member States with additional 
ways of tackling the effects of the credit squeeze on the real economy (6). This new 
framework introduces a number of temporary measures to allow member States to 
address companies’ exceptional difficulties in obtaining finance. In particular, member 
States will be able to grant, without notification of individual cases, subsidised loans, 
loan guarantees at a reduced premium, risk capital for SmEs and direct aids of up to 
EUR 500 000.

The statistics show that, at 660, the number of state aid notifications to the Commission 
was down in 2008 compared with 2007. The Commission also took 616 final decisions. 
It approved aid in about 96 % of cases, while in the remaining 4 % it took a negative 
decision after concluding that the measures did not comply with state aid rules and 
with the common market.

(1) 
(2) 
(3) 

(4) 
(5) 
(6) 

 See Chapter I, Section 4, of this Report.
 OJ C 270, 25.10.2008.
 See in particular IP/08/1496, IP/08/1497, IP/08/1589, IP/08/1600, IP/08/1601, IP/08/1609 and 
IP/08/1610.
 C(2008) 8259.
 COm(2008) 800. See ‘European economic recovery plan’ in Chapter I, Section 4, of this Report.
 IP/08/1993.

48 

PROSPERITY

Competition rules applicable to enterprises

Merger control

In the field of mergers, the Commission saw the number of notifications fall compared 
with 2007. more than 98 % of notified operations were approved, most within the one 
month allowed. however, a small number of cases were the subject of detailed inves-
tigation. hence, the Commission launched detailed investigations in particular as re-
gards the proposed takeover of Reuters by Thomson (1), Statoil hydro’s acquisition of 
ConocoPhillips’ Jet petrol stations in Scandinavia (2) and the acquisition of GBI busi-
ness by ABF in the field of baker’s yeasts (3). These investigations have shown that the 
mergers as initially notified would have significantly hindered competition. To allay the 
Commission’s concerns, the parties have modified the operations originally planned. On 
this basis, the Commission authorised these mergers on 19 February (4), 21 October (5) 
and 23 September (6), respectively.

Agreements and abuse of dominant position

As regards cartels, the Commission levied fines totalling some EUR 3.2 billion on mem-
bers of cartels operating on markets such as international removals (7), paraffin waxes (8), 
the importation of bananas (9) and the manufacture of glass for the car industry (10).

with regard to restrictive practices, on 16 July the Commission adopted a decision 
prohibiting 24 European collecting societies which manage copyright from restricting 
competition by limiting their ability to offer their services to authors and commercial 
users outside their domestic territory (11). On 26 November it adopted a decision which 
will open up the German electricity market to competition. The decision renders legally 
binding the commitments offered by the electricity producer E.ON to address concerns 
raised in the course of an investigation under EC Treaty rules prohibiting the abuse of a 
dominant market position (12).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 
(10) 
(11) 
(12) 

 IP/07/1460.
 IP/08/740.
 IP/08/591.
 IP/08/260.
 IP/08/1556.
 IP/08/1392.
 IP/08/415.
 IP/08/1434.
 IP/08/1509.
 IP/08/1685.
 IP/08/1165.
 IP/08/1774.

ECONOmIC ANd SOCIAL ENVIRONmENT 

49

The Commission also adopted two important decisions on compliance with competition 
rules. On 30 January it levied a fine of EUR 38 million on E.ON Energie AG (1) for remov-
ing a seal affixed by the Commission on premises belonging to the company and on 
27 February it levied a EUR 899 million penalty on microsoft (2) for failure to comply in 
time with its obligations under the Commission’s march 2004 decision (3).

Lastly, the Commission has launched a sector-wide investigation into competition in 
the pharmaceutical industry. The investigation was prompted by indications that com-
petition in pharmaceutical markets in Europe might not be working well: fewer new 
 pharmaceuticals are coming to market, and the entry of generic pharmaceuticals some-
times seems to be delayed (4).

Asserting a proactive policy

On 19 February the European Parliament adopted a declaration on the need to inves-
tigate the abuse of power by large supermarkets operating in the European Union and 
remedial action to deal with the abuse. It called on the Commission to investigate the 
impact of mergers in the EU supermarket sector on small businesses, suppliers, work-
ers and consumers and, in particular, to assess any abuses of buying power which may 
follow from such mergers.

On 2 April the Commission adopted a white Paper on damages actions for breach of EC 
antitrust rules (5). The white Paper puts forward proposals for policy choices and specific 
measures that would ensure, more so than today, that all victims of infringements of 
EC competition law have access to effective redress mechanisms to enable them to be 
fully compensated for the damage they have sustained.

On 30 June (6) the Commission adopted a regulation on the conduct of settlement pro ce-
dures in cartel cases (7) and a communication on these procedures (8). These procedures 
will enable the Commission to settle certain cartel cases in a simplified manner.

Furthermore, on 1 July the Commission adopted guidelines on the application of 
Article 81 of the EC Treaty (provisions on restrictive agreements) to maritime transport 
services (9).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 

 IP/08/108.
 IP/08/318.
 IP/04/382.
 IP/08/49.
 COm(2008) 165 (OJ C 202, 8.8.2008).
 IP/08/1056.
 Regulation (EC) No 622/2008 (OJ L 171, 1.7.2008).
 OJ C 167, 2.7.2008.
 SEC(2008) 2151.

50 

PROSPERITY

On 28 October the Commission launched a consultation on the operation of the regu-
lation on concentrations (1). The purpose of the review is to evaluate how the rules on 
jurisdictional thresholds and referral mechanisms have worked in practice during the 
four years in which the regulation has applied.

On 5 december it also published guidance on its enforcement priorities in applying the 
rules on the abuse of a dominant position to abusive exclusionary conduct (Article 82 of 
the EC Treaty). The Commission will give a high level of priority to cases in which exclu-
sionary conduct by a dominant undertaking is likely to be harmful to consumers (2).

General references and other useful links

 •

 •

 •

 •

 •

 •

 •

The Lisbon strategy: 
http://ec.europa.eu/growthandjobs/index_en.htm

Sustainable development: 
http://ec.europa.eu/environment/eussd/

Stability and convergence programmes, excessive deficits: 
http://ec.europa.eu/economy_finance/sg_pact_fiscal_policy/index_en.htm?cs_mid=570

European Central Bank: 
http://www.ecb.eu/home/html/index.en.html

Taxation: 
http://ec.europa.eu/taxation_customs/taxation/gen_info/tax_policy/index_en.htm

Competition, prohibited restrictive agreements, state aid: 
http://ec.europa.eu/competition/index_en.html

International Competition Network: 
http://www.internationalcompetitionnetwork.org/

(1) 
(2) 

 Regulation (EC) No 139/2004 (OJ L 24, 29.1.2004).
 COm(2008) 832.

LEVERS OF PROSPERITY 

Section 2

Levers of prosperity

51

Background

The conclusion in 2007 of the single market review that had been launched in 2006 heralded 
the start of a new cycle for this pillar of the European project. The Community’s new approach 
promises a modernisation of EU policy geared to deriving greater benefits from globalisation, 
empowering consumers, opening up opportunities for small businesses, stimulating innovation 
and maintaining high social and environmental standards.

Progress of the internal market

Single market review

On 16 december the Commission adopted a report ‘The single market review: One year 
on’ (1). According to the report, single market policy played a vital role in 2008 in the 
European Commission’s response to the financial crisis and the economic recession. The 
report outlines a series of measures that have already been taken, or are in the pipeline, 
that will help create the conditions to relaunch the European economy.

Free movement of capital and payment systems

The date 28 January saw the inception of the single euro payments area (SEPA), the aim 
of which is to create an integrated market for services for payments in euro where there 
is genuine competition and no distinction between domestic and cross-border euro 
payments within the EU. In conclusions adopted on 22 January, the Council endorsed 
the objective of the SEPA.

In addition, on 11 February the Commission adopted a report (2) on the application of 
the regulation on cross-border payments in euro (3). It came to the conclusion that the 
regulation should be amended to take more account of market realities (the newly 

(1) 

(2) 
(3) 

 SEC(2008) 3064. See Chapter II, Section 1, ‘The Lisbon strategy: a partnership for growth and employment’, 
of this Report.
 COm(2008) 64 (OJ C 207, 14.8.2008).
 Regulation (EC) No 2560/2001 (OJ L 344, 28.12.2001).

52 

PROSPERITY

 created SEPA) and bring it into line with the directive on payment services in the internal 
market (1).

On the back of its report, on 9 October the Commission put forward a proposal for 
amending the regulation (2). The proposal aims at extending the principle of equal 
charges to direct debit payments. It also contains provisions that should give greater 
protection to the interests and rights of consumers in the event of disputes over cross-
border payments and alleviate the burden of declaring statistical data.

On 13 October, to promote the emergence of a genuine single market in e-money 
ser vices in the European Union, the Commission adopted a proposal for a directive (3) 
amending the directives on electronic money (4) and payment services (1). The proposal 
aims at enabling new, innovative and secure electronic money services to be set up, 
providing market access to new players and fostering real and effective competition 
between all market participants.

Free movement of goods

On 9 July the European Parliament and the Council adopted a legislative package (5) 
aimed, on the one hand, at facilitating the free movement of goods in the internal market 
by removing remaining obstacles and, on the other hand, at strengthening competitive-
ness and consumer security. The package comprises a regulation establishing procedures 
for the application of various national technical rules to products lawfully marketed in 
another member State, a regulation setting out requirements for the accreditation and 
market surveillance for the marketing of products and a decision on a common frame-
work for the marketing of products.

On a more specific issue, on 21 may the European Parliament and the Council  
amended (6) the directive on control of the acquisition and possession of weapons (7). 
In particular, the new directive stipulates that so-called civilian firearms be marked at 
the point of production and that data on arms movements be kept for a period of at 
least 20 years. Further provisions (on the deactivation of weapons and the problem of 
replica firearms) stem from the same concern to ensure that such weapons are secure 
before they come into circulation in the internal market.

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 

 directive 2007/64/EC (OJ L 319, 5.12.2007).
 COm(2008) 640.
 COm(2008) 627.
 directive 2000/46/EC (OJ L 275, 27.10.2000).
 Regulations (EC) Nos 764/2008 and 765/2008 and decision No 768/2008/EC (OJ L 218, 13.8.2008).
 directive 2008/51/EC (OJ L 179, 8.7.2008).
 directive 91/477/EEC (OJ L 256, 13.9.1991).

LEVERS OF PROSPERITY 

53

Freedom to provide services and freedom of establishment

Services of general interest

Services of general economic interest were the subject of an own-initiative opinion ‘An 
independent evaluation of services of general interest’ (1), adopted by the European 
Economic and Social Committee on 14 February. According to the Committee, the evalu-
ation should serve to increase the effectiveness and efficiency of services of general eco-
nomic interest, help to adjust them better to changes in the needs of citizens and busi-
nesses, and provide public authorities with a basis for making the best decisions. Also, 
on 10 July the Committee submitted an exploratory opinion stressing the urgent need to 
recognise how important the services sector is to economic and social development.

Conditional access services

On 30 September the Commission adopted its second report (2) on the application of 
the directive on the legal protection of services based on, or consisting of, conditional 
access (3). The report finds that implementation of the directive at national level could be 
improved. It underlines the usefulness of the directive as regards the protection against 
piracy of traditional pay-TV services and new types of service using conditional access 
(such as video on demand, the Internet or mobile television). The promotion of the lat-
ter was the subject of guidelines published by the Commission on 10 december (4). The 
report bemoans the weak growth in cross-border provision despite the high number 
of people benefiting from the freedom of movement in Europe and wanting to have 
access to services from their country of origin. Lastly, the Commission proposes that the 
European Union should ratify the Council of Europe’s European Convention on the Legal 
Protection of Services based on, or consisting of, Conditional Access. On the same day, 
the Commission set up a group of member States’ experts on conditional access.

Financial services

On 23 April the Commission adopted a proposal for a directive (5) aimed at bringing the 
two main Community instruments on settlement finality and financial collateral arrange-
ments (6) into line with developments on the financial markets and regulatory change.

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

 OJ C 162, 25.6.2008.
 COm(2008) 593.
 directive 98/84/EC (OJ L 320, 28.11.1998).
 COm(2008) 845.
 COm(2008) 213 (OJ C 202, 8.8.2008).
 directives 98/26/EC (OJ L 166, 11.6.1998) and 2002/47/EC (OJ L 168, 27.6.2002).

54 

PROSPERITY

On 16 July it tabled a proposal for a review of the Community framework governing 
investment funds (1). The proposed amendments to the directive on undertakings for 
collective investments in transferable securities (the UCITS directive) should remove the 
administrative obstacles to the cross-border marketing of funds.

On 17 July the Target2-Securities (T2S) project was launched officially by the European 
Central Bank (2). Target2-Securities is an IT platform which centralises the settlement of 
euro-denominated securities (the system will also be open to other currencies) between 
participating entities. The platform should be a service available to central deposi tories 
and be managed by the ECB and the central banks of the member States whose currency 
is the euro. The Commission is an official member of the group coordinating implemen-
tation of this project.

Among other measures taken in response to the financial crisis, the Commission pro-
posed the revision of the ‘own resources’ directives (3), the revision of the Community 
rules on deposit guarantee schemes (4) and a proposal for a regulation on credit rating 
agencies (5). These initiatives are set out in more detail in Chapter I, Section 4 (6).

On 3 June and 3 december the Council adopted conclusions on clearing and 
settlement.

Postal services

On 20 February the European Parliament and the Council adopted a directive (7) amend-
ing the postal directive (8) as regards completion of the internal market in postal services 
in the Community. The deadline for complete market-opening is set at 31 december 
2010, with a possibility for some member States to delay this by a maximum of two 
years. Adoption marks the entry into force of the directive and sets the clock ticking 
for abolishing legal monopolies on postal services. The directive is the result of a broad 
political consensus on the way forward for the regulatory framework of European postal 
services.

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 

 COm(2008) 458.
 IP/08/1193.
 COm(2008) 602.
 COm(2008) 661.
 COm(2008) 704.
 See ‘The European response to the financial crisis’ in Chapter I, Section 4, of this Report.
 directive 2008/6/EC (OJ L 52, 27.2.2008).
 directive 97/67/EC (OJ L 15, 21.1.1998).

LEVERS OF PROSPERITY 

55

In addition, on 22 december the Commission adopted a report on the application of 
the postal directive (1).

Company law and corporate governance

On 17 April and 24 September respectively, as part of its 2008 programme for reduc-
ing administration costs, the Commission adopted proposals for directives (2) making 
changes to certain company law obligations. The aims of the proposals presented are to 
simplify, on the one hand, the publication (3) and translation (4) obligations on some types 
of company, and, on the other hand, requirements as regards notifying and publishing 
national merger (5) or division projects (6) involving limited companies in the EU.

On 25 June, in pursuit of its vision of a modern single market policy (7), the Commission 
adopted an initiative to create a new legal form in Europe intended to boost the com-
petitiveness of small and medium-sized enterprises (SmEs) by making them easier to 
set up and helping them operate in the single market. It proposed a regulation on the 
statute for a private European company (societas privata europaea — SPE) (8). This new 
statute will enable SmEs to set up companies with a single form that will operate regard-
less of whether their activities are cross-border in nature or only in their member State 
of origin.

The Commission also adopted (on 30 September) a communication (9) on the review of 
the application of the directive (10) supplementing the statute for a European company (11) 
with regard to the involvement of employees.

Accountancy and auditing

As regards accountancy, on 17 April the Commission adopted a proposal for a directive (12) 
amending Council directives 78/660/EEC and 83/349/EEC as regards certain disclosure 

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 
(10) 
(11) 
(12) 

 COm(2008) 884 and SEC(2008) 3076.
 COm(2008) 194 and COm(2008) 576.
 directive 68/151/EEC (OJ L 65, 14.3.1968).
 directive 89/666/EEC (OJ L 395, 30.12.1989).
 directive 78/855/EEC (OJ L 295, 20.10.1978).
 directive 82/891/EEC (OJ L 378, 31.12.1982).
 COm(2007) 724 (OJ C 55, 28.2.2008).
 COm(2008) 396.
 COm(2008) 591.
 directive 2001/86/EC (OJ L 294, 10.11.2001).
 Regulation (EC) No 2157/2001 (OJ L 294, 10.11.2001).
 COm(2008) 195. 

56 

PROSPERITY

requirements for medium-sized companies (1) and the obligation to draw up consoli-
dated accounts (2).

On 24 April the Commission presented a report (3) on the operation of the regulation 
on international accounting standards (IAS) (4). In response to a call from the European 
Parliament, the Commission also prepared impact studies on various standards and 
interpretations issued by the International Accounting Standards Board (IASB).

Also, on 15 October the Commission proposed that current accounting standards be 
adapted in the light of the global financial crisis. On 3 November it adopted a con-
solidated text of all the international accounting standards applicable in the European 
Union (5). 

On auditing, on 6 may the Commission adopted a recommendation on ‘external  
quality assurance for statutory auditors and audit firms auditing public interest  
entities’ (6), which provides guidance for member States on establishing independent 
and effective inspection systems on the basis of the directive on statutory auditing.

Also, on 5 June the Commission adopted a recommendation concerning the limitation 
of the civil liability of statutory auditors and audit firms (7), the main aim of which is to 
encourage the emergence of other audit firms in order to make the market more com-
petitive and which addresses the increase in the number of compensation claims and 
the inadequate coverage of risk in this sector.

As regards administrative formalities for third-country audit firms, on 4 August the 
Commission adopted a decision granting audit firms from 30 non-EU countries a tran-
sitional period for completing registration formalities (8).

On 12 december the Commission adopted measures granting equivalence to the  
generally accepted accounting principles (GAAPs) of certain third countries as from 
1 January 2009 (9).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 

 directive 78/660/EEC (OJ L 222, 14.8.1978).
 directive 83/349/EEC (OJ L 193, 18.7.1983).
 COm(2008) 215 (OJ C 202, 8.8.2008).
 Regulation (EC) No 1606/2002 (OJ L 243, 11.9.2002).
 See ‘The European response to the financial crisis’ in Chapter I, Section 4, of this Report.
 Recommendation 2008/362/EC (OJ L 120, 7.5.2008).
 Recommendation 2008/473/EC (OJ L 162, 21.6.2008).
 decision 2008/627/EC (OJ L 202, 31.7.2008).
 Regulation (EC) No 1289/2008 and decision 2008/961/EC (OJ L 340, 19.12.2008).

LEVERS OF PROSPERITY 

57

Intellectual and industrial property

On 16 July the Commission jointly adopted a proposal (1) for amending the directive on 
the term of protection applying to copyright and certain associated rights (2), as well as 
a Green Paper on copyright in the knowledge economy.

The proposal for a directive is aimed at improving performers’ social circumstances, in 
particular those of studio musicians. For its part, the Green Paper focuses on how re-
search, science and educational materials are disseminated to the public and whether 
knowledge is freely circulating in the internal market. It represents the starting point for 
a structured debate on the long-term future of copyright policy.

On 16 July the Commission also adopted a communication on an industrial property 
rights strategy for Europe (3). The communication stresses the need for a Community 
patent and judicial arrangements for patent disputes, as well as announcing measures 
to secure better access to industrial property rights for SmEs. A significant part of these 
measures is geared to effectively fighting violations of intellectual property rights. The 
communication was well received by the Council, which in turn adopted a resolution 
on 25 September on a comprehensive European anti-counterfeiting and anti-piracy 
plan (4).

Procurement contracts

On 5 February the Commission adopted an interpretative communication on the ap-
plication of Community law on public procurement and concessions to institutionalised 
public–private partnerships (IPPPs) (5), mixed capital entities generally created to provide 
public services, especially at local level.

The communication explains the Community rules applying to the selection of private 
partners in the IPPPs. depending on the task assigned to the IPPP (public contract or 
concession), this is governed either by the public procurement directives or the general 
principles of the EC Treaty. The communication stresses that IPPPs should in principle 
adhere to their initial area of activity. however, it is acknowledged that, as they are usu-
ally set up to provide a service over a lengthy period of time, IPPPs should be allowed to 
adapt to certain shifts in the economic, legal or technical climate. The communication ex-
plains the circumstances under which such changes may be taken into consideration.

(1) 
(2) 
(3) 
(4) 
(5) 

 COm(2008) 464 and COm(2008) 466.
 directive 2006/116/EC (OJ L 372, 27.12.2006).
 COm(2008) 465.
 OJ C 253, 4.10.2008.
 C(2007) 6661. 

58 

PROSPERITY

On 25 June, in the context of the adoption of the ‘small business act’ for Europe (see 
below), the Commission published a code of good practice for facilitating SmEs’ ac-
cess to public procurement (1). This sets out guidelines on how the Community legal 
framework should be applied so as to strengthen SmEs’ involvement in contract award 
procedures. It also picks out national rules and practices that facilitate SmEs’ access to 
public procurement.

On 15 September the new common procurement vocabulary (CPV) (2) entered into force. 
It has been updated to stay abreast of the most recent developments in technology and 
services. The emphasis has been put on a streamlined structure that serves purchasers, 
making the CPV more ‘product driven’ and less ‘material driven’.

On 9 december the Commission adopted a decision (3) updating the indicative lists of 
the contracting authorities and contracting entities covered by the public procurement 
directives (4). The decision will give businesses and public authorities a more specific idea 
of the coverage of the directives.

In 2008 the Commission adopted five decisions (5) on requests for exemption pursuant to 
Article 30 of the directive coordinating the procurement procedures of entities operating 
in the water, energy, transport and postal services sectors (6). That article lays down that 
the directive does not apply to the awarding of contracts (or the holding of competitions) 
for carrying out an activity which, in the member State in question, is ‘directly exposed 
to competition on markets to which access is not restricted’.

Also, on 2 July the Commission adopted a communication on green public pro- 
     cu rement (7).

work on the proposal for a directive on the award of public contracts in the field of 
defence and security (8) continued in the various institutions. On 16 december the two 
legislators reached a compromise which opens the door for adoption of the proposal 
at first reading early in 2009.

(1) 
(2) 
(3) 
(4) 
(5) 

(6) 
(7) 
(8) 

 SEC(2008) 2193.
 Regulation (EC) No 213/2008 (OJ L 74, 15.3.2008).
 decision 2008/963/EC (OJ L 349, 24.12.2008).
 directives 2004/17/EC and 2004/18/EC (OJ L 134, 30.4.2004).
 decisions 2008/383/EC (OJ L 132, 22.5.2008), 2008/585/EC (OJ L 188, 16.7.2008) and 2008/741/EC  
(OJ L 251, 19.9.2008). These concern, respectively, express and courier services in Italy, the production of 
electricity in Austria and the production and wholesale of electricity in Poland. Two decisions adopted in 
december relate to certain postal services in Sweden and electricity generation in the Czech Republic.
 directive 2004/17/EC (OJ L 134, 30.4.2004).
 See ‘Environmental instruments’ in Chapter III, Section 2, ‘Environment’, of this Report.
 COm(2007) 766 (OJ C 106, 26.4.2008).

LEVERS OF PROSPERITY 

59

Information on the internal market

On 8 may the Commission adopted the single market assistance services (SmAS) action 
plan (1) for making more comprehensible and effective the range of assistance and in-
formation services provided for individuals and businesses in the internal market (such 
as Solvit, Citizens Signpost Service, Your Europe, the Enterprise Europe network, Europe 
direct, European consumer centres and EURES).

Consumer policy

The Commission presented several proposals in 2008 in relation to the strategy on con-
sumer policy.

On 29 January it adopted a communication ‘monitoring consumer outcomes in the single 
market: The consumer markets scoreboard’ (2). An annual consumer markets scoreboard 
to track the performance of the internal market from the point of view of its economic 
and social benefits for consumers will produce a data set from which it will be possible to 
identify which parts of the internal market are working badly for consumers and where 
deeper analysis is required.

On 8 October the Commission adopted a proposal for a directive on consumer rights (3). 
Resulting from the simplification and amalgamation of four existing consumer rights 
directives (4), this is intended to facilitate consumers’ purchases on the Internet. It aims 
both to improve confidence levels among consumers and to streamline the administra-
tive formalities that restrict businesses to national borders, thus depriving consumers 
of a wider choice and competing offers.

Also, on 27 November the Commission adopted a Green Paper on consumer collec-
tive redress (5), which aims to facilitate redress in situations where the rights of a large 
number of consumers have been violated by an infringement committed by the same 
trader. The Green Paper presents a review of the obstacles facing consumers seeking 
redress, as well as various solutions designed to remedy the deficiencies found. On 
14 February the European Economic and Social Committee adopted an own-initiative 
opinion (6) calling for a thorough examination of the role and legal framework of col-
lective actions, particularly in the context of Community consumer law, with a view to 
proposing permanent initiatives.

(1) 
(2) 
(3) 
(4) 

(5) 
(6) 

 SEC(2008) 1882.
 COm(2008) 31 (OJ C 207, 14.8.2008).
 COm(2008) 614.
 directives 85/577/EEC (OJ L 372, 31,12.1985), 93/13/EEC (OJ L 95, 21.4.1993), 97/7/EC (OJ L 144, 4.6.1997) 
and 1999/44/EC (OJ L 171, 7.7.1999).
 COm(2008) 794.
 OJ C 162, 25.6.2008.

60 

PROSPERITY

where the rights of passengers in bus and coach transport are concerned, on 4 december 
the Commission presented a proposal for a regulation (1) relating in particular to the 
minimum amount of information to be given to all passengers, assistance and compen-
sation in the event of interruptions of journeys, measures in the event of delays, and 
specific assistance for people with reduced mobility.

On 23 April the European Parliament and the Council adopted a directive (2) aimed 
at promoting the establishment and operation of the internal market in the field of 
consumer credit and securing a high level of protection for consumers throughout the 
Community. The directive will cover personal loans of between EUR 200 and EUR 75 000. 
It will not apply to mortgages.

Innovation and enterprise policy

Innovation

The 2007 edition of the European innovation scoreboard (published on 15 October) 
shows the European Union catching up gradually with the United States and Japan 
when it comes to innovation performance.

Progress was made in 2008 on implementing the EU’s broad-based innovation strat-
egy (3). In the field of cluster policy, on 17 October the Commission adopted a com-
munication ‘Towards world-class clusters in the European Union: Implementing the 
broad-based innovation strategy’ (4). The communication sets out a number of specific 
measures to encourage the formation of these clusters.

The Council meeting of 29 and 30 may stressed the need, in implementing the innov-
ation strategy, to maintain a degree of flexibility in order to respond to changes in the 
environment and to move increasingly to innovation geared to demand and to users. It 
underlined the central role that innovation plays in Europe’s ability to face up effectively 
to the challenges, and take advantage of the opportunities, of the global economy. It 
also welcomed the initiative on lead markets for Europe and called on the Commission 
and the member States to take coordinated measures as a matter of urgency.

On cross-border investments of venture capital, the Council asked the Commission and 
the member States to make progress towards the mutual recognition of national ven-
ture capital frameworks. In response, the Commission organised meetings with national 

(1) 
(2) 
(3) 
(4) 

 COm(2008) 817.
 directive 2008/48/EC (OJ L 133, 22.5.2008).
 COm(2006) 502.
 COm(2008) 652.

LEVERS OF PROSPERITY 

61

experts, the industry and academics, and in 2009 it will publish a report on the progress 
that has been made.

In its conclusions of 1 december on the ‘small business act’ (see below), the Council 
stressed the need to strengthen cross-border venture capital investments. It also  
recommended facilitating further integration of the European market by a Community 
private placement regime based on the findings of the Commission’s preliminary impact 
assessment.

On 16 december the European Parliament and the Council adopted a decision designat-
ing 2009 as the European Year of Creativity and Innovation (1).

Small and medium-sized enterprises

In its spring session, the European Council welcomed the progress achieved in 2007 on 
improving the legislation and concluded that continued efforts should be made to give 
a decisive boost to the competitiveness of EU businesses, and small and medium-sized 
enterprises in particular.

Accordingly, the Commission proposed establishing a political partnership between the 
European Union and its member States in line with the desire to acknowledge the central 
role of SmEs in the EU’s economy. In its communication of 25 June, ‘A “small business 
act” for Europe’ (2), it put forward an initiative in favour of small and medium-sized en-
terprises in Europe based on 10 key principles and a set of strategic measures. This aims 
to improve the overall policy approach on entrepreneurship, to ensure that the ‘think 
small first’ principle is firmly embedded in policymaking (be it in terms of regulation or 
services provided by administrations) and to encourage SmEs to grow by helping them 
address problems inhibiting their development. In its conclusions of 1 december, the 
Council adopted the action plan for a small business act for Europe.

Also, as part of the Commission’s integrated policy for promoting entrepreneurship, 
January saw the launch of the Enterprise Europe network, the aim of which is to give 
European SmEs assistance in respect of Community policies, innovation and techno-
logy transfer. The network provides businesses with integrated support services and 
support for innovation thanks to over 550 partners in 44 countries. A large number of 
third countries are taking part in the network as full or associate members. For maximum 
effectiveness, the Executive Agency for Competitiveness and Innovation, operational 
since 1 January 2008, has been entrusted with managing the network.

(1) 

(2) 

 decision No 1350/2008/EC (OJ L 348, 24.12.2008). See ‘European Year of Creativity and Innovation’ in 
Chapter II, Section 2, ‘Education and training’, of this Report.
 COm(2008) 394.

62 

PROSPERITY

To support SmEs that are active in the field of research and development (1), on 9 July the 
European Parliament and the Council adopted a decision establishing the ‘Eurostars’ joint 
programme (2). This is aimed at SmEs developing technologies, production processes 
and advanced services in their field, and those carrying out market-based research in 
the context of transnational projects.

For its part, on 9 July the European Economic and Social Committee presented an opin-
ion on various policy measures, apart from appropriate financing, that could contribute 
to the growth and development of small and medium-sized enterprises.

In an initial response to the financial crisis, the European Investment Bank decided to 
free up EUR 30 billion in assistance for European SmEs.

On 7 November the Commission adopted a report on the use of the financial instruments 
of the multiannual programme for enterprise and entrepreneurship, and in particular 
for SmEs, in 2001–06 (3).

In the field of statistics, on 16 december the European Parliament and the Council 
adopted a decision on a programme for the modernisation of European enterprise and 
trade statistics (mEETS) (4), to give the EU access to statistics accurately reflecting cur-
rent developments and provide quality and timely statistical information on structural 
changes in Europe’s economy in general and as they affect business.

Industrial policy

On 16 July the Commission presented an action plan on sustainable consumption and 
production and sustainable industrial policy (5). The aim is to speed up the transition to 
a sustainable economy whilst strengthening businesses’ competitiveness. The action 
plan complements existing policies on energy use and the environment, in particular 
the energy and climate package adopted by the Commission in January (6).

The core of the action plan is a dynamic framework to improve the energy and envir-
onmental performance of products and foster their uptake by consumers. This will be 
further supported and amplified by actions to achieve leaner production and address 
the international aspects. As regards industrial policy specifically, the action plan seeks 
to develop specific initiatives for the environmental industries and to promote sectoral 
approaches in international climate negotiations to be part of a comprehensive inter-
national climate change agreement for the period after 2012.

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

 See ‘Creating the European research area’ in Chapter II, Section 2, ‘Research’, of this Report.
 decision No 743/2008/EC (OJ L 201, 30.7.2008).
 COm(2008) 708.
 decision No 1297/2008/EC (OJ L 340, 19.12.2008).
 COm(2008) 397.
 See ‘Climate change’ in Chapter III, Section 2, ‘Environment’, of this Report.

LEVERS OF PROSPERITY 

63

Accompanying the action plan is a proposal to amend the ecodesign directive (1), which 
establishes a framework for the setting of ecodesign requirements for energy-using 
products, by extending its scope to other energy-related products. On 21 October the 
Commission adopted a communication on the establishment of the working plan for 
2009–11 under the ecodesign directive (2), which is based on the environmental prior-
ities and the work accomplished since mid-2005 for the priority product groups. Also, on 
13 November the Commission presented a proposal (3) on extending the scope of the  
energy labelling directive (4) to cover consumer energy products and other energy-re-
lated products, so bringing it into line with the new scope of the ecodesign directive.

Other elements of July’s action plan include the revision of regulations on the eco-label 
and the Community eco-management and audit scheme (EmAS), and a communication 
on green public procurement (5).

Standardisation

On 11 march the Commission adopted a communication ‘Towards an increased contribu-
tion from standardisation to innovation in Europe’ (6). This identifies the most important 
challenges to be taken on, presents concrete objectives for standardisation and the use 
of standards, and summarises ongoing efforts and proposed measures to be taken both 
by relevant stakeholders and by the Commission.

On the same day, again in the area of standardisation, the European Parliament and the 
Council adopted several directives (7) and regulations (8) to bring various fields into line 
with the regulatory procedure with scrutiny (RPS).

The Council meeting of 25 and 26 September also stressed the importance of stand-
ardisation in encouraging innovation in sectors such as services, sustainable industrial 
policy, lead markets, public procurement, information and communication technology 
(ICT) and better regulation. It called on those involved in standardisation in Europe to 
press on with the reform process so as to improve effectiveness and visibility.

(1) 
(2) 
(3) 

(4) 
(5) 
(6) 
(7) 
(8) 

 COm(2008) 399.
 COm(2008) 660.
 COm(2008) 778. See ‘Energy and sustainable development’ in Chapter II, Section 2, ‘Energy’, of this 
Report.
 directive 92/75/EEC (OJ L 297, 13.10.1992).
 See ‘Environmental instruments’ in Chapter III, Section 2, ‘Environment’, of this Report.
 COm(2008) 133 (OJ C 202, 8.8.2008).
 OJ L 76, 19.3.2008 and OJ L 81, 20.3.2008.
 OJ L 97, 9.4.2008.

64 

Industry and services

Primary industry

PROSPERITY

On 12 August the Commission adopted its first monitoring report on steel restructuring 
in Bulgaria and Romania (1). It concluded that the facilities in these countries are being 
modernised, but that there are still delays.

It also adopted, on 4 November, a communication ‘The raw materials initiative — meeting 
our critical needs for growth and jobs in Europe’ (2), which assesses the risks to the se-
curity of supply to European businesses of non-energy raw materials and puts forward 
an integrated strategy for addressing the complex challenges without delay.

Automotive industry

On 23 may the Commission adopted a proposal for a regulation on type-approval re-
quirements for the general safety of motor vehicles (3). The objective of the proposal 
is to lay down harmonised rules on the construction of motor vehicles with a view to 
ensuring the functioning of the internal market while at the same time providing for a 
high level of safety and environmental protection.

As regards overall type-approval arrangements for motor vehicles, work to modernise 
the legislation continued in 2008 with the updating of several annexes to the framework 
directive (4).

Capital goods industry

On 23 may, seeking to improve the functioning of the internal market for construction 
products, the Commission made a proposal to replace the directive on such products (5) 
with a new regulation (6), aimed at removing the last regulatory and technical obstacles 
to the free movement of construction products within the European Economic Area.

In application of the Community strategy on the sustainable use of pesticides (7), on 
5 September the Commission made a proposal for amending the directive on machin-

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 

 COm(2008) 511.
 COm(2008) 699.
 COm(2008) 316.
 Regulation (EC) No 1060/2008 (OJ L 292, 31.10.2008).
 directive 89/106/EEC (OJ L 40, 11.2.1989).
 COm(2008) 311 (OJ C 10, 15.1.2009).
 COm(2006) 372.

LEVERS OF PROSPERITY 

65

ery (1) by introducing requirements in the design and construction of new equipment 
for applying pesticide (2).

Cosmetics

On 5 February the Commission adopted a proposal for a regulation (3) to simplify the 
directive on cosmetic products (4). The proposal seeks to improve product safety whilst 
at the same time reducing costs to business.

Pharmaceutical products

On 2 October the work of the Pharmaceuticals Forum — set up in 2005 to meet the 
challenge of ensuring high levels of public health and innovation in the sector — cul-
minated in the adoption of conclusions and recommendations (5). The forum focused 
on questions surrounding the information given to patients on ailments and how they 
are treated, establishing the prices of medicines and their relative effectiveness.

On 10 december the Commission adopted a pharmaceuticals package consisting of a 
communication on the future of the sector in Europe and three legislative proposals. 
The communication (6) highlights the main challenges to be taken on, sets out a clear 
strategy for the development of the sector and proposes a number of specific measures 
for the coming years.

The first legislative proposal is aimed at further improving patient safety by strengthen-
ing the pharmacovigilance system (7). The second (8) involves harmonising the ways in 
which information is passed on to patients and thus allowing citizens to take better-
 informed decisions on matters concerning their own health. The third and last pro-
posal (9), intended to protect Europeans against the risks associated with counterfeit 
medicines, puts forward measures to tighten requirements applying to the manufacture, 
import and distribution of medicines and so ensure a more transparent, unbroken dis-
tribution chain.

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 

 directive 2006/42/EC (OJ L 157, 9.6.2006). 
 COm(2008) 535.
 COm(2008) 49.
 directive 76/768/EEC (OJ L 262, 27.9.1976).
 IP/08/1451.
 COm(2008) 666.
 COm(2008) 664 and COm(2008) 665.
 COm(2008) 662 and COm(2008) 663.
 COm(2008) 668.

66 

Space policy

PROSPERITY

On 11 September the Commission adopted a progress report on European space pol-
icy (1). This report, produced jointly with the European Space Agency, describes the 
significant progress made in the areas covered by European space policy in 2007. It 
identifies next steps to be taken or issues to be looked into. It also posits elements of a 
common European strategy on international space relations.

On 26 September the Council adopted a resolution underlining the importance of 
stronger coordination between the European Community and the European Space 
Agency on development programmes, especially as regards the space technology that 
is essential to Europe’s strategic non-dependence. On the same occasion, the Council 
reiterated that swift implementation of the Galileo and GmES (global monitoring for 
environment and security) programmes remained the top priority (2).

On 12 November the Commission adopted a communication on global monitoring 
for environment and security (3) addressing issues of governance and financing that 
require clarification to guarantee that GmES can be implemented within a reasonable 
time-frame. In its session of 2 december, the Council in turn adopted conclusions sup-
porting the Commission’s proposals and suggesting a series of measures for 2009.

Competitiveness in the key sectors

Under its integrated approach to industrial policy, the Commission presented various 
recommendations in 2008 for improving competitiveness in certain sectors.

 •

 •

In a communication dated 22 February it examined the key factors influencing com-
petitiveness of the metals industries (4). It showed how the Commission, the member 
States and the sector itself can help to preserve and bolster competitiveness in the 
future whilst also contributing to the targets for reducing greenhouse gas emissions 
between now and 2020.
On 27 February the Commission adopted a communication on innovative and sus-
tainable forest-based industries in the EU (5) proposing actions designed to comple-
ment the forest action plan and its objective of improving the long-term competitive-
ness of the forest-based sector.

(1) 
(2) 
(3) 
(4) 
(5) 

 COm(2008) 561.
 See ‘EGNOS and Galileo’ in Chapter II, Section 2, ‘Transport’, of this Report.
 COm(2008) 748.
 COm(2008) 108 (OJ C 207, 14.8.2008).
 COm(2008) 113 (OJ C 207, 14.8.2008).

LEVERS OF PROSPERITY 

67

In addition, on 28 November the Commission adopted a communication (1) setting out 
the conclusions and key messages of the 2008 European competitiveness report (2). 
The report underlines the need for Europe further to strengthen its ability to adapt to 
external shocks by maintaining the impetus of the strategy for growth and jobs, and to 
encourage competitiveness.

Research

Creating the European research area

On 2 April the results of the public consultation on new perspectives for the European 
research area (launched through a Green Paper in April 2007 (3)) were presented in a 
Commission working document (4): career and mobility, international cooperation, re-
search infrastructure, joint programming and knowledge-sharing are the main concerns 
of those involved in European research.

By way of follow-up to the results of this consultation, the Commission adopted five new 
initiatives in the course of the year:

 •

 •

 •

a recommendation on the management of intellectual property by public research 
bodies (10 April) (5);
a communication seeking to promote mobility and the careers of European 
researchers  ‘Better careers and more mobility: A European partnership for research-
ers’ (6); in it the Commission presents a framework of coherent and focused action to 
be taken at regional, national and Community levels to secure the human resources 
needed to create a dynamic, knowledge-based European economy (23 may);
a proposal for a regulation on the Community legal framework for a European re-
search infrastructure (ERI) (7); this is designed to facilitate the joint establishment and 
operation of research facilities of European interest among several member States 
and associated countries under the Community framework programme for research 
and development, and to help develop European policy for research infrastructures 
(15 July); in this context, on 9 december the Commission approved the creation of 
10 new pan-European research infrastructures in priority areas such as infectious 

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

(7) 

 COm(2008) 774.
 SEC(2008) 2853.
 COm(2007) 161 (OJ C 181, 3.8.2007).
 SEC(2008) 430.
 Recommendation 2008/416/EC (OJ L 146, 5.6.2008).
 COm(2008) 317. See ‘mobility of workers and free movement of knowledge’ in Chapter III, Section 1, ‘Social 
dimension’, of this Report.
 COm(2008) 467.

68 

 •

 •

PROSPERITY

diseases, the management of carbon dioxide, forecasting natural disasters and space 
observation (1);

a communication ‘Towards joint programming in research: working together to 
tackle common challenges more effectively’ (2) (25 July); joint programming involves 
member States developing common perspectives and strategic research agendas in 
order to address very clear societal issues; and

an initiative presenting a European strategic framework for international scientific 
and technological cooperation (24 September) (3), the aim of which is to contribute 
to sustainable development worldwide while making Europe more competitive in 
the field of science and technology; the Commission invites the member States to 
work together to identify priority areas for research and technology and to pursue 
those priorities in a coherent manner.

On 7 February the Commission adopted a recommendation on a code of conduct for 
responsible nanosciences and nanotechnologies research (4).

Seventh research framework programme

The 2009 work programmes for the five specific programmes ‘Ideas’, ‘Cooperation’, 
‘People’, ‘Capacities’ and ‘Euratom’ were adopted in July and August (5).

On 18 July the Commission adopted a report on the European Research Council oper-
ations and realisation of the objectives in the specific programme ‘Ideas’ in 2007 (6). On 
18 August, it adopted the annual report on research and technological development 
(RTd) activities of the EU in 2007 (7).

Apart from this, particular attention was paid to a number of key topics, which included 
energy, climate change and maritime policy.

As regards energy and climate change, the following action was taken.

 •

(1) 
(2) 
(3) 
(4) 
(5) 

(6) 
(7) 
(8) 

The Council approved the setting-up of the Fuel Cells and hydrogen Joint 
Undertaking (8), which is aimed at coordinating research efforts by providing a frame-
work encouraging European companies to work together and with those involved 
in the field of fuel cells and hydrogen (30 may);

 IP/08/1913.
 COm(2008) 468.
 COm(2008) 588.
 Recommendation 2008/345/EC (OJ L 116, 30.4.2008).
 Ideas: C(2008) 3673; Cooperation: C(2008) 4598; People: C(2008) 4483; Capacities: C(2008) 4566; and 
Euratom: C(2008) 4522.
 COm(2008) 473.
 COm(2008) 519.
 Regulation (EC) No 521/2008 (OJ L 153, 12.6.2008).

LEVERS OF PROSPERITY 

69

 •

 •

Subsequently, the Commission, industry and the European research community 
announced that between them they would invest, over a six-year period, almost 
EUR 1 billion in research, technological development and demonstration relating to 
fuel cells and hydrogen (14 October);
1) on the 
The European Parliament and the Council adopted two decisions (
Community’s participation in a research and development programme undertaken 
by several member States (Article 169 of the EC Treaty): one aims at supporting SmEs 
performing research and development (2) and the other at enhancing the quality of 
life of older people through the use of new information and communication tech-
nologies (3) (9 July).

As for maritime policy, following its communication in 2007 on an integrated maritime 
policy for the European Union (4), on 3 September the Commission adopted a European 
strategy for marine and maritime research (5) with a view to creating a coherent European 
research area in support of sustainable use of oceans and seas.

Turning to other areas, on 29 April the Council adopted a decision laying down the 
multiannual technical guidelines for the research programme of the Research Fund for 
Coal and Steel (6).

Together with the member States and the European defence Agency, the Commission 
launched the European Security Research and Innovation Forum (ESRIF), whose remit is 
to identify research and innovation priorities for security at European level in the coming 
decades, including in the context of closer cooperation between the various national 
research programmes.

International cooperation

having signed a memorandum of understanding with the Commission on 25 January, 
montenegro is now an associate member of the EU’s seventh framework programme for 
research, covering the period 2007–13 (7). This means that, as from 2008, montenegro 
nationals can take part in European research activities on the same basis and under the 
same conditions as bodies from EU member States.

(1) 
(2) 

(3) 

(4) 
(5) 
(6) 
(7) 

 decisions Nos 742/2008/EC and 743/2008/EC (OJ L 201, 30.7.2008).
 See ‘Small and medium-sized enterprises’ in Chapter II, Section 2, ‘Innovation and enterprise policy’, of 
this Report.
 See ‘Use of information and communication technologies’ in Chapter II, Section 2, ‘Information society 
and the media’, of this Report. 
 COm(2007) 575 (OJ C 55, 28.2.2008).
 COm(2008) 534.
 decision 2008/376/EC (OJ L 130, 20.5.2008).
 IP/08/89.

70 

PROSPERITY

A scientific and technological cooperation agreement was signed with New Zealand (1) 
on 16 July.

On 29 September the Commission proposed renewing the scientific and  technological 
cooperation agreement with the United States (2) and on 12 November that with 
Russia (3).

As regards research and technology in the field of nuclear energy, an agreement for 
research and development cooperation on the peaceful uses of nuclear energy between 
the European Atomic Energy Community (Euratom) and China was signed by the Council 
on 24 April. The Council mandated the Commission to negotiate a similar agreement 
with the United States (4 November) (4).

Joint Research Centre

The Joint Research Centre continued to contribute to Community policies throughout 
the year by making available its technical and scientific expertise.

The JRC’s European forest-fire information system (EFFIS) enabled the member States to 
monitor forest fires in Europe and organise a coordinated campaign against them.

Following the earthquake in China, the JRC provided the local authorities with post-
disaster expertise in assessing damage, preparing reconstruction and avoiding risk.

The JRC took part in the work to set up the ACP Observatory for Sustainable development, 
particularly in the area of techniques for monitoring and managing natural resources in 
the African, Caribbean and Pacific (ACP) countries.

It also contributed to a published report on the impact of climate change in Europe 
which identifies the most vulnerable regions and stresses the need to mitigate the im-
pact of climate change and improve monitoring.

The JRC took part in a study on the current state of Europe’s maritime surveillance sys-
tems intended to gauge existing and potential maritime threats and infringements, such 
as clandestine immigration.

In the context of the water framework directive (5), more specifically with regard to 
evaluating the ecological quality of surface waters in Europe, the JRC organised a survey 

(1) 
(2) 
(3) 
(4) 
(5) 

 IP/08/1159.
 COm(2008) 581.
 COm(2008) 728.
 COm(2008) 507.
 directive 2000/60/EC (OJ L 327, 22.12.2000).

LEVERS OF PROSPERITY 

71

of industrial pollutants in Europe’s water bodies. details on the 35 substances that were 
identified and measured are set out in the resulting database.

In the area of the ‘greening’ of transport, the JRC took part in the process of revising 
the Eurovignette directive (1) by analysing various ways to build in the external costs of 
transport such as pollution, noise and climate change.

The JRC set up an interdisciplinary working group tasked with analysing the technical 
and socioeconomic aspects of biofuels. Taking a number of scenarios, this group is study-
ing the possible impact on greenhouse gas emissions of policies promoting biofuel use. 
It forms part of the framework set up by the biofuels directive (2), which provides for 
biofuels to have a 5.75 % market share by december 2010.

In 2008 the use of a marker that had been proposed by the JRC for the reliable identifi-
cation of animal by-products became obligatory in the EU (3). Such by-products, which 
are not for human consumption and which present various risks, must be identified 
separately during collection, handling and transportation.

The JRC organised the first global conference on the analysis of genetically modified 
organisms (GmOs). discussions highlighted the need for rigorous controls capable of 
detecting GmOs in the environment and the food chain. Together with the European 
Food Safety Authority (EFSA), the JRC published a report on the effects of GmO crops 
on human health. The report assesses the potential impact in the short, medium and 
long term of consuming GmOs and products derived from them.

On nuclear safety, 2008 saw the JRC set up a European clearing house for analysing inci-
dents at nuclear facilities in the EU and drawing up appropriate recommendations. The 
main aim of the initiative is to create a forum for communication between the regulatory 
bodies concerned, the member States and the JRC.

The JRC also provided expert advice on non-identified nuclear materials to national 
authorities in Germany, the Netherlands and Slovakia, in particular.

(1) 

(2) 
(3) 

 directive 1999/62/EC (OJ L 187, 20.7.1999). See ‘Transport and sustainable development’ in Chapter II, 
Section 2, ‘Transport’, of this Report.
 directive 2003/30/EC (OJ L 123, 17.5.2003).
 Regulation (EC) No 1432/2007 (OJ L 320, 6.12.2007).

72 

PROSPERITY

Information society and the media

Electronic communications policy and network security

On 19 march the Commission presented its 13th progress report on the single European 
electronic communications market (2007) (1). This focused on the main market develop-
ments and outstanding regulatory issues. On 25 September the Commission adopted 
a communication on the second periodic review of the scope of universal service in 
electronic communications networks and services (2). This includes general reflections 
on the manner in which universal service could contribute to broader European objec-
tives such as ensuring access to broadband provision.

On 24 September the European Parliament and the Council extended the mandate of 
the European Network and Information Security Agency by three years (3). They called for 
continued reflection on European efforts to improve network and information security. 
In this vein, a public consultation was launched online in November.

The Commission made the following proposals with regard to the development and 
stability of the Internet:

 •

 •

 •

4) establishing a multiannual Community programme 
on 27 February a decision (
(with a budget of EUR 55 million for a period of five years) on protecting children 
using the Internet and other communication technologies; the decision was adopted 
by the European Parliament and the Council on 16 december (5);
on 27 may a communication ‘Advancing the Internet: Action plan for the deploy-
ment of Internet protocol version 6 (IPv6) in Europe’ (6), which encourages Internet 
users and access providers to adopt the most up-to-date Internet protocol in order 
to increase considerably the number of IP addresses; and
7), which 
on 29 September a communication on future networks and the Internet (
focuses on creating an environment that is conducive to a dynamic and open 
Internet; this looks at issues currently under debate worldwide and presents them 
in a European context by re-examining the main challenges and the solutions that 
need to be implemented in order to meet them; the communication is accompanied 
by two documents on the ‘Internet of things’ and a statistical broadband index (8); 
on the same issue, the Council recalled in its conclusions of 27 November that when 
it comes to very high-speed mobile networks, Europe’s position is currently strong 

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 

 COm(2008) 153 (OJ C 202, 8.8.2008).
 COm(2008) 572.
 Regulation (EC) No 1007/2008 (OJ L 293, 31.10.2008).
 COm(2008) 106 (OJ C 202, 8.8.2008).
 decision No 1351/2008/EC (OJ L 348, 24.12.2008).
 COm(2008) 313 (OJ C 10, 15.1.2009).
 COm(2008) 594.
 SEC(2008) 2507 and SEC(2008) 2516.

LEVERS OF PROSPERITY 

73

with respect to equipment and terminal manufacturers and first-tier operators, and 
that in such a context the development of very high-speed mobile broadband is a 
European growth vector.

Also, with a view to making the EU more competitive in the field of high-speed  
services and the Internet, and following the Commission’s communication on the digital 
dividend (1), the European Parliament on 24 September adopted a resolution ‘Reaping 
the full benefits of the digital dividend in Europe: A common approach to the use of 
the spectrum released by the digital switchover’. A Commission report published on 
28 November stresses in this connection that the penetration of broadband in Europe 
continues to improve, with gaps narrowing between member States (2).

On mobile satellite services (new platform for various types of pan-European telecom-
munications and broadcasting or multicasting services), on 30 June the European 
Parliament and the Council adopted a decision (3) geared to promoting the development 
of a competitive internal market for these services in the Community and ensuring that 
they gradually become available in all member States.

On 23 September the Commission also proposed amending the regulation (4) on roam-
ing on public mobile telephone networks within the Community (5). This proposal 
was accompanied by a communication containing a summary of the outcome of the 
Commission’s review of the functioning of the regulation and the main strategic changes 
it proposed, as well as an account of the results of a public consultation (6). The aim is to 
guarantee that the price paid by users of public mobile telephone networks as they travel 
within the Community is not, as regards Community-wide roaming services, abnormally 
higher than what they would pay to make a call, send a text message or transfer data 
in their home country.

On 15 October the Commission adopted a recommendation (7) on rationalising the 
notification procedure for national regulators so as to lighten the administrative obliga-
tions applying to national regulatory bodies for telecommunications when they submit 
draft regulatory measures.

Also, on 6 November, in the context of the reform of the regulatory framework for elec-
tronic communication, the Commission adopted proposals that had been amended to 
take account of the vote in the European Parliament on 24 September and discussions 
in the Council (8).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 

 COm(2007) 700 (OJ C 55, 28.2.2008).
 IP/08/1831.
 decision No 626/2008/EC (OJ L 172, 2.7.2008).
 Regulation (EC) No 717/2007 (OJ L 171, 29.6.2007). 
 COm(2008) 580.
 COm(2008) 579.
 Recommendation 2008/850/EC (OJ L 301, 12.11.2008).
 COm(2008) 720, COm(2008) 723 and COm(2008) 724.

74 

PROSPERITY

As part of its work to harmonise the spectrum for specific applications, the Commission 
tabled a proposal on 19 November for amending the GSm directive (rather than repeal-
ing it) by widening its scope to cover other standards (1).

Audiovisual policy and the MEDIA programme

As regards the mEdIA programme, on 8 may the Commission presented its final assess-
ment report on the implementation and results of the mEdIA Plus and mEdIA training 
programmes (2001–06) (2). It found that the programmes had contributed effectively 
to improving skills, developing the European dimension of Europe’s audiovisual output 
right from the preproduction stage, making the sector more competitive and stimula-
ting the movement of works between countries.

The Commission’s eighth report on the effectiveness of the rules on the promotion of 
European works for the 2005–06 period was adopted on 22 July (3). It found that over 
63 % of European broadcasters’ scheduling was given over to European works and over 
36 % to independent European producers.

Also, on 9 April the European Parliament adopted a declaration on subtitling for all 
programmes on public television in the EU, in which it called on the Commission to 
put forward a legislative proposal placing an obligation to this effect on all public TV 
networks.

On 25 September Parliament also adopted a resolution on concentration and pluralism 
in European media. Underpinning the resolution is a conviction that a pluralistic media 
sector is essential if the social and democratic model is to survive. It calls for competition 
law to be linked to media law so as to avoid conflicts of interest between the concentra-
tion of media ownership and political power. On the same day, Parliament adopted a 
resolution on community media in Europe in which the member States are called upon 
to lend such media more support given their importance for pluralism in the media.

On 10 december the Commission adopted a communication (4) aimed at supporting 
the deployment of mobile TV in the EU by providing guidance on regulatory practice 
for the authorisation of such services at national level.

(1) 
(2) 
(3) 
(4) 

 COm(2008) 762.
 COm(2008) 245.
 COm(2008) 481.
 COm(2008) 845.

LEVERS OF PROSPERITY 

75

Use of information and communication technologies

On this area in general, on 17 April the Commission presented its mid-term review of 
the i2010 initiative (1). It confirmed the importance of the contribution of information 
society and media policies to the achievement of the Lisbon goals and made concrete 
proposals for reorienting the initiative so as better to promote competitiveness and the 
adoption of information and communication technology (ICT) in Europe.

On a similar note, on 13 may the Commission adopted a communication ‘Addressing the 
challenge of energy efficiency through information and communication technologies’ (2). 
here it set out the measures required if ICTs are to be at the centre of energy efficiency 
efforts and used to best advantage.

In other areas, on 3 January, following a public consultation exercise, the Commission 
also presented a communication (3) on creative online content in the single market. On 
11 August it adopted a communication on progress achieved in the EU on digitisation 
and online accessibility of cultural material and digital preservation (4). Europeana, the 
European digital online library, was launched on 20 November (5). Europeana currently 
provides access to over 2 million books and other digital cultural objects from European 
countries’ national libraries and cultural institutions.

As regards health, on 2 July the Commission adopted a recommendation (6) setting 
out the main measures required to give health professionals timely access, by the use 
of information technology, to the key medical information they need to treat patients 
usually treated in another member State. On 4 November, the Commission adopted a 
communication on telemedicine for the benefit of patients, healthcare systems and 
society (7). This presents measures to be taken to develop the use of telemedicine in the 
interests of patients and European citizens, healthcare systems and Europe’s economy.

Seeking to enhance the quality of life of older people by using ICTs, the European 
Parliament and the Council adopted, on 9 July, a decision (8) establishing the ‘ambient 
assisted living’ joint programme. This provides the legal and organisational framework 
for a major European programme on applied research and innovation in the field of ICTs 
for growing old gracefully in the information society (9).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 

 COm(2008) 199 (OJ C 202, 8.8.2008).
 COm(2008) 241.
 COm(2007) 836 (OJ C 106, 26.4.2008).
 COm(2008) 513.
 IP/08/1747.
 Recommendation 2008/594/EC (OJ L 190, 18.7.2008).
 COm(2008) 689.
 decision No 742/2008/EC (OJ L 201, 30.7.2008).
 See ‘Creating the European research area’ in Chapter II, Section 2, ‘Research’, of this Report.

76 

PROSPERITY

In addition, on 1 december the Commission adopted a communication ‘Towards an 
accessible information society’ (1) with the aim of guaranteeing e-accessibility, i.e. pro-
viding the opportunity to overcome the technical barriers and difficulties that people 
with disabilities, including many elderly people, experience when trying to participate 
on equal terms in the information society.

Also, on 4 September the Commission presented the results of the evaluation of the 
‘Information society technologies (IST)’ thematic priority in the sixth framework pro-
gramme for research, technological development and demonstration (2). The evaluation 
concluded that investment in European ICT research had been effective in achieving its 
objectives. It also highlighted a number of options for creating a more receptive environ-
ment for the innovation stemming from ICT research.

On 29 September the Commission adopted a proposal for a decision on interoper-
ability solutions for European public administrations (ISA) (3). The ISA programme will 
help to set up the organisational, financial and operational framework for efficient, and 
effective, electronic interaction across borders and sectors between European public 
administrations.

On 28 November the Commission adopted an action plan for establishing a Europe-wide 
solution for the cross-border use of online public services, proposing an overall approach 
and shorter deadlines (4).

As an administration itself, throughout 2008 the Commission continued to implement 
its ‘e-Commission 2006–10’ strategy, seeking to make itself more effective, more efficient 
and more transparent, and to improve the quality of its services through the best pos-
sible use of ICT in the interests of citizens, businesses and partner administrations.

In the field of statistics, on 30 October the Commission adopted a proposal for a regula-
tion on Community statistics on the information society (5) aimed in particular at provid-
ing annual statistical data on the use of ICT in businesses and households.

(1) 
(2) 
(3) 
(4) 
(5) 

 COm(2008) 804.
 COm(2008) 533.
 COm(2008) 583.
 COm(2008) 798.
 COm(2008) 677.

LEVERS OF PROSPERITY 

77

Education and training

Lifelong learning

On 14 February the Council adopted the third joint progress report on the implementa-
tion of the ‘Education and training 2010 work programme — delivering lifelong learning 
for knowledge, creativity and innovation’, evaluating the contribution made by educa-
tion to the Lisbon process (1). The report presents an overview of progress achieved and 
highlights areas in which a particular effort is required (such as raising general skill levels, 
implementing strategies for lifelong education and training and reinforcing the know-
ledge triangle of education, research and innovation). It also stresses that the low level 
of participation in adult education and training by older workers and the less-qualified 
remains a major problem.

Following the report, the Council adopted conclusions (2) on 22 may which recognised 
the decisive role that adult education and training can have in achieving the Lisbon 
strategy objectives. Attached to the conclusions were proposals for concrete measures 
for the period 2008–10, some of which would be taken by the Commission with the 
cooperation of the member States and others by the member States with support from 
the Commission.

In addition, as part of the package of measures on the Lisbon strategy, on 16 december 
the Commission adopted a communication ‘An updated strategic framework for 
European cooperation in education and training’ (3), in which it identifies both immedi-
ate priorities for 2009–10 and long-term strategic challenges with a view to delivering 
the high levels of sustainable, knowledge-based growth and jobs that are at the heart 
of the Lisbon strategy.

On 22 may the Council also adopted conclusions on promoting creativity and innovation 
in education and training. The conclusions recognise that creativity and the capacity to 
innovate are fundamental for sustainable economic and social development in Europe 
and propose paying more attention to them in the context of future European cooper-
ation in the field of education (4).

The European Parliament, for its part, adopted a resolution on 16 January encouraging 
the member States to promote the acquisition of knowledge and foster a culture of 
lifelong education and training.

(1) 
(2) 
(3) 

(4) 

 OJ C 86, 5.4.2008.
 OJ C 140, 6.6.2008.
 COm(2008) 865. See Chapter II, Section 1, ‘The Lisbon strategy: a partnership for growth and employment’, 
of this Report.
 OJ C 141, 7.6.2008.

78 

PROSPERITY

On 23 April, to encourage use of the open method of coordination in the field of educa-
tion and training, the European Parliament and the Council adopted a regulation on the 
production and development of statistics on education and lifelong learning (1). This 
provides the broader legal framework required to guarantee the production of statistics 
covering all current and prospective activities in this area.

The European qualifications framework (EQF) for lifelong learning was approved by the 
European Parliament and the Council on 23 April (2). The idea of the EQF is to improve 
mobility by making qualifications obtained in all areas of education across the EU more 
transparent. On 3 and 4 June the first conference on the application of the new instru-
ment was held in Brussels.

On 3 July, as part of the renewed social agenda (3), the Commission presented a com-
munication on schools (4) intended to support member States’ efforts to improve the 
quality of their education systems and meet objectives with respect to the numbers 
of young people dropping out of school, reading and writing skills, continuing with  
secondary education and preparing young people for lifelong education and training. 
The communication put forward an agenda for cooperation in three areas: giving all 
pupils the competences they need for life, a commitment to providing high-quality 
learning for every student and improving the quality of teachers and school staff.

The same day, in its Green Paper ‘migration and mobility: Challenges for EU education 
systems’ (5), the Commission launched a debate on challenges to education systems aris-
ing from immigration. This is intended to encourage the exchange of information and 
experiences on an issue that has significant implications for member States’ educational 
systems. The consultation period was set to last until 31 december.

On 23 September the European Parliament adopted a resolution on the Bologna pro-
cess and student mobility. It emphasised that a whole series of horizontal measures was 
needed to encourage student mobility as the issues went beyond the narrow context 
of higher education as such and also affected social affairs, finance, immigration and 
visa policy.

On the same day Parliament made a statement on raising the quality of teacher training, 
which in its view was a way of achieving real improvements in students’ results.

On 3 November the Commission launched the Comenius Regio partnerships, a new 
measure under the lifelong learning programme (6).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

 Regulation (EC) No 452/2008 (OJ L 145, 4.6.2008).
 OJ C 111, 6.5.2008.
 See ‘Renewed social agenda’ in Chapter III, Section 1, ‘Social dimension’, of this Report.
 COm(2008) 425.
 COm(2008) 423. 
 IP/08/1621.

LEVERS OF PROSPERITY 

79

Education and vocational training

In the field of education and vocational training, on 9 April the Commission adopted 
two recommendations on establishing:

 •

 •

a European quality assurance reference framework for vocational education and 
training (1): this is an instrument to help member States to promote and monitor 
continuous improvement of their vocational education and training systems based 
on common European references; and
2): this aims to fa-
a European credit system for vocational education and training (
cilitate the transfer and the recognition of studies undertaken in the past by people 
moving from one system of qualifications to another, or one course of study to an-
other, in order to obtain a certain qualification.

Also, on 22 October the European Parliament and the Council adopted a decision on 
the comparability of vocational training qualifications between the member States of 
the European Union (3).

Over the year, the Commission presented several evaluation reports on initiatives in the 
field of education and vocational training. These included a report on the Community’s 
action programme to promote bodies active at European level and support specific 
activities in the field of education and training (4) (on 5 June) and one on the external 
evaluation of the European Centre for the development of Vocational Training (5) (on 
13 June). On 4 July the Commission presented a first evaluation of the Europass initia-
tive (6) in which it concluded that the initiative was achieving its objectives as a mobility 
tool for citizens and was relevant to their needs, helping them to make their compe-
tences and qualifications easier to understand and more acceptable both in learning 
contexts and the labour market.

On 30 October the Commission adopted a report on modernising universities for 
Europe’s competitiveness in a global knowledge economy (7).

European Institute of Innovation and Technology

On 11 march the European Parliament and the Council adopted the regulation estab-
lishing the European Institute of Innovation and Technology (8), the task of which is to 

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 

 COm(2008) 179 (OJ C 202, 8.8.2008).
 COm(2008) 180 (OJ C 202, 8.8.2008).
 decision No 1065/2008/EC (OJ L 288, 30.10.2008).
 COm(2008) 337 (OJ C 10, 15.1.2009).
 COm(2008) 356 (OJ C 10, 15.1.2009).
 COm(2008) 427.
 COm(2008) 680.
 Regulation (EC) No 294/2008 (OJ L 97, 9.4.2008).

80 

PROSPERITY

strengthen innovation capacity in the Community and in the member States by bring-
ing together top players (higher education, research, business and entrepreneurs) in 
the knowledge triangle. On 18 June, the city of Budapest was chosen as the site for the 
institute. The first governing board of the EIT was officially appointed on 30 July following 
a two-phase public consultation exercise (in march and April) and three plenary sessions 
were held in the course of the year.

Multilingualism

On 22 may the Council adopted conclusions on multilingualism (1). It asked the Commission 
to draw up proposals before the end of 2008 on a comprehensive action framework for 
multilingualism.

In response, on 18 September the Commission adopted a communication ‘multilingualism: 
An asset for Europe and a shared commitment’ (2), which sets out a horizontal strate-
gic framework for multilingualism which is rooted in the renewed social agenda. This 
provides for a number of initiatives to promote multilingualism, including some involv-
ing third countries, and recommends cooperation with the member States in this area 
through the open method of coordination. It is accompanied by a Commission staff 
working paper listing Community action on multilingualism.

The strategic thrust of the communication was endorsed by the Council in the resolution 
on a European multilingualism strategy which it adopted on 21 November and which 
highlights in particular the importance of translation for the distribution of works of 
culture.

International cooperation

The Commission continued to implement the first phase of the Erasmus mundus pro-
gramme (2004–08), which entered its fifth and final year, and to negotiate the second 
phase of the programme, which should come into force in 2009 and last until 2013. The 
first phase saw support for 103 joint masters programmes and over 7 000 grants given 
to students and teachers from non-EU countries.

Cooperation with industrialised countries in the field of higher education and vocational 
training was reinforced with the launching of 35 new joint projects (including 16 with 
the United States, five with Canada, four with Australia, three with South korea, two 
with Japan and one with New Zealand). The projects are co-financed with the partner 
countries and will enable at least 1 600 students to study in the partner countries for half 

(1) 
(2) 

 OJ C 140, 6.6.2008.
 COm(2008) 566.

LEVERS OF PROSPERITY 

81

an academic year and, in the case of the programme with the United States, to obtain 
double diplomas.

Other joint declarations on the launch of sectoral political dialogues in the field of educa-
tion and training were signed with Israel in July and with India in November.

A China–EU language exchange programme, sponsored by the Chinese government, 
was officially launched in Brussels in June.

European Year of Creativity and Innovation (2009) (1)

On 16 december the European Parliament and the Council adopted a decision designat-
ing 2009 as the European Year of Creativity and Innovation (2). The overall objective of 
the Year is to promote creativity for all as a driver for innovation and as a key factor for 
the development of personal, occupational, entrepreneurial and social competences 
through lifelong learning. Activities will be based on existing Community programmes, 
in particular the 2007–13 lifelong learning programme and the 2007–13 Culture pro-
gramme, as well as other programmes and initiatives covered by the priorities set for 
each instrument for the period including 2009.

Transport

Transport and sustainable development

On 11 march the European Parliament adopted a resolution on a sustainable European 
transport policy. Parliament made proposals in the areas of road, rail, air and sea trans-
port and called on the Commission and the member States to increase research invest-
ment in order to foster the emergence of technology offering greater energy efficiency 
and lower carbon dioxide emissions.

On 13 February the European Economic and Social Committee adopted an exploratory 
opinion on the energy mix in transport (3). It expressed its conviction that the future of 
transport has to lie in the progressive decarbonisation of fuels, and should achieve zero 
emissions.

On a more specific note, on 11 January the Commission presented its ‘Agenda for sus-
tainable future in general and business aviation’ (4). This addresses issues such as com-
piling a set of basic data, adhering to the principles of proportionality and subsidiarity, 

(1) 
(2) 
(3) 
(4) 

 See ‘Innovation’ in Chapter II, Section 2, ‘Innovation and enterprise policy’, of this Report.
 decision No 1350/2008/EC (OJ L 348, 24.12.2008).
 OJ C 162, 25.6.2008.
 COm(2007) 869 (OJ C 106, 26.4.2008).

82 

PROSPERITY

promoting new technology, facilitating access to international markets and meeting 
environmental challenges.

On 8 July, with a view to promoting the environmental viability of the sector, the 
Commission adopted a package of measures for more sustainable transport. The pack-
age comprised:

 •

 •

 •

 •

1), calling for more of the costs of 
an umbrella communication on ‘greening’ transport (
transport to be borne by transport users through realistic pricing, in order to reduce 
the negative impact of transport in terms, in particular, of accidents, traffic conges-
tion, environmental damage and noise pollution;
2), which 
a communication on the abatement of rail noise from the existing fleet (
contains measures that would cut by half the level of noise from freight trains (e.g. 
retrofitting freight wagons with low-noise brake blocks);
3), which 
a communication on the internalisation of the external costs of transport (
includes a model for quantifying (congestion, pollution, etc.) costs that could be used 
to calculate infrastructure charges; and
4) on the charging of heavy goods 
a proposal for revising the Eurovignette directive (
vehicles for the use of certain infrastructures, which seeks to establish a framework 
enabling member States to calculate and calibrate toll charges on the basis of the 
cost of the pollution caused by traffic and congestion.

As part of this package and follow-up to the 2006 mid-term review of the transport 
white Paper (5), on 16 december the Commission adopted an action plan on the use of 
intelligent transport systems in Europe (6).

On 24 September the European Parliament and the Council adopted a directive on the 
inland transport of dangerous goods (7) which includes provisions on protecting the 
environment.

Rail transport

Looking to the best possible provision and more transparent management of railway 
infrastructures, on 6 February the Commission adopted a communication ‘multiannual 

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 

 COm(2008) 433.
 COm(2008) 432.
 COm(2008) 435.
 COm(2008) 436.
 COm(2006) 314.
 COm(2008) 886 and COm(2008) 887.
 directive 2008/68/EC (OJ L 260, 30.9.2008). See ‘General’ in Chapter IV, Section 2, ‘Transport safety and 
security’, of this Report.

LEVERS OF PROSPERITY 

83

contracts for rail infrastructure quality’ (1), in which it recommended that multiannual 
contracts between the state and infrastructure operators be used more widely.

On 30 April the Commission presented guidelines (2) on the compatibility with the EC 
Treaty of state aid for railway undertakings (3). The objective is to improve the trans-
parency of public financing and legal certainty with regard to the EC Treaty rules in the 
context of the opening-up of the markets.

On 17 June the European Parliament and the Council adopted a directive on the 
 interoperability of the rail system within the Community (4), which establishes a leg-
islative framework aimed at reducing barriers to bringing railway vehicles into service. 
Cross-acceptance between member States will be improved through more systematic 
application of the principle of mutual recognition and the harmonisation of national 
authorisation procedures.

The Commission adopted a communication on 8 September on the quality of rail freight 
services (5). This also looks at the effectiveness of voluntary agreements and measures 
taken by the sector and makes recommendations for Community action in this area.

On 11 december the Commission adopted a proposal for a regulation on a European 
railway network for competitive freight transport (6). This provides for the creation of 
transnational rail corridors which, with greater coordination between infrastructure  
operators, will enable rail freight to be more competitive and make the best use of exist-
ing infrastructure by giving it sufficient priority.

In the course of the year, the Commission launched infringement proceedings against 
24 member States for incorrect transposition of the directives making up the first railway 
package (7). Its objective was to ensure the compliance with applicable legal provisions 
(including those on the separation between railway infrastructure operators and railway 
companies, and on the role of the control bodies) which are essential for establishing 
an open competitive market in railway services.

(1) 
(2) 
(3) 
(4) 

(5) 
(6) 
(7) 

 COm(2008) 54 (OJ C 118, 15.5.2008).
 OJ C 184, 22.7.2008.
 directive 91/440/EEC (OJ L 237, 24.8.1991).
 directive 2008/57/EC (OJ L 191, 18.7.2008). See ‘Rail safety and security’ in Chapter IV, Section 2, ‘Transport 
safety and security’, of this Report.
 COm(2008) 536.
 COm(2008) 852.
 directives 2001/12/EC and 2001/14/EC (OJ L 75, 15.3.2001).

84 

Roads and waterways

PROSPERITY

On 22 October the European Parliament and the Council adopted a regulation on the 
elimination of controls performed at the frontiers of member States in the field of road 
and inland waterway transport (1).

Maritime transport

On 26 June, following the adoption in October 2007 of an action plan for an integrated 
maritime policy (2), the Commission presented a communication on ‘Guidelines for an 
integrated approach to maritime policy: Towards best practice in integrated maritime  
governance and stakeholder consultation’ (3), which gives guidance on these two 
areas.

Air transport

On 25 June, in order to enhance the effectiveness, sustainability and safety of air trans-
port in European airspace, the Commission adopted the second package of legislation 
on the single European sky. This consists of three measures:

 •

 •

 •

a proposal for a regulation to improve the performance (environmentally and other-
wise) and viability of the European aviation system so as to provide a better service 
for aircraft operators, reduce costs and ensure sustainable growth (4);
a proposal for a regulation to extend the tasks of the European Aviation Safety 
Agency (5); and
a communication ‘Single European Sky II: Towards more sustainable and better-
performing aviation’, explaining the proposals for regulations (6).

The Commission also adopted, on 15 February, a report (7) assessing the effectiveness of 
the directive on the establishment of rules and procedures with regard to the introduc-
tion of noise-related operating restrictions at Community airports (8).

In a communication adopted on 30 April, the Commission presented the results (9) of the 
consultation of interested parties on the application of the regulation on the allocation 

(1) 
(2) 
(3) 
(4) 
(5) 

(6) 
(7) 
(8) 
(9) 

 Regulation (EC) No 1100/2008 (OJ L 304, 14.11.2008).
 COm(2007) 575 (OJ C 55, 28.2.2008).
 COm(2008) 395 (OJ C 10, 15.1.2009).
 COm(2008) 388.
 COm(2008) 390. (OJ C 10, 15.1.2009). See ‘Aviation safety and security’ in Chapter IV, Section 2, ‘Transport 
safety and security’, of this Report.
 COm(2008) 389 (OJ C 10, 15.1.2009).
 COm(2008) 66 (OJ C 207, 14.8.2008).
 directive 2002/30/EC (OJ L 85, 28.3.2002).
 COm(2008) 227.

LEVERS OF PROSPERITY 

85

of slots at Community airports (1). This interpretative communication seeks to facilitate 
implementation of the regulation.

On 16 december the Council adopted a regulation (2) on the establishment of a joint 
undertaking to develop the new generation European air traffic management system 
(SESAR), which in particular clarifies its legal status.

On a more general level, the Commission continued to implement its action plan for 
airport capacity, efficiency and safety in Europe (3). This included launching a consult-
ation on 4 July on combined train/plane ticketing. Also, a Community observatory on 
airport capacity planning was set up and met for the first time on 4 November to hear 
all the interested parties discuss their experiences on this front. On the basis of these 
discussions, the observatory will adopt opinions to help the Commission in implement-
ing the action plan.

EGNOS and Galileo

On 9 July the European Parliament and the Council adopted a regulation on the further 
implementation of the European satellite radionavigation programmes (EGNOS and 
Galileo) (4). This sets the budgetary resources required to finance the two programmes at 
EUR 3.4 billion for the period from 1 January 2007 to 31 december 2013. It also provides 
for improved public governance of the programmes by laying down a strict division 
of competences between the European Community, the European GNSS Supervisory 
Authority and the European Space Agency, entrusting the Commission with the imple-
mentation of the programmes and taking measures to ensure consistency between opin-
ions issued by the Committee on European GNSS Programmes and decisions adopted 
by the Administrative Board of the European GNSS Supervisory Authority.

International cooperation

As regards air services, the agreement between the European Union and the United 
States of America entered into force on 30 march (5). As a result, all EU airlines can fly 
direct to the United States from any airport in Europe and no longer only from their 
country of origin. The agreement does away with all restrictions affecting connections, 
fares or the number of flights per week. On 30 June, the European Community and the 
United States also signed an agreement on cooperation in the regulation of civil avi-
ation safety (6).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

 Regulation (EEC) No 95/93 (OJ L 14, 22.1.1993).
 Regulation (EC) No 1361/2008 (OJ L 352, 31.12.2008).
 COm(2006) 819 (OJ C 138, 22.6.2007).
 Regulation (EC) No 683/2008 (OJ L 196, 24.7.2008).
 IP/08/474.
 IP/08/1059.

86 

PROSPERITY

Negotiations with non-EU countries continued in 2008 with a view to replacing cer-
tain provisions in existing agreements on air services with a Community agreement. 
decisions concerning the conclusion of the agreements were adopted for Croatia, the 
former Yugoslav Republic of macedonia, Georgia, kyrgyzstan, Lebanon, malaysia, the 
maldives, moldova, Panama, Paraguay, Singapore and Uruguay (on 18 February) (1), 
morocco (17 march) (2) and Azerbaijan (8 July) (3).

decisions on the signing and provisional application of agreements were also adopted 
for Australia (4) and Nepal (5) (7 April), Pakistan (6) (21 may), Israel (7) (15 September), 
India (8) (25 September) and Armenia (9) (27 November).

The Commission also proposed establishing agreements with kazakhstan (10) (21 February), 
mexico (11) (5 August) and the west African Economic and monetary Union (12) (17 July). 
This last agreement is the first to be negotiated between the Community and another 
regional organisation.

Also, on 1 October the Commission adopted a progress report on the creation of a com-
mon aviation area with the neighbouring countries by 2010 (13).

The objectives of such agreements are to give all Community air carriers non-discrim-
inatory access to routes between the Community and non-EU countries, and to bring 
bilateral air service agreements between member States and third countries into line 
with Community law.

An agreement on maritime transport  (14) was concluded between the European 
Community and China on 28 January.

Also, on 6 November the Commission adopted a proposal for a decision on the signing 
of the protocol for the European Community’s accession to the Belgrade Convention of 
18 August 1948 regarding the regime of navigation on the danube (15).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 
(10) 
(11) 
(12) 
(13) 
(14) 
(15) 

 OJ L 60, 5.3.2008 and OJ L 106, 16.4.2008.
 OJ L 87, 29.3.2008.
 COm(2005) 60.
 COm(2005) 264.
 COm(2008) 41. 
 COm(2008) 81.
 COm(2008) 178 (OJ C 202, 8.8.2008).
 decision 2008/797/EC (OJ L 273, 15.10.2008).
 COm(2007) 729.
 COm(2008) 92 (OJ C 207, 14.8.2008).
 COm(2008) 506.
 COm(2008) 463.
 COm(2008) 596.
 decision 2008/143/EC (OJ L 46, 21.2.2008).
 COm(2008) 700.

LEVERS OF PROSPERITY 

87

Trans-European transport networks

On 5 march the Commission adopted a communication on the progress of exploratory 
talks regarding cooperation in the field of transport with the neighbouring countries (1). 
The first round of discussions had revealed a keen interest in strengthening regional 
cooperation structures and coordination between the enlarged political dialogue and 
the establishing of transport axes. discussions with the western Balkans have already 
been concluded and the Commission has proposed the adoption of negotiating direc-
tives to establish a transport community in the region.

On 5 december the Commission took a decision to allocate funding of over EUR 1.7 bil-
lion to railway projects under the trans-European transport network (TEN-T) programme 
for 2007–13 (2).

Energy

General

On 13 June the Commission adopted a communication ‘Facing the challenge of higher 
oil prices’ (3). Together with the communication on food prices (4), this presents member 
States with a framework for addressing the immediate consequences of the price rises 
and seeking medium- and long-term solutions to the new constraints as regards re-
sources. The proposals involve adjusting energy demand and encouraging energy ef-
ficiency in all parts of the economy.

On the same theme, on 25 September the European Parliament adopted a resolution 
on controlling energy prices, calling for a strong political commitment to taking spe-
cific measures to reduce energy demand, promoting renewable energy and energy ef-
ficiency, pursuing diversification of energy supply and reducing dependence on fossil 
fuel imports.

In the area of statistics, on 22 October the European Parliament and the Council es-
tablished a stable institutional basis for the collection of energy data (5) in order to 
give the EU exhaustive and comparable statistics at European level on a whole series of 
energy-related issues.

(1) 
(2) 
(3) 
(4) 

(5) 

 COm(2008) 125 (OJ C 202, 8.8.2008).
 IP/08/1891.
 COm(2008) 384 (OJ C 10, 15.1.2009).
 COm(2008) 321(OJ C 10, 15.1.2009). See ‘Agricultural prices and related measures’ in Chapter III, Section 
2, ‘Agriculture and rural development’, of this Report.
 Regulation (EC) No 1099/2008 (OJ L 304, 14.11.2008).

88 

PROSPERITY

Energy and sustainable development

On 23 January the Commission adopted a proposal for a directive on the promotion of 
the use of energy from renewable sources (1). This includes a binding target of 20 % as 
regards the share of final consumption in 2020 accounted for by renewable energy, and 
a specific target of 10 %, also by 2020, in the transport sector. A legislative framework is 
put forward for achieving these targets, as well as criteria and provisions to ensure the 
sustainability of biofuels and bioliquids. The proposal is part of a package of measures 
on energy and the climate (2).

Also on 23 January, the Commission adopted a communication on a first assessment of 
the national energy efficiency action plans (3). It provides a first overview of the range 
of strategies and measures presented by the member States and a first identification of 
examples of good practice which merit closer examination. The Commission has con-
centrated on reviewing the part of the strategies addressing the exemplary role of the 
public sector, and information.

The European Council of 15 and 16 October reasserted that security of energy supply 
is a priority for the European Union. Specifically, it called for finalisation of the legisla-
tive package for the internal market in electricity and gas, swift implementation of the 
European energy efficiency action plan and the strategic energy technology plan, the 
determined pursuit of the diversification of energy sources in the context of the en-
ergy/climate package, development of crisis mechanisms for dealing with temporary 
interruptions of supply, the strengthening and expansion of critical infrastructures, and 
stabilising supply by developing relations with producer countries.

On 13 November the Commission adopted its second strategic analysis of EU energy 
policy. In line with the measures designed to achieve the EU’s energy and climate change 
targets, this set of measures in the energy sector gives a new boost to energy security 
in Europe. It consists of the following:

 •

 •

 •

a new strategy for creating solidarity between the member States in the field of en-
ergy and a new policy on energy networks to stimulate investment in more efficient, 
low-carbon energy networks (4);
a European energy security and solidarity action plan which identifies five areas in 
which more action is needed to guarantee a sustainable energy supply (5);
a package of energy efficiency proposals which aims to make energy savings in 
key areas, such as reinforcing energy efficiency legislation on buildings and energy-

(1) 
(2) 
(3) 
(4) 
(5) 

 COm(2008) 19 (OJ C 118, 15.5.2008).
 See ‘Climate change’ in Chapter III, Section 2, ‘Environment’, of this Report.
 COm(2008) 11 (OJ C 118, 15.5.2008).
 COm(2008) 768, COm(2008) 769, COm(2008) 770, COm(2008) 775, COm(2008) 776 and COm(2008) 782.
 COm(2008) 781.

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89

using products, and enhancing the role of energy performance certificates as well 
as inspection reports for heating and air-conditioning systems (1).

Internal market in energy

On 15 April the Commission issued a report on progress in creating the internal gas and 
electricity market (2). despite some encouraging improvements, especially with respect 
to the development of best practice solutions on a regional level, the overall analysis of 
progress shows that major barriers for the efficient functioning of the internal market 
still exist. The third package of legislation on the internal gas and electricity market (3) 
should help to remedy this.

Energy technology and innovation

In its conclusions of 28 February the Council set out fundamental principles, objectives 
and actions for a European policy on energy technology. According to the Council, such 
a policy should improve synergies at Community level and take account of existing 
structures for cooperation on research, development, demonstration and deployment in 
the field of energy technology. The private sector should be fully involved in the process 
of developing such technology.

In a resolution adopted on 9 July on the European strategic energy technology (SET) 
plan, the European Parliament expressed support for a European policy in this area with 
adequate financial backing, which it sees as essential to the achievement, by 2020, of 
the EU’s objectives in the fields of energy and climate change.

Nuclear energy

In conclusions adopted on 8 december the Council decided to support the creation of 
a nuclear fuel bank under the control of the International Atomic Energy Agency (IAEA). 
The EU intends to contribute EUR 25 million to this project. The nuclear fuel bank will be 
part of a wider effort aimed at establishing multilateral fuel supply mechanisms.

Euratom Treaty and Euratom Supply Agency

On 12 February the Council adopted a decision (4) repealing and replacing the statutes 
of the Euratom Supply Agency so as to take account of the increase in the number 

(1) 
(2) 
(3) 

(4) 

 COm(2008) 771, COm(2008) 772, COm(2008) 778, COm(2008) 779 and COm(2008) 780.
 COm(2008) 192 (OJ C 202, 8.8.2008).
 COm(2007) 528, COm(2007) 529, COm(2007) 530, COm(2007) 531 and COm(2007) 532 (OJ C 4, 
9.1.2008).
 decision 2008/114/EC, Euratom (OJ L 41, 15.2.2008).

90 

PROSPERITY

of member States and of the need for the Agency to be subject to modern financial ar-
rangements; the decision also fixed Luxembourg as the site of the Agency.

On 3 July the Commission presented a summary of activities carried out in 2007 in im-
plementation of Title II, Chapters 3 to 10, of the Euratom Treaty (1). This also covers the 
activities of the Euratom Supply Agency.

International cooperation

In the regional context, there was continued cooperation under the Baku Initiative  
with the countries of eastern Europe, the Caucasus and central Asia. Cooperation with 
the Gulf countries and the Organisation of Petroleum Exporting Countries (OPEC) was 
strengthened and continued in the case of the Asian countries covered by the Asia–
Europe process (ASEm) and African countries.

Representatives of the European Union, Iraq, Turkey and the mashreq countries met in 
Brussels on 5 may and issued a joint declaration underlining the importance of stronger 
energy cooperation between them to create a gas market that would be integrated 
into the EU’s internal market through the development of connection infrastructures in  
the region.

The ministerial Council of the Energy Community met on 27 June in Brussels and on 
11 december in Tirana. The participants agreed to adopt a common regional proce-
dure for allocating electricity capacity and managing border congestion. The Energy 
Community also adopted a dispute settlement mechanism based on rules allowing 
companies in the member countries to lodge complaints when they encounter ir-
regularities. Significant progress was registered in most of the western Balkan coun-
tries as regards the implementation of European legislation on the gas and electricity 
market.

In the bilateral context, the European Union and Russia continued their energy dialogue 
with a view to concluding new agreements. Partnerships with Azerbaijan, kazakhstan 
and Ukraine were maintained. The Commission also initiated a dialogue with a view to 
new cooperation with Belarus and moldova. In addition, new strategic partnerships got 
under way this year with Algeria, Egypt, Iraq and Turkmenistan. The bilateral dialogues 
also continued with Jordan, Libya and morocco, as well as Argentina, Australia, Brazil, 
Canada, Chile, China, the United States and India. There were ongoing negotiations with 
Switzerland on the electricity market.

(1) 

 COm(2008) 417.

LEVERS OF PROSPERITY 

91

General references and other useful links

 •

 •

 •

 •

 •

 •

 •

 •

Enterprise: 
http://ec.europa.eu/enterprise/index_en.htm

directorate-General for Competition: 
http://ec.europa.eu/dgs/competition/index_en.htm

directorate-General for Research: 
http://ec.europa.eu/research/index.cfm?lg=en

Joint Research Centre: 
http://ec.europa.eu/dgs/jrc/index.cfm

directorate-General for the Information Society and media: 
http://ec.europa.eu/dgs/information_society/index_en.htm

Education: 
http://ec.europa.eu/education/index_en.htm

directorate-General for Energy and Transport: 
http://ec.europa.eu/dgs/energy_transport/index_en.htm

Internal market: 
http://ec.europa.eu/internal_market/index_en.htm

Chapter III

Solidarity

Section 1

Consolidating economic and social cohesion

Background

The purpose of the cohesion policy is to reduce the disparities between Member States and 
within the Member States themselves. Its goals are to promote investment which will stimulate 
growth and employment, to encourage the growth of the knowledge economy and to attract 
more people towards setting up a business.

In 2007 the Commission laid the foundations of a renewed social agenda aimed at meeting 
the new social challenges facing our societies. It identified the key domains of this agenda for 
opportunities, access and solidarity: youth, career opportunities, longer and healthier lives, 
inclusion and non-discrimination, mobility and integration, and solidarity at a global level.

Regional dimension and cohesion policy

Cohesion policy

The new generation of sectoral and regional cohesion policy programmes has aimed 
since 2007 at relaunching employment and growth in all member States and all regions 
of the European Union. In this context, on 14 may the Commission adopted a commu-
nication on the results of the negotiations concerning cohesion policy strategies and

94 

SOLIdARITY

 programmes for the programming period 2007–13 (1). The communication analyses the 
450 programmes and concludes that the member States and the regions have radically 
revised their priorities and have invested heavily in competitiveness, employment and 
growth in line with the Lisbon strategy.

The fifth progress report on economic and social cohesion (2) was adopted by the 
Commission on 18 June. It summarises the public debate and provides a concise ana-
lysis of the European growth sectors, whose regional performance will to a great extent 
determine the level of economic development of the regions in the years to come.

On 6 October the Commission adopted a Green Paper (3) on territorial cohesion ‘Turning 
territorial diversity into a strength’, thereby launching a wide-ranging consultation aimed 
at deepening the shared understanding of territorial cohesion and its implications for 
the future of regional policy in the European Union. On 14 November the Commission 
presented the ‘Regions 2020’ (4) report, putting forward a prospective analysis of the 
probable regional impact of the four key challenges facing Europe: globalisation, demo-
graphic change, climate change and the energy challenge. The report’s conclusions will 
feed into the process of reflecting on the future of European cohesion policy.

Following the adoption of the European economic recovery plan (5), on 16 december 
the Commission presented a communication demonstrating how cohesion policy can 
help revitalise the real economy in Europe (6). The communication suggests a series of 
actions to the member States, calling on them to exploit fully and rapidly the oppor-
tunities offered by the cohesion policy. It also presents the new measures for speeding 
up the implementation of the operational programmes. The European investments of 
EUR 347 billion available until 2013 will enable this policy to stimulate the economy in 
the short term while laying the foundations for longer-term growth.

On 3 december the Commission adopted a proposal (7) which will enable all member 
States to invest in initiatives to assist energy efficiency and renewable energy in housing. 
This proposal to amend the existing regulation on the European Regional development 
Fund (ERdF) (8) also forms part of the European economic recovery plan.

Also during the year, the Committee of the Regions delivered several own-initiative 
opinions on cohesion policy. On 7 February it adopted an own-initiative opinion on 

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

(7) 
(8) 

 COm(2008) 301 (OJ C 10, 15.1.2009).
 COm(2008) 371 (OJ C 10, 15.1.2009).
 COm(2008) 616.
 SEC(2008) 2868.
 COm(2008) 800. See ‘European economic recovery plan’ in Chapter I, Section 4, of this Report.
 COm(2008) 876. See Chapter II, Section 1, ‘The Lisbon strategy: a partnership for growth and jobs’, of this 
Report.
 COm(2008) 838.
 Regulation (EC) No 1080/2006 (OJ L 210, 31.7.2006). 

CONSOLIdATING ECONOmIC ANd SOCIAL COhESION 

95

‘The contribution of volunteering to economic and social cohesion’ (1) and on 18 June 
put forward its views on the ‘European grouping of territorial cooperation: New impetus 
for territorial cooperation in Europe’ (2). On 8 October it adopted an outlook opinion on 
governance and project planning in the field of regional policy (3). On 17 September 
the European Economic and Social Committee adopted an exploratory opinion on the 
urban environment, recommending that a high-level group on urban development and 
sustainability be set up at Community level.

As regards financial management, on 19 February the Commission adopted a Structural 
Funds action plan, thus following up on the recommendations of the Court of Auditors 
that the Commission’s supervisory role in the shared management of structural actions 
be strengthened (4).

On 21 October the European Parliament adopted a resolution on national and regional 
governance and partnership, in which for the sake of simplicity and efficiency it sug-
gests merging the various European funds into the future cohesion policy for the period 
after 2013.

At bilateral level, on 23 July the Commission adopted a report on the management 
of EU funds in Bulgaria (5). Following serious allegations of irregularities, suspicions of 
fraud and conflicts of interest in the award of contracts, the Commission investigated 
the management of these funds by the Bulgarian authorities. The investigations led to 
a temporary suspension of the payment of pre-accession aid and the freezing of pay-
ments under various other financial instruments during the second half of 2007 and 
the first half of 2008.

Outermost regions

On 17 October the Commission adopted a communication ‘The outermost regions: An 
asset for Europe’ (6). This puts forward a renewed strategy of the outermost regions as 
‘regions of opportunity’, rich in development potential, while ensuring that their specific 
characteristics are taken into account. The Commission makes recommendations to en-
sure optimum use of the instruments and possibilities available in the current financial 
framework (2007–13). It also proposes specific action in areas such as climate change, 
migration and demographic trends.

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

 OJ C 105, 25.4.2008.
 OJ C 257, 9.10.2008.
 OJ C 325, 19.12.2008.
 COm(2008) 97 (OJ C 207, 14.8.2008).
 COm(2008) 496.
 COm(2008) 642.

96 

Further developments

SOLIdARITY

On 7 April the Commission presented the results of the work of the Northern Ireland 
Task Force set up by the Commission President after his visit to Belfast in may 2007 (1). 
The purpose of the task force is to support the peace and reconciliation process follow-
ing the re-establishment of a devolved administration in Northern Ireland in may 2007 
based on power-sharing. A further aim of the task force is to support Northern Ireland 
in its efforts to modernise its economy and to generate more growth and jobs in line 
with the Lisbon strategy.

On 3 November the Commission launched an online public consultation on the future 
strategy for the Baltic Sea region. The main aims of the strategy are to improve the en-
vironmental state of the Baltic Sea, to support balanced economic development in the 
region, and to make it more accessible and secure (2).

Social dimension

Renewed social agenda

On 2 July, following a public consultation launched in 2007 to take stock of Europe’s 
changing social reality, the Commission presented a renewed social agenda (3) showing 
how the goals of opportunities, access and solidarity (outlined in a communication of 
November 2007 (4)) are to be translated into concrete actions. It is an integrated policy 
response, complementing the Lisbon strategy and demonstrating a commitment to 
delivering results for citizens. This agenda, including its actions and instruments, will be 
reviewed together with the Lisbon strategy for the post-2010 period.

Employment

From a general viewpoint, the joint employment report 2007/08, which assesses the 
progress made and still to be achieved in meeting the objectives of the Lisbon strategy, 
was adopted by the Council on 29 February. The report analyses the employment policy 
dimension of the national reform programmes, addressing the following: progress in 
achieving the objectives of the European employment strategy, implementation of the 
priorities for action, and giving priority to action for more and better jobs.

(1) 
(2) 
(3) 
(4) 

 COm(2008) 186.
 IP/08/1619.
 COm(2008) 412.
 COm(2007) 726 (OJ C 55, 28.2.2008).

CONSOLIdATING ECONOmIC ANd SOCIAL COhESION 

97

On 14 may the Council adopted its recommendation on the implementation of member 
States’ employment policies (1). On 15 July it adopted a decision (2) on guidelines for the 
employment policies of the member States. The employment guidelines form part of 
the integrated guidelines for 2008–10, which are based on three pillars: macroeconomic 
policies, microeconomic reforms and employment policies.

On 15 October the European Union leaders met employers’ and workers’ representatives 
to discuss the impact of the financial crisis on the ‘real economy’, particularly on growth 
and jobs. The agenda for this tripartite social summit also included the implications of 
climate change and energy policy on employment and social cohesion, including the 
prospects for ‘green jobs’.

On 18 November the Commission adopted a communication listing the key messages 
and strategic implications of the 20th annual Employment in Europe report for 2008 (3). 
The report addresses topics of special importance for the Commission’s current employ-
ment priorities (arrival on the EU job market of immigrants from non-member countries, 
intra-Community mobility, quality of employment in the European Union and the rela-
tionship between education/training and employment). Overall, the report’s findings 
support the main thrust of the European Union’s principal policy initiatives in the field 
of employment under the renewed Lisbon strategy.

with regard to labour market needs, the European Council called on the Commission 
‘to present a comprehensive assessment of the future skills requirements in Europe up 
to 2020, taking account of the impacts of technological change and ageing popula-
tions and to propose steps to anticipate future needs’. In response, on 16 december the 
Commission presented a communication (4) on a better match between the demand for 
and supply of jobs and more effective ways of analysing and predicting which skills will 
be needed in tomorrow’s labour market. On 9 June the Council adopted conclusions on 
‘Anticipating and matching labour market needs’.

On 2 July, in the context of the renewed social agenda, the Commission presented a 
report on the European Globalisation Adjustment Fund (5), analysing the first year of its 
existence and suggesting immediate and longer-term ways to improve its performance. 
On 16 december it adopted a proposal for a regulation (6) on improving the EGF in order 
to help people made redundant as a result of the economic crisis.

(1) 
(2) 
(3) 
(4) 

(5) 
(6) 

 OJ L 139, 29.5.2008.
 decision 2008/618/EC (OJ L 198, 26.7.2008).
 COm(2008) 758.
 COm(2008) 868. See Chapter II, Section 1, ‘The Lisbon strategy: a partnership for growth and jobs’, of this 
Report.
 COm(2008) 421.
 COm(2008) 867. See Chapter II, Section 1, ‘The Lisbon strategy: a partnership for growth and jobs’, of this 
Report.

98 

SOLIdARITY

Also in 2008 the European Parliament and the Council decided to deploy the fund by 
mobilising:

 •

 •

 •

a sum of EUR 3.1 million following redundancies in the textile sector in malta and in 
the automobile sector in Portugal resulting from the closure of production activities 
(10 April) (1);
a sum of EUR 10.7 million following redundancies in the textile sector in Lithuania 
and in the automobile sector and its suppliers in Portugal (22 October) (2);
a sum of EUR 35.2 million following redundancies in the textile sector in Italy 
(19 November) (3).

Social protection and inclusion

On 29 February the Council adopted the joint report on social protection and social 
inclusion 2008 (4), dealing with social inclusion, pensions, healthcare and long-term 
care policies. The report addresses the interaction in these domains between the open 
method of coordination (OmC) and the Lisbon strategy for growth and employment, 
and outlines some of the pathways for the future development of the OmC. The report 
is accompanied by a document describing in more detail the progress made and the 
challenges to be met in the areas selected for OmC work in 2007, such as child poverty, 
working longer, persistent health inequalities and long-term care. It also analyses how 
the member States finance social protection and how the social dimension has been inte-
grated into the national operational programmes of the Structural Funds for 2007–13.

In the context of the renewed social agenda, on 2 July the Commission also adopted a 
communication on ‘Reinforcing the open method of coordination for social protection 
and social inclusion’ (5).

more specifically, the situation of persons with disabilities was the subject of a Council 
resolution on 17 march (6). According to the Council, the EU disability strategy empha-
sises the importance of equal access to inclusive, quality education and lifelong learning, 
which are crucial for enabling persons with disabilities to participate fully in society and 
improve their quality of life.

On 22 April the European Parliament adopted a declaration on ending street home-
lessness and called on the Council to agree on an EU-wide commitment to end street 
homelessness by 2015.

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

 decision 2008/370/EC (OJ L 128, 16.5.2008).
 decision 2008/818/EC (OJ L 285, 29.10.2008).
 decision 2008/916/EC (OJ L 330, 9.12.2008).
 COm(2008) 42 (OJ C 118, 15.5.2008).
 COm(2008) 418.
 OJ C 75, 26.3.2008.

CONSOLIdATING ECONOmIC ANd SOCIAL COhESION 

99

On 3 October the Commission adopted a communication concerning a recommendation 
on the active inclusion of those excluded from the labour market (1), aimed at supporting 
member States in their efforts to fight poverty and exclusion. Those furthest from the job 
market need to be supported with sufficient resources and personalised employment 
and social services to ensure their participation in society and their capacity to hold a 
job. An exploratory opinion of the European Economic and Social Committee, ‘how can 
social experimentation be used in Europe to develop public active inclusion policies?’, 
was also adopted on 22 October.

On 9 October the European Parliament adopted a resolution on promoting social in-
clusion and combating poverty, including child poverty, in the EU. It adopted another 
resolution on 20 November on the future of social security systems and pensions, their 
financing and the trend towards individualisation.

On 17 december the Council adopted conclusions on common active inclusion prin-
ciples to combat poverty more effectively. The conclusions chiefly concern individuals 
excluded from the job market for a variety of reasons: lack of skills, qualifications and/
or the necessary ability to find and keep a job.

Mobility of workers and free movement of knowledge

The spring European Council considered that, in order to become a truly modern and 
competitive economy, the member States and the EU must remove barriers to the free 
movement of knowledge by creating a ‘fifth freedom’.

To this end the Commission confirmed in the renewed social agenda that it was continu-
ing to develop a ‘fifth freedom’ by removing barriers to the free movement of knowledge 
and facilitating the mobility of specific groups such as researchers (2), young entrepre-
neurs, young people and volunteers (3) (particularly through the Ljubljana process, 
launched on 15 April, which is aimed at creating a genuine European research area).

As regards the mobility of workers, on 18 October the Commission adopted a com-
munication concluding that the overall impact of mobility after the enlargement of the 
European Union in 2004 and 2007 had been positive (4). The communication aims to 
provide member States with the necessary information for reviewing their positions for 
the second period of the provisions on the free movement of persons.

(1) 
(2) 

(3) 
(4) 

 COm(2008) 639.
 COm(2008) 317(OJ C 10, 15.1.2009). See ‘Creating the European research area’ in Chapter II, Section 2, 
‘Research’, of this Report.
 COm(2008) 424. See Chapter III, Section 3, ‘Youth, active citizenship and sport’, of this Report. 
 COm(2008) 765.

100 

SOLIdARITY

Working conditions, including health and safety at the workplace

The Community strategy 2007–12 on health and safety at work (1) was the subject of a 
European Parliament resolution on 15 January and of a European Economic and Social 
Committee opinion on 29 may (2). Parliament and the Committee welcomed the objec-
tive of reducing accidents at work by 25 %, but felt that there should be a similar target 
for reducing occupational diseases.

As part of this strategy, on 6 November the Commission adopted a communication (3) on 
the practical implementation of the health and safety at work directives (on temporary 
and mobile construction sites (4) and on safety signs at work (5)).

On 23 April the European Parliament and the Council adopted a directive on the mini-
mum health and safety requirements regarding the exposure of workers to the risks 
arising from physical agents (electromagnetic fields) (6). The directive postpones to 
30 April 2012 the deadline for transposition of directive 2004/40/EC (7) so as to enable 
new scientific studies on the impact on health of exposure to electromagnetic radiation 
to be taken into account.

Concerning the posting of workers, on 3 April the Commission adopted a recommenda-
tion on enhanced administrative cooperation between the member States in protect-
ing the rights of posted workers (8). The Council endorsed this recommendation on  
9 June. The Commission then organised a forum on 9 October on the rights of employees 
and economic freedoms to discuss the implications of the judgments of the Court of 
Justice of the European Communities on the posting of workers (Laval, Viking, Rüffert 
and Commission v Luxembourg judgments). On 22 October the European Parliament 
adopted a resolution analysing the implications of these judgments.

In other areas, on 2 July the Commission adopted a proposal for a directive (9) aimed at 
improving the role of European works councils in informing and consulting employees. 
The proposal is also intended to increase legal certainty and ensure that the legislative 
instruments on the subject are better linked.

On 22 October the Commission adopted a decision (10) to rationalise the work of the 
Committee of Senior Labour Inspectors.

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 
(10) 

 COm(2007) 62 (OJ C 138, 22.6.2007).
 OJ C 224, 30.8.2008.
 COm(2008) 698.
 directive 92/57/EEC (OJ L 245, 26.8.1992).
 directive 92/58/EEC (OJ L 245, 26.8.1992).
 directive 2008/46/EC (OJ L 114, 26.4.2008).
 OJ L 159, 30.4.2004.
 OJ C 85, 4.4.2008 and OJ C 89, 10.4.2008.
 COm(2008) 419. 
 decision 2008/823/EC (OJ L 288, 30.10.2008).

CONSOLIdATING ECONOmIC ANd SOCIAL COhESION 

101

The same day the European Parliament and the Council adopted a directive (1) providing 
a minimum degree of protection for employees in the event of the insolvency of their 
employer, in particular in order to guarantee payment of their outstanding claims.

The June European Council called on the Council and the European Parliament to reach a 
balanced final agreement before the end of the current legislative period on the directive 
concerning certain aspects of the organisation of working time (2) and the directive on 
working conditions for temporary workers. On 19 November the European Parliament 
and the Council adopted a directive on temporary agency work (3). The directive applies 
the principle of equal treatment to temporary agency workers and recognises temporary 
work agencies as employers. It does not affect the autonomy of the social partners, pro-
viding for possible exemptions from the rules applicable in the user undertaking through 
collective agreements or after consulting the social partners at national level, provided 
that the overall level of protection for temporary agency workers is respected.

In addition, on 9 October the European Parliament adopted a resolution on combating 
undeclared work.

On 17 december the Council a reached political agreement on a draft directive aimed 
at improving maritime labour conditions (4). The main purpose of the directive is to 
incorporate into Community law the provisions of the maritime Labour Convention of 
2006 (adopted by the International Labour Organisation) (5).

Equal treatment in employment

On 19 June the Commission adopted a communication (6) on the application of the 
directive establishing a general framework for equal treatment in employment and oc-
cupation (7), recognising that legislation alone is not enough to prevent discrimination 
and promote equality. Proper application of and compliance with the legislation, com-
bined with complementary measures at national and Community levels, were the key 
to reducing discrimination.

General aspects of non-discrimination outside the employment domain are discussed 
in ‘Protecting fundamental rights and combating discrimination’ in Section 3 of this 
chapter (see below).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 

 directive 2008/94/EC (OJ L 283, 28.10.2008).
 COm(2004) 607.
 directive 2008/104/EC (OJ L 327, 5.12.2008). 
 COm(2008) 422. 
 directive 1999/63/EC (OJ L 167, 2.7.1999).
 COm(2008) 225.
 directive 2000/78/EC (OJ L 303, 2.12.2000).

102 

SOLIdARITY

Equality between women and men

On 23 January the Commission adopted its annual report on equality between women 
and men (1). The report demonstrates that, where the objective of boosting female em-
ployment in terms of both quantity and quality (‘more and better jobs’) is concerned, 
real progress has been made on the quantity side but more efforts are needed to im-
prove the quality aspects. It shows in particular that gender gaps remain substantial 
(especially differences between working arrangements for women and men), labour 
market segregation still exists and is on the rise in certain countries, and the pay gap is 
not diminishing. Similarly, in its final evaluation report of 13 August on the Community 
framework strategy and Community action programme relating to the Community 
strategy on gender equality (2001–06) (2), the Commission noted that, despite a positive 
assessment, numerous challenges still had to be taken up in this area.

The Council meanwhile adopted conclusions on the elimination of gender stereotypes 
in society, pointing out that these are one of the most persistent causes of inequality 
between women and men in all spheres and at all stages of life.

On 3 September the European Parliament adopted a resolution on equality between 
women and men, stressing the importance of combating violence against women. 
Parliament also regretted the lack of real progress in the implementation of the prin-
ciple of equal pay for men and women.

On 18 November it adopted a resolution with recommendations to the Commission on 
the application of the principle of equal pay for men and women. Parliament calls on 
the Commission to submit, before the end of 2009, a legislative proposal for a revision 
of the existing legislation in this field.

On 26 November the Commission adopted a mid-term progress report on the roadmap 
for equality between women and men (2006–10) (3), showing how the action taken since 
march 2006 has helped to achieve the roadmap objectives and outlining the action to 
be taken by 2010.

Reconciling professional, private and family life

On 3 October the Commission put forward a package of measures intended to help 
reconcile professional, private and family life by updating and improving the legislation 
in force (4). It proposes longer and more attractive maternity leave and improvements to 

(1) 
(2) 
(3) 
(4) 

 COm(2008) 10 (OJ C 118, 15.5.2008).
 COm(2008) 503.
 COm(2008) 760.
 directives 86/613/EEC and 92/85/EEC.

CONSOLIdATING ECONOmIC ANd SOCIAL COhESION 

103

the situation of self-employed women by offering them, on a voluntary basis, benefits 
equivalent to maternity leave.

The package includes a proposal on maternity leave (1), and one on women engaged 
in an activity in a self-employed capacity (2). It is accompanied by a communication 
‘A better work–life balance: Stronger support for reconciling professional, private and 
family life’ (3).

In the same context the Commission adopted a report on the implementation of the 
Barcelona objectives concerning childcare facilities for pre-school-age children, an-
nouncing that it will pursue policies promoting the reconciliation of work and family 
life and gender equality (4).

Demographic aspects

On 21 February the European Parliament adopted a resolution on the demographic 
future of Europe, pointing out that the two major causes of demographic change — low 
fertility and extended life expectancy — are the results of progress. Parliament further 
stressed that the average number of children per woman in the European Union, which 
is abnormally low, might be linked primarily to the difficulty of reconciling professional 
and family life.

On 17 September the European Economic and Social Committee issued an exploratory 
opinion on taking account of the needs of the elderly. In this context it recommended 
the establishment of an expert group on old age, a European alliance for an active life 
in old age and a European centre for age research, and support for a demography fund 
as part of the Structural Funds to deal with demographic change.

On 9 July the European Parliament and the Council adopted a regulation on popula-
tion and housing censuses (5). The aim is to compile a sufficiently detailed picture of 
the structure and characteristics of the population to permit analysis as a basis for the 
planning, administration and monitoring of a number of regional, social, economic or 
environmental policies of the European Union. Statistical data on population are essen-
tial in most of these domains to help formulate clear operational objectives and assess 
the progress made.

(1) 
(2) 
(3) 
(4) 
(5) 

 COm(2008) 637.
 COm(2008) 636.
 COm(2008) 635.
 COm(2008) 638.
 Regulation (EC) No 763/2008 (OJ L 218, 13.8.2008).

104 

SOLIdARITY

General references and other useful links

 •

 •

Structural measures: 
http://ec.europa.eu/regional_policy/funds/prord/sf_en.htm

Social affairs: 
http://ec.europa.eu/social/

Section 2

Solidarity with future generations and  
management of natural resources

Background

Climate change, biodiversity, health and resource use remain the most pressing environmental 
challenges. To face those challenges, the European Union adopted measures to prevent climate 
change having irreversible consequences and to establish a sustainable balance between avail-
able resources and their exploitation. It also launched a common agricultural policy ‘health 
check’, designed to produce legislative proposals to rationalise and adapt the instruments ori-
ginally developed for a Community of six Member States.

Environment

Climate change

Following the commitment made by the march 2007 European Council, on 23 January 
the Commission adopted a package of measures on energy and the climate, with the 
aim of making the European Union a low-emission economy with increased energy 
security. This new package of measures seeks to give the European Union the means 
to reduce greenhouse gas emissions by at least 20 %, increase the share of renewable 
energies in energy consumption to 20 % and increase energy efficiency by the same 
amount by 2020. The reduction in emissions will increase to 30 % by 2020, when a new 
global climate change agreement is reached.

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105

The means to achieve the objectives laid down in 2007 are:

 •

 •

 •

a proposal for a directive updating the Community’s emissions trading scheme 
(ETS) (1); a proposal for a decision establishing a Community framework to ensure 
that national commitments cover emissions not covered by the ETS, taking in sec-
tors of activity such as construction, transport, agriculture and industrial and waste-
treatment plant (2);
a proposal for a directive on the promotion of renewable energy in the European 
Union (3);
a proposal for a directive on the development of low-carbon energy technologies, 
including carbon dioxide capture and sequestration (4).

The package also includes an explanatory communication ‘20 20 by 2020 — Europe’s 
climate change opportunity’ (5) and a communication ‘Supporting early demonstration 
of sustainable power generation from fossil fuels’ (6).

At its spring meeting the European Council reiterated that the European Union is com-
mitted to maintaining international leadership on climate change and energy. It called 
for a coherent legislative package based on the conclusions of the spring 2007 meeting 
to be adopted by the beginning of 2009 at the latest. with a view to achieving these ob-
jectives, in particular with regard to energy efficiency, on 13 November the Commission 
adopted the second strategic energy review (7).

The European Council also expressed the view that a key challenge will be to ensure that 
this transition to a safe and sustainable low-carbon economy is handled in a way that is 
consistent with EU sustainable development, competitiveness, security of supply, food 
security, sound and sustainable public finances, and economic and social cohesion.

The European Council of 15 and 16 October reaffirmed its commitment to achieve ambi-
tious targets in this area.

The European Council of 11 and 12 december reached agreement in principle on the 
energy and climate package and called on the Council to seek agreement with the 
European Parliament to permit an agreement on first reading on the whole of the pack-
age before the end of the year. On 17 december Parliament gave the green light to this 
package, intended to ensure that the European Union achieves its climate targets by 
2020.

(1) 
(2) 
(3) 

(4) 
(5) 
(6) 
(7) 

 COm(2008) 16 (OJ C 118, 15.5.2008).
 COm(2008) 17 (OJ C 118, 15.5.2008).
 COm(2008) 19 (OJ C 118, 15.5.2008). See ‘Energy and sustainable development’ in Chapter II, Section 2, 
‘Energy’, of this Report.
 COm(2008) 18 (OJ C 118, 15.5.2008).
 COm(2008) 30 (OJ C 118, 15.5.2008).
 COm(2008) 13 (OJ C 118, 15.5.2008).
 See ‘Energy and sustainable development’ in Chapter II, Section 2, ‘Energy’, of this Report.

106 

SOLIdARITY

In addition, on 19 November the European Parliament and the Council adopted a dir-
ective to include aviation activities in the scheme for greenhouse gas emission allowance 
trading within the Community (1). The new directive aims to reduce the contribution of 
aviation activities to climate change, in view of the rapid growth the sector is experien-
cing. It caps aircraft operators’ annual emissions at 97 % of historical emissions (based 
on annual average emissions between 2004 and 2006) between 2012 and 2013 and at 
95 % of historical emissions from 2013 onwards. 

On 10 July the European Economic and Social Committee published an exploratory 
opinion on the link between climate change and agriculture at European level, in which 
it stressed the possible contribution from agriculture to saving the climate.

Protection of the ozone layer

On 1 August the Commission adopted a communication ‘Completing the phase-out 
of substances that deplete the ozone layer — Better regulation building on 20 years of 
success’. This was accompanied by a proposal to revise the rules in force in this area (2).

Protection of biodiversity and landscape

In February the Commission adopted the six lists of Natura 2000 protected zones, add-
ing 90 000 km2 and more than 4 000 sites to the area protected by the network. On 
12 december it adopted eight decisions (3) extending the Natura 2000 network by more 
than 95 000 km2 and adding 769 new sites. Natura 2000 now covers around 700 000 km2 
and 25 000 sites, making it the world’s largest interconnected network of protected 
sites.

In its conclusions of 3 march, in preparation for the ninth meeting of the Conference 
of the Parties to the Convention on Biological diversity, the Council reaffirmed that the 
European Union is determined to halt the loss of biodiversity on a global level by 2010. 
It underlined the importance of the enhanced implementation of the convention’s and 
the Natura 2000 network’s programmes of work on protected areas.

At the ninth meeting of the Conference of the Parties to the Convention on Biological 
diversity (4) held in Bonn (Germany) from 19 to 30 may, 191 countries agreed to take 
far-reaching action in order to address the unprecedented loss of global biodiversity. 
A progress report on ‘The economics of ecosystems and biodiversity’ was presented at 
the meeting.

(1) 
(2) 
(3) 

(4) 

 directive 2008/101/EC (OJ L 8, 13.1.2009).
 COm(2008) 505.
 C(2008) 7918, C(2008) 7973, C(2008) 7974, C(2008) 8039, C(2008) 8046, C(2008) 8049, C(2008) 8066 and 
C(2008) 8119.
 IP/08/830.

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107

with regard to the protection of coastal waters and areas, on 17 June the European 
Parliament and the Council adopted the marine strategy directive (1) establishing a 
framework for Community action to ensure the protection and conservation of the  
marine environment. Each member State must draw up and implement a strategy for its 
marine waters to achieve or maintain ‘good environmental status’ in the marine environ-
ment by 2020 at the latest.

In order to combat the pollution of surface waters by dangerous substances, on 
16 december the European Parliament and the Council adopted a directive on en-
vironmental quality standards for surface waters in the European Union (2), under the 
framework directive on water. The directive fixes limit values for more than 30 pollutants, 
including pesticides, heavy metals and biocides.

On the matter of combating illegal logging, on 3 September the Commission signed 
the first voluntary partnership agreement with Ghana on forest law enforcement, 
governance and trade (FLEGT). Similar agreements are currently being negotiated with 
Cameroon, Congo, Indonesia and malaysia. These agreements provide assurance that 
forest products imported into the EU are verified to be legal. In addition, the Commission 
and China have established a bilateral coordination mechanism in order to intensify 
efforts to combat illegal logging and the associated trade.

On 17 October the Commission adopted a communication ‘Addressing the challenges of 
deforestation and forest degradation to tackle climate change and biodiversity loss’ (3), 
setting out its proposals for combating tropical deforestation. with a view to the inter-
national negotiations on the post-2012 climate change agreement, the Commission 
proposes to pursue the objective of halting global forest cover loss by 2030 at the latest 
and reducing gross tropical deforestation by at least 50 % by 2020. On the same day, 
the Commission also adopted a proposal for legislation to reduce the risk of illegally 
harvested timber and timber products entering the Community market (4). The proposed 
regulation obliges traders to provide adequate guarantees that the wood they market 
is legal.

On 3 december the Commission also adopted a communication on the EU strategy on 
invasive species (5) and on 16 december a communication ‘A mid-term assessment of 
implementing the EC biodiversity action plan’ (6).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

 directive 2008/56/EC (OJ L 164, 25.6.2008).
 directive 2008/105/EC (OJ L 348, 24.12.2008).
 COm(2008) 645.
 COm(2008) 644.
 COm(2008) 789.
 COm(2008) 864.

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SOLIdARITY

Sustainable use of resources

On 19 November the framework directive on waste (1) was approved by the European 
Parliament and the Council, introducing a new approach to waste management and 
prioritising the prevention, reuse and recycling of waste. The directive also clarifies a 
number of important definitions (for instance, it distinguishes between waste and by-
products) and sets the member States ambitious recycling targets. It provides for na-
tional waste prevention programmes and Commission monitoring of these decoupling 
objectives.

On the same day the Commission adopted a communication ‘An EU strategy for bet-
ter ship dismantling’ (2). This includes actions to help implement an international ship 
recycling convention due to be adopted in may 2009. It also provides for measures to 
encourage voluntary action by the maritime transport sector and improved implemen-
tation of existing Community legislation on waste shipments.

On 3 december the Commission adopted a Green Paper describing the current situ-
ation as regards the management of bio-waste in the European Union and proposing 
options for the future (3). The purpose of the Green Paper is to launch a discussion with 
a view to possibly drawing up legislation and to help the Commission assess whether 
the European Union should propose further action.

On the same day the Commission also presented a proposal (4) to amend the directive 
on reducing the environmental impact of waste electrical and electronic equipment 
(the wEEE directive) (5) and a proposal (6) to amend the directive on the restriction of 
the use of certain hazardous substances in electrical and electronic equipment (the 
RohS directive) (7).

Environment and health

The air quality directive (8) was adopted by the European Parliament and the Council on 
21 may. It sets standards and deadlines for the reduction of concentrations of fine par-
ticulate matter, which together with larger particulate matter known as Pm10 — which is 
already regulated — is among the most dangerous pollutants for human health. Also in 

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 

 directive 2008/98/EC (OJ L 312, 22.11.2008).
 COm(2008) 767.
 COm(2008) 811.
 COm(2008) 810.
 directive 2002/96/EC (OJ L 37, 13.2.2003).
 COm(2008) 809.
 directive 2002/95/EC (OJ L 37, 13.2.2003).
 directive 2008/50/EC (OJ L 152, 11.6.2008).

SOLIdARITY wITh FUTURE GENERATIONS ANd mANAGEmENT OF NATURAL RESOURCES  

109

the field of air quality, on 4 december the Commission adopted a proposal for a directive 
obliging service stations to install equipment for Stage II petrol vapour recovery (1).

As regards chemical substances, on 17 June the European Parliament and the Council 
adopted a regulation that lays down conditions for the export and import of certain 
dangerous chemicals to and from the European Union in order better to protect human 
health and the environment at international level (2).

On 22 October they also adopted a regulation on the banning of exports and the safe 
storage of metallic mercury (3).

Environmental instruments

In order to maintain and improve the quality and availability of the information required 
by environmental policy, on 1 February the Commission adopted a communication 
‘Towards a shared environmental information system (SEIS)’ (4). It proposes to mod-
ernise and simplify the Community system for the collection, analysis and exchange 
of environmental information and provides for the gradual replacement of the cur-
rent, mostly centralised, systems for reporting by systems based on access, sharing and 
interoperability.

On 2 July the Commission adopted the fifth environment policy review, which reports 
on the main developments in EU environment policy during 2007 in the four main policy 
areas of the sixth environment action programme 2002–12 (5).

Under the sustainable consumption and production and sustainable industrial policy 
action plan (6), on 16 July the Commission presented a range of measures to improve the 
energy and environmental performance of products and undertakings and to promote 
sustainable consumption and production. In addition to the proposal to extend the 
directive on ecodesign (7), the action plan contains:

 •

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

(7) 

(8) 

8), which indi-
a proposal to revise the regulation on a Community eco-label scheme (
cates the most environment-friendly products on the Community market (extending 
the scheme to a larger number of products and services and simplifying procedures 
to make it more attractive to manufacturers);

 COm(2008) 812.
 Regulation (EC) No 689/2008 (OJ L 204, 31.7.2008).
 Regulation (EC) No 1102/2008 (OJ L 304, 14.11.2008).
 COm(2008) 46 (OJ C 118, 15.5.2008).
 COm(2008) 409.
 COm(2008) 397. See ‘Small and medium-sized enterprises’ in Chapter II, Section 2, ‘Innovation and enter-
prise policy’, of this Report.
 COm(2008) 399. See ‘Industrial policy’ in Chapter II, Section 2, ‘Innovation and enterprise policy’, of this 
Report.
 COm(2008) 401.

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 •

 •

SOLIdARITY

a proposal to revise the regulation on the voluntary European Union eco-manage-
ment and audit scheme (EmAS) (1), in order to encourage businesses, and more par-
ticularly SmEs, to apply it (by reducing the administrative burden, providing incen-
tives and opening up the scheme to organisations outside the Union); and
a communication on green public procurement that provides political and oper-
ational support to allow public authorities in the EU to use GPP to stimulate innova-
tion in environmental technologies, products and services (2).

On 19 November the European Parliament and the Council adopted a directive on the 
protection of the environment through criminal law. The directive obliges member States 
to provide for effective, proportionate and dissuasive criminal penalties under national 
law for serious infringements of Community environmental protection law (3).

On 27 October the Commission approved funding of EUR 186 million for 143 new projects 
under the financial instrument for the environment (LIFE+) for the period 2007–13. The 
projects cover action in the fields of nature conservation, environmental policy, and 
information and communication.

International conventions and agreements

On 31 January the European Parliament adopted a position on the outcome of the Bali 
Conference on Climate Change, held from 3 to 14 december 2007. It welcomed the 
decision to launch formal negotiations for an international climate agreement for the 
post-2012 period under the UN Framework Convention on Climate Change. Parliament 
urged the Union to continue to play an active role in the forthcoming negotiations.

On 16 October the Commission adopted a report on progress towards achieving the 
kyoto objectives (4). The report concludes that the Community will achieve its kyoto 
objectives by implementing the planned policies and additional measures.

The United Nations Climate Change Conference was held in Poznań from 1 to 
12 december, bringing together the more than 190 countries that are signatories to 
the United Nations Framework Convention and the kyoto Protocol. The conference laid 
the necessary basis for the final year of negotiations that should result in december 
2009 in a new international climate agreement, i.e. a work programme to carry forward 
the negotiations towards an agreement, a detailed examination of the kyoto Protocol 
and an agreement on the operationalisation of the adaptation fund and new decisions 
on tackling deforestation.

(1) 
(2) 
(3) 
(4) 

 COm(2008) 402.
 COm(2008) 400.
 directive 2008/99/EC (OJ L 328, 6.12.2008).
 COm(2008) 651.

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111

Agriculture and rural development

Content of the common agricultural policy

In the area of agricultural support schemes, on 14 February the Council adopted a regu-
lation (1) simplifying the cross-compliance provisions introduced by the regulation on 
direct support schemes under the common agricultural policy (CAP) (2).

In accordance with the objective of improving the operation of the common agricultural 
policy in the light of experience since 2003, presented in its communication ‘Preparing for 
the “health check” of the CAP reform’ (3) in November 2007, on 20 may the Commission 
adopted the following proposals (4):

 •

 •

 •

 •

a proposal for a regulation establishing common rules for direct support schemes 
for farmers under the common agricultural policy and establishing certain support 
schemes for farmers;
a proposal for a regulation on modifications to the common agricultural policy by 
amending Regulations (EC) Nos 320/2006, 1234/2007, 3/2008 and 479/2008;
a proposal for a regulation amending Regulation (EC) No 1698/2005 on support for ru-
ral development by the European Agricultural Fund for Rural development (EAFRd);
a proposal for a decision amending decision 2006/144/EC on the Community stra-
tegic guidelines for rural development (programming period 2007–13).

Several of these measures, in particular the removal of the set-aside requirement and the 
gradual increase in milk quotas with a view to their abolition in 2015, should help relieve 
the pressure on agricultural markets. At the same time, the environmental significance 
of set-aside is recognised and reinforced by the principle of cross-compliance and the 
existence of the fund for rural development, with a view to better protection for the 
environment, as set out in the health check.

On 18 November the Council reached a political agreement on the CAP health check. 
The health check will modernise, simplify and streamline the CAP and remove restric-
tions on farmers, thus helping them to respond better to signals from the market and 
to face new challenges.

The CAP health check was also the subject of a resolution adopted by the European 
Parliament on 12 march and of the Council conclusions of 17 march. The two institutions 
stressed the need to intensify the administrative simplification of the CAP. On 5 June the 

(1) 
(2) 
(3) 
(4) 

 Regulation (EC) No 146/2008 (OJ L 46, 21.2.2008).
 Regulation (EC) No 1782/2003 (OJ L 270, 21.10.2003).
 COm(2007) 722 (OJ C 106, 26.4.2008).
 COm(2008) 306 (OJ C 10, 15.1.2009).

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SOLIdARITY

European Parliament also adopted a resolution on the future for young farmers in the 
light of the current reform of the CAP.

For its part, on 22 October the European Economic and Social Committee adopted an 
exploratory opinion ‘The EU facing the world food challenge’, in which it stressed the 
need to assess the long-term objectives of the CAP.

On more specific matters, on 23 June the Council adopted a regulation establishing na-
tional restructuring programmes for the cotton sector (1). This reform of the Community 
support scheme for cotton ‘decouples’ 65 % of the aid, while maintaining 35 % linked to 
cotton production, in the form of area payments. National restructuring programmes 
are created to facilitate restructuring in the cotton ginning industry and to enhance the 
quality and marketing of the cotton produced.

On the same day the Council adopted a regulation providing for two support schemes 
for the smaller Aegean islands (the specific supply arrangements and aid for local agri-
cultural products) (2).

In the area of support schemes for farmers, on 9 October the Council adopted a regula-
tion laying down the eligibility conditions for payment of the bovine premium (3).

In addition, the Commission presented financial reports on the European Agricultural 
Guarantee Fund (EAGF) (4) (26 September) and on the European Agricultural Fund for 
Rural development (EAFRd) (5) (30 September) for the 2007 financial year.

The member States set up a website containing information on payments to beneficiaries 
from the EAGF and the EAFRd (6).

Rural development

On 15 July the Council amended (7) the decision laying down the amount of Community 
support for rural development for the period from 1 January 2007 to 31 december 2013, 
its annual breakdown and the minimum amount to be concentrated in regions eligible 
under the convergence objective (8). with this amendment, the allocations which were 
not used in 2007 are reallocated to the period from 1 January 2008 to 31 december 
2013.

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 

 Regulation (EC) No 637/2008 (OJ L 178, 5.7.2008).
 Regulation (EC) No 615/2008 (OJ L 168, 28.6.2008).
 Regulation (EC) No 1009/2008 (OJ L 276, 17.10.2008).
 COm(2008) 587.
 COm(2008) 589.
 See ‘Transparency in financial matters’ in Chapter I, Section 1, ‘Transparency’, of this Report.
 decision 2008/584/EC (OJ L 188, 16.7.2008).
 decision 2006/493/EC (OJ L 195, 15.7.2006).

SOLIdARITY wITh FUTURE GENERATIONS ANd mANAGEmENT OF NATURAL RESOURCES  

113

On 17 October the Commission launched the European network for rural develop-
ment (1). The network, bringing together policymakers, administrators, academics and 
other key actors in the area of rural development from across the European Union, will 
make it easier for them to share ideas, information and experience, so the European 
Union’s rural development policy can continue to respond to the demands of the 21st 
century.

Product quality

On 29 September the Council amended (2) the regulation on organic production and 
labelling of organic products (3), which will apply from 1 January 2009. The amendment 
postpones until 1 July 2010 the compulsory use of the Community logo on pre-packaged 
food.

On 15 October the Commission adopted a Green Paper ‘Agricultural product quality: 
Product standards, farming requirements and quality schemes’ (4). The Green Paper 
launches a public consultation on the development of agricultural product quality policy. 
It looks at the range of standards, quality and certification programmes and labelling 
schemes currently operating in the European Union. It also examines what could be 
done better to exploit the strengths of EU farming and better to inform consumers 
about the products on offer.

Agricultural prices and related measures

On 20 may the Commission adopted the communication ‘Tackling the challenge of ris-
ing food prices — directions for EU action’ (5). This communication examines the various 
temporary and structural factors underpinning the recent surge in food prices, looks 
at expected future price trends and provides an overview of impacts at country and 
household levels, both within the EU and worldwide. It sets out proposals for action 
by the European Union to deal with the increase in food prices. These pursue three 
complementary lines of intervention: actions to mitigate the short- and medium-term 
effects of the food price shock, actions to increase agricultural supply and ensure food 
security in the longer term and actions to contribute to the global effort to tackle the 
effects of the price rises on poor populations.

In its resolution of 22 may on rising food prices the European Parliament stressed the 
fundamental nature of the right to food and the need to improve access for all people 
at all times to enough food for an active, healthy life.

(1) 
(2) 
(3) 
(4) 
(5) 

 IP/08/1525.
 Regulation (EC) No 967/2008 (OJ L 264, 3.10.2008).
 Regulation (EC) No 834/2007 (OJ L 189, 20.7.2007).
 COm(2008) 641.
 COm(2008) 321 (OJ C 10, 15.1.2009).

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SOLIdARITY

Accordingly, on 18 July the Commission proposed the creation of a special financial 
instrument with a budget of EUR 1 billion to aid farmers in the developing countries (1). 
The European Parliament and the Council adopted the proposal on 16 december (2).

On 17 September the Commission adopted a proposal revising the Community food 
aid programme for the most deprived persons in the Community (3). The Commission 
suggests simplifying administrative procedures for the scheme and improving 
governance.

Further to its communication of 20 may and in response to a request from the June 
European Council for the Commission to examine the reasons for the increase in food 
prices, the Commission adopted a communication on 9 december (4). It looks at food 
prices in Europe and sets out a roadmap to improve the functioning of the food supply 
chain.

Single common market organisation

A number of proposals amending and simplifying the legislation in force were adop-
ted into law in 2008 concerning spirit drinks, milk, flax and hemp, wine, tobacco and 
cotton.

Concerning spirit drinks, on 15 January the European Parliament and the Council adop-
ted a regulation (5) on the definition, description, presentation, labelling and protection 
of geographical indications of spirit drinks, and repealing the existing regulation (6). The 
new regulation should help producers to market their products while providing greater 
clarity for consumers.

with regard to milk and milk products, on 17 march the Council adopted a regulation 
increasing EU milk production by 2 % from 1 April (7). In addition, on 17 October the 
Commission launched the Community school milk campaign, to promote good eating 
habits.

In the flax and hemp sector, on 17 march the Council adopted a regulation extending 
the current aid scheme for a further marketing year (8).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 

 COm(2008) 450. See ‘General’ in Chapter V, Section 3, ‘development policy’, of this Report.
 Regulation (EC) No 1337/2008 (OJ L 354, 31.12.2008).
 COm(2008) 563.
 COm(2008) 821.
 Regulation (EC) No 110/2008 (OJ L 39, 13.2.2008).
 Regulation (EEC) No 1576/89 (OJ L 160, 12.6.1989).
 Regulation (EC) No 248/2008 (OJ L 76, 19.3.2008).
 Regulation (EC) No 247/2008 (OJ L 76, 19.3.2008).

SOLIdARITY wITh FUTURE GENERATIONS ANd mANAGEmENT OF NATURAL RESOURCES  

115

As regards wine, on 29 April the Council adopted a regulation reforming the Community 
common organisation of the market in wine (1). This wine reform should boost the com-
petitiveness of European wines.

In the tobacco sector, on 26 may the Council adopted a regulation amending the legisla-
tion in force in order to transfer an amount equal to 5 % of tobacco aid granted for the 
years 2008 and 2009 to the Community tobacco fund (2).

In accordance with the approach employed when adopting the regulation on the sin-
gle common market organisation (CmO) in October 2007 (3), which aims to rationalise 
and simplify the legal framework of the CAP without amending the policies concerned 
(replacing 21 common market organisations by a single CmO), on 14 April the Council 
adopted an amending regulation (4). This incorporates into the single CmO the provisions 
adopted for sugar, seeds, milk and milk products and beef and veal and amendments 
to the rules on fruit and vegetables.

Following the reform of the Community wine sector, which was completed with the pub-
lication of the regulation of 29 April (see above), on 29 July the Commission proposed an 
amendment to the single CmO to incorporate the amendments made in that sector (5). 
In addition, on 26 September the Commission adopted a recommendation with a view 
to opening negotiations with the International Organisation of Vine and wine on the 
possible accession of the Community (6).

The Commission also adopted the following proposals concerning poultrymeat, flax and 
hemp, fruit and vegetables and dried fodder.

 •

 •

 •

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 

On 28 may it adopted a proposal for a regulation amending Regulation (EC) 
No 1234/2007 establishing a common organisation of agricultural markets as regards 
the marketing standards for poultrymeat (7).
8), which assesses the 
On 20 may it adopted a report on the flax and hemp sector (
impact of processing aid on producers, the processing industry and the market for 
textile fibre.
On 8 July the Commission proposed a regulation establishing a policy and funding 
framework for member State initiatives aimed at durably increasing the share of fruit 
and vegetables in the diets of children, at the stage when their eating habits are 
formed (9). The proposed programme comprises measures such as the free distribu-

 Regulation (EC) No 479/2008 (OJ L 148, 6.6.2008).
 Regulation (EC) No 470/2008 (OJ L 140, 30.5.2008).
 Regulation (EC) No 1234/2007 (OJ L 299, 16.11.2007).
 Regulation (EC) No 361/2008 (OJ L 121, 7.5.2008).
 COm(2008) 489.
 COm(2008) 577.
 COm(2008) 336 (OJ C 10, 15.1.2009).
 COm(2008) 307 (OJ C 10, 15.1.2009).
 COm(2008) 442.

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 •

 •

SOLIdARITY

tion of fruit and vegetables in schools and the promotion of agricultural products. 
The Council adopted the regulation on 18 december (1).
2), 
On 19 September the Commission presented a report on the dried fodder sector (
dealing, in particular, with the development of areas of leguminous and other green 
fodder, the production of dried fodder and the achieved savings of fossil fuels.
On 12 November it proposed to repeal the marketing standards applicable to  
26 types of fruit and vegetables. however, marketing standards will be maintained for 
10 types of fruit and vegetables. The amendments will apply from 1 July 2009 (3).

Fisheries and maritime affairs

Content of the common fisheries policy

On 30 may the Commission published its annual policy statement on fishing opportun-
ities for 2009, outlining the approach it intends to take when setting total allowable 
catches (TACs) and fishing effort limitations for 2009 (4). The Commission proposes great-
er flexibility in changing TACs from year to year to ensure that stock recovery measures 
are more effective and that fishermen have greater fishing opportunities when stocks 
recover.

On 11 April the Commission also adopted a communication on the role of the com-
mon fisheries policy (CFP) in implementing an ecosystem approach to marine manage-
ment (5). The aim of this approach to fisheries management is to limit the direct and 
indirect impact of fisheries on marine ecosystems and ensure that measures adopted 
in the fisheries sector are in accordance with measures adopted under the intersectoral 
instruments constituted by the marine strategy (6) and the habitats directive (7).

with regard to the prevention of illegal, unreported and unregulated fishing, on 23 June 
the Council adopted a Commission recommendation on negotiations for the elaboration 
of an international legally binding instrument on port state measures to prevent, deter 
and eliminate such practices (8).

On 29 September the Council adopted a regulation establishing a Community system to 
prevent, deter and eliminate illegal, unreported and unregulated fishing (9). This regula-

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 

 Regulation (EC) No 13/2009 (OJ L 5, 9.1.2009).
 COm(2008) 570.
 IP/08/1694.
 COm(2008) 331 (OJ C 10, 15.1.2009).
 COm(2008) 187 (OJ C 202, 8.8.2008).
 COm(2005) 505 (OJ C 49, 28.2.2006).
 directive 92/43/EEC (OJ L 206, 22.7.1992).
 COm(2008) 333 (OJ C 10, 15.1.2009).
 Regulation (EC) No 1005/2008 (OJ L 286, 29.10.2008).

SOLIdARITY wITh FUTURE GENERATIONS ANd mANAGEmENT OF NATURAL RESOURCES  

117

tion aims to ensure the viability of fish stocks and improve the situation of Community 
fishermen facing unfair competition from illegal products, but also to respond to con-
sumer demand for products fished in a fair and sustainable manner.

On the same day, the Council adopted a regulation updating the system of authorisa-
tions for fishing activities of Community fishing vessels outside Community waters and 
of third-country vessels in Community waters (1). The new system is intended to better 
align Community authorisation procedures with international obligations deriving from 
bilateral and multilateral fisheries agreements and conventions adopted in the frame-
work of regional fisheries management organisations.

On 14 November the Commission proposed a comprehensive reform of the control 
system underlying the CFP. It adopted a communication (2) together with a proposal 
for a regulation (3) establishing a Community system for inspection, monitoring, control, 
surveillance and enforcement with a global and integrated approach so as to ensure 
compliance with all rules of the CFP in order to provide for the sustainable exploitation 
of living aquatic resources by covering all aspects of the policy.

On 25 February the Council adopted the new Community framework for the collection, 
management and use of data in the fisheries sector and support for scientific advice 
regarding the common fisheries policy (4). This improves the system for the collection of 
data and is intended to cover the whole process from the collection of data at ports or at 
sea to their use by the end-users. In addition, it aims to develop multiannual sampling 
programmes covering, in particular, biological, socioeconomic and ecosystem data.

On 19 June, the European Parliament adopted a resolution on the situation in the fisher-
ies sector caused by rising fuel prices. In order to tackle this, on 8 July the Commission 
presented measures to support the adaptation of the European Union fishing fleets to 
the economic consequences of high fuel prices (5). measures are proposed in the follow-
ing areas: the adaptation of the fleet towards economic and environmental sustainability, 
research into energy efficiency in the fisheries sector, and market measures, including 
measures to increase the first sale value of fish.

For its part, on 24 July the Council adopted a regulation instituting a temporary specific 
action aiming to promote the restructuring of the European Community fishing fleets 
affected by the economic crisis (6). The regulation makes the necessary amendments to 
the rules governing the European Fisheries Fund for a period of two years.

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

 Regulation (EC) No 1006/2008 (OJ L 286, 29.10.2008).
 COm(2008) 718.
 COm(2008) 721.
 Regulation (EC) No 199/2008 (OJ L 60, 5.3.2008).
 COm(2008) 453.
 Regulation (EC) No 744/2008 (OJ L 202, 31.7.2008).

118 

SOLIdARITY

Conservation and management of fishery resources

Numerous proposals were put forward by the Commission and adopted by the Council in 
this field in 2008 with a view to protecting fishery resources. For example, the Commission 
proposed a regulation concerning the conservation of fisheries resources through tech-
nical measures (1) (4 June) and a regulation fixing for 2009 the fishing opportunities for 
certain fish stocks in Community waters and for Community vessels in waters subject 
to catch limitations (2) (7 November).

meanwhile, the Council, on the basis of Commission proposals, adopted a regulation 
fixing for 2008 the fishing opportunities for certain fish stocks (3) (16 January) and a regu-
lation providing for the adaptation of cod fishing quotas to be allocated to Poland in the 
Baltic Sea from 2008 to 2011 (4) (14 April). It also adopted regulations fixing for 2009 fish-
ing opportunities in the Black Sea (5) (10 November) and the Baltic Sea (6) (28 November), 
a regulation fixing for 2009 and 2010 the fishing opportunities for Community fishing 
vessels for certain deep-sea fish stocks (7) (28 November), a regulation amending the 
regulation on the management of fishing fleets registered in the Community’s outermost 
regions (8) (28 November) and a regulation amending the regulation fixing the fishing 
opportunities in the Black Sea for 2008 (9) (4 december). The Council also adopted a 
regulation fixing for the 2009 fishing year the guide prices and Community producer 
prices for certain fishery products (10) (9 december), a regulation establishing a long-term 
plan for cod stocks (11), a regulation establishing a multiannual plan for the stock of her-
ring distributed to the west of Scotland (12) and a regulation amending the plan for the 
recovery of cod stocks (13) (18 december).

On 29 may the Council amended (14) the regulation laying down conservation and en-
forcement measures applicable in the regulatory area of the North-west Atlantic Fisheries 
Organisation (15).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 
(10) 
(11) 
(12) 
(13) 
(14) 
(15) 

 COm(2008) 324 (OJ C 10, 15.1.2009).
 COm(2008) 709.
 Regulation (EC) No 40/2008 (OJ L 19, 23.1.2008).
 Regulation (EC) No 338/2008 (OJ L 107, 17.4.2008).
 Regulation (EC) No 1139/2008 (OJ L 308, 19.11.2008).
 Regulation (EC) No 1322/2008 (OJ L 345, 23.12.2008).
 Regulation (EC) No 1359/2008 (OJ L 352, 31.12.2008).
 Regulation (EC) No 1207/2008 (OJ L 327, 5.12.2008).
 Regulation (EC) No 1257/2008 (OJ L 338, 17.12.2008).
 Regulation (EC) No 1299/2008 (OJ L 344, 20.12.2008).
 Regulation (EC) No 1342/2008 (OJ L 348, 24.12.2008).
 Regulation (EC) No 1300/2008 (OJ L 344, 20.12.2008).
 COm(2008) 162 (OJ C 202, 8.8.2008).
 Regulation (EC) No 538/2008 (OJ L 157, 17.6.2008).
 Regulation (EC) No 1386/2007 (OJ L 318, 5.12.2007).

SOLIdARITY wITh FUTURE GENERATIONS ANd mANAGEmENT OF NATURAL RESOURCES  

119

To promote production in the outermost regions, on 8 July the Council adopted a regula-
tion opening and providing for the administration of autonomous Community tariff quotas 
on imports of certain fishery products into the Canary Islands (1).

Fisheries agreements with non-member countries and multilateral relations

In 2008 fisheries partnership agreements were concluded with Côte d’Ivoire (2) and 
Guinea-Bissau  (3) (17 march).

Maritime policy

On 26 June the Commission adopted a communication ‘Guidelines for an integrated ap-
proach to maritime policy: Towards best practice in integrated maritime governance and 
stakeholder consultation’ (4). As part of its efforts to promote steps towards integrated 
maritime policymaking at different levels of governance, the Commission will provide 
information about action in this direction at global, European, member State and regional 
levels, in order to facilitate this process and provide guidance to stakeholders looking for 
models of best practice. By means of the roadmap (5), presented on 25 November, the 
Commission aims to encourage maritime spatial planning in Europe in order to resolve 
problems relating to the use of the sea.

In addition, on 15 July the Council adopted a regulation intended to improve the protec-
tion of vulnerable marine ecosystems in the high seas from the adverse impacts of bot-
tom fishing gears (6). It includes measures such as introducing a special fishing permit, 
relevant monitoring measures and a precautionary protected boundary within the water 
column.

Further developments

In order to boost the implementation of the European Union’s integrated maritime policy 
and the common fisheries policy, the Commission reorganised the directorate-General 
for maritime Affairs and Fisheries (7). The main change involves the setting-up of three 
geographic directorates responsible for managing both the common fisheries policy and 
the new EU integrated maritime policy in Europe’s three main maritime regions. These are 
complemented by a new directorate in charge of coordination and policy development.

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 

 Regulation (EC) No 645/2008 (OJ L 180, 9.7.2008).
 Regulation (EC) No 242/2008 (OJ L 75, 18.3.2008).
 Regulation (EC) No 241/2008 (OJ L 75, 18.3.2008).
 COm(2008) 395 (OJ C 10, 15.1.2009).
 COm(2008) 791.
 Regulation (EC) No 734/2008 (OJ L 201, 30.7.2008).
 IP/08/471.

120 

SOLIdARITY

General references and other useful links

 •

 •

 •

 •

 •

directorate-General for the Environment: 
http://ec.europa.eu/environment/index_en.htm

Sustainable development: 
http://ec.europa.eu/environment/eussd/

Climate change: 
http://europa.eu/press_room/press_packs/climate/index_en.htm 
http://ec.europa.eu/environment/climat/home_en.htm

directorate-General for Agriculture and Rural development: 
http://ec.europa.eu/agriculture/index_en.htm

directorate-General for maritime Affairs and Fisheries: 
http://ec.europa.eu/dgs/fisheries/index_en.htm

Section 3

Promoting common values  
within the European Union

Background

The European Union is founded on the principles of liberty, democracy, respect for human rights 
and fundamental freedoms, and the rule of law. Against this background, in 2007 the European 
Union Agency for Fundamental Rights was established and its multiannual framework for the 
period 2007–12 adopted.

The values defended by the Union also include cultural diversity, for which the institutions have 
adopted an agenda accompanied by new methods and partnerships. The year 2008 was also 
designated as the European Year of Intercultural Dialogue.

Protecting fundamental rights and combating discrimination

Protecting fundamental rights and children’s rights

As regards children’s rights, on 2 September the European Parliament adopted a dec-
laration on emergency cooperation in recovering missing children. It called on member 
States to introduce a missing-child alert system and reach cooperation agreements with 

PROmOTING COmmON VALUES wIThIN ThE EUROPEAN UNION  

121

all bordering states to ensure the capability of raising an alert rapidly across any relevant 
territories. On 21 October it also adopted a declaration on combating the trafficking of 
children, calling on the member States to recognise the fight against child trafficking as 
a priority objective of their national child protection policies.

European Union Agency for Fundamental Rights

On 28 February the Council adopted a decision (1) establishing a multiannual framework 
for the European Union Agency for Fundamental Rights for 2007–12, which precisely 
defines the Agency’s thematic areas of activity.

On the same day it approved the conclusion of an agreement between the European 
Community and the Council of Europe (2) on cooperation between the Agency and the 
Council of Europe.

On 19 September the Commission adopted a proposal for a decision (3) on the participa-
tion of Croatia as an observer in the Agency’s work.

Combating discrimination

On 2 July, as part of the renewed social agenda, the Commission presented a commu-
nication ‘Non-discrimination and equal opportunities: A renewed commitment’ (4). This 
was accompanied by a proposal for a directive (5) to tackle discrimination on grounds 
of religion or belief, disability, age or sexual orientation and to implement the principle 
of equal treatment outside the field of employment.

On 18 September the European Economic and Social Committee adopted an own- 
initiative opinion on anti-discrimination measures for areas outside employment and 
the case for a single comprehensive anti-discrimination directive.

The second European Equal Opportunities Summit was held in Paris on 29 and 
30 September. It gave the key players an opportunity for an exchange of views on the 
effective application of the principles of non-discrimination in the European Union 
and was also the occasion for an analysis of the results of the European Year of Equal 
Opportunities for All (2007).

(1) 
(2) 
(3) 
(4) 
(5) 

 decision 2008/203/EC (OJ L 63, 7.3.2008).
 decision 2008/578/EC (OJ L 186, 15.7.2008).
 COm(2008) 571.
 COm(2008) 420.
 COm(2008) 426.

122 

SOLIdARITY

matters relating to equal treatment in employment are covered in ‘Social dimension’ in 
Section 1 of this chapter (1).

Measures within the European Union

The European summit in december 2007 raised the question of the situation of the 
Roma, and in its resolution of 31 January the European Parliament urged the Commission 
to develop a European framework strategy on Roma inclusion.

In response, the Commission took stock of the Community instruments and policies aimed 
at the Roma community in Europe (2) in the context of the renewed social agenda (3) 
(2 July). It reiterated its commitment to improving the situation of the Roma community 
and noted that the Roma are subject to persistent discrimination, both individual and 
institutional, and far-reaching social exclusion. This is a complex problem which requires a 
complex response, taking account of all aspects. however, the main priorities are relatively 
clear: education, employment, health and housing.

On 9 July the European Economic and Social Committee also delivered an exploratory 
opinion on ‘Integration of minorities — Roma’, and on 10 July the European Parliament 
adopted a resolution on the census of the Roma on the basis of ethnicity in Italy.

The first European summit on the Roma was held in Brussels on 16 September and exam-
ined the shortcomings in the implementation of the instruments and policies designed 
to tackle Roma exclusion highlighted by the Commission in its July report. The results 
of the discussions and the conclusions of the summits were examined by the Council 
on 8 december.

Rights associated with Union citizenship

On 15 February the Commission presented its three-yearly report (4) on Union citizen-
ship. The report assesses the application of the rights granted to the Union’s citizens by 
the Treaty establishing the European Community during the period from 1 may 2004 
to 30 June 2007. It looks in particular at the right to move and reside freely within the 
territory of the member States, the right to vote and stand as a candidate in municipal 
elections in the member State of residence, the right to petition the European Parliament, 
and the right to apply to the European Ombudsman.

(1) 
(2) 
(3) 
(4) 

 See ‘Equal treatment in employment’ in Chapter III, Section 1, ‘Social dimension’, of this Report.
 SEC(2008) 2172.
 COm(2008) 420. See ‘Renewed social agenda’ in Chapter III, Section 1, ‘Social dimension’, of this Report.
 COm(2008) 85 (OJ C 207, 14.8.2008).

PROmOTING COmmON VALUES wIThIN ThE EUROPEAN UNION  

123

European Group on Ethics in Science and New Technologies

In January the European Group on Ethics in Science and New Technologies (EGE) adop-
ted an opinion on the ethical aspects of animal cloning for food supply. In particular, it 
addressed questions relating to food safety, animal welfare and health, biodiversity and 
sustainability, global trade in agricultural commodities, traceability and labelling.

In december an opinion was also adopted on the ethics of modern developments in 
agricultural technologies. The subjects covered include green biotechnology, food safety, 
security and sustainability, global trade in agricultural commodities and CAP reform.

These two opinions take account of the conclusions of a large number of meetings, 
and in particular of two public round tables organised in June to fine-tune the work of 
the group and encourage the participation of civil society. The round tables enabled it 
to collect the necessary information on the ethical, legislative and social aspects of the 
subjects under discussion.

during the year the EGE participated in the preparation of Commission initiatives in the 
field of bioethics and the ethics of science and new technologies, and in the work of  
international organisations. It also met national ethics committees (NECs) at the NEC 
Forum of the 27 member States (Slovenian and French Presidencies). Finally, it contributed 
to the preparation of the international dialogue which is to bring together representatives 
of 42 countries in February 2009 to discuss the ethics of science and bioethics.

Culture

The European Year of Intercultural dialogue was officially launched in Ljubljana (Slovenia) 
on 8 January. Throughout the year a multitude of activities were organised across Europe 
to highlight the interaction of cultures, to deepen relations between nationalities and reli-
gions, and through dialogue to help reinforce understanding, tolerance and solidarity.

Progress was also made in implementing the European ‘agenda for culture’ (1) published 
by the Commission in may 2007, with the focus on the three objectives laid down: pro-
motion of cultural diversity and intercultural dialogue, promotion of culture as a catalyst 
for creativity in the framework of the Lisbon strategy for growth and jobs, and promotion 
of culture as a vital element in the Union’s international relations.

In this connection the member States agreed to step up their cooperation at European 
level, in particular by creating four expert groups to ensure the exchange of best prac-
tices and mutual learning.

(1) 

 COm(2007) 242 (OJ C 181, 3.8.2007).

124 

SOLIdARITY

These four groups are concerned with issues of crucial importance for culture in Europe: 
the potential of the cultural and creative industries, in particular that of SmEs; promoting 
synergies between culture and education; boosting the mobility of artists and profes-
sionals in the cultural field; and increasing the mobility of museum collections.

At the same time, the culture sector also contributed by creating two platforms on access 
to culture and the culture industries, supplementing a platform on intercultural dialogue 
set up for the European Year in 2008.

In 2008 the Commission presented its assessments of certain culture programmes: on 
29 April it adopted a report on the implementation of the Culture 2000 programme (1), 
followed on 5 may by a report on the implementation of the Community action pro-
gramme to promote bodies active at European level in the field of culture (2).

Under the Culture 2007–13 programme, Stavanger and Liverpool were selected as 
European Capitals of Culture for 2008.

Furthermore, on 20 November the Council adopted conclusions on the creation by the 
European Union of a European heritage label, in order to emphasise in a concrete way 
the common history of Europe. On the same day it also adopted conclusions on the con-
tribution of culture to sustainable development and on promoting cultural diversity and 
intercultural dialogue in the external relations of the Union and its member States.

Youth, active citizenship and sport

Youth policy

On 3 July, as part of the renewed social agenda (3), the Commission proposed a recom-
mendation on the mobility of young volunteers across Europe (4). while the primary 
objective of the proposed initiative is to enhance the mobility of young cross-border 
volunteers, its specific objectives are to improve awareness of the opportunities for 
cross-border volunteering by young people, to increase the exchange opportunities 
for young volunteers, to ensure a reasonable level of quality, to recognise the skills and 
competences acquired by young volunteers, to provide targeted support for socioedu-
cational instructors and youth leaders working with young cross-border volunteers, and 
to encourage young people with fewer opportunities to volunteer abroad. This recom-
mendation was adopted by the Council on 20 November.

(1) 
(2) 
(3) 
(4) 

 COm(2008) 231.
 COm(2008) 234.
 COm(2008) 420. See ‘Renewed social agenda’ in Chapter III, Section 1, ‘Social dimension’, of this Report.
 COm(2008) 424.

PROmOTING COmmON VALUES wIThIN ThE EUROPEAN UNION  

125

Young people with fewer opportunities also played a major part in youth policy in 2008. 
Their participation was the subject of an exchange of best practices among member 
States, a conference and discussions at the youth event organised by the Slovenian 
Presidency in April. The political messages emerging from this process as a whole were 
submitted to the Council at its meeting on 21 and 22 may.

In connection with the implementation of the Lisbon strategy, the European Council’s 
march conclusions enshrined the key messages on youth sent out by the Council. In 
particular, the European Council emphasised the need to continue to devote attention 
to youth employment, especially the transition from study to employment, by imple-
menting the European Youth Pact.

On 2 September the European Parliament adopted a declaration on devoting more at-
tention to youth empowerment in EU policies. It called on the member States to focus 
on youth when implementing the Lisbon national reform programmes in the context of 
the Lisbon strategy and to take youth into account in the relevant policy fields.

Young people’s health was another key theme of youth policy in 2008, and on 
20 November the Council adopted a resolution on the health and well-being of young 
people.

As regards structured dialogue, two priority areas were launched in 2008: intercultural 
dialogue and ‘future challenges for young people’. Two events were held. The first, under 
the Slovenian Presidency, brought together young people to discuss the participation of 
young people with fewer opportunities. The second, organised in marseille by the French 
Presidency, gave young people, including some representing countries on the southern 
shores of the mediterranean, an opportunity to discuss intercultural dialogue.

A youth week was also organised in November, involving thousands of young people 
throughout Europe. Its results provided the Commission with food for thought with a 
view to the future European framework for cooperation on youth.

On 26 June the Commission also adopted a report ‘Final evaluation of the “Youth” 
Community action programme (2000–06) and the Community action programme to 
promote bodies active at European level in the field of youth (2004–06)’ (1).

Active citizenship

Visits to the Commission constitute a key instrument for connecting with citizens. In 2008 
nearly 1 400 groups, representing some 43 000 visitors, attended just over 3 000 presen-
tations on the functioning of the Commission and the main policies it administers.

(1) 

 COm(2008) 398 (OJ C 10, 15.1.2009).

126 

SOLIdARITY

The Commission also adopted two decisions offering Albania (10 September) and the 
former Yugoslav Republic of macedonia (27 November) draft agreements laying down 
the terms and conditions for their participation in the ‘Europe for citizens’ programme 
from 2009.

Sport

Implementation of the white Paper on sport (1) continued during the year. Of the  
53 actions under the Pierre de Coubertin action plan, 27 were ongoing. Two studies were 
launched, on sports agents and voluntary activities (including sport). Progress was made 
with regard to measuring the economic impact of sport, and a guide to physical activity 
in the European Union was published in November.

The results of an independent study analysing the problem of the Union of European 
Football Associations (UEFA) with regard to the rules on locally trained players were 
published on 28 may. The Commission concluded that the rules drawn up by UEFA in this 
area are compatible with the provisions of the EC Treaty on freedom of movement.

General references and other useful links

 •

 •

 •

 •

 •

 •

 •

human rights: 
http://europa.eu/pol/rights/index_en.htm

Culture: 
http://ec.europa.eu/culture/index_en.htm

European Year of Intercultural dialogue: 
http://ec.europa.eu/youth/index_en.htm

Youth: 
http://ec.europa.eu/youth/index_en.htm

Active citizenship: 
http://ec.europa.eu/citizenship/index_en.htm

Sport: 
http://ec.europa.eu/sport/index_en.htm

European Group on Ethics in Science and New Technologies: 
http://ec.europa.eu/european_group_ethics/index_en.htm

(1) 

 COm(2007) 391 (OJ C 4, 9.1.2008).

Chapter IV

Security and freedom

Section 1

European area of freedom, security and justice

Background

One of the European Union’s core objectives is to provide its citizens with an area of freedom, 
 security and justice without internal borders. To this end, the Hague programme, covering the 
 period 2005–10, addresses all aspects of policies in this area, including the external dimension.

Assessment of the implementation of the Hague programme has highlighted the substan-
tial progress made in 2007: the European arrest warrant, which has become operational in 
all Member States, extension of the Schengen area to include nine new Member States, and 
the preparation of a more harmonised legislative framework for a future European asylum 
system.

Implementing the Hague programme

The third annual progress report on achievements in 2007 in justice, freedom and secu-
rity policy was adopted by the Commission on 2 July (1). The report recorded consider-
able achievements both in migration and border management, and in civil justice. The 
findings also confirmed the need to improve decision-making in the areas covered by 
the ‘third pillar’ (police cooperation and criminal justice), with the exception of the fight 
against terrorism.

(1) 

 COm(2008) 373.

128 

SECURITY ANd FREEdOm

European law-enforcement area

General

In its communication of 30 may ‘Towards a European e-justice strategy’ (1), the 
Commission proposes the use of information and communication technologies in the 
field of justice. The aim of e-justice, which concerns both criminal and civil justice, is 
to improve citizens’ access to justice and cooperation among judicial authorities and, 
more generally, to make legal action more efficient and effective. The communication 
advocates practical measures accompanied by realistic planning and adequate financing 
measures for the development of e-justice projects both at European and at national 
levels. At its meeting on 27 and 28 November the Council adopted an action plan on 
e-justice, aimed at structuring work in this area.

On 15 April, in order to promote dialogue between the Commission and stakeholders 
in the justice systems of the member States, the Commission also launched a forum for 
discussing EU justice policies and practice. The forum brings together representatives 
of all professions involved in the justice systems, delegates from NGOs, the Council of 
Europe, the European Union Agency for Fundamental Rights and other bodies. Its central 
aim, form, composition and working methods are set out in a Commission communica-
tion of 4 February (2).

As part of the fight against corruption, on 25 September the Council also adopted a deci-
sion (3) on the conclusion, on behalf of the European Community, of the United Nations 
Convention Against Corruption (UNCAC). The Commission ratified the convention on 
11 November. On 24 October the Council adopted a decision on a European contact-
point network against corruption (4). The objective of the decision is to strengthen 
co operation between authorities and agencies to prevent and combat corruption in 
Europe. The network will facilitate the exchange throughout the European Union of 
information on effective measures and experience in the prevention and combating 
of corruption.

Also, at its meeting on 27 and 28 November, the Council adopted a resolution on the 
establishment of a network for legislative cooperation between the justice ministries of 
the EU member States. The network will provide ministries with a forum for the rapid, 
reliable and flexible exchange of information on their legislation, their legal systems 
and reforms under way, thus making a tangible contribution to European integration 
in the field of justice.

(1) 
(2) 
(3) 
(4) 

 COm(2008) 329 (OJ C 10, 15.1.2009).
 COm(2008) 38 (OJ C 118, 15.5.2008).
 decision 2008/801/EC (OJ L 287, 29.10.2008).
 decision 2008/852/JhA (OJ L 301, 12.11.2008).

EUROPEAN AREA OF FREEdOm, SECURITY ANd JUSTICE 

129

At bilateral level, on 23 July the Commission adopted two reports on progress in 
Bulgaria (1) and Romania (2) under the cooperation and verification mechanism estab-
lished when both countries acceded to the European Union. The reports, designed to 
allow those countries to give a regular account of the progress made in reforming their 
judicial systems and in the fight against corruption and organised crime, present a mixed 
picture. The cooperation and verification mechanism will therefore have to be main-
tained for a certain time. The Council endorsed the analysis contained in the reports in 
its conclusions of 15 September.

Civil and commercial justice

Several legislative proposals on judicial cooperation in civil and commercial matters 
were adopted in 2008.

In the field of mediation in civil and commercial matters, on 21 may the European 
Parliament and the Council adopted a directive designed to facilitate access to alterna-
tive dispute resolution and to promote the amicable settlement of disputes by encourag-
ing the use of mediation and by ensuring a balanced relationship between mediation 
and judicial proceedings (3).

On 17 June, in order to ensure greater legal certainty and greater access to justice for 
European citizens and businesses, the European Parliament and the Council adopted a 
regulation on the law applicable to contractual obligations (Rome I) (4). The regulation, 
building on the fundamental principle that the governing law of a contract is that agreed 
by the contracting parties, provides EU citizens and businesses with the certainty that 
they can enter into a contract in the knowledge that courts in all the member States will 
apply the same principles on any cross-border elements of contractual disputes.

On 6 march the Commission adopted a Green Paper on effective enforcement of judg-
ments in the European Union, launching a stakeholders’ consultation on how to improve 
the transparency of debtors’ assets in the European Union (5). The purpose of this initia-
tive is to help solve problems of cross-border debt recovery that may prove an obstacle 
to the free circulation of payment orders within the European Union and disrupt the 
operation of the internal market.

On 23 June the Commission also adopted a proposal for a decision (6) amending the 
2001 Council decision establishing a European judicial network in civil and commer-

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

 COm(2008) 495.
 COm(2008) 494.
 directive 2008/52/EC (OJ L 136, 24.5.2008).
 Regulation (EC) No 593/2008 (OJ L 177, 4.7.2008).
 COm(2008) 128 (OJ C 202, 8.8.2008).
 COm(2008) 380 (OJ C 10, 15.1.2009).

130 

SECURITY ANd FREEdOm

cial matters (1). The proposal is intended to provide the network with an updated legal 
framework, a more effective organisation and increased resources so that it can improve 
judicial cooperation among the member States.

On 5 September the Commission also adopted a proposal for a decision (2) on the 
Convention on Choice of Court Agreements. The convention is designed to offer greater 
certainty and predictability for parties involved in business-to-business agreements and 
international litigation, by ensuring that judgments issued by the designated courts are 
recognised in the other states which are parties to the convention.

In the field of international cooperation, on 27 November the Council adopted a deci-
sion concerning the conclusion of the convention on jurisdiction and the recognition 
and enforcement of judgments in civil and commercial matters (3), which will replace 
the Lugano Convention of 16 September 1988 (4). The new convention aims to adapt 
the provisions in force with the European Free Trade Area (EFTA) states to Regulation 
(EC) No 44/2001 (5).

Criminal justice

On 24 July the Council adopted a framework decision setting out the conditions under 
which previous convictions handed down against a person in another member State are 
taken into account in the course of new criminal proceedings against the same person 
for a different offence (6).

At its meeting on 27 and 28 November the Council also adopted a framework deci-
sion on the application of the principle of mutual recognition to judgments in criminal 
matters (7), a framework decision on mutual recognition in probation matters (8) and a 
framework decision on combating certain forms and expressions of racism and xeno-
phobia by means of criminal law (9). On 18 december it adopted a framework decision 
on the European evidence warrant for the purpose of obtaining objects, evidence and 
data for use in proceedings in criminal matters (10).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 
(10) 

 decision 2001/470/EC (OJ L 174, 27.6.2001).
 COm(2008) 538.
 COm(2008) 116 (OJ C 202, 8.8.2008). 
 OJ L 319, 25.11.1988.
 OJ L 12, 16.1.2001.
 Framework decision 2008/675/JhA (OJ L 220, 15.8.2008).
 Framework decision 2008/909/JhA (OJ L 327, 5.12.2008).
 Framework decision 2008/947/JhA (OJ L 337, 16.12.2008).
 Framework decision 2008/913/JhA (OJ L 328, 6.12.2008).
 Framework decision 2008/978/JhA (OJ L 350, 30.12.2008).

EUROPEAN AREA OF FREEdOm, SECURITY ANd JUSTICE 

131

On 19 November the European Parliament and the Council adopted a directive on the 
protection of the environment through criminal law (1).

Police and customs cooperation

General

In the field of police cooperation, on 23 June the Council adopted a decision on the 
improvement of cooperation between the special intervention units of the member 
States of the European Union in crisis situations (2). This decision will enable special 
intervention units to provide assistance to and/or to operate in another member State 
to deal with a specific crisis situation.

On the same day the Council adopted a decision on the stepping-up of cross-border 
cooperation, particularly in combating terrorism and cross-border crime (the Prüm deci-
sion), and a decision on its implementation (3).

On 24 October the Council also issued a recommendation on improving communication 
between operational units in border areas. On the same day it approved the European 
best practice guidelines for police and customs cooperation centres.

Europol and CEPOL

On 18 April the Council reached political agreement on the proposal for a decision 
establishing the European Police Office (4). The purpose of the proposal is to replace 
the current Europol Convention by a European legal instrument that can be adapted 
more rapidly in response to trends in crime, and to establish Europol as an agency of the 
European Union and replace intergovernmental funding by a Community subsidy.

At its meeting on 27 and 28 November the Council approved a cooperation agreement 
between the European Police College (CEPOL) and Interpol, the purpose of which is to 
enhance the training of senior police officers.

(1) 

(2) 
(3) 
(4) 

 directive 2008/99/EC (OJ L 328, 6.12.2008). See ‘Environmental instruments’ in Chapter III, Section 2, 
‘Environment’, of this Report.
 decision 2008/617/JhA (OJ L 210, 6.8.2008).
 decisions 2008/615/JhA and 2008/616/JhA (OJ L 210, 6.8.2008).
 COm(2006) 817 (OJ C 126, 7.6.2008). 

132 

SECURITY ANd FREEdOm

Data protection and exchange of information

On the electronic exchange of information, the Commission adopted a proposal for a 
decision on the establishment of the European criminal records information system (1) 
on 27 may. The proposal sets up elements of a standardised format for the electronic 
exchange of information extracted from criminal records, in particular as concerns in-
formation on the offence giving rise to the conviction and information on the content 
of the conviction, as well as other general and technical implementation aspects of the 
information exchange.

On 1 August the Commission adopted a report (2) on the operation of the Council com-
mon position on exchanging data on issued and blank stolen, lost or misappropriated 
passports (3). This second report notes a substantial improvement in the operation of 
the common position since the 2006 report (4). member States have taken various steps 
in order to comply with their obligations. however, implementation of the common 
position is still incomplete and requires a more proactive and committed effort on the 
part of the member States.

On 27 November the Council also adopted a framework decision on the protection of 
personal data processed in the framework of police and judicial cooperation in criminal 
matters (5). This act allows the police and legal authorities to obtain the information they 
need to fight crime, while maintaining an appropriate level of protection of individuals’ 
personal data.

Fight against terrorism, crime and drugs

Fight against terrorism

As one of a series of measures to help combat terrorism, on 4 April the Commission 
adopted measures to strengthen the control of explosives for civil use, for instance in the 
mining industry (6). To prevent theft and to ensure that any thefts or losses are quickly 
detected, the new regulation requires unique labelling of explosives throughout the 
European Union.

Following up the Commission’s communication of November 2007 (7), on 18 April the 
Council adopted a European Union action plan on enhancing the security of explosives. It 

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 

 COm(2008) 332 (OJ C 10, 15.1.2009).
 COm(2008) 502.
 Common Position 2005/69/JhA (OJ L 27, 29.1.2005).
 COm(2006) 167 (OJ C 184, 8.8.2006).
 Framework decision 2008/977/JhA (OJ L 350, 30.12.2008).
 directive 2008/43/EC (OJ L 94, 5.4.2008).
 COm(2007) 651 (OJ C 55, 5.4.2008).

EUROPEAN AREA OF FREEdOm, SECURITY ANd JUSTICE 

133

is built on three pillars: prevention, detection and response, including specific measures 
on explosive precursors and the supply chain (storage, transport, traceability); and a 
horizontal set of measures concerning public security which complement and consoli-
date the three pillars.

On 22 April the European Economic and Social Committee adopted an exploratory opin-
ion on the prevention of terrorism and violent radicalisation (1). The main objective of the 
opinion is to identify policies, actions and initiatives that may be held as good practice 
in the fight against terrorism and violent radicalisation.

On 27 October the Commission adopted a proposal for a decision on a critical infrastruc-
ture warning information network (2), as part of the European programme for critical in-
frastructure protection. The initiative concerns the information-sharing process between 
EU member States and an information technology system to support that process. The 
aim is to help improve the protection of critical infrastructure in the European Union 
and to facilitate coordination and cooperation regarding information on such protec-
tion at EU level.

At its meeting on 27 and 28 November the Council adopted a decision amending the 
definition of terrorism (3). It also adopted conclusions on further action to combat ter-
rorism, in particular through the ‘Check the web’ project and an updated version of the 
European Union strategy for combating radicalisation and recruitment to terrorism.

Fight against crime

On 24 October the Council adopted a decision on the fight against organised crime (4). 
The aim is to align substantive criminal law in order to facilitate mutual recognition of 
judgments and judicial decisions having a cross-border dimension, by defining offences 
relating to participation in a criminal organisation.

On 17 October, in response to the request of the Council of 8 and 9 November 2007, the 
Commission adopted a communication evaluating implementation of the EU action plan 
on best practices, standards and procedures for combating and preventing trafficking 
in human beings (5).

On 20 November the Commission adopted a communication focusing on policies to 
strengthen the legislative framework and procedures for the confiscation and recovery 
of the proceeds of crime in the European Union (6).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

 OJ C 211, 19.8.2008.
 COm(2008) 676.
 Framework decision 2008/919/JhA (OJ L 330, 9.12.2008).
 Framework decision 2008/841/JhA (OJ L 300, 11.11.2008).
 COm(2008) 657.
 COm(2008) 766.

134 

SECURITY ANd FREEdOm

As part of the fight against cyber crime, on 14 July the Commission presented a report (1) 
on the Council decision on attacks against information systems (2). In it the Commission 
noted that the decision was being well implemented in most member States, but ex-
pressed concern that some member States had not communicated any implementing 
measures.

In October and November the Council adopted a number of conclusions on a concerted 
work strategy and practical measures to combat cyber crime. This strategy involves either 
the member States or the Commission or both together in future measures to combat cy-
ber crime. It also contains a project to set up national alert platforms and a European alert 
platform for reporting offences noted on the Internet and recommendations on public–
private cooperation in the campaign against cyber crime. The recommendations were 
approved by national experts at a meeting held by the Commission in September.

Fight against drugs

On 8 december, as part of the EU drugs strategy, the Council adopted a drugs action plan 
setting out the priorities for 2009–12. The action plan has two core pillars: the reduction 
of drug demand and of drug supply; and it has three cross-cutting themes: coordination, 
international cooperation and information, research and evaluation. Priorities have been 
formulated for all five policy fields. The Commission had adopted a communication on 
this action plan (3) on 18 September.

On 3 march, at a more technical level, the Council adopted a decision on defining 1-ben-
zylpiperazine (BZP) as a new psychoactive substance which is to be made subject to 
control measures and criminal provisions (4).

On the international cooperation front, on 29 April the Council adopted a decision on 
the participation of Turkey in the work of the European monitoring Centre for drugs 
and drug Addiction (5).

On 27 November the Council adopted a decision authorising the signature and conclu-
sion of an agreement to strengthen cooperation with China on controls on imports of 
synthetic drug precursors from China into the Community (6).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

 COm(2008) 448.
 Framework decision 2005/222/JhA (OJ L 69, 16.3.2005).
 COm(2008) 567.
 decision 2008/206/JhA (OJ L 63, 7.3.2008).
 decision 2008/375/EC (OJ L 129, 17.5.2008).
 COm(2008) 437.

EUROPEAN AREA OF FREEdOm, SECURITY ANd JUSTICE 

135

Management of external borders and immigration

Migration flows, asylum and immigration

On 14 may, in order to meet the information needs of the Community institutions, 
member States’ authorities and the general public on immigration and asylum, the 
Council adopted a decision formally establishing a European migration network (1).

On 17 June the Commission presented a communication ‘A common immigration policy 
for Europe: Principles, actions and tools’ (2) and a policy plan ‘Asylum — An integrated 
approach to protection across the EU’ (3).

The communication sets out 10 common principles, grouped under the three headings 
of prosperity, security and solidarity, that will form the basis of the common immigra-
tion policy.

The policy plan sets out a roadmap for the coming years and lists the measures that the 
Commission intends to propose in order to complete the second phase of the common 
European asylum system. It is based on three pillars: higher common standards of protec-
tion through the alignment of member States’ asylum laws, effective and well-supported 
practical cooperation ensured through the establishment of a European asylum support 
office, and a greater degree of solidarity and responsibility among the member States, 
as well as between the European Union and third countries.

The European Council of 15 and 16 October adopted the European pact on immigration 
and asylum, largely based on the above communication and policy plan. Implementation 
of the pact will be the subject of an annual debate starting from the June 2010 European 
Council.

In order to put into action the principles listed in its action plan of 17 June, on 3 december 
the Commission presented amendments to the existing legislation on asylum. These 
amendments, which aim to ensure a higher degree of harmonisation and better stand-
ards of protection for the common European asylum system, concern:

 •

 •

the rules that determine the member State responsible for examining an asylum 
application (4);
the Eurodac regulation which sets up a system for taking and registering the finger-
prints of asylum seekers (5);

(1) 
(2) 
(3) 
(4) 
(5) 

 decision 2008/381/EC (OJ L 131, 21.5.2008).
 COm(2008) 359 (OJ C 10, 15.1.2009).
 COm(2008) 360 (OJ C 10, 15.1.2009).
 COm(2008) 820.
 COm(2008) 825.

136 

SECURITY ANd FREEdOm

 •

the directive containing the rules on conditions for the reception of asylum seekers 
in member States (1).

On 8 October the Commission also adopted the following initiatives:

 •

 •

 •

a communication ‘Strengthening the global approach to migration: Increasing co-
ordination, coherence and synergies’ (2);
a report to the 2008 ministerial conference on integration ‘Strengthening actions 
and tools to meet integration challenges’;
a communication (
right to family reunification (4).

3) reporting on the application of directive 2003/86/EC on the 

Visas, management of external borders and internal movement

On 13 February, in order to further reinforce solidarity and cooperation in the man-
agement of EU external borders, the Commission adopted a new initiative comprising 
three communications on the future development of the European integrated system 
of external border management.

 •

 •

 •

The report on the European Agency for the management of Operational Cooperation 
at the External Borders (Frontex) (5) assesses the results achieved, makes recommen-
dations for measures that can be taken in the short term and outlines a long-term 
vision for the future.
The purpose of the communication ‘Examining the creation of a European border 
surveillance system (Eurosur)’ (6) is to enhance border surveillance in order to pre-
vent unauthorised border crossings, to counter cross-border crime and to support 
measures taken against persons who have crossed the border illegally.
The communication ‘Preparing the next steps in border management in the European 
Union’ (7) advocates new tools that could form an integrated part of the European 
border management strategy of the future, including measures to facilitate border 
crossing for bona fide travellers, the possible introduction of registration of entry/
exit, and the introduction of an electronic system of travel authorisation.

with regard to the common visa policy, two legislative measures were adopted on the 
visa information system (VIS):

 •

on 23 June a Council decision concerning access for consultation of the VIS by 
designated authorities of member States and by Europol for the purposes of the 

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 

 COm(2008) 815.
 COm(2008) 611.
 COm(2008) 610.
 directive 2003/86/EC (OJ L 251, 3.10.2003).
 COm(2008) 67 (OJ C 202, 8.8.2008).
 COm(2008) 68 (OJ C 202, 8.8.2008).
 COm(2008) 69 (OJ C 202, 8.8.2008).

EUROPEAN AREA OF FREEdOm, SECURITY ANd JUSTICE 

137

 •

prevention, detection and investigation of terrorist offences and of other serious 
criminal offences (1);
2) defining the 
on 9 July a regulation of the European Parliament and of the Council (
purpose, functionalities and responsibilities of the VIS and establishing the conditions 
and procedures for the exchange of visa data between member States on short-stay 
visas and on related decisions (e.g. whether to annul, revoke or extend the visa), in 
order to facilitate the examination of visa applications and decisions.

On 27 November the Council adopted an amendment to the Schengen Borders Code 
to ensure that the visa information system will be used in an efficient way at external 
borders.

On 18 April, on the right of free movement and residence, the Council adopted a regu-
lation (3) amending the regulation laying down a uniform format for residence permits 
for third-country nationals (4). The purpose of the new regulation is to set the security 
features and biometric identifiers to be used by the member States in a uniform format 
of residence permit for third-country nationals.

On 24 July the Council also amended the regulation laying down a uniform format for 
visas (5). The new regulation (6) concerns the numbering of visas, and seeks to apply a 
consistent and unique visa-sticker numbering system for verification in the VIS.

On the subject of the common return policy, on 16 december the European Parliament 
and the Council adopted a directive on common standards and procedures in member 
States for returning illegally staying third-country nationals (7). The purpose of the direc-
tive is to define common standards for persons to be returned in a humane manner and 
with full respect for their fundamental rights and dignity. It will enter into force at the 
beginning of 2009 and member States have two years in which to transpose it.

On 10 december the Commission also adopted a report on the right of citizens of the 
Union and their family members to move and reside freely within the territory of the 
member States (8).

In the field of international cooperation, the agreements between the European 
Community and Albania (only on the issuing of visas), Bosnia and herzegovina, the 
former Yugoslav Republic of macedonia, moldova, montenegro, Serbia and Ukraine on 
the facilitation of the issuing of visas and on readmission of persons residing without 

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 

 decision 2008/633/JhA (OJ L 218, 13.8.2008).
 Regulation (EC) No 767/2008 (OJ L 218, 13.8.2008).
 Regulation (EC) No 380/2008 (OJ L 115, 29.4.2008).
 Regulation (EC) No 1030/2002 (OJ L 157, 15.6.2002).
 Regulation (EC) No 1683/95 (OJ L 164, 14.7.1995).
 Regulation (EC) No 856/2008 (OJ L 235, 2.9.2008).
 directive 2008/115/EC (OJ L 348, 24.12.2008).
 COm(2008) 840.

138 

SECURITY ANd FREEdOm

authorisation entered into force on 1 January 2008 (1). Talks on visa liberalisation were be-
gun with Albania, Bosnia and herzegovina, the former Yugoslav Republic of macedonia, 
montenegro and Serbia. On 27 November the Council adopted the Commission’s recom-
mendations on the negotiations with Georgia with a view to agreements on facilitating 
the issuing of visas and readmission.

Negotiations continued on the agreement between the European Community and the 
United States regarding certain conditions for access to the US visa waiver programme. 
On 22 may the European Parliament endorsed the mandate given by the Council to the 
Commission to negotiate the agreement on behalf of the European Community. The aim 
of the agreement is to meet American legal requirements in the areas falling within the 
competence of the European Community as quickly as possible, in order to ensure full 
reciprocal visa-free travel and equal treatment for all citizens of the Union.

On 23 July the Commission also adopted its fourth report on visa reciprocity (2).

Schengen information system

On 18 February the Council adopted a decision and a regulation on the tests of the 
second-generation Schengen information system (SIS II) (3), and on 5 and 6 June it en-
dorsed the SIS II global schedule, which will enable all sides to prepare their planning 
for the further development and start of SIS II operations. On 24 October the Council 
adopted a decision and a regulation on migration from the Schengen information sys-
tem (SIS 1+) to SIS II (4).

Enlargement of the Schengen area

On 21 december 2007 nine member States of the European Union (the Czech Republic, 
Estonia, Latvia, Lithuania, hungary, malta, Poland, Slovenia and Slovakia) joined the 
Schengen area. On 30 march the enlargement process was completed by the lifting of 
air border controls between these countries and with the 15 states that are already part 
of the Schengen system.

On 12 december Switzerland joined the Schengen area (5) and internal land border 
controls on persons were lifted. On 29 march 2009 this process will be completed with 
the lifting of controls on persons at air borders, provided the evaluation visits of airports 
to be carried out in February 2009 have positive results.

(1) 
(2) 
(3) 
(4) 
(5) 

 OJ L 24, 29.1.2008.
 COm(2008) 486.
 decision 2008/173/EC and Regulation (EC) No 189/2008 (OJ L 57, 1.3.2008).
 decision 2008/839/JAI and Regulation (EC) No 1104/2008 (OJ L 299, 8.11.2008).
 decision 2008/903/EC (OJ L 327, 5.12.2008).

RISk mANAGEmENT 

139

General references and other useful links

 •

 •

 •

 •

European area of freedom, security and justice: 
http://ec.europa.eu/justice_home/index_en.htm

Eurojust: 
http://www.eurojust.europa.eu/

Europol: 
http://www.europol.europa.eu/

European Police College: 
http://www.cepol.europa.eu/

Section 2

Risk management

Background

The activities of the European Union have a bearing on citizens’ everyday lives. The essential 
aspects of EU action include protecting and improving the safety of food and consumer goods, 
and enabling consumers to benefit from the internal market.

In the health field, the Union is implementing an action programme which aims to improve 
citizens’ health security, promote health (including the reduction of health inequalities) and 
produce and disseminate health information and knowledge.

The Union’s objective is also to empower European consumers, enhance their welfare and protect 
them effectively from the risks and threats that they cannot tackle as individuals.

Public health

General (1)

On 2 July, as part of the renewed social agenda (2), the Commission adopted a proposal 
for a directive on the application of patients’ rights in cross-border healthcare (3) and 

(1) 

(2) 

(3) 

 See also ‘Pharmaceutical products’ under ‘Industry and services’ in Chapter II, Section 2, ‘Innovation and 
enterprise policy’, and ‘Use of information and communication technologies’ in Chapter II, Section 2, 
‘Information society and the media’, of this Report.
 See ‘mobility of workers and free movement of knowledge’ in Chapter III, Section 1, ‘Social dimension’, of 
this Report.
 COm(2008) 414.

140 

SECURITY ANd FREEdOm

a communication on improving cooperation amongst member States in this area (1). 
The new directive will establish a Community framework for cross-border healthcare, 
whilst fully respecting the principles on which national systems are based. It will help 
ensure sufficient legal clarity concerning patients’ rights together with the provision of 
high-quality, safe and efficient cross-border healthcare. It also establishes a framework 
for European cooperation.

In addition, on 10 december it adopted a Green Paper (2) on the European workforce 
for health. The publication of this Green Paper marked the start of a public consultation 
to obtain the views of stakeholders on a wide range of issues relating to the healthcare 
workforce and the provision of care for an ageing population.

Furthermore, on 23 July the Commission presented a report on the implementation 
of the public health programme in 2007 (3), followed on 24 July by a communica-
tion on an interim evaluation of the implementation of the public health programme 
(2003–08) (4).

As regards anti-smoking measures, on 8 may the Commission presented a report (5) on 
the implementation of the tobacco advertising directive (6). The report’s conclusion is 
that the European ban on tobacco advertising is effective.

On 26 September the Council also adopted conclusions on the fight against Alzheimer’s 
disease and neurodegenerative diseases, with a view to organising a European response 
to this growing problem.

The Commission also adopted a communication (7) on rare diseases and a proposal (8) 
for a recommendation on the same subject (11 November), together with a commu-
nication (9) on the European Centre for disease Prevention and Control’s activities on 
communicable diseases: the positive outcomes since the Centre’s establishment and 
the planned activities and resource needs (13 November).

On 8 december it presented a proposal for a directive on standards of quality and safety 
of human organs intended for transplantation (10), together with an action plan (11) on 
organ donation and transplantation (2009–15).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 
(10) 
(11) 

 COm(2008) 415.
 COm(2008) 725.
 COm(2008) 482.
 COm(2008) 484.
 COm(2008) 330 (OJ C 10, 15.1.2009).
 directive 2003/33/EC (OJ L 152, 20.6.2003).
 COm(2008) 679.
 COm(2008) 726.
 COm(2008) 741.
 COm(2008) 818.
 COm(2008) 819.

RISk mANAGEmENT 

141

Furthermore, on 15 december the Commission adopted a communication (1) and a pro-
posal for a recommendation (2) on patient safety, including the prevention and control 
of healthcare-associated infections.

Consumer protection

Product and service safety

On 25 January the Commission proposed revising the directive on the safety of toys (3). 
The changes pursue three objectives: to impose stricter safety requirements, to place 
more responsibility on toy manufacturers and importers, and to reinforce the member 
States’ market surveillance obligations.

On 21 April the Commission adopted a decision calling on the member States to en-
sure that magnetic toys bear a warning about the health and safety risks they pose (4). 
On 22 April it adopted a communication on the protection of consumers, in particular 
minors, in respect of the use of video games (5).

Furthermore, on 25 march it adopted a decision on the fire safety requirements to be 
met by European standards for cigarettes (6).

Food safety, plant health, animal health and animal welfare

Food safety

In the field of food safety, on 14 January the Commission proposed a regulation to fa-
cilitate the placing on the market of novel foods (7). The intention is to make novel foods 
subject to a centralised assessment and authorisation procedure which will be simpler 
and more efficient. more specifically, applications for approval will be submitted to the 
Commission and then forwarded to the European Food Safety Authority, which will carry 
out a scientific evaluation of the product.

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 

 COm(2008) 836.
 COm(2008) 837.
 COm(2008) 9 (OJ C 207, 14.8.2008).
 decision 2008/329/EC (OJ L 114, 26.4.2008).
 COm(2008) 207.
 decision 2008/264/EC (OJ L 83, 26.3.2008).
 COm(2007) 872 (OJ C 106, 26.4.2008).

142 

SECURITY ANd FREEdOm

On 30 January the Commission also adopted a proposal for a regulation on the provi-
sion of food information to consumers (1). The intention here is to improve the existing 
legislation on the labelling of foodstuffs in general (2) and on nutrition labelling (3). The 
new regulation will render information on food products more accessible, including 
nutrition information and information on the presence of allergens.

On 16 december the European Parliament and the Council adopted a regulation (4) 
establishing a common authorisation procedure for food additives, food enzymes and 
food flavourings. On the same date they adopted a regulation (5) on food enzymes, a 
regulation (6) on food additives, and a regulation (7) on flavourings and certain food 
ingredients with flavouring properties.

On 26 June the Commission also adopted a report on foods for persons suffering from 
carbohydrate metabolism disorders (8). This report summarises the dietary recommenda-
tions for persons suffering from diabetes and the existing European legislation on foods 
intended for them, so that the desirability of special provisions on foods for people with 
diabetes can be assessed.

On 22 October the European Economic and Social Committee adopted an exploratory 
opinion on the health security of agricultural and food imports, drawing attention to 
the adjustments needed, particularly in terms of harmonising inspection practices and 
extending the traceability system to products from non-member countries.

As regards genetically modified organisms, the Commission adopted decisions au-
thorising the placing on the market of products containing genetically modified maize 
(28 march) (9) and products containing genetically modified soybean (8 September and 
4 december) (10). It presented proposals for decisions authorising the placing on the 
market of products containing genetically modified cotton (30 April) (11) and products 
containing oilseed rape T45 (30 October) (12).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 
(10) 
(11) 
(12) 

 COm(2008) 40 (OJ C 202, 8.8.2008).
 directive 2000/13/EC (OJ L 109, 6.5.2000).
 directive 90/496/EEC (OJ L 276, 6.10.1990).
 Regulation (EC) No 1331/2008 (OJ L 354, 31.12.2008).
 Regulation (EC) No 1332/2008 (OJ L 354, 31.12.2008).
 Regulation (EC) No 1333/2008 (OJ L 354, 31.12.2008).
 Regulation (EC) No 1334/2008 (OJ L 354, 31.12.2008).
 COm(2008) 392 (OJ C 10, 15.1.2009).
 OJ L 87, 29.3.2008.
 OJ L 247, 16.9.2008 and OJ L 333, 11.12.2008.
 COm(2008) 226 (OJ C 202, 8.8.2008).
 COm(2008) 678.

RISk mANAGEmENT 

Plant health

143

On 11 march, as part of Community action to encourage the sustainable use of pesti-
cides, the Commission adopted a modified proposal for a regulation concerning the 
placing of plant protection products on the market (1). The aim of the proposal is to 
recast the existing legislation in order to consolidate the protection of human health 
and the environment, improve the functioning of the internal market and update the 
authorisation procedures.

As regards the placing on the market of forest reproductive material, on 16 december the 
Council adopted a decision (2) to establish an equivalence system for the importation of 
such material under clear rules and to replace a temporary system authorising member 
States to take individual decisions for the importation of such material.

Animal health and animal welfare

In the course of the year the Commission presented several initiatives relating to animal 
health and animal welfare, proposing:

 •

 •

 •

 •

 •

3) on the various systems of rearing laying hens, with recommenda-
a communication (
tions favouring the marketing of eggs from animal-welfare-friendly rearing systems 
(8 January);
4), which considerably 
a regulation on the placing on the market and use of feed (
simplifies the procedures for the labelling and placing on the market of feed while 
maintaining the high level of feed safety (3 march);
a regulation to clarify the rules applicable to animal by-products not intended for 
human consumption in terms of the protection of public health and animal health (5) 
(10 June);
6) with a 
a report on the use of coccidiostats and histomonostats as feed additives (
view to a decision on the phasing-out of the use of these substances as feed additives 
by 31 december 2012 (5 may);
7), the aim of which is to ban the 
a regulation concerning trade in seal products (
placing on the market and the import into, transit through and export from the 
Community of seal products, unless certain strict conditions concerning the method 
used to kill and skin seals are met (23 July);

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 

 COm(2008) 93 (OJ C 208, 15.8.2008).
 decision 2008/971/EC (OJ L 345, 23.12.2008).
 COm(2007) 865 (OJ C 106, 26.4.2008).
 COm(2008) 124 (OJ C 202, 8.8.2008).
 COm(2008) 345 (OJ C 10, 15.1.2009).
 COm(2008) 233.
 COm(2008) 469.

144 

 •
 •

a regulation on the protection of animals at the time of killing (
a  directive  (
(5 November).

2)  on  the  protection  of  animals  used  for  scientific  purposes 

1) (18 September);

SECURITY ANd FREEdOm

On 10 September the Commission also adopted a communication (3) on an action plan 
for the implementation of the EU animal health strategy for the period 2007–13. The 
action plan is based on the following objectives: choosing priorities for EU action; mod-
ernising and adapting the animal health framework; better prevention, surveillance and 
crisis preparedness; scientific knowledge, innovation and research.

On 3 September the European Parliament adopted a resolution on the cloning of animals 
for food supply. It called on the Commission to submit proposals prohibiting the follow-
ing practices for food supply purposes: the cloning of animals; the farming of cloned 
animals or their offspring; the placing on the market of meat or dairy products derived 
from cloned animals or their offspring; the importing of cloned animals.

Furthermore, in order to reduce the burden of work and administrative constraints on the 
competent authorities of the member States, the agri-food industry, trade operators and 
the Commission, on 15 July the Council adopted a directive on a simplified procedure 
for updating and publishing information in the veterinary and zootechnical fields (4).

Transport safety and security

General

On 24 September the European Parliament and the Council adopted a directive (5) on 
the inland transport of dangerous goods, with a view to:

 •

 •
 •

improving the safety of the transport of dangerous goods by all three modes of land 
transport;
contributing to environmental protection;
facilitating the transport of dangerous goods and the functioning of the internal 
market for transport operators by harmonising transport conditions.

(1) 
(2) 
(3) 
(4) 
(5) 

 COm(2008) 553.
 COm(2008) 543.
 COm(2008) 545.
 directive 2008/73/EC (OJ L 219, 14.8.2008).
 decision 2008/68/EC (OJ L 260, 30.9.2008).

RISk mANAGEmENT 

145

Maritime safety and security

On 11 march, with a view to rationalising the rules on protection in the event of maritime 
pollution, the Commission tabled a proposal (1) to amend the directive (2) on ship-source 
pollution and on the introduction of penalties for infringements. The new directive aims 
to establish a minimum framework of criminal law to deal with serious infringements 
involving ship-source pollution.

Aviation safety and security

On 20 February the European Parliament and the Council adopted a regulation on 
common rules in the field of civil aviation and establishing a European Aviation Safety 
Agency (3). This was the first step in giving the EASA broader powers to include the 
operational needs of airline companies and their aircraft, pilots’ licences and the safety 
of third-country operators.

The Commission’s proposal presented in the ‘single European sky’ legislative package of 
25 June (4) constitutes the second step, namely the extension of the Agency’s respon-
sibilities to include the safety of airport infrastructure, air traffic management and air 
navigation services.

On 11 march the European Parliament and the Council also updated the common rules 
in the field of civil aviation security (5).

Road safety and security

On 19 march the Commission proposed a directive facilitating cross-border enforcement 
in the field of road safety (6). The central feature of the proposal is the setting-up of a sys-
tem for the exchange of data between the registration authorities in the member States 
so as to identify the holders of the registration certificates of vehicles concerned.

On 19 November the European Parliament and the Council also adopted a directive on 
road infrastructure safety management (7).

On 28 November the Council adopted conclusions on the coordination of police action 
on road safety, emphasising the need for such coordination to be ensured through 

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 

 COm(2008) 134 (OJ C 202, 8.8.2008).
 directive 2005/35/EC (OJ L 255, 30.9.2005).
 Regulation (EC) No 216/2008 (OJ L 79, 19.3.2008).
 See ‘Air transport’ in Chapter II, Section 2, ‘Transport’, of this Report.
 Regulation (EC) No 300/2008 (OJ L 97, 9.4.2008).
 COm(2008) 151 (OJ C 202, 8.8.2008).
 directive 2008/96/EC (OJ L 319, 29.11.2008).

146 

SECURITY ANd FREEdOm

contacts between police officers, the approximation of equipment and techniques, and 
joint action.

Rail safety and security

On 16 december the European Parliament and the Council adopted a directive on safety 
on the Community’s railways (1) and a regulation (2) amending the regulation establishing 
the European Railway Agency in order to adapt the Agency’s legislative framework to the 
tasks deriving from the new directive. The purpose of the directive and the regulation is 
to improve the cross-acceptance of railway vehicles in the European Union and thereby 
further the operation of the internal market (3).

Energy security and safety of installations

On 22 may the Commission adopted a communication ‘Addressing the international 
challenge of nuclear safety and security’ (4), in which it takes stock of what has been 
achieved in the field of nuclear safety and security in third countries. It lays down strate-
gic, geographic and technical criteria for cooperation programmes with these countries, 
together with priorities for allocating Community assistance in this area.

On 8 September the Commission also adopted the sixth situation report on radioactive 
waste and spent fuel management in the European Union (5). The Commission notes 
that maturity level has been reached in the scientific and technical areas relating to 
geological disposal. It is therefore necessary to encourage and facilitate its rapid imple-
mentation, because of the potential consequences of radioactive waste and spent fuel 
management for health and safety, even though implementation-oriented research and 
development needs to continue.

On 26 November the Commission adopted a proposal for a directive (6) with a view to 
relaunching the process of setting up a Community framework for nuclear safety, by 
updating and replacing the proposal for a Council (Euratom) directive setting out basic 
obligations and general principles on the safety of nuclear installations. The general ob-
jective of the proposal is to achieve, maintain and continuously improve nuclear safety 
in the Community and to enhance the role of the regulatory bodies.

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

 directive 2008/110/EC (OJ L 345, 23.12.2008)
 Regulation (EC) No 1335/2008 (OJ L 354, 31.12.2008)
 See ‘Rail transport’ in Chapter II, Section 2, ‘Transport’, of this Report.
 COm(2008) 312 (OJ C 10, 15.1.2009).
 COm(2008) 542.
 COm(2008) 790.

RISk mANAGEmENT 

147

Civil protection and European Union Solidarity Fund

Civil protection

On 5 march the Commission adopted a communication on reinforcing the Union’s dis-
aster response capacity (1). In order to meet the growing challenges posed by natural 
or man-made disasters within or outside the Union, the Commission recommends an 
integrated approach to response by the Union. In particular, it proposes developing 
the Community civil protection machinery (monitoring and information centre) into a 
genuine operations centre, boosting European disaster response resources, and imple-
menting the European consensus on humanitarian aid so as to permit the provision of 
humanitarian assistance (2).

Furthermore, in its declaration of 11 march, the European Parliament called on the 
member States and the Commission to implement the necessary processes and re-
sources to develop an efficient early warning system for citizens in the event of immi-
nent or developing major emergencies throughout the EU. It urged the Commission to 
present appropriate legislative proposals taking into account all the risks and policies 
involved.

On 27 and 28 November the Council adopted a series of conclusions concerning civil 
protection. The purpose of these conclusions was to strengthen relations between the 
European Union and the United Nations concerning the capacity to respond to disasters, 
to introduce European training in disaster management, and to enhance civil protection 
capabilities by means of a European mutual assistance system building on a modular 
approach to civil protection.

European Union Solidarity Fund

Several decisions on the mobilisation of the EU Solidarity Fund were taken in 2008. The 
European Parliament and the Council approved the requests for assistance from the 
fund submitted by:

 •
 •

the United kingdom, which was hit by floods in June and July 2007 (11 march) (
Greece and Slovenia, hit respectively by forest fires in August 2007 and floods in 
September 2007 (5 June) (4);

3);

(1) 
(2) 
(3) 
(4) 

 COm(2008) 130 (OJ C 202, 8.8.2008).
 See ‘General’ in Chapter V, Section 3, ‘humanitarian aid’, of this Report.
 decision 2008/267/EC (OJ L 85, 27.3.2008).
 decision 2008/469/EC (OJ L 162, 21.6.2008).

148 

SECURITY ANd FREEdOm

 •

 •

France, following the passage of hurricane dean, which hit Guadeloupe and 
martinique in August 2007 (22 October) (1);
Cyprus, following the drought (18 december) (

2).

In addition, the annual report on the European Union Solidarity Fund (2007) was also 
adopted by the Commission on 12 November (3).

Protection of the financial interests of the European Union

The annual report on the protection of the Communities’ financial interests and the fight 
against fraud (4) was presented by the Commission on 22 July. The report takes stock 
of the measures adopted by the Community and member States in 2007 to protect the 
Communities’ financial interests and contains details of the main results.

On 18 december the Council adopted two regulations concerning medals and tokens 
similar to euro coins, in order to strengthen and clarify the protection of euro coins 
against such medals and tokens (5). On the same date it also adopted two regulations 
on the protection of the euro against counterfeiting (6).

In addition, a regulation (7) on mutual assistance between the administrative authorities 
of the member States and cooperation between the latter and the Commission to ensure 
the correct application of the law on customs and agricultural matters was adopted by 
the European Parliament and the Council on 9 July.

General references and other useful links

 •

 •

directorate-General for health and Consumers: 
http://ec.europa.eu/dgs/health_consumer/index_en.htm

Public health: 
http://ec.europa.eu/health/index_en.htm

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 

 decision 2008/879/EC (OJ L 314, 25.11.2008).
 COm(2008) 732.
 COm(2008) 722.
 COm(2008) 475.
 Regulations (EC) Nos 46/2009 and 47/2009 (OJ L 17, 22.1.2009).
 Regulations (EC) Nos 44/2009 and 45/2009 (OJ L 17, 22.1.2009).
 Regulation (EC) No 766/2008 (OJ L 218, 13.8.2008).

RISk mANAGEmENT 

149

 •

 •

 •

 •

 •

Consumers: 
http://ec.europa.eu/consumers/index_en.htm

Food safety: 
http://ec.europa.eu/food/food/index_en.htm

Transport: 
http://ec.europa.eu/transport/index_en.htm

Energy: 
http://ec.europa.eu/energy/index_en.htm

European Anti-Fraud Office: 
http://ec.europa.eu/anti_fraud/index_en.html

Chapter V

Europe in the world

Section 1

Proximity ties

Background

Over the last 50 years the European Union has been furthering its integration as well as taking 
in new Member States. Since the accession of Bulgaria and Romania at the beginning of 2007, 
the Commission has developed a range of measures to improve the enlargement process and 
an approach aimed at identifying the main challenges facing candidates for accession, such 
as strengthening the rule of law, administrative and judicial reform, and combating organised 
crime and corruption.

To avoid new dividing lines emerging and promote prosperity, stability and security for all, the 
Commission has concluded action plans with 12 of the Union’s neighbours, which it implements 
under the European neighbourhood policy. The aim is to support programmes of political, eco-
nomic, social and governance reform in the countries concerned.

Enlargement process, pre-accession strategy and  
stabilisation and association process

General

On 5 march the Commission adopted a communication ‘western Balkans: Enhancing the 
European perspective’ (1), in which it presented new initiatives, and consolidated existing 

(1) 

 COm(2008) 127 (OJ C 202, 8.8.2008).

152 

EUROPE IN ThE wORLd

ones, aimed at supporting political and economic development in the countries of the 
western Balkans, so as to help speed up their progress on the road towards membership 
of the European Union. The communication also provides a succinct analysis of the situ-
ation of each partner in the light of developments since the last progress reports were 
presented in November 2007.

Agreements with Albania, Bosnia and herzegovina, the former Yugoslav Republic of 
macedonia, montenegro and Serbia on facilitating the issue of visas and readmission 
entered into force on 1 January (1). The Commission opened dialogues on visa liberalisa-
tion with each of the countries (except Croatia, which already enjoys exemption) and 
presented roadmaps and reform criteria for the lifting of the visa requirement.

The  annual  enlargement  strategy  paper  was  adopted  by  the  Commission  on 
5 November (2). The paper gives an updated overview of the European Union’s enlarge-
ment policy and a summary of progress made over the past 12 months by each of the 
candidate and potential candidate countries. The progress reports for each country, 
published as background documents, provide more detailed assessments.

Financial assistance

On 5 November, to define a clear framework for the enlargement policy, the Commission 
adopted the multiannual financing framework document for all the candidate and po-
tential candidate countries, establishing the 2010–12 financial framework with indicative 
allocations for each beneficiary (3). Over that period, the overall indicative amount of EU 
financial assistance to be provided under the Instrument for Pre-Accession Assistance 
(IPA) (4) is EUR 5.334 billion.

On 11 July the Commission organised a donor conference aimed at raising pledges of 
funding for kosovo’s socioeconomic development. Participants pledged EUR 1.2 billion, 
including 70 % from the European Union and its member States.

On 27 October the Commission adopted the 2007 annual report on the Instrument for 
Structural Policies for Pre-Accession (ISPA) (5), which covers ISPA activities solely in Croatia, 
as the only remaining beneficiary of funds under the instrument. On 15 december it 
adopted the 2007 annual report on the Instrument for Pre-Accession Assistance (6), which 
contains information on operations funded during 2007 and on the conclusions of moni-
toring work, and provides an assessment of the results of implementation.

(1) 

(2) 
(3) 
(4) 
(5) 
(6) 

 See ‘Visas, management of external borders and internal movement’ in Chapter IV, Section 1, ‘management 
of external borders and immigration’, of this Report.
 COm(2008) 674.
 COm(2008) 705.
 Regulation (EC) No 1085/2006 (OJ L 210, 31.7.2006).
 COm(2008) 671.
 COm(2008) 850.

PROxImITY TIES 

Candidate countries

Turkey

153

The European Union–Turkey Association Council met on 27 may, while the European 
Union–Turkey Joint Parliamentary Committee met on 27 and 28 may and on 27 and 
28 November.

Accession negotiations with Turkey continued. By the end of 2008, negotiations had 
been opened on 10 chapters since their start in 2005, and provisionally closed on one.

According to the monitoring report of 5 November (1), Turkey continued to fulfil the 
Copenhagen political criteria sufficiently, although progress on reforms was limited in 
2008. But it had made progress on alignment with the European Union’s legal order and, 
as regards the economic criteria, was a functioning market economy.

Turkey now needs to reinvigorate the process of political reform in order to strengthen 
democracy and human rights, and modernise and develop the country, thus taking 
forward its integration into the European Union.

Croatia

The European Union–Croatia Stabilisation and Association Council met on 28 April. It 
welcomed the progress of the accession negotiations between the European Union and 
Croatia but noted that further work was needed in some areas, such as reforming the 
judiciary, tackling corruption, the return of refugees and state aid. The Stabilisation and 
Association Parliamentary Committee met on 29 and 30 April and on 6 and 7 October.

Concerning the accession negotiations, 22 out of 35 negotiation chapters had been 
opened by the end of 2008, of which seven had been provisionally closed.

According to the monitoring report published on 5 November (2), Croatia continued 
to meet the Copenhagen political criteria and was a functioning market economy. It 
had improved its ability to take on the obligations of membership. Based on the overall 
progress, it should be possible to start the final stage of the accession negotiations 
with Croatia before the end of 2009, provided all the conditions have been met. The 
Commission accordingly proposed an indicative roadmap for the technical conclusion 
of negotiations.

Nevertheless, Croatia needed to sustain its reform efforts, particularly as regards the 
judicial system and public administration, fighting organised crime and corruption, 

(1) 
(2) 

 COm(2008) 674 and SEC(2008) 2699.
 COm(2008) 674 and SEC(2008) 2694.

154 

EUROPE IN ThE wORLd

promoting minority rights, especially refugee return, the prosecution of war crimes 
and access for the International Criminal Tribunal for the former Yugoslavia (ICTY) to 
certain documents in Croatia. A major effort was also required on the restructuring of 
Croatia’s shipyards.

Former Yugoslav Republic of Macedonia

The European Union–former Yugoslav Republic of macedonia Stabilisation and 
Association Parliamentary Committee met on 27 November and the Stabilisation and 
Association Council on 8 december.

According to the monitoring report of 5 November (1), the former Yugoslav Republic of 
macedonia had made some progress in the course of the previous year, but still did not 
meet the Copenhagen political criteria and the key priorities of the accession partner-
ship. In particular, it needed to guarantee free and fair elections and to strengthen the 
dialogue between key political parties and actors to allow the effective functioning of 
political institutions and speed up the pace of reform.

Regarding the economic criteria, the economy of the former Yugoslav Republic of 
macedonia had strengthened during the previous year and the country had moved 
closer towards becoming a functioning market economy. It had also made good progress 
in legislative alignment with the European Union’s legal order.

Potential candidate countries

Albania

The European Union–Albania Stabilisation and Association Parliamentary Committee 
meeting of 25 June issued a joint statement in which it encouraged the EU member 
States to ratify the stabilisation and association agreement. Progress was noted in some 
key areas of reform, but further efforts were required in the justice sector and on tackling 
corruption and organised crime. The Committee also noted Albania’s contribution to 
maintaining regional stability.

According to the monitoring report of 5 November (2), Albania had continued to make 
headway on key judicial and electoral reforms, but the rule of law and guarantees as 
to the proper functioning of state institutions required further consolidation to allow 
the political system to function effectively. Albania also needed to ensure the proper 
preparation and conduct of its 2009 parliamentary elections.

(1) 
(2) 

 COm(2008) 674 and SEC(2008) 2695.
 COm(2008) 674 and SEC(2008) 2692.

PROxImITY TIES 

Bosnia and Herzegovina

155

In the light of the progress achieved in the four key areas identified by the European 
Union in 2005 (1), a stabilisation and association agreement with Bosnia and herzegovina 
and an interim agreement on trade and trade-related matters (2) were signed on 
16 June.

The stabilisation and association agreement is aimed at supporting efforts to strengthen 
democracy and the rule of law in Bosnia and herzegovina and to complete the transition 
to a market economy. It is also intended to develop close political relations between the 
European Union and Bosnia and herzegovina and to contribute to the gradual develop-
ment of a free-trade area.

The interim agreement, which entered into force on 1 July, is aimed at implementing the 
provisions of the stabilisation and association agreement dealing with the free move-
ment of goods as rapidly as possible, on the basis of reciprocity and mutual interest.

The Council also adopted a regulation laying down procedures for the adoption of de-
tailed rules for the implementation of certain provisions of both agreements (3).

On 31 October the Council and the Commission presented a joint report on the European 
Union’s future policy in Bosnia and herzegovina which underlined the importance of a 
stronger EU engagement with the country.

According to the monitoring report of 5 November (4), beyond the developments that led 
to the signing of the stabilisation and association agreement, Bosnia and herzegovina 
urgently needed to achieve the necessary political consensus and to proceed with re-
forms, in particular with a view to assuming greater ownership of its governance. It also 
needed to set out a shared vision of its future in order to ensure the proper functioning 
of its institutions, to establish more efficient and effective state structures and to speak 
with a single voice on matters relating to the European Union.

Montenegro

The interim agreement between the European Community and montenegro on trade 
and trade-related matters entered into force on 1 January and its implementation is 
proceeding satisfactorily.

(1) 

(2) 
(3) 
(4) 

 Police reform, full cooperation with the International Criminal Court for the former Yugoslavia, public 
broadcasting legislation, legislative framework and administrative capacity for proper implementation 
of the stabilisation and association agreement.
 decision 2008/474/EC (OJ L 169, 30.6.2008).
 OJ L 169, 30.6.2008.
 COm(2008) 674 and SEC(2008) 2693.

156 

EUROPE IN ThE wORLd

According to the monitoring report of 5 November (1), montenegro had made signifi-
cant progress in addressing the political criteria, in improving its legal framework and in 
strengthening its institutional infrastructure. however, efforts were needed to continue 
reform of the judicial system, consolidate the rule of law and step up the fight against 
corruption and organised crime.

On 15 december montenegro formally presented its application for membership of the 
European Union.

Serbia

The stabilisation and association agreement and the interim agreement on trade were 
signed on 29 April (2). The Council, however, decided that implementation of the lat-
ter agreement and ratification of the former should be subject to unanimous recogni-
tion by the Council that Serbia was cooperating fully with the International Criminal 
Tribunal for the former Yugoslavia. The Serbian Parliament ratified the agreements on 
9 September.

In its conclusions of 22 July, the Council welcomed the arrest of Radovan karadžić, who 
had been indicted by the ICTY for genocide, crimes against humanity and war crimes, 
and encouraged the Serbian government to continue along this road. with this latest 
arrest, following that of Goran Župljanin in June, only two of the indicted suspects remain 
at large (Ratko mladić and Goran hadžić).

According to the monitoring report of 5 November (3), Serbia had made progress in its 
efforts to meet the political criteria. It had also demonstrated that it had the adminis-
trative capacity to make significant progress on the path towards membership of the 
European Union. however, reforms had slowed down over the last year during a period 
of elections and further efforts needed to be made to ensure progress on the reform of 
the judicial system and measures to prevent corruption.

According to the Commission, it should be possible to grant candidate status to Serbia 
in 2009, if the conditions are met. Serbia needed to follow up the positive steps it had 
taken by ensuring full cooperation with the ICTY and persevering with its reform pro-
gramme, which would allow it to make tangible progress in priority reform areas, such 
as strengthening the rule of law and stepping up economic and budgetary reforms.

(1) 
(2) 
(3) 

 COm(2008) 674 and SEC(2008) 2696.
 COm(2007) 743 and COm(2007) 744.
 COm(2008) 674 and SEC(2008) 2698.

PROxImITY TIES 

Kosovo (1)

157

On 18 February, following the adoption by the kosovo Assembly of a resolution declaring 
kosovo independent (on 17 February), the Council adopted conclusions in which it noted 
that member States would decide on their relations with kosovo in accordance with na-
tional practice and international law. It also recalled the European Union’s longstanding 
commitment to the stability of the western Balkans region and reiterated the European 
Union’s readiness to play a leading role in strengthening stability in the region.

In the framework of its comprehensive approach towards kosovo, the Council decided 
on 4 February (2) to launch a police and rule of law mission (EULEx kosovo) under the 
European security and defence policy (3) and to appoint a European Union special repre-
sentative to kosovo. The objective of EULEx kosovo is to support the kosovo authorities 
by monitoring and advising on all areas related to the rule of law, in particular the po-
lice, justice, customs and correctional services. The European Council of 19 and 20 June 
confirmed kosovo’s European perspective.

According to the monitoring report of 5 November (4), the constitution adopted by 
kosovo in April was in line with European standards and a considerable amount of key 
legislation had been adopted. Strengthening institutions and the rule of law and en-
hancing dialogue and reconciliation between the communities nevertheless remained 
major challenges.

The Commission would produce a feasibility study for autumn 2009 on ways of further-
ing kosovo’s political and socioeconomic development, and examine how best kosovo 
could progress, as part of the region, towards integration with the European Union under 
the stabilisation and association process.

International Criminal Tribunal for the former Yugoslavia

On 13 march the Council approved a one-year extension to the travel restrictions on 
those engaged in activities that help persons indicted by the ICTY to continue to evade 
justice (5). On 15 September it adopted a decision to remove the names of certain per-
sons connected with Radovan karadžić from this list (6).

(1) 
(2) 
(3) 

(4) 
(5) 
(6) 

 As defined by United Nations Security Council Resolution 1244/99.
 Joint Action 2008/124/CFSP (OJ L 42, 16.2.2008).
 See ‘Contribution to stability in the Balkans and in South Caucasus’ in Chapter V, Section 4, ‘European 
security strategy and European security and defence policy’, of this Report.
 COm(2008) 674 and SEC(2008) 2697.
 Common Position 2008/223/CFSP (OJ L 70, 14.3.2008).
 decision 2008/732/CFSP (OJ L 247, 16.9.2008).

158 

EUROPE IN ThE wORLd

The list of persons subject to restrictive measures (freezing of funds and economic re-
sources) was amended on 28 July (1) and again on 29 September (2).

Further information on the ICTY may be found under ‘Common foreign and security 
policy’ in Section 4 of this chapter.

Turkish Cypriot community

On 16 June the Council amended the ‘green line regulation’ (3) concerning further trade 
facilitation on Cyprus (4). On 27 August it adopted the annual report on implementation 
of the regulation and on the situation resulting from its application (5).

On 15 September the Commission also adopted the second annual report 2007 (6) on 
the implementation of the regulation on Community financial support to encourage 
the economic development of the Turkish Cypriot community (7).

European neighbourhood policy

General

On 3 April the Commission presented a communication reviewing developments in 2007 
in relations between the European Union and its partners concerned by the European 
neighbourhood policy (ENP) (8). The communication summarises the substantial progress 
made by partner countries and the areas where further efforts are required. Its annexes 
contain the national progress reports and a sectoral progress report.

European Neighbourhood and Partnership Instrument

On the basis of the multiannual indicative programmes for the period 2007–10, the 
Commission adopted annual action programmes over the year for the countries covered 
by the European Neighbourhood and Partnership Instrument (9) and regional action 
programmes for the eastern European and southern mediterranean regions. A total 
of approximately EUR 1.735 billion was allocated in 2008 to projects and assistance 

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 

 Regulation (EC) No 738/2008 (OJ L 201, 30.7.2008).
 Common Position 2008/761/CFSP (OJ L 260, 30.9.2008).
 Regulation (EC) No 866/2004 (OJ L 161, 30.4.2004).
 Regulation (EC) No 587/2008 (OJ L 163, 24.6.2008).
 COm(2008) 529.
 Regulation (EC) No 389/2006 (OJ L 65, 7.3.2006).
 COm(2008) 551.
 COm(2008) 164.
 European neighbourhood policy partner countries and Russia.

PROxImITY TIES 

159

programmes for these countries, including EUR 447 million for the countries of eastern 
Europe and some EUR 1.160 billion for the southern mediterranean countries. A total of 
EUR 128 million was earmarked for cross-border cooperation.

The bilateral programmes for eastern Europe and South Caucasus focused, among oth-
er things, on reform of the judiciary (Armenia, Azerbaijan, Georgia), the health sector 
(moldova), rehabilitation measures (the Georgian–Abkhaz conflict zone) and border 
controls (eastern Europe).

during the year programmes were also launched at regional level to address challenges 
of common interest such as: energy security and efficiency, environmental protection, 
transport safety and the interconnection of networks (ENP eastern region), justice and 
migration flows, investment promotion, cultural heritage and gender equality (ENP 
southern region). Four new projects were also adopted to support the launch of the new 
Union for the mediterranean initiative (see below): de-pollution of the mediterranean, 
maritime and land highways, civil protection and a mediterranean solar plan. Information 
and communication activities were planned throughout the ENP region, in particular 
involving liaison with the media.

Institutional twinning activities continued to develop rapidly in all the ENP countries 
and were introduced in Georgia and Israel for the first time. Overall 11 ENP countries are 
currently implementing 85 twinning operations (with a total of 170 operations ongoing 
or at the formulation or identification stage). more than 100 events were also organised 
in 2008 under TAIEx, the technical assistance and information exchange programme, 
while the ENP countries became eligible in July for the instrument of support for the 
improvement of public institutions and management systems (SIGmA).

Following the establishment of an instrument for nuclear safety cooperation (1) and a 
stability instrument (2), the Commission adopted action programmes for 2008 setting 
out detailed practical rules for implementing the two instruments. decisions were taken 
allocating a total of EUR 71 million for programmes in the nuclear security field and 
EUR 27 million for non-proliferation programmes.

The 2007–13 cross-border cooperation (CBC) programmes between the ENP partners 
and the European Union member States were adopted by the Commission for 2008 for 
a total of EUR 907 million. The core objective of these programmes is to support sustain-
able development along both sides of the European Union’s external borders in order 
to help decrease differences in living standards across these borders and to address the 
challenges and opportunities following on EU enlargement.

(1) 
(2) 

 Regulation (Euratom) No 300/2007 (OJ L 81, 22.3.2007).
 Regulation (EC) No 1717/2006 (OJ L 327, 24.11.2006).

160 

EUROPE IN ThE wORLd

Under the neighbourhood policy, the European Union also supports the Palestinian 
Authority’s reform efforts. A new Palestinian–European mechanism for the management 
of socioeconomic aid, Pegase, which replaced the temporary international mechanism (1), 
was introduced in February to finance the Authority’s development and reform plan.

Black Sea region

The Commission adopted a report on 19 June on the first year of implementation (2) of 
‘Black Sea synergy’, the new regional cooperation initiative launched in April 2007 (3). 
The report stated that initial results revealed the practical utility and the potential of 
the European Union’s initiative but that continued progress would require the active 
involvement of a growing number of actors, involving both member States and Black 
Sea partners.

The European Economic and Social Committee adopted an exploratory opinion on this 
subject on 10 July in which it recommended the establishment of a network of civil 
society organisations in the Black Sea region.

Southern Mediterranean

Relations between the European Union and its mediterranean partners were given fresh 
impetus this year. The spring European Council approved the principle of a Union for 
the mediterranean including the member States of the European Union and the non-
EU mediterranean coastal states. It called on the Commission to present to the Council 
the necessary proposals for defining the modalities of this enhanced partnership with 
a view to the summit scheduled for Paris in July.

In accordance with the European Council’s decision, on 20 may the Commission adopted 
a communication ‘Barcelona process: Union for the mediterranean’ (4), in which it outlined 
the structures of the process, whose objective is to revive the European Union’s relations 
with its mediterranean partners and give them greater visibility. This would in particular 
entail the establishment of a co-presidency and secretariat, a joint standing committee 
of European and mediterranean representatives, biennial summits of heads of State or 
Government, and additional regional and subregional projects.

The proposals contained in the communication were presented at the inaugural summit 
of the Union for the mediterranean, held in Paris on 13 July, at which a joint declaration 
was adopted by the meeting of heads of State or Government.

(1) 
(2) 
(3) 
(4) 

 See ‘Occupied Palestinian territories’ in Chapter V, Section 4, ‘middle East peace process’, of this Report.
 COm(2007) 160 (OJ C 181, 3.8.2007).
 COm(2008) 391.
 COm(2008) 319 (OJ C 10, 15.1.2009).

PROxImITY TIES 

161

The economic and social councils and other such institutions in the Euro-mediterranean 
region subsequently met in Rabat from 14 to 16 October. The summit emphasised the 
social dimension of relations between the European Union and the partner countries. 
It recommended accordingly that all initiatives, programmes and projects carried out 
under mediterranean policies should reflect the social dimension, a key element for the 
sustainable development of partner countries.

The foreign ministers of the 43 Euro-mediterranean partner countries met in marseille on 
3 and 4 November, where they adopted the mandate, structure and institutional arrange-
ments of the Union for the mediterranean. In order to advance the regional integration 
process, they also agreed on priorities for the 2009 working programme. The industry 
ministers of the countries concerned also met on 5 and 6 November, the employment 
ministers on 9 and 10 November and the health ministers on 17 November.

On a more specific note, the first Agadir investment forum was held in Brussels on 
8 April. Leaders of the signatory countries of the agreement (Egypt, Jordan, morocco 
and Tunisia) met senior EU policymakers and business representatives for talks designed 
to boost regional integration and to sharply increase EU investment in the southern 
mediterranean.

On the bilateral relations front, a number of association council meetings took place over 
the year: with Algeria (10 march), Egypt (28 April), Israel (16 June), morocco (13 October), 
Jordan (10 November) and Tunisia (11 November). The topics discussed at these meet-
ings included progress in the implementation of the European neighbourhood policy 
action plans and relations with the European Union.

At the meeting of the EU–morocco Association Council, the European Union approved 
a package of measures designed to strengthen the partnership with morocco. These 
measures concerned, in particular, cooperation in political and security matters, the 
preparation of a comprehensive and deeper free-trade agreement (FTA), the gradual 
integration of morocco into a number of EU sectoral policies, and the development 
of people-to-people exchanges. morocco was also granted advanced status in the 
European neighbourhood policy.

On 12 February the Council signed a protocol (1) to the association agreement with Israel 
in which it established general principles governing Israel’s participation in Community 
programmes. On 15 October the Commission adopted a draft decision providing for 
the establishment of a human rights subcommittee (2) to help implement the European 
Union–Israel ENP action plan (3).

(1) 
(2) 
(3) 

 decision 2008/372/EC (OJ L 129, 17.5.2008).
 COm(2008) 646.
 See ‘Israel’ in Chapter V, Section 4, ‘middle East peace process’, of this Report.

162 

EUROPE IN ThE wORLd

On 24 July the Commission was given a mandate by the Council to negotiate a frame-
work agreement with Libya that, once in force, would govern European Union–Libya 
political, trade and cooperation relations. The negotiations started in November.

On 12 december the Commission adopted a proposal for a decision on the signature 
and provisional application of certain provisions of a Euro-mediterranean association 
agreement with Syria (1). The proposed revised association agreement between the 
European Union and Syria will establish a new, closer relationship within the context of 
the Euro-mediterranean partnership.

The economic, social and institutional reform process in Lebanon also received support 
under the European neighbourhood policy (2).

Eastern Europe

On 3 december the Commission adopted a communication ‘Eastern partnership’ (3) on 
its relations with the countries of eastern Europe (Armenia, Azerbaijan, Belarus, Georgia, 
moldova and Ukraine). The proposal for an enhanced partnership contains a bilateral 
and a multilateral track.

The bilateral track is designed to create a closer relationship with the European Union 
and to foster stability and prosperity in the partner countries. It includes the following 
components: the prospect of association agreements and negotiations to put in place 
deep and comprehensive free-trade areas with each country; progressive visa liberali-
sation; deeper cooperation to enhance energy security; and support for economic and 
social policies designed to reduce disparities within each partner country.

The multilateral track will provide a new framework where common challenges can be 
addressed through four policy platforms on: democracy, good governance and stability; 
economic integration and convergence with EU policies; energy security; and contacts 
between people. It will complement the ‘Black Sea synergy’ initiative, which already ef-
fectively covers wider regional issues. The Commission proposed launching the eastern 
partnership in spring 2009.

At bilateral level, cooperation council meetings took place with Ukraine on 11 march and 
moldova on 27 may. The relaxation of visa and readmission arrangements (4) (in force in 
both countries since 1 January 2008) was welcomed at these meetings.

(1) 
(2) 
(3) 
(4) 

 COm(2008) 853. See ‘Syria’ in Chapter V, Section 4, ‘middle East peace process’, of this Report.
 See ‘Lebanon’ in Chapter V, Section 4, ‘middle East peace process’, of this Report.
 COm(2008) 823. 
 See ‘Visas, management of external borders and internal movement’ in Chapter IV, Section 1, ‘management 
of external borders and immigration’, of this Report.

PROxImITY TIES 

163

At the European Union–Ukraine summit in Paris on 9 September a decision was adopted 
to conclude an association agreement at the earliest opportunity (one of the main pillars 
of which would be a free-trade area with the European Union) (1). The summit also saw 
the opening of a visa dialogue with the long-term perspective of establishing a mutual 
visa-free regime between the European Union and Ukraine.

On 13 October the Council adopted conclusions in which it welcomed the increase in 
the pace of the European Union’s relations with moldova and stated that the European 
Union was ready to have a deeper relationship and to negotiate a new and ambitious 
agreement with moldova soon (this agreement would include the aim of a free-trade 
area).

A mobility partnership signed with moldova on 5 June (2) cleared the way for closer 
cooperation on migration management.

Relations between the European Union and Belarus remained frozen following the 
one-year extension of the restrictive measures on certain persons by the Council on 
7 April (3).

The European Union nevertheless continued to monitor the situation in Belarus closely, 
several statements being issued by the Council and the Commission and a number of 
resolutions being adopted by the European Parliament. In a statement, the European 
Union expressed regret that the situation of democracy, human rights and the rule of 
law was not improving in Belarus.

Following the parliamentary elections of 28 September and the positive developments 
in the run-up to voting (the release of the last political prisoners and the invitation to the 
Organisation for Security and Cooperation in Europe (OSCE) to observe the elections), 
the Council took stock of the situation in Belarus. It noted that some progress had been 
made during the electoral campaign compared with previous elections, but that the 
elections had still failed to meet the OSCE democratic criteria.

It consequently called, on 13 October, for gradual re-engagement with Belarus. In order 
to encourage dialogue with the Belarusian authorities and the adoption of positive 
measures to strengthen democracy and respect for human rights, it decided that the 
travel restrictions imposed on certain leading figures would not apply for a period of 
six months, reviewable.

The European Parliament adopted a resolution on the situation in Belarus on 9 October 
in which it called on the Council and the Commission to continue the dialogue with and 

(1) 

(2) 
(3) 

 See ‘Bilateral negotiations on free-trade agreements’ in Chapter V, Section 2, ‘International trade’, of this 
Report.
 IP/08/893.
 Common Position 2008/288/CFSP (OJ L 95, 8.4.2008).

164 

EUROPE IN ThE wORLd

devise a policy vis-à-vis Belarus, based on a gradual step-by-step approach, containing 
benchmarks, timetables, a revision clause and adequate financial resources.

Caucasus

On 17 January the European Parliament adopted a resolution on a more effective EU 
policy for South Caucasus. It welcomed the inclusion of Armenia, Azerbaijan and Georgia 
in the ENP and highlighted the geopolitical importance of these countries, not least in 
matters relating to energy. Parliament also reaffirmed that the principal objectives of the 
European Union were to encourage the development of the South Caucasus countries 
into open, peaceful, secure and stable states.

Following the outbreak of open conflict in Georgia in August, an extraordinary European 
Council met in Brussels on 1 September. The European Council condemned Russia’s 
unilateral decision to recognise the independence of Abkhazia and South Ossetia and 
stated that the European Union was ready to commit itself, including through a presence 
on the ground, to support every effort to secure a peaceful and lasting solution to the 
conflict in Georgia. It also decided to step up relations between the European Union and 
Georgia, including visa facilitation measures and the possible establishment of a full and 
comprehensive free-trade area as soon as the conditions were met.

The European Council noted with concern the impact which the current crisis was having 
on the whole of the region. It considered it necessary to support regional cooperation 
and to step up the European Union’s relations with its eastern neighbours, in particular 
through the development of the ‘Black Sea synergy’ initiative and the establishment of 
a new eastern partnership.

In a resolution adopted on 3 September, Parliament expressed its firm condemnation 
of all those who resorted to force and violence and called on Russia to respect Georgia’s 
sovereignty and territorial integrity.

In accordance with the conclusions of the extraordinary European Council, the Council 
decided at its meeting of 15 and 16 September to send an independent civilian observer 
mission to Georgia (EUmm Georgia) under the European security and defence policy. 
The mission was tasked with contributing to the stabilisation and normalisation of the 
situation in the areas affected by the conflict, to oversee the deployment of Georgian 
police forces and to observe compliance with human rights and the rule of law. The 
Council also decided to appoint a European Union special representative for the crisis 
in Georgia (1).

(1) 

 Joint Actions 2008/736/CFSP (OJ L 248, 17.9.2008), 2008/759/CFSP and 2008/760/CFSP (OJ L 259, 
27.9.2008). See ‘Contribution to stability in the Balkans and in South Caucasus’ in Chapter V, Section 4, 
‘European security strategy and European security and defence policy’, of this Report.

PROxImITY TIES 

165

The Council also noted with satisfaction the contributions announced by the member 
States with a view to deploying 340 observers in Georgia and in the zones adjacent 
to South Ossetia and Abkhazia by 1 October. It took note of the Commission propos-
al to mobilise financial aid for Georgia of the order of EUR 500 million for the period 
2008–10.

The international donor conference for the reconstruction of Georgia in Brussels on 
22 October pledged up to EUR 3.45 billion in aid. At its meeting of 18 to 20 November, 
the Council approved the Commission proposal to provide rapid assistance to Georgia, 
totalling EUR 50.7 million, following the summer crisis.

On 2 december the Council approved an independent international fact-finding mission 
on the conflict in Georgia. The aim of the mission is to investigate the origins and the 
course of the conflict, including with regard to international law, humanitarian law and 
human rights, and the accusations made in that context.

Arctic

On 20 November the Commission adopted a communication ‘The European Union and 
the Arctic region’ (1). The communication provides a comprehensive review of EU inter-
ests in the Arctic region involving issues falling under the Community’s competence, 
whether individual or shared. It proposes action around three main policy objectives: 
protecting and preserving the Arctic; promoting sustainable use of resources; and en-
hancing Arctic multilateral governance. Consequently, this communication can be re-
garded as the first layer of a European Union Arctic policy. It is also an important step 
forward in implementing the integrated maritime policy.

Relations with Russia

The European Union–Russia summit in khanty-mansiysk (Russia) on 26 and 27 June saw 
the launch of negotiations for the new European Union–Russia agreement to replace 
the 1994 partnership and cooperation agreement (PCA) (in force since 1997). The new 
agreement will build upon the current four ‘common spaces’ and their associated 2005 
roadmaps: the common economic space; the common space of freedom, security and 
justice; the common space of external security; and the common space of research and 
education.

At the summit the European Union and Russia also announced an agreement to cooper-
ate in seven joint cross-border cooperation (CBC) programmes over the period 2007–13, 
to which Russia and the European Community are to contribute EUR 122 million and 

(1) 

 COm(2008) 763.

166 

EUROPE IN ThE wORLd

EUR 307 million, respectively, in addition to contributions from EU member States and 
other partner countries.

In view of the open conflict in Georgia and Russia’s military response, the extraordinary 
Council meeting of 1 September decided to postpone meetings on the negotiation of 
the partnership agreement until troops had withdrawn to the positions held prior to 
7 August.

It also requested a careful in-depth examination of the situation and of the various 
aspects of European Union–Russia relations in the run-up to the summit in Nice on 
14 November.

The European Council of 15 and 16 October noted with satisfaction that Russian troops 
had withdrawn from the zones adjacent to Abkhazia and South Ossetia, and the launch-
ing of the international discussions in Geneva. It nevertheless asked for a full in-depth 
evaluation of European Union–Russia relations.

On 5 November the Commission adopted a communication (1) which reviews relations 
between the European Union and Russia in the following areas: trade and investment; 
energy; external security; human rights; justice, freedom and security; research, educa-
tion and culture; and financial assistance.

Following this communication, negotiations on the new European Union–Russia agree-
ment resumed at the summit in Nice on 14 November.

On a more general level, implementation of the four common spaces specified in the 
partnership and cooperation agreement continued in 2008.

A memorandum on pesticides between the Commission and Russia was signed in this 
connection on 26 march, with the aim of helping to reduce the trade barriers faced by 
food exports from the European Union to Russia (common economic space).

On 24 and 25 April a cooperation plan between the European Agency for the management 
of Operational Cooperation at the External Borders and the Russian border guard service 
was likewise adopted for the period 2007–10 (common space of freedom, security and 
justice).

The permanent partnership council met to discuss energy (on 8 October), justice 
and home affairs (on 24 and 25 April and 14 and 15 October) and foreign affairs (on 
28 October).

(1) 

 COm(2008) 740.

ThE EUROPEAN UNION IN ThE GLOBAL ECONOmY  

167

General references and other useful links

 •

 •

 •

 •

directorate-General for Enlargement: 
http://ec.europa.eu/enlargement/index_en.htm

directorate-General for External Relations: 
http://ec.europa.eu/external_relations/index_en.htm

International Criminal Tribunal for the former Yugoslavia: 
http://www.icty.org/

European neighbourhood policy: 
http://ec.europa.eu/world/enp/index_en.htm

Section 2

The European Union in the global economy

Background

The European Union must continue its efforts to complete the single market, continue to pro-
mote increased global liberalisation and free and fair trade, and resist protectionism. The dis-
mantling or reduction of high customs duties and non-tariff barriers to Community exports 
must, while taking account of development-related considerations, constitute one of the main 
priorities in the Union’s trade policy.

The Commission’s strategy in this matter involves expanding the competitive space for European 
firms beyond the physical boundaries of the single market, expanding the regulatory space of 
the single market by promoting cooperation on European standards and values abroad, and 
ensuring that the benefits of openness reach European citizens.

International trade

General

On 27 October the Commission presented a report assessing the competitiveness of 
European trade in a changing global economy. The report notes that since the mid-1990s 
there has been a major redistribution of market shares not only between emerging and 
developed countries but also among developed countries themselves. The European 
Union has, on the whole, maintained its share of the global market in this competitive 

168 

EUROPE IN ThE wORLd

environment. The Union remains the world’s biggest exporter of manufactured goods, 
and dominates the markets for high-quality products. however, the report finds that 
the European Union must focus on investment in its high-technology manufacturing 
sector and continue to improve its market share in the fast-growing economies of Asia. 
The report reinforces the economic arguments behind the launch of the European 
Commission’s ‘Global Europe’ trade policy framework in 2006.

In the framework of the action plan on sustainable consumption and production and 
sustainable industrial policy, the Commission will promote international trade in envi-
ronment-friendly goods and services (1).

Multilateral negotiations: Doha Round

In its resolution of 24 April on reform of the world Trade Organisation, the European 
Parliament reiterated its appeal to all parties concerned, especially the emerging econ-
omies, to show flexibility in order to revive the doha Round and reach an agreement 
that is complete, balanced and beneficial both to the recovery of international trade and 
world growth and to the development of the less developed countries on the planet.

The ministerial negotiations to conclude the doha Round took place in Geneva from 
21 to 30 July. They reached an impasse following a disagreement on the exact wording 
of a special safeguard mechanism which would allow a developing country to increase 
its customs duties in the event of a sharp increase in agricultural imports following an 
opening-up of the market negotiated at the wTO. In december the chairmen of the ag-
ricultural and industrial products negotiating groups presented new texts which could 
have formed the basis for a decision on the arrangements for tariff reductions and other 
aspects of the agricultural negotiations (domestic subsidies and support for exports). 
however, the director-General of the wTO considered that the political conditions for 
a ministerial meeting capable of reaching agreement on these arrangements were not 
in place.

The Council adopted conclusions on the doha Round at its meeting of 15 September. 
The European Parliament stated its position on this subject in a resolution adopted on 
9 October.

Bilateral negotiations on free-trade agreements

during the year bilateral negotiations with a view to concluding free-trade agreements 
 continued with India, South korea and the countries of the Association of South-East 

(1) 

 See ‘Small and medium-sized enterprises’ in Chapter II, Section 2, ‘Innovation and enterprise policy, of 
this Report.

ThE EUROPEAN UNION IN ThE GLOBAL ECONOmY  

169

Asian Nations, on the basis of the negotiating directives adopted by the Council in 
April 2007.

Negotiations also continued with the countries of the Gulf Cooperation Council, Central 
America and the Andean Community.

In February, following its accession to the world Trade Organisation, FTA negotiations 
were opened with Ukraine as an integral part of an association agreement.

Market access strategy

The implementation of the new strategy for market access launched in 2007 (1) contin-
ued throughout the year in order to improve access for European exporters to foreign 
markets. The stronger partnership between the Commission, the member States and 
European businesses to identify, tackle and remove trade barriers proved to be effective. 
In 2008 the expert working groups that looked into new sectors (automobiles, informa-
tion and communications technologies, services) and the setting-up of market access 
teams in almost 30 countries enabled substantial progress to be made.

On 16 december the Commission adopted a communication ‘Reporting on market ac-
cess and setting the framework for more effective international regulatory coopera-
tion’ (2). This communication is the first report on market access. It puts forward the 
approach to be followed for the European Union to achieve its objective of openness at 
home and abroad and explains in particular how it can gain fair and open access to those 
third-country markets that matter most to European businesses, especially through regu-
latory cooperation. This report marks a further step in the efforts to reinforce the external 
dimension of the Lisbon strategy for growth and jobs beyond 2010.

Settlement of disputes

In 2008 the European Union was involved in 33 wTO trade disputes (15 as complain-
ant, 18 as defendant), most of them with the United States (where the European Union 
was the complainant in seven cases and the defendant in five). The most notable case 
continues to be the Airbus–Boeing dispute concerning alleged subsidies to these 
manufacturers.

This dispute was the subject of a resolution adopted by the European Parliament on 
9 July. Parliament fully supported the defence of EU interests in the pending dispute set-
tlement proceedings before the wTO, but doubted whether wTO rulings in themselves 

(1) 
(2) 

 COm(2007) 183 (OJ C 181, 3.8.2007).
 COm(2008) 874. See Chapter II, Section 1, ‘The Lisbon strategy: a partnership for growth and employment’, 
of this Report.

170 

EUROPE IN ThE wORLd

would provide the necessary long-term solution the market required as a basis for future 
peaceful and fair competition in this sector which, by contrast, a negotiated solution 
could deliver.

Other disputes involved, for example, Brazil’s restrictions on imported retreaded tyres, 
illegal measures applied by China affecting the import of motor vehicle spare parts, 
measures affecting the supply of financial information services in China, the EU’s banana 
import arrangements, the retaliation measures taken by the United States and Canada 
in the ‘EC-hormones’ dispute, the anti-dumping practice of ‘zeroing’ in the United States, 
and the tariff treatment granted by the European Union to certain information technol-
ogy products.

Commercial policy instruments

The trade barriers regulation (1) was amended by the Council (2) on 12 February to re-
move the prohibition on Community enterprises relying exclusively on bilateral agree-
ments to eliminate trade barriers.

On 11 march the Commission published a notice of initiation of an examination proce-
dure under the trade barriers regulation with regard to the US ban on foreign Internet 
gambling and its enforcement (3).

On 4 July the Commission adopted its 2007 report on third-country trade defence ac-
tions against the Community (4). It counted 143 measures against the Community up 
to the end of 2007, taken mainly by Brazil, China, India, mexico, Turkey, Ukraine and the 
United States.

The 2007 annual report on the Community’s anti-dumping, anti-subsidy and safeguard 
activities (5) was published on 19 december. The report states that 2007 saw a significant 
drop in the number of new cases initiated as well as in the number of investigations 
terminated without the imposition of measures. however, the number of measures 
imposed, both definitive and provisional, remained at a level close to that of 2006. As 
regards reviews, there were more initiations in 2007 than in the previous year.

(1) 
(2) 
(3) 
(4) 
(5) 

 Regulation (EC) No 3286/94 (OJ L 349, 31.12.1994).
 Regulation (EC) No 125/2008 (OJ L 40, 14.2.2008).
 OJ C 65, 11.3.2008.
 COm(2008) 406.
 COm(2008) 877.

ThE EUROPEAN UNION IN ThE GLOBAL ECONOmY  

171

Systems of preferences

On 21 January the Council adopted a regulation introducing autonomous trade prefer-
ences for moldova (1). This regulation provides for duty- and quota-free access to the EU 
markets for all products originating in moldova, except for certain agricultural products 
for which limited concessions are given in the form of exemption from customs duties 
within the limits of tariff quotas or of a reduction in customs duties. The Council amended 
the regulation on 20 November (2).

On 22 July the Council adopted a regulation updating the EU scheme of generalised tariff 
preferences (GSP) for the period 2009–11 (3). The GSP allows manufactured products and 
some agricultural products exported by developing countries access to the Community 
market with total or partial exemption from customs duties. The GSP consists of a general 
scheme for 176 beneficiary countries and territories and two special schemes taking 
account of the various needs of developing countries.

On 9 december the Commission adopted a decision granting 16 developing countries 
duty-free access to the EU market under the GSP+ for the period 2009–11. The GSP+ is a 
special incentive arrangement for sustainable development and good governance (4).

Individual sectors

Textiles

Following the accession of Ukraine to the world Trade Organisation, on 5 June the 
Commission amended (5) the regulation (6) on common rules for imports of certain tex-
tile products from third countries.

On 8 december the Council adopted a decision authorising the signing and the provi-
sional application of an agreement with Belarus amending the existing agreement on 
trade in textile products (7). This decision extended the current bilateral agreement for 
one year until 31 december 2009.

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 

 Regulation (EC) No 55/2008 (OJ L 20, 24.1.2008).
 Regulation (EC) No 1210/2008 (OJ L 328, 6.12.2008).
 Regulation (EC) No 732/2008 (OJ L 211, 6.8.2008).
 IP/08/1918.
 Regulation (EC) No 502/2008 (OJ L 147, 6.6.2008).
 Regulation (EEC) No 3030/93 (OJ L 275, 8.11.1993).
 decision 2008/939/EC (OJ L 335, 13.12.2008).

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EUROPE IN ThE wORLd

double-checking surveillance with China ended on 31 december 2008, thus freeing all 
textile imports from China as of 1 January 2009. A notice to economic operators on this 
subject was adopted by the Commission on 11 december (1).

Steel

On 28 January the Council adopted a regulation abolishing the double-checking system 
for the import of steel products from the former Yugoslav Republic of macedonia to the 
European Community (2).

Following the accession of Ukraine to the world Trade Organisation, on 26 may the 
Council repealed the regulation on administering certain restrictions on imports of cer-
tain steel products from Ukraine (3).

On 24 October the Commission adopted a regulation amending the quantitative limits for 
2008 and setting limits for 2009 for imports of certain steel products from Russia (4).

On 8 december the Council adopted a regulation establishing quantitative limits for 
steel imports from kazakhstan (5) to cover the interim period between 1 January 2009 
and the entry into force of a new agreement in the field of steel or kazakhstan’s acces-
sion to the wTO, whichever is earlier.

Customs union

In 2008 the work on establishing e-customs and laying down the modernised Community 
Customs Code was concluded with the adoption of legislation by the European 
Parliament and the Council.

Thus the decision establishing electronic customs systems in Europe (6) was adopted on 
15 January. It provides for a series of measures and deadlines with a view to replacing 
all customs procedures with interconnected national computerised procedures and 
creating a common electronic portal.

On 23 April the regulation on a modernised Community Customs Code (7) was adopted. 
This will replace the present Customs Code dating from 1992 in order to adapt to de-

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 

 OJ C 316, 11.12.2008.
 Regulation (EC) No 79/2008 (OJ L 25, 30.1.2008).
 Regulation (EC) No 455/2008 (OJ L 137, 27.5.2008).
 Regulation (EC) No 1051/2008 (OJ L 282, 25.10.2008).
 Regulation (EC) No 1340/2008 (OJ L 348, 24.12.2008).
 decision No 70/2008/EC (OJ L 23, 26.1.2008).
 Regulation (EC) No 450/2008 (OJ L 145, 4.6.2008).

ThE EUROPEAN UNION IN ThE GLOBAL ECONOmY  

173

velopments in international trade. The aim is to simplify the legislation, and streamline 
and computerise customs procedures.

In the year of the 40th anniversary of the customs union, the Commission proposed 
on 1 April a strategy for its evolution (1). In this communication the Commission lists 
the renewed strategic objectives for customs, and proposes a coordinated approach 
to develop new working methods and competencies for customs. In its conclusions of 
14 may the Council asked the Commission to develop an implementation plan by the 
end of 2009, in close cooperation with the member States, to achieve these strategic 
objectives.

On 17 march the Council also adopted a regulation to improve the Community system 
of relief from customs duty (2) and a regulation amending the customs duties on goods 
contained in consignments sent by one private individual to another or contained in 
travellers’ personal luggage (3).

On 16 June the Council amended the regulation on Community tariff quotas to open 
new Community tariff quotas at zero rates of duty for specified amounts of certain indus-
trial products (4) and the regulation temporarily suspending the autonomous common 
customs tariff duties on certain industrial, agricultural and fishery products (5).

In addition, on 7 October the Commission adopted a report on the final evaluation of the 
Customs 2007 programme (6), confirming the positive impact of the programme on the 
work of customs in the Community. It has reinforced coordination between the national 
customs administrations of the member States and helped to create a safer environment 
for citizens and protect the Community’s financial interests.

Finally, concerning the report from the Commission about the implementation of the 
action plan on a customs response to counterfeiting, on 25 September the Council in-
vited the Commission, together with the member States, to prepare a new European 
customs action plan to combat intellectual property rights (IPR) infringements for the 
period 2009–12.

In the field of international relations, an agreement on customs cooperation and mu-
tual administrative assistance in customs matters between the European Community 
and Japan was concluded on 28 January (7). The arrangements for implementation of 

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 

 COm(2008) 169 (OJ C 202, 8.8.2008).
 Regulation (EC) No 274/2008 (OJ L 85, 27.3.2008).
 Regulation (EC) No 275/2008 (OJ L 85, 27.3.2008).
 Regulation (EC) No 556/2008 (OJ L 160, 19.6.2008).
 Regulation (EC) No 595/2008 (OJ L 164, 25.6.2008).
 COm(2008) 612.
 decision 2008/202/EC (OJ L 62, 6.3.2008).

174 

EUROPE IN ThE wORLd

the agreement were discussed at the first meeting of the joint customs cooperation 
committee between the European Community and Japan in Brussels on 11 February.

The Commission and China concluded the negotiations for an agreement on the control 
of trade in drug precursors (for signature in 2009), and for an action plan on the customs 
enforcement of IPR. 

Finally, work continued on the implementation of a joint European Union–Russia strategy 
agreed in 2007 in order to reduce congestion at the common border.

Transatlantic relations

The summit between the European Union and the United States was held in Brdo 
(Slovenia) on 10 June. Among the main points discussed were assisting the develop-
ment of kosovo, following up on the middle East peace initiative launched in Annapolis 
in 2007, shaping a comprehensive and binding post-2012 global agreement on tackling 
climate change, and the development of sustainable new forms of energy.

Issues that are already the subject of cooperation in the Transatlantic Economic Council 
(created at the 2007 summit), such as cooperation in the economic field and reducing ad-
ministrative burdens for businesses on both sides of the Atlantic, were also discussed.

As to bilateral issues, the extension of the US programme of visa exemption for a number 
of EU member States was also discussed (1).

On 30 march the agreement on air transport between the European Union and the 
United States entered into force. On 30 June an agreement was also signed in the field 
of civil aviation safety (2).

Relations with other industrialised and high-income countries

G8 summit

The G8 heads of State or Government met in Toyako (Japan) from 7 to 9 July. The 
European Union was represented by the President of the European Commission. The 
G8 leaders focused in particular on the issues of climate change, development, the global 
economy and the increase in the price of foodstuffs and energy, stressing the need for 
a coordinated international response to these challenges.

(1) 

(2) 

 See ‘Visas, management of external borders and internal movement’ in Chapter IV, Section 1, ‘management 
of external borders and immigration’, of this Report.
 See ‘International cooperation’ in Chapter II, Section 2, ‘Transport’, of this Report.

ThE EUROPEAN UNION IN ThE GLOBAL ECONOmY  

175

Japan

The summit between the European Union and Japan was held in Tokyo (Japan) on 
23 April. discussions focused on strengthening cooperation on the key global chal-
lenges, such as climate change and meeting the millennium development goals (mdGs), 
particularly in Africa. The meeting discussed the doha Round negotiations, the global 
economic outlook and regional issues. Bilateral issues were also raised (such as improv-
ing trade and economic links, cooperation in civil aviation and full visa waiver reciproc-
ity). A common declaration was adopted which contains, among other things, an annex 
on cooperation on consumer safety and protection.

An agreement on customs cooperation between the European Union and Japan was 
also signed on 30 January (1).

South Korea

On 14 may the Council adopted a decision authorising the Commission to negotiate an 
update of the 2001 framework agreement for trade and cooperation with South korea (2). 
The negotiations started in June.

The negotiations launched in may 2007 with a view to a free-trade agreement between 
the European Union and South korea progressed substantially in the course of 2008, 
with two rounds of negotiations and regular meetings at ministerial, negotiator and 
expert levels.

In addition, a cooperation agreement on anti-competitive practices and a horizontal 
agreement on air services were initialled in September and November respectively.

Canada

A summit between the European Union and Canada was held in Quebec on 17 October. 
The agenda focused on the financial crisis and the global economy, strengthening the 
economic links between the European Union and Canada and regional issues.

The summit provided a strong political impetus towards rapidly defining the framework 
for a new partnership to strengthen economic integration between the European Union 
and Canada.

(1) 
(2) 

 See Chapter V, Section 2, ‘Customs union’, of this Report.
 OJ L 90, 30.3.2001.

176 

EUROPE IN ThE wORLd

It was also an opportunity to launch common initiatives and to deepen relations on 
current challenges, such as international peace and security, energy and preservation 
of the environment.

New Zealand

A meeting between the EU ministerial troika and New Zealand was held in Ljubljana 
on 30 April. At this meeting the European Union and New Zealand noted with satisfac-
tion the progress made in implementing the new joint declaration on relations and 
cooperation (adopted in September 2007). The discussions also covered international 
and regional issues.

Australia

A new framework for partnership between the European Union and Australia, which is 
to form the basis for bilateral relations in the years to come, was adopted on 29 October. 
It includes an action plan covering in particular security and cooperation in the fight 
against terrorism, cooperation in Asia and the Pacific, education, science and technology, 
and cooperation in the fields of the environment, climate change and energy.

The European Union and Australia also signed an agreement in the field of aviation (on 
29 April) (1) and an agreement on passenger name record data (on 30 June) (2).

European Economic Area, relations with the EFTA countries

On 28 January the Council concluded two agreements with Switzerland on participation 
in the Schengen acquis and in the dublin/Eurodac acquis. The first agreement associ-
ates Switzerland with the Schengen area (3) and the second concerns the criteria and 
mechanisms for determining the member State responsible for examining an asylum ap-
plication lodged in one of the member States. Switzerland actually joined the Schengen 
area on 12 december (4).

Similarly, on 18 April the Council adopted a decision authorising the Commission to 
start negotiations on concluding an arrangement between the European Community, 
Liechtenstein and Switzerland on the conditions for participation of these states in the 
activities of the European Agency for the management of Operational Cooperation at 
the External Borders.

(1) 
(2) 
(3) 
(4) 

 IP/08/660.
 decision 2008/651/CFSP/JhA (OJ L 213, 8.8.2008).
 OJ L 53, 27.2.2008.
 See ‘Enlargement of the Schengen area’ in Chapter IV, Section 1, ‘management of external borders and 
immigration’, of this Report.

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177

On 24 July the Council also approved an agreement between Eurojust and Switzerland 
with the aim of extending cooperation in the fight against international crime.

On 24 October it adopted a decision on the conclusion of a protocol between the 
European Community, Switzerland and Liechtenstein on the criteria and mechanisms 
for establishing the state responsible for examining a request for asylum lodged in a 
member State, in Switzerland or Liechtenstein (1).

In addition, on 4 November negotiations were launched between the European 
Union and Switzerland with a view to the full liberalisation of trade in agricultural 
products (2).

On 10 december the Commission adopted a proposal for a decision on the signing and 
conclusion of the cooperation agreement with Liechtenstein to combat fraud and any 
other illegal activity to the detriment of their financial interests (3). At its meeting on 18 
and 19 december the Council adopted a decision on the conclusion of an agreement 
of the same type with Switzerland.

Relations with emerging countries

China

The European Union and China started high-level economic and trade talks on 25 April (4). 
This new mechanism for discussions (adopted at the summit of November 2007 to com-
pensate for the imbalance in trade flows between the European Union and China) puts 
the emphasis on durability and interdependence. The two sides agreed on an ambitious 
and far-reaching remit for the dialogue and began targeted discussions.

On 17 October the Commission presented an EU strategic initiative (5) on trilateral co-
operation between the European Union, Africa and China (6).

In the course of the year the European Parliament adopted a number of resolutions 
concerning China. Thus China’s policy in Africa was the subject of a resolution adopted 
on 23 April. Parliament called on the European Union to develop a coherent strategy to 
respond to the new challenges posed by emerging donors in Africa, such as China. It 
stressed that such a response must not attempt to emulate China’s methods and aims, 

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

 COm(2006) 753 (OJ C 126, 7.6.2007).
 COm(2008) 509.
 COm(2008) 839.
 IP/08/648.
 COm(2008) 654.
 See ‘Cooperation with the African, Caribbean and Pacific countries and overseas countries and territories’ 
in Chapter V, Section 3, ‘Regional approaches’, of this Report.

178 

EUROPE IN ThE wORLd

since that would not necessarily be compatible with the EU’s values, principles and 
long-term interests.

On 10 July Parliament adopted a resolution on the situation in China after the earth-
quake and before the Olympic Games. It expressed satisfaction at the developments in 
EU–China relations, the sectoral dialogues and the closer collaboration on various global 
issues. It also noted with satisfaction that China had not hesitated to accept the help of 
the international community in helping the victims in the Sichuan region and facilitating 
the operation of voluntary humanitarian aid organisations in distributing aid.

In addition, an agreement with China on maritime transport was signed on 28 January (1), 
and the Council adopted a decision authorising the conclusion of an agreement on 
combating drugs (2). On 13 November an agreement was signed between the European 
Union and China (together with Canada and the United States) on the treatment of 
financial information services in China (3).

moreover, the seventh EU–China conference on energy was held on 6 and 7 November, 
and the first EU–China–United States summit on product safety took place on 
17 November (4).

On 26 November the Council adopted a declaration stating that the Chinese authorities 
had informed the European Union of their decision to request a postponement of the 
21st EU–China summit planned for 1 december, on the grounds of a visit at the same 
time by the dalai Lama to several countries of the European Union. The European Union 
regretted this decision and intended to continue promoting its strategic partnership 
relationship with China, particularly in view of the current global economic and financial 
situation.

India

The ninth EU–India summit was held in marseille on 29 September. At this summit the 
European Union and India adopted a revised joint action plan in order to adapt their 
strategic partnership to the major global challenges, including energy security, climate 
change (with the adoption of a joint work programme), food security, the international 
financial crisis, terrorism and the regulation of international trade. A new impetus was 
given to the negotiations on a free-trade agreement and a maritime transport agree-
ment. The horizontal civil-aviation agreement was signed. The issue was also raised of 
possible cooperation in the civil nuclear sector.

(1) 
(2) 

(3) 
(4) 

 OJ L 46, 21.2.2008.
 COm(2008) 437. See ‘Fight against drugs’, in Chapter IV, Section 1, ‘Fight against terrorism, crime and 
drugs’, of this Report.
 IP/08/1702.
 IP/08/1717.

ThE EUROPEAN UNION IN ThE GLOBAL ECONOmY  

179

In addition, in its resolution of 24 September the European Parliament stressed its com-
mitment to establishing a global free-trade agreement between the European Union 
and India. Parliament recalled the many global challenges facing India and the European 
Union, and also welcomed the opening in New delhi of the European Business and 
Technology Centre, which would help to foster links in the trade and research sectors.

Brazil

On 20 November the first ministerial meeting took place in the framework of the EC–
Brazil dialogue on energy policy, in order to deepen links in this field (1).

On 22 december the second EU–Brazil summit was held in Rio de Janeiro. At this sum-
mit the joint EU–Brazil action plan setting out the political priorities and actions of the 
EU–Brazil strategic partnership for the next three years was adopted. The main themes 
in this action plan are promoting sustainable development, regional cooperation, or-
ganised crime, corruption, migration and visa and consular questions.

South Africa

The first EU–South Africa summit was held in Bordeaux on 25 July. This summit put rela-
tions between the European Union and South Africa on a higher level, making South 
Africa a true strategic partner. The participants discussed current political, security and 
social issues, such as immigration, climate change, peace and security.

In addition, the agreement on trade, development and cooperation with South Africa 
was revised on 7 April (2). The political dimension of the agreement has been reinforced 
(by extending it to cover issues concerning justice, freedom and security) and a number 
of provisions on economic cooperation have been updated.

As regards the economic partnership agreement between the Southern African 
development Community (SAdC) and the European Union, South Africa has not yet 
determined its position on participation in this agreement.

General references and other useful links

 •

 •

directorate-General for Trade: 
http://ec.europa.eu/trade/index_en.htm

world Trade Organisation: 
http://www.wto.org/index.htm

(1) 
(2) 

 IP/08/1755.
 COm(2008) 50 (OJ C 118, 15.5.2008).

180 

 •

 •

doha development Agenda: 
http://ec.europa.eu/trade/issues/newround/doha_da/index_en.htm 
http://www.wto.org/english/tratop_e/dda_e/dda_e.htm

directorate-General for External Relations: 
http://ec.europa.eu/external_relations/index_en.htm

EUROPE IN ThE wORLd

Section 3

Contributing to international solidarity

Background

The European Union acts both at multilateral and bilateral levels through the financial instru-
ments at its disposal (1) to promote and protect human rights and to foster democratic de-
velopments and respect for the rule of law worldwide. It ensures that human rights and the 
components of sustainable development, namely environmental protection, social equity and 
cohesion, and economic prosperity, are systematically integrated in its relations with other 
countries.

The European Union also provides emergency assistance to victims of natural and man-made 
disasters through its humanitarian aid policy (2). It carries out its humanitarian assistance mis-
sion by funding relief operations through its partners who implement aid in the field.

Given its responsibility as the world’s biggest donor of development aid, the European Union 
focuses on making aid more effective.

Protecting and promoting common values beyond  
the borders of the European Union

The European Union continued to play an active role at multilateral level in the United 
Nations human Rights Council. The year was particularly notable for the first session of 
the universal periodic review, the new mechanism for reviewing all countries from the 
point of view of human rights.

(1) 

(2) 

 Financing instrument for the promotion of democracy and human rights worldwide — Regulation (EC) 
No 1889/2006 (OJ L 386, 29.12.2006). Instrument for Stability — Regulation (EC) No 1717/2006 (OJ L 327, 
24.11.2006). Financing instrument for development cooperation — Regulation (EC) No 1905/2006 (OJ L 
378, 27.12.2006). 

 humanitarian aid instrument — Regulation (EC) No 1257/96 (OJ L 163, 2.7.1996) and the European 
development Fund for the ACP States and OCT.

CONTRIBUTING TO INTERNATIONAL SOLIdARITY 

181

The European Union also contributed to the work of the UN General Assembly in the field 
of human rights, particularly as regards monitoring commitments entered into under 
the december 2007 resolution on the abolition of the death penalty.

At regional level, human rights issues were consistently integrated in policy dialogues 
with the ACP states and the ENP beneficiary countries, while the European Union and 
the African Union decided to establish a regular human rights dialogue.

On the bilateral front, the European Union pursued some 30 human rights dialogues with 
non-member countries including China, Laos, morocco and the central Asian countries, 
including Uzbekistan, while human rights consultations continued with Canada, Japan, 
New Zealand, Russia, the United States and the candidate countries for accession to the 
European Union.

In addition to this cooperation-based approach, the European Union undertook specific 
démarches whenever serious human rights violations occurred throughout the world, 
such as in Bolivia, China, Iran, Sri Lanka or Sudan.

At a more specific level, on 29 April the Council adopted revised guidelines on EU policy 
towards third countries on torture and other cruel, inhuman or degrading treatment or 
punishment. The purpose of these guidelines is to provide the European Union with an 
operational tool to be used in contacts with third countries at all levels and in multilateral 
human rights forums.

On 16 June the Council revised the European Union’s guidelines on the death penalty. 
The signing of a joint European Union and Council of Europe declaration organising a 
European day against the death penalty on the same day as the world day against the 
death penalty (10 October) further confirmed the commitment of the European institu-
tions to continue working towards universal abolition of the death penalty.

To mark the 60th anniversary of the Universal declaration of human Rights and the 10th 
anniversary of the United Nations declaration on human Rights defenders, a confer-
ence organised by the European Parliament, the Commission and the United Nations 
in Brussels on 7 and 8 October was attended by human rights defenders from more 
than 40 countries. The conference reviewed the support mechanisms developed by the 
United Nations, the European Union and the Council of Europe in favour of human rights 
defenders and discussed ways of improving coordination and cooperation among the 
different international institutions and civil society organisations active in this area.

On 24 October the Council adopted the 10th European Union annual report on human 
rights.

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EUROPE IN ThE wORLd

The instrument for the promotion of democracy and human rights worldwide (1) became 
fully operational in 2008. Over the year 10 electoral assistance missions and four election 
expert missions were deployed outside the European Union. Country-based support 
schemes managed by Community delegations were also implemented in 47 countries. 
A total of EUR 143 million was allocated under this instrument in 2008.

Development policy

General

The European Union confirmed its commitment over the year to the United Nations 
millennium development goals.

On 9 April the Commission presented a communication on ways of speeding up progress 
to the mdGs (2), and in particular how the European Union could contribute. The com-
munication looks at four different ways in which the Commission and member States 
have pledged to improve aid for poor countries: more money, more effective aid, more 
coherent policies, and better trade capacity.

At its meeting of 27 may, the Council stated its belief that all mdGs could be achieved 
in all regions provided that immediate, concerted action was taken and sustained for 
the seven years that remained for attaining them.

The European Council of 19 and 20 June advocated a strong, collective EU response. In 
particular, with a view to attaining all mdGs, the European Union reaffirmed its commit-
ment to achieve a collective overseas development assistance target of 0.56 % of gross 
national income (GNI) by 2010 and 0.7 % of GNI by 2015.

On 23 June the Commission presented its annual report on the European Community’s 
development and external assistance policies and their implementation in 2007 (3). The 
report confirms the European Union’s status as the world’s leading donor, contributing 
60 % of total official development assistance.

The third high-level forum on aid effectiveness in Accra (Ghana) from 2 to 4 September 
marked an important step in the effective implementation of the Paris declaration on 
aid effectiveness adopted in 2005. The international community reached agreement at 
the forum on an ambitious action plan for reforming the delivery and use of aid (Accra 
action programme).

(1) 
(2) 
(3) 

 Regulation (EC) No 1889/2006 (OJ L 386, 29.12.2006).
 COm(2008) 177 (OJ C 202, 8.8.2008).
 COm(2008) 379 (OJ C 10, 15.1.2009).

CONTRIBUTING TO INTERNATIONAL SOLIdARITY 

183

On 8 October the Commission published a communication ‘Local authorities: Actors for 
development’ (1), which seeks to highlight the importance of these key actors in achiev-
ing the millennium development goals and proposes a European action framework 
in order to enhance the aid effectiveness of local authorities active in development 
cooperation.

At the United Nations Conference on Financing for development held in doha from 
28 November to 2 december, the Commission called on donors to stick to their promises 
and increase aid for poor countries. It stressed that the financial crisis should not be used 
as an excuse to cut development assistance. The European Union reiterated its pledge 
to increase its development assistance to 0.7 % of its GNI by 2015. The conference also 
examined the implementation of the monterrey Consensus (the first international con-
vention on financing for development, adopted in 2002). It culminated in the adoption 
of the doha declaration on Financing for development.

On 18 december the Commission signed a EUR 4 million contribution agreement to-
wards the enhanced integrated framework (EIF) (2). The EIF is a partnership to support 
the sustainable development of least developed countries (LdCs). It brings together 
LdCs, international agencies and donors to ensure the integration of trade needs into 
national development plans and the implementation of priority trade projects.

On 18 July, as a rapid response to soaring world food prices, the Commission proposed 
a regulation (3) on the introduction of a special facility worth EUR 1 billion. The basic 
aim of the facility, scheduled for three years, is to save the 2009 and 2010 harvests 
of the worst-hit countries by providing them with the necessary inputs (e.g. seed or 
fertilisers). Accompanying measures of a social nature and others designed to ensure 
a transition between emergency aid and the traditional cooperation programmes are 
also planned. The regulation was adopted by the European Parliament and the Council 
on 16 december (4).

Human and social development

The Commission continued to be actively committed in 2008 to taking forward the 
achievement of the millennium development goals in education, health, gender equal-
ity and employment.

(1) 
(2) 
(3) 

(4) 

 COm(2008) 626.
 IP/08/2029.
 COm(2008) 450. See ‘Agricultural prices and related measures’ in Chapter III, Section 2, ‘Agriculture and 
rural development’, of this Report.
 Regulation (EC) No 1337/2008 (OJ L 354, 31.12.2008).

184 

EUROPE IN ThE wORLd

It played an active role in world forums in the education and health fields, notably in 
the Global Fund to Fight hIV/AIdS, Tuberculosis and malaria, and in the ‘Education for 
all’ fast-track initiative.

There was progress during the year on children’s rights, health and gender equality.

On 5 February the Commission presented a communication ‘A special place for children 
in EU external action’ (1), setting out a comprehensive EU policy framework for enhancing 
existing initiatives to satisfy children’s needs and to protect and promote their human 
rights in third countries.

At its meeting of 26 and 27 may, the Council adopted conclusions on the rights of the 
child in development cooperation and humanitarian aid and, on 16 June, it adopted the 
updated version of the guidelines on children in armed conflict.

In the social protection and health field, the Commission and the Presidency of the 
European Union presented a joint document on 18 September ‘Sickness insurance cover 
and healthcare financing in developing countries: Towards a framework for concerted 
intervention by the European Union’. On 16 September the Commission also adopted a 
progress report on the implementation of the European programme for action to tackle 
the critical shortage of health workers in developing countries (2). These documents, both 
concerning strengthening health systems, were discussed at the informal ministerial 
meeting of 29 and 30 September in Bordeaux. On 10 November the Council called for 
implementation of the European action programme to be speeded up. It also empha-
sised the need for the Union to set up a concerted assistance framework for sickness risk 
coverage and the financing of health systems in developing countries.

The European Union confirmed its commitment to providing the necessary political 
and financial support to promote the role of women and gender equality. On 6 march 
the Commission organised an international conference in Brussels ‘women: Stabilising 
an insecure world’. In September, as a follow-up to the conference, a group of some 40 
leading women in politics, business and civil society asked the Secretary-General of 
the United Nations to arrange a ministerial conference in 2010 in order to evaluate the 
implementation of UN Security Council Resolution 1325 (2000) on women, peace and 
security.

In the course of the year the Council and the Commission prepared a joint paper on 
a comprehensive approach to EU implementation of UN Security Council Resolutions 
1325 (2000) and 1820 (2008) on women, peace and security. The Council approved this 
global approach on 8 december.

(1) 
(2) 

 COm(2008) 55 (OJ C 118, 15.5.2008).
 COm(2006) 870 (OJ C 126, 7.6.2007).

CONTRIBUTING TO INTERNATIONAL SOLIdARITY 

185

Integrating climate change in development cooperation

The European Union strengthened its external action on climate change during the 
year.

Under the thematic programme for the environment and sustainable management of 
natural resources, including energy (1), EUR 101 million was allocated to help promote 
the European Union’s environmental and energy policies abroad. The most important 
activities were in the areas of energy efficiency, renewable energies and forestry.

On 27 November the Commission contributed EUR 24.5 million to the Global Index 
Insurance Facility (GIIF). The GIIF aims to mitigate risks relating to climate and natural 
disasters in African, Caribbean and Pacific countries through the application of index 
insurance (2).

On 15 July the Commission adopted a working paper on the implementation framework 
of the Global Climate Change Alliance (3). The GCCA provides for enhanced dialogue be-
tween the European Union and the poor developing countries hit hardest by the impact 
of climate change, in particular least developed countries and small island developing 
states. Joint declarations were concluded under the GCCA framework with the Caribbean 
countries (in march), the Pacific countries (in October) and the African countries (in 
November). An initial scheme has been approved for Vanuatu, while 10 new schemes 
are being prepared with the most vulnerable countries.

The Commission used a variety of methods to integrate climate change into project 
design and external relations instruments, including policy dialogue with non-member 
countries at bilateral and regional levels and with regional and international organisa-
tions, the green diplomacy networks and its own network of delegations. All the above 
measures have contributed to the emergence of European climate change diplomacy, 
strengthening the European Union’s presence and identity as an international player.

International cooperation in the fight against drugs

The European Union continued throughout the year to promote its balanced approach 
in the fight against drugs (balancing the reduction in demand against the reduction 
in supply) at multilateral and bilateral levels. drugs-related development aid projects 
continued to be a priority in countries affected by the production, transit, trafficking 
and consumption of drugs.

(1) 
(2) 
(3) 

 COm(2006) 20 (OJ C 151, 29.6.2006).
 IP/08/1782.
 SEC(2008) 2319.

186 

EUROPE IN ThE wORLd

At multilateral level, the Commission played an active role in the annual meeting of the 
United Nations Commission on Narcotic drugs (9 to 14 march in Vienna), particularly 
as regards evaluation of the results of the anti-drugs strategy adopted at the General 
Assembly special session in 1998.

At bilateral level, the Commission put the emphasis on improving cooperation with the 
countries of Latin America and the Caribbean in the fight against drugs. The high-level 
meeting on drugs with these countries (meeting of the Coordination and Cooperation 
mechanism on drugs between the European Union, Latin America and the Caribbean) in 
Vienna on 4 and 5 march adopted the hofburg declaration underlining the importance 
of the mechanism.

A cooperation project was launched in the fight against illicit drugs (PRAdI CAN — 
Programa Antidrogas Ilícitas en la CAN) under the regional strategy for cooperation with 
the Andean Community signed in April 2007.

The European Union ministerial troika also held meetings on the subject of drugs 
with Afghanistan, mauritania, Ukraine, the United States, the western Balkans and the 
Economic Community of west African States.

Some EUR 610 million was allocated to a multiannual programme in Afghanistan (1) for 
the period 2007–10 aimed at supporting governance, rural development and health 
(including EUR 144 million for 2008). Approximately EUR 180 million (30 %) was allocated 
to the fight against drugs in the period 2007–10. A further total of EUR 5 million was allo-
cated in 2008 to the fifth phase (2009–13) of the central Asia drug action programme.

In addition to the geographical financial instruments in the fight against drugs, multi-
region, multi-component programmes targeting the heroin and cocaine routes were 
adopted in 2008 under the Instrument for Stability (2).

Commodities

On 21 January the Council adopted a decision (3) regarding the position to be taken 
by the Community within the International Cocoa Council on the extension of the 
International Cocoa Agreement of 2001.

The decision on the signing and conclusion of a new International Coffee Agreement (4), 
replacing the 2001 agreement, was adopted by the Council on 16 June. The objective of 
the agreement remains the promotion of international cooperation on the coffee trade.

(1) 
(2) 
(3) 
(4) 

 See ‘Afghanistan’ in Chapter V, Section 4, ‘Reconstruction process’, of this Report.
 Regulation (EC) No 1717/2006 (OJ L 327, 24.11.2006).
 decision 2008/76/EC (OJ L 23, 26.1.2008).
 decision 2008/579/EC (OJ L 186, 15.7.2008).

CONTRIBUTING TO INTERNATIONAL SOLIdARITY 

187

Humanitarian aid

General

In 2008 the Commission’s response to humanitarian crises in some 60 countries was 
channelled through 90 financing decisions for a total amount of EUR 936.6 million. The 
initial budget of EUR 741 million was supplemented in response to humanitarian needs 
arising from the increase in world food prices, which affected many already at risk.

In terms of numbers of beneficiaries, 118 million persons were assisted by projects fi-
nanced under the humanitarian aid budget line.

Of the funds allocated by the Commission to its partners that implement humanitarian 
aid in the field, 44 % went to non-governmental organisations, 46 % to United Nations 
agencies and 10 % to other international organisations.

Although, in humanitarian aid terms, the year saw no major natural disasters, a flurry of 
medium-scale disasters occurred, including cyclones in Bangladesh, madagascar and 
myanmar, an earthquake in China, hurricanes in the Caribbean, flooding in Ecuador, 
India, Namibia and Nepal, a cold wave in Tajikistan, a typhoon in Vietnam, frosts and 
drought in the Palestinian territories, and epidemics in west Africa, Guinea-Bissau, the 
Caribbean and Latin America.

Elsewhere, as regards conflicts, 2008 saw the crisis in Georgia, while other complex 
crises that already existed in previous years, notably involving Palestinian refugees 
and Colombia, Sri Lanka, Sudan and Pakistan, continued and, in some cases, even 
worsened.

The Commission continued to pay particular attention to ‘forgotten’ crises, i.e. existing 
crisis situations where major humanitarian needs receive little attention from donors, 
allocating a total of EUR 41.35 million. A number of cases have been identified as forgot-
ten crises since 2004, e.g. the situation of Sahrawi refugees in Algeria, and the crises in 
Chechnya, myanmar and Nepal.

In terms of policy, on 22 July the Council adopted the action plan (1) presented by the 
Commission in may for the implementation of the 2007 European consensus on humani-
tarian aid, welcoming it as an important contribution to efficient, well-coordinated and 
reinforced European humanitarian aid. As one of the key actors, the Council engages 
actively in the implementation of the action plan. It noted that a partnership approach 
is fundamental to the effective delivery of humanitarian aid and that actions outlined 

(1) 

 SEC(2008) 1991.

188 

EUROPE IN ThE wORLd

in the action plan should be pursued where appropriate in close collaboration with the 
humanitarian partner organisations and other stakeholders.

As part of the implementation of the action plan, the European Parliament and the 
Commission organised a conference on international humanitarian law (IhL) in Brussels 
on 16 September. The objective of the conference was to raise awareness about IhL vio-
lations and to discuss, in the spirit of the EU consensus on humanitarian aid, what more 
could be done to promote compliance with IhL at European Union level.

On 5 march the Commission adopted a communication on reinforcing the European 
Union’s disaster response capacity (1). In order to rise to the growing challenges posed 
by natural and man-made disasters, the communication proposes that the European 
Union strengthens its capacity at home and abroad to provide civil protection and hu-
manitarian assistance.

In terms of humanitarian aid management, the Commission examined, re-evaluated 
and updated the partnership agreement governing relations with its NGO partners by 
streamlining procedures without compromising monitoring of the management or su-
pervision of the aid delivered.

Main humanitarian aid operations

In 2008 the Commission allocated more than EUR 936.6 million to humanitarian aid 
operations. The main operations financed are set out by region in Table 2 below.

(1) 

 COm(2008) 130 (OJ C 202, 8.8.2008). See ‘Civil protection’ in Chapter IV, Section 2, ‘Civil protection and 
European Union Solidarity Fund’, of this Report.

CONTRIBUTING TO INTERNATIONAL SOLIdARITY 

189

Table 2 
Humanitarian aid financing decisions (2008 budget) by geographical area  (EUR)

Intervention regions
Africa, Caribbean and Pacific (total)
Sudan and Chad
Horn of Africa
Central and southern Africa and the Indian Ocean
west Africa
Caribbean 
New Independent States, Middle East and Mediterranean (total)
Mediterranean and Middle East
Europe, Caucasus and central Asia
Asia and Latin America (total)
South Asia
South-east and east Asia
Latin America
Other
Non-geographic aid (capacity building, grants, services, etc.)
Technical assistance (experts and offices)
Other expenses (audits, evaluations, information)
Total 

Amount decided for 2008

551 847 000
197 000 000
167 897 000
126 200 000
39 100 000
21 650 000
152 635 000
124 860 000
27 775 000
192 327 000
94 257 000
64 000 000
34 070 000
39 832 941
7 020 614
25 000 000
7 812 327
936 641 941

The main theatres of operation were in the following countries and regions:

 •

 •

Africa:
 —

 —

 —

 —

in Sudan (EUR 167 million) in response to humanitarian needs (including food aid) 
arising from the conflict situation affecting the region; a further EUR 30 million 
was allocated to refugees in Chad;
in the horn of Africa a drought-preparedness programme was set up for more 
than EUR 30 million, targeting aid in areas including water, animal health, human 
health, drought preparations and coordination;
in the democratic Republic of the Congo, more than EUR 45 million was allocated 
in humanitarian and food aid, mainly in the provinces of kivu; the aid provided 
assistance to displaced persons, contributed to the return of refugees in neigh-
bouring countries and helped restore the self-sufficiency level of families in the 
katanga region;
in Somalia (EUR 34.8 million) to provide aid to the victims of a crisis that deterio-
rated after the start of the year; the main sectors of intervention were healthcare, 
water and sanitation, food aid, including the distribution of rations to the worst-
hit areas, and multisector aid to displaced persons;

middle East:
 —

for the people of Palestine (EUR 82.7 million), with the most vulnerable being as-
sisted in the following areas: psychological protection and support, water, health, 

190 

EUROPE IN ThE wORLd

shelters, and support and security services; aid was also provided in response to 
requirements arising from drought and cold weather conditions; additional aid 
amounting to EUR 8 million was allocated to meet the needs of refugees in the 
Nahr al-Bared camp in Lebanon;

 —

for victims of the crisis in Iraq (EUR 30 million) both inside and outside the country 
(Jordan and Syria and, to a lesser extent, Lebanon and Turkey), and in response 
to requirements arising from the drought in northern Iraq;

 •

Asia:

 —

 —

in myanmar (EUR 39 million) to assist the vulnerable in the regions bordering 
Bangladesh, India, China and Thailand, and refugees in camps in Thailand; the 
aid covered requirements with regard to protection, basic healthcare, water and 
sanitation, and food aid;

in Afghanistan, Iran and Pakistan (EUR 36.3 million) where humanitarian and food 
aid programmes were launched to provide assistance to the most vulnerable in 
the areas of water and sanitation, shelter and protection, and to help with the 
return of refugees to Iran and Pakistan;

 •

Latin America:

 —

in Colombia (EUR 12.5 million) with assistance involving activities in the following 
areas: protection; emergency aid (food and non-food aid) to recently displaced 
persons; water and sanitation; shelter; access to healthcare; food security; psycho-
logical support to displaced persons. The above measures included aid to rural 
communities whose access to goods and services is restricted, and to returnees; 
initiatives for the protection of children were also set in motion.

Food aid

A budget of EUR 223.25 million was allocated to food aid in 2008. however, on account 
of the world food crisis and the rise in food prices, the Commission made additional 
resources available from the emergency aid reserve. At the end of the year, the humani-
tarian food aid budget stood at EUR 363.25 million, sufficient to help 25 million persons. 
This amount is included in the total of EUR 936.6 million committed in response to 
humanitarian crises (see above).

Disaster preparedness

In 2008, as part of its support for disaster-preparedness activities, the Commission 
launched new projects in southern Africa, central and south-east Asia, and Central 
America totalling EUR 32.3 million (under its dipecho programmes).

In terms of numbers of beneficiaries, some 20 million persons were assisted by projects 
financed under the disaster-preparedness budget line.

CONTRIBUTING TO INTERNATIONAL SOLIdARITY 

191

Regional approaches

Cooperation with the African, Caribbean and Pacific countries and overseas   
countries and territories 

Financial cooperation

Funding under the 10th European development Fund covering the period 2008–13 be-
came available on 1 July following the entry into force of the revised Cotonou Agreement 
(see below).

A new instrument — the mdG contract — was made available to seven African coun-
tries (Burkina Faso, Ghana, mali, mozambique, Rwanda, Uganda and Zambia). The mdG 
contract is a longer-term, more predictable form of general budgetary support that the 
European Union has launched in a number of ACP countries under the 10th EdF. It is 
intended to help the beneficiary countries accelerate progress towards the millennium 
development goals. In 2008 mdG contracts accounted for 61 % (or EUR 1.521 billion) of 
all budgetary support commitments.

The African Peace Facility was allocated EUR 300 million under the 10th EdF for the 
period 2008–10. These funds are intended to develop the African Union’s capacity to 
engage in peace support and peacekeeping operations in Africa.

EdF operations undertaken for the benefit of the ACP states and overseas countries 
and territories (OCTs) in 2008 came to a total of EUR 4.889 billion. The breakdown of 
this amount is given in Table 3. The Commission adopted 60 annual action programmes. 
most EdF commitments in 2008 concerned the health (EUR 218 million) and government 
and civil society (EUR 345 million) sectors. Budgetary and sectoral support programmes 
accounted for 51 % of the new programmes approved during the year.

Table 3 
EDF operations for the benefit of the ACP states and OCTs in 2008 

(million EUR)

Intervention regions
Africa
Caribbean
Pacific
OCTs
Non-geographical programmes
Total

Amount decided for 2008
3 939
126
12
18
795
4 890

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EUROPE IN ThE wORLd

Revision of the Cotonou Agreement

On 28 April the Council adopted a decision (1) approving the revised Cotonou Agreement 
(revision negotiated in 2005) governing relations between the European Union and the 
ACP states. This decision incorporates new provisions in the Cotonou Agreement, mainly 
concerning the fight against terrorism and the proliferation of weapons of mass destruc-
tion, financial provisions and political dialogue on human rights, democratic principles 
and the rule of law. After being ratified by all the parties, the revised agreement entered 
into force on 1 July.

Regional economic partnership agreements 

On 15 October an EPA was signed between the European Union and the Caribbean re-
gion countries (Cariforum) (2). The EPA is the first genuinely comprehensive North–South 
trade and development agreement in the global economy. It includes a package of meas-
ures to stimulate trade, investment and innovation, promote sustainable development, 
build a regional market among Caribbean countries and help eliminate poverty.

On 26 November an interim EPA was signed between the European Union and Côte 
d’Ivoire (3). As regards the African and Pacific regions, on 10 July the Commission present-
ed two proposals for interim EPAs with central Africa (4) (currently concerning Cameroon) 
and Ghana (5). On 18 September it presented two proposals in relation to the interim 
EPA with the Southern African development Community group of states (6). It submitted 
similar proposals regarding the East African Community (EAC) on 30 September (7), and 
the Pacific countries (8) and east and southern Africa (ESA) (9) on 17 december.

All the above interim agreements are stepping stones towards comprehensive EPAs, 
negotiations on which continued with whole regions during 2008.

ACP states

On 1 October the Commission adopted a communication ‘Regional integration for de-
velopment in ACP countries’ (10) which identifies fives challenges and priorities for which 
the European Union could help developing countries take full advantage of regional 

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 
(10) 

 decision 2008/373/EC (OJ L 129, 17.5.2008; OJ L 132, 22.5.2008).
 OJ L 289, 30.10.2008.
 COm(2008) 438 and COm(2008) 439.
 COm(2008) 445 and COm(2008) 446.
 COm(2008) 440 and COm(2008) 441.
 COm(2008) 562 and COm(2008) 565.
 COm(2008) 521 and COm(2008) 522.
 COm(2008) 857 and COm(2008) 858.
 COm(2008) 863.
 COm(2008) 604.

CONTRIBUTING TO INTERNATIONAL SOLIdARITY 

193

integration: helping to strengthen regional institutions; supporting more integrated 
regional markets; reinforcing the regional dimension of its support to business develop-
ment; supporting the increase in infrastructure stock, with an emphasis on connecting 
national networks; and assisting efforts by the regions to address together key common 
sustainable development challenges. The renewal of this support is based on a more 
structured, closer strategic dialogue between the Union and the ACP regions, improved 
and more coherent European financial support, and a modernised trade system under 
the EPA framework.

Africa

On 17 October the Commission presented a communication (1) on an EU policy initiative 
on trilateral cooperation between the European Union, Africa and China (2), in which 
it proposed to identify, step by step, a number of specific areas suitable for trilateral 
cooperation and to link this cooperation where possible with existing commitments 
in multilateral forums. Initially this trilateral cooperation would focus on the follow-
ing sectors: peace and security in Africa, support for African infrastructure, sustainable 
management of the environment and natural resources, and agriculture and food secu-
rity. In its conclusions of 10 November, the Council suggested that particular attention 
should be given to cooperation in the area of peace and security, where the European 
Union and China can contribute together to the stability of the African countries and to 
strengthening African crisis management capabilities.

On 17 October the Commission also adopted a communication (3) assessing the first year 
of implementation of the new European Union–Africa strategic partnership (adopted in 
Lisbon in december 2007 and accompanied by an action plan for 2008–10 consisting of 
eight sectoral partnerships). The communication provides an overview of initial progress 
made on the overall political objectives of the joint strategy and the implementation of 
the eight partnerships. It also outlines the main challenges and key recommendations 
on how to move forward, better and faster.

At bilateral level, the European Union monitored developments throughout the year 
in the political and humanitarian situation in the darfur region, Sudan, eastern Chad, 
the north-eastern Central African Republic, Somalia and Zimbabwe. It also kept a close 
watch on the human rights situation and the transition to democracy and the rule of law 
of countries such as Guinea, kenya, mauritania and Zimbabwe, and on stabilisation in 
Burundi, Côte d’Ivoire and the democratic Republic of the Congo. The European Union 
sent an electoral observation mission for the elections in Ghana on 7 december (4).

(1) 
(2) 
(3) 
(4) 

 COm(2008) 654.
 See ‘China’ in Chapter V, Section 2, ‘Relations with emerging countries’, of this Report.
 COm(2008) 617.
 IP/08/1674.

194 

Caribbean

EUROPE IN ThE wORLd

The summit meeting between the European Union and the Caribbean Forum countries 
took place in Lima (Peru) on 17 may, the day after the European Union, Latin America and 
Caribbean summit (1). The main items discussed included relations between Cariforum 
and the European Union, regional integration and intra-Cariforum cooperation, imple-
mentation of the economic partnership agreement, energy costs and food prices, and 
sustainable management of natural resources.

The communiqué adopted at the summit contains a joint statement on the Cariforum–
European Union partnership, which outlines inter alia the intervention areas of the 10th 
regional programme of the European Regional development Fund, and a declaration 
on climate change and energy.

Pacific

A forum attended by the Pacific Islands and the European Union was held in the Cayman 
Islands on 27 and 28 November. 

A joint declaration on climate change, in which their common concerns for global warm-
ing and their common interest for an ambitious post-kyoto international agreement 
were outlined, was endorsed by the Pacific Islands Forum and the EU at the European 
developments days held in Strasbourg from 15 to 17 November.

OCTs

On 25 June the Commission presented a Green Paper on future relations between the 
European Union and the overseas countries and territories (2). The Green Paper is in-
tended to launch a discussion on the case for replacing the current agreement with 
an innovative partnership for the OCTs. This strategy should be tailored to the specific 
status, diversity, challenges and potential of the OCTs in a globalised world. Any future 
partnership should fully or partly replace the current agreement when the present over-
seas association decision expires on 31 december 2013.

Cooperation with Asia

Trade and economic relations with the Association of South-East Asian Nations were the 
subject of a European Parliament resolution adopted on 8 may which stressed that an 
agreement with ASEAN should ensure the improvement and simplification of rules of ori-
gin, the harmonisation of standards, regulatory transparency and simplified bureaucratic 

(1) 
(2) 

 See ‘Cooperation with Latin America’ in Chapter V, Section 3, ‘Regional approaches’, of this Report.
 COm(2008) 383 (OJ C 10, 15.1.2009).

CONTRIBUTING TO INTERNATIONAL SOLIdARITY 

195

procedures, and the elimination of taxes. This year ASEAN received support in the air 
transport sector, on intellectual property rights and in relation to free-trade negotia-
tions, while substantial progress was achieved at bilateral level in the negotiation of 
partnership and cooperation agreements with various ASEAN countries on the basis of 
the negotiating directives adopted by the Council in 2004.

In the social sphere, some 150 workers’ and employers’ representatives from 43 European 
and Asian countries met for the inaugural Asia–Europe Social Partners Forum in Brussels 
on 30 June and 1 July with the aim of contributing to broader cooperation between the 
two regions on improving living and working conditions.

On the regional cooperation front, the 15th summit of the South Asian Association for 
Regional Cooperation (SAARC) was held in Sri Lanka from 1 to 3 August. Taking part as 
an observer, the European Union stressed its commitment to the region and its support 
for the regional integration process.

At the seventh Asia–Europe meeting (ASEm) in Beijing on 24 and 25 October, ASEm 
formally admitted six new members so that it now embraces virtually the whole of 
Asia and Europe. The summit was dominated by discussions on how to respond to the 
global financial crisis, but also dealt with issues such as world governance, sustainable 
development, trade and economic matters, and intercultural dialogue. A declaration on 
sustainable development was adopted, focusing on the millennium development goals, 
energy security, climate change and social cohesion.

At bilateral level, the European Union closely monitored the situation in myanmar. In 
the face of serious and persistent violations of human rights, the Council decided on 
25 February (1) and 29 April (2) to renew and strengthen the restrictive measures against 
the country’s military regime. Parliament and the Council deplored the fact that the con-
stitutional referendum process was devoid of any democratic legitimacy and called on 
the myanmar authorities to take transitional steps towards a democratically elected gov-
ernment. Following the humanitarian crisis caused by cyclone Nargis, they condemned 
the lack of cooperation forthcoming from the myanmar authorities.

The European Union sent election observation missions for the parliamentary elections 
in Pakistan (on 18 February), Cambodia (on 27 July) and Bangladesh (on 18 december) 
in order to support the transition of these countries towards democracy.

Under the financing instrument for development cooperation for the period 2007–13 (3), 
the Commission adopted 10 bilateral annual action plans and one annual action plan 
for the Asian region in 2008, amounting to a total of EUR 651 million. These action plans 
come under the first multiannual indicative programme for the period 2007–10.

(1) 
(2) 
(3) 

 Regulation (EC) No 194/2008 (OJ L 66, 10.3.2008).
 Common Position 2008/349/CFSP (OJ L 116, 30.4.2008).
 Regulation (EC) No 1905/2006 (OJ L 378, 27.12.2006).

196 

EUROPE IN ThE wORLd

with a view to promoting sustainable development and eradicating poverty in Asia, new 
programmes were launched in the health sector (Afghanistan, Vietnam) and in the area 
of social assistance (Bangladesh, Laos and Vietnam). The Commission’s contribution to 
reducing extreme poverty and hunger also included new food aid support measures 
and initiatives to mitigate the impact of food price rises in Afghanistan, while other 
food aid support operations were carried out in Cambodia, Laos, myanmar and North 
korea. The Commission also launched its first support project for North korea, which 
should allow development projects to be implemented in future if progress is made in 
the Six-Party Talks.

There was also support to the education sector so as to improve school and vocational 
education (India and Pakistan) and strengthen higher education under the Erasmus 
mundus programme (China, India and regional schemes). Other programmes aimed at 
improving governance (Bangladesh, Cambodia, China and Laos). In the trade sector, the 
Commission backed support measures for Bangladesh, Indonesia and Pakistan. It also 
continued to support refugees and displaced persons, notably through new operations 
in the Philippines and Sri Lanka.

To help address the challenges of climate change (1) and environmental degradation, 
China benefited from programmes designed to integrate the environment more ef-
fectively into its policies (‘Centre for clean energies’, ‘Environmental governance’ and 
‘Institute for clean and renewable energies (ICARE)’ programmes). Two new regional pro-
grammes were launched: the FLEGT programme promoting the action plan to combat 
the illegal timber trade; and the Switch programme promoting the change to sustainable 
production and consumption in Asia.

This year the Commission continued the second phase of the preparatory measures to 
promote business and scientific exchanges (China, India) and adopted preparatory meas-
ures with the group of middle-income Asian countries (measures to promote mutual 
cooperation and understanding between the European Union and Asia, the EU–malaysia 
services sector dialogue and EU outreach).

Cooperation with central Asia

In a resolution passed on 20 February the European Parliament welcomed the adoption 
in June 2007 of the European Union strategy for central Asia (kazakhstan, kyrgyzstan, 
Tajikistan, Turkmenistan, Uzbekistan). It called for the deeper integration of the region 
into the world trade and economic system and for democracy, good governance, the 
rule of law and human rights to be made an integral part of the central Asia strategy.

(1) 

 See ‘Integrating climate change in development cooperation’ in Chapter V, Section 3, ‘development policy’, 
of this Report.

CONTRIBUTING TO INTERNATIONAL SOLIdARITY 

197

On 16 June the Council approved a joint Council and Commission progress report on 
implementation of the European Union’s central Asia strategy. The European Council of 
19 and 20 June subsequently welcomed the encouraging progress achieved in imple-
menting the strategy and looked forward to further strengthening the Union’s partner-
ship with central Asia.

The first European Union–central Asia forum on security took place in Paris on 
18 September. The forum focused on three main issues: terrorist threat and non-prolif-
eration, the fight against human and drug trafficking, and energy and environmental 
security.

At bilateral level, a number of cooperation council meetings took place during the year 
with kyrgyzstan (22 July) and kazakhstan and Uzbekistan (16 September). Bilateral rela-
tions and the implementation of the strategy for central Asia were discussed at these 
meetings.

In the case of Uzbekistan, on 13 October the Council welcomed the progress achieved 
in the last year with regard to respect for the rule of law and the protection of human 
rights, while remaining concerned about the situation in some domains. It decided not 
to renew the travel restrictions applying to certain individuals, but to renew the arms 
embargo for a period of 12 months.

The Community provided support to the education sector (kyrgyzstan and Turkmenistan) 
throughout the year under the EU strategy for central Asia. Other programmes involved 
support to the health sector (Tajikistan), strengthening governance (kazakhstan, 
Tajikistan, Uzbekistan), reforms to the social protection system (kyrgyzstan) and pov-
erty reduction (Tajikistan).

A total of EUR 63.35 million was released in 2008 for programmes to support the cen-
tral Asian region under the financing instrument for development cooperation for the 
period 2007–13 (1).

Cooperation with Latin America

The fifth European Union–Latin America/Caribbean summit took place in Lima (Peru) on 
16 may. The declaration adopted by the summit includes a ‘Lima agenda for joint action’ 
containing concrete commitments and actions on the two key themes of the summit: 
social cohesion (the fight against poverty, inequality and exclusion) and sustainable 
development (the environment, climate change and energy). It was decided in this con-
nection to prepare the launch of a project called Euroclima to support environmental 
policy coordination in Latin America.

(1) 

 Regulation (EC) No 1905/2006 (OJ L 378, 27.12.2006).

198 

EUROPE IN ThE wORLd

The summit was preceded by the second EU–LAC business forum on 15 may, which 
brought together business leaders from the two regions, and was followed by sub-
regional summits in troika format between the European Union and Chile, mexico, the 
Andean Community, Central America, Cariforum and mercosur.

On the bilateral front, there was major progress in relations with mexico. On 15 July 
the Commission proposed (1) the establishment of a strategic partnership as a more 
appropriate framework for translating the existing political dialogue into an effective 
instrument for the coordination of positions on global issues, as well as on other issues 
of mutual concern. The Council endorsed the establishment of the strategic partnership 
at its meeting of 13 October.

On 23 June the Council decided to lift the measures against Cuba as a means of facilitat-
ing the relaunch of comprehensive political dialogue. It expressed its support for the 
liberalising changes in Cuba and encouraged the government to introduce them. The 
Council also called on the Cuban government to improve the human rights situation 
by inter alia releasing all political prisoners, including those detained and sentenced in 
2003. Cooperation between the Commission and Cuba was relaunched on 24 October 
following the signing of a joint declaration setting out a framework for future coopera-
tion in areas of common interest (2).

The Commission committed EUR 348 million in the course of the year for programmes 
for the Latin America region under the financing instrument for development coopera-
tion for the period 2007–13 (3). This total was spread over 14 annual action programmes 
comprising 24 individual actions for the whole of Latin America: three at regional level, 
three at subregional level and 18 at bilateral level. The main sectors of intervention 
were education and culture with seven actions, trade and regional integration with 
seven actions, social cohesion and economic development with four actions, govern-
ance and human rights with four actions and protection of the environment with two 
actions, one of which concerned climate change, the other support for better river basin 
management.

Cooperation with the Gulf states, Iran, Yemen

The joint cooperation council and a ministerial meeting between the European Union 
and the Gulf Cooperation Council (GCC) took place in Brussels on 26 may. discussions 
centred on the implementation of the cooperation agreement, in particular the recent 
initiatives taken by the Commission on public diplomacy and energy, the free-trade 
agreement negotiations, regional issues and policy issues of common concern. Talks 

(1) 
(2) 
(3) 

 COm(2008) 447.
 IP/08/1578.
 Regulation (EC) No 1905/2006 (OJ L 378, 27.12.2006).

CONTRIBUTING TO INTERNATIONAL SOLIdARITY 

199

continued during a meeting at the United Nations General Assembly on 23 September 
in New York.

On the bilateral front, developments concerning Iran’s nuclear programme were the 
subject of close attention and subsequent action on the part of the European Union. The 
Union agreed a series of additional restrictive measures against the country by decisions 
adopted in June, August and November (1). These sanctions extend the measures freez-
ing the assets of persons and entities participating in or directly associated with Iran’s 
proliferation-sensitive nuclear activities, and concern the granting of export credits and 
guarantees, vigilance by European financial institutions in their relations with Iranian 
banks, and the inspection of cargoes to and from certain Iranian enterprises.

The European Parliament also commented on the proliferation risks of Iran’s nuclear 
programme and the human rights situation in Iran, while the European Union conducted 
public diplomacy initiatives designed to show Europe’s readiness to engage with Iran 
as soon as it demonstrated practical cooperation on nuclear issues.

The Commission and the Yemeni government met for the 15th joint cooperation com-
mittee in Sana’a on 10 June, during which they reviewed the political and security situa-
tion in Yemen and discussed the economic and trade challenges facing the country. The 
implementation of Community development cooperation, worth a total of EUR 51 mil-
lion in 2007–08, was reviewed and concrete steps taken to improve the effectiveness 
of this aid.

The fifth political dialogue meeting with Yemen was held on 27 October in Sana’a, cov-
ering reforms undertaken by the Yemeni government, human rights, security and the 
regional geopolitical situation.

General references and other useful links

 •

 •

 •

 •

 •

directorate-General for External Relations: 
http://ec.europa.eu/external_relations/index_en.htm

directorate-General for humanitarian Aid: 
http://ec.europa.eu/echo/index_en.htm

EuropeAid Cooperation Office: 
http://ec.europa.eu/europeaid/index_en.htm

human rights: 
http://ec.europa.eu/external_relations/human_rights/intro/index.htm 
http://www.consilium.europa.eu/showPage.asp?lang=en&id=822&mode=g&name= 
http://www.europarl.europa.eu/committees/droi_home_en.htm

development cooperation and directorate-General for development: 
http://ec.europa.eu/development/index_en.cfm

(1) 

 Common Positions 2008/479/CFSP (OJ L 163, 24.6.2008) and 2008/652/CFSP (OJ L 213, 8.8.2008), and 
decision 2008/842/CFSP (OJ L 300, 11.11.2008). 

200 

 •

 •

millennium development goals (mdGs): 
http://www.un.org/millenniumgoals/

Cotonou Partnership Agreement: 
http://ec.europa.eu/development/geographical/cotonouintro_en.cfm

EUROPE IN ThE wORLd

Section 4

Contributing to security in the world

Background

To improve living conditions in partner countries and establish the prerequisites for sustainable 
development, the European Union continues to pursue its objective of effective multilateralism 
and supports peace and reconstruction processes by mobilising the range of instruments and 
means of action developed in recent years.

Through its common foreign and security policy, it conducts conflict prevention, police and 
military operations abroad and also takes action to combat international terrorism, the prolif-
eration of weapons of mass destruction and anti-personnel mines.

Common foreign and security policy

General

The Instrument for Stability (1), the European Union’s mechanism for preventing crises 
and conflicts, managing crises and emerging conflicts, and restoring peace, became 
fully operational during the year. This considerably strengthened the Commission’s 
ability to tackle crisis situations, as crisis response is the main component of the new 
instrument.

In 2008 a total of EUR 135.6 million was allocated to crisis response and preparedness 
programmes under the Instrument for Stability. Thematically, the measures supported 
covered a broad range of issues: confidence-building and mediation (the Philippines 
and Sri Lanka), support to regional peace-building capacity (Central African Republic 

(1) 

 Regulation (EC) No 1717/2006 (OJ L 327, 24.11.2006).

CONTRIBUTING TO SECURITY IN ThE wORLd 

201

and democratic Republic of the Congo), post-conflict support to local administrations 
(Aceh in Indonesia), support to interim administrations (kosovo and Somalia), support 
for elections (Georgia, Lebanon and Zambia), rule of law and the transitional justice 
system (Afghanistan, kosovo and kyrgyzstan), support to displaced persons (Syria) and 
measures to tackle the use of natural resources to fund conflict (satellite imagery for the 
kimberley process, atlas of natural resources conflicts).

Some EUR 12 million (to allow grants to be signed for the period June 2008 to december 
2009) was allocated under the Instrument for Stability to provide targeted assistance 
to ad hoc tribunals and transitional justice initiatives around the world. This assistance 
was used in 2008 to support the special court for Sierra Leone and to set up a truth and 
reconciliation commission in the Solomon Islands.

The Commission presented the 2007 annual report on the Instrument for Stability (1) 
on 11 April.

On 16 June the Council adopted the report on the European Union’s activities under the 
EU conflict prevention programme.

On 26 may it also adopted the 2007 annual report on the main aspects and basic choices 
of the CFSP.

In a statement on 16 July to mark the 10th anniversary of the Rome Statute of the 
International Criminal Court, the European Union stressed that the statute played a vital 
part in maintaining peace and strengthening international security. The Union and its 
member States stated their commitment to promoting the universality of the Rome 
Statute and protecting its integrity, calling on all non-party states to ratify it as soon as 
possible.

Implementation of the common foreign and security policy

The joint actions and common positions adopted by the Council in implementing the 
common foreign and security policy (CFSP) during the year concerned:

 •

in the Balkans:
 —

extension of the mandate of the European Union special representative in Bosnia 
and herzegovina (2);
extension and amendment of Common Position 2004/133/CFSP on restrictive 
measures against extremists in the former Yugoslav Republic of macedonia (3);

 —

(1) 
(2) 
(3) 

 COm(2008) 181 (OJ C 202, 8.8.2008).
 Joint Action 2008/130/CFSP (OJ L 43, 19.2.2008).
 Common Position 2008/104/CFSP (OJ L 36, 9.2.2008).

202 

EUROPE IN ThE wORLd

 —

 —
 —
 —

 —

 —

 —

 —

3);

2);

extension of the mandate of the European Union special representative in the 
former Yugoslav Republic of macedonia (1);
appointment of the European Union special representative for kosovo (
the European Union rule of law mission in kosovo, EULEx kosovo (
appointment of the head of the European Union rule of law mission in kosovo, 
EULEx kosovo (4);
amendment and extension of Joint Action 2006/304/CFSP on the establishment 
of a European Union planning team (EUPT kosovo) regarding a possible European 
Union crisis management operation in the field of rule of law and possibly other 
areas in kosovo (5);
renewal of measures in support of effective implementation of the mandate of 
the International Criminal Tribunal for the former Yugoslavia (6);
implementation of Common Position 2004/293/CFSP renewing measures in sup-
port of the effective implementation of the mandate of the International Criminal 
Tribunal for the former Yugoslavia (7);
implementation of Common Position 2004/694/CFSP renewing measures in sup-
port of the effective implementation of the mandate of the International Criminal 
Tribunal for the former Yugoslavia (8) and the extension thereof (9); 

 •

in South Caucasus:
 —

amendment and extension of the mandate of the European Union special rep-
resentative for South Caucasus (10);
a further contribution of the European Union to the conflict settlement process 
in Georgia/South Ossetia (11);
establishment of the European Union monitoring mission in Georgia, EUmm 
Georgia (12);
amendment of Joint Action 2008/736/CFSP on the European Union monitoring 
mission in Georgia, EUmm Georgia (13);

 —

 —

 —

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 
(10) 
(11) 
(12) 
(13) 

 Joint Action 2008/129/CFSP (OJ L 43, 19.2.2008).
 Joint Action 2008/123/CFSP (OJ L 42, 16.2.2008).
 Joint Action 2008/124/CFSP (OJ L 42, 16.2.2008).
 decision EULEx/1/2008 (OJ L 42, 16.2.2008).
 Joint Action 2008/228/CFSP (OJ L 75, 18.3.2008).
 Common Position 2008/223/CFSP (OJ L 70, 14.3.2008).
 decision 2008/732/CFSP (OJ L 247, 16.9.2008).
 decision 2008/733/CFSP (OJ L 247, 16.9.2008).
 Common Position 2008/761/CFSP (OJ L 260, 30.9.2008). 
 Joint Action 2008/132/CFSP (OJ L 43, 19.2.2008).
 Joint Action 2008/450/CFSP (OJ L 157, 17.6.2008).
 Joint Action 2008/736/CFSP (OJ L 248, 17.9.2008).
 Joint Action 2008/759/CFSP (OJ L 259, 27.9.2008).

CONTRIBUTING TO SECURITY IN ThE wORLd 

203

 —

appointment of the European Union special representative for the crisis in 
Georgia (1);
independent international fact-finding mission on the conflict in Georgia (

2);

 •

 •

 —
in Asia:
 —

 —
in Africa:
 —

 —
 —

 —

amendment of Joint Action 2007/369/CFSP on the establishment of the European 
Union police mission in Afghanistan (EUPOL Afghanistan) (3);
appointment of the European Union special representative for Afghanistan (
extension of the mandate of the European Union special representative for 
Afghanistan (5) and the amendment thereof (6);
extension of the mandate of the European Union special representative for cen-
tral Asia (7);
restrictive measures against Uzbekistan (

4);

8);

conclusion of the agreement between the European Union and the Republic of 
Cameroon on the status of the European Union-led forces in transit within the 
territory of the Republic of Cameroon (9);
the launching of the European Union military operation in the Republic of Chad 
and in the Central African Republic (EUFOR Tchad/RCA) (10);
amendment and extension of the mandate of the European Union special rep-
resentative for the African Great Lakes region (11);
amendment and extension of the mandate of the European Union special rep-
resentative for Sudan (12);
acceptance of third states’ contributions to the European Union military operation 
in the Republic of Chad and in the Central African Republic (13);
appointment of the head of mission for the European Union mission to provide 
advice and assistance for security sector reform in the democratic Republic of 
the Congo (EUSEC Rd Congo) (14);

 —

 —

 —

 —

 —

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 
(10) 
(11) 
(12) 
(13) 
(14) 

 Joint Action 2008/760/CFSP (OJ L 259, 27.9.2008).
 decision 2008/901/CFSP (OJ L 323, 3.12.2008).
 Joint Actions 2008/229/CFSP (OJ L 75, 18.3.2008) and 2008/643/CFSP (OJ L 207, 5.8.2008).
 Joint Action 2008/612/CFSP (OJ L 197, 25.7.2008).
 Joint Action 2008/131/CFSP (OJ L 43, 19.2.2008).
 Joint Action 2008/481/CFSP (OJ L 163, 24.6.2008).
 Joint Actions 2008/107/CFSP (OJ L 38, 13.2.2008) and 2008/900/CFSP (OJ L 323, 3.12.2008).
 Common Positions 2008/348/CFSP (OJ L 116, 30.4.2008) and 2008/843/CFSP (OJ L 300, 11.11.2008).
 decision 2008/178/CFSP (OJ L 57, 1.3.2008).
 decision 2008/101/CFSP (OJ L 34, 8.2.2008).
 Joint Action 2008/108/CFSP (OJ L 38, 13.2.2008).
 Joint Action 2008/110/CFSP (OJ L 38, 13.2.2008).
 decision ChAd/1/2008 (OJ L 56, 29.2.2008).
 decision EUSEC/1/2008 (OJ L 56, 29.2.2008).

204 

EUROPE IN ThE wORLd

 —

 —
 —
 —

 —

 —

 —

 —

 —

 —
 —

3);

2);

the European Union mission in support of security sector reform in the Republic 
of Guinea-Bissau (EU SSR Guinea-Bissau) (1);
restrictive measures imposed against Liberia (
amendment of Common Position 98/409/CFSP concerning Sierra Leone (
adoption of restrictive measures against the democratic Republic of the Congo 
and repealing Common Position 2005/440/CFSP (4);
amendment and extension of Joint Action 2007/405/CFSP on the European Union 
police mission undertaken in the framework of reform of the security sector and 
its interface with the system of justice in the democratic Republic of the Congo 
(EUPOL Rd Congo) (5);
amendment and extension of Joint Action 2007/406/CFSP on the European 
Union mission to provide advice and assistance for security sector reform in the 
democratic Republic of the Congo (EUSEC Rd Congo) (6);
implementation of Common Position 2004/161/CFSP renewing restrictive meas-
ures against Zimbabwe (7);
amendment of Common Position 2004/161/CFSP renewing restrictive measures 
against Zimbabwe (8), and its implementation (9);
European Union military coordination action in support of UN Security Council 
Resolution 1816 (2008) (EU NAVCO) (10);
renewal of the restrictive measures imposed against Côte d’Ivoire (
launch of a European Union military operation to contribute to the deterrence, 
prevention and repression of acts of piracy and armed robbery off the Somali 
coast (Atalanta) (12);

11);

 •

in the Indian Ocean:
 —

restrictive measures against the illegal government of Anjouan in the Union of 
Comoros (13);
repeal of Common Position 2008/187/CFSP concerning restrictive measures 
against the illegal government of Anjouan in the Union of Comoros (14);

 —

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 
(10) 
(11) 
(12) 
(13) 
(14) 

 Joint Action 2008/112/CFSP (OJ L 40, 14.2.2008).
 Common Position 2008/109/CFSP (OJ L 38, 13.2.2008).
 Common Position 2008/81/CFSP (OJ L 24, 29.1.2008).
 Common Position 2008/369/CFSP (OJ L 127, 15.5.2008).
 Joint Action 2008/485/CFSP (OJ L 164, 25.6.2008).
 Joint Action 2008/491/CFSP (OJ L 168, 28.6.2008).
 decision 2008/605/CFSP (OJ L 194, 23.7.2008).
 Common Position 2008/632/CFSP (OJ L 205, 1.8.2008).
 decision 2008/922/CFSP (OJ L 331, 10.12.2008).
 Joint Action 2008/749/CFSP (OJ L 252, 20.9.2008).
 Common Position 2008/873/CFSP (OJ L 308, 19.11.2008).
 decision 2008/918/CFSP (OJ L 330, 9.12.2008).
 Common Position 2008/187/CFSP (OJ L 59, 4.3.2008).
 Common Position 2008/611/CFSP (OJ L 197, 25.7.2008).

CONTRIBUTING TO SECURITY IN ThE wORLd 

205

 •

 •

 •

in the middle East:
 —

2);

amendment and extension of the mandate of the European Union special rep-
resentative for the middle East peace process (1);
amendment of Common Position 2003/495/CFSP on Iraq (
amendment of Joint Action 2005/889/CFSP establishing a European Union border 
assistance mission for the Rafah crossing point (EU BAm Rafah) (3);
implementation of Joint Action 2005/797/CFSP on the European Union police 
mission for the Palestinian territories (4);
amendment and extension of Joint Action 2005/190/CFSP on the European Union 
integrated rule of law mission for Iraq, EUJUST LEx (5);
amendment of decision 2008/134/CFSP on the European Union police mission 
for the Palestinian territories (6);
the temporary reception by member States of the European Union of certain 
Palestinians (7);
restrictive measures against Iran (
amendment of Joint Action 2005/797/CFSP on the European Union police mis-
sion for the Palestinian territories (9);

8);

 —
 —

 —

 —

 —

 —

 —
 —

in eastern Europe:
 —

 —

extension of the mandate of the European Union special representative for 
moldova (10);
extension for one year of the restrictive measures against certain officials of 
Belarus (11);
other subjects (
 —

amendment of decision 2001/80/CFSP on the establishment of the military staff 
of the European Union (13);

12) and regions:

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 

(9) 
(10) 
(11) 
(12) 

(13) 

 Joint Action 2008/133/CFSP (OJ L 43, 19.2.2008).
 Common Position 2008/186/CFSP (OJ L 59, 4.3.2008).
 Joint Actions 2008/379/CFSP (OJ L 130, 20.5.2008) and 2008/862/CFSP (OJ L 306, 15.11.2008).
 decision 2008/134/CFSP (OJ L 43, 19.2.2008).
 Joint Actions 2008/304/CFSP (OJ L 105, 15.4.2008) and 2008/480/CFSP (OJ L 163, 24.6.2008).
 decision 2008/482/CFSP (OJ L 163, 24.6.2008).
 Common Position 2008/822/CFSP (OJ L 285, 29.10.2008).
 Common Positions 2008/479/CFSP (OJ L 163, 24.6.2008) and 2008/652/CFSP (OJ L 213, 8.8.2008), decision 
2008/842/CFSP (OJ L 300, 11.11.2008).
 Joint Action 2008/958/CFSP (OJ L 338, 17.12.2008).
 Joint Action 2008/106/CFSP (OJ L 38, 13.2.2008).
 Common Positions 2008/288/CFSP (OJ L 95, 8.4.2008) and 2008/844/CFSP (OJ L 300, 11.11.2008).
 Joint actions relating to non-proliferation can be found under ‘Non-proliferation’ in Chapter V, Section 4, 
‘European security strategy and European security and defence policy ‘, of this Report.
 decision 2008/298/CFSP (OJ L 102, 12.4.2008).

206 

EUROPE IN ThE wORLd

 —

 —

 —

 —

amendment of Joint Action 2004/551/CFSP on the establishment of the European 
defence Agency (1);
establishment of a European Security and defence College (ESdC) and repealing 
Joint Action 2005/575/CFSP (2);
establishment of a mechanism to administer the financing of the common 
costs of European Union operations having military or defence implications 
(Athena) (3);
definition of common rules governing control of exports of military technology 
and equipment (4).

European security strategy and European security 
and  defence policy

General

In response to a request made by the European Council in december 2007, a report 
on the implementation of the 2003 European security strategy was presented at the 
december European Council by the Secretary-General/high Representative for the CFSP, 
in consultation with the Commission. The report outlines ways of improving and sup-
plementing the European security strategy, and reveals the continuing existence of the 
threats identified in 2003 as well as the emergence of fresh risks likely to threaten the 
security of the European Union, directly or indirectly, which it has to tackle globally.

The European Council of 11 and 12 december adopted a declaration on the enhancement 
of the European security and defence policy (ESdP), stating its determination to give it 
a fresh impetus. It agreed with the analysis of the report on the implementation of the 
2003 European security strategy and endorsed the declarations adopted by the Council 
on 8 december (on strengthening ESdP capabilities and on international security).

On 16 June the Council approved a Presidency report on European security and defence 
policy which covered all ESdP issues discussed in the first half of this year. The Presidency 
report on the second half of the year was adopted on 8 december.

On 10 November the Council adopted conclusions on the ESdP in which it conducted a 
broad review of recent developments and projects in the area of European security and 
defence policy. It discussed ESdP operations, the western Balkans, Afghanistan, civilian 

(1) 
(2) 
(3) 
(4) 

 Joint Action 2008/299/CFSP (OJ L 102, 12.4.2008).
 Joint Action 2008/550/CFSP (OJ L 176, 4.7.2008).
 decision 2008/975/CFSP (OJ L 345, 23.12.2008).
 Common Position 2008/944/CFSP (OJ L 335, 13.12.2008).

CONTRIBUTING TO SECURITY IN ThE wORLd 

207

crisis management capabilities, military capabilities and the European defence Agency, 
as well as a number of Presidency initiatives.

A European Union training programme in the field of European security and defence 
policy for the years 2008–10 was approved by the Council on 28 January. This pro-
gramme is structured according to the main training actors (the European Security and 
defence College and the European Police College) and to the different ESdP areas of 
interest (specific civilian and civil–military training activities and training activities in 
the military field).

On 23 June the Council also adopted a joint action establishing a European Security 
and defence College (1). The ESdC’s mission and objectives are to provide training in 
the ESdP field at the strategic level. On 10 November the Council approved guidelines 
for identifying and implementing lessons learned and good practice in civilian missions 
under the ESdP. It also approved the launch of the European young officers’ exchange 
scheme, modelled on Erasmus.

Non-proliferation

On 12 February, in the framework of the European Union strategy to combat the illicit 
accumulation and trafficking of small arms and light weapons (SALw) and their ammu-
nition, the Council adopted a joint action in support of the international instrument to 
enable states to identify and trace SALw in a timely and reliable manner (2).

On 17 march the Council adopted a joint action on support for European Union activities 
to promote the control of arms exports and the principles of the EU code of conduct 
on arms exports (3).

The European Union code of conduct on arms exports was the subject of a resolution 
adopted by the European Parliament on 13 march. Calling on member States that were 
opposed to a legally binding code to reconsider their position, Parliament expressed its 
belief that the European Union’s contribution to an internationally binding arms trade 
treaty would gain in credibility as soon as its own arms control regime became legally 
binding.

On 8 december the Council laid down common rules, by means of a common posi-
tion (4), to govern export controls on military technology and equipment, replacing the 
previous code of conduct.

(1) 
(2) 
(3) 
(4) 

 Joint Action 2008/550/CFSP (OJ L 176, 4.7.2008).
 Joint Action 2008/113/CFSP (OJ L 40, 14.2.2008).
 Joint Action 2008/230/CFSP (OJ L 75, 18.3.2008).
 Joint Action 2008/944/CFSP (OJ L 335, 13.12.2008).

208 

EUROPE IN ThE wORLd

As part of the further implementation of the European Union strategy against prolif-
eration of weapons of mass destruction, the Council adopted joint actions on support 
for the activities of the International Atomic Energy Agency (14 April) (1), the world 
health Organisation (14 April) (2) and the preparatory commission of the Comprehensive 
Nuclear Test Ban Treaty Organisation (15 July) (3). On 14 may it adopted a further joint 
action (4) in support of the implementation of United Nations Security Council Resolution 
1540 (2004). On 10 November the Council adopted a joint action (5) in support of the 
Biological and Toxin weapons Convention. On 8 december it endorsed the document 
‘New lines for action by the European Union in combating the proliferation of weapons of 
mass destruction and their delivery systems’ and, at its meeting of 18 and 19 december, 
it adopted a decision in support of the hague Code of Conduct Against Ballistic missile 
Proliferation.

As part of its campaign against mines, on 24 November the Commission adopted the 
guidelines on European Community mine action 2008–13 (6).

The Council also adopted a joint action (7) on 23 June in support of the universalisation 
and implementation of the 1997 Convention on the Prohibition of the Use, Stockpiling, 
Production and Transfer of Anti-Personnel mines and on their destruction, in the frame-
work of the European security strategy.

The International Convention on Cluster munitions (adopted in dublin in may) was 
opened for signature on 4 december.

Terrorism

On 30 may the Council adopted a European Union statement in support of the global 
initiative to combat nuclear terrorism. It also adopted conclusions on improving co-
operation in the area of countering radicalisation and recruitment to terrorism (8 July) 
and a document on the revised strategy on terrorist financing (17 July).

On 16 december the Council updated the common positions on the application of 
specific measures to combat terrorism (8).

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 

 Joint Action 2008/314/CFSP (OJ L 107, 17.4.2008).
 Joint Action 2008/307/CFSP (OJ L 106, 16.4.2008).
 Joint Action 2008/588/CFSP (OJ L 189, 17.7.2008).
 Joint Action 2008/368/CFSP (OJ L 127, 15.5.2008).
 Joint Action 2008/858/CFSP (OJ L 302, 13.11.2008).
 SEC(2008) 2913.
 Joint Action 2008/487/CFSP (OJ L 165, 26.6.2008).
 Common Position 2008/959/CFSP (OJ L 338, 17.12.2008).

CONTRIBUTING TO SECURITY IN ThE wORLd 

209

Contribution to stability in the Balkans and in South Caucasus

with a view to contributing to stability in the Balkans, on 4 February the Council de-
cided (1) to deploy a rule of law mission to kosovo (EULEx kosovo) (2) and to appoint a 
European Union special representative for kosovo (3). The mandate of the mission is to 
assist the kosovo authorities in all areas relating to the rule of law, but in particular in 
connection with the police, justice, customs and prison services.

In South Caucasus, the Council decided on 15 September to deploy a civilian monitoring 
mission to Georgia (EUmm Georgia) (4) and to appoint a European Union special repre-
sentative for the crisis in Georgia (5). The objective of the mission is to contribute to sta-
bility throughout Georgia and the surrounding region in compliance with the six-point 
agreement of 12 August and the subsequently adopted implementing measures.

Contribution to peace and security in Africa

Sudan/Darfur

In its conclusions of 16 June the Council expressed its deep concern over the deteriora-
tion of the security situation in Sudan, which is seriously jeopardising the implementa-
tion of the comprehensive peace agreement and a peaceful settlement of the conflict 
in darfur. It emphasised the need to accelerate deployment of the joint United Nations/
African Union peacekeeping mission in darfur (African Union/United Nations hybrid 
Operation in darfur — Unamid). The Council also recalled that EUFOR Tchad/RCA (see 
below) is a key contributor, together with the UN mission in the Central African Republic 
and Chad, to bringing security to the region and, by consequence, contributes to the 
efforts to consolidate peace and reconciliation in the region, including an improvement 
of the humanitarian situation.

Chad, Central African Republic

The European Union military operation in Chad and the Central African Republic (EUFOR 
Tchad/RCA) was launched on 28 January. As a military bridging operation coordinated 
with the United Nations minurcat mission, EUFOR Tchad/RCA reinforces the European 
Union response to the darfur crisis as part of a regional approach. The operation is 

(1) 
(2) 

(3) 
(4) 
(5) 

 Joint Action 2008/124/CFSP (OJ L 42, 16.2.2008).
 See ‘kosovo’ in Chapter V, Section 1, ‘Enlargement process, pre-accession strategy and stabilisation and 
association process’, of this Report.
 Joint Actions 2008/123/CFSP and 2008/124/CFSP (OJ L 42, 16.2.2008).
 See ‘Caucasus’ in Chapter V, Section 1, ‘European neighbourhood policy’, of this Report.
 Joint Actions 2008/736/CFSP (OJ L 248, 17.9.2008), 2008/759/CFSP and 2008/760/CFSP (OJ L 259, 
27.9.2008).

210 

EUROPE IN ThE wORLd

conducted in consultation with the governments of Chad and the Central African 
Republic.

Democratic Republic of the Congo

The EUPOL Rd Congo mission, which took over from EUPOL kinshasa in June 2007, 
continued throughout the year to support and assist the Congolese authorities in their 
security sector reform efforts in respect of the police and its interaction with the jus-
tice sector. The mission also provides a permanent presence in the eastern part of the 
democratic Republic of the Congo with a view to providing assistance and expert advice 
for the stabilisation process in that part of the country.

Guinea-Bissau

Following the Council decision of 12 February (1), the European Union launched a mis-
sion under the European security and defence policy to provide advice and assistance 
on the national security sector reform process (EU SSR Guinea-Bissau). Its objective is to 
put the national SSR strategy into operation by assisting in the development of detailed 
implementation plans for restructuring the armed forces and security forces.

Somalia

On 19 September the Council decided to conduct a European Union military coordina-
tion action (EU NAVCO) (2) with the task of supporting the surveillance and protection 
activities carried out by some member States off the Somali coast. This action, which is 
also intended to support the escorts of the world Food Programme’s humanitarian con-
voys, is in keeping with Resolution 1816 (2008) adopted by the United Nations Security 
Council on 2 June.

On 8 december the Council adopted a decision on the launch of a European Union mili-
tary operation to contribute to the deterrence, prevention and repression of acts of piracy 
and armed robbery off the Somali coast (3) (EU Navfor Somalia/operation Atalanta).

Middle East peace process

Progress on the middle East peace process brought the prospect of a lasting solution to 
the Israeli–Palestinian conflict. Following the opening of negotiations in Annapolis in 
November 2007, bilateral talks continued between Israeli and Palestinian leaders with 

(1) 
(2) 
(3) 

 Joint Action 2008/112/CFSP (OJ L 40, 14.2.2008).
 Joint Action 2008/749/CFSP (OJ L 252, 20.9.2008).
 decision 2008/918/CFSP (OJ L 330, 9.12.2008).

CONTRIBUTING TO SECURITY IN ThE wORLd 

211

a view to concluding a peace agreement before the end of 2008. despite the failure to 
reach agreement, the talks touched on all the key issues and showed the potential for 
further intensive negotiations. At the meeting of 9 November, the Quartet and the war-
ring parties adopted a joint declaration underlining their commitment to continuing 
the process to find a comprehensive solution.

The European Union expressed its full support for the Annapolis process and its readi-
ness to assist the parties in the negotiations.

The establishment of diplomatic relations between Lebanon and Syria marked another 
important step in the stabilisation of the region (see below).

Occupied Palestinian territories

while the situation in the region saw some positive developments in 2008, there were 
also issues for concern and persistent tension.

At the start of the year, the humanitarian and political crisis in the Gaza Strip, caused by 
the embargo on the movement of persons and goods, further paralysed the economy. 
The European Parliament and the Council expressed their concern at this situation, con-
demning the continued firing of rockets into Israeli territory (resolution of 21 February, 
conclusions of 28 January). The Council also condemned the accelerated expansion of 
settlements on several occasions (e.g. the conclusions of 26 and 27 may, and of 8 and 
9 december). Following an upsurge in the violence committed against Palestinian civil-
ians by Israeli settlers in the west Bank, the European Union once again condemned 
these acts of brutality in a statement by the Presidency of the Council of the Union 
adopted on 31 October.

In addition to its political engagement, the European Union continued to provide emer-
gency and humanitarian assistance to the occupied Palestinian territories in response 
to this situation. Following the december 2007 international donors’ conference for the 
Palestinian state, the Commission transferred a volume of aid in excess of EUR 540 mil-
lion for 2008. These funds were channelled via the new financing instrument Pegase 
2008–10 (Palestinian–European mechanism for management of Socioeconomic Aid), 
which replaced the temporary international mechanism. They were allocated to the 
Palestinian Authority and to the United Nations Relief and works Agency for Palestine 
Refugees in order to support the creation of a Palestinian state and to improve living 
conditions for Palestinian refugees in the middle East. Under the Palestinian Authority’s 
reform and development plan (presented in december 2007), these funds will be used 
to provide aid in the following four areas: governance, social development, economic 
and private sector development, and public infrastructure. As specified in the EU action 
strategy (presented in November 2007), the Union has thus addressed its assistance to 
state building.

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EUROPE IN ThE wORLd

On 24 June an international conference on supporting Palestinian civil security and the 
rule of law took place in Berlin, at which the Commission confirmed the importance 
that it attached to continuing its support to the Palestinian Authority and the people 
of Palestine.

In order to deepen relations between the European Union and the Palestinian Authority, 
on 20 October the Council adopted a decision approving the establishment of the fol-
lowing four subcommittees (1): economic and financial matters, trade and customs co-
operation; social affairs; energy, environment, transport, science and technology; and 
human rights, good governance and the rule of law. The aim of these subcommittees is 
to take forward the implementation of the interim association agreement (2) and action 
plan established under the neighbourhood policy (3).

Israel

At the association council meeting in Luxembourg on 16 June, the European Union 
welcomed the developing partnership with Israel in a number of areas, in particular on 
the question of human rights (4). however, it also stressed its position and expectations 
regarding the peace process and the situation in the Palestinian territories.

Lebanon

The security situation in Lebanon was marked by violent incidents that were round-
ly condemned by the Council on several occasions (conclusions of 28 January), by 
the Presidency of the Council of the European Union (statements of 13 August and 
11 September) and by the European Parliament (22 may).

however, the political situation in Lebanon was improved by the agreement reached 
in doha on 21 may that opened the path towards resumption of the functioning of all 
democratic institutions of the State of Lebanon and allowed the election of General 
Suleiman as President of Lebanon. The agreement was welcomed by Parliament (in a 
resolution adopted on 22 may) and by the Council (conclusions of 26 and 27 may, and 
of 10 November).

The establishment of diplomatic relations between Lebanon and Syria on 15 October 
marked a further important step in the stabilisation of the region.

(1) 
(2) 
(3) 

(4) 

 COm(2008) 524.
 OJ L 187, 16.7.1997.
 See ‘European Neighbourhood and Partnership Instrument’ in Chapter V, Section 1, ‘European neighbour-
hood policy’, of this Report.
 See ‘Southern mediterranean’ in Chapter V, Section 1, ‘European neighbourhood policy’, of this Report.

CONTRIBUTING TO SECURITY IN ThE wORLd 

213

Implementation of the EUR 500 million financial assistance programme covering the 
period 2006–10 (announced at the international conference on support for Lebanon in 
January 2007) continued in 2008. The Commission supported the economic, social and 
institutional reform process in Lebanon through the European neighbourhood policy 
instruments (1). A total of EUR 50 million was allocated to Lebanon in 2008 for projects 
relating to the judiciary, the private sector, improvement of the business climate, mine 
clearance and the reconstruction of the Nahr al-Bared Palestinian refugee camp.

The Commission also contributed substantially to the political stabilisation of the country 
under the Instrument for Stability (e.g. the border management reform project and sup-
port to the Special Tribunal for Lebanon). Support for electoral reform was a key priority 
in 2008 with a view to the parliamentary elections scheduled for 2009.

As the leading donor to Palestinian refugees in Lebanon, the Commission co-chaired 
the international conference on rebuilding the Nahr al-Bared refugee camp in Vienna 
on 23 June.

Syria

Syria made a number of overtures at regional level during the year, in particular concern-
ing two of its neighbours: Lebanon (normalisation of bilateral relations) and Israel (re-
sumption of the indirect peace talks). The marseille ministerial declaration of 3 November 
welcomed both major developments.

Against this background and in the light of the consensus among member States to en-
courage Syria to continue on this track, the Commission started work with the Syrian au-
thorities on updating the draft association agreement, the adoption procedure for which 
had been suspended by the Council in 2004. The Commission and the Syrian authori-
ties agreed on a revised version of the association agreement on 24 and 25 November. 
Following its adoption by the Commission on 12 december (2), the proposal was submit-
ted for examination by the Council.

The Commission also supported a number of projects under the national indicative 
programme in keeping with the social and economic reforms introduced by Syria. Since 
2007, aid totalling EUR 75 million has been granted to Syria to assist the large numbers 
of Iraqi refugees in the country.

(1) 
(2) 

 See ‘Southern mediterranean’ in Chapter V, Section 1, ‘European neighbourhood policy’, of this Report.
 COm(2008) 853. See ‘Southern mediterranean’ in Chapter V, Section 1, ‘European neighbourhood policy’, 
of this Report.

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EUROPE IN ThE wORLd

Reconstruction process

Afghanistan

The European Union continued to play a major role this year in the reconstruction proc-
ess in Afghanistan. At the international conference on support to Afghanistan in Paris on 
12 June, the Commission pledged EUR 500 million for the period 2008–10.

In 2008 Community aid totalled EUR 144 million and was targeted at the three priority 
sectors of the strategy for Afghanistan (reform of the justice sector and the police, rural 
development including alternatives to poppy production, and health).

As part of its support to the police, the European Union completed the deployment of 
the police mission to Afghanistan (EUPOL Afghanistan, under the European security 
and defence policy (ESdP)) in march. The mission contributes to the establishment of an 
Afghan police force under Afghan ownership that respects human rights and operates 
within the framework of the rule of law.

The Commission focused its efforts in the justice sector on the institutional reform pro-
gramme, coordinating with the ESdP EUPOL mission. European experts based in the key 
Afghan justice institutions helped to establish a new staff recruitment framework and 
contributed to the development of the national strategy for the justice sector.

most of the EU member States continued to contribute to the UN-mandated International 
Security Assistance Force operating under NATO command. Their total contribution 
amounted to approximately 25 000 troops.

The European Parliament commented on Afghanistan several times in the course of the 
year, adopting inter alia a resolution ‘Stabilisation of Afghanistan: Challenges for the EU 
and the international community’ on 8 July.

Iraq

The European Union continued to contribute substantially to the international recon-
struction effort in Iraq under the International Reconstruction Fund Facility for Iraq 
(IRFFI), managed by the world Bank and the United Nations.

At the annual review conference of the international compact with Iraq (ICI) in Stockholm 
on 29 may, the European Union stated that it was ready to support the further imple-
mentation of the ICI by contributing to the partnership for development in accordance 
with Iraqi priorities. It reaffirmed its support for the goal of a secure, stable, democratic, 
prosperous and unified Iraq where human rights are respected.

CONTRIBUTING TO SECURITY IN ThE wORLd 

215

The financial assistance provided to that end in 2008 amounted to EUR 92 million, in-
cluding humanitarian aid. Aid was geared mainly to technical assistance and developing 
national institutions and capacities (support to the Council of Representatives, involving 
Iraqi ministers in the implementation of the trade and cooperation agreement), while 
maintaining support for basic services (health, education) and assistance to displaced 
persons and to refugees.

A milestone in the rebuilding of the country was reached with the implementation of the 
Community programme to strengthen the rule of law in Iraq and of the public-finance 
management programme (under the IRFFI).

Negotiations also continued on a trade and cooperation agreement. Conclusion of the 
agreement will help set the basis for the first-ever contractual relations between the 
European Union and Iraq.

General references and other useful links

 •

 •

 •

 •

 •

 •

 •

 •

 •

External relations: 
http://ec.europa.eu/external_relations/index_en.htm

Common foreign and security policy, civilian operations: 
http://ec.europa.eu/external_relations/cfsp/intro/index.htm

United Nations: 
http://www.un.org/english/

International Atomic Energy Agency: 
http://www.iaea.org/

Council website on European security and defence policy: 
http://www.consilium.europa.eu/showPage.asp?id=261&lang=en&mode=g

European defence Agency: 
http://eda.europa.eu/

Rebuilding Iraq: 
http://ec.europa.eu/external_relations/iraq/intro/index.htm

International Reconstruction Fund Facility for Iraq: 
http://www.irffi.org/

middle East peace process: 
http://ec.europa.eu/external_relations/mepp/index.htm

216 

Section 5

EUROPE IN ThE wORLd

Multilateral cooperation

Background

The European Union continues to work towards enhancing its cooperation with the various 
international bodies in which it is a member or partner. Where the priorities of these institutions 
coincide with those of the Union, this cooperation takes the form not only of active participation 
in the work of the body but also of financial support.

United Nations

Cooperation between the European Union and the United Nations continued to grow 
in 2008 through the extension of the various networks of contacts and the establish-
ment of cooperation and dialogue in every area of EU and UN external relations (peace, 
security and human rights, economic and social affairs, development and humanitarian 
aid). In addition to close interaction at policy and operational levels, representatives of 
the Commission and the UN Secretary-General held several high-level meetings in the 
course of the year.

The Commission continued to strengthen its partnership with the UN in policy and 
operational areas both at headquarters and individual country level. The Commission’s 
policy of partnership with the UN was in particular reflected in a steady and substan-
tial increase in the use of UN agencies, funds and programmes, which, owing to the 
diversity of operations, has led to an increase in its share of contributions over the last 
10 years (from EUR 150 million to around EUR 1 billion in 2008). An evaluation of the 
Commission’s external cooperation with partner countries through UN organisations was 
finalised in June. The results of the evaluation showed that both the Commission and 
the United Nations, as well as the partner countries, have benefited from this increased 
cooperation.

On 7 may the Commission signed a joint declaration with the International Atomic 
Energy Agency. The main aim of the declaration is to reinforce the quality and intensity 
of cooperation between the two institutions on nuclear energy for peace and develop-
ment, including through identifying specific priority areas and synergies.

On 16 June the Council approved the European Union’s priorities for the 63rd General 
Assembly of the United Nations: reform of the UN system; gender equality; the rule of 

mULTILATERAL COOPERATION 

217

law; international environmental governance; conflict prevention, peacekeeping and 
peace-building; international justice; the fight against terrorism and non-proliferation; 
the responsibility to protect; tackling climate change; implementation of the millennium 
development goals; financing for development; food security; humanitarian assistance; 
and human rights. The European Union was represented at the general debate of the 
63rd General Assembly from 22 to 26 September, notably attending meetings on Africa’s 
development needs and on the millennium development goals.

On 25 September the Commission, the United Nations and the world Bank signed a joint 
declaration on post-crisis assessments and recovery planning. The declaration establishes 
a common platform for mobilising the three institutions and their resources in order to 
harmonise and coordinate post-crisis response frameworks, enhance country resilience 
to crises by answering the recovery needs of vulnerable populations and strengthen the 
capacity of national institutions for effective prevention, response and recovery.

On the same day the Council adopted a decision on the conclusion on behalf of the 
European Community of the United Nations Convention Against Corruption.

The European Union maintained its support for the UN reform process and for the 
consolidation and effective work of the new bodies created following the 2005 world 
Summit. having been invited to take part in meetings as an institutional donor, the 
European Community contributed actively to the Peacekeeping Commission, which 
continued its work on Burundi and Sierra Leone, and launched new initiatives concern-
ing Guinea-Bissau (adopting a strategic framework for peace-building in the country on 
1 October) and the Central African Republic.

The Union contributed substantially in 2008 to the immediate action plan for the reform 
of the United Nations Food and Agriculture Organisation (FAO) adopted at the November 
extraordinary session of the FAO. The aim of the plan is to prepare the organisation to 
adapt and respond to the challenges of the 21st century.

Further examples of cooperation with the United Nations can be found in the present chap-
ter in the sections on international trade (Section 2), the protection and promotion of com-
mon values, development policy, and humanitarian aid (Section 3), European security and 
defence policy, the middle East peace process and the reconstruction process (Section 4).

Council of Europe

Cooperation with the Council of Europe continued to develop in 2008 on the basis of 
the memorandum of understanding between the European Union and the Council of 
Europe signed in may 2007. One example of the implementation of the agreement was 
the signing in June of an exchange of letters formalising and laying the foundations 
for increased cooperation between, on the one hand, the Commission’s directorates-

218 

EUROPE IN ThE wORLd

General for External Relations and Enlargement and, on the other, the Commission for 
democracy through Law (‘Venice Commission’), the Council of Europe body specialising 
in constitutional and electoral law.

The European Union–Council of Europe quadripartite meetings (involving the European 
Union Council Presidency, the European Commission, the Council of Europe Presidency 
and the Secretariat of the Council of Europe) took a more political turn this year, focusing 
on the regional crises faced by both organisations.

discussions centred on the situation in the western Balkans at the meeting of 10 march, 
in particular the importance of continuing cooperation between the two organisations 
for the benefit of the countries of the region in the form of joint aid programmes.

The meeting of 10 November dealt with the situation in South Caucasus and the conse-
quences of the crisis following the outbreak of open conflict in Georgia in August. The par-
ticipants raised the prospect of cooperation between the two organisations with a view 
to preventing a recurrence of such events, rebuilding confidence between the parties and 
ensuring respect for human rights, democracy and the rule of law in the region.

Organisation for Security and Cooperation in Europe

Throughout the year the Commission continued to enhance coherence between the 
activities of the Organisation for Security and Cooperation in Europe and European 
Union policies as well as their complementarity. Issues of particular importance for co-
operation between the two organisations included the OSCE’s commitment on border 
management with Afghanistan, measures to be taken following the outbreak of conflict 
between Georgia and Russia in August, and the preparations for the kazakh Presidency 
of the OSCE in 2010.

The Commission took part in all the OSCE’s regular activities scheduled in 2008 in the 
three dimensions covered by the organisation. The Commission fulfilled its role of lead-
ing for the European Union on issues related to the economic and environmental dimen-
sion, notably in the 2008 Economic and Environmental Forum, which examined how to 
improve cooperation between participating states on maritime and inland waterways 
so as to increase security and protect the environment in the OSCE area.

World Bank and regional development banks

On 3 and 5 march the group of European Executive directors at the world Bank paid 
their fifth annual visit to the European institutions in Brussels, where they met all the key 
Commission, NGO and European Parliament actors. discussions focused on the direc-
tion and strategy of the world Bank, present and future, including Europe’s role in the 

mULTILATERAL COOPERATION 

219

institution, and the EU policies of relevance to the work of the Bank’s EU coordination 
group. The Commission’s contributions to world Bank trust funds and the world Bank’s 
role as an implementing partner in EU initiatives were also discussed.

during the world Bank and International monetary Fund spring meetings in April, the 
Commission contributed to the discussions on growth strategies in Africa, rising food 
and energy prices, and world Bank governance reforms.

In July the Commissioner responsible for economic and monetary affairs met the newly 
appointed world Bank Chief Economist for talks on the Chief Economist’s priorities over 
the next two years, the global economic outlook and the world Bank’s role in the EU-12, 
the western Balkans and European neighbourhood policy countries.

Another high-level meeting took place in July, during the G8 summit, when the 
Commission President met the world Bank President to discuss cooperation between 
the two institutions in the context of the Bank’s long-term strategy and soaring food 
prices, and governance reform.

The Commission also contributed to the debates on climate change at the world Bank/
ImF autumn meetings.

As regards regional development banks, the Commission took part as an observer in the 
49th annual meeting of the Inter-American development Bank (4 to 8 April, miami), the 
41st annual meeting of the Asian development Bank (3 to 6 may, madrid) and the 43rd 
annual meeting of the African development Bank (14 and 15 may, maputo).

In march, together with the Asian development Bank, the Commission organised the 
joint conference on European and Asian integration in order to discuss achievements 
and challenges in integration and financial stability.

On 18 and 19 June, together with the world Bank and the African development Bank, 
the Commission attended the inaugural partnership meeting in Tunis, a joint reinforced 
cooperation process among the three institutions. The purpose of the meeting was to 
review the track record in cooperation and identify obstacles, good practices and chal-
lenges still to be faced. The African development Bank is also a key actor in the context 
of the European Union–Africa strategic partnership adopted in 2007.

International Monetary Fund

The Commissioner responsible for economic and monetary affairs represented the 
Commission as an observer at the spring meetings of the International monetary Fund 
in washington dC on 12 and 13 April, and contributed to the discussions, in particular 
on sovereign wealth funds.

220 

EUROPE IN ThE wORLd

The Commission was represented at the International working Group of Sovereign 
wealth Funds, set up by the ImF with the participation of the fund originators, and con-
tributed to the formulation of the generally agreed principles and practices, endorsed 
by the ministers of the International monetary and Financial Committee at the ImF’s 
annual meeting (11 to 13 October).

The Commission received the ImF mission for consultations with the euro-area countries 
under Article IV of the ImF Articles of Agreement (13 to 22 may).

The Commission also decided to second an official to the ImF to represent the 
Commission and support meetings of the EURImF (the group of European representa-
tives to the ImF).

European Bank for Reconstruction and Development

during 2008 the European Bank for Reconstruction and development (EBRd) committed 
a total of EUR 5.2 billion for investment projects, reflecting an increase in operations in 
eastern Europe and central Asia.

At their annual meeting, this year held in kiev in may, EBRd Governors adopted deci-
sions on the following:

 •

 •

 •

the allocation of the Bank’s EUR 1.1 billion 2007 net income to a strategic reserve 
(EUR 850 million), to the European Union/G8-led financial effort for Chernobyl 
(EUR 135 million) and to support for the Bank’s projects, notably in the form of tech-
nical assistance (EUR 115 million);

the election of the new President; and

the request to the Board of directors to undertake a strategic review of the implica-
tions of granting recipient country status to Turkey; a recommendation to this effect 
was approved by the Board of directors on 23 September and endorsed by the Board 
of Governors on 24 October.

In 2008 the tripartite agreement on cooperation in the eastern neighbourhood between 
the Commission, the EBRd and the European Investment Bank (EIB), signed in december 
2006, resulted in one project being finalised and signed. A further 18 projects in the 
western Balkans were granted technical assistance under the infrastructure project facil-
ity. The Commission also adopted a decision with a view to the signing of an agreement 
between the Commission, the EBRd and the EIB on arrangements for cooperation with 
Turkey.

The new EBRd environment and social policy, which reflects Commission priorities, was 
adopted on 12 may.

mULTILATERAL COOPERATION 

221

General references and other useful links

 •

 •

 •

 •

 •

 •

 •

 •

 •

EU relations with the United Nations: 
http://ec.europa.eu/external_relations/un/index.htm

United Nations: 
http://www.un.org/english/

EU relations with the Council of Europe: 
http://ec.europa.eu/external_relations/coe/index.htm

Council of Europe: 
http://www.coe.int/

The European Union and the Organisation for Security and Cooperation in Europe: 
http://ec.europa.eu/external_relations/osce/index.htm

Organisation for Security and Cooperation in Europe: 
http://www.osce.org/

world Bank: 
http://www.worldbank.org/

International monetary Fund: 
http://www.imf.org/external/index.htm

European Bank for Reconstruction and development: 
http://www.ebrd.com/index.htm

Chapter VI

Life of the institutions, other bodies  
and agencies

In 2008 the institutions established by the Treaty of Rome celebrated their 50th 
anniversary.

European Parliament

Composition of Parliament

 •

 •
 •

 •

 •

 •

 •

 •

European People’s Party (Christian democrats) and European democrats 
(EPP–Ed), chaired by mr daul
Socialist Group in the European Parliament (PES), chaired by mr Schulz
Alliance of Liberals and democrats for Europe (ALdE),  
chaired by mr watson
Union for Europe of the Nations (UEN), co-chaired by ms muscardini and 
mr Crowley
Greens/European Free Alliance (Greens/EFA), co-chaired by ms Frassoni 
and mr Cohn-Bendit
Confederal Group of the European United Left/Nordic Green Left  
(GUE/NGL), chaired by mr wurtz
Independence/democracy Group (Id), co-chaired by ms dahl and 
mr Farage
Non-attached (NI)

288

217
100

43

43

41

22

31

Parliamentary reform

On 8 July, in the light of the proposals by the working Party on Parliamentary Reform, 
Parliament adopted amendments to its Rules of Procedure (1) laying down in particular 

(1) 

 OJ L 44, 15.2.2005.

224 

LIFE OF ThE INSTITUTIONS, OThER BOdIES ANd AGENCIES 

that doubts concerning the admissibility of questions to the Council or the Commission 
were to be settled by the President. The minimum number of members required to form 
a political group was increased to 25 (or 3.1 % of members), with at least seven countries 
represented, with a view to avoiding undue fragmentation. Parliament introduced a 
new ‘short presentation’ procedure, whereby only the rapporteur and the Commission 
(if it so wished) would be given the floor. In addition, only a political group or a group of 
at least 40 members would be able to table an alternative motion for a non-legislative 
resolution. Parliament also amended its Rules of Procedure to include guidelines for the 
approval of the Commission (new Annex xVIb) and to specifically allow Parliament to 
use the symbols of the European Union (new Rule 202a).

Parliament’s work

In 2008 Parliament addressed 7 322 questions to the Commission: 6 570 written ques-
tions, 659 oral questions with debate and 93 during question time. Parliament addressed 
1 037 questions to the Council: 547 written questions, 413 oral questions with debate 
and 50 during question time.

Parliament received over 1 000 new petitions in 2008, dealing in particular with the 
environment and nature protection.

Internal policy

The year saw the adoption at first reading, as agreed at the december European Council 
as well as at a number of trialogues, of the six proposals making up the energy and cli-
mate change package (december II part-session). The adoption of this package barely 
a year after the tabling of the Commission proposals reflected a true desire for inter-
institutional cooperation.

The year also saw major legislative progress in a number of other fields, including the 
adoption of proposals on consumer credit (1) (January part-session), the internal market 
in Community postal services (2) (January part-session), the adoption of common rules 
in the field of civil aviation security (3) (march part-session), and the adoption at second 
reading of the working-time directive. Agreement was also reached at first reading on 
the review of the toy safety directive (december II part-session).

Parliament also confirmed the agreement at first reading on the Galileo programme 
(April part-session), giving its backing to the deployment phase of the programme, which 

(1) 
(2) 
(3) 

 directive 2008/48/EC (OJ L 133, 22.5.2008).
 directive 2008/6/EC (OJ L 52, 27.2.2008).
 Regulation (EC) No 300/2008 (OJ L 97, 9.4.2008).

EUROPEAN PARLIAmENT 

225

runs until 2013. It decided to create a special budget line for Galileo’s administrative 
expenses (march part-session).

In the field of energy, Parliament adopted a resolution on the action plan for energy ef-
ficiency (January II part-session). At the June II part-session, the third energy package (1) 
prompted a wide-ranging debate, particularly on the question of separating ownership 
of the networks and ownership of production (‘unbundling’). Parliament also called for 
the Agency for the Cooperation of Energy Regulators to be given greater power and to 
be more independent of the Commission.

On the environment, as part of the mid-term review of the European environment and 
health action plan 2004–10, Parliament expressed its regret, in particular, that there was 
no policy of prevention. It called on the Commission to meet two basic objectives by 
2010: to raise public awareness and to reconsider European risk-reduction policy. It also 
adopted the new directives on waste (2) and on water policy and chemical pollution of 
surface water (3) (June II part-session).

The financial crisis gave rise to major debates on transparency in the financial field. A 
resolution adopted by Parliament at its February part-session called on the Commission 
to introduce an information system for the general public on all recipients of EU subsi-
dies and amounts to be recovered. Three resolutions were adopted (September II and 
October I part-sessions) asking the Commission to table legislative initiatives on hedge 
funds and private equity, transparency of institutional investors, and follow-up of the 
Lamfalussy directives.

Regarding the ‘third pillar’, the ‘justice package’ was approved, as were a number of very 
important texts on migration, such as the proposal for a directive on the conditions 
of entry and residence of third-country nationals for the purposes of highly qualified 
employment (‘blue card’) (November I part-session), and the common standards and 
procedures for the return of third-country nationals residing illegally (June part-session). 
Parliament also presented two reports dealing with the protection of personal data 
and the fight against terrorism respectively (September II part-session). The subsequent 
debate highlighted Parliament’s concerns regarding the safeguarding of fundamental 
rights and respect for democracy in the fight against terrorism.

External policy

The European Parliament also delivered strong messages in the course of the year in 
the field of external policy.

(1) 

(2) 
(3) 

 COm(2007) 528, COm(2007) 529, COm(2007) 530, COm(2007) 531 and COm(2007) 532 (OJ C 4, 
9.1.2008).
 directive 2008/98/EC (OJ L 312, 22.11.2008).
 directive 2008/105/EC (OJ L 348, 24.12.2008).

226 

LIFE OF ThE INSTITUTIONS, OThER BOdIES ANd AGENCIES 

It adopted a strong position on Iran, with a resolution calling for respect for human rights 
and international obligations (January II part-session), a resolution on the execution of 
juvenile offenders (June II part-session) and one on the hangings in Iran (September I 
part-session).

China also occupied a central place in debates. Referring to the situation in Tibet, 
Parliament called on China to end its human rights abuses (April I part-session). Following 
a debate, Parliament called on the EU Council Presidency to try to find a common posi-
tion on the presence of the heads of State or Government at the opening ceremony 
of the Olympic Games in Beijing. Also, by awarding the 2008 Sakharov Prize to hu Jia, 
Parliament showed that it firmly and resolutely acknowledged the daily struggle for 
freedom of all Chinese human rights defenders.

Parliament also adopted positions on a broad range of questions, in most cases leading 
to resolutions which were well supported. It commented in particular on the continued 
imprisonment of detainees in myanmar, the routine killing of civilians in Somalia (June 
II part-session), and the military coup in mauritania and the albino killings in Tanzania 
(September I part-session).

more generally, Parliament adopted its annual report on human rights in the world in 
2007 and on the EU’s human rights policy, as well as a report on EU election observation 
missions (may I part-session). June saw the adoption of the reports on the main aspects 
and basic choices of the common foreign and security policy in 2006 and on the imple-
mentation of the European security and defence policy respectively. In the preceding 
debate, there was general agreement that the European Union needed a holistic and 
integrated approach to foreign relations to help it play an influential role on the inter-
national stage. In July Parliament approved the report on the enlargement strategy 
for 2007, which called for an intermediate solution to be found which lay between the 
European neighbourhood policy and full integration into the European Union.

Staffing

At 31 december the establishment plan of Parliament’s Secretariat comprised 5 004 
permanent posts and 127 temporary posts.

Cooperation between the European Parliament and the Commission

Parliament endorsed the bilateral agreement concluded with the Commission in the 
field of comitology at its may I part-session (see below).

On the budgetary front, during the vote on the discharge at the April part-session 
Parliament called for monthly follow-up meetings with the Commission in order to im-

EUROPEAN PARLIAmENT 

227

prove the monitoring of the action plan on better supervision of the Structural Funds 
and the provision of information on beneficiaries of external aid.

On 22 October Parliament, the Council and the Commission signed a joint declaration 
‘Communicating Europe in partnership’. It was decided that the European Parliament 
elections should be one of the communication priorities in 2009.

The Commission also responded quickly to Parliament’s request that it table a proposal 
on the Conditions of Employment of Other Servants of the European Communities (in re-
spect of parliamentary assistants); Parliament adopted its amendments at the december 
II part-session (consultation).

On the interinstitutional front, Parliament insisted on the organisation of a debate in 
October to discuss the priorities of the political groups in advance of the Commission’s 
legislative and work programme for 2009. Although the Commission accepted the idea 
of an intra-parliamentary preparatory debate, no debate took place because the groups 
were unable to agree on a joint resolution. Even the adoption of Parliament’s ex post 
resolution, due in december, had to be postponed.

228 

LIFE OF ThE INSTITUTIONS, OThER BOdIES ANd AGENCIES 

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COUNCIL ANd EUROPEAN COUNCIL 

229

European Ombudsman

In 2008 the European Ombudsman, mr diamandouros, acting on the basis of Article 195 
of the EC Treaty, opened some 200 new inquiries, mainly relating to staff matters, access 
to documents, grants and subsidies, and infringements.

In June the regulations governing the performance of the Ombudsman’s duties were 
amended, giving the Ombudsman full access to EU documents during his inquiries, 
clarifying the rules on officials giving evidence not as private individuals or ‘in accordance 
with instructions’, but as the official responsible for a specific matter, and recognising 
the need for the Ombudsman to cooperate with national institutions for the promotion 
and protection of fundamental rights.

The Ombudsman worked hard over the course of the year to encourage greater transpar-
ency on the part of the European institutions, issuing press releases on mEPs’ allowances 
(15 July) and citizens’ right of access to documents (2 June).

he also expressed concern, in press releases, about late payment by the Commission 
(7 July), and criticised it for language discrimination in an EU project (27 may).

On 9 July the Ombudsman signed a memorandum of understanding with the European 
Investment Bank with the purpose of improving stakeholders’ protection from any pos-
sible maladministration as regards the EIB’s activities.

The European Ombudsman’s annual report for 2007 was published on 10 march.

Council and European Council

Council

The Council was chaired by Slovenia for the first half of 2008 and by France in the second 
half. It held a total of 117 formal meetings in its various configurations.

Slovenian Presidency

In the first half of the year over 8 000 events were held, including 33 informal meetings of 
the Council of the European Union, 16 informal meetings and conferences at ministerial 
level, and 66 meetings between the European Union and non-member countries.

In anticipation of the entry into force of the Lisbon Treaty, the Slovenian Presidency took 
charge of the preparatory work required for its implementation.

230 

LIFE OF ThE INSTITUTIONS, OThER BOdIES ANd AGENCIES 

In other fields, the introduction of the ‘fifth freedom’ (the free movement of knowledge) 
and the ‘Ljubljana process’ gave a new impetus to knowledge and innovation, while the 
agreement on the introduction of the European satellite navigation system (Galileo) 
boosted technological development in the European Union.

In the field of energy, broad agreement was reached on the fundamentals of the third 
legislative package on the liberalisation of the internal market in gas and electricity (1). 
The Slovenian government also saw the final adoption of five key acts on environmental 
protection: the waste directive (2), the mercury regulation (3), the directive on environ-
mental quality standards for water (4), the directive bringing aviation within the remit 
of the European emissions trading scheme (5) and the directive on the protection of the 
environment through criminal law (6).

On the internal market front, a number of proposals were adopted, including the leg-
islative package on the free movement of goods (7), the decision on mobile satellite 
services (8), the postal services directive (9), the new customs code (10), the directive on 
credit agreements for consumers (11) (final adoption), and the regulation on the placing 
of plant protection products on the market (agreement in the Council). On employment, 
the Council reached a political agreement on the working-time directives (12) and the 
directive on working conditions for temporary workers (13).

On foreign and neighbourhood policy, stabilisation and association agreements were 
signed with Bosnia and herzegovina, and Serbia. The ‘Black Sea synergy’ initiative was 
also launched. when kosovo declared its independence, the European Union was 
able to present a united front on the main issues and destabilisation of the region was 
avoided.

(1) 

(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 
(10) 
(11) 
(12) 
(13) 

 COm(2007) 528, COm(2007) 529, COm(2007) 530, COm(2007) 531 and COm(2007) 532 (OJ C 4, 
9.1.2008).
 directive 2008/98/EC (OJ L 312, 22.11.2008).
 Regulation (EC) No 1102/2008 (OJ L 304, 14.11.2008).
 directive 2008/105/EC (OJ L 384, 24.12.2008).
 directive 2008/101/EC (OJ L 8, 13.1.2009).
 directive 2008/99/EC (OJ L 328, 6.12.2008).
 OJ L 218, 13.8.2008.
 decision No 626/2008/EC (OJ L 172, 2.7.2008).
 directive 2008/6/EC (OJ L 52, 27.2.2008).
 Regulation (EC) No 450/2008 (OJ L 145, 4.6.2008).
 directive 2008/48/EC (OJ L 133, 22.5.2008).
 COm(2004) 607 (OJ C 322, 29.12.2004).
 COm(2002) 149 (OJ C 203 E, 27.8.2002).

COUNCIL ANd EUROPEAN COUNCIL 

231

French Presidency

The main area of work for the French Presidency of the Council of the European Union 
was the legislative package on energy and climate change (1). Thanks to the commitment 
of the Presidency and the Council, assisted by the Commission and with the coopera-
tion of Parliament, it was possible to reach agreement on this package at first reading. 
Progress was also made on work on two other proposals (2) linked to the package (the 
directive on the quality of fuels and the directive aiming to reduce CO2 emissions from 
light-duty vehicles) and agreements were reached at first reading.

In the field of energy, the work on the third liberalisation package produced a political 
agreement.

Another politically sensitive area in which the French Presidency was able to broker 
an agreement was the telecom package (3) (review of the regulatory framework for EU 
electronic communications networks and services), which has now to be negotiated 
with Parliament. Also noteworthy was the difficult conciliation process with Parliament 
on the package on maritime safety.

Lastly, the common agricultural policy health check (4), designed to permit a better 
response to the new challenges and opportunities facing European agriculture, such as 
climate change, the need for better water management, protection of biodiversity and 
‘green’ energy production, was successfully concluded.

during the French Presidency the European Union responded to the challenges and 
played a decisive role in handling the crisis in Georgia and the financial crisis, presenting 
a united and determined front. Its decisive action in Georgia on 12 August facilitated 
a cessation of hostilities and contributed to finding a balanced peace, which has still 
to be consolidated. In the face of the economic crisis, it quickly succeeded in defining 
a strategy for the 27 member States using all the potential of the common European 
policies.

Staffing

At 31 december the establishment plan of the General Secretariat of the Council com-
prised 3 461 permanent posts and 36 temporary posts.

(1) 
(2) 
(3) 
(4) 

 COm(2008) 16, COm(2008) 17, COm(2008) 18 and COm(2008) 19.
 COm(2007) 18 and COm(2007) 856.
 COm(2008) 720, COm(2008) 723 and COm(2008) 724.
 COm(2008) 306 (OJ C 10, 15.1.2009).

232 

LIFE OF ThE INSTITUTIONS, OThER BOdIES ANd AGENCIES 

European Council

13 and 14 March

The European leaders launched the new three-year cycle of the Lisbon strategy (2008-
10), confirming the validity of the integrated guidelines for growth and jobs. The 
European Council also called for work to continue on the 10 objectives identified in 
the new Community Lisbon programme and approved the roadmap and key principles 
for implementation of the climate and energy legislative package. Particular attention 
was devoted to the recent turmoil on the financial markets, how to respond and how 
to prevent it happening again, and to the future of sovereign wealth funds. Finally, 
the European Council approved the principle of a Union for the Mediterranean and 
called on the Commission to present proposals designed to give new impetus to the 
Barcelona process and to enhance EU relations with its mediterranean neighbours.

19 and 20 June

This meeting of the European Council focused on the consequences of the Irish ‘no’ 
vote on ratification of the Lisbon Treaty. The European Council underlined the im-
portance of continuing, in parallel with the ratification process, to deliver concrete 
results in the areas of greatest concern to the people of Europe. The pressures created 
by the sharp rise in food and oil prices, as well as by economic and social questions 
and issues relating to health and the environment, were also high on the agenda. The 
European Council also devoted considerable attention to the Commission proposals 
on immigration and asylum. On the external relations front, the salient points were 
achievement of the millennium development goals, the Union for the mediterranean, 
and the proposals for developing the eastern dimension of the European neighbour-
hood policy. A declaration on the European perspective on the western Balkans was 
also adopted.

Extraordinary European Council on the situation in Georgia (1 September)

The European Council strongly condemned Russia’s unilateral decision to recognise 
the independence of Abkhazia and South Ossetia, and called on other states not to 
recognise this proclaimed independence. It welcomed the ceasefire resulting from 
the six-point agreement reached on 12 August, and the gradual withdrawal of Russian 
military forces. It undertook to resume emergency aid, to maintain a presence on the 
ground to support the efforts to secure a peaceful and lasting solution to the conflict, 
and to step up its relations with Georgia. Finally, it noted that, with the crisis in Georgia, 
relations between the European Union and Russia had reached a crossroads, and called 
on Russia to make the fundamental choice in favour of mutual interest, understanding 
and cooperation.

COmmISSION 

15 and 16 October

233

Against a backdrop of international economic and financial crisis, the European Council 
expressed its resolve to act in a concerted and comprehensive manner to protect the 
European financial system and depositors. It also reaffirmed the objective of an overall 
agreement on the energy/climate change issue before the end of the year, agreed to 
speed up work on energy security, and adopted the European pact on immigration and 
asylum. In the external sphere, it took stock of Russia’s implementation of the agree-
ment of 8 September on the withdrawal of its troops, the general situation in Georgia 
and EU relations with its eastern neighbours. It also took note of the analysis of the Irish 
referendum on the Lisbon Treaty and decided to return to the issue in december. In 
addition, the European Council endorsed the composition of the reflection group on 
the future of the Union.

11 and 12 December

The European Council approved a European economic recovery plan equivalent to 
around 1.5 % of the GdP of the European Union (around EUR 200 billion). The plan pro-
vides a common framework for the efforts made by member States and by the European 
Union, with a view to ensuring consistency and maximising effectiveness. The European 
Council also reached agreement on the energy/climate change package. This decisive 
breakthrough will enable the European Union to honour the ambitious commitments 
entered into in this area in 2007 to maintain its leading role in the search for an ambitious 
and comprehensive global agreement at Copenhagen in 2009. moreover, the European 
Council demonstrated its intent, through concrete decisions, to give new impetus to the 
European security and defence policy in order to meet the new security challenges. It 
also discussed the factors designed to respond to the concerns expressed during the 
Irish referendum and established an approach to enable the Treaty of Lisbon to come 
into force before the end of 2009.

Commission

Synthesis of management achievements in 2007

On 4 June the Commission published a synthesis of its management achievements in 
2007 (1). By adopting this synthesis, the Commission assumed its political responsibility 
for management by its directors-General and heads of Service, on the basis of their an-
nual activity reports and declarations of assurance.

(1) 

 COm(2008) 338 (OJ C 10, 15.1.2009).

234 

LIFE OF ThE INSTITUTIONS, OThER BOdIES ANd AGENCIES 

Strategic planning and programming for 2009

On 13 February, as the first stage of its annual programming cycle, the Commission 
adopted its annual policy strategy for 2009 (1), of particular importance this year because 
of the institutional changeover ahead.

On 5 November the Commission presented its 2009 legislative and work programme (2). 
In a Europe confronted by economic and financial crisis, the top priorities for 2009 will 
be sustainable economic and social reform in Europe under the renewed Lisbon strat-
egy for growth and jobs, an integrated approach to migration, and the introduction of 
measures in the field of energy and climate change. Priority will also be given to putting 
the citizen first. The Commission plans to step up its communication policy and continue 
to work towards simplification and the reduction of the administrative burden as part 
of its better regulation objective.

As regards Europe as a world partner, the Commission will devote particular attention to 
pursuing the enlargement process, developing the European perspective for the coun-
tries of the western Balkans, and developing the eastern partnership and the Union for 
the mediterranean within the framework of the European neighbourhood policy. It will 
endeavour to build up its partnership with the United States and will continue to work 
towards a trade agreement with the world Trade Organisation and furtherance of the 
millennium development goals.

Legislative activity

The Commission met 43 times during the year. It sent 420 proposals for directives, regu-
lations and decisions and 10 recommendations. It also presented 318 communications 
and reports, nine Green Papers and one white Paper. In addition to the new initiatives, 
programmes and action plans adopted, the debates launched and the ongoing activities 
pursued under its work programme for 2008, these figures include proposals for routine 
management instruments and proposals for consolidating existing legislation.

Relations with national parliaments

On 6 may the Commission adopted its third annual report on relations with national 
parliaments (3). The report reviews progress in 2007 on the achievement of the objec-
tives set, including visits to national parliaments by members of the Commission and 
greater accessibility to national parliaments in the performance of their institutional 
responsibilities.

(1) 
(2) 
(3) 

 COm(2008) 72 (OJ C 207, 14.8.2008).
 COm(2008) 712.
 COm(2008) 237.

COmmISSION 

235

In 2008 the Commission continued to pursue the objectives set out in February 2005, 
with attendance at meetings of the permanent representatives of the national parlia-
ments, high-level participation in the Conference of European Affairs Committees of 
the Parliaments of the European Union (1) (COSAC) and in meetings between national 
parliaments and the European Parliament organised by COSAC, and the drafting of a 
newsletter.

Since September 2006 the Commission departments have been sending all new pro-
posals and consultation papers to all the national parliaments and responding to their 
opinions in accordance with a procedure that has been developed (2).

In 2008 the Commission received approximately 200 opinions as part of this process 
(‘the Barroso initiative’). There have been some 114 empowerment procedures and 10 
simplified procedures launched. Seventy-six opinions were fully positive.

In relation to two new subsidiarity tests carried out in the COSAC framework, 27 opinions 
were issued: 12 of these were concerned with the proposal for the amendment of the 
framework decision on combating terrorism (3). Only the Uk house of Commons submit-
ted a negative opinion in respect of compliance with the principle of subsidiarity; five 
other chambers asked the Commission to clarify a number of issues relating to justifica-
tion of the decision in terms of subsidiarity; five assemblies raised the problem of the link 
with the Council of Europe Convention on the Prevention of Terrorism. Fifteen opinions 
were concerned with the proposal on implementing the principle of equal treatment; 
14 opinions were positive with regard to compliance with the principle of subsidiarity; 
only the Czech Senate’s opinion was negative.

Another 173 opinions concerned different Commission documents. The following 
Commission documents were commented on by at least three assemblies: the propos-
als on cross-border healthcare, the common agricultural policy health check, the review 
of the CO2 emissions trading scheme and the promotion of renewable energy sources, 
the 2009 annual policy strategy, and the communication on preparing for the health 
check of the CAP reform.

Certain second chambers were very active: the Czech Senate, the German Bundesrat, the 
French Senate and the Uk house of Lords were authors of 54 out of the 200 opinions. 
Other proactive assemblies included the Swedish Riksdagen, the danish Folketing and 
the Portuguese Assembleia da República.

(1) 

(2) 
(3) 

 Vice-President Frattini in Ljubljana in February, mr Potočnik in Brdo in may, ms Ferrero-waldner in Paris 
in July and Vice-President Barrot in Paris in November.
 COm(2006) 211(OJ C 176, 28.7.2006) and SEC(2006) 1252.
 Framework decision 2002/475/JhA (OJ L 164, 22.6.2002).

236 

LIFE OF ThE INSTITUTIONS, OThER BOdIES ANd AGENCIES 

more assemblies engaged regularly in significant dialogue with the Commission than 
in 2007. Furthermore, the national parliaments concentrated more on strategic dossiers 
which were often on the Council agenda (as illustrated above).

Staff policy and human resources management

In 2008 the Commission had 19 796 permanent administrative posts and 366 temporary 
administrative posts, and 3 828 permanent research posts (1 957 for direct actions and 
1 871 for indirect actions). There were also 1 913 permanent posts and 177 temporary 
posts for offices attached to the Commission. In the agencies, there were 4 163 posts 
for officials and temporary staff in the regulatory agencies and joint undertakings, and 
326 posts for temporary staff in the executive agencies.

At 1 december, 22 Commission officials were seconded outside the Commission under 
the staff exchange scheme, and 1 149 national experts were working at the Commission. 
In 2008, 340 national civil servants had the opportunity to see the working of the 
Commission from the inside under its professional training programme.

Court of Justice and other courts

Appointments to the Court of Justice

mr Jean-Jacques kasel was appointed to the Court of Justice in 2008 as judge.

Appointments to the Court of First Instance

mr kevin O’higgins was appointed to the Court of First Instance in 2008 as judge.

Staffing of the courts

At 31 december the Court of Justice, the Court of First Instance and the Civil Service 
Tribunal had 1 455 permanent posts and 438 temporary posts.

Case-law of the Court of Justice and the Court of First Instance (1)

The Court of Justice delivered three important judgments on institutional matters.

(1) 

 Fuller summaries of the case-law are available on the Europa website of the Commission’s Legal 
Service.

COURT OF JUSTICE ANd OThER COURTS 

237

 •

 •

 •

Commission v Council (1) the Court clarified the dividing line between the EC Treaty 
In 
and the ‘second pillar’ of the EU Treaty — i.e. the common foreign and security pol-
icy — when it comes to choosing the correct legal basis for a given instrument. 
It found that measures taken to combat the proliferation of small arms and light 
weapons, being aimed also at preventing fragility in developing countries, could 
contribute to the elimination or reduction of obstacles to those countries’ economic 
and social development. It accordingly annulled the Council decision inasmuch as 
it was based on a CFSP provision and the measures in question also fell within a 
competence conferred by the EC Treaty.
Kadi v Council and Commission (2) the Court held that the full review by the 
In 
Community courts of the validity of all measures subject to their jurisdiction in the 
light of fundamental rights was the expression of a constitutional guarantee stem-
ming from the EC Treaty. Setting aside the judgments of the Court of First Instance, 
the Court ruled itself on the merits of the case and took a stand in particular on the 
issue of respect for the rights of the defence. while the Community authorities were 
not required to communicate the grounds or to hear the persons concerned prior 
to the inclusion of their names in the list of persons and entities whose funds were 
to be frozen, they ought nevertheless to have done so within a reasonable period of 
such a measure being taken.
Sweden and Turco v Council (3) the Court examined the conditions governing dis-
In 
closure to the public of legal opinions given in the context of a legislative process. It 
took the view that it was precisely transparency — by enabling differences between 
several points of view to be openly debated — that contributed to increased citizen 
involvement in the decision-making process and to greater legitimacy, efficiency 
and responsibility of the institutions in the eyes of citizens in a democratic system. 
The disclosure of such an opinion could be refused only if, for example, there was a 
real risk of the interest of the institution concerned in seeking frank, objective and 
comprehensive advice being undermined.

The Court delivered three particularly noteworthy judgments on questions of citizenship 
and the free movement of persons.

 •

Feryn (4) the Court clarified the scope of the protection afforded by Community 
In 
law against discrimination based on race or ethnic origin and ruled that public state-
ments by which an employer let it be known that it would not recruit any employees 
of a certain ethnic or racial origin constituted per se direct discrimination in respect 
of recruitment inasmuch as such statements were likely to strongly dissuade some 
applicants from applying for the post and hence to impede their access to the labour 
market.

(1) 
(2) 
(3) 
(4) 

 Case C-91/05.
 Joined Cases C-402/05 P and C-415/05 P. 
 Joined Cases C-39/05 P and C-52/05 P.
 Case C-54/07.

238 

 •

 •

LIFE OF ThE INSTITUTIONS, OThER BOdIES ANd AGENCIES 

Coleman (1) the Court clarified the scope of the prohibition of direct discrimina-
In 
tion on grounds of disability laid down in directive 2000/78/EC, which established, 
in regard to employment and occupation, the legal framework for combating dis-
crimination based on religion or belief, disability, age or sexual orientation. It held 
that the prohibition laid down in the directive applied not only to conduct directed 
at an employee who was himself disabled, but also to that directed at an employee 
who was treated less favourably by reason of the disability of his child, for whom he 
was the primary provider of the care required by virtue of the child’s condition.
Mayr (2) the Court extended its case-law on equal treatment for men and women 
In 
and clarified the scope of the prohibition of dismissal of pregnant workers laid down 
in directive 92/85/EEC. Taking into account the earliest possible date for the existence 
of pregnancy, the protection could not apply in the case of in vitro fertilisation where 
the fertilised ova had not yet been transferred into the woman’s uterus.

In the area of competition and state aid, in Bertelsmann and Sony Corporation of America 
v Impala (3) the Court clarified the requirements as regards an adequate statement of 
reasons and proof for a corporate merger decision and annulled a judgment of the Court 
of First Instance.

On justice, freedom and security, in three cases where judgments were rendered par-
ticularly speedily — Rinau (4), Santesteban Goicoechea (5) and Kozłowski (6), in the first two 
using the new urgent preliminary ruling procedure — the Court laid down important 
pointers as to how to interpret the decision on the European arrest warrant (Kozłowski 
and Santesteban Goicoechea) and the ‘Brussels II bis’ regulation from the point of view 
of the conditions governing the enforcement of a judicial decision ordering the return 
of a child wrongfully retained in another member State (Rinau).

In the area of the environment, in Commune de Mesquer (7), a case brought following the 
sinking of the oil tanker Erika, the Court clarified once more the scope of the concept 
of waste in Community law and held that, in the circumstances of a shipwreck, hydro-
carbons mixed with water and sediment and drifting along the coastline of a member 
State had to be classified as waste within the meaning of directive 75/442/EEC. It also 
analysed the conditions governing liability for the cost of disposing of the waste.

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 

 Case C-303/06.
 Case C-506/06.
 Case C-413/06 P.
 Case C-195/08 PPU.
 Case C-296/08 PPU.
 Case C-66/08.
 Case C-188/07.

COURT OF AUdITORS 

Court of Auditors

Annual activity report

239

The first annual activity report of the European Court of Auditors, covering the year 
2007, was presented on 18 July. The initiative is aimed at bringing the Court of Auditors 
closer to EU citizens and promoting transparency and accountability. It forms part of an 
ambitious communication policy being pursued by the Court.

Annual report on implementation of the EU budget

The Court’s annual report on implementation of the EU budget for the 2007 financial 
year (1) was published on 10 November. For the first time since the accrual accounting 
rules were introduced, the Court gave an unqualified opinion on the consolidated ac-
counts. The opinion on the underlying transactions was, on the whole, similar to that for 
the previous financial year: although most of the payments audited by the Court were 
made in accordance with the rules, the Court still considered that the level of error af-
fecting payments to final beneficiaries, such as farmers and the promoters of projects 
financed by the European Union, was too high. The Court stressed the need to improve 
supervisory and control systems and recommended that the rules be simplified.

Special reports

The special reports produced by the Court of Auditors in 2008 concerned the 
following:

 •

 •
 •
 •

 •

procedures for the preliminary examination and evaluation of major investment 
projects for the 1994–99 and 2000–06 programming periods together with the 
Commission’s replies (2);
binding tariff information (
the European Union Solidarity Fund: how rapid, efficient and flexible is it? (
the implementation of milk quotas in the member States which joined the European 
Union on 1 may 2004 (5);
the European Union’s agencies (

6);

3);

4);

(1) 
(2) 
(3) 
(4) 
(5) 
(6) 

 OJ C 286, 10.11.2008.
 OJ C 81, 1.4.2008.
 OJ C 103, 24.4.2008.
 OJ C 153, 18.6.2008.
 OJ C 185, 22.7.2008.
 OJ C 238, 17.9.2008.

240 

LIFE OF ThE INSTITUTIONS, OThER BOdIES ANd AGENCIES 

 •

 •
 •
 •

 •
 •

rehabilitation aid granted by the European Commission after the tsunami and hur-
ricane mitch;
Intelligent energy 2003–06’;
‘
the effectiveness of the conditionality policy;
the effectiveness of European Union support for Belarus, moldova and Ukraine in 
the fields of liberty, security and justice;
management of EU support for public storage operations for cereals;
European Community development assistance to health services in sub-Saharan Africa.

Specific annual reports

The specific annual reports produced by the Court of Auditors in 2008 concerned the 
annual accounts of the various European Union bodies and agencies for 2007.

Opinions

In 2008 the Court of Auditors issued opinions on various legislative proposals, 
including:

 •

 •

 •

 •

 •

the proposal to amend the financial regulation of the European Aviation Safety 
Agency;
the proposal to amend the Euratom regulation on the system of the Communities’ 
own resources (1);
the proposal to amend the regulation determining the categories of officials and 
other servants of the European Communities to whom the provisions on the privi-
leges and immunities of the Communities apply (2);
the financial regulation of the European Joint Undertaking for ITER and the 
development of Fusion Energy;
the proposal to amend the Council regulation on the conditions of employment of 
other servants of the European Communities.

European Economic and Social Committee

At its nine plenary sessions during the year, the Committee delivered 189 opinions as a 
result of mandatory or optional consultations and 45 own-initiative opinions.

In 2008 the Committee celebrated its 50th anniversary in the presence of numerous 
leading European figures. All the speakers stressed the essential role the Committee has 

(1) 
(2) 

 OJ C 192, 29.7.2008.
 OJ C 199, 5.8.2008.

EUROPEAN ECONOmIC ANd SOCIAL COmmITTEE 

241

played in representing the social partners, from its inception to the present time, when it 
has become a bridge between civil society and the institutions. during the year, several 
members of the Commission took part in the Committee’s proceedings.

The Committee’s leadership was renewed in October. mr mario Sepi was elected 
President, succeeding mr dimitris dimitriadis. Two Vice-Presidents were also elected: 
ms Irini Pari (responsible for communication) and mr Seppo kallio (responsible inter 
alia for budgetary matters).

The Committee’s priorities in 2008 centred on the strengthening of participatory de-
mocracy, the renewal of Europe’s productive structures through the Lisbon strategy, 
and the practical application of the rights inherent in the European social model. The 
Committee’s President-elect introduced a new procedure aimed at grouping opinions 
on the same subject in the interests of non-repetitive debate.

The question of the Committee’s future was raised at the plenary session on 17 and 
18 September. Some members called for the Committee to have a more political profile, 
as the only way for it to make a stronger impact. moreover, its opinions were considered 
often too long, their wording not always clear and their distribution too slow. It was also 
suggested that the section presidents group should be revived to enable a more judi-
cious selection of which opinions to deliver. Relations with the other institutions were 
also touched upon: it was felt that there was not enough feedback from them and it 
was not clear whether the Committee’s advisory function was being taken into account. 
In a similar vein, some members considered that the real work began after an opinion 
was adopted and that a careful check should be kept on how the Committee’s work was 
disseminated to the outside world.

At its plenary session on 9 and 10 July the Committee extended its scope for action by 
creating a Lisbon strategy observatory, operational until October 2010, which will work 
closely with the Committee’s ECO section.

The Committee adopted several opinions in the area of employment and social affairs, 
concerning inter alia sanctions against employers of illegally staying third-country nation-
als (1) and the pay gap between women and men (2). Flexicurity was also on the agenda. 
In this context, the Committee adopted an opinion on the new social action programme 
aimed at enhancing the social dialogue and an opinion on the programme on services to 
business. In response to a request by the Slovenian Presidency, the Committee delivered 
an opinion on improving the situation of young people on the labour market (1).

The Committee also took a position on energy and environmental issues. Its opinion on 
the use of energy generated from renewable sources stressed that the share accounted 

(1) 
(2) 

 OJ C 204, 9.8.2008.
 OJ C 211, 19.8.2008.

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LIFE OF ThE INSTITUTIONS, OThER BOdIES ANd AGENCIES 

for by renewables in the medium and long term would have to be much higher than 
the target of 20 % by 2020. In its opinion on sustainable energy production from fossil 
fuels, the Committee expressed concern at the lack of medium- and long-term financ-
ing capacity. It also voiced its disagreement with the idea of organising emission quota 
auction sales at national level with an obligatory 20 % of income going to measures 
aimed at reducing CO2 emissions. In its opinion on energy efficiency, the Committee 
deplored the member States’ tardy preparation of national action plans on the subject 
and pointed to the need for civil society involvement.

Committee of the Regions

At its five plenary sessions in 2008, the Committee presented 54 opinions, of which 
three were outlook opinions. It adopted three resolutions and seven own-initiative 
opinions. 

The Committee’s priorities centred on reform of the European Union budget, the energy 
and climate change package, the Lisbon strategy objectives, promotion of cohesion 
policy and the European territorial cooperation grouping, cultural diversity, neighbour-
hood policy, multi-level governance and subsidiarity.

At its 73rd plenary session on 6 and 7 February the Committee renewed its leader-
ship. In accordance with the rotation principle, mr Luc Van den Brande was elected 
President, while mr michel delebarre became first Vice-President. The Committee also 
elected its 24 Vice-Presidents and other Bureau members, together with the political 
group chairmen.

On the budgetary front, at its 74th plenary session on 9 and 10 April the Committee  voted 
a 9.2 % increase in the budget estimates (under the preliminary draft budget for 2009) 
owing primarily to the increased workload caused by subsidiarity. On the same occasion, 
it expressed the wish to be included in the debate on European budget reform.

during the year the Committee played an active part in promoting the role of territorial 
entities. In its opinion on the European territorial cooperation grouping (1) it issued a 
strong message of support for the governance process which the new instrument will 
help promote in the interests of territorial cohesion. The opinion on the urban transport 
Green Paper (2) pointed up the need for a more integrated approach targeted at the envi-
ronment, spatial planning and mobility. In its opinion on the problems of water scarcity 
and drought in the European Union (2), the Committee reminded regional and local 
authorities of the urgent need to implement the targets set by the water framework di-

(1) 
(2) 

 OJ C 257, 9.10.2008.
 OJ C 172, 5.7.2008.

EUROPEAN CENTRAL BANk 

243

rective. In addition, it sought to add value to the European ports policy (1) by addressing 
the challenge of balancing economic factors and environmental concerns.

The Committee adopted an opinion on the active promotion of persons furthest re-
moved from the labour market (2) and an opinion on the European Year for Combating 
Poverty and Social Exclusion (2) which highlights the role of local and regional authorities 
in integrating excluded persons. It also adopted an outlook opinion on multilingual-
ism (2) reflecting the situation on the ground in bilingual regions and recognition for 
minority languages.

Over the course of the year the President and members of the European Commission 
played an active part in the Committee’s work and a number of structured dialogue 
meetings were held.

European Central Bank

The European Central Bank continued to pursue a monetary policy aimed at maintaining 
price stability in the euro area. By ensuring such stability, monetary policy contributes 
to the promotion of growth and employment in the euro area. On 3 July, in order to 
prevent any major secondary effects and reduce the risks to medium-term price stabil-
ity, the ECB’s Governing Council raised key interest rates by 25 basis points to 4.25 %. 
Following the resulting improvement in price stability prospects it lowered key interest 
rates by 175 basis points between 8 October and 31 december.

The lowering of key interest rates on 8 October was coordinated with five other central 
banks. On the same day, the Governing Council also announced changes to its monetary 
policy instruments consisting in a narrowing of the corridor formed by the two standing 
facilities from 200 to 100 basis points and the adoption of a fixed-rate tender procedure 
with full allotment at the interest rate on the main refinancing operation.

Several features of the ECB’s monetary policy implementation framework were changed 
during the year to help the banking sector withstand the turmoil in the financial markets. 
First, in order to consolidate the progress made in the normalisation of the euro money 
markets, the Governing Council announced the renewal of three-month longer-term re-
financing operations (LTROs) in February, march and July, and carried out supplementary 
six-month longer-term refinancing operations in April and July together with a special 
refinancing operation announced in September. On 4 September the Governing Council 
decided to renew all the LTROs and on 7 October the pre-announced allotment amount 
in the supplementary six-month longer-term refinancing operation was increased from 
EUR 25 billion to EUR 50 billion. On 15 October the Governing Council indicated that 

(1) 
(2) 

 OJ C 172, 5.7.2008.
 OJ C 257, 9.10.2008.

244 

LIFE OF ThE INSTITUTIONS, OThER BOdIES ANd AGENCIES 

all these operations would be rolled over until and including march 2009 and that it 
would be carrying out four supplementary six-month longer-term refinancing opera-
tions. In October, to enhance the provision of liquidity, the Eurosystem expanded the 
list of institutions eligible for quick tenders (the procedure normally used for fine-tuning 
operations) and the list of assets eligible as collateral in Eurosystem credit operations.

Second, the Governing Council announced a total of eight dollar liquidity-providing 
operations as part of the temporary tender arrangement concluded with the Federal 
Reserve system. These operations, which initially were conducted at terms of 28 days 
and for an amount of USd 10 billion each, saw their terms lengthened and the amounts 
involved gradually increased to a total not exceeding USd 110 billion. On 29 September 
the ECB further increased the dollar liquidity provision by doubling the size of its tem-
porary reciprocal currency arrangement (swap lines) with the Federal Reserve to USd 
240 billion until 30 April 2009. On 13 October it announced that it would conduct all 
these operations at fixed rates for full allotment, the Federal Reserve having for its part 
announced that it would be increasing the size of the swap lines so as to cover all dol-
lar financing requirements. Lastly, it set up liquidity-access-easing arrangements with 
other central banks.

In conducting its basic tasks with regard to monetary policy and preservation of the 
stability of the financial system, the ECB continued to ensure transparency by explain-
ing the economic and monetary assessment underlying its policy decisions in regular 
press conferences given by its President, in its monthly bulletin and in other publica-
tions and speeches by members of its Governing Council. Also, in line with the ECB’s 
statutory reporting obligations, its President appeared four times before Parliament’s 
Committee on Economic and monetary Affairs, as well as at a plenary session of the 
European Parliament. he also appeared before a joint meeting of the European and 
national parliaments to discuss the EU framework for safeguarding financial stability. 
In addition, four other members of the Executive Board appeared before the European 
Parliament on five occasions.

Following a request by the Slovak authorities, the ECB examined whether Slovakia ful-
filled the conditions for the adoption of the euro in a convergence report published 
on 7 may. On 28 may, at the request of the Slovak authorities, the central rate of the 
Slovak koruna in the exchange rate mechanism II was revalued by 17.6472 %. Taking 
into account the ECB and European Commission convergence reports, and on a pro-
posal from the Commission, the Council decided to abrogate Slovakia’s derogation 
on 8 July, allowing it to adopt the euro on 1 January 2009. The ECB, together with 
Národná banka Slovenska, undertook the necessary preparations for Slovakia’s entry 
into the Eurosystem, including a joint communication campaign on euro banknotes 
and coins. The ECB also monitored the smooth and successful completion of the euro 
cash changeover process in Cyprus and malta.

EUROPEAN CENTRAL BANk 

245

In the field of payment and securities settlement systems, on 19 may the Eurosystem suc-
cessfully completed the migration to Target2 of all participating national central banks 
and the respective Target user communities. drawing on both the positive feedback 
from the European central securities depositories in response to the invitation to join the 
Target2-Securities (T2S) initiative and the views expressed by the Council (Economic and 
Financial Affairs), on 17 July the Governing Council formally launched the T2S project, 
which will allow the harmonised settlement in central bank money of securities trans-
actions in Europe, and announced the launch of the collateral central bank management 
(CCBm2) project, a common platform for Eurosystem collateral management. Target2, T2S 
and CCBm2 complement one another and together form a ‘liquidity management trian-
gle’. To further optimise their synergies, the Eurosystem started to explore opportunities to 
develop a Eurosystem single interface through which all three services could be accessed. 
The ECB also cooperated closely with the European Commission in the process leading up 
to the establishment of the single euro payments area (SEPA), with the successful launch 
of the SEPA credit transfer scheme and the SEPA card payments framework in January 
2008. In September the ECB and the European Commission encouraged the European 
Payments Council to move ahead with the launch of the SEPA direct debit scheme.

The ECB continued its work on prudential supervision and financial stability, by monitor-
ing and analysing the main developments in banking and finance, as well as progress 
made on financial integration in the euro area, in the second issue of its annual publica-
tion, Financial integration in Europe. This contains a set of financial integration indicators 
published biannually on the ECB website. Secondly, it developed further the framework 
for cooperation between central banks and other supervisory authorities. In the field 
of crisis management and resolution, the ECB actively contributed to the reflections at 
EU level on enhancing the existing financial crisis arrangements with a cross-border di-
mension, inter alia by being itself a party to the memorandum of understanding on 
cooperation between the financial supervisory authorities, the central banks and finance 
ministries of the European Union on cross-border financial stability, which entered into 
force on 1 June. It also released the proceedings of a conference it had organised in 2007 
on stress testing and financial crisis simulation exercises. The ECB also contributed to the 
further development of the framework for financial regulation, notably by commenting 
on the occasion of the Commission’s public consultation on the draft Community legisla-
tion on credit rating agencies. The ECB delivered fully on the actions requested from it by 
the Council (Economic and Financial Affairs) in the three roadmaps on responses to the 
financial turmoil, improving the supervisory arrangements in the financial system, and 
the development of the EU arrangements for financial stability and crisis management. 
As regards its contribution to the responses to the financial turmoil, the ECB produced 
two reports, one on EU banks’ liquidity stress testing and contingency funding plans and 
another on the incentive structure of the ‘originate and distribute’ model. The former 
showed that there was substantial room for improvement in both liquidity stress tests 
and contingency funding plans, while the latter presented actions that could mitigate 
the conflict of interests identified in the model that is considered one of the triggering 
factors of the current financial turmoil.

246 

LIFE OF ThE INSTITUTIONS, OThER BOdIES ANd AGENCIES 

In the statistical field, the ECB, assisted by the national central banks, continued to de-
velop, collect, compile and disseminate a broad range of statistics which provide the 
basis for the monetary policy of the euro area, various other tasks of the European sys-
tem of central banks (ESCB) and, to an increasing extent, other EU tasks. Statistics were 
enhanced in several areas in 2008, notably the harmonised competitiveness indicators 
of the euro-area countries, and short-term European paper and sectoral distribution 
of holdings of m3 instruments statistics. In April the ECB published on its website the 
ECB statistics quality framework and the quality assurance procedures within the ECB 
statistical function, which set out the main quality principles and elements guiding the 
production of statistics. The Governing Council also adopted an enhanced legal frame-
work that will improve the availability of statistics on inter alia monetary matters, interest 
rates, loan sales and loans securitisation, and approved the conducting of a Eurosystem 
survey on euro-area household finance and consumption.

Following the successful introduction of euro banknotes in 2002, the ECB continued 
its work on planning the second series, to be issued gradually in a few years’ time, and 
continued to monitor carefully the counterfeiting of the euro. Throughout 2008, this 
remained at the low levels observed since the introduction of the first series of euro 
banknotes.

The ECB was actively involved in the work of a number of European and international 
institutions and forums. The President of the Eurogroup and a member of the European 
Commission participated in meetings of the Governing Council. The President and the 
Vice-President of the ECB also participated in meetings of the Eurogroup, which contin-
ued to serve as an important forum for an open and informal policy dialogue between 
the ECB, the finance ministers of the euro-area countries and the Commission. As part 
of the ceremonies to celebrate the 10th anniversary of the ECB, one Eurogroup meeting 
took place at the ECB premises in Frankfurt. The ECB cooperated closely with the EU insti-
tutions for the national implementation measures taken in the context of the common 
framework for public intervention to support the banking sector approved by the euro-
area heads of State on 12 October. In particular, the ECB contributed to the specification 
of the conditions under which governments could grant guarantees over banks’ debt 
and provide banks with recapitalisation means. It also contributed to the work of the de 
Larosière high-level group on cross-border banking supervision. At international level, for 
example in the contexts of the OECd, ImF, Financial Stability Forum, G7, G10 Governors 
and G20, the ECB played an active part in the reflections on the future of the international 
financial architecture. In addition, it further strengthened its bilateral and multilateral 
policy dialogue with important central banks in mature and emerging market economies 
and the main economies in the EU’s neighbouring regions; it also developed cooperation 
programmes with the central banks of Egypt, Russia and Serbia.

In 2008 the ECB delivered 92 opinions on legislative proposals by the Community and 
the member States in its fields of competence. This is the most in one year to date and 
more than double the yearly average since 1998 (42 opinions per year). This is partly the 

EUROPEAN INVESTmENT BANk 

247

result of the number of consultations related to the setting-up of national stabilisation 
measures to protect the stability of national financial systems.

The year marked the 10th anniversary of the establishment of the ECB. An overview of 
the institution’s first 10 years and the challenges ahead was provided in a special edition 
of the ECB monthly bulletin published in June.

European Investment Bank

The mission of the EIB Group is to help achieve the European Union’s general policy 
objectives by financing viable investments.

The strategic guidelines approved by the Board of Governors in 2005, designed to take 
greater but calculated risks in order to provide more value added in support of Union 
policies, have led the Bank to make important changes both to the financial products it 
offers and to its organisational structure. 

Successive corporate operational plans (COPs) have moulded the objectives to take ac-
count of this new policy. The COP approved for the period 2009–11 sets out increased 
lending targets and other practical measures to mitigate the current financial and eco-
nomic crisis. To meet these increased lending targets, a proposal that the Bank bring 
forward the capital increase previously envisaged for 2010 has been submitted to the 
Board of Governors. The EIB’s subscribed capital will be increased by some EUR 67 bil-
lion to EUR 232 billion.

Six strategic priorities have been drawn up for the member States: economic and social 
cohesion and convergence, implementation of the knowledge-based economy which 
follows on from support for innovation, development of the trans-European networks, 
protection and improvement of the environment and promotion of sustainable com-
munities, support for small and medium-sized enterprises, and promotion of sustainable, 
competitive and secure energy.

The Bank is also active in the European Union’s partner countries in accordance with the 
lending mandates renewed by the Council in december 2006.

In 2008 the Bank granted loans totalling EUR 57.6 billion. In the member States, opera-
tions came to EUR 5.15 billion. The financial assistance granted in the 12 new member 
States amounts to EUR 8.2 billion, or 16 % of total activity in the European Union.

248 

LIFE OF ThE INSTITUTIONS, OThER BOdIES ANd AGENCIES 

In the Union’s partner countries, operations came to EUR 6.1 billion:

 •
 •
 •

 •
 •

1);

EUR 3.5 billion in the pre-accession countries (
EUR 170 million in the Union’s eastern neighbouring countries (
EUR  1.3  million  under  the  facility  for  Euro-mediterranean  investment  and 
partnership;
EUR 561 million in the ACP countries and South Africa;
EUR 469 million in Asia and Latin America.

2);

To finance its lending operations, the Bank raised almost EUR 60 billion on the interna-
tional capital markets by issuing 247 bonds in 22 currencies.

The EIB’s 2008 annual report will be published on its website after the meeting of the 
Board of Governors in June 2009.

Agencies

Regulatory agencies

On 11 march the Commission adopted a communication ‘European agencies — The way 
forward’ (3) concerning the place of the regulatory agencies in the governance of the 
European Union and proposing that an interinstitutional working group be established 
with the objective of arriving at a common approach between the institutions on the 
regulatory agencies.

European Institute of Innovation and Technology (4)

Set up by Regulation (EC) No 294/2008 of the European Parliament and of the Council 
of 11 march 2008 establishing the European Institute of Innovation and Technology, this 
new Community body’s objective is to contribute to sustainable European economic 
growth and competitiveness by reinforcing the innovation capacity of the member 
States and the Community. It is to be based in Budapest.

(1) 

(2) 
(3) 
(4) 

 Candidate countries (Croatia, former Yugoslav Republic of macedonia and Turkey) and potential candidate 
countries (Albania, Bosnia and herzegovina, montenegro, Serbia and kosovo — the latter as defined in 
United Nations Security Council Resolution 1244).
 Eastern Europe (Belarus, moldova, Ukraine), South Caucasus (Armenia, Azerbaijan, Georgia) and Russia.
 COm(2008) 135 (OJ C 202, 8.8.2008). 
 See ‘European Institute of Innovation and Technology’ in Chapter II, Section 2, ‘Education and training’, 
of this Report.

LEGISLATIVE ACTIVITY 

Executive agencies

249

In 2008 the lifetime of the Executive Agency for health and Consumers was prolonged 
until 31 december 2015, and its tasks expanded to include consumer protection and 
training for safer food.

From 2008 the Executive Agency for Competitiveness and Innovation started to man-
age the European Commission’s SmE support network and eco-innovation initiatives 
(which form part of the new framework programme for competitiveness and innovation 
2007–13) and the marco Polo programme.

The mandate of the Trans-European Transport Network Executive Agency was extended 
to cover the TEN-transport programmes for 2007–13.

Finally, the mandate of the Education, Audiovisual and Culture Executive Agency was ex-
tended to cover the mEdIA II and Tempus programmes and the ICI projects (cooperation 
projects in the fields of education and youth with industrialised and other high-income 
countries and territories).

Legislative activity

Co-decision

In 2008 the Commission presented 117 proposals for adoption by the co-decision pro-
cedure. The European Parliament and the Council for their part signed — or reached 
a consensus on them prior to signing — 144 legislative acts, for most of which the 
procedure was in progress before 1 January.

A large number of proposals (116) were approved at first reading, including the 23 
comitology proposals (see below). Although the list of proposals concluded without 
the need for a second reading mainly includes technical proposals and consolidated 
texts, it also includes a number of subjects of wide public interest such as the research 
and development programme aimed at enhancing the quality of life of older people 
through the use of new information and communication technologies, the European 
Year for Combating Poverty and Social Exclusion (2010), road infrastructure safety 
management, the use of the visa information system as part of the Schengen Borders 
Code, the implementation of the European satellite radionavigation programmes 
(Galileo and Egnos), the action programme for the enhancement of quality in higher 
education and the promotion of intercultural understanding through cooperation 
with third countries (Erasmus mundus), the establishment of a facility for rapid re-
sponse to soaring food prices in developing countries (the so-called ‘food facility’) 
and toy safety.

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LIFE OF ThE INSTITUTIONS, OThER BOdIES ANd AGENCIES 

At the end of the year, the institutions also reached agreement at first reading on the 
four elements of the ambitious climate change/energy package and the two related 
dossiers (CO2 emissions from light-duty vehicles and the quality of fuel).

Interinstitutional cooperation was again boosted this year with the conclusion at first 
reading of negotiations on 23 basic instruments which had to be brought into line as a 
matter of urgency with the decision of 17 July 2006 (laying down the procedures for the 
exercise of implementing powers conferred on the Commission) in order to incorporate 
the new regulatory procedure with scrutiny. Four of these 23 instruments were ‘omnibus’ 
proposals, which bring together and amend several dozen instruments at the same time, 
with the aim of managing alignment in a rational and coherent way and facilitating a 
quicker and more effective examination by the legislature.

Around 21 legislative proposals were adopted at second reading. This testifies once 
again to the political will of the two branches of the legislature to reach agreement on 
important and sensitive dossiers without going through the conciliation procedure. A 
number of dossiers were concluded, relating inter alia to consumer credit agreements, 
the internal market for postal services, waste, environmental quality standards in the 
field of water policy, and temporary work.

The conciliation procedure was used in the case of seven proposals: one establishing 
common rules in the field of civil aviation security, agreed on 11 January, and six form-
ing part of the maritime package, agreed in december following more than three years’ 
negotiations. These six proposals will be voted on at third reading in march 2009, in 
parallel with the two other proposals in the package which form part of the compromise 
and are awaiting a vote at second reading (without amendment).

‘Comitology’

On the basis of four ‘omnibus’ proposals tabled by the Commission in late 2007 and 
early 2008, the European Parliament and the Council managed to complete, within a 
reasonable time, the process of general adaptation to the new regulatory procedure 
with scrutiny introduced in July 2006. Two regulations were adopted and published in 
2008 (1); the other two were the subject of an agreement in principle and will be formally 
adopted at the beginning of 2009. Altogether, almost 250 basic acts will have been 
adapted in this way to the new procedure.

The Commission also concluded a new bilateral agreement (2) with Parliament on the 
implementing of comitology procedures (agreement signed on 3 June). This agreement 
replaces the one concluded in 2000. It modernises the existing procedures and takes 
account of the changes made by the new regulatory procedure with scrutiny.

(1) 
(2) 

 Regulations (EC) Nos 1103/2008 (OJ L 304, 14.11.2008) and 1137/2008 (OJ L 311, 21.11.2008).
 OJ C 143, 10.6.2008.

EUROPEAN dATA PROTECTION SUPERVISOR 

251

Since 1 April a new register has been in place for the deposit and transfer of all the docu-
ments forwarded to Parliament under the comitology procedures. This modern tool is 
playing a significant role in improving procedural efficiency and transparency.

The annual report on the working of comitology committees for 2007 (1) was adopted 
by the Commission on 15 december.

Statistical data

The legislative acts adopted, repealed or expiring in 2008 can be found by conducting 
a search in the updated EUR-Lex database.

European Data Protection Supervisor

The European data Protection Supervisor is an independent supervisory authority 
charged with protecting personal data and privacy and promoting good practice in 
the EU institutions and bodies. To this end, on 14 may the European data Protection 
Supervisor published a general report on the EU institutions’ compliance with the regula-
tion on the protection of individuals with regard to the processing of personal data by the 
Community institutions and bodies and on the free movement of such data (2). he also 
issued a number of commentaries and opinions on topics such as the amendment of the 
‘ePrivacy’ directive (10 April) and the final report by the EU–US high-level contact group 
on information sharing and privacy and personal data protection (11 November).

The EdPS annual report for 2007 was published on 15 may.

General references and other useful links

 •

 •

 •

 •

 •

 •

European Parliament: 
http://www.europarl.europa.eu/news/public/default_en.htm

European Ombudsman: 
http://www.ombudsman.europa.eu/home.faces

Council of the European Union: 
http://www.consilium.europa.eu/cms3_fo/showPage.asp?lang=EN

European Council: 
http://www.consilium.europa.eu/cms3_fo/showPage.asp?id=429&lang=EN&mode=g

European Commission: 
http://ec.europa.eu/index_en.htm

Site of the members of the Commission: 
http://ec.europa.eu/commission_barroso/index_en.htm

(1) 
(2) 

 COm(2008) 844.
 Regulation (EC) No 45/2001 (OJ L 8, 12.1.2001).

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LIFE OF ThE INSTITUTIONS, OThER BOdIES ANd AGENCIES

 •

 •

 •

 •

 •

 •

 •

 •

 •

 •

 •

 •

 •

Annual policy strategy: 
http://ec.europa.eu/atwork/programmes/index_en.htm

Court of Justice, Court of First Instance and European Civil Service Tribunal: 
http://curia.europa.eu/en/transitpage.htm

Case-law of the Court of Justice and the Court of First Instance: 
http://ec.europa.eu/dgs/legal_service/arrets/index_en.htm

Court of Auditors: 
http://eca.europa.eu/portal/page/portal/eca_main_pages/home/

European Economic and Social Committee: 
http://eesc.europa.eu/index_en.asp

Committee of the Regions: 
http://cor.europa.eu/

European Central Bank: 
http://www.ecb.eu/home/html/index.en.html

European Investment Bank: 
http://www.eib.org/?lang=en

Agencies: 
http://europa.eu/agencies/community_agencies/index_en.htm

Co-decision site: 
http://ec.europa.eu/codecision/index_en.htm

Register of comitology: 
http://ec.europa.eu/transparency/regcomitology/registre.cfm?CL=en

EUR-Lex database: 
http://www.eur-lex.europa.eu/en/index.htm

European data Protection Supervisor: 
http://www.edps.europa.eu/EdPSwEB/edps/pid/1?lang=en

Chapter VII

Budget and financial activities

Implementation of the 2008 budget

The 2008 budget was adopted by the European Parliament on 13 december 2007.

Ten amending budgets were adopted in the course of the year. A breakdown of the 
appropriations, taking account of the amending budgets, is included in the annexes 
(colour pages) to this Report.

The commitment appropriations amounted to EUR 128.3 billion (99.4 %) and the pay-
ment appropriations to EUR 110.4 billion (97.2 %), corresponding to 1.02 % and 0.88 % 
of the gross national income of the 27 member States.

Preparation of the 2009 budget

The preparation of the budget for the 2009 financial year took the form of:

 •
 •
 •
 •

a preliminary draft approved by the Commission on 6 may (
a draft established by the Council on 17 July;
a first reading by the European Parliament from 20 to 23 October;
a second reading by the Council on 21 November.

1);

(1) 

 SEC(2008) 514.

254 

BUdGET ANd FINANCIAL ACTIVITIES

Budget review

The wide-ranging public consultation conducted following the Commission commu-
nication on the 2008/09 (1) budget review closed on 15 June. Almost 300 contributions 
were received from all sectors of society (public sector/government, private sector, NGOs, 
citizens, universities/scientific and other sectors). This consultation, together with the 
conference on ‘Reforming the budget, changing Europe’, will produce important propos-
als for the preparation of the budget review.

Financial transparency system

On 8 July, in the context of the European transparency initiative (2), the Commission 
adopted a communication on the publication of information on beneficiaries of EU 
funding under Commission centralised management from 2007 onwards (3).

Audit and internal control

On 24 July the Commission adopted its annual report to the discharge authority on 
internal audits carried out in 2007 (4).

General references and other useful links

 •

 •

Review of the budget: 
http://ec.europa.eu/budget/reform/index_en.htm

Financial transparency system: 
http://ec.europa.eu/beneficiaries/fts/index_en.htm

(1) 
(2) 
(3) 
(4) 

 SEC(2007) 1188.
 See ‘Transparency in financial matters’ in Chapter I, Section 1, ‘Transparency’, of this Report.
 SEC(2008) 2242.
 COm(2008) 499.

Institutions and other bodies

European Parliament 

Secretariat
Centre européen, plateau du kirchberg — BP 1601
2929 Luxembourg
LUxEmBOURG
Tel. +352 4300-1

Council of the European Union 

General Secretariat 
Rue de la Loi 175
1048 Brussels
BELGIUm
Tel. +32 22856111

European Commission

Rue de la Loi 200
1049 Brussels
BELGIUm
Tel. +32 22991111

Court of Justice, Court of First Instance and Civil Service Tribunal 

Boulevard konrad Adenauer
2925 Luxembourg
LUxEmBOURG
Tel. +352 4303-1

256 

INSTITUTIONS ANd OThER BOdIES

European Court of Auditors

12, rue Alcide de Gasperi
1615 Luxembourg
LUxEmBOURG
Tel. +352 4398-1

European Economic and Social Committee

Rue Belliard 99
1040 Brussels
BELGIUm
Tel. +32 25469011

Committee of the Regions

Rue Belliard 101
1040 Brussels
BELGIUm
Tel. +32 22822211

European Investment Bank

100, boulevard konrad Adenauer
2950 Luxembourg
LUxEmBOURG
Tel. +352 4379-1

European Central Bank

kaiserstraße 29
60311 Frankfurt am main
GERmANY
Tel. +49 691344-0

European Ombudsman

1, avenue du Président-Robert-Schuman
BP 403 FR
67001 Strasbourg Cedex
FRANCE
Tel. +33 388172313

INSTITUTIONS ANd OThER BOdIES 

257

European Data Protection Supervisor

Rue wiertz 60
1047 Brussels
BELGIUm
Tel. +32 22831900

Decentralised bodies of the  
European Union

http://publications.europa.eu/code/en/en-390500.htm

Decentralised Community agencies (first pillar)

Community Fisheries Control Agency (CFCA)

European Union Agency for Fundamental Rights (FRA)

European Network and Information Security Agency (ENISA)

European Aviation Safety Agency (EASA)

European medicines Agency (EmEA)

European Chemicals Agency (EChA)

European Agency for the management of Operational Cooperation at the External 
Borders (Frontex)

European Agency for Reconstruction (EAR)

European Agency for Safety and health at work (EU-OShA)

European maritime Safety Agency (EmSA)

European Environment Agency (EEA)

European Railway Agency (ERA)

European GNSS Supervisory Authority (GSA)

European Food Safety Authority (EFSA)

Translation Centre for the Bodies of the European Union (CdT)

European Centre for disease Prevention and Control (ECdC)

European Centre for the development of Vocational Training (Cedefop)

260 

dECENTRALISEd BOdIES OF ThE EUROPEAN UNION 

European Joint Undertaking for ITER and the development of Fusion Energy

European Training Foundation (ETF)

European Foundation for the Improvement of Living and working Conditions 
(Eurofound)

European Institute of Innovation and Technology (EIT)

European Institute for Gender Equality

European monitoring Centre for drugs and drug Addiction (EmCddA)

Community Plant Variety Office (CPVO)

Office for harmonization in the Internal market (Trade marks and designs) (OhIm)

Proposed Community agencies (first pillar)

European Agency for the Cooperation of Energy Regulators

European Electronic Communications market Authority (1)

European Union agencies (second and third pillars)

European defence Agency (EdA)

European Union Satellite Centre (EUSC)

European Police College (CEPOL)

Eurojust (the European Union’s Judicial Cooperation Unit)

European Union Institute for Security Studies (EUISS)

European Police Office (Europol)

Executive agencies 

European Research Council Executive Agency

Trans-European Transport Network Executive Agency

Education, Audiovisual and Culture Executive Agency

Executive Agency for Competitiveness and Innovation

(1) 

 This new Authority should also take over the tasks of the European Network and Information Security 
Agency.

dECENTRALISEd BOdIES OF ThE EUROPEAN UNION  

261

Research Executive Agency

Executive Agency for health and Consumers

Joint undertakings

Artemis Joint Undertaking (embedded computing systems)

Clean Sky Joint Undertaking (air transport)

ENIAC Joint Undertaking (nanoelectronics)

FCh Joint Undertaking (fuel cells and hydrogen)

ImI Joint Undertaking (innovative medicines)

SESAR Joint Undertaking (air traffic management)

The European Union in 2008

Member States of the European Union

Candidate countries

Source: Communication dG

264 

ANNExES

Summary of appropriations for commitments  
(by policy area)

Title

Budget 2007 (1)

Budget 2008 (1)

Commitments 
EUR

Human  
resources (2)

Commitments 
EUR

Human  
resources (2) (3)

01 Economic and financial affairs

02 Enterprise

03 Competition

04 Employment and social affairs

05 Agriculture and rural development

06 Energy and transport

07 Environment

08 Research

09 Information society and media

10 Direct research

11 Fisheries and maritime affairs

12 Internal market

13 Regional policy

14 Taxation and customs union 

15 Education and culture

16 Communication

17 Health and consumer protection

18 Area of freedom, security and justice

19 External relations

20 Trade

21 Development and relations with the ACP States

22 Enlargement

23 Humanitarian aid

24 Fight against fraud

25 Commission’s policy coordination and legal advice

26 Commission’s administration

27 Budget

28 Audit

29 Statistics

30 Pensions

31 Language services 

40 Reserves

Total Commission

494 943 213

510 034 683

71 733 008

11 439 308 752

54 509 708 026

1 808 895 383

353 459 123

3 564 666 233

1 434 653 126

348 472 000

955 157 781

56 356 692

34 834 862 423

110 028 293

1 222 658 358

201 020 070

544 689 734

671 490 292

3 574 746 889

71 517 573

1 243 646 218

1 064 558 244

749 664 171

72 517 000

168 735 840

987 459 461

519 495 894

9 186 797

121 365 032

997 490 000

358 927 149

734 527 000

559

1 089

751

824

1 111

1 097

648

2 099

1 202

2 694

349

532

701

513

598

1 001

806

505

2 563

560

2 032

540

219

416

1 475

3 406

578

103

808

3 764

398 480 318

596 514 873

92 657 544

11 482 642 335

54 072 745 793

2 806 851 135

402 144 966

4 050 701 647

1 492 520 976

361 422 000

1 014 377 693

61 151 925

36 647 373 631

124 402 981

1 330 591 776

206 475 322

683 146 306

787 190 253

3 973 459 213

78 057 563

1 316 632 470

1 093 223 712

770 144 179

74 378 000

177 133 064

965 227 079

273 768 624

10 262 284

126 373 375

1 080 502 000

366 345 211

979 218 000

582

1 046

815

849

1 122

1 154

699

2 101

1 184

2 691

371

564

743

541

604

1 022

871

571

3 755

600

2 279

910

259

424

1 517

3 463

634

109

812

3 804

123 805 974 458

33 543

127 896 116 248

36 096

Other institutions (excluding pensions)

Total

2 577 189 876

126 383 164 334

2 673 523 137

130 569 639 385

Source: Budget dG

(1)   Including amending budgets.
(2)   Covers both regular and support staff.
(3)  2008 preliminary draft budget.

 
ANNExES 

265

Figures by financial perspective headings,  
in commitment appropriations (aggregate)

Appropriations for commitments

Budget 2007 (1)

Financial  
framework 2008

Budget 2008 (1)

EUR

EUR

EUR

1. SUSTAINABLE GROWTH

54 854 332 015

57 275 000 000

58 337 948 720

Margin

Competitiveness for growth and employment

Cohesion for growth and employment

9 367 547 511

45 486 784 504

10 386 000 000

46 889 000 000

11 082 000 000

47 255 948 720

2. PRESERVATION AND MANAGEMENT OF NATURAL RESOURCES

55 850 230 036

58 800 000 000

55 559 715 538

of which: market-related expenditure and direct payments

3. CITIZENSHIP, FREEDOM, SECURITY AND JUSTICE

— Freedom, security and justice

— Citizenship

4. THE EUROPEAN UNION AS A GLOBAL PARTNER

5. ADMINISTRATION

6. COMPENSATION

Appropriations for commitments — Total

Compulsory expenditure

Non-compulsory expenditure

Appropriations for payments — Total 

Compulsory expenditure

Non-compulsory expenditure

Margin

Margin

Margin

Margin

Margin

Margin

Margin

Margin

Margin

42 311 661 000

46 217 000 000

41 006 490 000

1 442 632 099

1 362 000 000

1 634 913 642

623 833 000

747 000 000

731 774 000

818 799 099

615 000 000

903 139 642

6 812 460 000

7 002 000 000

7 551 218 000

6 978 864 032

7 380 000 000

7 279 207 193

444 646 152

207 000 000

206 636 292

126 383 164 334

132 026 000 000

130 569 639 385

44 234 401 352

82 148 762 982

42 509 175 666

88 060 463 719

113 845 815 415

129 681 000 000

115 771 282 245

44 124 503 852

69 721 311 563

42 430 668 666

73 340 613 579

Appropriations for payments as percentage of GNI

0.95 %

1.03 %

0.92 %

Source: Budget dG

(1)   Including amending budgets.

266 

ANNExES

Breakdown by type of revenue

Budget 2007

Budget 2008

Agricultural duties 
and sugar levies

Customs duties

VAT-based resource

GNI-based resource 
 (‘fourth resource’)

Miscellaneous plus surplus 
 from the previous year

million EUR

Type of revenue

Budget 2007

Budget 2008

Agricultural and sugar levies

Customs duties

VAT-based resource

GNI-based resource (‘fourth resource’)

Miscellaneous plus surplus from the previous year

million EUR

1 449.10

15 083.80

18 517.23

71 153.08

7 642.61

%

1.3

13.2

16.3

62.5

6.7

million EUR

1 990.60

14 945.70

18 096.76

73 290.31

7 447.91

%

1.7

12.9

15.6

63.3

6.4

Total

113 845.82

100.0

115 771.28

100.0

Source: Budget dG

European Commission

General Report on the Activities of the European Union — 2008

Luxembourg: Office for Official Publications of the European Communities

2009 — 266 pp. — 16.2 x 22.9 cm

ISBN 978-92-79-10131-1 
doi: 10.2792/16582

Price (excluding VAT) in Luxembourg: EUR 25

The General Report on the Activities of the European Union is published annually by  
the  Commission as required by Article 212 of the EC Treaty and Article 125 of the EAEC 
Treaty.

The Report is presented to the European Parliament and provides a general picture of 
Community activities over the past year.