Proposal for a COUNCIL DECISION on the fulfilment by the Republic of Croatia of the conditions for completing the first transitional period under the Multilateral Agreement between the European Community and its Member States, the Republic of Albania, Bosnia and Herzegovina, the Republic of Bulgaria, the Republic of Croatia, the Former Yugoslav Republic of Macedonia, the Republic of Iceland, the Republic of Montenegro, the Kingdom of Norway, Romania, the Republic of Serbia and the United Nations Interim Administration Mission in Kosovo on the establishment of a European Common Aviation Area
Date: 2010-11-09
Institutions: European Commission
Subjects: air space, air transport, international agreement, ratification of an agreement, signature of an agreement

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EUROPEAN COMMISSION 

Brussels, 9.11.2010 
COM(2010) 653 final 

2010/0320 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the fulfilment by the Republic of Croatia of the conditions for completing the first 
transitional period under the Multilateral Agreement between the European 
Community and its Member States, the Republic of Albania, Bosnia and Herzegovina, 
the Republic of Bulgaria, the Republic of Croatia, the Former Yugoslav Republic of 
Macedonia, the Republic of Iceland, the Republic of Montenegro, the Kingdom of 
Norway, Romania, the Republic of Serbia and the United Nations Interim 
Administration Mission in Kosovo1 on the establishment of a European Common 
Aviation Area 

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Pursuant to UN Security Council Resolution 1244 of 10 June 1999 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

In  2006,  the  Council  adopted  the  European  Common  Aviation  Area  (ECAA)  Multilateral 
Agreement  between  the  European  Community  and  eight  Associated  Parties  making  up  the 
Western  Balkan  region,  namely  Albania,  Bosnia  and  Herzegovina,  Bulgaria,  Croatia,  the 
Former Yugoslav Republic of Macedonia, Romania, Serbia and Montenegro and the United 
in  Kosovo2  (the  "Agreement")  (Decision 
Nations  Interim  Administration  Mission 
2006/682/EC of the Council; OJ L 285 of 16.10.2006, p1).  

The objective of the Agreement is to integrate the EU's neighbours into the European Union's 
existing  internal  aviation  market  involving  all  27  Member  States  of  the  EU,  Norway  and 
Iceland.  The  eight  South-East  European  Associated  Parties  agreed  to  the  full  application  of 
the  European  Union's  aviation  law  ("the  European  Union  acquis").  Once  the  acquis  is  fully 
implemented, ECAA airlines will have open access to the enlarged European Single Market 
in aviation.  

The  Agreement  grants  airlines  from  all  parties  access  to  direct  services  between  their  own 
territory  and  those  of  the  other  Parties.  Further  rights  are  associated  with  completion  of  the 
individual  associated  party's  specific  transitional  arrangements  as  set  out  in  the  agreement, 
which differ between the parties. 

In  the  case  of  Croatia,  completion  of  the  first  transitional  phase  requires  implementation  of 
elements  of  the  core  European  aviation  acquis,  as  well  as,  inter  alia,  ratification  of  the 
Montreal  convention  and  the  establishment  of  an  independent  air  traffic  management 
regulatory  body.  Confirmation  of  these  steps  triggers  enhanced  commercial  rights  for 
European  and  Croatian  airlines,  notably  onward  ("fifth  freedom")  services  within  certain 
territories covered by the Agreement. 

Article 27(3) of the Agreement provides that the gradual transition of each Associated Party 
to the Agreement shall be subject to assessments by the European Union.  

In  November  2009,  assisted  by  Taiex,  a  delegation  of  experts  from  Member  States  and  the 
European  Commission  visited  Zagreb  to  undertake  an  extensive  assessment  of  the  state  of 
Croatia's implementation of the European Union's aviation acquis. The assessment confirmed 
that  the  Republic  of  Croatia  had  fulfilled  the  conditions  for  completing  the  first  transitional 
period  as  set  out  in  Protocol  IV  of  the  Agreement.  The  positive  conclusions  from  that 
assessment have been shared with Member States and the Croatian Government and will be 
presented  at  the  meeting  of  the  ECAA  Joint  Committee  scheduled  to  be  held  in  December 
2010.  

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Pursuant to UN Security Council Resolution 1244 of 10 June 1999 

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•  General context 

The  ECAA  Agreement  is  expressly  designed  as  an  open  framework  accessible  to  European 
Countries which wish to fully integrate into the European single aviation market. 

The benefits of the Agreement are significant, as it: 

–  Creates new market opportunities to reach the combined population of the Balkan region 
of  the  order  of  52  million  people,  creating  a  single  market  for  aviation  consisting  of  35 
countries  and  more  than  500  million  people.  Air  traffic  between  the  EU  and  South-East 
Europe  has  seen  significant  growth  recently,  121%  growth  since  2001,  and  this  trend 
would be accelerated through full integration in a common air transport market; 

–  Generates new opportunities for industry and consumers, especially as tourism is a major 
growth area in the coastal regions. Forecasts for aircraft movements in the region predict 
an average annual growth rate of more than 6% per annum between 2005 and 2011. There 
are potentially 414 airports in the region to operate to; therefore there is an opportunity for 
further  growth  to  be  attained.  As  a  result,  affordable  air  travel  will  be  increasingly 
accessible to a greater number of people. In addition, the agreement will facilitate capital 
flow from both sides as a result of easing ownership and control rules present in bilateral 
agreements ; 

–  Commits  all  eight  ECAA  partners  to  continue  harmonising  legislation  with  EU  laws, 
which should result in equal high standards in term of safety and security as well as fair 
competition across Europe; 

–  Removes the remaining market access restrictions on flights between the EU and Balkans, 

creating a level playing field between EU carriers; 

–  Removes  existing  blockages  in  air  traffic  management  system,  left  over  from  the  war 

period, which resulted in closure of airspace; 

–  Commits  the  region  to  work  together  and  to  improve  inter-regional  relationships,  to  the 

benefit of further European integration; and 

–  Establishes a Joint Committee which will be responsible for resolving questions relating to 

the interpretation or application of this Agreement; 

Independent confirmation of Croatia's progress in implementing the acquis is good news in all 
these respects and bodes well for other Associated Parties as they transition to full accession 
to the European single aviation market.  

•  Existing provisions in force in the area of the proposal 

Multilateral  Agreement  between  the  European  Community  and  its  Member  States,  Albania, 
Bosnia  and  Herzegovina,  Bulgaria,  Croatia,  the  Former  Yugoslav  Republic  of  Macedonia, 
the  United  Nations  Interim 
Iceland,  Montenegro,  Norway,  Romania,  Serbia  and 
Administration  Mission  in  Kosovo  on  the  establishment  of  a  European  Common  Aviation 
Area (OJ L 285 of 16.10.2006, p3). 

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•  Consistency with the other policies and objectives of the Union  

This proposal is coherent with the European Union's air transport policy for developing the 
agenda for the Community’s external aviation policy (COM (2005) 79 final), most notably 
with regard to its neighborhood policy. 

2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Consultation is not necessary as part of the implementation of the existing ECAA Agreement, 
but all Member States and Associated Parties to the Agreement are involved on an on-going 
basis.  

•  Collection and use of expertise  

Principal organisations/experts consulted 

As part of the monitoring of the Republic of Croatia's progress towards implementation of the 
Aviation  acquis,  a  thorough  assessment  visit  was  undertaken  in  November  2009,  which 
confirmed  that  country's  fulfillment  of  the  conditions  necessary  for  completion  of  the  first 
transitional  period.  The  delegation  visit  involved  Member  State  experts  in  the  fields  of 
economic  regulation,  safety,  security,  and  air  traffic  management  (ATM),  as  well  as 
Commission staff from DG MOVE and Taiex. 

•  Impact assessment 

An impact assessment is not applicable. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

The proposal will fulfill the obligations arising from the adoption of the ECAA Agreement by 
the European Union and its Member States. 

•  Legal basis 

Article  27(4)  and  Protocol  IV  of  the  Multilateral  Agreement  between  the  European 
Community and its Member States, Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the 
Former  Yugoslav  Republic  of  Macedonia,  Iceland,  Montenegro,  Norway,  Romania,  Serbia 
and the United Nations Interim Administration Mission in Kosovo on the establishment of a 
European Common Aviation Area.  

•  Subsidiarity principle 

The  principle  of  subsidiarity  applies  insofar  as  the  proposal  does  not  affect  a  field  falling 
within the exclusive competence of the Union. 

The  objectives  of  the  proposal  cannot  be  achieved  adequately  by  the  action  of  the  Member 
States for the following reasons. 

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The  Multilateral  ECAA  Agreement  has  been  concluded  at  Union  level  and  any  decision  on 
the functioning of that Agreement can only be done at Union level.  

The proposal is therefore in conformity with the principle of subsidiarity. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s): 

-  The  proposal  will  help  encourage  further  legal  convergence  between  the  European  Union 
and the Republic of Croatia in the area of air service provision, and facilitate safe, efficient air 
travel. 

-  Member  States  and  the  Republic  of  Croatia  will  continue  to  undertake  the  traditional 
administrative  tasks  in  the  context  of  international  air  transport,  but  under  common  rules 
applied uniformly. 

•  Choice of the instruments 

Proposed instrument: Council Decision. 

Other means would not be adequate for the following reasons: 

Article 27(4) and Protocol IV of the Multilateral Agreement foresees such a decision by the 
Council upon confirmation that the Republic of Croatia has met the conditions for completing 
the first transitional period. 

4. 

BUDGETARY IMPLICATION 

The proposal has no implications for the Union budget. 

5. 

ADDITIONAL INFORMATION 

•  Members of the EEA. 

As  co-signatories  to  the  Multilateral  Agreement,  this  decision  has  implications  for  EEA 
Members, Norway and Iceland. 

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2010/0320 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the fulfilment by the Republic of Croatia of the conditions for completing the first 
transitional period under the Multilateral Agreement between the European 
Community and its Member States, the Republic of Albania, Bosnia and Herzegovina, 
the Republic of Bulgaria, the Republic of Croatia, the Former Yugoslav Republic of 
Macedonia, the Republic of Iceland, the Republic of Montenegro, the Kingdom of 
Norway, Romania, the Republic of Serbia and the United Nations Interim 
Administration Mission in Kosovo3 on the establishment of a European Common 
Aviation Area 

(Text with EEA relevance) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Multilateral  Agreement  between  the  European  Community  and  its 
Member States, the Republic of Albania, Bosnia and Herzegovina, the Republic of Bulgaria, 
the  Republic  of  Croatia,  the  Former  Yugoslav  Republic  of  Macedonia,  the  Republic  of 
Iceland,  the  Republic  of  Montenegro,  the  Kingdom  of  Norway,  Romania,  the  Republic  of 
Serbia  and  the  United  Nations  Interim  Administration  Mission  in  Kosovo4  on  the 
establishment  of  a  European  Common  Aviation  Area  ("the  Agreement"),  and  in  particular 
Article 27 (4) thereof, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

Article  27(1)  of  the  Agreement  provides  for  transitional  arrangements  between  the 
Parties. 

Protocol  IV  to  the  Agreement  lays  down  transitional  arrangements  between  the 
European Union and its Member States, on one hand, and the Republic of Croatia, on 
the other hand. 

Article 27(3) of the Agreement provides that the gradual transition of each Associated 
Party to the full application of the ECAA Agreement shall be subject to assessments 
by the European Union. 

Assessments  organised  by  the  European  Commission  have  confirmed  that  the 
Republic  of  Croatia  has  fulfilled  the  conditions  for  completing  the  first  transitional 
period as set out in Protocol IV to the Agreement. 

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Pursuant to UN Security Council Resolution 1244 of 10 June 1999 
Pursuant to UN Security Council Resolution 1244 of 10 June 1999 

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(5) 

Article  27(4)  provides  that  if  the  European  Union  determines  that  the  conditions  for 
completing a transitional period by an Associated Party are fulfilled it shall decide that 
the Associated Party concerned qualifies for passing to the next transitional period or 
for full inclusion in the European Common Aviation Area as the case may be. 

(6) 

The  Council  is  satisfied  that  the  Republic  of  Croatia  has  fulfilled  the  conditions  for 
completing the first transitional period as set out in Protocol IV to the Agreement, 

HAS DECIDED AS FOLLOWS: 

Sole Article 

The Republic of Croatia qualifies for passing to the second transitional period under Protocol 
IV to the Multilateral Agreement between the European Community and its Member States, 
the Republic of Albania, Bosnia and Herzegovina, the Republic of Bulgaria, the Republic of 
Croatia, the Former Yugoslav Republic of Macedonia, the Republic of Iceland, the Republic 
of  Montenegro,  the  Kingdom  of  Norway,  Romania,  the  Republic  of  Serbia  and  the  United 
Nations  Interim  Administration  Mission  in  Kosovo5  on  the  establishment  of  a  European 
Common Aviation Area. 

Done at Brussels, […] 

For the Council 

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Pursuant to UN Security Council Resolution 1244 of 10 June 1999 

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